Company: BIAF
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023405
Chunk: 101

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 101
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 Company
fails to comply with the Minimum Stockholders’ Equity Rule, the Company will not be permitted additional time to regain compliance.
However, the Company will have an opportunity to request a new hearing with the Nasdaq Hearings Panel prior to the Company’s securities
being delisted from Nasdaq.

30

There
is no assurance that we will maintain compliance with the minimum listing requirements with all applicable requirements for continued
listing on Nasdaq. If our securities were delisted from Nasdaq, trading of our securities would most likely take place on an over-the-counter
market established for unlisted securities, such as the OTCQB or the Pink Market maintained by OTC Markets Group Inc. An investor would
likely find it less convenient to sell, or to obtain accurate quotations in seeking to buy, our securities on an over-the-counter market,
and many investors would likely not buy or sell our securities due to difficulty in accessing over-the-counter markets, policies preventing
them from trading in securities not listed on a national exchange or other reasons. In addition, as a delisted security, our securities
would be subject to SEC rules as a “penny stock,” which impose additional disclosure requirements on broker-dealers. The
regulations relating to penny stocks, coupled with the typically higher cost per trade to the investor of penny stocks due to factors
such as broker commissions generally representing a higher percentage of the price of a penny stock than of a higher-priced stock, would
further limit the ability of investors to trade in our common stock. In addition, delisting could harm our ability to raise capital through
alternative financing sources on terms acceptable to us, or at all, and may result in the potential loss of confidence by investors,
suppliers, customers and employees and fewer business development opportunities.

The
National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the
sale of certain securities, which are referred to as “covered securities.” Because our Common Stock is listed on The Nasdaq
Capital Market, it is a covered security. Although the states are preempted from regulating the sale of covered securities, the federal
statute does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity,
then the states can regulate or bar the sale of covered securities in a particular case. Further, if we were to be delisted from The
Nasdaq Capital Market, our Common Stock would cease to be recognized