Company: BIAF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024163
Chunk: 43

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 43
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 is using recent
timely collection data to estimate revenue on historical collections. Therefore, the Company recognizes a decrease in revenue compared
to the prior year with an increase in tests.

Operating
Expenses

    Three Months Ended  
    Change in 2025 

    June 30,  
    Versus 2024 

    2025  
    2024  
    $  
    % 
  
    Operating expenses: 

    Direct costs and expenses 
    $1,016,602  
    $1,407,710  
    $(391,108) 
     (28)%
  
    Research and development 
     311,372  
     402,433  
     (91,061) 
     (23)%
  
    Clinical development 
     129,279  
     51,462  
     77,817  
     151%
  
    Selling, general and administrative 
     2,214,561  
     2,472,775  
     (258,214) 
     (10)%
  
    Depreciation and amortization 
     113,229  
     151,070  
     (37,841) 
     (25)%
  
    Total operating expenses 
    $3,785,043  
    $4,485,450  
    $(700,407) 
     (16)%

Operating
expenses totaled approximately $3.8 million and $4.5 million during the three months ended June 30, 2025 and 2024, respectively. The
decrease in operating expenses is the result of the following factors:

Direct
costs and expenses

Our
direct costs and expenses are primarily direct labor for pathology services, laboratory supplies and reagents, laboratory equipment,
and allocated shared facilities. Direct costs and expenses totaled $1.0 million and $1.4 million during the three months ended June 30,
2025 and 2024, respectively. The decrease of approximately $0.3 million for 2025 compared to 2024 was primarily attributable to the targeted
strategic actions which occurred in March 2025, aimed at streamlining operations and reducing costs related to our lab operations.

23

Research
and Development Expenses

Our
research and development expenses consist primarily of expenditures for lab operations, preclinical studies, compensation, and consulting
cost