Company: BIAF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024163
Chunk: 17

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 17
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 pathology services to focus
    on CyPath® Lung and other high-margin services.

    12

Research
and Development

Research
and development costs are charged to expense as incurred. The Company’s research and development expenses consist primarily of
expenditures for laboratory operations, preclinical studies, compensation, and consulting costs.

Accrued
Research and Development Costs

The
Company records accrued liabilities for estimated costs of research and development activities conducted by service providers, which
include preclinical studies. The Company records the estimated costs of research and development activities based upon the estimated
amount of services provided but not yet invoiced and includes these costs in accrued expenses in the accompanying condensed consolidated
balance sheets and within research and development expense in the accompanying condensed consolidated statements of operations.

The
Company accrues for these costs based on factors such as estimates of the work completed and in accordance with agreements established
with service providers. The Company makes significant judgments and estimates in determining the accrued expenses balance in each reporting
period. As actual costs become known, the Company adjusts its accrued liabilities. The Company has not experienced any material differences
between accrued costs and actual costs incurred since its inception.

Regulatory
Matters

Regulations
imposed by federal, state, and local authorities in the U.S. are a significant factor in providing medical care. In the U.S., drugs,
biological products, and medical devices are regulated by the Federal Food, Drug, and Cosmetic Act (“FDCA”), which is administered
by the Food and Drug Administration (“FDA”) and the Centers for Medicare & Medicaid Services (“CMS”). The
Company has not yet obtained marketing authorization from the FDA but is able to market its CyPath® Lung test as a laboratory
developed test (“LDT”) sold by our wholly owned subsidiary PPLS, a clinical pathology laboratory accredited by the College
of American Pathologists (“CAP”) and certified under the Clinical Laboratory Improvement Amendments (“CLIA”).

Note
3. ACCOUNTS AND OTHER RECEIVABLES, NET

The
following is a summary of accounts receivables and other receivables:

SCHEDULE OF ACCOUNTS AND OTHER RECEIVABLES

    June 30, 2025  
    December 31, 2024 
  
    Patient service fees 
    $237,586  
    $915,488 
  
    Histology service fees 
     148,871  
     190,648 
  
    Medical director fees 
     15,896