Company: BIAF
Filing Date: 2025-04-11
Form Type: S-1
Source: 0001641172-25-003892
Chunk: 44

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-04-11
Form: S-1
Chunk 44
---
 by natural or man-made disasters, including fire, earthquake, flooding, and power outages, which may render it
difficult or impossible for it to provide pathology services or perform our diagnostic assays for some period of time. The inability to
of PPLS to perform its services for customers if PPLS’ facility is inoperable for even a short period of time may result in the
loss of customers or harm to its reputation or relationships with its customers, and it may be unable to regain those customers or repair
its reputation in the future. Furthermore, PPLS’ facilities and the equipment it uses to perform its services could be costly and
time-consuming to repair or replace.

| 19 |

Further, if PPLS’ current or future CLIA-certified,
CAP-accredited, and state-licensed laboratory becomes inoperable or unqualified in any way, it may not be able to license or transfer
its technology to another facility with the necessary qualifications, including state licensure and CLIA certification, under the scope
of which its current assays and its planned future assays could be performed. Even if PPLS finds a facility with such qualifications to
perform its assays, it may not be available to PPLS on commercially reasonable terms.

To date, substantially all of our revenue has been
derived from the operations of the laboratory. The inability of PPLS to perform its services for its customers if PPLS’ facility
is inoperable would significantly impact our ability to generate revenue.

PPLS relies on commercial courier delivery services to transport sputum samples for processing the CyPath ®Lung test in a timely and cost-efficient manner, and if these delivery services are disrupted, its business will be harmed.

PPLS’ business depends on its ability to quickly
and reliably deliver test results to its customers. Sputum samples are received overnight within the U.S. for analysis at the laboratory
facility located in San Antonio, Texas. Disruptions in delivery service, whether due to bad weather, natural disaster, terrorist acts
or threats, or for other reasons could adversely affect specimen integrity and its ability to process samples in a timely manner and to
service its customers, and ultimately its reputation and its business. In addition, if PPLS is unable to continue to obtain expedited
delivery services on commercially reasonable terms, its operating results may be adversely affected.

Security breaches, loss of data, and other disruptions could compromise sensitive information related to PPLS’ business or prevent