Company: BIAF
Filing Date: 2025-09-25
Form Type: S-1/A
Source: 0001493152-25-014878
Chunk: 34

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-09-25
Form: S-1/A
Chunk 34
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 purposes, the acquisition by a U.S. Holder hereunder will be treated as the acquisition of one share of Common Stock. The purchase price for each share of Common Stock will establish a U.S. Holder’s initial tax basis for U.S. federal income tax purposes in the share of Common Stock purchased pursuant to this prospectus.

For this purpose, we will allocate $5.48 of the purchase price for the share of Common Stock

For U.S. federal income tax purposes, the acquisition by a U.S. Holder of a Pre-Funded Warrant will be treated as the acquisition of one Pre-Funded Warrant. The purchase price for each Pre-Funded Warrant will establish a U.S. Holder’s initial tax basis for U.S. federal income tax purposes in the Pre-Funded Warrant.

For this purpose, we will allocate $5.473 of the purchase price for the Pre-Funded Warrant. However, the IRS will not be bound by such allocation of the purchase price for the Pre-Funded Warrant, and therefore, the IRS or a U.S. court may not respect the allocation set forth above. Each U.S. Holder should consult its own tax advisor regarding the allocation of the purchase price for the Pre-Funded Warrants.

Treatment of Pre-Funded Warrants

Although it is not entirely free from doubt, we believe that a Pre-Funded Warrant should be treated as a separate class of our Common Shares for U.S. federal income tax purposes and a U.S. Holder of Pre-Funded Warrants should generally be taxed in the same manner as a holder of Common Stock except as described below. Accordingly, no gain or loss should be recognized upon the exercise of a Pre-Funded Warrant and, upon exercise, the holding period of a Pre-Funded Warrant should carry over to the Common Stock received. Similarly, the tax basis of the Pre-Funded Warrant should carry over to the Common Stock received upon exercise, increased by the exercise price of $0.007 per share. However, such characterization is not binding on the IRS, and the IRS may treat the Pre-Funded Warrants as warrants to acquire Common Shares. If so, the amount and character of a U.S. Holder’s gain with respect to an investment in Pre-Funded Warrants could change, and a U.S. Holder may not be entitled to make the “QEF Election” or “Mark-to-Market Election” described below with respect to the Pre-Funded Warrants to mitigate PFIC consequences in the