Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 276

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 276
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and Capital Resources

In
accordance with Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements – Going Concern
(Subtopic 205-40), the Company has evaluated whether there are conditions and events that raise substantial doubt about the Company’s
ability to continue as a going concern for at least one year after the date the consolidated financial statements are issued.

The
Company has incurred significant losses and negative cash flows from operations since inception and expects to continue to incur losses
and negative cash flows for the foreseeable future. As a result, the Company had an accumulated deficit of $53.6 million at December
31, 2024. The Company’s cash and cash equivalents at December 31, 2024, were approximately $1.1 million. Based on the Company’s
current expected level of operating expenditures and the cash and cash equivalents on hand at December 31, 2024, management concludes
that there is substantial doubt about the Company’s ability to continue as a going concern for a period of at least twelve (12)
months subsequent to the issuance of the accompanying consolidated financial statements. Without funding from the proceeds of a capital raise or strategic relationship
or grant, management anticipates that the Company’s cash resources are sufficient to continue operations through April 2025. The Company may need to raise further
capital through the sale of additional equity or debt securities or other debt instruments, strategic relationships or grants, or other
arrangements to support its future operations, if revenue from operations does not significantly increase. If such funding is not available
or not available on terms acceptable to the Company, the Company’s current development plan may be curtailed. Furthermore, an alternative
source of funding to the sale of additional equity or debt securities is the exercise of outstanding warrants for which there can be
no guarantee. No adjustments have been made to the presented consolidated financial statements as a result of this uncertainty.

Note
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use
of Estimates

The preparation of financial statements in conformity with GAAP in the U.S. requires management to make significant
judgments and estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases
these significant judgments and estimates on historical experience and other assumptions it believes to be reasonable based upon information
presently available. Actual results could differ from those estimates under different