Company: BIAF
Filing Date: 2025-06-27
Form Type: POS AM
Source: 0001641172-25-016927
Chunk: 185

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-06-27
Form: POS AM
Chunk 185
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 |     | $               | (2,660,417 | ) |     | $    | (1,961,815 | ) |

| F-9 |

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 CMS. The Company has not yet obtained marketing authorization from the FDA but is able to market its CyPathLung test as a laboratory developed test (“LDT”) sold by Precision Pathology Laboratory Services, a CAP-accredited,
CLIA-certified clinical pathology laboratory and wholly owned subsidiary.

Note 3. ACCOUNTS AND OTHER RECEIVABLES, NET

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

SCHEDULE OF ACCOUNTS AND OTHER RECEIVABLES

|                                           |     |   | March 31, 2025 |     |   | December 31, 2024 |
|:------------------------------------------|:----|:--|---------------:|:----|:--|------------------:|
| Patient service fees                      |     | $ |        744,859 |     | $ |           915,488 |
| Histology service fees                    |     |   |