Company: BIAF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010787
Chunk: 44

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 44
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 consolidated balance sheet as of December 31,
2024, was derived from the audited consolidated financial statements at that date but does not include all the information and footnotes
required by GAAP. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the
fiscal year ending December 31, 2025, or any future period. These unaudited condensed consolidated financial statements should be read
in conjunction with the audited annual consolidated financial statements and notes included in the Annual Report on Form 10-K for the
year ended December 31, 2024, filed with the SEC on March 31, 2025 (the “2024 Form 10-K”).

Liquidity 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 condensed 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 approximately $56.3
million at March 31, 2025. The Company’s cash and cash equivalents at March 31, 2025, were approximately $0.4
million. Based on the Company’s current expected level of operating expenditures and the cash and cash equivalents on hand at
March 31, 2025, 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 unaudited condensed consolidated
financial statements. On May 7, 2025, the Company completed a public offering of its common stock pursuant to which the Company
raised an additional $3.25
million in cash in gross proceeds, see Note 15. Subsequent Events. However, the Company will 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