Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 65

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 65
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 the Middle East and other political tensions,
and foreign governmental debt concerns. Such challenges have caused, and may continue to cause, uncertainty and instability in local
economies and in global financial markets.

We
are actively monitoring the effects these disruptions and increasing inflation could have on our operations. These conditions make it
extremely difficult for us to accurately forecast and plan future business activities.

Global
climate change and related regulations could negatively affect our business.

The
effects of climate change, such as extreme weather conditions, create financial risks to our business. For example, the demand for our
products may be affected by unseasonable weather conditions. The effects of climate change could also disrupt our operations by impacting
the availability and cost of materials needed for manufacturing and could increase insurance and other operating costs. We could also
face indirect financial risks passed through the supply chain and disruptions that could result in increased prices for our products
and the resources needed to produce them.

Risks
Related to the Operation of a CAP/CLIA Laboratory

The
operations of PPLS will depend in part upon prior relationships with existing customers and our ability to continue such relationships
with these customers.

PPLS’ future success will depend in part upon the continued relationships
with existing customers, many of whom have developed professional relationships with pathologists who have established relationships with
our customers. In particular, Roby Joyce, M.D. who is the Medical Director of PPLS and a member of our Board of Directors, has a long-term
relationship with certain PPLS clients. We cannot be assured that we will be able to retain his services. Although we have entered into
a three-year employment agreement with him, there can be no assurance that the agreement will not be terminated prior to its expiration.
We do not have an insurance policy on the life of Dr. Joyce, and we do not have “key person” life insurance policies for any
of our other officers or advisors. The loss of employees who have established business relationships with our clients could result in
delays in services, loss of customers and sales, and diversion of management resources, which could adversely affect our operating results.

PPLS
may be unable to effectively maintain equipment or generate revenue when its equipment is not operational.

Timely,
effective service is essential to maintaining the reputation and high use rates of our CAP/CLIA laboratory, PPLS. Although it has agreements
with a third-party equipment service providers pursuant to which such service providers maintain and repair its equipment, the