Company: BIAF
Filing Date: 2025-04-11
Form Type: S-1
Source: 0001641172-25-003892
Chunk: 106

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-04-11
Form: S-1
Chunk 106
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 of future taxable income and the reversal of
deferred tax liabilities during the period in which the related temporary difference becomes deductible.

Assessment of Goodwill and Intangible Assets

Our indefinite-lived assets include Goodwill and Intangible
Assets resulting from the acquisition of PPLS. Goodwill represents the purchase price in excess of fair values assigned to the underlying
identifiable net assets of the acquired business. Goodwill and Intangible Assets are reviewed annually for impairment unless circumstances
dictate the need for more frequent assessment.

In performing impairment tests for our Goodwill in
2024, in accordance with ASC 350 - Intangibles – Goodwill and Other, we opted to complete a quantitative assessment at the
PPLS level as opposed to relying on a qualitative assessment as permitted in the guidance. This quantitative assessment required that
the estimated fair value of PPLS’ net assets, including Goodwill, be calculated and compared to the carrying amount. If that estimated
fair value is in excess of the carrying amount, no impairment is recognized. We performed this assessment as of December 31, 2024. We
estimated the fair value of the net assets tested using a discounted cash flow model. The income-based approach required significant judgment
to estimate future cash flows, including revenue growth inclusive of long-term growth rate assumptions and the discount rate. Significant
changes in our estimates and assumptions could affect our fair value calculations. Our estimate of fair value exceeded the carrying amount
and therefore resulted in no impairment.

Going Concern

Our evaluation of our ability to continue as a going
concern requires us to evaluate our future sources and uses of cash sufficient to fund our currently expected operations in conducting
research and development activities one year from the date our consolidated financial statements are issued. We evaluate the probability
associated with each source and use of cash resources in making our going concern determination. The research and development of our diagnostic
tests and therapeutic products are inherently subject to uncertainty.

Off-Balance Sheet Arrangements

We do not engage in transactions that generate relationships
with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities,
as a part of our ongoing business. Accordingly, we did not have any off-balance sheet arrangements during any of the periods presented.

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<div align='center'>BUSINESS</div>

Business Overview

We develop proprietary noninvasive diagnostics to
detect early-stage lung cancer and other diseases of the lung using flow cytometry and automated analysis developed by machine