Company: BIAF
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023405
Chunk: 50

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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rate by class of underlying assets when the rate is not implicit in the lease.

Stock-Based
Compensation

We
follow ASC 718, Compensation – Stock Compensation, which requires the measurement and recognition of compensation expense
for all share-based payment awards made to employees, directors, and non-employees based on estimated fair values. We have used the Black-Scholes
option pricing model to estimate grant date fair value for all option grants. The assumptions we use in calculating the fair value of
share-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application
of management judgment. Since we use different assumptions based on a change in factors, our stock-based compensation expense could be
materially different in the future.

Accounting
for Income Taxes

We
are governed by U.S. income tax laws, which are administered by the Internal Revenue Service. We follow ASC 740, Accounting for Income
Taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred tax assets
and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts
of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. A valuation allowance is provided when it is more likely than not that some portion or all of
a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future
taxable income and the reversal of deferred tax liabilities during the period in which the related temporary difference becomes deductible.

26

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 and 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