Company: BIAF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010787
Chunk: 45

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 45
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 curtailed. Furthermore, an alternative
source of funding to the sale of additional equity or debt securities is the exercise of outstanding warrants for which there can be
no guarantee. No adjustments have been made to the presented condensed consolidated financial statements as a result of this
uncertainty.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity
with GAAP in the U.S. requires management to make significant judgments and estimates that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Management bases these significant judgments and estimates on historical experience and other assumptions
it believes to be reasonable based upon information presently available. Actual results could differ from those estimates under different
assumptions, judgments, or conditions.

Principles of Consolidation

The Company’s consolidated financial statements
reflect its financial statements, those of its wholly owned subsidiaries, and certain variable interest entities where the Company is
the primary beneficiary. The accompanying consolidated financial statements include all the accounts of the Company, its wholly owned
subsidiaries, OncoSelect® Therapeutics, LLC and PPLS, and the variable interest entity, Village Oaks. All significant intercompany
balances and transactions have been eliminated.

    9

In determining whether the Company is the primary
beneficiary of a variable interest entity, it applies a qualitative approach that determines whether it has both (1) the power to direct
the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from,
the entity that could potentially be significant to that entity. The Company continuously assesses whether it is the primary beneficiary
of a variable interest entity as changes to existing relationships or future transactions may result in the Company consolidating or deconsolidating
one or more of its collaborators or partners.

Cash and Cash Equivalents

For the purpose of the statement of cash flows, the
Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents.
Cash equivalents are stated at cost, which approximates market value, because of the short maturity of these instruments.

Concentration of Risk

The Company has significant cash balances at financial
institutions which throughout the year regularly exceed the federally insured limit of $250,000. Any loss incurred or a lack of access
to such funds