Company: BIAF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024163
Chunk: 20

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 20
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 were liability classified
as a result of certain terms in the May 2025 warrant agreement and is reflected as a liability in the condensed consolidated balance
sheets. The Company uses a Black Scholes model to estimate the fair value of the warrants. Changes in the fair value of the warrants
are recognized in “Change in fair value of warrants issued” for each reporting period in the condensed consolidated income
statement. Refer to Note 14 for additional details of the warrants.

The
following tables present liabilities measured and recorded at fair value on the Company’s consolidated balance sheet as of June
30, 2025, the Company notes there were no liabilities as of December 31, 2024.

SCHEDULE
OF LIABILITIES MEASURED AND RECORDED FAIR VALUE

    Total  
    Level 1  
    Level 2  
    Level 3 

    June 30, 2025 

    Total  
    Level 1  
    Level 2  
    Level 3 
  
    Liability classified warrants 
    $3,974,911  
    $—  
    $—  
    $3,974,911 
  
    Total 
    $3,974,911  
    $—  
    $—  
    $3,974,911 

The
Company initially recorded a warrant liability of $2.9 million as a result of the May 2025 public offering. The Company remeasured the
warrants as of June 30, 2025 and recognized a $1.1 million change in the fair value of the warrants.

Note
9. LEASES

The
Company has one operating lease for its real estate and office space for the CAP/CLIA laboratory, as well as multiple finance leases
for lab equipment in Texas that were acquired through the September 18, 2023 acquisition. On April 1, 2025, the company terminated one
of the finance leases related to lab equipment due to the Company’s targeted strategic actions announced in March, 2025. Additionally,
the Company entered into another operating lease on September 1, 2024, with regard to office space. The Company has operating leases
consisting of office space with remaining lease terms ranging from 2.8 to 5.2 years as of June 30, 2025. The Company has finance leases
consisting of lab equipment with remaining lease terms ranging from approximately 0