Company: BIAF
Filing Date: 2025-06-02
Form Type: DEF 14A
Source: 0001641172-25-013280
Chunk: 39

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-06-02
Form: DEF 14A
Chunk 39
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 the shares of Common Stock surrendered. Treasury regulations provide detailed rules for allocating the tax
basis and holding period of the shares of Common Stock surrendered to the shares of Common Stock received in a recapitalization pursuant
to the Reverse Stock Split. U.S. holders of shares of Common Stock acquired on different dates and at different prices should consult
their tax advisors regarding the allocation of the tax basis and holding period of such shares.

Cash in Lieu of Fractional Shares

A U.S. holder of Common Stock that receives cash in
lieu of a fractional share of Common Stock pursuant to the Reverse Stock Split and whose proportionate interest in us is reduced (after
taking into account certain constructive ownership rules) should generally recognize capital gain or loss in an amount equal to the difference
between the amount of cash received and the U.S. holder’s tax basis in the shares of Common Stock surrendered that is allocated
to such fractional share of Common Stock. Such capital gain or loss should be long-term capital gain or loss if the U.S. holder’s
holding period for Common Stock surrendered exceeds one year at the effective time of the Reverse Stock Split. The deductibility of capital
losses is subject to limitations. A U.S. holder that receives cash in lieu of a fractional share of our Common Stock pursuant to the Reverse
Stock Split and whose proportionate interest in us is not reduced (after taking into account certain constructive ownership rules) should
generally be treated as having received a distribution that will be treated first as dividend income to the extent paid out of our current
or accumulated earnings and profits, and then as a tax-free return of capital to the extent of the U.S. holder’s tax basis in our
Common Stock, with any remaining amount being treated as capital gain. U.S. holders should consult their tax advisors regarding the tax
effects to them of receiving cash in lieu of fractional shares based on their particular circumstances.

Non-U.S. Holders

Generally, non-U.S. holders will not
recognize any gain or loss as a result of the Reverse Stock Split. In particular, gain or loss will not be recognized with respect to
a non-U.S. holder that receives cash in lieu of a fractional share of Common Stock and whose proportionate interest in us is reduced
(after taking into account certain constructive ownership rules) provided that (i) such gain or loss is not effectively connected
with the conduct of a trade or business by such non-U.S. holder in the United States (or, if certain income