Company: BIAF
Filing Date: 2025-06-27
Form Type: POS AM
Source: 0001641172-25-016923
Chunk: 176

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-06-27
Form: POS AM
Chunk 176
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ivables, prepaid and other current assets, accounts
payable, accrued expenses, and note payable, are carried at historical cost basis, which approximates their fair values because of the
short-term nature of these instruments.

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. 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 2.3
to 5.4
years as of March 31, 2025. The Company has finance leases consisting of office and lab equipment with remaining lease terms ranging
from approximately 1.1
to 2.8
years as of March 31, 2025, for which the Company has determined that it will use the equipment for a major part of its remaining economic
life.

The lease agreements generally do
not provide an implicit borrowing rate. Therefore, the Company used a benchmark approach as of the date of inception of the leases to
derive an appropriate incremental borrowing rate to discount remaining lease payments. The Company benchmarked itself against other companies
of similar credit ratings and comparable quality and derived imputed interest rates ranging from 7.43%
to 8.07%
for the lease term lengths.

Leases with an initial term of 12
months or less are not recorded on the balance sheets. There are no material residual guarantees associated with any of the Company’s
leases, and there are no significant restrictions or covenants included in the Company’s lease agreements. Certain leases include
variable payments related to common area maintenance and property taxes, which are billed by the landlord, as is customary with these
types of charges for office space. The Company has not entered into any lease arrangements with related parties, and the Company is not
the sublessor in any arrangement.

The Company’s existing leases
contain escalation clauses and renewal options. The Company has evaluated several factors in assessing whether there is reasonable certainty
that the Company will exercise a contractual renewal option. For leases with renewal options that are reasonably certain to be exercised,
the Company included the renewal term in the total lease term used in calculating the right-of-use asset and lease liability.

| F-11 |

The
components of lease