Company: BIAF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010787
Chunk: 50

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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) 
     (1,958,143)
  
    Income tax expense 
     (8,695) 
     (3,672)
  
    Net loss 
    $(2,660,417) 
    $(1,961,815)

    12

Research and Development

Research and development costs are charged to expense
as incurred. The Company’s research and development expenses consist primarily of expenditures for laboratory operations, preclinical
studies, compensation, and consulting costs.

Accrued Research and Development Costs

The Company records accrued liabilities for estimated
costs of research and development activities conducted by service providers, which include preclinical studies. The Company records the
estimated costs of research and development activities based upon the estimated amount of services provided but not yet invoiced and includes
these costs in accrued expenses in the accompanying condensed consolidated balance sheets and within research and development expense
in the accompanying condensed consolidated statements of operations.

The Company accrues for these costs based on factors
such as estimates of the work completed and in accordance with agreements established with service providers. The Company makes significant
judgments and estimates in determining the accrued expenses balance in each reporting period. As actual costs become known, the Company
adjusts its accrued liabilities. The Company has not experienced any material differences between accrued costs and actual costs incurred
since its inception.

Regulatory Matters

Regulations imposed by federal, state, and local authorities
in the U.S. are a significant factor in providing medical care. In the U.S., drugs, biological products, and medical devices are regulated
by the Federal Food, Drug, and Cosmetic Act (“FDCA”), which is administered by the Food and Drug Administration (“FDA”)
and the CMS. The Company has not yet obtained marketing authorization from the FDA but is able to market its CyPath® Lung
test as a laboratory developed test (“LDT”) sold by Precision Pathology Laboratory Services, a CAP-accredited, CLIA-certified
clinical pathology laboratory and wholly owned subsidiary.

Note 3. ACCOUNTS
AND OTHER RECEIVABLES, NET

The following is a summary of accounts receivables
and other receivables:

SCHEDULE OF ACCOUNTS AND OTHER RECEIVABLES 

    March 31, 2025  
    December 31, 2024 
  
    Patient service fees 
    $744,859  
    $915,488 
  
    Histology service fees 
     189,904  
     190,648