Company: BIAF
Filing Date: 2025-06-27
Form Type: POS AM
Source: 0001641172-25-016927
Chunk: 181

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-06-27
Form: POS AM
Chunk 181
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 Recognition

To determine revenue recognition for
the arrangements that the Company determines are within the scope of ASC 606, Revenue from Contracts with Customers, the Company
performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract,
(3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize
revenue when (or as) the entity satisfies a performance obligation.

Post-acquisition of PPLS, additional
revenue streams have been consolidated starting September 19, 2023. PPLS generates three sources of revenue: (1) patient service fees,
(2) histology service fees, and (3) medical director fees. The Company recognizes as revenue the amount that reflects the consideration
to which it expects to be entitled in exchange for goods sold or services rendered primarily upon completion of the testing process (when
results are reported) or when services have been rendered.

The Company follows a standard process,
which considers historical denial and collection experience and other factors (including the period of time that the receivables have
been outstanding), to estimate contractual allowances and implicit price concessions, recording adjustments in the current period as
changes in estimates. The process for estimating revenues and the ultimate collection of accounts receivable involves significant judgment
and estimation.

SCHEDULE OF REVENUE RECOGNITION

|                                             |     | For the Three Months Ended 
 March 31,                  
 2025                       |      2025 |     | 2024 |      2024 |
|:--------------------------------------------|:----|:---------------------------|----------:|:----|:-----|----------:|
| Patient service fees1                       |     | $                          | 1,570,382 |     | $    | 2,149,049 |
| Histology service fees                      |     |                            |   263,754 |     |      |   237,972 |
| Medical director fees                       |     |                            |    16,588 |     |      |    16,058 |
| Department of Defense observational studies |     |                            |         — |     |      |     2,885 |
| Other revenues                              |     |                            |     2,873 |     |      |       427 |
| Total net revenue                           |     | $                          | 1,853,597 |     | $    | 2