Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 779

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 779
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000 
  
    Common Stock 
     1,000,000 
  
    Total
    purchase consideration 
    $3,500,000 
  
    Assets 

    Net working capital (including
    cash) 
    $912,000 
  
    Property and equipment 
     326,000 
  
    Other assets 
     8,000 
  
    Customer relationships 
     700,000 
  
    Trade names and trademarks 
     150,000 
  
    Goodwill 
     1,404,000 
  
    Total
    net assets 
    $3,500,000 

Goodwill
represents the excess fair value after the allocation to the identifiable net assets. The calculated goodwill is not deductible for tax
purposes.

The
Company incurred and expensed approximately $811,000
in acquisition costs.

Cash
and Cash Equivalents

For
the purpose of the consolidated statement of cash flows, the Company considers all highly liquid investments with original
maturities of three months or less at the time of purchase to be cash equivalents. Cash equivalents are stated at cost, which
approximates market value because of the short maturity of these instruments.

Concentration
of Risk

The
Company has significant cash balances at financial institutions which throughout the year regularly exceed the federally insured limit
of $250,000. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company’s financial
condition, results of operations, and cash flows.

Advertising
Expense

The
Company expenses all advertising costs as incurred. Advertising expenses were approximately $267,201 and $88,832 for the years ended
December 31, 2024 and 2023, respectively.

    F-8

Loss
Per Share

Basic
loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of the Company’s
Common Stock, par value $0.007 per share outstanding during the period. Diluted loss per share is computed by dividing net loss attributable
to common stockholders by the sum of the weighted-average number of shares of Common Stock outstanding during the period and the weighted-average
number of dilutive Common Stock equivalents outstanding during the period, using the treasury stock method. Dilutive Common Stock equivalents
are comprised of in-the-money stock options, convertible notes payable, and warrants based on the average stock price for each period
using the treasury stock method.

The
following potentially dil