Company: BIAF
Filing Date: 2025-06-27
Form Type: POS AM
Source: 0001641172-25-016927
Chunk: 188

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-06-27
Form: POS AM
Chunk 188
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 under the FASB accounting standard for such instruments. Under this standard,
financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair
value measurement.

The three levels of the hierarchy and the related inputs
are as follows:

| Level |     | Inputs                                                                            |
| 1     |     | Unadjusted quoted prices                                                          
 in active markets for identical assets and liabilities;                           |
|       |     | Unadjusted quoted prices                                                          
 in active markets for similar assets and liabilities.                             |
| 2     |     | Unadjusted quoted prices                                                          
 for identical or similar assets or liabilities in markets that are not active; or |
|       |     | inputs other than quoted                                                          
 prices that are observable for the asset or liability.                            |
| 3     |     | Unobservable inputs for                                                           
 the asset or liability.                                                           |

The estimated fair value of certain
financial instruments, including cash and cash equivalents, accounts and other receivables, 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