Company: BIAF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024163
Chunk: 74

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 7
Chunk 74
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4, respectively. The decrease
in operating expenses is the result of the following factors:

Direct
costs and expenses

Our
direct costs and expenses are primarily direct labor for pathology services, laboratory supplies and reagents, laboratory equipment,
and allocated shared facilities. Direct costs and expenses totaled approximately $2.4 million and $3.0 million during the six months
ended June 30, 2025 and 2024, respectively. The decrease of approximately $0.6 million for 2025 compared to 2024 was primarily attributable
to the targeted strategic actions which occurred in March 2025, aimed at streamlining operations and reducing costs related to our lab
operations.

Research
and Development Expenses

Our
research and development expenses consist primarily of expenditures for laboratory operations, preclinical and clinical studies, compensation,
and consulting costs.

Research
and development expenses totaled $0.7 million and $0.8 million for the six months ended June 30, 2025 and 2024, respectively. The decrease
of approximately $0.1 million, or 15%, for the six months ended June 30, 2025, compared to the same period in 2024 was primarily attributable
to a decrease in compensation costs and benefits and lab supplies.

Clinical
Development

Clinical
development expenses totaled approximately $0.3 million and $0.1 million for the six months ended June 30, 2025 and 2024, respectively.
The increase of approximately $0.2 million, or 16%, for the six months ended June 30, 2025, compared to the same period in 2024 was primarily
attributable to an increase in professional fees in 2025 related to managing our clinical strategy for our pivotal clinical trial.

Selling,
General and Administrative

Our
selling, general and administrative expenses consist primarily of expenditures related to employee compensation, selling and marketing
costs, legal, accounting and tax, and other professional services, and general operating expenses.

Selling,
general and administrative expenses totaled approximately $4.7 million for each of the six months ended June 30, 2025 and 2024, respectively.
Our selling, general and administrative costs stayed level as a result of decreases in aimed at streamlining operations and reducing
costs in our lab operations, offset by increases in employee compensation related to the addition of additional personnel and support
services to support sales of our diagnostic test, CyPath® Lung.

25

Depreciation