Company: BIAF
Filing Date: 2025-06-27
Form Type: POS AM
Source: 0001641172-25-016923
Chunk: 167

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-06-27
Form: POS AM
Chunk 167
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 bases these significant judgments and estimates on historical
experience and other assumptions it believes to be reasonable based upon information presently available. Actual results could differ
from those estimates under different assumptions, judgments, or conditions.

Principles of Consolidation

The Company’s consolidated financial
statements reflect its financial statements, those of its wholly owned subsidiaries, and certain variable interest entities where the
Company is the primary beneficiary. The accompanying consolidated financial statements include all the accounts of the Company, its wholly
owned subsidiaries, OncoSelect Therapeutics, LLC and PPLS, and the variable interest entity, Village Oaks. All significant
intercompany balances and transactions have been eliminated.

| F-6 |

In determining whether the Company
is the primary beneficiary of a variable interest entity, it applies a qualitative approach that determines whether it has both (1) the
power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive
benefits from, the entity that could potentially be significant to that entity. The Company continuously assesses whether it is the primary
beneficiary of a variable interest entity as changes to existing relationships or future transactions may result in the Company consolidating
or deconsolidating one or more of its collaborators or partners.

Cash and Cash Equivalents

For the purpose of the 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 flow.

Advertising Expense

The Company expenses all advertising
costs as incurred. Advertising expense was $28,206
and $11,920 for the three months ended
March 31, 2025 and 2024, respectively.

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 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