Company: BIAF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010787
Chunk: 52

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 52
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 professional 
     107,064  
     98,477 
  
    Clinical 
     287,258  
     160,371 
  
    Other 
     44,205  
     60,035 
  
    Total accrued expenses 
    $1,370,735  
    $1,398,722 

Note 7. UNEARNED REVENUE

The Company engaged in an observational study of CyPath®
Lung with the U.S. Department of Defense (“DOD”). A total of 70 CyPath® Lung units were ordered and shipped.
However, in compliance with FASB ASC 606, the performance obligation was complete for only 40 units as of March 31, 2025. The performance
obligation is deemed complete after samples have been collected, processed, and analyzed and results communicated to patients. The unearned
revenue balance amounted to $24,404 as of March 31, 2025, and December 31, 2024.

Note 8. FAIR VALUE MEASUREMENTS

The Company analyzes all financial instruments with
features of both liabilities and equity 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,