Company: BIAF
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023405
Chunk: 48

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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 Activities

Net
cash used in operating activities was approximately $6.8 million and $5.6 million for the nine months ended September 30, 2025 and 2024,
respectively. The increase of approximately $1.2 million in cash used by operations during the nine months ended September 30, 2025,
compared to the same period in 2024 was primarily attributable to an increase of $5.7 million in our loss from operations, a decrease
in accounts payable and accrued expenses by $0.4 million offset by a decrease in accounts receivable by $1.2 million compared to the
prior year, and a fair value adjustment to the warrant liability by $3.8 million related to the May 2025 warrant agreement.

25

Net
Cash Used in Investing Activities

We
used approximately $60,000 for the nine months ended September 30, 2025, in investing activities related primarily to purchase of computer
and lab equipment, compared to approximately $80,000 used in investing activities for the nine months ended September 30, 2024.

Net
Cash Provided by Financing Activities

Cash
provided in financing activities was approximately $13.4 million compared to cash provided by financing activities of approximately $3.6
million for the nine months ended September 30, 2025 and 2024, respectively. The change in proceeds from prior year was primarily related
to net proceeds from the equity transactions of $13.7 million offset by payments for loans and finance leases of $0.3 million, compared
to the prior year of equity transactions of $3.6 million offset by payments for loans and finance leases of approximately $18,000.

Contractual
Obligations and Commitments

We
enter into contracts in the normal course of business with third-party contract organizations for clinical trials and other services
and products used for research and development and operating purposes. These contracts generally provide for termination following a
certain period after notice, and therefore we believe that any non-cancellable obligations under these agreements are not material.

Critical
Accounting Estimates

The
preparation of financial statements in conformity with U.S. GAAP requires management to make significant judgments and estimates that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Management bases these significant judgments
and estimates on historical experience and other assumptions it believes