Company: BIAF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010787
Chunk: 43

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 43
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 accompanying notes are an integral part of these
condensed consolidated financial statements.

8

bioAffinity Technologies, Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

Note 1. NATURE OF OPERATIONS, ORGANIZATION, AND
BASIS OF PRESENTATION

Description of Business

bioAffinity Technologies, Inc., a Delaware corporation
(the “Company,” or “bioAffinity Technologies”), addresses the need for noninvasive diagnosis of lung cancer at
early stage and other diseases of the lung. bioAffinity Technologies’ proprietary platform uses flow cytometry and automated data
analysis built by machine learning, a form of artificial intelligence (“AI”), to preferentially target cancer cell populations
and other cell populations indicative of a diseased state. The Company’s first diagnostic test, CyPath® Lung, is
a noninvasive test for early detection of lung cancer, the leading cause of cancer-related deaths. CyPath® Lung is offered
for sale to physicians by the Company’s subsidiary, Precision Pathology Laboratory Services, LLC (“PPLS”). The Company
also conducted and intends to seek strategic partners to advance therapeutic discoveries that could in the future result in broad-spectrum
cancer treatments. Research and optimization of the Company’s proprietary platform technologies are conducted in laboratories at
PPLS and laboratory space leased at The University of Texas at San Antonio.

Organization

The Company was formed on March 26, 2014, as a Delaware
corporation with its corporate offices located in San Antonio, Texas. On June 15, 2016, the Company formed a wholly owned subsidiary,
OncoSelect® Therapeutics, LLC, as a Delaware limited liability company. On August 14, 2023, the Company formed a wholly
owned subsidiary, PPLS, as a Texas limited liability company, to acquire the assets of Village Oaks Pathology Services, P.A. (“Village
Oaks”), a Texas professional association d/b/a Precision Pathology Services, including the clinical pathology laboratory it owned.

Basis of Presentation

The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”)
and pursuant to the rules and regulations of the SEC for interim financial reporting. The condensed consolidated financial statements
are unaudited and in management’s opinion include all adjustments, including normal recurring adjustments and accruals, necessary
for a fair presentation of the results for the interim periods presented. The condensed