Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 3

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 3
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 a result of labor cost reductions, operational efficiency enhancements, and discontinuing certain pathology services
with suboptimal profit margins to focus on high-margin services such as CyPath® Lung and by discontinuing certain pathology
services with suboptimal profit margins.

Continuation
of Department of Defense Research

Beginning
in the fourth quarter of 2023 and through 2024, we have been selling CyPath® Lung tests to the Department of Defense (DOD)
to conduct an observational study, “Detection of Abnormal Respiratory Cell Populations in Lung Cancer Screening Patients Using
the CyPath® Lung Assay,” and for research and development on using bronchoalveolar lavage fluid as a biological
sample to assess cardiopulmonary function and exercise performance in military personnel post COVID-19 infection.

Public
and Private Offerings

On
February 26, 2025, pursuant to the terms of a warrant inducement agreement (the “February Inducement Agreement”), dated
February 25, 2025 that we entered into with certain holders of existing warrants, such holders exercised for cash (i) warrants to
purchase an aggregate of up to 1,302,082 shares of Common Stock issued on October 21, 2024 (the “October Warrants”), at
the reduced exercise price of $0.58 per share, and (ii) warrants to purchase an aggregate of up to 1,136,391 shares of Common Stock
issued on August 5, 2024 (the “August Warrants”), at the reduced exercise price of $0.58 per share. We received
aggregate gross proceeds of approximately $1.4 million, before deducting advisory fees and other expenses payable by us. In
consideration of the immediate exercise of the October Warrants and August Warrants by the holders thereof in accordance with the
February Inducement Agreement, we issued unregistered common warrants to purchase an aggregate of up to 2,926,166 shares of Common
Stock (120% of the number of shares of Common Stock issuable upon exercise of the October Warrants and August Warrants) to such
holders.

On
October 21, 2024, we issued to certain institutional investors (i) in a registered direct offering, 2,048,294 shares of our Common Stock,
and (ii) in a concurrent private placement, common warrants to purchase an aggregate of 2,662,782 shares of Common Stock, with an exercise
price