Company: BIAF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024163
Chunk: 21

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 21
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.8 to 1.58 years as of June 30, 2024, for which the
Company has determined that it will use the equipment for a major part of its remaining economic life.

The
lease agreements generally do not provide an implicit borrowing rate. Therefore, the Company used a benchmark approach as of the date
of inception of the leases to derive an appropriate incremental borrowing rate to discount remaining lease payments. The Company benchmarked
itself against other companies of similar credit ratings and comparable quality and derived imputed interest rates ranging from 6.41%
to 8.07% for the lease term lengths.

Leases
with an initial term of 12 months or less are not recorded on the balance sheet. There are no material residual guarantees associated
with any of the Company’s leases, and there are no significant restrictions or covenants included in the Company’s lease
agreements. Certain leases include variable payments related to common area maintenance and property taxes, which are billed by the landlord,
as is customary with these types of charges for office space. The Company has not entered into any lease arrangements with related parties,
and the Company is not the sublessor in any arrangement.

The
Company’s existing leases contain escalation clauses and renewal options. The Company has evaluated several factors in assessing
whether there is reasonable certainty that the Company will exercise a contractual renewal option. For leases with renewal options that
are reasonably certain to be exercised, the Company included the renewal term in the total lease term used in calculating the right-of-use
asset and lease liability.

    14

The
components of lease expense, which are included in selling, general and administrative expense and depreciation and amortization for
the three and six months ended June 30, 2025 and 2024, are as follows:

SCHEDULE OF COMPONENTS OF LEASE EXPENSE

    2025  
    2024  
    2025  
    2024 

    Three months ended June 30,  
    Six months ended June 30, 

    2025  
    2024  
    2025  
    2024 
  
    Amortization of right-of-use asset - finance lease 
    $54,177  
    $224,567  
    $150,420  
    $320,810 
  
    Interest on lease liabilities - finance lease 
     7,410  
     22,235