Company: BIAF
Filing Date: 2025-06-27
Form Type: POS AM
Source: 0001641172-25-016927
Chunk: 203

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-06-27
Form: POS AM
Chunk 203
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 deconsolidating one or more of its collaborators or partners.

Business Combination

On September 18, 2023, the Company, in connection with the Asset Purchase Agreement it entered into with Village Oaks and Roby P. Joyce, M.D., dated September 18, 2023, acquired substantially all the assets and assumed certain liabilities of Village Oaks in exchange for total consideration of $ 3,500,000, which consists of: (1) $ 2.5 million in cash paid at closing and (2) 564,972 shares of the Company’s Common Stock valued at $ 1 million. The assets purchased included a clinical pathology laboratory regulated by the Centers for Medicare and Medicaid Services (“CMS”) and accredited by the College of American Pathologists (“CAP”) and certified under the Clinical Laboratory Improvement Amendments of 1988 (“CLIA”). The primary reason for the acquisition was control of the laboratory in which CyPath ®Lung is ordered and processed.

The Company recognized goodwill of $ 1,404,000 arising from the acquisition. The acquisition is being accounted for as a business combination in accordance with ASC 805. The Company has determined the fair values of the accounts receivable, accounts payable, and accrued expenses that make up the majority of the net working capital assumed in the acquisition.

The following table summarizes the purchase price and finalized purchase price allocations relating to the acquisition:

SCHEDULE OF PURCHASE PRICE AND FINALIZED PURCHASE PRICE ALLOCATIONS

| Cash                       |     | $ | 2,500,000 |
| Common Stock               |     |   | 1,000,000 |
| Total                      
 purchase consideration     |     | $ | 3,500,000 |
| Assets                     |     |   |           |
| Net working capital        
 (including cash)           |     | $ |   912,000 |
| Property and equipment     |     |   |   326,000 |
| Other assets               |     |   |     8,000 |
| Customer relationships     |     |   |   700,000 |
| Trade names and trademarks |     |   |   150,000 |
| Goodwill                   |     |   | 1,404,000 |
| Total                      
 net assets                 |     | $ | 3,500,000 |

Goodwill represents the excess fair value after the allocation to the identifiable net assets. The calculated goodwill is not deductible for tax purposes.

The Company incurred and expensed approximately $ 811,000