Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 919

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9
Chunk 919
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 does not significantly increase. If such funding is not available
or not available on terms acceptable to the Company, the Company’s current development plan may be curtailed. Furthermore, an alternative
source of funding to the sale of additional equity or debt securities is the exercise of outstanding warrants for which there can be
no guarantee. No adjustments have been made to the presented consolidated financial statements as a result of this uncertainty.

Note
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use
of Estimates

The preparation of financial statements in conformity with GAAP in the U.S. 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 to be reasonable based upon information
presently available. Actual results could differ from those estimates under different assumptions, judgments, or conditions.

Principles
of Consolidation

The
Company’s consolidated financial statements reflect its financial statements, those of its wholly owned subsidiaries, and certain
variable interest entities where the Company is the primary beneficiary. The accompanying consolidated financial statements include all
the accounts of the Company, its wholly owned subsidiaries, OncoSelect® Therapeutics, LLC and PPLS, and the variable interest
entity, Village Oaks. All significant intercompany balances and transactions have been eliminated.

    F-7

In
determining whether the Company is the primary beneficiary of a variable interest entity, it applies a qualitative approach that determines
whether it has both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses
of, or the right to receive benefits from, the entity that could potentially be significant to that entity. The Company continuously
assesses whether it is the primary beneficiary of a variable interest entity as changes to existing relationships or future transactions
may result in the Company consolidating or 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