Company: BIAF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024163
Chunk: 31

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 31
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ilution Adjustment included in the registration
statement the Company will file covering shares issuable as a result of an Anti-Dilution Adjustment and will not be able to effect a
cashless exercise with respect to such shares.

As
of June 30, 2025, all pre-funded warrants had been exercised and the Company received proceeds $12,855 and issued 2,361,224 shares. In
addition, designees of the placement agent for the Offering were issued warrants to purchase an aggregate of up to 304,687 shares of
Common Stock, with an exercise price of $0.352 per share and are exercisable for five years.

    18

The
following table summarizes the calculated aggregate fair values for the warrant derivative liability using the Black-Scholes method based
on the following assumptions for the Offering:

SUMMARY OF AGGREGATE FAIR VALUES FOR THE WARRANT DERIVATIVE LIABILITY 

    Exercise price per share of warrant 
    $0.352 
  
    Fair market closing price per share of Common Stock 
    $0.21 
  
    Volatility 
     152%
  
    Expected term (years) 
     5 
  
    Risk-free interest rate 
     3.87%
  
    Dividend yield 
     0%

The
fair value of the above warrants was recorded as a warrant liability for the Offering, with the residual proceeds recorded in additional paid-in
capital. The fair value of the Offering using the assumptions above was approximately $2.9 million for the warrant liability and approximately
$0.2 million to equity.

During
the six months ended June 30, 2025, 70,313
warrants were exercised resulting in reclassification to additional paid-in capital in the amount of approximately $46,000.
Due to fair value changes since the transaction through June 30, 2025, the Company recorded a loss on the remeasurement of its
warrant liabilities of approximately $1.0
million.

As
of June 30, 2025, there were tradeable warrants to purchase up to an aggregate of 1,601,255 shares of Common Stock outstanding and non-tradeable
warrants to purchase an aggregate of up to 2,704,458 shares of Common Stock outstanding.

SCHEDULE OF CLASS OF WARRANT 

    Number of  warrants issued  
    Weighted- average exercise price  
    Number of  warrants exercised  
    Number of  warrants outstanding