Company: BIAF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024163
Chunk: 13

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 13
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 when (or as) the entity satisfies a performance obligation.

Post-acquisition
of PPLS, additional revenue streams have been consolidated starting September 19, 2023. PPLS generates three sources of revenue: (1)
patient service fees, (2) histology service fees, and (3) medical director fees. The Company recognizes as revenue the amount that reflects
the consideration to which it expects to be entitled in exchange for goods sold or services rendered primarily upon completion of the
testing process (when results are reported) or when services have been rendered.

The
Company follows a standard process, which considers historical denial and collection experience and other factors (including the period
of time that the receivables have been outstanding), to estimate contractual allowances and implicit price concessions, recording adjustments
in the current period as changes in estimates. The process for estimating revenues and the ultimate collection of accounts receivable
involves significant judgment and estimation.

SCHEDULE OF REVENUE RECOGNITION

    2025  
    2024 

    For the six months ended  June 30, 

    2025  
    2024 
  
    Patient service fees1 
    $2,512,449  
    $4,209,955 
  
    Histology service fees 
     572,358  
     530,053 
  
    Medical director fees 
     33,897  
     33,193 
  
    Department of Defense observational studies 
     —  
     6,923 
  
    Other revenues 
     4,376  
     23,919 
  
    Total net revenue 
    $3,123,080  
    $4,804,043 

    1
    Patient
    services fees include direct billing for CyPath® Lung diagnostic test of approximately $323,000 and $199,000 for the
    six months ended June 30, 2025 and 2024, respectively.

Property
and Equipment

In
accordance with ASC 360-10, Accounting for the Impairment of Long-Lived Assets, the Company periodically reviews the carrying
value of its long-lived assets, such as property, equipment, and definite-lived intangible assets, to test whether current events or
circumstances indicate that such carrying value may not be recoverable. When evaluating assets for potential impairment, the Company
compares the carrying value of the asset to