Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 233

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 233
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    unlawful
    payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the DGCL; or

    ●
    any
    transaction from which the director derived an improper personal benefit.

Our
Charter and our A&R Bylaws require us to indemnify our directors and officers and allow us to indemnify other employees and agents
to the fullest extent permitted by the DGCL. Subject to certain limitations and limited exceptions, our Charter and A&R Bylaws also
require us to advance expenses incurred by our directors and officers for the defense of any action for which indemnification is required
or permitted.

While
we believe that including the limitation-of-liability and indemnification provisions in our Charter, A&R Bylaws, and indemnification
agreements is necessary to attract and retain qualified persons such as directors, officers, and key employees, those provisions may
discourage stockholders from bringing a lawsuit against our directors and officers for breaches of their fiduciary duties. They may also
reduce the likelihood of derivative litigation against our directors and officers, even though an action, if successful, might benefit
us and other stockholders. Further, a stockholder’s investment may be adversely affected to the extent that we pay the costs of
settlement and damage awards against directors and officers as required by these indemnification provisions.

Our
management collectively owns a substantial percentage of our Common Stock.

Based
on the provisions for determining beneficial ownership in accordance with Rule 13d-3 and Item 403 of Regulation S-K under the Exchange
Act, immediately after this Offering, our officers and directors will own or exercise control of approximately 24% of the voting power
of our outstanding Common Stock. As a result, investors may be prevented from affecting matters involving our Company, including:

    ●
    the
    composition of our Board and, through it, any determination with respect to our business direction and policies, including the appointment
    and removal of officers;

    ●
    any
    determinations with respect to mergers or other business combinations;

    ●
    our
    acquisition or disposition of assets; and

    ●
    our
    corporate financing activities.

Furthermore,
this concentration of voting power could have the effect of delaying, deterring, or preventing a change of control or other business
combination that might otherwise be beneficial to our stockholders. This significant concentration of share ownership may also adversely
affect the trading price for our Common Stock because investors may perceive