Company: BIAF
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023405
Chunk: 65

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 7
Chunk 65
---
, the Company received written notice from The Nasdaq Stock Market LLC stating that the panel has found the Company
to be in compliance with the Minimum Bid Price Rule and the Minimum Stockholders’ Equity Rule. The
letter also indicated that the Company will be subject to a mandatory panel monitor for a period of one year. If, within that one-year
monitoring period, the Company fails to comply with the Minimum Stockholders’ Equity Rule, the Company will not be permitted additional
time to regain compliance. However, the Company will have an opportunity to request a new hearing with the Nasdaq Hearings Panel prior
to the Company’s securities being delisted from Nasdaq.

Financial

To
date, we have devoted a substantial portion of our efforts and financial resources to the development of our diagnostic test, CyPath®
Lung. As a result, since our inception in 2014, we have funded our operations principally through private and public sales of our
equity. As of September 30, 2025, we had cash and cash equivalents of $7.7 million. As of October 29, 2025, we had cash and cash equivalents
of $8.4 million, which we expect will support our operations through May 2026. We have incurred significant losses and negative cash
flows from operations since inception and expect to continue to incur losses and negative cash flows for the foreseeable future. Based
on the Company’s current expected level of operating expenditures and the cash and cash equivalents on hand at September 30, 2025,
management concludes that there is substantial doubt about the Company’s ability to continue as a going concern for a period of
at least twelve (12) months subsequent to the issuance of the accompanying condensed consolidated financial statements.

Prior
to acquisition of the clinical pathology laboratory by PPLS, Village Oaks, under the trade name Precision Pathology Services, had licensed
and developed CyPath® Lung as a laboratory developed test (“LDT”) for sale to physicians. The license agreement
provided that revenues from the sale would be split evenly between the Company and Village Oaks. In the second quarter of 2022, prior
to the acquisition, we started to recognize revenue as part of a limited beta market testing program of the CyPath® Lung
test. We have never been profitable, and as of September 30, 2025, we had a working capital of approximately $6.3 million and an accumulated
deficit of approximately $65.4 million. We expect