Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 507

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 507
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 Goodwill represents the purchase
price in excess of fair values assigned to the underlying identifiable net assets of the acquired business. Goodwill and Intangible Assets
are reviewed annually for impairment unless circumstances dictate the need for more frequent assessment.

In
performing impairment tests for our Goodwill in 2024, in accordance with ASC 350 - Intangibles – Goodwill and Other, we
opted to complete a quantitative assessment at the PPLS level as opposed to relying on a qualitative assessment as permitted in the
guidance. This quantitative assessment required that the estimated fair value of PPLS’ net assets, including Goodwill, be
calculated and compared to the carrying amount. If that estimated fair value is in excess of the carrying amount, no impairment is
recognized. We performed this assessment as of December 31, 2024. We estimated the fair value of the net assets tested using a
discounted cash flow model. The income-based approach required significant judgment to estimate future cash flows, including revenue
growth inclusive of long-term growth rate assumptions and the discount rate. Significant changes in our estimates and assumptions
could affect our fair value calculations. Our estimate of fair value exceeded the carrying amount and therefore resulted in no
impairment.

Going
Concern

Our
evaluation of our ability to continue as a going concern requires us to evaluate our future sources and uses of cash sufficient to fund
our currently expected operations in conducting research and development activities one year from the date our consolidated financial
statements are issued. We evaluate the probability associated with each source and use of cash resources in making our going concern
determination. The research and development of our diagnostic tests and therapeutic products are inherently subject to uncertainty.

Off-Balance
Sheet Arrangements

We
do not engage in transactions that generate relationships with unconsolidated entities or financial partnerships, such as entities often
referred to as structured finance or special purpose entities, as a part of our ongoing business. Accordingly, we did not have any off-balance
sheet arrangements during any of the periods presented.

Item
7A. Quantitative and Qualitative Disclosures About Market Risk.

We
are a smaller reporting company as defined by Item 10 of Regulation S-K and are not required to provide the information otherwise required
under this Item 7A.

Item
8. Financial Statements and Supplementary Data.

The
information required by this item is presented at the end of this Annual Report beginning on page F-1 and is incorporated herein by reference.
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