Company: BIAF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024163
Chunk: 68

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 7
Chunk 68
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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 June 30, 2025, we had a working capital deficit of approximately $0.9 million and an accumulated
deficit of approximately $60.4 million. We expect to continue to incur significant operating losses for the foreseeable future as we
continue the development of our diagnostic tests and advance our diagnostic tests through clinical trials.

We
anticipate raising additional cash needed through the private or public sales of equity or debt securities, collaborative arrangements,
or a combination thereof to continue to fund our operations and develop our products. There is no assurance that any such collaborative
arrangement will be entered into or that financing will be available to us when needed in order to allow us to continue our operations
or, if available, on terms acceptable to us. If we do not raise sufficient funds in a timely manner, we may be forced to curtail operations,
delay our clinical trials, cease operations altogether, or file for bankruptcy.

22

Results
of Operations

Three
Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024

Net
loss for the three months ended June 30, 2025, was approximately $4.1 million, compared to a net loss of approximately $2.1 million for
the three months ended June 30, 2024.

Revenue

Since
acquisition of the clinical pathology laboratory on September 19, 2023, additional revenue streams have been consolidated. 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.

    For the Three Months Ended June 30, 

    2025  
    2024 
  
    Patient service fees1 
    $942,067  
    $2,060,906