Company: BIAF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010787
Chunk: 18

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 7
Chunk 18
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 Requirement. Such a de-listing or even
notification of failure to comply with such requirements would likely have a negative effect on the price of our Common Stock and
Tradeable Warrants and would impair the ability to sell or purchase our Common Stock when you wish to do so. In the event of a
de-listing, we would take actions to restore our compliance with The Nasdaq Capital Market’s listing requirements, but we can
provide no assurance that any such action taken by us would allow our Common Stock to become listed again, stabilize the market
price, improve the liquidity of our Common Stock, prevent our Common Stock from dropping below The Nasdaq Capital Market minimum bid
price requirement, or prevent future non-compliance with The Nasdaq Capital Market’s listing requirements.

The National Securities Markets
Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities, which
are referred to as “covered securities.” Because our Common Stock is listed on The Nasdaq Capital Market, it is a covered
security. Although the states are preempted from regulating the sale of covered securities, the federal statute does allow the states
to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then the states can regulate
or bar the sale of covered securities in a particular case. Further, if we were to be delisted from The Nasdaq Capital Market, our Common
Stock would cease to be recognized as a covered security and we would be subject to regulation in each state in which we offer our securities.

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, our officers and
directors own or exercise control of approximately 26% 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