Company: BIAF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024163
Chunk: 19

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 19
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065

    $
    1,079,839

    Legal
    and professional

    45,832

    98,477

    Clinical

    113,547

    160,371

    Other

    112,590

    60,035

    Total
    accrued expenses
     
    $
    1,048,034

    $
    1,398,722

Note
7. UNEARNED REVENUE

The
Company engaged in an observational study of CyPath® Lung with the U.S. Department of Defense (“DOD”). A total
of 70 CyPath® Lung units were ordered and shipped. However, in compliance with FASB ASC 606, the performance obligation
was complete for only 40 units as of June 30, 2025. The performance obligation is deemed complete after samples have been collected,
processed, and analyzed and results communicated to patients. The unearned revenue balance amounted to $24,404 as of June 30, 2025, and
December 31, 2024.

Note
8. FAIR VALUE MEASUREMENTS

The
Company analyzes all financial instruments with features of both liabilities and equity under the FASB accounting standard for such instruments.
Under this standard, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant
to the fair value measurement.

The
three levels of the hierarchy and the related inputs are as follows:

    Level
     
    Inputs
  
    1
     
    Unadjusted
    quoted prices in active markets for identical assets and liabilities;

    Unadjusted
    quoted prices in active markets for similar assets and liabilities.
  
    2
     
    Unadjusted
    quoted prices for identical or similar assets or liabilities in markets that are not active; or

    inputs
    other than quoted prices that are observable for the asset or liability.
  
    3
     
    Unobservable
    inputs for the asset or liability.

The
estimated fair value of certain financial instruments, including cash and cash equivalents, accounts and other receivables, prepaid and
other current assets, accounts payable, accrued expenses, and note payable, are carried at historical cost basis, which approximates
their fair values because of the short-term nature of these instruments.

Warrants

The
Company issued liability classified warrants in connection with the issuance of the May 2025 warrants. The warrants