Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 799

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 799
---
    Effective
    income tax rate 
     0.00% 
     0.00%

Unrecognized
tax benefits

As
of December 31, 2024, and 2023, the Company has unrecognized tax benefits related to tax credits of $281,207 and $249,516, respectively.
None of the unrecognized tax benefits as of December 31, 2024, if recognized, would impact the effective tax rate due to the valuation
allowance, and no interest or penalties have been recognized. A reconciliation of the beginning and ending balance of unrecognized tax
benefits is as follows:

SCHEDULE
OF UNRECOGNIZED TAX BENEFITS

    December
    31, 

    2024  
    2023 
  
    Beginning balance 
    $249,516  
    $190,228 
  
    Deductions based on tax positions related
    to the prior year 
     —  
     30,897 
  
    Additions based on
    tax positions related to the current year 
     31,691  
     28,391 
  
    Ending balance 
    $281,207  
    $249,516 

Note
16. SUBSEQUENT EVENTS

On
March 7, 2025, the Company announced targeted strategic actions to improve financial performance and accelerate the commercial
growth of CyPath® Lung, taking steps to deliver approximately $4 million in annual cost savings at its subsidiary
Precision Pathology Laboratory Services (PPLS), while increasing resources to expand CyPath® Lung sales in
high-potential national markets. Specifically, cost savings are a result of labor cost reductions, operational efficiency
enhancements, and discontinuing certain pathology services with suboptimal profit margins to focus on high-margin services such as
CyPath® Lung and by discontinuing certain pathology services with suboptimal profit margins. 

On
February 26, 2025, pursuant to the terms of a warrant inducement agreement (the “February Inducement Agreement”), dated
February 25, 2025 that the Company entered into with certain holders of existing warrants, such holders exercised for cash (i)
warrants to purchase an aggregate of up to 1,302,082
shares of Common Stock issued on October 21, 2024 (the “October Warrants”), at the reduced exercise price of $0.58
per share, and (ii) warrants