Company: BIAF
Filing Date: 2025-04-22
Form Type: 424B3
Source: 0001641172-25-005598
Chunk: 107

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-04-22
Form: 424B3
Chunk 107
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Path Lung positive test that prompted a biopsy that otherwise would not have been
performed.

Targeted Strategic Actions

In March 2025, we 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 our subsidiary 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.

Continuation of Department of Defense Research

Beginning in the fourth quarter of 2023 and through
2024, we have been selling CyPath Lung tests to the Department of Defense (DOD) to conduct an observational study, “Detection
of Abnormal Respiratory Cell Populations in Lung Cancer Screening Patients Using the CyPath Lung Assay,” and for
research and development on using bronchoalveolar lavage fluid as a biological sample to assess cardiopulmonary function and exercise
performance in military personnel post COVID-19 infection.

Public and Private Offerings

On February 26, 2025, pursuant to the terms of the
Inducement Agreement certain holders of existing warrants exercised for cash (i) October Warrants to purchase an aggregate of up to 1,136,391
shares of Common Stock, at the reduced exercise price of $0.58 per share, and (ii) August Warrants to purchase an aggregate of up to 1,302,082
shares of Common Stock, at the reduced exercise price of $0.58 per share. We received aggregate gross proceeds of approximately $1.4 million,
before deducting advisory fees and other expenses payable by us. In consideration of the immediate exercise of the October Warrants and
August Warrants by the holders thereof in accordance with the Inducement Agreement, we issued the Inducement Warrants to purchase an aggregate
of up to 2,926,166 shares of Common Stock (120% of the number of shares of Common Stock issuable upon exercise of the October Warrants
and August Warrants) to such holders.

On October 21, 2024, we issued to certain institutional
investors (i) in a registered direct offering, 2,048,294 shares of our Common