Company: BIAF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010787
Chunk: 4

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 7
Chunk 4
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 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 March 31, 2025, we had a working capital deficit of approximately $1.6 million and an accumulated deficit of approximately $56.3 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.

19

Results of Operations

Three Months Ended March 31, 2025, Compared
to Three Months Ended March 31, 2024

Net loss for the three months ended March 31, 2025,
was approximately $2.7 million, compared to a net loss of approximately $2.0 million for the three months ended March 31, 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  March 31, 

    2025  
    2024 
  
    Patient service fees1 
    $1,570,382  
    $2,149,049 
  
    Histology service fees 
     263,754  
     237,972