Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 976

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9A
Chunk 976
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2023,
respectively.

Note
6. ACCRUED EXPENSES

Accrued
expenses at December 31, 2024 and 2023, are summarized below:

SCHEDULE OF ACCRUED EXPENSES

    December
    31, 

    2024  
    2023 

    Compensation 
    $1,079,839  
    $857,037 
  
    Legal and professional 
     98,477  
     257,926 
  
    Clinical 
     160,371  
     15,350 
  
    Other 
     60,035  
     19,498 
  
    Total
    accrued expenses 
    $1,398,722  
    $1,149,811 

Note
7. UNEARNED REVENUE

The
Company engaged in an observational study of CyPath® Lung with the 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 December
31, 2024. The performance obligation is deemed complete after samples have been collected and processed and results analyzed. The unearned
revenue balance amounted to $24,404 and $33,058 as of December 31, 2024 and 2023, respectively.

    F-12

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