Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 279

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 279
---
 based on the average stock price for each period
using the treasury stock method.

The
following potentially dilutive securities have been excluded from the computations of weighted average shares of Common Stock outstanding
as of December 31, 2024 and 2023, as they would be anti-dilutive:

SCHEDULE
OF POTENTIALLY DILUTIVE SECURITIES

    As
    of December 31, 

    2024  
    2023 
  
    Shares underlying options outstanding 
     304,125  
     683,695 
  
    Shares underlying warrants outstanding 
     12,298,124  
     — 
  
    Shares underlying unvested
    restricted stock outstanding 
     349,057  
     4,649,952 
  
    Anti-dilutive
    securities 
     12,951,306  
     5,333,647 

Revenue
Recognition

To
determine revenue recognition for the arrangements that the Company determines are within the scope of ASC 606, Revenue from Contracts
with Customers, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance
obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in
the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

Post-acquisition
of PPLS, additional revenue streams have been consolidated starting September 19, 2023. 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.

The
Company follows a standard process, which considers historical denial and collection experience and other factors (including the period
of time that the receivables have been outstanding), to estimate contractual allowances and implicit price concessions, recording adjustments
in the current period as changes in estimates. The process for estimating revenues and the ultimate collection of accounts receivable
involves significant judgment and estimation.

Pre-acquisition, bioAffinity’s revenue was generated in three ways: (1) royalties from
the Company’s diagnostic test,