Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 174

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 174
---
 begin to generate such profit, there is
no guarantee that it will be sufficient to realize the expected financial benefits of the acquisition and that revenue generated will
cover necessary operating expenses. In addition, since we have limited experience operating a clinical laboratory, we may not accurately
estimate the expenses we will incur. Ownership of a CAP/CLIA laboratory and related services business may not have the clinical value
and commercial potential which we envision. Any substantive failure of PPLS laboratory to meet our expectations could have a material
negative effect on our results of operations. There can be no assurance that the anticipated benefits of PPLS will materialize or that
if they materialize will result in increased stockholder value or revenue stream to the combined company.

 23 

We
will require additional financing to implement our business plan, which may not be available on favorable terms or at all, and we may
have to accept financing terms that would place restrictions on us.

We
believe that we must raise additional funds to be able to continue our business operations. We may not be able to obtain equity or debt
financing on acceptable terms or at all to implement our growth strategy. As a result, adequate capital may not be available to finance
our current development plan, take advantage of business opportunities, or respond to competitive pressures. If we are unable to raise
additional funds, we may be forced to curtail or even abandon our business plan and focus on fewer commercial opportunities that may
result in more limited growth than forecast.

Until
such time, if ever, as we can generate substantial income from sale of our diagnostic test(s) and therapeutic product candidates, we
expect to finance our cash needs through a combination of equity offerings, debt financings, and license and collaboration agreements.
To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of existing
stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the
rights of the holders of our Common Stock (the “Common Stockholders”). In addition, the terms of any future financing may
impose restrictions on our right to declare dividends or on the manner in which we conduct our business. Debt financing and preferred
equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions,
such as incurring additional debt, making capital expenditures, declaring dividends, or making acquisitions or significant asset sales.

If
we raise additional funds