Company: BIAF
Filing Date: 2025-06-27
Form Type: POS AM
Source: 0001641172-25-016923
Chunk: 166

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-06-27
Form: POS AM
Chunk 166
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 (the “2024 Form 10-K”).

Liquidity and Capital Resources

In accordance with Accounting Standards
Update (“ASU”) 2014-15, Presentation of Financial Statements – Going Concern(Subtopic 205-40), the Company
has evaluated whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a
going concern for at least one year after the date the condensed consolidated financial statements are issued.

The Company has incurred significant
losses and negative cash flows from operations since inception and expects to continue to incur losses and negative cash flows for the
foreseeable future. As a result, the Company had an accumulated deficit of approximately $56.3
million at March 31, 2025. The Company’s cash and cash equivalents at March 31, 2025, were approximately $0.4
million. Based on the Company’s current expected level of operating expenditures and the cash and cash equivalents on hand at March
31, 2025, management concludes that there is substantial doubt about the Company’s ability to continue as a going concern for a
period of at least twelve (12) months subsequent to the issuance of the accompanying unaudited condensed consolidated financial statements.
On May 7, 2025, the Company completed a public offering of its common stock pursuant to which the Company raised an additional $3.25
million in cash in gross proceeds, see Note 15. Subsequent Events. However, the Company will need to raise further capital through
the sale of additional equity or debt securities or other debt instruments, strategic relationships or grants, or other arrangements
to support its future operations, if revenue from operations does not significantly increase. If such funding is not available or not
available on terms acceptable to the Company, the Company’s current development plan may be curtailed. Furthermore, an alternative
source of funding to the sale of additional equity or debt securities is the exercise of outstanding warrants for which there can be
no guarantee. No adjustments have been made to the presented condensed consolidated financial statements as a result of this uncertainty.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements
in conformity with GAAP in the U.S. requires management to make significant judgments and estimates that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Management