Company: BIAF
Filing Date: 2025-04-15
Form Type: PRE 14A
Source: 0001641172-25-004857
Chunk: 40

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-04-15
Form: PRE 14A
Chunk 40
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 election under applicable Treasury Regulations to be treated as a domestic trust.                                             |

A “non-U.S. holder” is, for U.S. federal
income tax purposes, a beneficial owner of shares of Common Stock that is a not a U.S. holder or a partnership for U.S. federal income
tax purposes.

Tax Consequences of the Reverse Stock Split Generally

The Reverse Stock Split should constitute a “recapitalization”
for U.S. federal income tax purposes. As a result, a U.S. holder of Common Stock generally should not recognize gain or loss upon the
Reverse Stock Split, except with respect to cash received in lieu of a fractional share of Common Stock, as discussed below. A U.S. holder’s
aggregate tax basis in the shares of Common Stock received pursuant to the Reverse Stock Split should equal the aggregate tax basis of
the shares of Common Stock surrendered (excluding any portion of such basis that is allocated to any fractional share of Common Stock),
and such U.S. holder’s holding period in the shares of Common Stock received should include the holding period in the shares of
Common Stock surrendered. Treasury Regulations provide detailed rules for allocating the tax basis and holding period of the shares of
Common Stock surrendered to the shares of Common Stock received in a recapitalization pursuant to the Reverse Stock Split. U.S. holders
of shares of Common Stock acquired on different dates and at different prices should consult their tax advisors regarding the allocation
of the tax basis and holding period of such shares.

Cash in Lieu of Fractional Shares

A U.S. holder of Common Stock that receives cash in
lieu of a fractional share of Common Stock pursuant to the Reverse Stock Split and whose proportionate interest in us is reduced (after
taking into account certain constructive ownership rules) should generally recognize capital gain or loss in an amount equal to the difference
between the amount of cash received and the U.S. holder’s tax basis in the shares of Common Stock surrendered that is allocated
to such fractional share of Common Stock. Such capital gain or loss should be long-term capital gain or loss if the U.S. holder’s
holding period for Common Stock surrendered exceeds one year at the effective time of the Reverse Stock Split. The deductibility of capital
losses is subject to limitations. A U.S. holder that receives cash in lieu of a fractional share of our Common Stock pursuant to the Reverse
Stock Split and whose proportionate interest in us is not reduced (after taking into account certain constructive ownership rules) should