Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 1149

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 11
Chunk 1149
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 Village Oaks and Roby P. Joyce,
M.D., dated September 18, 2023, acquired substantially all the assets and assumed certain liabilities of Village Oaks in exchange for
total consideration of $3,500,000, which consists of: (1) $2.5 million in cash paid at closing and (2) 564,972 shares of the Company’s
Common Stock valued at $1 million. The assets purchased included a clinical pathology laboratory regulated by the Centers for Medicare
and Medicaid Services (“CMS”) and accredited by the College of American Pathologists (“CAP”) and certified under
the Clinical Laboratory Improvement Amendments of 1988 (“CLIA”). The primary reason for the acquisition was control of the
laboratory in which CyPath® Lung is ordered and processed.

The
Company recognized goodwill of $1,404,000 arising from the acquisition. The acquisition is being accounted for as a business combination
in accordance with ASC 805. The Company has determined the fair values of the accounts receivable, accounts payable, and accrued expenses
that make up the majority of the net working capital assumed in the acquisition.

The
following table summarizes the purchase price and finalized purchase price allocations relating to the acquisition:

SCHEDULE
OF PURCHASE PRICE AND  FINALIZED PURCHASE PRICE ALLOCATIONS

    Cash 
    $2,500,000 
  
    Common Stock 
     1,000,000 
  
    Total
    purchase consideration 
    $3,500,000 
  
    Assets 

    Net working capital (including
    cash) 
    $912,000 
  
    Property and equipment 
     326,000 
  
    Other assets 
     8,000 
  
    Customer relationships 
     700,000 
  
    Trade names and trademarks 
     150,000 
  
    Goodwill 
     1,404,000 
  
    Total
    net assets 
    $3,500,000 

Goodwill
represents the excess fair value after the allocation to the identifiable net assets. The calculated goodwill is not deductible for tax
purposes.

The
Company incurred and expensed approximately $811,000
in acquisition costs.

Cash
and Cash Equivalents

For
the purpose of the consolidated statement of cash flows, the Company considers all highly liquid investments with original
maturities of three months or less at the time of purchase to be cash equivalents. Cash equivalents are stated at cost, which
approximates