Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 781

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 781
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 Company’s CyPath® Lung test, and (3) CyPath® Lung tests purchased by the U.S. Department of
Defense (“DOD”) for an observational study, “Detection of Abnormal Respiratory Cell Populations in Lung Cancer Screening
Patients Using the CyPath® Lung Assay (NCT05870592),” and research and development on using bronchoalveolar lavage
fluid as a biological sample to assess cardiopulmonary function and exercise performance in military personnel post COVID-19 infection.
The royalty income from CyPath® Lung and clinical flow cytometry services income, beginning September 19, 2023, are related
party income and, therefore, eliminated from consolidated net revenues.

SCHEDULE
OF REVENUE RECOGNITION

    Year Ended
                                                                               December 31, 

    2024  
    2023 
  
    Patient service
    fees1 
    $8,175,670  
    $2,199,558 
  
    Histology service fees 
     1,103,751  
     272,660 
  
    Medical director fees 
     66,576  
     19,324 
  
    Department of Defense observational studies 
     8,654  
     19,442 
  
    Other revenues 
     7,371  
     21,515 
  
    Total
    net revenue 
    $9,362,022  
    $2,532,499 

    1
    Patient
    services fees include direct billing for CyPath® Lung diagnostic test of approximately $516,000 and $35,000 for the years
    ended December 31, 2024 and 2023.

Reclassifications

Certain
prior year balances have been reclassified to conform to current year presentation. Any reclassifications had an immaterial effect on the Company’s consolidated financial statements and had no
effect on prior periods net income or stockholders’ equity.

Property
and Equipment, Net

In
accordance with ASC 360-10, Accounting for the Impairment of Long-Lived
Assets (“ASC 360”), the Company periodically reviews the carrying value of its long-lived assets, such as property,
equipment, and definite lived intangible assets, to test whether current events or circumstances indicate that such carrying value may
not be recoverable. When evaluating assets for potential impairment, the Company compares the carrying value of the