Company: BIAF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010787
Chunk: 66

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 66
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 losses and negative cash flows for the foreseeable future.
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 condensed consolidated financial statements.

Prior to acquisition of the clinical pathology laboratory
by PPLS, Village Oaks, under the trade name Precision Pathology Services, had licensed and developed CyPath® Lung as a
laboratory developed test (“LDT”) for sale to physicians. The license agreement provided that revenues from the sale would
be split evenly between the Company and Village Oaks. In the second quarter of 2022, prior to the acquisition, we started to recognize
revenue as part of a limited beta market testing program of the CyPath® Lung test. We have never been profitable, and as
of March 31, 2025, we had a working capital deficit of approximately $1.6 million and an accumulated deficit of approximately $56.3 million.
We expect to continue to incur significant operating losses for the foreseeable future as we continue the development of our diagnostic
tests and advance our diagnostic tests through clinical trials.

We anticipate raising additional cash needed through
the private or public sales of equity or debt securities, collaborative arrangements, or a combination thereof to continue to fund our
operations and develop our products. There is no assurance that any such collaborative arrangement will be entered into or that financing
will be available to us when needed in order to allow us to continue our operations or, if available, on terms acceptable to us. If we
do not raise sufficient funds in a timely manner, we may be forced to curtail operations, delay our clinical trials, cease operations
altogether, or file for bankruptcy.

19

Results of Operations

Three Months Ended March 31, 2025, Compared
to Three Months Ended March 31, 2024

Net loss for the three months ended March 31, 2025,
was approximately $2.7 million, compared to a net loss of approximately $2.0 million for the three months ended March 31, 2024.

Revenue

Since acquisition of the clinical pathology laboratory
on September 19, 2023, additional revenue streams have been consolidated. PPLS generates three sources of revenue: (1) patient service
fees, (2) hist