Company: BIAF
Filing Date: 2025-04-22
Form Type: 424B3
Source: 0001641172-25-005598
Chunk: 44

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-04-22
Form: 424B3
Chunk 44
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 planned, and some of its internal systems may need to be enhanced or
replaced. If we cannot effectively manage PPLS’ expanding operations and its costs, we may not be able to grow effectively or we
may grow at a slower pace, and our business could be adversely affected.

Billing for PPLS’ services is complex, and PPLS must dedicate substantial time and resources to the billing process to be paid.

Billing for clinical laboratory services is complex,
time consuming and expensive. Depending on the billing arrangement and applicable law, PPLS bills various payors, including Medicare,
insurance companies, and patients, all of which have different billing requirements. It generally bills third-party payors for its diagnostic
assays and pursues reimbursement on a case-by-case basis where pricing contracts or Medicare reimbursement is not in place. To the extent
laws or contracts require it to bill patient co-payments or co-insurance, PPLS must also comply with these requirements. PPLS may also
face increased risk in its collection efforts, including potential write-offs of doubtful accounts and long collection cycles, which could
adversely affect its business, results of operations, and financial condition.

Several factors make the billing process complex,
including:

| ● | the reimbursement rates of payors;                                                                                                                         |
| ● | compliance with complex federal and state regulations related to billing Medicare;                                                                         |
| ● | risk of government audits related to billing Medicare;                                                                                                     |
| ● | disputes among payors as to which party is responsible for payment;                                                                                        |
| ● | differences in coverage and in information and billing requirements among payors, including the need for prior authorization and/or advanced notification; |
| ● | the effect of patient co-payments or co-insurance;                                                                                                         |
| ● | changes to billing codes and/or coverage policies that apply to PPLS’ assays;                                                                              |
| ● | incorrect or missing billing information; and                                                                                                              |
| ● | the resources required to manage the billing and claims appeals process.                                                                                   |

PPLS uses standard industry billing codes, known as
Current Procedural Terminology (“CPT”) codes, to bill for its diagnostic assays. These codes can change over time. When codes
change, there is a risk of an error being made in the claim adjudication process. These errors can occur with claims submission, third-party
transmission, or in the processing of the claim by the payor. Claim adjudication errors may result in a delay in payment processing or