Company: BIAF
Filing Date: 2025-09-24
Form Type: S-1
Source: 0001493152-25-014730
Chunk: 40

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-09-24
Form: S-1
Chunk 40
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. Holders should consult with their own tax advisors regarding the potential application of the PFIC rules to the ownership and disposition of Common Units, Pre-Funded Units, Common Stock, Pre-Funded Warrants, Common Stock Purchase Warrants, or Warrant Shares and the availability of certain U.S. tax elections under the PFIC rules.

U.S. Federal Income Tax Consequences of the Exercise and Disposition of Common Stock Purchase Warrants

The following discussion describes the general rules applicable to the ownership and disposition of the Common Stock Purchase Warrants but is subject in its entirety to the special rules described above under the heading “ Passive Foreign Investment Company Rules”.

Exercise of Common Stock Purchase Warrants

A U.S. Holder should not recognize gain or loss on the exercise of a Common Stock Purchase Warrant and related receipt of a Warrant Share (unless cash is received in lieu of the issuance of a fractional Warrant Share). A U.S. Holder’s initial tax basis in the Warrant Share received on the exercise of a Warrant should be equal to the sum of (a) such U.S. Holder’s tax basis in such Common Stock Purchase Warrant plus (b) the exercise price paid by such U.S. Holder on the exercise of such Common Stock Purchase Warrant. It is unclear whether a U.S. Holder’s holding period for the Warrant Share received on the exercise of a Common Stock Purchase Warrant would commence on the date of exercise of the Common Stock Purchase Warrant or the day following the date of exercise of the Common Stock Purchase Warrant. If we are a PFIC, a U.S. Holder’s holding period for the Warrant Share for PFIC purposes will begin on the date on which such U.S. Holder acquired its Common Stock.

In certain limited circumstances, a U.S. Holder may be permitted to undertake a cashless exercise of Common Stock Purchase Warrants into Warrant Shares. The U.S. federal income tax treatment of a cashless exercise of Common Stock Purchase Warrants into Warrant Shares is unclear, and the tax consequences of a cashless exercise could differ from the consequences upon the exercise of a Common Stock Purchase Warrant described in the preceding paragraph. U.S. Holders should consult their own tax advisors regarding the U.S. federal income tax consequences of a cashless exercise of Common Stock Purchase Warrants.

Disposition of Common Stock Purchase Warrant

A U.S. Holder will recognize gain or loss on the sale or other taxable disposition of a Common Stock Purchase Warrant in an amount equal to the