Quarterly report pursuant to Section 13 or 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
SCHEDULE OF PURCHASE PRICE AND PRELIMINARY PURCHASE PRICE ALLOCATIONS

The following table summarizes the purchase price and preliminary purchase price allocations relating to the Acquisition:

 

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

 

Assets        
Net working capital (including cash)   $ 1,167,000  
Property and equipment     326,000  
Other assets     8,000  
Customer relationships     700,000  
Trade names and trademarks     150,000  
Goodwill     1,149,000  
Total net assets   $ 3,500,000  
SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES

The following potentially dilutive securities have been excluded from the computations of weighted average shares of Common Stock outstanding as of September 30, 2023 and 2022, as they would be anti-dilutive:

 

    2023     2022  
   

As of September 30,

  
    2023     2022  
Shares underlying options outstanding     683,695       806,392  
Shares underlying warrants outstanding     4,649,952       4,624,952  
Shares underlying convertible notes     —       83,373  
Anti-dilutive securities     5,333,647       5,514,717  
SCHEDULE OF REVENUE RECOGNITION

 

    For three months ended September 30,  
    2023     2022  
    Net Revenue     Related Party1     Consolidated     Net Revenue     Related Party1     Consolidated  
                                     
Parent (bioAffinity Technologies):                                                
CyPath® Lung royalty income1   $ 5,412     $ (487 )   $ 4,925     $ 1,150       -     $ 1,150  
Laboratory services1     7,423       (1,265 )     6,158       -       -       -  
Dept. of Defense study     4,500       -       4,500       -       -       -  
Subsidiaries ((PPLS) and Controlling Interest Entity2:                                                
Patient fees     248,654       -       248,654       -       -       -  
Histology fees     31,854       -       31,854       -       -       -  
Medical director fees     2,392       -       2,393       -       -       -  
Total net revenue   $ 300,236     $ (1,752 )   $ 298,484     $ 1,150       -     $ 1,150

 

    For the nine months ended September 30,  
    2023     2022  
    Net Revenue     Related Party1     Consolidated     Net Revenue     Related Party1     Consolidated  
                                     
Parent (bioAffinity Technologies):                                                
CyPath® Lung royalty income1   $ 13,164     $ (487 )   $ 12,677     $ 2,457       -     $ 2,457  
Laboratory services1     10,500       (1,265 )     9,315       -       -       -  
Dept. of Defense study     14,250       -       14,250       -       -       -  
Subsidiaries (VOPS/PPLS)2:                                                
Patient fees     248,654       -       248,654       -       -       -  
Histology fees     31,854       -       31,854       -       -       -  
Medical director fees     2,393       -       2,393       -       -       -  
Total net revenue   $ 320,895     $ (1,752 )   $ 319,143     $ 2,457       -     $ 2,457

 

 

1 As of September 18, 2023 (date of the Acquisition), royalty and laboratory services income agreements are considered related parties and eliminated upon consolidation.
2 The three months ended revenue for PPLS and its controlling interest entity, Village Oaks, only recognizes partial period of September 19 through September 30, 2023.

SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE

Property and equipment are carried at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful life of the asset. Amortization of leasehold improvements is computed using the shorter of the lease term or estimated useful life of the asset. Additions and improvements are capitalized, while repairs and maintenance are expensed as incurred. Useful lives of each asset class are as follows:

 

SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE

Asset Category   Useful Life
Computer equipment   3-5 years
Computer software   3 years
Equipment   3-5 years
Furniture and fixtures   5-7 years
Vehicles   5 years
Leasehold improvements   Lesser of lease term or useful life
SCHEDULE OF INTANGIBLE ASSETS ADJUSTMENTS

Intangible assets, net of accumulated amortization, are summarized as follows as of September 30, 2023:

 

Description   Date Acquired   Useful Life   Cost     Amortization     Net  
Goodwill   9/18/2023       $ 1,148,553     $

—

     $ 1,148,553  
Trade names and trademarks   9/18/2023   18 years     150,000       (277 )     149,723  
Customer relationships   9/18/2023   14 years     700,000       (1,666 )     698,334  
Total Intangible Assets   $ 1,998,553     $ (1,943 )   $ 1,996,610