bioAffinity Technologies(BIAF) - 2024 Q3 - Quarterly Report

Financial Performance - Net revenue for the three months ended September 30, 2024, was $2,350,386, a significant increase from$298,484 in the same period of 2023, representing a growth of approximately 687%[5] - Total operating expenses for the three months ended September 30, 2024, were $4,324,250, compared to$2,592,988 in the same period of 2023, reflecting an increase of about 67%[5] - The net loss for the three months ended September 30, 2024, was $2,000,840, a decrease from a net loss of$2,290,884 in the same period of 2023, indicating an improvement of approximately 13%[5] - The company reported a net loss of approximately $6.07 million for the nine months ended September 30, 2024, compared to a net loss of$5.56 million for the same period in 2023, indicating an increase in losses of about 9.2%[25] - Total net revenue for the nine months ended September 30, 2024, was $7,154,429, a significant increase from$319,143 in the prior year[49] Assets and Liabilities - Total assets decreased from $8,221,552 to$6,552,014, a reduction of approximately 20.3%[12] - Current liabilities increased from $2,247,829 to$2,491,164, an increase of about 10.8%[13] - Stockholders' equity decreased from $4,855,255 to$3,121,025, a decline of approximately 35.7%[15] - Non-current liabilities increased from $3,366,297 to$3,430,989, an increase of about 1.9%[14] - Cash and cash equivalents at the end of the reporting period were approximately $0.76 million, down from$2.82 million at the beginning of the period[23] Expenses - Research and development expenses for the three months ended September 30, 2024, were $274,497, down from$330,376 in the same period of 2023, showing a reduction of about 17%[5] - Selling, general, and administrative expenses increased to $2,364,592 for the three months ended September 30, 2024, from$2,023,917 in the same period of 2023, marking an increase of approximately 17%[5] - The company incurred approximately $811,000 in acquisition costs related to the Village Oaks acquisition[38] - The company incurred advertising expenses of$232,396 for the nine months ended September 30, 2024, compared to $42,947 for the same period in 2023[42] Shareholder Information - The weighted average common shares outstanding increased to 12,391,867 for the three months ended September 30, 2024, compared to 8,696,554 in the same period of 2023, representing an increase of about 42$2,950,000 in additional paid-in capital[17] Acquisitions and Investments - The company completed the acquisition of Village Oaks Pathology Services for a total consideration of $3.5 million, which included$2.5 million in cash and 564,972 shares of common stock valued at $1 million[35] - The acquisition resulted in the recognition of goodwill amounting to$1.4 million, which is not deductible for tax purposes[37] - The company formed a new subsidiary, Precision Pathology Laboratory Services, LLC, to enhance its diagnostic capabilities by acquiring assets from Village Oaks Pathology Services[28] Market and Product Development - The company is focused on developing noninvasive diagnostic tests for early-stage cancer, with its first product, CyPathLung, aimed at lung cancer detection[27] - The company announced that its CyPathLung test will be added to the U.S. Federal Supply Schedule, potentially providing access to 9.1 million Veterans annually[94] - The company received a Japanese patent for the CyPath Lung diagnostic test, adding to its portfolio of 17 awarded patents and 30 pending applications related to its diagnostic platform[97] Financial Risks and Future Outlook - The company faces various risks including funding for operations and regulatory approvals for diagnostic tests[6] - Future operations depend on successful clinical trials and market acceptance of diagnostic tests[6] - The company may need to raise further capital through various means if revenue from operations does not significantly increase[31] - The company has significant cash balances exceeding the federally insured limit of $250,000, which poses a risk to its financial condition[41] Cash Flow and Financing Activities - The company reported a net cash used in operating activities of approximately$5.59 million for the nine months ended September 30, 2024, compared to $4.42 million for the same period in 2023, representing an increase of about 26.5$3.6 million, primarily from the issuance of common stock and exercised stock options[22] - The company raised $2.3 million in cash through a registered direct offering and concurrent private placement on October 21, 2024, to support its operations[31]