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bioAffinity Technologies(BIAF) - 2024 Q2 - Quarterly Report

Financial Performance - Net revenue for Q2 2024 was 2,397,652,asignificantincreasefrom2,397,652, a significant increase from 19,738 in Q2 2023, representing a growth of approximately 12,100%[11] - Total operating expenses for Q2 2024 were 4,485,450,comparedto4,485,450, compared to 1,798,088 in Q2 2023, indicating an increase of about 149%[11] - The net loss for Q2 2024 was 2,110,279,comparedtoanetlossof2,110,279, compared to a net loss of 1,740,173 in Q2 2023, reflecting an increase in losses of approximately 21%[11] - For the six months ended June 30, 2024, the net loss was 4,072,094,comparedtoanetlossof4,072,094, compared to a net loss of 3,272,963 for the same period in 2023, indicating an increase in losses of approximately 24%[16] - The Company reported total net revenue of 4,804,043forthesixmonthsendedJune30,2024,comparedto4,804,043 for the six months ended June 30, 2024, compared to 20,659 for the same period in 2023[36] - Total net revenue for the three months ended June 30, 2024, was 2,397,652,comparedto2,397,652, compared to 19,738 for the same period in 2023, reflecting a significant increase due to the acquisition of Precision Pathology Laboratories Services, LLC[45] Expenses and Losses - Research and development expenses rose to 402,433inQ22024from402,433 in Q2 2024 from 335,125 in Q2 2023, marking an increase of about 20%[11] - Selling, general, and administrative expenses increased to 2,472,775inQ22024,upfrom2,472,775 in Q2 2024, up from 1,404,917 in Q2 2023, which is an increase of approximately 76%[11] - Stock-based compensation expense for the six months ended June 30, 2024, was 569,907,comparedto569,907, compared to 327,868 for the same period in 2023, showing an increase of approximately 73.8%[16] - The company recognized advertising expenses of 131,125forthesixmonthsendedJune30,2024,upfrom131,125 for the six months ended June 30, 2024, up from 27,741 for the same period in 2023[29] - The company incurred total lease costs of 148,394forthethreemonthsendedJune30,2024,comparedto148,394 for the three months ended June 30, 2024, compared to 30 for the same period in 2023, indicating a substantial increase[60] Cash Flow and Financial Position - Cash used in operating activities for the six months ended June 30, 2024, was 3,878,400,comparedto3,878,400, compared to 2,888,990 for the same period in 2023, representing an increase of about 34.4%[16] - As of June 30, 2024, the company had cash and cash equivalents of 801,311,adecreasefrom801,311, a decrease from 8,279,182 at the end of the same period in 2023[16] - The total cash balance at June 30, 2024, was 9,875,202,downfrom9,875,202, down from 10,911,736 at December 31, 2023[12] - The Company has significant cash balances that regularly exceed the federally insured limit of 250,000,posingarisktoitsfinancialcondition[28]TheCompanyincurredanaccumulateddeficitofapproximately250,000, posing a risk to its financial condition[28] - The Company incurred an accumulated deficit of approximately 48.7 million as of June 30, 2024, with cash and cash equivalents of approximately 0.8million[21]ShareholderEquityandStockActivityThecompanyreportedaweightedaverageof11,389,308commonsharesoutstandinginQ22024,comparedto8,520,714inQ22023,indicatingagrowthofabout340.8 million[21] Shareholder Equity and Stock Activity - The company reported a weighted average of 11,389,308 common shares outstanding in Q2 2024, compared to 8,520,714 in Q2 2023, indicating a growth of about 34%[11] - The Company has authorized a total of 100,000,000 shares of Common Stock, increasing from 25,000,000 shares, with 11,752,178 shares issued as of June 30, 2024[66] - The company issued 1,600,000 shares of Common Stock and warrants to purchase an aggregate of 1,600,000 shares in a registered direct offering on March 8, 2024, with an exercise price of 1.64[72] - The company has 8,838,717 warrants outstanding with a weighted average exercise price of 3.53,comparedto4,649,952warrantsasofDecember31,2023,indicatinganincreaseofapproximately90.53.53, compared to 4,649,952 warrants as of December 31, 2023, indicating an increase of approximately 90.5%[71] Acquisitions and Subsidiaries - The company acquired substantially all assets of Village Oaks for a total consideration of 3.5 million, which included 2.5millionincashand564,972sharesofcommonstockvaluedat2.5 million in cash and 564,972 shares of common stock valued at 1 million[24] - The acquisition resulted in recognized goodwill of 1.404million,withtotalnetassetsacquiredamountingto1.404 million, with total net assets acquired amounting to 3.5 million[25] - The company formed a new subsidiary, Precision Pathology Laboratory Services, LLC, on August 14, 2023, to enhance its diagnostic capabilities[18] - The company’s first diagnostic test, CyPathLung, is aimed at the early detection of lung cancer, which is the leading cause of cancer-related deaths[17] Future Outlook and Risks - The cash burn rate and projected financial position are critical factors for future operations, as highlighted in the management's discussion[5] - Future revenue estimates and capital requirements are subject to various risks, including the success of clinical trials and market acceptance of products[5] - The ongoing geopolitical tensions and economic instability may impact the company's operations and financial projections[7] - The company expects to continue incurring losses and negative cash flows for the foreseeable future, raising substantial doubt about its ability to continue as a going concern[21] - The company plans to continue expanding its market presence and developing new products and technologies[9]