bioAffinity Technologies(US:BIAF)2024-05-15 14:53Financial Performance - Net revenue for the three months ended March 31, 2024, was $2,406,391, compared to $921 for the same period in 2023, representing a significant increase[78] - Total operating expenses for the same period were $4,351,621, up from $1,558,891 in 2023, indicating a rise of approximately 179%[78] - The net loss for the three months ended March 31, 2024, was $1,961,815, compared to a net loss of $1,532,790 in 2023, reflecting an increase in losses[78] - For the three months ended March 31, 2024, the net loss was $1,961,815, compared to a net loss of $1,532,790 for the same period in 2023, representing an increase of approximately 28%[80] - The company reported a total cash used in operating activities of $2,345,975 for the three months ended March 31, 2024, compared to $1,529,041 for the same period in 2023, reflecting a 53% increase[80] Assets and Liabilities - Cash and cash equivalents decreased to $2,453,165 as of March 31, 2024, down from $2,821,570 at December 31, 2023, a decline of about 13%[76] - Total assets as of March 31, 2024, were $8,049,266, a decrease from $8,221,552 at December 31, 2023, representing a reduction of approximately 2.1%[76] - Total liabilities decreased to $2,792,215 as of March 31, 2024, from $3,366,297 at December 31, 2023, indicating a decline of about 17%[76] - The company’s accumulated deficit increased to $(46,566,294) as of March 31, 2024, from $(44,604,479) at December 31, 2023[76] - The company’s total stockholders' equity increased to $5,257,051 as of March 31, 2024, from $4,855,255 at December 31, 2023, reflecting an increase of approximately 8.3%[76] Shareholder Information - The company reported a weighted average of 9,915,426 common shares outstanding for the three months ended March 31, 2024, compared to 8,433,689 in 2023, an increase of approximately 17.6%[78] - The balance of common shares outstanding increased from 8,463,052 as of March 31, 2023, to 11,216,491 as of March 31, 2024, marking an increase of approximately 32.7%[79] - The company issued 1,600,000 shares of Common Stock in a registered direct offering, generating aggregate gross proceeds of $2.5 million[133] - The company has authorized a total of 25,000,000 shares of Common Stock, with 11,514,354 shares issued as of March 31, 2024[119] Expenses - Research and development expenses for the three months ended March 31, 2024, were $393,639, compared to $369,617 in 2023, showing a slight increase of about 6.5%[78] - Stock-based compensation expense for the three months ended March 31, 2024, was $283,712, up from $157,613 in the same period of 2023, indicating an increase of about 80%[80] - Advertising expenses increased to $11,920 for the three months ended March 31, 2024, compared to $6,049 for the same period in 2023, reflecting a 97.5% increase[112] Acquisitions and Growth Strategy - The company completed an acquisition of Village Oaks for a total consideration of $3,500,000, which included $2.5 million in cash and 564,972 shares of common stock valued at $1 million[107] - Goodwill recognized from the acquisition of Village Oaks amounted to $1,404,000, reflecting the excess fair value after allocation to identifiable net assets[88] - The company recognized revenue from the CyPath Lung diagnostic test, which is expected to increase following the acquisition of Village Oaks Pathology Services[136] - The company is focused on developing proprietary noninvasive diagnostic tests for early-stage cancer detection, with its first product, CyPathLung, already offered for sale[82] - The company expects to continue incurring significant operating losses as it develops its diagnostic tests and advances them through clinical trials[136] Financial Risks - The company has significant cash balances that regularly exceed the federally insured limit of $250,000, which could impact its financial condition if access to these funds is restricted[111] - The company plans to expand its organization to accommodate potential growth and retain key personnel, which is critical for its operational strategy[95] Options and Warrants - The company had 8,838,717 warrants outstanding as of March 31, 2024, with a weighted average exercise price of $3.53[123] - The company exercised 64,848 options at an exercise price of $1.155, generating proceeds of $74,899 during the three months ended March 31, 2024[147] - As of March 8, 2024, there were 1,601,259 tradeable warrants and 2,704,554 non-tradeable warrants outstanding[151]