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BIAF Stock Rises Post Q1 Earnings Despite Revenue Decline
BIAFbioAffinity Technologies(BIAF) ZACKS·2025-05-20 17:15

Core Insights - bioAffinity Technologies, Inc. (BIAF) reported a revenue decline of 22.9% year-over-year for Q1 2025, totaling 1.9million,primarilyduetochangesinrevenuecontributionsfromvariousservices[2]−Despitetherevenuedrop,thenetlosspershareimprovedto1.9 million, primarily due to changes in revenue contributions from various services [2] - Despite the revenue drop, the net loss per share improved to 0.16 from 0.20inthepreviousyear,althoughtheabsolutelossincreasedto0.20 in the previous year, although the absolute loss increased to 2.7 million from 1.9millionduetoahighersharecount[2]−Thecompany′sflagshipdiagnostic,CyPathLung,experiencedasignificantsalesincreaseof2761.9 million due to a higher share count [2] - The company's flagship diagnostic, CyPath Lung, experienced a significant sales increase of 276% year-over-year, indicating strong market acceptance and operational scaling [3] - Management is implementing strategic changes, including discontinuing low-margin services and cutting costs, expected to save approximately 3.8 million annually [4] - The company ended the quarter with 0.4millionincashbuthassinceraised0.4 million in cash but has since raised 1.4 million through warrant exercises and 3.3millionviaapublicofferingtosupportcommercializationandclinicaldevelopment[7]−bioAffinityreceivedacceptanceofapatentapplicationforCyPathLungfromtheAustralianPatentOffice,enhancingitsinternationalcommercializationpotential[9]FinancialPerformance−RevenuesforQ12025were3.3 million via a public offering to support commercialization and clinical development [7] - bioAffinity received acceptance of a patent application for CyPath Lung from the Australian Patent Office, enhancing its international commercialization potential [9] Financial Performance - Revenues for Q1 2025 were 1.9 million, down from 2.4millioninQ12024[2]−Operatingexpensesincreasedby2.92.4 million in Q1 2024 [2] - Operating expenses increased by 2.9% to 4.5 million, while direct costs declined by 13.1% to 1.4 million [2] - R&D expenses fell by 6.7% to 367,386, but clinical development expenses rose sharply from 48,960to48,960 to 138,353 [2] Strategic Initiatives - The company is focusing on commercial execution and operational changes to support CyPath Lung's growth [5] - Recent enhancements in test processing increased data acquisition throughput by 50% and reduced per-test costs by over 25% [6] - Management's strategic pivot aims to concentrate resources on high-margin diagnostics while improving overall profitability [4] Market Position and Future Outlook - The company did not provide forward-looking financial guidance but indicated a continued focus on expanding CyPath Lung's market presence [8] - The strong demand for CyPath Lung is supported by over 600 tests delivered in 2024, with continued momentum into 2025 [3]