bioAffinity Technologies, Inc. - What You Need to Know

Thinking about investing in bioAffinity Technologies? It is exciting to look at new biotech companies, but you need to cut through the technical jargon to understand what is actually happening. Here is the breakdown in plain English.

1. What does this company do?

BioAffinity is a cancer diagnostics company. Their main product, CyPath® Lung, helps doctors find lung cancer earlier and more accurately. Instead of an invasive biopsy, they test a patient’s sputum (the mucus you cough up). They use unique technology to label cells in that sample, acting as an early warning system for patients at high risk of lung cancer.

2. How do they make money and are they growing?

BioAffinity is in the early stages of selling its products. They earn money by performing lab tests at their own facility, Precision Pathology Services (PPS), which they bought in September 2023.

The Financial Reality: They generated about $9.4 million in revenue in 2024, up from $2.5 million in 2023. However, they are still losing money. They reported a $9.0 million loss for 2024. Their expenses come from running the lab, research, and the high costs of convincing doctors to use their test.

3. What is happening with this new stock offering?

The company is raising money through a new offering. Here is the fine print you should know:

• The Price: They are selling units for $0.32 each. Each unit includes one share of stock and a warrant to buy another share at $0.352, which expires in May 2025.
• No "Safety Net": This is a "best efforts" offering with no minimum goal. If they do not sell enough shares to fund their plans, they keep whatever money they raised, and you do not get a refund. You could be investing in a company that still lacks the cash to reach its goals.
• Management Control: The company has broad freedom on how to spend this money. While they plan to use it for daily operations and lab expansion, they are not locked into a specific budget. Management has significant flexibility in how they spend your capital.

4. What are the main risks?

• The "Going Concern" Warning: Auditors have expressed doubt about the company’s ability to stay in business. Without this new cash, the company only has enough money to operate through May 2025. They must constantly raise more money just to keep the doors open.
• The "Newbie" Lab Risk: They only started running their own lab in September 2023. Aside from their COO, the team has limited experience running a high-volume diagnostic facility. If they cannot attract enough doctors or manage lab costs, their business model may fail.
• The Dilution Trap: The company has millions of potential shares waiting in the wings from warrants and options. If these are used, your ownership percentage will shrink. Also, the board can issue more stock at any time without asking for your approval.
• Operational Hurdles: They rely on one lab. If that lab is damaged, loses its certification, or faces regulatory issues, their entire revenue stream could stop immediately.

5. Who is running the company?

Maria Zannes has served as President and CEO since 2014. With a background in law and business, she has led the company’s transition from a research firm to a commercial diagnostic provider. The company didn't provide much additional detail about the broader management team's specific experience in scaling diagnostic labs in their recent filings.

Disclaimer: I am an AI, not a financial advisor. This is a high-risk, speculative investment. The company is losing money and needs more cash to survive. The "going concern" warning means your investment could be lost if the company fails to raise more money or gain market traction. Never invest money you cannot afford to lose, and always read the official "Prospectus" (the 424B4 filing) on the SEC website before making a decision.