Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 84

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 19
Chunk 84
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5,719,000  
  Total                               6,450,000        6,172,000        6,121,000  
  Unrecognized                      ( 6,450,000      ( 6,172,000      ( 6,121,000  
  Deferred                                    -                -                   

  17.      FINANCIAL                                  
           INSTRUMENTS AND FINANCIAL RISK MANAGEMENT  
 ──────────────────────────────────────────────────────

The
Company’s financial instruments include cash and cash equivalents, term deposit, accounts receivable, accounts payable and loans
payable. The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor risks and adherence to market conditions and the Company’s activities. The
Company has exposure to credit risk, liquidity risk and market risk as a result of its use of financial instruments.

This
note presents information about the Company’s exposure to each of the above risks and the Company’s objectives, policies
and processes for measuring and managing these risks. Further quantitative disclosures are included throughout the consolidated financial
statements. The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management
framework. The Board has implemented and monitors compliance with risk management policies.

a)
Credit risk

Credit
risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations and arises primarily from the Company’s cash and cash equivalents and accounts receivable. The Company’s cash
and cash equivalents are held through a large Canadian financial institution. The Company does not have financial assets that are invested
in asset-backed commercial paper.

The
Company performs ongoing credit evaluations of its accounts receivable but does not require collateral. The Company establishes an allowance
for expected credit losses based on the credit risk applicable to particular customers and historical data.

Approximately 97 99

Avricore
Health Inc.

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024, 2023 and 2022

(Expressed
in Canadian Dollars)

  17.      FINANCIAL                                              
           INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (continued)  
 ──────────────────────────────────────────────────────────────────

  Liquidity  
  risk       
 ─────────────

Liquidity
risk is the risk that the Company