Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 70

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 19
Chunk 70
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 that have finite useful lives are measured at cost less
accumulated amortization and accumulated impairment losses. Intangible assets comprise of software, intellectual property, trademarks
and web domains and distribution rights, which are amortized on a straight-line basis over 3 years. The Company’s system software
is amortized on a declining balance basis at 20%. Amortization rates are reviewed annually to ensure they are aligned with estimates
of remaining economic useful lives of the associated intangible assets.

  Equipment  
 ─────────────

Equipment
acquired by the Company is recorded at cost on the date of acquisition. Equipment is stated at historical cost less accumulated amortization
and accumulated impairment losses. Amortization is calculated on a declining balance method over their estimated useful lives. The Company’s
system hardware is amortized at 55 20

Avricore
Health Inc.

Notes
to the Consolidated Financial Statements

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

(Expressed
in Canadian Dollars)

  SUMMARY                                      
  OF MATERIAL ACCOUNTING POLICIES (continued)  
 ───────────────────────────────────────────────

  Share-based  
  payments     
 ───────────────

The
Company operates an incentive share purchase option plan. Share-based payments to employees are measured at the fair value of the instruments
issued and amortized over the vesting periods. Share- based payments to non-employees are measured at the fair value of goods or services
received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably
measured, and are recorded at the date the goods or services are received. The corresponding amount is recorded to the option reserve.
The fair value of options is determined using the Black-Scholes option pricing model, which incorporates all market vesting conditions.
The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized
for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually
vest.

  Share    
  capital  
 ───────────

Proceeds
from the exercise of stock options and warrants are recorded as share capital in the amount for which the option or warrant enabled the
holder to purchase a share in the Company. Any previously recorded share-based payment related to the options or warrants exercised included
in reserves is transferred to share capital on the exercise of options