Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 68

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 19
Chunk 68
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  Revenue                  
  recognition (continued)  
 ───────────────────────────

The
Company determines the standalone selling price by considering its overall pricing objectives and market conditions. Significant pricing
practices taken into consideration include discounting practices, the size and volume of our transactions, our marketing strategy, historical
sales and contract prices. The determination of standalone selling prices is made through consultation with and approval by management,
taking into consideration our go-to-market strategy. As the Company’s go-to-market strategies evolve, the Company may modify its
pricing practices in the future, which could result in changes in relative standalone selling prices.

The
Company generally receives payment from its customers after invoicing within the normal 28-day commercial terms. If a customer is specifically
identified as a credit risk, recognition of revenue is deferred except to the extent of fees that have already been collected.

  Leases  
 ──────────

A
contract is, or contains, a lease if the contract conveys a lessee the right to control the use of lessor’s identified asset for
a period of time in exchange for consideration.

The
Company as a lessee

A
lease liability is recognized at the commencement of the lease term at the present value of the lease payments that are not paid at that
date. At the commencement date, a corresponding right-of-use asset is recognized at the amount of the lease liability, adjusted for lease
incentives received, retirement costs and initial direct costs. Depreciation is recognized on the right-of-use asset over the lease term.
Interest expense is recognized on the lease liabilities using the effective interest rate method and payments are applied against the
lease liability.

Key
areas where management has made judgments, estimates, and assumptions related to the application of IFRS 16 include:

  The                                                                                                
  incremental borrowing rates are based on judgments including economic environment, term,           
  currency, and the underlying risk inherent to the asset. The carrying balance of the right-of-use  
  assets, lease liabilities, and the resulting interest expense and depreciation expense, may        
  differ due to changes in the market conditions and lease term.                                     
 ─────────────────────────────────────────────────────────────────────────────────────────────────────
  Lease                                                                                              

The
Company as a lessor

A
lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of
an underlying asset. All other leases are classified as finance leases.