Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 62

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 19
Chunk 62
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 extensive and
required a high degree of auditor judgment.

How
the Critical Audit Matter was Addressed in the Audit

We
responded to this matter by performing the following procedures:

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Impairment
of Equipment

Critical
Audit Matter Description

We
draw your attention to Notes 3(l) and 6 of the financial statements. During
the year, management determined that the agreement with the Company’s major customer would not be renewed and expired on March
31, 2025. The loss of this major customer was expected to significantly impact the Company’s revenue and financial position in
the near term. As a result, the Company performed an impairment test and recognized an impairment of $772,174. Significant
judgment is exercised by the Company in performing its impairment assessment and significant assumptions are used in the impairment test,
and include the following:

  The                                                                                                                                 
  The                                                                                                                                 

  53  

  The                                                                                                                                

Given
these factors, the related audit effort in evaluating management’s judgments in determining the impairment recognized and the carrying
value of equipment as of December 31, 2024 was significant and required a high degree of auditor judgment.

How
the Critical Audit Matter was Addressed in the Audit

We
responded to this matter by performing the following procedures:

  We                                                                                                                                     
  We                                                                                                                                     
  We                                                                                                                                     
  We                                                                                                                                     

/s/Manning Elliott LLP

CHARTERED
PROFESSIONAL ACCOUNTANTS

Vancouver,
Canada

April
30, 2025

PCAOB
ID: 1524

We
have served as the Company’s auditor since 2020.

  54  

Avricore
Health Inc.

Consolidated
Statements of Financial Position

(Expressed
in Canadian Dollars)

                                                  Note                                      
 ────────────────────────────────────────────────────────────────────────────────────────────
  ASSETS                                                                                    
  Current Assets                                                                            
  Cash and cash equivalents                                    1,132,392           276,571  
  Term deposit                                                    10,000            10,000  
  Accounts receivable                                4           419,587           427,689  
  Prepaid expenses and deposits                      5            20,470            38,625  
  Inventory                                                          507            20,676  
  Current assets                                               1,582,956           773,561  
  Equipment