Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 75

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 19
Chunk 75
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 date. The estimate of warrant and option valuation also requires
determining the most appropriate inputs to the valuation model, including the volatility, expected life of warrants and options, risk
free interest rate and dividend yield. Management must also make significant judgments or assessments as to how financial assets and
liabilities are categorized.

Estimation
of useful lives of equipment and software

Amortization
of equipment and software is dependent upon estimates of their useful lives. The useful lives of the assets are assessed annually and
may vary from previous estimates depending on a number of factors. In reassessing asset lives, factors such as technological innovation,
product lifecycles, maintenance, and fair value of equipment are taken into account.

Recoverable
amounts of equipment

The
carrying amount of the Company’s equipment and intangible assets is reviewed at each financial reporting date to determine whether
there is any indication of impairment. If such indication exists, the recoverable amount of the asset is estimated in order to determine
the extent of the impairment loss. An impairment loss is recognized when the carrying amount of an asset or its cash generating unit
exceeds its recoverable amount. Impairment losses are recognized in profit or loss for the period.

Judgements

Significant
judgments used in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements
are as follows:

Revenue
recognition

Revenue
is recognized when the revenue recognition criteria expressed in the accounting policy stated above have been met. Judgment may be required
when allocating revenue or discounts on sales amongst the various elements in a sale involving multiple deliverables.

Indicators
of impairment

Indicators
of impairment include observable declines in market value, significant negative changes in the technological, market, economic, or legal
environment and increases in market interest rates. Judgement is required to determine the recoverable amount which is the higher of
an assets fair value less costs of disposition and its value in use.

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)  
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  Significant                                     
  accounting estimates and judgments (continued)  
 ──────────────────────────────────────────────────

Deferred
income taxes

Tax
interpretations, regulations and legislation in the