Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 71

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 19
Chunk 71
---
 or warrants. Share capital issued for non-monetary consideration
is valued at the closing market price at the date of issuance. The proceeds from issuance of units are allocated between common shares
and warrants based on the residual method. Under this method, the proceeds are allocated first to share capital based on the fair value
of the common shares at the time the units are issued and any residual value is allocated to the warrants reserve. Consideration received
for the exercise of warrants is recorded in share capital, and any related amount recorded in warrants reserve is transferred to share
capital.

  Income            
  (loss) per share  
 ────────────────────

Basic
income (loss) per share is calculated by dividing the net income (loss) available to common shareholders by the weighted average number
of shares outstanding during the year. Diluted earnings per share reflect the potential dilution of securities that could share in earnings
of an entity. In a loss year, potentially dilutive common shares are excluded from the loss per share calculation as the effect would
be anti-dilutive. Basic and diluted income (loss) per share are the same for the periods presented.

  Income  
  taxes   
 ──────────

Income
tax expense, consisting of current and deferred tax expense, is recognized in the statements of operations. Current tax expense is the
expected tax payable on the taxable income for the period, using tax rates enacted or substantively enacted at period-end, adjusted for
amendments to tax payable with regard to previous years.

Deferred
tax assets and liabilities and the related deferred income tax expense or recovery are recognized for deferred tax consequences attributable
to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred
tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized
or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income (loss) in
the period that substantive enactment occurs.

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)  
 ───────────────────────────────────────────────

  Income             
  taxes (continued)  
 ─────────────────────

A
deferred tax asset is recognized to the extent that