Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 85

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 19
Chunk 85
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 will incur difficulties meeting its financial obligations as they are due. The Company’s approach
to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due, under
both normal and stressed conditions without incurring unacceptable losses or risking harm to the Company’s reputation. Liquidity
risk has been assessed as moderate.

The
Company monitors its spending plans, repayment obligations and cash resources, and takes actions with the objective of ensuring that
there is sufficient capital in order to meet short-term business requirements. To facilitate its expenditure program, the Company raises
funds primarily through public equity financing. Please refer to note 13 to these consolidated financial statements regarding the Company’s
strategy to raise the funds through equity.

Contractual
undiscounted cash flow requirements for financial liabilities as at December 31, 2024 are as follows:

SUMMARY
OF CONTRACTUAL UNDISCOUNTED CASH FLOW FINANCIAL LIABILITIES

                             Carrying                   Contractual                   Within                   1          
                             value                      Cash flows                    1 year                   - 5 Years  
                             $                          $                             $                        $          
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Trade                                    195,765                       195,765                  195,765                 
  Total                                    195,765                       195,765                  195,765                 

  Market  
  risk    
 ──────────

Market
risk for the Company consists of currency risk and interest rate risk. The objective of market risk management is to manage and control
market risk exposure within acceptable limits, while maximizing returns.

Currency
risk

Foreign
currency risk is the risk that the fair value or future cash flows will fluctuate as a result of changes in foreign exchange rates. As
all of the Company’s purchases and sales are denominated in Canadian dollars, and it has no significant cash balances denominated
in foreign currencies, the Company is not exposed to foreign currency risk at this time.

Interest
rate risk

Interest
rate risk is the risk that fair values or future cash flows will fluctuate as a result of changes in market interest rates. In respect
of financial assets, the Company’s policy is to invest cash at fixed interest rates and cash reserves are to be maintained in cash
equivalents in order to maintain liquidity, while achieving a satisfactory return for shareholders. The Company is not exposed to significant
interest rate risk.

  Fair                             
  values of