Avricore Health Inc. (AVCRF)

Avricore Health Inc. operates in the point-of-care testing (POCT) market, a segment of the broader healthcare industry. The global POCT market is projected to reach $93.21 billion USD by 2030 ¹. The Company's flagship offering, HealthTab™, is a cloud-based network technology that enables the world's first harmonized, real-time response system where consumers receive a finger-stick blood test at their local pharmacy via a web-enabled clinical grade blood chemistry analyzer, with results available in 12 minutes ². The platform provides lab-accurate results for specific blood work within 12 minutes ³, and patients can access up to 27 bio-markers ⁴. The community pharmacy sector is described as underutilized, with pharmacies facing reduced revenues due to sector disruptions and regulatory changes, leading pharmacy owners to seek innovations like HealthTab™ to support business growth beyond the traditional dispensing model ⁵. The Company sees a significant trend toward consumer point-of-care testing, with healthcare data capture, analysis, and delivery to consumers being a top market priority ⁶. In the UK, there are nearly 12,000 pharmacies, and more than half are participating in POCT blood-pressure screening, conducting approximately 250,000 screenings per month ⁷. The NHS has one of the lowest family doctors to patient ratios in decades, with one GP responsible for almost 2300 patients on average ⁸. Only about 7% of UK pharmacies are profitable ⁹. In Canada, there are more than 10,000 pharmacies, in the US 88,000 pharmacies, and in the UK nearly 12,000 ¹⁰. Nearly 13.6 million Canadians are expected to be diabetic or prediabetic by 2030 ¹¹. Over 1 in 3 Americans, approximately 88 million people, have pre-diabetes ¹². Close to 160,000 Canadians 20 years and older are diagnosed with heart disease each year ¹³.

The Company faces competition from alternative POCT platforms, and although competition is currently limited, competitors may emerge offering alternative platforms ¹⁴. The Company will be competing with companies that are potentially already entrenched in some markets or may be better funded ¹⁵. The Company's competitive advantages include its HealthTab™ platform's ability to provide lab-accurate results in 12 minutes ¹⁶, its integration with NHS digital pathways ¹⁷, and its collaborations with healthcare organizations such as UCL Partners, Barts Health NHS Trust, and the British Heart Foundation ¹⁸. The Company's HealthTab™ platform has been selected by a collaborative effort involving Barts Heart Centre, UCL Partners and HEART UK to assess the feasibility of community pharmacists in the UK providing cholesterol testing alongside blood pressure checks for cardiovascular risk evaluation ¹⁹. The Company is in late-stage discussions with other Canadian and international major pharmacy chains and has a strong prospect list for future expansion ²⁰. The Company's wholly-owned subsidiary, HealthTab Ltd, has entered into a formal multi-year collaboration agreement with Abbott, a global healthcare company, to supply and distribute Abbott's point-of-care testing products through the HealthTab™ platform in the UK ²¹. The agreement allows HealthTab to distribute Abbott's Afinion™ 2 Analyzer in NHS-linked pharmacies to test for HbA1c and lipid profiles ²².

Avricore Health Inc. generates revenue through its HealthTab™ point-of-care testing platform, which is deployed in community pharmacies. The Company's revenue is primarily derived from the sale of products and services related to the HealthTab™ platform. For the year ended December 31, 2025, revenue from continuing operations was $533,884 ²³, compared to $4,785,711 in 2024 ²⁴ and $3,485,147 in 2023 ²⁵. The Company's business model involves deploying HealthTab™ systems in pharmacies, where pharmacists administer tests and patients can access bio-markers. The Company also generates revenue from the sale of reagents, hosting and software services, shipping, quality control, and other services. The Company's primary customer segments are community pharmacies in Canada and the UK, and it has partnerships with pharmacy chains such as Shoppers Drug Mart and affiliated Loblaws locations in Canada, and NHS-linked pharmacies in the UK. The Company's platform creates value for stakeholders including pharmacies, patients, and healthcare systems by providing low-barrier access to point-of-care testing at the community pharmacy level ²⁶.

The Company's flagship product is HealthTab™, a turnkey point-of-care testing platform that provides lab-accurate results for specific blood work within 12 minutes ²⁷. The platform is installed at the pharmacy and administered by the attending pharmacist, allowing patients to quickly access up to 27 bio-markers ²⁸. HealthTab™ is a cloud-based network technology that enables a harmonized, real-time response system where consumers receive a finger-stick blood test at their local pharmacy via a web-enabled clinical grade blood chemistry analyzer ²⁹. The platform's bio-markers include key results related to heart, liver and kidney function, which are received via secure login and can be shared with healthcare teams ³⁰. De-identified data collected with consumer consent across the HealthTab™ network of analyzers can be shared with life-science companies and other research entities including the clinical research industry ³¹. The Company's property, plant and equipment consists of HealthTab™ systems deployed at pharmacy locations, comprised of system analyzers, system computer hardware and systems software ³². The Company has discontinued the manufacturing of OTC and generic drugs ³³.

During the year ended December 31, 2025, 38 HealthTab™ systems were operating in the UK as of December 1, 2025; 7 in North East London, and 6 in North Central London and 25 in additional locations outside London ³⁴. HealthTab™ is being deployed in a new pilot launched by Barts Health NHS Trust, in collaboration with UCL Partners and the British Heart Foundation (BHF), to deliver inclisiran cholesterol-lowering injections through community pharmacies ³⁵. HealthTab has gained meaningful traction within the NHS, including the screening of more than 3,500 patients in community pharmacies across North East and North Central London through a collaboration with Barts Health NHS Trust ³⁶. In an initial lipid-screening cohort of 556 patients, approximately one in five was identified as having elevated cardiovascular risk ³⁷. During an initial one-month pilot of HbA1c testing for diabetes screening, the Company completed 2,295 HbA1c tests across 57 locations, achieving a monthly per-location average 10 times higher than previously achieved in Canada ³⁸. On March 31, 2025 the Company concluded its operations with Shoppers Drug Mart and is redeployed its assets to support its expansion in the U.K. market ³⁹. The Company has staged over 700 analysers from Canada to the UK ⁴⁰. The Company's wholly-owned subsidiary, HealthTab Ltd, has entered into a formal multi-year collaboration agreement with Abbott ⁴¹. On June 16, 2026 the Company closed its non-brokered private placement for gross proceeds of $1,254,000 by issuing 25,080,000 units at $0.05 per unit ⁴². Each unit consists of one common share and one-half transferrable share purchase warrant, with each warrant entitling the holder to purchase one additional common share for a period of 2 years from the closing date at a price of $0.10 per common share ⁴³. The Company incurred a total of $91,494 of share issue costs, of which $54,600 was for finder fee, $27,355 was for fair value of issued 1,092,000 non-transferable finders warrants and the rest for other transaction costs ⁴⁴.

For the year ended December 31, 2025, revenue decreased by 89% year over year to $533,884 ⁴⁵ and gross profit decreased by 87% to $238,295 ⁴⁶. The Company recorded a comprehensive loss of $1,858,840 in 2025 ⁴⁷, compared to $669,024 in 2024 ⁴⁸. The net decrease in cash was $904,474 in 2025 ⁴⁹, compared to an increase of $855,821 in 2024 ⁵⁰. Cash used in operating activities was $789,933 in 2025 ⁵¹, compared to cash provided by operating activities of $1,004,615 in 2024 ⁵². Cash used in investing activities was $114,362 in 2025 ⁵³, compared to $205,347 in 2024 ⁵⁴. Cash provided by financing activities was $0 in 2025 ⁵⁵, compared to $56,600 in 2024 ⁵⁶. Cash and cash equivalents at December 31, 2025 were $227,918 ⁵⁷, compared to $1,132,392 at December 31, 2024 ⁵⁸. Working capital at December 31, 2025 was $192,772 ⁵⁹, compared to $1,252,139 at December 31, 2024 ⁶⁰. Share-based compensation for the year ended December 31, 2025 was $280,677 ⁶¹, compared to $541,164 in 2024 ⁶² and $703,612 in 2023 ⁶³.

The Company is implementing its strategy to grow HealthTab™ in the United Kingdom, a decision aligned with the region's robust healthcare market and significant investment in pharmacy-led services ⁶⁴. The Company has staged over 700 analysers from Canada to the UK ⁶⁵. The Company's wholly-owned subsidiary, HealthTab Ltd, has entered into a formal multi-year collaboration agreement with Abbott, a global healthcare company, to supply and distribute Abbott's point-of-care testing products through the HealthTab™ platform in the UK ⁶⁶. The agreement allows HealthTab to distribute Abbott's Afinion™ 2 Analyzer in NHS-linked pharmacies to test for HbA1c and lipid profiles ⁶⁷. The collaboration also establishes a structured framework for the continued expansion of point-of-care testing through community pharmacies ⁶⁸. The Company is also in late-stage discussions with other Canadian and international major pharmacy chains, and has a strong prospect list for future expansion ⁶⁹.

The UK market opportunity is driven by unprecedented UK government investment in UK pharmacy services. On May 29, 2026, the Department of Health and Social Care and NHS England announced a £340 million government-funded deal for community pharmacy in 2026–2027, agreed with Community Pharmacy England, which will roll out NHS-funded Independent Prescribing nationally from autumn 2026 ⁷⁰. The deal builds on the Pharmacy First service, which delivered over 3.3 million consultations between March 2025 and February 2026, up 43% year-over-year ⁷¹. On March 31, 2025, following a 6-week consultation, the Department of Health and Social Care announced an extra £617 million over 2 years to support community pharmacy, including fee increases for blood-pressure screening to identify undiagnosed hypertension ⁷². The NHS committed £645 million (approx. $1.1 billion CAD) to its Pharmacy First program in 2024 ⁷³. The NHS has mandated standardized electronic health records integration across all NHS services ⁷⁴. On October 11, 2024, the NHS Confederation released their report measuring return on investment (ROI) for healthcare expenditures, listing community based cardiovascular disease screening and prevention as one of the best ROI's at £7.52 per £1 and £9 for diabetes invested after five years ⁷⁵. There are nearly 12,000 pharmacies in the UK, and more than half are participating currently in POCT blood-pressure screening, conducting approximately 250,000 screenings per month ⁷⁶. The NHS announced findings of the rapid rise of strokes in people over 50, rising 55% in the last ten years ⁷⁷. Only about 7% of UK pharmacies are profitable ⁷⁸.

The Company's first HealthTab™ UK deployment in North East London pharmacies targets an area with significant cardiovascular disease burden and demonstrates the HealthTab™ platform's potential for rapid scaling ⁷⁹. In November 2024 the Company announced the first cholesterol testing location in North East London ⁸⁰. HealthTab™ is partnered with UCL Partners, an academic health science centre located in London, England, which is the largest academic health science centre in the world, treats more than 1.5 million patients each year, has a combined annual turnover of around £2 billion and includes around 3,500 scientists, senior researchers and consultants ⁸¹. HealthTab™ has integrated with NHS digital pathways, achieving data access objectives set out in current plans, and is continuing with further API connections ⁸². Cholesterol testing will expand to additional pharmacies in the coming months ⁸³. Avricore's HealthTab™ platform has been selected by a collaborative effort involving Barts Heart Centre, UCL Partners and HEART UK to assess the feasibility of community pharmacists in the UK providing cholesterol testing alongside blood pressure checks for cardiovascular risk evaluation ⁸⁴. The study aims to build on the success of over 930,000 blood pressure checks conducted in 6,000 pharmacies as part of an NHS initiative ⁸⁵. With NHS England allocating £645 million (approx. $1.1 billion CAD) to increase access to primary care in community pharmacy, HealthTab™ will support pharmacists in delivering vital support for chronic diseases ⁸⁶.

The Company's margin and cost outlook focuses on cost control and positive cash flows to ensure sustainable operations ⁸⁷. Management's focus is on expansion of the business to new markets, locations and jurisdictions; cost control and positive cash flows to ensure sustainable operations of the Company ⁸⁸. The Company will not be devoting resources to research, development and patents going forward, and is now focused on the growth of the POTC segment HealthTab™ ⁸⁹. The Company's operations have been financed through the issuance of common shares, and management anticipates that additional financings or capital requirements to fund the current commercial operations and working capital will be required to grow the business to the sustainable level ⁹⁰.

The Company's operational outlook includes the deployment of HealthTab™ systems in the UK and Canada. The Company has staged over 700 analysers from Canada to the UK ⁹¹. The Company's property, plant and equipment is HealthTab™ systems deployed at pharmacy locations, comprised of system analyzers, system computer hardware and systems software ⁹². The Company has discontinued the manufacturing of OTC and generic drugs ⁹³. The Company's operations involve information technology systems that process, transmit and store information about suppliers, customers, employees, and financial information ⁹⁴. The Company has implemented security measures to protect these systems ⁹⁵.

The Company's capital allocation priorities include funding the roll out of its HealthTab™ network, legal and accounting fees, the maintenance of its public listing and other expenses associated with running an operating business ⁹⁶. The Company may incur operating losses in future periods due to continuing expenses associated with the roll out of the Company's HealthTab™ network ⁹⁷. Even if the Company becomes operationally profitable, the Company will need to raise significant amounts of new funding to expand these activities ⁹⁸. At the time of this report, the Company has sufficient funds to continue the roll out of its HealthTab™ network but it may be unable to do so without securing further financing ⁹⁹. The Company believes that its cash on hand, the expected future cash inflows from the sale of its products, net proceeds from the closing of private placements and proceeds from loans, stock options and warrants exercised, if any, will be sufficient to finance the Company's working capital and operational needs for at least the next twelve to eighteen months ¹⁰⁰. The Company does not have any off-balance sheet arrangements ¹⁰¹. On June 16, 2026 the Company closed its non-brokered private placement for gross proceeds of $1,254,000 by issuing 25,080,000 units at $0.05 per unit ¹⁰². Each unit consists of one common share and one-half transferrable share purchase warrant, with each warrant entitling the holder to purchase one additional common share for a period of 2 years from the closing date at a price of $0.10 per common share ¹⁰³. The Company incurred a total of $91,494 of share issue costs, of which $54,600 was for finder fee, $27,355 was for fair value of issued 1,092,000 non-transferable finders warrants and the rest for other transaction costs ¹⁰⁴.

The Company faces structural headwinds including the risk of competition from alternative POCT platforms ¹⁰⁵. Although competition is currently limited, competitors may emerge offering alternative platforms, and the Company will be competing with companies that are potentially already entrenched in some markets or may be better funded ¹⁰⁶. There is a risk that the Company's intellectual property infringes upon the rights of other companies, which could lead to reduced revenues, reduced margins due to sanctions against the Company, outright withdrawal or prohibition of products or trademarks from the market and significant costs for legal defense against infringement claims, re-branding of products and revised marketing materials ¹⁰⁷. The Company is unaware of any infringement claims being made against the Company or its products or processes at the time of writing ¹⁰⁸. In the future, there can be no assurances that third parties will not assert infringement claims in the future or require the Company to obtain a license for the intellectual property rights of such third parties ¹⁰⁹. There can be no assurance that such a license, if required, will be available on reasonable terms or at all ¹¹⁰. If the Company does not obtain such a license, it could encounter delays in the roll out of the Company's HealthTab™ network ¹¹¹.

The Company's growth plan is subject to execution risks including the need to generate sufficient revenues and cash flow. The Company has no history of pre-tax profit and in the previous four years has had only limited annual revenues for most of the years it has been operating ¹¹². The Company sustained operating losses for each of its fiscal years and has sustained significant accumulated operating losses ¹¹³. The continued operation of the Company will be dependent upon its ability to generate operating revenues and to procure additional financing ¹¹⁴. Based upon current plans to introduce HealthTab™ into new markets in Canada and internationally, maintain the Company's public listing on the TSX-Venture Exchange and support the continued registration of its securities in the US, the Company may incur operating losses in future periods ¹¹⁵. These losses will occur because there are continuing expenses associated with the roll out of the Company's HealthTab™ network, legal and accounting fees, the maintenance of its public listing and other expenses associated with running an operating business ¹¹⁶. Even if the Company becomes operationally profitable, the Company will need to raise significant amounts of new funding to expand these activities ¹¹⁷. Also, the Company may not be successful in generating significant revenues in the future ¹¹⁸. At the time of this report, the Company has sufficient funds to continue the roll out of its HealthTab™ network but it may be unable to do so without securing further financing ¹¹⁹. The Company may not be successful in generating revenues or raising capital in the future ¹²⁰. Failure to generate revenues or raise capital could cause the Company to cease operations ¹²¹.

Management's message to shareholders emphasizes the Company's strategic focus on expanding HealthTab™ in the United Kingdom, a decision aligned with the region's robust healthcare market and significant investment in pharmacy-led services ¹³⁶. The Company has staged over 700 analysers from Canada to the UK ¹³⁷. The Company's wholly-owned subsidiary, HealthTab Ltd, has entered into a formal multi-year collaboration agreement with Abbott, a global healthcare company, to supply and distribute Abbott's point-of-care testing products through the HealthTab™ platform in the UK ¹³⁸. The agreement allows HealthTab to distribute Abbott's Afinion™ 2 Analyzer in NHS-linked pharmacies to test for HbA1c and lipid profiles ¹³⁹. The collaboration also establishes a structured framework for the continued expansion of point-of-care testing through community pharmacies ¹⁴⁰. Management's strategic priorities include expansion of the business to new markets, locations and jurisdictions; cost control and positive cash flows to ensure sustainable operations of the Company ¹⁴¹. The Company will not be devoting resources to research, development and patents going forward, and is now focused on the growth of the POTC segment HealthTab™ ¹⁴². The Company believes that its cash on hand, the expected future cash inflows from the sale of its products, net proceeds from the closing of private placements and proceeds from loans, stock options and warrants exercised, if any, will be sufficient to finance the Company's working capital and operational needs for at least the next twelve to eighteen months ¹⁴³. On June 16, 2026 the Company closed its non-brokered private placement for gross proceeds of $1,254,000 by issuing 25,080,000 units at $0.05 per unit ¹⁴⁴. Each unit consists of one common share and one-half transferrable share purchase warrant, with each warrant entitling the holder to purchase one additional common share for a period of 2 years from the closing date at a price of $0.10 per common share ¹⁴⁵. The Company incurred a total of $91,494 of share issue costs, of which $54,600 was for finder fee, $27,355 was for fair value of issued 1,092,000 non-transferable finders warrants and the rest for other transaction costs ¹⁴⁶.

For the year ended December 31, 2025, revenue from continuing operations was $533,884 ¹⁴⁷, compared to $4,785,711 in 2024 ¹⁴⁸ and $3,485,147 in 2023 ¹⁴⁹. The Company recorded a comprehensive loss of $1,858,840 in 2025 ¹⁵⁰, compared to $669,024 in 2024 ¹⁵¹. Gross profit decreased by 87% to $238,295 in 2025 ¹⁵². Cash used in operating activities was $789,933 in 2025 ¹⁵³, compared to cash provided by operating activities of $1,004,615 in 2024 ¹⁵⁴. Cash used in investing activities was $114,362 in 2025 ¹⁵⁵, compared to $205,347 in 2024 ¹⁵⁶. Cash provided by financing activities was $0 in 2025 ¹⁵⁷, compared to $56,600 in 2024 ¹⁵⁸. Cash and cash equivalents at December 31, 2025 were $227,918 ¹⁵⁹, compared to $1,132,392 at December 31, 2024 ¹⁶⁰. Working capital at December 31, 2025 was $192,772 ¹⁶¹, compared to $1,252,139 at December 31, 2024 ¹⁶². Share-based compensation for the year ended December 31, 2025 was $280,677 ¹⁶³, compared to $541,164 in 2024 ¹⁶⁴ and $703,612 in 2023 ¹⁶⁵. Marketing and communication expenses were $41,954 in 2025 ¹⁶⁶, compared to $49,932 in 2024 ¹⁶⁷ and $112,234 in 2023 ¹⁶⁸. General and administrative expenses were $467,326 in 2025 ¹⁶⁹, compared to $409,398 in 2024 ¹⁷⁰ and $339,369 in 2023 ¹⁷¹.

The Company faces significant risks including limited operating history with no history of pre-tax profit and only limited annual revenues for most of the years it has been operating ¹²². The Company sustained operating losses for each of its fiscal years and has sustained significant accumulated operating losses ¹²³. The continued operation of the Company will be dependent upon its ability to generate operating revenues and to procure additional financing ¹²⁴. The Company may incur operating losses in future periods due to continuing expenses associated with the roll out of the Company's HealthTab™ network, legal and accounting fees, the maintenance of its public listing and other expenses associated with running an operating business ¹²⁵. Even if the Company becomes operationally profitable, the Company will need to raise significant amounts of new funding to expand these activities ¹²⁶. At the time of this report, the Company has sufficient funds to continue the roll out of its HealthTab™ network but it may be unable to do so without securing further financing ¹²⁷. Failure to generate revenues or raise capital could cause the Company to cease operations ¹²⁸. There is a risk of competition from alternative POCT platforms, and although competition is currently limited, competitors may emerge offering alternative platforms ¹²⁹. The Company will be competing with companies that are potentially already entrenched in some markets or may be better funded ¹³⁰. There is a risk that the Company's intellectual property infringes upon the rights of other companies, which could lead to reduced revenues, reduced margins due to sanctions against the Company, outright withdrawal or prohibition of products or trademarks from the market and significant costs for legal defense against infringement claims, re-branding of products and revised marketing materials ¹³¹. The Company is unaware of any infringement claims being made against the Company or its products or processes at the time of writing ¹³². In the future, there can be no assurances that third parties will not assert infringement claims in the future or require the Company to obtain a license for the intellectual property rights of such third parties ¹³³. There can be no assurance that such a license, if required, will be available on reasonable terms or at all ¹³⁴. If the Company does not obtain such a license, it could encounter delays in the roll out of the Company's HealthTab™ network ¹³⁵.