Mr. Hector Bremner reports

AVRICORE HEALTH CORPORATE UPDATE - COMPANY DEMONSTRATES STRONG GROWTH

Avricore Health Inc. has released its third quarter results, which demonstrate significant growth in pharmacy locations offering HealthTab, driving strong revenue growth and operational cash flow positivity. With demand for clinical services growing in pharmacies, thanks to the ever-expanding scope and demonstrated success they are having with it, the company expects to finish the year well ahead of the year previous and have great momentum for 2024.

"Patients and pharmacists are discovering and accessing new information that's having a powerful impact on their care and support thanks to HealthTab," said Hector Bremner, chief executive officer of Avricore Health. "Our ambition of helping more people live better is becoming reality each day and we are poised to make big breakthroughs in bringing this service to more patients around the world."

Revenues and operational net-positive results grow

Trends are still yet to be established with respect to test usage and system deployment cadence, the two primary ways the company generates revenues. The company is not only pioneering the first turnkey solution for point-of-care testing and health data insights, but policy and financing within Canada and other nations to support this type of work in pharmacies are being implemented in real time. However, year-over-year revenue comparisons are demonstrating strong gross revenue increases, while the company's fiscal discipline is leading to ever-increasing net cash flow, despite significant investment in the HealthTab network growth.

In the three months ended Sept. 30, 2023, revenue increased by 27 per cent year over year to $953,454 and gross profit increased by 21 per cent to $261,778. In the nine months ended Sept. 30, 2023, revenue increased by 169 per cent year over year to $2,130,744 and gross profit increased by 144 per cent to $701,930.

While a non-cash item, stock-based compensation, made up most of the company's expenses leading to a net loss thus far, it is important to recognize that a $412,400 net positive cash flow from operations was achieved, representing an increase in cash from operations of $825,960 over 2022.

For additional perspective on the positive fiscal track of the company, consider that the company achieved a 169-per-cent increase over 2022 nine-month revenues and a 144-per-cent increase in gross profit over the same period with operating expenses (excluding stock-based compensation) only increasing by 16 per cent.

All of this means the company is growing rapidly and remains in a confident position to meet future demand.

Looking ahead

The company has previously announced new programs and partnerships where work is continuing. The team expects significant growth and new revenue opportunities in the year ahead as these opportunities mature. These include:

• Being selected by Barts Heart Centre and national cardiovascular charity Heart U.K. to assess the feasibility of community pharmacists in the United Kingdom's ability to complement opportunistic blood pressure checks with cholesterol testing to assess overall cardiovascular risk and build on the clinical services offered;
• Ascensia Diabetes Care, a global diabetes care company, to integrate its blood glucose monitoring (BGM) systems, marketed as Contour Next Gen and Contour Next One, with HealthTab and bringing near-to-patient data into HealthTab results;
• Launching with Rexall Pharmacies, one of Canada's largest and most respected pharmacy brands, the second national chain to roll out HealthTab.

The company continues many other interesting and potentially exciting conversations as it seeks to drive greater collaboration between various parties interested in patient health, both within Canada and internationally.

HealthTab market fast facts:

• Point-of-care testing market to reach $93.21-billion (U.S.) in 2030;
• Nearly 13.6 million Canadians expected to be diabetic or prediabetic by 2030, with many undiagnosed;
• Over one in three Americans, approximately 88 million people, have prediabetes;
• Close to 160,000 Canadians 20 years and older are diagnosed with heart disease each year; often it is only after a heart attack they are diagnosed;
• There are more that 10,000 pharmacies in Canada, 88,000 pharmacies in the United States and nearly 12,000 in the U.K.

About HealthTab

HealthTab is a turnkey point-of-care testing solution that combines best-in-class point-of-care technologies with a secure, cloud-based platform for tackling pressing global health issues. With just a few drops of blood from a finger prick, the system generates lab-accurate results on the spot and data are reported in real time. The test menu includes up to 23 key biomarkers for screening and managing chronic diseases, such as diabetes and heart disease (for example, HbA1c, lipid profile and eGFR). HealthTab has also recently added capabilities for bacterial and viral tests, such as strep and COVID-19.

The HealthTab network model is unlike anything in pharmacy today. It gives knowledgeable and trusted pharmacists a greater role in primary care delivery, while empowering patients to take more control of their health. It also reduces costs and waiting times, and provides many potential revenue streams, including equipment leasing and consumables, direct access testing, disease prevention and management programs, sponsored health programs, decentralized clinical trials, real-world data (RWD) sets, and third party app integration through API (application program interface).

About Avricore Health Inc.

Avricore Health is a pharmacy service innovator focused on acquiring and developing early-stage technologies aimed at moving pharmacy forward. Through its flagship offering, HealthTab, a wholly owned subsidiary, the company's mission is to make actionable health information more accessible to everyone by creating the world's largest network of rapid testing devices in community pharmacies.

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