Mr. Hector Bremner reports

AVRICORE HEALTH CORPORATE UPDATE: MID-YEAR RESULTS SHOW STRONG GROWTH, PROFITABILITY

Avricore Health Inc. has released its midyear results for 2024, demonstrating the company's continued success in maintaining strong growth in revenues while achieving net profitability.

In the six months ended June 30, 2024, revenues grew by 84 per cent year over year, topping $2,169,513, with gross profit increasing 94 per cent to $855,566. This was supported by Q2 (second quarter) 2024 revenue increasing 91 per cent against the same period in 2023 to $1,045,206, with gross profit topping $370,775, a 62-per-cent gain.

This success led the company to recording a net profit of $222,559 and posting a net increase in cash of $279,039.

"Our success comes from great partners, an incredible team and a shared mission by all that believes everyone deserves better access to care," said Hector Bremner, chief executive officer of Avricore. "We've put that mission at the centre of what we do and know that the passion for our mission is growing, and we can do so much more in Canada and globally."

Second consecutive profitable quarter

The company incurred a comprehensive income of $222,559 for the six months ended June 30, 2024, (2023 -- loss $475,737). Revenue grew thanks to an increase in HealthTab systems deployed and tests sold. Gross margin for the period was 39 per cent (2023 -- 37 per cent), outperforming the company's target margin of 30 per cent. Share-based compensation of $29,062 (2023 -- $256,519) was recognized for stock options granted, vested and repriced during the period.

Avricore has what it takes

As of this reporting period, the company had a working capital of $609,108 (Dec. 31, 2023 -- $244,343) and $329,357 (Dec. 31, 2023 -- $427,689) in accounts receivable. Given the positive trend, Avricore believes that its cash resources, along with the net inflows of revenues from operations and the potential exercising of options, are sufficient to finance its working capital for the next 12 months. However, should growth opportunities present themselves that would exceed this, Avricore has strategic plans that would ensure it meets demand.

The right direction

An attached table highlights selected financial data for each of the eight most recent quarters.

Looking ahead

The company sees several near-term positive developments coming throughout the balance of 2024 and into 2025:

• Expanding its network of pharmacies utilizing HealthTab;
• Working with pharmacy partners to ensure the maximizing of testing as part of their patient approach;
• Preparing for potential pharmacy funding announcements by provinces that will support chronic disease screening and testing, as well as strep testing, by these trusted health care professionals;
• Expanding the United Kingdom feasibility study in collaboration with its partners and securing NHS (National Health Service) support for pharmacy scope;
• Increasing API (application programming interface) connectivity partners to better support patient health records;
• New market access pilots and expansions;
• General policy shifts in key markets, which will open doors to further expansion.

Over all, the company believes it can manage stable growth through cash flow, putting it on a strong footing going forward. If, and when, opportunities arise that would require additional capital beyond current abilities, the company can access it and ensure it can meet demand. Growth in Canada will be a focus; however, international markets present significant opportunity and will eventually represent a larger share of revenues in time. The market for health services and POCT (point-of-care testing) in pharmacy is growing thanks to public policy decisions that are supporting the approach. Furthermore, standards being set for POCT in pharmacy are more in line with HealthTab's approach, making either previously used and even recently developed approaches increasingly obsolete or unable to meet the modern standard. The company feels, in light of all this, that it is on the right track and is confident of its strategy.

The company also announces that at its annual general meeting held on June 20, 2024, shareholders approved an increase of 45,000 in the number of stock options available to be issued under the company's stock option plan.

HealthTab market fast facts:

• POCT 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 than 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 POCT 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 (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.

About Avricore Health Inc.

Avricore is a pharmacy service innovator focused on acquiring and developing early-stage technologies aimed at advancing pharmacy practice and patient care. 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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