Avricore Health Inc.
VANCOUVER, British Columbia, Aug. 29, 2024 (GLOBE NEWSWIRE) — AVRICORE HEALTH INC. (TSXV: AVCR) (the “Company” or “Avricore”) announced its interim financial results for fiscal year 2024, demonstrating the Company's continued success in maintaining strong revenue growth while achieving net profitability.
For the six months ended June 30, 2024, revenue increased 84% year-over-year to more than $2,169,513, and gross profit increased 94% to more than $855,566. This was supported by second quarter 2024 revenue increasing 91% to more than $1,045,206 compared to the same period in 2023, and gross profit increasing 62% to more than $370,775.
As a result of this success, the Company recorded a net income of $222,559 and recorded a net increase in cash of $279,039.
“Our success is thanks to great partners, a great team and a shared mission where we all believe everyone deserves better healthcare,” said Avricore CEO Hector Bremner. “We place that mission at the heart of what we do, our passion for it is growing and we know we can do even more across Canada and the world.”
Two consecutive quarters of profit
The Company recorded comprehensive income of $222,559 for the six months ended June 30, 2024 (2023: loss of $475,737). Revenues increased due to the introduction of the HealthTab™ system and increased test sales. Gross margins for the period were 39% (2023: 37%), exceeding the Company's target margin of 30%. Stock-based compensation of $29,062 (2023: $256,519) was recorded for stock options granted, vested and repriced during the period.
3 months over
June 30
6 months over
June 30
2024
2023
2024
2023
Revenue
$1,045,206
$548,049
$2,169,513
$1,177,290
Year-on-year change
91%
84%
Gross profit
$370,775
$229,471
$855,566
$440,152
Year-on-year change
62%
94%
We have what it takes
As of this reporting period, our working capital was $609,108 (December 31, 2023 – $244,343) and accounts receivable was $329,357 (December 31, 2023 – $427,689). Given this favorable trend, we believe that our cash resources, net inflows of operating income and potential option exercises will be sufficient to cover our working capital needs for the next twelve months. However, if growth opportunities beyond this arise, we have strategic plans to ensure we are able to meet demand.
Sources and uses of cash:
Until June 30, 2024
2024
2023
$
$
Increase (decrease) in cash provided by operating activities
417,118
227,832
Cash used in investing activities
(124,679)
(418,488)
Increase (decrease) in cash provided by financing activities
(13,400)
42,500
Cash and cash equivalents, ending balance
555,610
472,371
Right direction
The following table sets forth selected financial data for each of the most recent eight quarters.
The story continues
Quarter End
June
2024
march
2024
December
2023
September
2023
June
2023
March
2023
December
2022
September
2022
$
$
$
Revenue
1,045,206
1,124,307
1,354,403
953,454
548,049
629,241
997,235
572,228
Gross profit (loss)
370,775
484,791
501,466
261,778
229,471
210,681
168,845
215,961
Share-based
compensation
1,598
27,464
142,765
304,328
168,518
88,001
243,000
58,354
Comprehensive income (loss)
54,022
168,537
59,584
(285,062)
(284,225)
(191,512)
(244,789)
(180,398)
Net profit (loss)/share
0.00
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
Total Assets
2,618,384
2,798,058
2,538,205
2,453,136
2,143,810
2,296,565
2,568,983
2,128,017
Future outlook
The company sees several near-term positive developments occurring over the remainder of 2024 and into 2025.
Expanding pharmacy network using HealthTab
Working with our pharmacy partners to maximize testing as part of our patient reach
In preparation for the announcement of state pharmacy funding to support chronic disease screening and testing by trusted medical professionals, as well as strep testing.
Working with partners to expand UK feasibility studies and secure NHS support for pharmacy coverage.
Increasing API connection partners to better support patient health records;
Piloting and expanding new market access;
General policy shifts in key markets open the door for further expansion.
Overall, we believe we will be able to manage steady growth through cash flow and build a strong foundation going forward. If opportunities arise that require additional capital beyond our current capacity, we are able to access it and meet the demand. Growth in Canada will be the focus, but international markets also offer significant opportunities and will represent a larger percentage of revenues over time. The market for POCT in health services and pharmacies is growing due to public policy decisions that support this approach. Additionally, the standards being set for POCT in pharmacies are more aligned with HealthTab's approach, and previously used and even more recently developed approaches are increasingly becoming outdated or failing to meet modern standards. Taking all this into consideration, we feel we are moving in the right direction and are confident in our strategy.
The Company also announces that at its Annual General Meeting held on June 20, 2024, it approved an increase of 45,000 stock options available for issuance under the Company's stock option plan.
HealthTab™ Market Update
Point-of-care testing market predicted to reach US$93.21 billion by 2030 (source)
Approximately 13.6 million Canadians are expected to have diabetes or prediabetes by 2030, many of whom will be undiagnosed (source)
More than one in three Americans, or approximately 88 million people, have prediabetes (source)
Each year, approximately 160,000 Canadians aged 20 and over are diagnosed with heart disease, although many of these people are only diagnosed after suffering a heart attack. (Source)
Canada has more than 10,000 pharmacies, the United States has 88,000 and the UK has about 12,000.
About HealthTab™
HealthTab™ is addressing pressing global health issues with a turnkey point-of-care testing solution that combines best-in-class point-of-care technology with a secure cloud-based platform. With just a few drops of blood drawn from a fingertip, the system produces on-the-spot lab-accurate results, with data reported in real-time. The test menu includes up to 23 key biomarkers (HbA1c, lipid profile, eGFR, etc.) that can be used to screen for and manage chronic diseases such as diabetes and heart disease. HealthTab™ has also recently added the capability for bacterial and viral testing, including strep and COVID-19.
The HealthTab™ Network model is truly unique in pharmacy today. It gives patients more control over their health while empowering knowledgeable, trusted pharmacists to play a greater role in primary care delivery. It also reduces costs and wait times and offers many potential revenue streams, including equipment leasing and consumables, direct access testing, disease prevention and control programs, sponsored wellness programs, decentralized clinical trials, real-world data (RWD) sets, and third-party app integrations via APIs.
About Avricore Health Inc.
Avricore Health Inc. (TSXV: AVCR) is a pharmacy services innovator focused on acquiring and developing early stage technologies to improve pharmacy practices and patient care. Through its flagship product, HealthTab™ (a wholly owned subsidiary), the company's mission is to create the world's largest network of rapid testing devices in community pharmacies, making actionable health information more accessible to everyone.
contact:
Avricore Health Inc.
Hector Bremner CEO 604-773-8943
inquiry
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Caution Regarding Forward-Looking Statements
Information in this press release concerning Avricore Health's expectations, plans, intentions and strategies regarding the future are forward-looking statements that are not facts and involve a number of risks and uncertainties. Avricore Health generally uses words such as “outlook,” “plans,” “may,” “will,” “may,” “remaining,” “plans,” “believes,” “may,” “anticipates,” “intends,” “expects,” “estimates,” “future,” “positioned,” “potential,” “plans,” “remaining,” “scheduled,” “scheduled,” “conditional,” “soon” and similar expressions to identify forward-looking statements. In this press release, forward-looking statements include statements regarding the completion of the placement and the expected timing thereof and the expected use of proceeds from the placement, and the unique capabilities that the HealthTab™ platform offers to pharmacists and patients. Forward-looking statements reflect the then-current expectations, beliefs, assumptions, estimates and projections of Avricore Health's management. The forward-looking statements in this press release are based on information available to Avricore Health as of the date of this press release. Forward-looking statements believed to be true at the time of their making may ultimately prove to be incorrect. These statements are not guarantees of Avricore Health's future performance and are subject to a number of risks, uncertainties and other factors, some of which are beyond Avricore Health's control and could cause actual results to differ materially from current expectations, including, but not limited to, failure to meet regulatory requirements, market changes, potential adverse economic conditions and other risk factors described in Avricore's public documents. These forward-looking statements are based only on our views as of the date they are made, and we undertake no obligation to publicly update them to reflect new information or the occurrence of future events or circumstances, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
