Company: BDRX
Filing Date: 2025-01-28
Form Type: 424B3
Source: 0001214659-25-001409
Chunk: 143

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-28
Form: 424B3
Chunk 143
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 have outstanding warrants
in the Ordinary Share capital of the company. The number of Ordinary Shares to be issued when exercised is fixed, however the exercise
price is denominated in US Dollars being different to the functional currency of the parent company. Therefore, the warrants are classified
as equity settled derivative financial liabilities recognized at fair value through the profit and loss account.

The financial liability is
valued using the either the Monte Carlo model or the Black-Scholes option pricing model. Financial liabilities at FVTPL are stated at
fair value, with any gains or losses arising on re-measurement recognized in profit or loss. The net gain or loss recognized in profit
or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance
expense’ lines item in the income statement. Fair value is determined in the manner described in our annual financial statements.

Recently Issued and Adopted Accounting Pronouncements

See
Note 1 to our consolidated financial statements included elsewhere in this report for recently adopted accounting pronouncements and recently
issued accounting pronouncements not yet adopted as of the dates of the statement of financial position included in this report.

Quantitative and Qualitative Disclosures about Market Risk

We are exposed to a variety
of financial risks, including, but not limited to, market risk (including foreign exchange and interest rate risks), credit risks, and
liquidity risks. Our overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential
adverse effects on its financial performance.

Credit Risk

We are exposed to credit risk
from amounts due from collaborative partners and from cash and cash equivalents and deposits with banks and financial institutions. The
risk from collaborative partners is deemed to be low. For banks and financial institutions, only independently rated parties with high
credit status are accepted. We do not enter into derivatives to manage credit risk. The gross carrying amount of a financial asset is
written off (either partially or in full) to the extent that there is no realistic prospect of recovery.

We do not enter into derivatives
to manage credit risk.

Our total exposure to credit
risk is equal to the total value of the financial assets held at year end. The consolidated entity recognizes a loss allowance for expected
credit losses on financial assets which are either measured at amortized cost or fair value through other comprehensive income. The measurement
of the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period as to whether the financial
instrument's credit risk has increased