Company: BDRX
Filing Date: 2025-01-28
Form Type: 424B3
Source: 0001214659-25-001409
Chunk: 368

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-28
Form: 424B3
Chunk 368
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The amounts ascribed
to intangibles recognised on business combinations are arrived at by using appropriate valuation techniques. In-process research and development
(‘IPRD’) programmes acquired in business combinations are recognised as assets even if subsequent expenditure is written off
because the criteria specified in the policy for development costs below are not met.

IPRD is subject to annual
impairment testing until the completion or abandonment of the related project. No further costs are capitalised in respect of this IPRD
unless they meet the criteria for research and development capitalisation as set out below.

As per IFRS 3, once
the research and development of each defined project is completed, the carrying value of the acquired IPRD is reclassified as a finite-lived
asset and amortised over its useful life.

The significant intangibles
recognised by the Group and their useful economic lives are as follows:

| Schedule of intangibles assets useful economic lives |                                  |
| Goodwill                                             | – Indefinite life                |
| IPRD                                                 | – In process, not yet amortising |
| IT and website costs                                 | – 4 years                        |

The useful economic
life of IPRD will be determined when the in-process research projects are completed.

Internally generated intangible assets (development costs)

Expenditure on the research
phase of an internal project is recognised as an expense in the period in which it is incurred. Development costs incurred on specific
projects are capitalised when all the following conditions are satisfied:

| · | completion of the asset is technically feasible so that it will be available for use or sale; |

| · | the Group intends to complete the asset and use or sell it; |

| · | the Group has the ability to use or sell the asset and the asset will generate probable future economic benefits (over and above cost); |

| · | there are adequate technical, financial and other resources to complete the development and to use or sell the asset; and |

| · | the expenditure attributable to the asset during its development can be measured reliably. |

All internal activities
related to the research and development of new projects are continuously monitored by the Directors. The Directors consider that the criteria
to capitalise development expenditure are not met for a product prior to that product receiving regulatory approval in at least one country.

Development expenditure
not satisfying the above criteria, and expenditure on the research phase of internal projects are included in research and development
costs recognised in the Consolidated Statement of Comprehensive Income