Company: BDRX
Filing Date: 2025-01-28
Form Type: 424B3
Source: 0001214659-25-001409
Chunk: 139

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-28
Form: 424B3
Chunk 139
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are significant management judgements and estimates involved in the recognition of revenue from the supply of services. Revenue on services
is recognized over the contract term, proportionate to the progress in overall satisfaction of the performance obligations (the services
performed by the Company), measured by cost incurred to date out of total estimate of costs. Our R&D collaboration agreements require
the delivery of services within 12 months.

Income taxes

Deferred tax assets are recognized
for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized.
Significant management judgment is required to determine the amount of deferred tax assets that can be recognized based upon the likely
timing and the level of future taxable profits together with future tax planning strategies.

In 2023 and 2022, there were
£73.4 million and £71.1 million of gross unutilized tax losses carried forward, respectively. No deferred tax asset has been
provided in respect of losses, as there was insufficient evidence to support their recoverability in future periods. The losses do not
have an expiry date.

Going Concern

We
are subject to a number of risks similar to those of other development and early commercial stage pharmaceutical companies. These
risks include, amongst others, generation of revenue from the development portfolio and risks associated with research, development, testing
and obtaining related regulatory approvals of our pipeline products. Ultimately, the attainment of profitable operations is dependent
on future uncertain events which include obtaining adequate financing to fulfill our commercial and development activities and generating
a level of revenue adequate to support our cost structure.

We
have experienced net losses and significant cash outflows from cash used in operating activities over the past years as we develop our
portfolio. As at June 30, 2024, we had total equity of £8.73 million (£4.68 million at December 31, 2023), incurred a net
loss after tax for the six months to June 30, 2024 of £3.31 million, as compared to £3.57 million in the same period in 2023,
and used cash in operating activities of £4.81 million (June 30, 2023: £3.88 million) for the same period.

Our
future viability is dependent on our ability to raise cash from financing activities to finance our development plans until commercialization,
generate cash from operating activities and to successfully obtain regulatory approval to allow marketing of our development products.
Our failure to raise capital