Company: BDRX
Filing Date: 2025-01-17
Form Type: F-1
Source: 0001214659-25-000922
Chunk: 146

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-17
Form: F-1
Chunk 146
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, the loss allowance is recognized in profit or loss.

Cash in Bank

We are continually reviewing
the credit risk associated with holding money on deposit in banks and seek to mitigate this risk by holding deposits with banks with high
credit status.

Foreign Exchange Risk

Foreign exchange risk also
arises when our individual entities enter into transactions denominated in a currency other than our functional currency. Our transactions
outside the United Kingdom to Europe and the United States of America drive foreign exchange movements where suppliers invoice in currency
other than British pounds sterling. We do retain some cash balances in US Dollars from our US Dollar denominated equity raises to reduce
the foreign exchange exposure on US$ denominated suppliers related to our NASDAQ listing and US based clinical studies. To the extent
other assets and/or consumables are purchased in foreign currencies, the requisite currency is purchased immediately upon invoice.

| 74 |

Interest Rate Risk

We do not hold any derivative
instruments, or other financial instruments, that expose us to material interest rate risk.

Liquidity Risk

Liquidity risk arises from
our management of working capital. It is the risk that we will encounter difficulty in meeting our financial obligations as they fall
due.

It
is our aim to settle balances as they become due.

Our future viability is
dependent on its ability to raise cash from financing activities to finance its development plans until milestones and/or royalties can
be secured from partnering our assets. Our failure to raise capital as and when needed could have a negative impact on its financial condition
and ability to pursue its business strategies.

As
noted herein, we believe there are adequate options and time available to secure additional financing for the Company and after considering
the uncertainties, we consider it is appropriate to continue to adopt the going concern basis in preparing the financial information.
Our consolidated financial information have therefore been presented on a going concern basis, which contemplates the realization of assets
and the satisfaction of liabilities in the normal course of business.

We
have prepared cash flow forecasts and considered the cash flow requirement for our next three years, including the period twelve months
from the date of the approval of the financial statements. These forecasts show that further financing will be required during the course
of the next 12 months, assuming, inter alia, that certain development programs and other operating activities continue as currently planned. If
we do not secure additional funding before the end of the first quarter of 2025, we will no longer be a going concern and would likely
be placed in administration