Company: BDRX
Filing Date: 2025-01-17
Form Type: F-1
Source: 0001214659-25-000922
Chunk: 328

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-17
Form: F-1
Chunk 328
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 basis taxpayer may elect to apply the same rules applicable to cash basis taxpayers with respect
to the sale of ADRs that are traded on an established securities market, provided that the election must be applied consistently from
year to year and cannot be changed without the consent of the IRS. For an accrual method taxpayer who does not make such an election,
units of foreign currency received will generally be translated into United States dollars at the spot rate on the trade date of the sale.
Such an accrual basis taxpayer may recognize foreign currency exchange gain or loss based on currency fluctuations between the trade date
and the settlement date of such sale. In general, any such gain or loss will be ordinary and will be treated as from sources within the
United States for United States foreign tax credit purposes.

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Passive Foreign Investment Company Rules

A foreign corporation is a
PFIC if either (1) 75% or more of its gross income for the taxable year is passive income or (2) the average percentage of assets held
by such corporation during the taxable year that produce passive income or that are held for the production of passive income is at least
50%. For purposes of applying the tests in the preceding sentence, the foreign corporation is deemed to own its proportionate share of
the assets, and to receive directly its proportionate share of the income, of any other corporation of which the foreign corporation owns,
directly or indirectly, at least 25% by value of the stock.

Based
upon estimates with respect to its income, assets, and operations, it is expected that we will not be a PFIC for the current taxable year.
However, because the determination of PFIC status must be made on an annual basis after the end of the taxable year and will depend on
the composition of the income and assets, as well as the nature of the activities, of our activities and those of our subsidiaries from
time to time, there can be no assurance that we will not be considered a PFIC for any taxable year.

If
we were to be classified as a PFIC for any taxable year in which a United States holder held the Depositary Shares, various adverse United
States tax consequences could result to such United States holders, including taxation of gain on a sale or other disposition of the shares
of the corporation, Depositary Shares at ordinary income rates and imposition of an interest charge on gain or on distributions with respect
to the shares, Depositary Shares. Unless a United States holder of PFIC shares elects