Company: BDRX
Filing Date: 2025-04-11
Form Type: 20-F
Source: 0001214659-25-005742
Chunk: 61

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-04-11
Form: 20-F
Item: Item 19
Chunk 61
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Revenue is accounted for in line with principles of IFRS 15 ‘ Revenue from contracts
with customers.

Supply of Research and Development Services

Revenue from the supply of services is subject to specific agreement. This is recognised
over the contract term, proportionate to the progress in overall satisfaction of the performance obligations (the services performed by
the Group), measured by cost incurred to date out of total estimate of costs. The primary input of substantially all work performed under
these arrangements is labour. There is normally a direct relationship between costs incurred and the proportion of the contract performed
to date.

Where the Group supplies services to a client it generally bills an agreed percentage
in advance of the commencement of any work and the balance on completion. Invoices to clients are payable under normal commercial terms.

Grant revenue

Where grant income is received, which is not a direct re-imbursement of related costs,
revenue is recognised at the point at which the conditions have been met, this has been recognised within grant revenue. Where grants
are received as a re-imbursement of directly related costs they are credited to research and development expense in the same period as
the expenditure towards which they are intended to contribute.

Accounting
for rRapa and CPRIT grant

On 25 April 2024 the Company entered into a License and Collaboration
Agreement (LCA) with Rapamycin Holdings, Inc. (d/b/a Emtora Biosciences). The LCA entered into with Emtora meets the definition of a Joint
Arrangement under IFRS 11, specifically related to the FAP program.

A jointly controlled escrow account was established on completion
of the LCA. All FAP program transactions are processed through the escrow account, including the Company’s deposits of matching
funds, as set out in the agreement, the receipt of grant funding from CPRIT and the payment of eligible R& D expenses. Although the
CPRIT grant and R& D supplier contracts are with Emtora, the joint arrangement nature of the LCA results in Emtora being deemed to
be acting as the Company’s agent. Accordingly, the Company recognises 100% of the grant and 100% of the R& D expenditure. The
CPRIT grant recognised is on a 1 for 2 match over the period of the grant, but can vary between periods. In accordance with the Company’s
accounting policy, the grant, as it is the re-imbursement of directly related