Company: BDRX
Filing Date: 2025-01-17
Form Type: F-1
Source: 0001214659-25-000922
Chunk: 373

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-17
Form: F-1
Chunk 373
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These assets are non-derivative
financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision
of goods and services to customers (e.g., trade receivables), but also incorporate other types of contractual monetary asset. They are
initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently
carried at amortised cost using the effective interest rate method, less provision for impairment.

For impairment provisions,
the Group applies the IFRS 9 simplified approach to measure expected credit losses using a lifetime expected credit loss provision for
trade receivables to measure expected credit losses on a collective basis. Trade receivables are grouped based on a similar credit risk
and ageing.

The expected loss rates
are based on the Group’s historic credit losses experienced over the three-year period prior to the period end. The historic loss
rates are then adjusted for current and forward-looking information on macroeconomic factors.

The Group’s assets
at amortised costs comprise trade and other receivables and cash and cash equivalents in the consolidated statement of financial position.

Cash and cash equivalents
include cash in hand, deposits held at call with original maturities of three months or less.

| F-35 |

| 1 | Accounting policies (continued) |

Financial liabilities

The Group classifies
its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired.

Fair value through
profit and loss (‘FVTPL’)

The Group has outstanding
warrants in the ordinary share capital of the company. The number of ordinary shares to be issued when exercised is fixed, however the
exercise price is denominated in US Dollars being different to the functional currency of the parent company. Therefore, the warrants
are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account.

The financial liability
is valued using the either the Monte Carlo model or the Black-Scholes option pricing model. Financial liabilities at FVTPL are stated
at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit
or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance
expense’ lines item in the income statement. Fair value is determined in the manner described in note 18.

Other financial liabilities
include the following items:

| · | Borrowings are