Company: BDRX
Filing Date: 2025-04-11
Form Type: 20-F
Source: 0001214659-25-005742
Chunk: 65

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-04-11
Form: 20-F
Item: Item 19
Chunk 65
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 the profit or loss of Group entities on the translation
of long-term monetary items forming part of the Group’s net investment in the overseas operation concerned are reclassified to other
comprehensive income and accumulated in the foreign exchange reserve on consolidation.

On disposal of a foreign operation, the cumulative exchange differences recognised
in the foreign exchange reserve relating to that operation up to the date of disposal are transferred to the consolidated statement of
comprehensive income as part of the gain or loss on disposal.

Financial
assets and liabilities

Assets at amortised cost

The Group does not have any financial assets which it would classify as fair value
through profit or loss. Therefore, all financial assets are classed as assets at amortised cost as defined below.

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.

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