Company: BDRX
Filing Date: 2025-01-28
Form Type: 424B3
Source: 0001214659-25-001409
Chunk: 142

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-28
Form: 424B3
Chunk 142
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3
and 2022, and intangible assets not yet ready for use was £2.9 million (2022: £0) as at December 31, 2023.

The
estimates used to calculate the fair value of a cash generating unit change from year to year based on operating results and market conditions.
Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for each such
unit.

Share-based payments

We account for share-based
payment transactions for employees in accordance with IFRS 2, Share-based Payment, which requires the measurement of the cost of
employee services received in exchange for the options on our Ordinary Shares, based on the fair value of the award on the grant date.

We selected the Black-Scholes-Merton
option pricing model as the most appropriate method for determining the estimated fair value of our share-based awards without market
conditions. For performance-based options that include vesting conditions relating to the market performance of our Ordinary Shares, a
Monte Carlo pricing model was used in order to reflect the valuation impact of price hurdles that have to be met as conditions to vesting.

The resulting cost of an equity
incentive award is recognized as expense over the requisite service period of the award, which is usually the vesting period. Compensation
expense is recognized over the vesting period using the straight-line method and classified in the consolidated statements of comprehensive
income.

The assumptions used for estimating
fair value for share-based payment transactions are disclosed in our annual financial statements and are estimated as follows:

| · | volatility is estimated based on the average annualized volatility of a number of publicly traded peer 
 companies in the biotech sector;                                                                       |

| · | the estimated life of the option is estimated to be until the first exercise period, which is typically 
 the month after the option vests; and                                                                   |

| · | the dividend return is estimated by reference to our historical dividend payments. Currently, this is 
 estimated to be zero as no dividend has been paid in the prior periods.                               |

We also issue warrants exercisable
for Depositary Shares to certain professional advisors in connection with equity transactions that fall within the scope of IFRS 2 and
are accounted for as share based payments. The fair value of the services received in exchange for the grant of warrants is recognized
as an expense of the equity transaction. The total expense is recognized immediately.

| 73 |

Financial liabilities

Fair value through profit and loss (FVTPL)

We