Company: BDRX
Filing Date: 2025-01-17
Form Type: F-1
Source: 0001214659-25-000922
Chunk: 407

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-17
Form: F-1
Chunk 407
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 generates positive net cash inflows from the commercialisation of its products
it remains dependent upon additional funding through the injection of equity capital and government funding. The Group may not be able
to generate positive net cash inflows in the future or to attract such additional required funding at all, or on suitable terms. In such
circumstances the development programmes may be delayed or cancelled, and business operations cut back.

The Group seeks to reduce
this risk by keeping a tight control on expenditure, avoiding long term supplier contracts (other than clinical trials), prioritising
development spend on products closest to potential revenue generation, obtaining government grants (where applicable), maintaining a focussed
portfolio of products under development and keeping shareholders informed of progress.

There have been no changes
to the Group’s processes for managing capital risk since the previous year.

| 20 | Deferred tax |

Deferred tax is calculated
in full on temporary differences under the liability method using tax rates applicable in the tax jurisdictions where the tax asset or
liability would arise.

The movement on the
deferred tax account in 2023 is £nil (2022: £nil, 2021: £nil) as the net credit arising on the amortisation of intangible
assets and other timing differences has been matched by a reduction in the deferred tax asset recognised on the losses offsetting the
liability remaining.

Unused tax losses carried
forward, subject to agreement with local tax authorities, were as follows:

| Schedule of unused tax losses carried forward |     |                    |     |              |
|                                               |     | Gross losses £’000 |     |    Potential 
 deferred tax 
  asset £’000 |
| 31 December 2023                              |     |             75,530 |     |       18,947 |
| 31 December 2022                              |     |             71,139 |     |       17,867 |
| 31 December 2021                              |     |             67,210 |     |       16,925 |

The remaining potential
deferred tax asset of £18.9milion (2022: £17.9million, 2021: £16.9million) has not been provided in these accounts due
to uncertainty as to whether the asset would be recovered. The losses have arisen as a result of accumulated trading losses.

Deferred tax asset balances disclosed as at 31 December 2023 have been calculated at 25%. The main rate of corporation tax increased to 25%