Company: BDRX
Filing Date: 2025-01-28
Form Type: 424B3
Source: 0001214659-25-001409
Chunk: 378

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-28
Form: 424B3
Chunk 378
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| 2 | Critical accounting estimates and judgements (continued) |

Going Concern – material uncertainty

We have
experienced net losses and significant cash outflows from cash used in operating activities over the past years as it develops its
portfolio. For the year ended 31 December 2023, the Group incurred a consolidated loss for the year of £7.08million
and negative cash flows from operating activities of £6.83million.
As of 31 December 2023, the Group had an accumulated deficit of £142.82million.

Our future viability
is dependent on our ability to raise cash from financing activities to finance its development plans until milestones and/or royalties
can be secured from partnering the Company’s assets. Our failure to raise capital as and when needed could have a negative impact
on its financial condition and ability to pursue its business strategies.

We believe there are
adequate options and time available to secure additional financing for the Company and after considering the uncertainties, we consider
it is appropriate to continue to adopt the going concern basis in preparing these financial statements. The Group's consolidated financial
statements have therefore been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business.

As at 31 December 2023,
the Group had cash and cash equivalents of £5.97m. We have prepared cash flow forecasts and considered the cash flow requirement
for the Group for the next three years including the period 12 months from the date of approval of the consolidated financial statements.
These forecasts show that further financing will be required before the fourth quarter of 2024 assuming, inter alia, that certain development
programs and other operating activities continue as currently planned. If the Company does not secure additional funding before the fourth quarter of 2024,
it will no longer be a going concern and would likely be placed in Administration.

Our forecast of the
period of time through which our financial resources will be adequate to support our operations is a forward-looking statement and involves
risks and uncertainties, and actual results could vary as a result of a number of factors, including the timing of clinical trials. We
have based this estimate on assumptions that may prove to be wrong, and we could utilize our available capital resources sooner than we
currently expect. If we lack sufficient capital to expand our operations or otherwise capitalize on our business opportunities, our business,
financial condition and results of operations could be materially adversely affected.

If we raise additional
funds