Company: BDRX
Filing Date: 2025-01-28
Form Type: 424B3
Source: 0001214659-25-001409
Chunk: 144

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-28
Form: 424B3
Chunk 144
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 significantly since initial recognition, based on reasonable and supportable information that is
available, without undue cost or effort to obtain.

Where there has not been a
significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This
represents a portion of the asset’s lifetime expected credit losses that is attributable to a default event that is possible within
the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly,
the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognized is measured
on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the
original effective interest rate. For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognized within other comprehensive income. In all other cases, the loss allowance is recognized in profit or loss.

Cash in Bank

We are continually reviewing
the credit risk associated with holding money on deposit in banks and seek to mitigate this risk by holding deposits with banks with high
credit status.

Foreign Exchange Risk

Foreign exchange risk also
arises when our individual entities enter into transactions denominated in a currency other than our functional currency. Our transactions
outside the United Kingdom to Europe and the United States of America drive foreign exchange movements where suppliers invoice in currency
other than British pounds sterling. We do retain some cash balances in US Dollars from our US Dollar denominated equity raises to reduce
the foreign exchange exposure on US$ denominated suppliers related to our NASDAQ listing and US based clinical studies. To the extent
other assets and/or consumables are purchased in foreign currencies, the requisite currency is purchased immediately upon invoice.

| 74 |

Interest Rate Risk

We do not hold any derivative
instruments, or other financial instruments, that expose us to material interest rate risk.

Liquidity Risk

Liquidity risk arises from
our management of working capital. It is the risk that we will encounter difficulty in meeting our financial obligations as they fall
due.

It
is our aim to settle balances as they become due.

Our future viability is
dependent on its ability to raise cash from financing activities to finance its development plans until milestones and/or royalties can
be secured from partnering our 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.

As
noted herein, we