Company: BDRX
Filing Date: 2025-04-11
Form Type: 20-F
Source: 0001214659-25-005742
Chunk: 70

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-04-11
Form: 20-F
Item: Item 19
Chunk 70
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The following are considered to be critical accounting estimates:

Impairment of intangible assets not yet ready for use

Intangible assets not yet ready for use are tested for impairment at the cash generating
unit level on an annual basis at the year end and between annual tests if an event occurs or circumstances change that would more likely
than not reduce the fair value of a cash generating unit below its carrying value. Impairment indications include events causing significant
changes in any of the underlying assumptions used in valuing intangibles not ready for use. The key assumptions are the probability of
success, the discount factor, the timing of future revenue flows, market penetration and peak sales assumptions, and expenditure required
to complete development.

The fair value of each cash generating unit or asset is estimated using the income
approach, on a discounted cash flow methodology. This analysis requires significant judgments, including estimation of future cash flows,
which is dependent on internal forecasts, including for revenues and development costs, estimation of the long-term rate of growth for
the business, estimation of the useful life over which cash flows will occur and determination of our weighted-average cost of capital.

The carrying value of intangibles not yet ready for use was £5.6 million (2023:
£2.9 million; 2022: £ Nil) as at 31 December 2023 (note11).

Management apply a further 20% sensitivity to the probability of success, this resulted
in the following change in the fair value of the asset:

  Schedule of fair value of the asset                                                                     
                                           % change in fair value                                         
                                           2024                                2023                2022   
  MTX228 tolimidone acquired IPRD*                                     41                 18       n/a_   
  MTX230 eRapa acquired IPRD*                                          19                 n/a      n/a    

Share-based payments

The Group accounts for share-based payment transactions for Directors and employees
in accordance with IFRS 2 Share-based Payment, which requires the measurement of the cost of Director and employee services received in
exchange for the options on our ordinary shares, based on the fair value of the award on the grant date.

The Directors 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.

The resulting cost of an equity incentive award is recognised as an expense over
the requisite service period of the award, which is usually