Company: BDRX
Filing Date: 2025-04-11
Form Type: 20-F
Source: 0001214659-25-005742
Chunk: 63

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-04-11
Form: 20-F
Item: Item 19
Chunk 63
---
 subsequently amortised on a straight-line basis over their useful economic lives where they are in use. Goodwill is stated
at cost less any accumulated impairment losses.

The amounts ascribed to intangibles recognised on business combinations are arrived
at by using appropriate valuation techniques. In-process research and development (‘ IPRD’) programmes acquired in business
combinations are recognised as assets even if subsequent expenditure is written off because the criteria specified in the policy for development
costs below are not met.

IPRD is subject to annual impairment testing until the completion or abandonment
of the related project. No further costs are capitalised in respect of this IPRD unless they meet the criteria for research and development
capitalisation as set out below.

As per IFRS 3, once the research and development of each defined project is completed,
the carrying value of the acquired IPRD is reclassified as a finite-lived asset and amortised over its useful life.

The significant intangibles recognised by the Group and their useful economic lives
are as follows:

  Schedule of intangibles assets useful economic lives                                   
  Goodwill                                                  – Indefinite                 
  IPRD                                                      – In                         
  IT and website costs                                      – 4                          

The useful economic life of IPRD will be determined when the in-process research
projects are completed.

Internally
generated intangible assets (development costs)

Expenditure on the research phase of an internal project is recognised as an expense
in the period in which it is incurred. Development costs incurred on specific projects are capitalised when all the following conditions
are satisfied:

  completion of the asset is technically feasible so that it will  

  the Group intends to complete the asset and use or sell it;  

  the Group has the ability to use or sell the asset and the asset        

  there are adequate technical, financial and other resources to  

  the expenditure attributable to the asset during its development  

All internal activities related to the research and development of new projects are
continuously monitored by the Directors. The Directors consider that the criteria to capitalise development expenditure are not met for
a product prior to that product receiving regulatory approval in at least one country.

Development expenditure not satisfying the above criteria, and expenditure on the
research phase of internal projects are included in research and development costs recognised in the Consolidated Statement of Comprehensive
Income as incurred. No projects have yet reached the point of capitalisation.

Impairment
of non-financial assets

Assets that have an indefinite