Company: BDRX
Filing Date: 2025-01-28
Form Type: 424B3
Source: 0001214659-25-001409
Chunk: 377

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-28
Form: 424B3
Chunk 377
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 exercised is fixed, however the
exercise price is denominated in US Dollars being different to the functional currency of the parent company. Therefore, the warrants
are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account.

The financial liability
is valued using the either the Monte Carlo model or the Black-Scholes option pricing model. Financial liabilities at FVTPL are stated
at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit
or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance
expense’ lines item in the income statement.

The assumptions used
for estimating fair value for warrants transactions as disclosed in note 18 to our consolidated financial statements and are estimated
as follows:

| · | volatility is estimated based on the average annualised volatility of a number of publicly traded peer companies in the biotech sector; |

| · | the dilutive impact of the exercise of the warrants; and |

| · | the dividend return is estimated by reference to our historical dividend payments. Currently, this is estimated to be zero as no dividend 
 has been paid in the prior periods.                                                                                                       |

The following are considered to be critical accounting judgments:

Revenue

Supply Research and Development of Services

There are significant
management judgements and estimates involved in the recognition of revenue from the supply of services. Revenue on services is recognised
over the contract term, proportionate to the progress in overall satisfaction of the performance obligations (the services performed by
the Group), measured by cost incurred to date out of total estimate of costs. The Company’s R&D collaboration agreements require
the delivery of services within 12 months.

Income taxes

Deferred tax assets
are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses
can be utilised. Judgment is required to determine the amount of deferred tax assets that can be recognised based upon the likely timing
and the level of future taxable profits together with future tax planning strategies.

In 2023, there
were approximately £73.4million
of gross unutilised tax losses carried forward (2022: £71.1million;
2021: £67.2million).
No deferred tax asset has been provided in respect of these losses as there was insufficient evidence to support their
recoverability in future periods. The losses do not have an expiry date.

| F-40