Company: BDRX
Filing Date: 2025-01-17
Form Type: F-1
Source: 0001214659-25-000922
Chunk: 379

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-17
Form: F-1
Chunk 379
---
 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. For performance-based options that include vesting conditions relating to the market performance of
our ordinary shares, a Monte Carlo pricing model was used in order to reflect the valuation impact of price hurdles that have to be met
as conditions to vesting.

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

The assumptions used
for estimating fair value for share-based payment transactions are disclosed in note 24
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 estimated life of the option is estimated to be until the first exercise period, which is typically the month after the option 
 vests; 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.                                                                                                       |

| F-39 |

| 2 | Critical accounting estimates and judgements (continued) |

Financial liabilities

Fair value through profit and loss (‘FVTPL’)

The Group has outstanding
warrants in the ordinary share capital of the Company. The number of ordinary shares to be issued when 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