Company: BDRX
Filing Date: 2025-01-28
Form Type: 424B3
Source: 0001214659-25-001409
Chunk: 125

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-28
Form: 424B3
Chunk 125
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 and results of operations.

Currency Exchange Rate

We
report our financial results in British pounds sterling and our cash reserves are also largely denominated in British pounds sterling.

During
the periods set forth in our financial statements, incorporated herein by reference, and in particular during 2022 and 2023, there has
been considerable volatility in the British pound sterling against the Euro and the United States dollar. From time to time, we
enter into transactions denominated in a currency other than our functional currency and this results in foreign exchange risk. At this
time, we do not consider the exposure sufficient to utilize derivatives to manage the forward exchange risk.

Components of Consolidated Statement of Comprehensive Income Items

Revenue

Our
income streams comprise revenue derived from supply of services and from research and development contracts. Revenue is recognized in-line
with that set out in Note 1 to our consolidated financial statements for the year ended December 31, 2023.

Operating Expenses

We
classify our operating expenses into two categories: (i) research and development, and (ii) administrative costs. These categories correspond
to different functional areas within the Company.

Our
operating expenses primarily consist of personnel costs, contract research and development costs, professional service fees and depreciation.
Personnel costs for each category of operating expenses include salaries, bonuses, social security, health insurance, other employee benefits
and share-based compensation for personnel in that category. We allocate share-based compensation expense resulting from the amortization
of the fair value of options. Central overheads, such as rent, computer and other technology costs, are not allocated out to departments.

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Research and Development Cost. Research and development costs consist of costs that are directly attributable to our research and development
programs associated with the products described herein. This includes costs of third party contract research organizations, research specialist
professional services providers, chemicals and other consumables used in the research and manufacturing process, depreciation of assets
related to the research and development function, and payroll costs of staff directly assigned to the research and manufacturing operations.

Administrative Costs. These primarily consist of personnel costs for our executive, finance, corporate development and administrative personnel,
as well as legal, accounting and other professional service fees, other corporate expenses, merger and acquisition costs and initial public
offering costs that are charged to the consolidated statement of comprehensive income. Administrative costs also include depreciation
of administrative assets.

Finance Income

Finance
income includes all interest receivable on cash deposits.

During
the first six months of 202