Company: BDRX
Filing Date: 2025-01-28
Form Type: 424B3
Source: 0001214659-25-001409
Chunk: 371

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-28
Form: 424B3
Chunk 371
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 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. Fair value is determined in the manner described in note 18.

Other financial liabilities
include the following items:

| · | Borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument.     
 Such interest-bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures    
 that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the consolidated 
 statement of financial position. Interest expense in this context includes initial transaction costs and premium payable on redemption,  
 as well as any interest or coupon payable while the liability is outstanding.                                                            |

| · | Government loans received on favourable terms below market rate are discounted at a market rate of interest. The difference between              
 the present value of the loan and the proceeds is held as a government grant within deferred revenue and is released to research and development 
 expenditure or grant income in line with when the asset or expenditure is recognised in the income statement.                                    |

| · | Trade payables and other short-term monetary liabilities are initially recognised at fair value and subsequently carried at amortised 
 cost using the effective interest method.                                                                                             |

Share capital

Financial instruments
issued by the Group are classified as equity only to the extent that they do not meet the definition of a financial liability or financial
asset. The Group has three classes of share in existence:

| · | ordinary shares of £0.001 each are classified as equity instruments; |

| · | ‘A’ deferred shares of £1 each are classified as equity instruments; |

| · | ‘B’ deferred shares of £0.001 each are classified as equity instruments. |

Retirement benefits: defined contribution schemes

Contributions to defined
con