Company: BDRX
Filing Date: 2025-04-11
Form Type: 20-F
Source: 0001214659-25-005742
Chunk: 71

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-04-11
Form: 20-F
Item: Item 19
Chunk 71
---
 the vesting period.

The assumptions used for estimating fair value for share-based payment transactions
are disclosed in note 25 toour consolidated financial statements and are estimated as
follows:

  volatility is estimated based on the average annualised volatility    

  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                                                

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 19to our consolidated financial statements and are estimated as follows:

  volatility is estimated based on the average annualised volatility    

  the dilutive impact of the exercise of the warrants; and  

  the dividend return is estimated by reference to our historical                                                

The following are considered to be critical accounting
judgments:

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 2024, there were approximately £79.7million of gross unutilised tax losses
carried forward (2023: £73.4million; 2023: £71.1million). 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