Company: BDRX
Filing Date: 2025-01-28
Form Type: 424B3
Source: 0001214659-25-001409
Chunk: 376

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-28
Form: 424B3
Chunk 376
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 This analysis requires significant
judgments, including estimation of future cash flows, which is dependent on internal forecasts, including for revenues and development
costs, estimation of the long-term rate of growth for the business, estimation of the useful life over which cash flows will occur and
determination of our weighted-average cost of capital.

The carrying value of
intangibles not yet ready for use was £2.9million (2022: £Nil; 2021: £Nil) as at 31 December 2023 (note 11).

Management apply a further
20% sensitivity to the probability of success, this resulted in a 18% change in the fair value of the asset.

Share-based payments

The Group accounts for
share-based payment transactions for employees in accordance with IFRS 2 Share-based Payment, which requires the measurement of the cost
of employee services received in exchange for the options 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