Company: BDRX
Filing Date: 2025-01-28
Form Type: 424B3
Source: 0001214659-25-001409
Chunk: 367

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-28
Form: 424B3
Chunk 367
---
 re-imbursement of related costs, revenue is recognised at the point at which the conditions have been
met, this has been recognised within grant revenue. Where grants are received as a re-imbursement of directly related costs they are credited
to research and development expense in the same period as the expenditure towards which they are intended to contribute.

Business combinations and externally acquired intangible assets

Business combinations
are accounted for using the acquisition method at the acquisition date, which is the date at which the Group obtains control over the
entity. The cost of an acquisition is measured as the amount of the consideration transferred to the seller, measured at the acquisition
date fair value, and the amount of any non-controlling interest in the acquiree. The Group measures goodwill initially at cost at the
acquisition date, being:

| · | the fair value of the consideration transferred to the seller, plus; |

| · | the amount of any non-controlling interest in the acquiree, plus; |

| · | if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree re-measured at the 
 acquisition date, less;                                                                                                              |

| · | the fair value of the net identifiable assets acquired and assumed liabilities. |

Acquisition costs incurred
are expensed and included in administrative costs. Any contingent consideration to be transferred by the acquirer is recognised at fair
value at the acquisition date. Subsequent changes to the fair value of the contingent consideration, whether it is an asset or liability,
will be recognised through the consolidated statement of comprehensive income. If the contingent consideration is classified as equity,
it is not re-measured.

| F-33 |

| 1 | Accounting policies (continued) |

Business combinations
and externally acquired intangible assets (continued)

An intangible asset, which is an identifiable non-monetary
asset without physical substance, is recognised to the extent that it is probable that the expected future economic benefits attributable
to the asset will flow to the Group and that its cost can be measured reliably. The asset is deemed to be identifiable when it is separable
or when it arises from contractual or other legal rights. Further contingent payments due on the purchase of the intangible asset are
only recognised when it is probable that payments are due.

Externally acquired
intangible assets other than goodwill are initially recognised at cost and subsequently amortised on a straight-line basis over their
useful economic lives where they are in use. Goodwill is stated at cost less any accumulated impairment losses