Biodexa Pharmaceuticals PLC(BDRX) - 2025 Q4 - Annual Report

Financial Risks - The company is exposed to various financial risks, including market risk, credit risk, and liquidity risk, with a focus on minimizing adverse effects on financial performance [677]. - The total exposure to credit risk is equal to the total value of financial assets held at year-end, with a loss allowance for expected credit losses recognized based on credit risk assessments [680]. - The company is continually reviewing credit risk associated with bank deposits and aims to mitigate this risk by holding deposits with banks of high credit status [682]. - Foreign exchange risk arises from transactions in currencies other than the functional currency, with cash balances retained in US Dollars to reduce exposure [683]. - The company does not hold any derivative instruments that expose it to material interest rate risk [684]. - Liquidity risk is managed through working capital management, with an emphasis on settling balances as they become due [685]. Financing Needs - As of December 31, 2025, $26.08 million remains undrawn from a $35.0 million Equity Line of Credit (ELOC) established in January 2025 [688]. - The company anticipates requiring additional financing in the third quarter of 2026 to support ongoing development programs and operations [688]. - The independent registered public accounting firm expressed substantial doubt about the company's ability to continue as a going concern due to uncertainties in financing options [690]. - The company is evaluating financing options, including potential acquisitions or mergers, but acknowledges that any financing may be dilutive [689]. ADR and Tax Obligations - ADR holders must pay any taxes or governmental charges related to their Depositary Shares or ADRs [706]. - The depositary has the right to deduct unpaid taxes from cash distributions or sell deposited securities to cover tax obligations [706]. - ADR holders agree to indemnify the depositary and its affiliates against claims from governmental authorities regarding taxes and penalties [707].