Biodexa Pharmaceuticals PLC(BDRX) - 2023 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 [726]. - The total exposure to credit risk is equal to the total value of financial assets held at year-end, with a loss allowance recognized for expected credit losses [729]. - The company aims to settle financial obligations as they become due, indicating a proactive approach to managing liquidity risk [734]. - The company does not hold any derivative instruments that expose it to material interest rate risk [733]. - The company does not enter into derivatives to manage credit risk, relying instead on high credit status banks for cash and cash equivalents [728]. - The company retains some cash balances in US Dollars to mitigate foreign exchange exposure related to its NASDAQ listing and US-based clinical studies [732]. Going Concern and Financing - Future viability depends on the ability to raise cash from financing activities, with a warning that failure to secure additional funding before Q4 2024 could jeopardize going concern status [735][737]. - The company acknowledges that the environment for financing small biotech companies remains challenging, which may present acquisition opportunities but could also lead to dilution [738]. - An explanatory paragraph regarding material uncertainty about the company's ability to continue as a going concern was included in the independent auditor's report for the year ended December 31, 2023 [739]. - The company has prepared cash flow forecasts for the next three years, indicating that further financing will be required within the next 12 months [737]. Internal Control and Disclosure - As of December 31, 2023, the company's disclosure controls and procedures were effective at a reasonable level of assurance [760]. - The management assessed the effectiveness of internal control over financial reporting as of December 31, 2023, concluding it was effective [763]. - There were no changes in internal control over financial reporting during the fiscal year ended December 31, 2023, that materially affected the internal control environment [764].