Company: NKLR
Filing Date: 2025-12-16
Form Type: 424B3
Source: 0001213900-25-121900
Chunk: 270

Company: Terra Innovatum Global N.V.
Filing Date: 2025-12-16
Form: 424B3
Chunk 270
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The Company’s financial
instruments include cash and cash equivalents, accounts payable, prepaids, accrued expenses, due to related parties, the Bridge Loans,
and a note payable — related party. The recorded carrying amounts of these accounts approximate their fair value due
to their short-term nature.

Financial Instruments Recorded at Fair Value

As discussed in Note 8
— Bridge Loans and Warrants, certain warrants that will, under the terms of the Bridge Loan agreements, be issued following
the Merger (the “Bridge Package Contingent Warrants”) contained provisions whereby the number of shares issuable was contingent
upon the achievement of specified funding thresholds by June 6, 2025. Due to this potential variability in the number of shares
subject to the warrants, the Company initially classified the Bridge Package Contingent Warrants as liabilities in accordance with the
guidance in ASC 815-40. The Bridge Package Contingent Warrants are classified as Level 3.

On June 6, 2025, the funding
threshold was not met, thereby resolving the contingency that affected the number of shares subject to the warrants. As a result, the
Company performed a final fair value measurement of the Bridge Package Contingent Warrants, which resulted in recognition of a gain of
$1,260, which is presented as change in fair value — warrant liability in the consolidated statement of operations and
comprehensive loss. Immediately thereafter, the Bridge Package Contingent Warrants were reclassified to permanent equity in accordance
with ASC 815-40-35. At September, 2025 and December 31, 2024, the Bridge Package Contingent Warrant liability was zero.

The following tables provide
a summary of changes in the estimated fair value of the financial instruments using significant Level 3 inputs:

| Balance - January 1, 2025                                  |     |   |      - |   |
|:-----------------------------------------------------------|:----|:--|-------:|:--|
| Issuance of Bridge Package Contingent Warrants             |     |   |  1,485 |   |
| Change in fair value of Bridge Package Contingent Warrants |     |   | (1,260 | ) |
| Reclassification to permanent equity on June 6, 2025       |     |   |   (193 | ) |
| Impact as a result of foreign exchange rates               |     |   |    (32 | ) |
| Balance