Company: NKLR
Filing Date: 2025-09-16
Form Type: 424B3
Source: 0001213900-25-087981
Chunk: 510

Company: Terra Innovatum Global N.V.
Filing Date: 2025-09-16
Form: 424B3
Chunk 510
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audited) Note 3. Summary of Significant Accounting Policies (cont.) Foreign Currency Translation The Company’s reporting currency is the United States Dollar (“US$”), while its functional currency is the Euro (“€”), which it uses for conducting business and maintaining its books and records. The accompanying financial statements are presented in US$. In accordance with ASC 830 -30, Translation of Financial Statements, the Company translates assets and liabilities from its functional currency into US$ using the exchange rate at the balance sheet date. Revenues and expenses are translated at the average exchange rate for the reporting period. Translation gains and losses are recorded as a separate component of accumulated other comprehensive income (AOCI) within the statements of changes in quotaholders’ equity (deficit). Cash flows are translated at average exchange rates for the reporting period. As a result, the amounts presented in the statements of cash flows may not directly reconcile with the corresponding changes in balances reported on the balance sheets. Comprehensive Income (Loss) ASC 220, Comprehensive Income, establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non -ownersources. Accumulated comprehensive income (loss), as presented in the accompanying statements of changes in quotaholders’ equity (deficit), consists of changes in unrealized gains and losses on foreign currency translation. Net (loss) income per share The Company is a limited liability company (Srl.) under Italian law and does not issue traditional shares. Instead, ownership is divided into quotas (similar to membership interests in a limited liability company in the United States), which represent percentage ownership in the Company and not actual shares. Historical earnings per quota have not been included in these financial statements as the Company determined that representing net loss per quota is not a meaningful or material disclosure due to the Company’s current capital structure. Warrants The Company determines the accounting classification of warrants it issues, as either liability or equity classified, by first assessing whether the warrants require liability classification in accordance with ASC 480 -10, Distinguishing Liabilities from Equity (“ASC 480 -10”). If warrants do not meet the liability classification criteria under ASC 480 -10, the Company assesses the requirements under ASC 815 -40, Contracts in Entity’s Own Equity (“ASC 815 -40”). To determine whether the warrants meet the equity classification criteria under ASC 815 -40, the Company assesses whether the warrants are indexed to the Company’s common stock and satisfy the equity