Company: NKLR
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111171
Chunk: 16

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 Bridge Loans range from 22.72% to 153.73%. The weighted average interest
rate as of September 30, 2025 is 98.80%.

As of September 30, 2025,
the aggregate principal amount outstanding of the Bridge Loans, including interest paid in kind, was $5,938. The Bridge Loans are presented
net of unamortized debt discount of $2,370 and issuance costs of $11, resulting in a net carrying value of $3,557.

Note 9. Fair Value Measurements

The authoritative guidance
on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:

    Level 1 —
    Quoted prices for identical assets or liabilities in active markets.

    Level 2 —
    Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves.

    Level 3 —
    Unobservable inputs reflecting management’s view about the assumptions that market participants would use in pricing the asset or liability.

11

Assets and liabilities measured
at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The
Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management
to make judgments and consider factors specific to the asset or liability.

Financial Instruments Not Recorded at Fair Value

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