Company: NKLR
Filing Date: 2025-08-01
Form Type: S-4/A
Source: 0001213900-25-070223
Chunk: 301

Company: Terra Innovatum Global N.V.
Filing Date: 2025-08-01
Form: S-4/A
Chunk 301
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 target milestones described in the Introduction section above cause the freestanding equity -linkedinstrument to not be considered indexed to PubCo’s own stock as these represent potential settlement adjustments that are not permissible within the guidance of ASC 815. Therefore, the freestanding equity -linkedinstrument has been recorded as a liability at its estimated fair value, with the offsetting amount recorded to additional paid -incapital. The value of the Share -settledcontingent liability was calculated using a probability weighted -averageanalysis of the achievement of each of the milestones and a Monte Carlo simulation model. The simulation incorporated (i) an underlying share price of $10.00 per share, (ii) a 4.1% risk free rate, and (iii) an estimated volatility of 125% based on historical data of comparable public companies. 143 (c)To reflect the issuance of 223,000 PubCo Ordinary Shares to PAC upon the Closing for banking advisory services provided to Terra Innovatum. The issuance of the shares was accounted for in accordance with Staff Accounting Bulletin Topic 5A (“SAB Topic 5A”) as a specific incremental cost associated with the equity offering, with the grant date fair value recorded as a decrease to additional paid -incapital with a corresponding increase to par value. (d)To reflect the settlement of GSR III’s deferred underwriting fee payable upon the Closing from Cash and cash equivalents. (e)To reflect the payment of estimated total transaction costs of $2.1million related to GSR III, including: (i)$758.5 thousand incurred prior to March31, 2025 and recorded as accounts payable in GSR III’s historical financial statements; (ii)$1.4million of estimated transaction costs to be incurred after March31, 2025, which are not specific incremental costs directly attributable to the offering. In accordance with Staff Accounting Bulletin Topic 5.A and ASC 340 -10-S99-1, management evaluated the nature of all transaction -relatedcosts. Based on this evaluation: •Approximately $758.5 thousand of costs incurred prior to March31, 2025 were recorded in GSR III’s historical financial statements as accounts payable and expensed as incurred, as they were not directly attributable to the offering. These costs included legal services related to the negotiation and structuring of the business combination agreement. None of these services were directly attributable to the offering. •Approximately $1.4million to be incurred after March31, 202