Company: NKLR
Filing Date: 2025-12-16
Form Type: 424B3
Source: 0001213900-25-121900
Chunk: 126

Company: Terra Innovatum Global N.V.
Filing Date: 2025-12-16
Form: 424B3
Chunk 126
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 forfeited, management has concluded
that they should be evaluated, accounted for, and classified, as a freestanding equity linked instrument, rather than as outstanding
shares.

Management has concluded that the change of control provision
and the permit-driven performance target milestones described in the Introduction section above cause the freestanding equity-linked
instrument 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-linked instrument has been recorded as a liability at its estimated
fair value. The value of the Share-settled contingent liability was calculated using a probability weighted-average analysis of the achievement
of each of the milestones and a Monte Carlo simulation model. The simulation incorporated (i) an underlying share price of $7.41 per
share, (ii) a 3.9% risk free rate, and (iii) an estimated volatility of 125% based on historical data of comparable public companies

| (n) | To reflect the recognition of (i) the issuance of PubCo Preferred                          
 Shares to the Terra Innovatum Global Quotaholders upon the Closing and (ii) the associated 
 conversion feature which will be automatically triggered if contingent milestones are met  
 subsequent to the Closing. Refer to the Introduction section above for description of the  
 various milestones.                                                                        |

The PubCo Preferred Shares will be forfeited by the holder
if they are not converted within 20 years from the issuance date, the Closing. Shares may be forfeited, management has concluded that
they should be evaluated, accounted for, and classified, as a freestanding equity-linked instrument, rather than as outstanding shares.

Management has concluded that the change of control provision
and the permit-driven performance target milestones described in the Introduction section above cause the freestanding equity-linked
instrument 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-linked instrument has been recorded as a liability at its estimated
fair value. The value of the Share-settled contingent liability was calculated using a probability weighted-average analysis of the achievement
of each of the milestones and a Monte Carlo simulation model. The simulation incorporated (i) an underlying share price of $7.41 per
share, (ii) a 3.9% risk free rate, and (iii) an estimated volatility of 125% based on historical data