Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 279

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 279
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 as allowed under ASC 842, to not recognize
on its consolidated balance sheet leases with a lease term of one year or less. As of June 30, 2025 and December 31, 2024, the
Company has only one short-term lease. The Company has not entered into any long-term leases.

<div align='center'>F-57

Terra Innovatum Global, Srl.
Notes to the Consolidated Financial Statements
(Unaudited)</div>

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-owner sources. 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