Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 280

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 280
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 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
classification criteria under ASC 815-40. After all relevant assessments, the Company concludes whether the warrants are classified
as a liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance,
with all changes in fair value after the issuance date recorded in the consolidated statements of operations and comprehensive loss. Equity
classified warrants only require fair value accounting at issuance with no changes in fair value recognized subsequent to the issuance
date.

Other Income — Related Party

Other income — related party consists
of engineering consulting services provided to related parties that are unrelated to the Company’s core business. This income is
recognized as the related performance obligations are satisfied. Refer to Note 4 - Related Party Transactions for further details.

<div align='center'>F-58

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

Note 3. Summary of Significant Accounting Policies (cont.)

Segments

ASC Topic 280, Segment Reporting,
establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic
areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information
is available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate
resources and assess performance.

For the six months ended June 30, 2025
and 2024, the Company was managed as a single operating segment in accordance with the provisions in the Financial Accounting Standards
Board (“FASB”) guidance on segment reporting, which establishes standards for, and requires disclosure of, certain financial
information related to reportable operating segments and geographic regions. Furthermore, the Company determined that a committee comprised
of our Chief Executive Office (“CEO”) and founding officers are the Chief Operating Decision Makers as this committee is responsible
for making decisions regarding the allocation