Company: NKLR
Filing Date: 2025-12-16
Form Type: 424B3
Source: 0001213900-25-121900
Chunk: 91

Company: Terra Innovatum Global N.V.
Filing Date: 2025-12-16
Form: 424B3
Chunk 91
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 the nine months ended September 30, 2024 was $12. This amount was related to (i) net income of $36, offset by
(ii) adjustments to reconcile net loss to net cash used in operating activities of $28, offset by working capital changes of $4.

Net Cash Used by Investing Activities

Net cash used in investing
activities for the nine months ended September 30, 2025 was $94. This amount was related to purchases of equipment.

Net Cash provided by Financing Activities

Net cash provided by financing
activities for the nine months ended September 30, 2025 consisted of proceeds of $5,577 from the Bridge Loans, $195 from the 2025
Loan Agreement that we entered into with our quotaholders’ in the first quarter of 2025, capital contributions of $11, offset by
payment of debt issuance costs for Bridge Loans of $24.

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Critical Accounting Policies and Estimates

Critical Accounting Policy: Warrants

Our financial statements are
prepared in accordance with U.S. GAAP. In connection with our financing activities, we have entered into bridge loan agreements that
include detachable warrants. The accounting treatment for these instruments is governed by ASC 480-10 (Distinguishing Liabilities from
Equity) and ASC 815-40 (Contracts in an Entity’s Own Equity). Based on the terms of the instruments, we first determine whether
the warrants should be classified as equity or liability. Warrants that do not meet all criteria for equity classification are initially
recorded at fair value, classified as a liability and subsequently remeasured at each reporting period. Warrants that meet all equity
classification criteria are recorded at their initial fair value and recognized as a component of additional paid-in capital. This accounting
policy is considered critical due to the complexity of the applicable guidance, the judgment required in classification, and the potential
for material impact on our financial statements.

Critical Accounting Estimate: Fair Value of Warrants

The valuation of both equity-classified
and liability-classified warrants involves significant estimation uncertainty. We use option pricing models that require management to
make assumptions about key inputs, including expected volatility, risk-free interest rates, term to expiration, and the fair value of
the underlying equity. These inputs are inherently subjective and difficult to predict, and even small changes in any of them can materially
affect the resulting fair value. The estimation process is particularly sensitive to market conditions and company-specific developments.