Company: NKLR
Filing Date: 2025-10-02
Form Type: 424B3
Source: 0001213900-25-095492
Chunk: 29

Company: Terra Innovatum Global N.V.
Filing Date: 2025-10-02
Form: 424B3
Chunk 29
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 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. As the PubCo Preferred Shares may be forfeited, management has concluded that they should be evaluated, accounted for, and classified, as a freestanding equity -linkedinstrument, rather than as outstanding shares. Management has concluded that the change of control provision and the permit -drivenperformance 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 $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. (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. 20 (e)To reflect the payment of estimated total transaction costs of $2.1 million related to GSR III, including: (i)$758.5 thousand incurred prior to June 30, 2025 and recorded as accounts payable in GSR III’s historical financial statements; (ii)$1.4 million of estimated transaction costs to be incurred after June 30, 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