Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 128

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 128
---
 equivalent to the net
assets acquired, the net assets of GSR III will be stated at their carrying values, which are deemed to be stated at their respective
fair values, and no goodwill (or gain or loss) will be recognized.

<div align='center'>74</div>

The conversion of New TopCo’s issued and outstanding
quotas into PubCo Ordinary Shares, which was effected in connection with the aforementioned asset acquisition (a recapitalization by/via
asset acquisition), was accounted for as a recapitalization in accordance with U.S. GAAP. GSR III was treated as the “acquired”
company for accounting purposes and PubCo was treated as the legal and accounting acquirer.

PubCo, which is controlled by legacy Terra Innovatum
Global Quotaholders, has been determined to be the accounting acquirer based on the following:

| ● | Legacy Terra Innovatum Global Quotaholders held a majority                                                                     
 of the voting interest in PubCo, with 67.6% of the voting power held by legacy Terra Innovatum Global Quotaholders at Closing. |

| ● | All of the senior management of PubCo will come from the 
 senior management of Terra Innovatum.                    |

| ● | Terra Innovatum will appoint a majority of the directors 
 to the board of directors of PubCo.                      |

| ● | The intended strategy of PubCo will be to continue to focus 
 on Terra Innovatum’s core service offerings.                |

The pro forma notes and adjustments, based on preliminary
estimates that could change materially as additional information is obtained, are as follows:

Pro Forma Adjustments for Financing Transactions:

| (aaa) | Subsequent to June 30, 2025, Terra Innovatum issued five                 
 convertible Bridge Loans for aggregate cash proceeds of $690.0 thousand. |

Additionally, in connection with the Bridge Loans, Terra Innovatum
committed to issue two sets of warrants upon the Closing of the Business Combination to these Bridge Loan lenders. These warrants are
considered outstanding for financial reporting purposes and qualify for equity classification under ASC 815-40.

The $690.0 thousand of proceeds from the Bridge Loan agreements
were allocated between the Bridge Loans and the equity-classified warrants based on their relative fair values. For the agreements executed
in August 2025, prior to the execution of the PIPE Subscription Agreements, the fair values were determined using a Black-Scholes-Merton
model with assumptions including a $10.00 share price