Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 265

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 265
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 core business of the Company and are included in the statement
of operations under other income — related parties.

<div align='center'>F-45

Terra Innovatum, Srl.
Notes to the Financial Statements</div>

Note 4. Related Party Transactions(cont.)

As of December 31, 2024 and 2023, the Company
had amounts due from related parties of $0 and $8,830, respectively. These amounts corresponded to unbilled amounts due from a related
party for engineering consulting services provided during the years ended December 31, 2024 and 2023.

During the year ended December 31, 2024, the
Company entered into an interest-free loan agreement with its quotaholders. The total loan amount of $216,212 is to be provided in cash
installments by January 15, 2025. As of December 31, 2024, quotaholders advanced $106,780 of the $216,212. The loan is scheduled
to mature on December 31, 2040, with automatic annual extensions permitted until December 31, 2045, unless repayment is requested
by the quotaholders.

The Company utilizes office space provided by a
related party at no charge. There is no formal lease agreement, and no amounts have been recognized for rent expense in the accompanying
financial statements. Management has determined that the fair value of the contributed office space is not material to the financial statements.

Note 5. Commitment and Contingencies

On December 18, 2024, the Company entered into
an engagement letter with Park Avenue Capital Group Corp. (“PAC”) to provide financial advisory services in connection with
a potential business combination with a special purpose acquisition company (“SPAC”). Under the agreement, PAC is engaged
to assist with negotiation, structuring, and execution of the business combination, preparation of marketing materials, and securing potential
backstop financing.

Pursuant to the agreement, the Company has committed
to a retainer fee of $50,000, payable upon execution of the engagement letter, and a LOI signature fee of $25,000, payable upon signing
a mutually exclusive letter of intent with a SPAC. Upon the public announcement of the business combination, the Company will be
required to pay an announcement milestone fee of $225,000. Additionally, upon the closing of the business combination, PAC will be entitled
to a cash success fee of $2,500,