Company: NKLR
Filing Date: 2025-12-09
Form Type: S-1/A
Source: 0001213900-25-119411
Chunk: 113

Company: Terra Innovatum Global N.V.
Filing Date: 2025-12-09
Form: S-1/A
Chunk 113
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 for in accordance with SAB       
 Topic 5.A as a specific incremental cost associated with the equity offering, with the grant    
 date fair value recorded as a decrease to additional paid-in capital with a corresponding       
 increase to additional paid-in capital. This resulted in a $0 impact to additional paid-in      
 capital.                                                                                        |

The warrant was recorded at its estimated fair value on the Closing Date, determined using the Black Scholes-Merton option-pricing model. The assumptions used in deriving the grant date fair value of the warrant were as follows: (i) an underlying share price of $10.00 per share. Under U.S GAAP, fair value measurements should reflect the price at which an asset or liability could be exchanged in an orderly transaction between market participants at the measurement date. The $10.00 per share underlying is the initial public offering price of GSR III, which would reflect the market participant price of an exchange of the equivalent GSR III Ordinary shares, which would convert on a one-for-one basis to PubCo Ordinary Shares upon the Closing. (ii) An exercise price of $7.00 per share, (iii) a risk-free interest rate of 4.38%, corresponding to the U.S Treasury rate for a period equal to the expected term of the warrant, (iv) an expected term of 5.0 years, as the warrant can be exercised through a 5.0 year period from the Closing, (v) a volatility of 98.2%. PubCo lacks its own historical stock data. Therefore, it estimates its expected stock volatility based primarily on the historical volatility of a publicly traded set of peer companies. (vi) A dividend yield of 0%; PubCo does not plan to pay cash dividends on its PubCo Ordinary Shares in the foreseeable future, and, therefore, uses an expected dividend yield of zero in its valuation model. These assumptions resulted in a grant date fair value of a call option (as a warrant is akin to a written call option) of approximately $8.00 per share.

| (j) | To reflect the issuance of 3,346,071 shares of GSR III Class                                   
 A Ordinary Shares upon the automatic exercise immediately prior to the Closing of the GSR      
 III Rights to acquire one GSR III Class A Ordinary Share. The issuance of the shares resulted  
 in a $0 adjustment within the GSR III Class A Ordinary Share, par value $0.0001 and additional 
 paid-in capital line items, respectively, due to the