Company: NKLR
Filing Date: 2025-12-09
Form Type: S-1/A
Source: 0001213900-25-119411
Chunk: 118

Company: Terra Innovatum Global N.V.
Filing Date: 2025-12-09
Form: S-1/A
Chunk 118
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 and diluted                                                                                                     |     |                   |       (0.25 | ) |

| (1) | In August 2025 and September 2025, for certain lenders (“the                                                                                   
 lenders”), Terra Innovatum amended the terms of their outstanding Bridge Loan agreements including the terms of the associated                 
 warrant commitments. For the existing warrant commitments having an exercise price of $11.50 per share, the amendments increased               
 the number of shares underlying such warrants to equal 100% of the shares issuable upon conversion of the Bridge Loans, and shortened          
 the exercise period of warrants held by certain lenders from 48 months to 36 months. Additionally, Terra Innovatum added a commitment          
 to issue to the lenders new warrants having a number of underlying common shares equal to 100% of the shares issuable upon conversion          
 of the Bridge Loans and an exercise price of $15.00 per share. Each amended warrant remained equity-classified before and after the            
 amendments. The effects of the amendments were accounted for as a dividend made to the affected Bridge Loan lenders. The dividend              
 was measured as the sum of (i) the excess of the fair value of the modified $11.50 warrants post-amendment over their pre-amendment            
 fair value, and (ii) the fair value of the new $15.00 warrants on the amendment date.                                                          
 The fair values of the affected warrants with amendment dates                                                                                  
 in August 2025, prior to the execution of the PIPE Subscription Agreements, were determined using a Black-Scholes-Merton model, based          
 on the following assumptions: (i) share price of $10.00, (ii) risk-free rate of 3.7% – 3.8%, (iii) volatility of 106% –                        
 108%, and (iv) an 8.3% – 9.3% discount for lack of marketability. For the fair values of the affected warrants with amendment                  
 dates in September 2025, following the execution of the PIPE Subscription Agreements, the model incorporated updated assumptions               
 including: (i) share price of $7.41, (ii) risk-free rate of 4.02%, (iii) volatility of 110%, and (iv) a 5% discount for lack of marketability. 
 The resulting dividend of $6.5 million was recorded as a reduction to additional paid-in capital, offset by a corresponding increase           
 in additional paid-in capital for the warrants’ fair value adjustment, resulting in