Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 132

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 132
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 expensed in full on that date. The value of the warrant was calculated using a Monte Carlo
simulation model. The simulation incorporated the following assumptions, (i) an underlying share price of $7.41 per share, (ii) a 3.61%
risk-free rate, and (iii) an estimated volatility of 118% based on historical data of comparable public companies.

Pro Forma Other Transaction Accounting Adjustments:

| (a) | To reflect the release of the cash and investments held in                                                                                   
 the Trust Account to cash and cash equivalents following the redemption of 14,475,606 GSR III Class A ordinary shares for aggregate proceeds 
 of $150.4 million from the Trust Account. The amount of investments held in the Trust Account released to cash is equal to the historical    
 balance of the Trust Account as of June 30, 2025 in the amount of $236.3 million, plus $2.6 million dividend income on                       
 the Trust Account subsequent to June 30, 2025 through the Closing Date (see Note 3(aa)) less the $150.4 million aggregate redemptions.       |

| (b) | To reflect the recognition of (i) the issuance of PubCo                                                                                 
 Preferred Shares to PAC upon the Closing and (ii) the associated conversion feature which will be automatically triggered if contingent 
 milestones are met subsequent to the Closing. Refer to the Introduction 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-linked instrument, rather than as
outstanding shares.

Management has concluded that the change of control provision
and the permit-driven performance target milestones described in the Introduction section above cause the freestanding equity-linked instrument
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-linked instrument has been recorded as a liability at its estimated
fair value, with the offsetting amount recorded to additional paid-in capital. The value of the Share-settled contingent liability was
calculated using a probability weighted-average analysis of the achievement of each of the milestones and a Monte Carlo simulation model.
The simulation incorporated (i) an