Company: NKLR
Filing Date: 2025-09-16
Form Type: 424B3
Source: 0001213900-25-087981
Chunk: 346

Company: Terra Innovatum Global N.V.
Filing Date: 2025-09-16
Form: 424B3
Chunk 346
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ii) working capital changes of $1,478; offset by (iii) $2,061 in changes in other non -currentliabilities. Net Cash provided by Financing Activities Net cash provided by financing activities for the year ended December 31, 2024 consisted of proceeds of $111,582 from interest -freeloan agreement that we entered into with our shareholders on December 18, 2024. There were no financing activities for the year ended December 31, 2023. Critical Accounting Policies and Estimates Critical Accounting Policy: Warrants Our financial statements are prepared in accordance with U.S. GAAP. In connection with our financing activities, we have entered into bridge loan agreements that include detachable warrants. The accounting treatment for these instruments is governed by ASC 480 -10(Distinguishing Liabilities from Equity) and ASC 815 -40(Contracts in an Entity’s Own Equity). Based on the terms of the instruments, we first determine whether the warrants should be classified as equity or liability. Warrants that do not meet all criteria for equity classification are initially recorded at fair value, classified as a liability and subsequently remeasured at each reporting period. Warrants that meet all equity classification criteria are recorded at their initial fair value and recognized as a component of additional paid -incapital. This accounting policy is considered critical due to the complexity of the applicable guidance, the judgment required in classification, and the potential for material impact on our financial statements.

178 Critical Accounting Estimate: Fair Value of Warrants The valuation of both equity -classifiedand liability -classifiedwarrants involves significant estimation uncertainty. We use option pricing models that require management to make assumptions about key inputs, including expected volatility, risk -freeinterest rates, term to expiration, and the fair value of the underlying equity. These inputs are inherently subjective and difficult to predict, and even small changes in any of them can materially affect the resulting fair value. The estimation process is particularly sensitive to market conditions and company -specificdevelopments. For example, the resolution of funding thresholds in June 2025 required a final fair value measurement and reclassification of certain warrants, which impacted earnings. We continuously evaluate these assumptions, and changes in inputs or classification could materially affect our financial condition and results of operations. Off-Balance Sheet Arrangements We do not have any off -balancesheet arrangements (as that term is defined in Item 303 of Regulation S -K) that are reasonably likely to have a current or future material effect on our financial condition, expenses, results of