Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 289

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 289
---
 that is significant to the fair value measurement. The Company’s
assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments
and consider factors specific to the asset or liability.

<div align='center'>F-63

Terra Innovatum Global, Srl.
Notes to the Consolidated Financial Statements
(Unaudited)</div>

Note 10. Fair Value Measurements(cont.)

Financial Instruments Not Recorded at Fair Value

The Company’s financial instruments include
cash and cash equivalents, accounts payable, prepaids, accrued expenses, due from related parties, the Bridge Loans, and a note payable — related
party. The recorded carrying amounts of these accounts approximate their fair value due to their short-term nature.

Note 11. Quotaholders’ Equity (Deficit)

The Company is an Srl., which is an Italian limited
liability company similar to a limited liability company in the United States. Unlike corporations that issue shares of stock, the
Company’s Articles of Incorporation designate ownership in the form of quotas, which represent its corporate capital.

Corporate Capital

As an Srl., the Company’s ownership structure
is defined by “corporate capital” and “quotas” rather than shares, stock or units. As of June 30, 2025 and
December 31, 2024, the total authorized, subscribed and paid-up capital was $14,933 and $3,160, respectively, consisting of quotas
from founders and investors. Voting rights are proportional to the percentage of quotas owned, and members are entitled to a share of
profit and losses based on their ownership percentage.

In March 2024, certain quotaholders transferred
portions of their holdings to new and existing quotaholders, resulting in a revised ownership structure. On June 23, 2025, the Terra
Innovatum, Srl. quotaholders, who collectively own 100% of both Terra Innovatum Global, Srl. and Terra Innovatum, Srl. completed the Contribution,
in accordance with their existing ownership percentages in Terra Innovatum, Srl. This Contribution was executed as part of the pre-closing
restructuring related to the Merger. As a result, Terra Innovatum, Srl. became a wholly owned subsidiary of Terra Innovatum Global, Srl.

The transfer of quotas is subject to member approval,
as outlined in the Company’s articles of incorporation. No dividends or distributions were declared for the year, in accordance