Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 216

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 216
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 investments held in the Trust Account are included
in interest and dividends earned on investments held in the Trust Account in the statement of operations. The estimated fair value of
cash and investments held in the Trust Account is determined using available market information.

Concentration of Credit Risk

Financial instruments that
potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times,
may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access to such funds could
have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows. As of June 30, 2025
and December 31, 2024, the Company has not experienced losses on these accounts.

Fair Value Measurements

The Company follows the guidance
in ASC 820, “Fair Value Measurement,” for its financial assets and liabilities that are re-measured and reported at fair value
at each reporting period, and non-financial assets and liabilities that are-measured and reported at fair value at least annually.

Fair value is defined as
the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants
at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements)
and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

| ● | Level 1, defined as observable inputs such as                           
 quoted prices (unadjusted) for identical instruments in active markets; |

| ● | Level 2, defined as inputs other than quoted                                                                                               
 prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets 
 or quoted prices for identical or similar instruments in markets that are not active; and                                                  |

| ● | Level 3, defined as unobservable inputs in which                                                                                         
 little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation 
 techniques in which one or more significant inputs or significant value drivers are unobservable.                                        |

In some circumstances, the
inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair
value measurement is categorized in its entirety in the fair value hierarchy based on the