Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 137

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 137
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 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. 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 underlying share price of $7.41
per share, (ii) a 3.9% risk free rate, and (iii) an estimated volatility of 125% based on historical data of comparable public
companies.

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| (n) | To reflect the recognition of (i) the issuance of PubCo                                                                                        
 Preferred Shares to the Terra Innovatum Global Quotaholders 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. 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. 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 underlying share price of $7.41
per share, (ii) a 3.9% risk free rate, and (iii) an estimated volatility of 125% based on historical data of comparable public
companies.

As the $591.5 million fair value of the resulting Share-settled
contingent liability exceeded the pro forma balance of additional paid-in-capital, the excess of the fair value over the pro forma balance
of additional paid-in-capital was recorded as an increase to Accumulated deficit of $