Company: NKLR
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111171
Chunk: 17

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 Bridge Package Contingent Warrants are classified as Level 3.

On June 6, 2025, the
funding threshold was not met, thereby resolving the contingency that affected the number of shares subject to the warrants. As a result,
the Company performed a final fair value measurement of the Bridge Package Contingent Warrants, which resulted in recognition of a gain
of $1,260, which is presented as change in fair value — warrant liability in the consolidated statement of operations
and comprehensive loss. Immediately thereafter, the Bridge Package Contingent Warrants were reclassified to permanent equity in accordance
with ASC 815-40-35. At September, 2025 and December 31, 2024, the Bridge Package Contingent Warrant liability was zero.

The following tables provide a summary of changes
in the estimated fair value of the financial instruments using significant Level 3 inputs:

    Balance - January 1, 2025 
    $- 
  
    Issuance of Bridge Package Contingent Warrants 
     1,485 
  
    Change in fair value of Bridge Package Contingent Warrants 
     (1,260)
  
    Reclassification to permanent equity on June 6, 2025 
     (193)
  
    Impact as a result of foreign exchange rates 
     (32)
  
    Balance - September 30, 2025 
    $- 

The Company estimated the fair value of Bridge
Package Contingent Warrants using the Black-Scholes option pricing model with the following inputs:

    Warrants: 

    Expected term (in years) 
     3 
  
    Expected volatility 
     106% - 108% 
  
    Risk-free interest rate 
     3.89% - 4.01% 
  
    Expected dividend yield 
     0%

During the periods presented, the Company has not changed the manner
in which it values the liabilities that are measured at estimated fair value using Level 3 inputs. There were no transfers within
the hierarchy during the periods presented.

Note 10. Quotaholders’ 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