Company: NKLR
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111171
Chunk: 9

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 a result, certain prior period amounts may not be directly comparable due to rounding differences.

Use of Estimates

The preparation of financial statements in conformity
with U.S. GAAP requires management to make certain estimates, judgments and assumptions. The Company believes that the estimates,
judgments and assumptions made when accounting for items and matters such as, but not limited to, useful lives and recoverability of long-lived
assets including equipment, equity-based compensation and contingencies, are reasonable, based on information available at the time they
are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial
statements, as well as amounts reported on the statements of operations during the periods presented. Actual results could differ
from those estimates.

Fixed Assets

The Company’s fixed assets are comprised
of computer equipment. Computer equipment is stated at cost, net of accumulated depreciation. The Company capitalizes purchases of computer
equipment that exceed its capitalization threshold and have a useful life of greater than one year. Depreciation is computed using the
straight-line method over the estimated useful life of the asset. For computer equipment, the Company has determined a useful life of
6 years. Depreciation expense is recognized beginning in the month the asset is placed into service. Maintenance and repairs are expensed
as incurred, while improvements that extend the useful life or enhance the functionality of the equipment are capitalized. Upon retirement
or disposal of assets, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is
recognized in the period of disposal.

7

Emerging Growth Company Status

The Company is an emerging growth company, as defined
in the Jumpstart Our Business Startups Act of 2012 (the JOBS Act). Under the JOBS Act, emerging growth companies can delay adopting
new or revised accounting standards issued subsequent to the enactment of the JOBS Act, until such time as those standards apply to private
companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that
have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging
growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act.
As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements
as