Company: NKLR
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111171
Chunk: 18

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 an Srl., the Company’s
ownership structure is defined by “corporate capital” and “quotas” rather than shares, stock or units. As of September
30, 2025 and December 31, 2024, the total authorized, subscribed and paid-up capital was $15 and $3, 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.

12

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 with Italian regulations for early-stage “start-up innovative” companies.

Legal Reserve – Italian Civil Code

In accordance with Article
2430 of the Italian Civil Code, the Company is required to allocate 5% of its annual net profit or loss to a legal reserve until such
reserve reaches 20% of the Company’s share capital. As of September 30, 2025, the legal reserve amounted to $2, representing approximately
16% of share capital. This reserve is recorded as an appropriation of retained earnings and does not impact net income. The legal reserve
is not distributable as dividends.

Appropriation to Statutory Reserve

In accordance with the Company’s
bylaws and following the approval of the FY 2024 financial statements, a portion of the December 31, 2024 net loss was allocated to a
statutory reserve. This reserve is distinct from the legal reserve required under Article 2430 of the Italian Civil Code and is intended
to strengthen the Company’s equity base. The appropriation was recorded as a reclassification within equity and did not involve
any cash movement.

Use of Prior Year Profit to