Company: NKLR
Filing Date: 2025-12-16
Form Type: 424B3
Source: 0001213900-25-121900
Chunk: 245

Company: Terra Innovatum Global N.V.
Filing Date: 2025-12-16
Form: 424B3
Chunk 245
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 realized. Management
believes that it is more likely than not that all deferred tax assets will not be realized.

<div align='center'>F-45

Terra Innovatum, Srl.
Notes to the Financial Statements</div>

Note 3. Summary of Significant Accounting Policies(cont.)

The Company recognizes liabilities for potential
tax payments to various tax authorities related to uncertain tax positions. The liabilities are based on a determination of whether and
how much of a tax benefit taken by the Company in its tax filing is more likely than not to be realized following resolution of any potential
contingencies present related to the tax benefit. Potential interest and penalties associated with such uncertain tax positions, if any,
are recorded as components of income tax expense.

The Company assesses its income tax positions
and records tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances
and information available as of the reporting date. For those tax positions where it is more likely than not that a tax benefit will
be sustained, the Company records the largest amount of tax benefit with a greater than 50 percent likelihood of being realized upon
ultimate settlement with a taxing authority having full knowledge of all relevant information. For those income tax positions where it
is not more likely than not that a tax benefit will be sustained, the Company does not recognize a tax benefit in the financial statements.

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 of public company effective dates.

Recent Accounting Pronouncements

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. In December 2023, the FASB issued this ASU, which requires public companies, on