Company: NKLR
Filing Date: 2025-12-09
Form Type: S-1/A
Source: 0001213900-25-119411
Chunk: 114

Company: Terra Innovatum Global N.V.
Filing Date: 2025-12-09
Form: S-1/A
Chunk 114
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 effect of rounding as the adjustment      
 to record the shares at par value and associated adjustment to additional paid-in capital      
 were less than $1 thousand, respectively.                                                      |

| (k) | To reflect the payment on the Closing Date of the $219.0 thousand                         
 premium for a directors’ and officers’ tail insurance policy. This adjustment             
 increases accumulated deficit as the premium is related to activity prior to the Closing. |

| (l) | To reflect the payment of a $1.3 million premium on the Closing                           
 Date for a prepaid directors’ and officers’ insurance policy for PubCo. Additionally,     
 to recognize the present value of a second $1.3 million premium payment, which is due six 
 months after closing, as an accrual in accrued expenses and other current liabilities.    |

74

| (m) | To reflect that immediately prior to the Closing, 549,500 GSR                                     
 III Class B Ordinary Shares held by the Sponsor become subject to certain vesting or forfeiture   
 conditions. The vesting will be triggered contingent upon various milestones being met subsequent 
 to the Closing. Refer to the Introduction section above for a description of the various          
 milestones.                                                                                       |

The shares that will be subject to the vesting are contingently forfeitable based on the non-achievement of the milestones and will be forfeited by the Sponsor if the milestones are not met within the Conversion Period, as discussed further in the Introduction section above. As the 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

| (n) | To reflect the recognition of (i) the