Company: NKLR
Filing Date: 2025-08-01
Form Type: S-4/A
Source: 0001213900-25-070223
Chunk: 299

Company: Terra Innovatum Global N.V.
Filing Date: 2025-08-01
Form: S-4/A
Chunk 299
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0 million of the proceeds was allocated to these warrants, which are exercisable for 583,886 PubCo Ordinary Shares, resulting in a $1.0 million increase to additional paid -incapital on the unaudited pro forma condensed combined balance sheet as of March31, 2025. •Liability -ClassifiedWarrants: Warrants, with certain terms dependent on whether a specified funding threshold (the “Bridge Package”) is met, were classified as a liability as they did not meet the indexation guidance under ASC 815 -40. $1.5 million of the proceeds were allocated to these warrants, exercisable for 376,908 PubCo Ordinary Shares, resulting in a $1.5 million increase to warrant liability on the unaudited pro forma condensed combined balance sheet as of March31, 2025. The liability -classifiedwarrants were recorded at fair value, and the remaining proceeds were allocated between the Bridge Notes the equity -classifiedwarrants on the basis of their relative fair values. The fair values were determined using a Black -Scholes -Mertonmodel with assumptions including a $10.00share price, 3.9%–4.1% risk -freerate, 106%–109% volatility, and a 13.2%–15.1% discount for lack of marketability. As a result, a $2.6 million debt discount was recognized, reducing the carrying value of the Bridge Loans to $2.3 million recognized in convertible bridge loans on the unaudited pro forma condensed combined balance sheet as of March 31, 2025. 142 Lastly, an aggregate of $100.0 thousand in debt issuance costs were allocated proportionally: $58.2 thousand to the Bridge Loans (recorded as a reduction to convertible bridge loans and amortized over the life of the Bridge Loans), $27.4 thousand to equity -classifiedwarrants (recorded as a reduction to additional paid -incapital), and $14.4 thousand to liability -classifiedwarrants (expensed immediately in -linewith ASC 825 -10). Pro Forma Adjustments for Other Material Events: (aa)To reflect actual and expected dividends on investments held in the Trust Account from April 1, 2025 through the estimated Closing Date of September 30, 2025. (bb) Effective June 6, 2025, Terra Innovatum determined that the Bridge Package funding threshold had been met. As a result,