Company: NKLR
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111171
Chunk: 21

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 aligned with all agreements and budget.

Note 12. Income Taxes

The Company recorded no provision
for income taxes for the three and nine months ended September 30, 2025 and 2024.

Deferred tax assets and deferred
tax liabilities are recognized based on temporary differences between the financial reporting and tax basis of assets and liabilities
using statutory rates. Management of the Company has evaluated the positive and negative evidence bearing upon the realizability of its
deferred tax assets. Under the applicable accounting standards, management has considered the Company’s history of losses and concluded
that it is more likely than not that the Company will not recognize the benefits of the deferred tax assets. Accordingly, a full valuation
allowance has been established against the Company’s otherwise recognizable net deferred tax assets.

Note 13. Subsequent Events

The Company has evaluated subsequent
events through the date the financial statements were available to be issued, and determined that there have been no events that have
occurred that would require adjustments to disclosures in the financial statements other than the following:

14

Conversion of Bridge Loans

Upon the closing of the Merger
(see “Business Combination and Public Listing” below), all of the Bridge Loans (the Q3 Bridge Loans and the Bridge
Loans discussed in Note 8 - Bridge Loans and Warrants) were converted into an aggregate of 851,483 ordinary shares of Terra Innovatum
Global N.V. at a conversion price of $7.00 per share. In connection with the conversion, the Company issued to the lenders:

●Warrants to purchase up to 851,483 ordinary shares at an exercise price of $11.50 per share; and

●Warrants to purchase up to 851,483 ordinary shares at an exercise price of $15.00 per share.

These warrants have a term
of 36 months from the date of issuance and were issued pursuant to the terms of the amended bridge loan agreements.

Business Combination and Public Listing

In October 2025, Terra Innovatum
Global N.V. consummated the Merger, pursuant to the Business Combination Agreement dated April 21, 2025. As part of the transaction, Terra
Innovatum Global Srl. converted into a Dutch public limited liability company, Terra Innovatum Global N.V.

Following the Merger, GSR
III merged with and into GSR III Cayman Merger Sub, a wholly owned subsidiary, with GSR III surviving as a wholly owned subsidiary of
Terra Innov