Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 29

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 29
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 not control these market conditions, which are, moreover,
often affected by political and economic factors beyond our control. Decreases in energy prices, or changes in nuclear energy costs relative
to other forms of energy, may adversely affect our business. To the extent that these uncertainties cause suppliers and customers to
be more cost sensitive or to adjust their business plans and operations, decreased energy prices may have an adverse effect on our results
of operations and financial condition.

The cost of electricity generated from nuclear sources may not be cost competitive with other electricity generation sources in some markets, which could materially and adversely affect our business.

Many U.S. electricity markets price electric
energy, capacity, and/or ancillary services on a competitive basis, with market prices subject to substantial fluctuations. Other markets
remain heavily regulated by state or local utility regulatory authorities, with power purchase decisions by electric utilities subject
to various competitiveness or prudence tests. As a result of competitive pressures, some electricity markets experience low marginal
energy prices at certain times due to a combination of subsidized generating resources, competitors with low-cost or no-cost fuel sources,
or market-design features that create incentives for certain attributes or deliver revenue in unpredictable ways over time, and Terra
Innovatum may not be able to compete in these markets unless the benefits of the low-carbon, reliable and/or resilient energy generation
provided by the SOLO is sufficiently valued. Even in markets that price reliable capacity on a long-term basis, there is no guarantee
that our customers’ SOLO units will be sufficiently low-cost so as to clear auction-style capacity markets, and clearing in any
one year is no guarantee of clearing in successive years. Moreover, our SOLO reactor will likely serve a specific market segment
of smaller distributed generation, remote application or industrial customers, who may have lower cost power/heat alternatives available
to them, especially in the near-term.

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Given the relatively lower electricity prices and
higher availability of power in the United States when compared to many international markets, the risk may be greater with respect
to business in the United States. Regardless of jurisdiction, however, failure of our MMRs to provide competitively price electricity
or heat could materially and adversely affect our business.

We and our customers operate in a politically sensitive environment, and the public perception of nuclear energy can affect our customers and us.

Successful execution of our business model is dependent
upon public support for nuclear power in the United States and other countries. The risks associated with uses of radioactive