Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 100

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 100
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Net Cash used in Operating Activities

Net cash used in operating activities for the year
ended December 31, 2024 was $41,192. This amount was related to (i) a net loss of $33,581; (ii) working capital changes
of $11,385; offset by (iii) $3,774 in changes in other non-current liabilities.

Net cash used in operating activities for the year
ended December 31, 2023 was $3,889. This amount was related to (i) a net loss of $4,472; (ii) working capital changes of
$1,478; offset by (iii) $2,061 in changes in other non-current liabilities.

Net Cash provided by Financing Activities

Net cash provided by financing activities for the
year ended December 31, 2024 consisted of proceeds of $111,582 from interest-free loan agreement that we entered into with our shareholders
on December 18, 2024.

There were no financing activities for the year
ended December 31, 2023.

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Critical Accounting Policies and Estimates

Critical Accounting Policy: Warrants

Our financial statements are prepared in accordance
with U.S. GAAP. In connection with our financing activities, we have entered into bridge loan agreements that include detachable warrants.
The accounting treatment for these instruments is governed by ASC 480-10 (Distinguishing Liabilities from Equity) and ASC 815-40 (Contracts
in an Entity’s Own Equity). Based on the terms of the instruments, we first determine whether the warrants should be classified
as equity or liability. Warrants that do not meet all criteria for equity classification are initially recorded at fair value, classified
as a liability and subsequently remeasured at each reporting period. Warrants that meet all equity classification criteria are recorded
at their initial fair value and recognized as a component of additional paid-in capital. This accounting policy is considered critical
due to the complexity of the applicable guidance, the judgment required in classification, and the potential for material impact on our
financial statements.

Critical Accounting Estimate: Fair Value of Warrants

The valuation of both equity-classified and liability-classified
warrants involves significant estimation uncertainty. We use option pricing models that require management to make assumptions about key
inputs, including expected volatility, risk-free interest rates, term to expiration, and the fair value of the underlying equity. These
inputs