Company: NKLR
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001213900-25-063846
Chunk: 297

Company: Terra Innovatum Global N.V.
Filing Date: 2025-07-15
Form: S-4/A
Chunk 297
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 in debt issuance costs, resulting in a net cash inflow of $4.8 million. Additionally, in connection with the Bridge Loans, Terra Innovatum committed to issue warrants following the consummation of the Business Combination: These warrants are considered outstanding for financial reporting purposes and are classified as equity or liabilities depending on their terms. •Equity -ClassifiedWarrants: Warrants exercisable at $11.50 or $15.00 per share will be issued upon Closing to certain lenders and qualify for equity classification under ASC 815 -40. $1.0 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. 140 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