Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 135

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 135
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 38 |   |
| Total adjustment to derecognize GSR III’s accumulated deficit          |     | $ |  8,725 |   |

<div align='center'>79</div>

| (i) | To reflect the issuance of a warrant, classified within permanent                                                                     
 equity, to PAC as a success fee upon the Closing. The warrant provides PAC the right to acquire up to 1,000,000 PubCo Ordinary Shares 
 at an exercise price of $7.00 per share, with an exercise period of 5.0 years. The issuance of the warrant was accounted for in       
 accordance with SAB Topic 5.A as a specific incremental cost associated with the equity offering, with the grant date fair value      
 recorded as a decrease to additional paid-in capital with a corresponding increase to additional paid-in capital. This resulted in a  
 $0 impact to additional paid-in capital.                                                                                              |

The warrant was recorded at its estimated fair value on the
Closing Date, determined using the Black Scholes-Merton option-pricing model. The assumptions used in deriving the grant date fair value
of the warrant were as follows: (i) an underlying share price of $10.00 per share. Under U.S GAAP, fair value measurements should
reflect the price at which an asset or liability could be exchanged in an orderly transaction between market participants at the measurement
date. The $10.00 per share underlying is the initial public offering price of GSR III, which would reflect the market participant
price of an exchange of the equivalent GSR III Ordinary shares, which would convert on a one-for-one basis to PubCo Ordinary Shares
upon the Closing. (ii) An exercise price of $7.00 per share, (iii) a risk-free interest rate of 4.38%, corresponding to
the U.S Treasury rate for a period equal to the expected term of the warrant, (iv) an expected term of 5.0 years, as the warrant
can be exercised through a 5.0 year period from the Closing, (v) a volatility of 98.2%. PubCo lacks its own historical stock
data. Therefore, it estimates its expected stock volatility based primarily on the historical volatility of a publicly
traded set of peer companies. (vi) A dividend yield of 0%; PubCo does not plan to pay cash dividends on its PubCo

Ordinary Shares in the foreseeable future, and, therefore,
uses an expected dividend yield of zero