Company: GDSTR
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112608
Chunk: 32

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 32
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 control of the Company require Common Stock subject to
redemption to be classified outside of permanent equity.

The Company’s redeemable Common Stock is
subject to SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99. If it is probable
that the equity instrument will become redeemable, the Company has the option to either accrete changes in the redemption value over the
period from the date of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the
earliest redemption date of the instrument or to recognize changes in the redemption value immediately as they occur and adjust the carrying
amount of the instrument to equal the redemption value at the end of each reporting period. The Company has elected to recognize the changes
over the period from the date of issuance to the earliest redemption date of the instrument of twelve months. The accretion or remeasurement
is treated as a deemed dividend (i.e., a reduction to retained earnings, or in absence of retained earnings, additional paid-in capital).
Interest earned on investment held in Trust Account, net of applicable taxes, and the extension payments made by the Company are subject
to subsequent accretion of carrying value to redemption value.

As of September 30, 2025 and March 31, 2025, the
common stock subject to possible redemption reflected on the unaudited condensed balance sheets are reconciled in the following table:

    Shares  
    Amount 
  
    Common stock subject to possible redemption, March 31, 2024 
     4,991,461  
    $55,426,618 
  
    Redemption of common stock 
     (3,395,590) 
     (38,044,345)
  
    Plus: 

    Subsequent accretion of carrying value to redemption value 
        
     1,625,328 
  
    Common stock subject to possible redemption, March 31, 2025 
     1,595,871  
     19,007,601 
  
    Payables due to redeeming stockholders 
     (1,152,975) 
     (13,893,689)
  
    Plus: 

    Subsequent accretion of carrying value to redemption value 
        
     463,292 
  
    Common stock subject to possible redemption, September 30, 2025