Company: GDSTR
Filing Date: 2025-07-18
Form Type: S-4/A
Source: 0001213900-25-065671
Chunk: 255

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-07-18
Form: S-4/A
Chunk 255
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 Finished goods, work -in-process, and raw materials inventories are valued at the lower of cost or market, as determined by the moving average unit cost method. Manufacturing and maintenance supplies are valued at cost. Inventory costs include material, labor and manufacturing overhead. The need for a provision for estimated losses from obsolete, excess or slow -movinginventories is reviewed periodically. As of March31, 2025 and December31, 2024, management used our inventory usage rate to estimate its losses from obsolete, excess or slow -movinginventories and recognized $0 inventory obsolescence provision for the three months ended March31, 2025 and approximately $0.6million inventory obsolescence provision for the year ended December31, 2024. Leases With the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 842 — Accounting for Leases(“ASC 842”), operating lease agreements are required to be recognized on the balance sheet as Right -of-Use(“ROU”) assets and corresponding lease liabilities. ROU assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight -linebasis over the lease term. The lease terms may include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option. 138 One of the estimates required to be developed of recognizing the ROU and corresponding lease liabilities is the interest rate. The interest rate implicit in our lease contract entered in November 2024 was not readily determinable. As such, we used an incremental borrowing rate based on the information available on November1, 2024. In the development of the discount rate, we considered our internal borrowing rate, treasury security rates, collateral, and credit risk specific to it, and rates applicable to other recently formed Companies of our size. This resulted in an IBR of approximately 7.85% for the lease entered on November1, 2024, which we believe is most represented of a collateralized term loan of an equal duration in a similar geographic location. Stock-Based Compensation Per the guidance in ASC 718, Compensation — Stock Compensation(“ASC 718”), we measure stock -basedcompensation expense related to awards to employees at the grant date based on the fair value of the award. The fair value of the award that is ultimately expected to vest is recognized as expense on a straight -linebasis over the requisite service period, which is