Company: GDSTR
Filing Date: 2025-01-30
Form Type: S-4
Source: 0001213900-25-008051
Chunk: 77

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-01-30
Form: S-4
Chunk 77
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, and employees, which it may be unable to recoup. These provisions and resultant costs may also discourage New Infintium from bringing a lawsuit against its directors and executive officers for breaches of their fiduciary duties and may similarly discourage the filing of derivative litigation by its stockholders against its directors and officers even though such actions, if successful, might otherwise benefit New Infintium and its stockholders. 27 If New Infintium fails to develop or maintain an effective system of internal control over financial reporting, it may not be able to accurately report its financial results or prevent financial fraud. As a result, current and potential stockholders could lose confidence in its financial reporting. Infintium’s independent registered public accounting firm has identified material weaknesses with its internal control structure. New Infintium may also be subject to the risk that its independent registered public accounting firm could communicate to its board of directors that it has deficiencies in its internal control structure that they consider to be “significant deficiencies” or that there is a material weakness in its internal control structure. A “significant deficiency” is defined as a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is more than a remote likelihood that a material misstatement of the entity’s financial statements will not be prevented or detected by the entity’s internal controls. Effective internal control is necessary to provide reliable financial reports and effectively prevent fraud. If New Infintium cannot provide reliable financial reports or prevent fraud, it could be subject to regulatory action or other litigation and its operating results could be harmed. The ineffectiveness of Infintium’s internal control over financial reporting was due to the following material weaknesses, which are indicative of many small companies with small number of staff: •Inadequate segregation of duties consistent with control objectives; •Lack of independent board of directors (as of the balance sheet date) and absence of an audit committee to exercise oversight responsibility related to financial reporting and internal control; •Lack of risk assessment procedures on internal controls to detect financial reporting risks in a timely manner; and •Lack of documentation on policies and procedures that are critical to the accomplishment of financial reporting objectives. Infintium’s management continues to implement measures designed to ensure that control deficiencies contributing to the material weakness are remediated, such that these controls are designed, implemented, and operating effectively. The remediation actions planned include: •Identify gaps in Infintium’s skills base and the expertise of its staff required to meet the financial reporting requirements of a public company; •Establish an