Company: GDSTR
Filing Date: 2025-08-20
Form Type: 10-Q
Source: 0001213900-25-078650
Chunk: 108

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-08-20
Form: 10-Q
Item: Item 8
Chunk 108
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 stock is not
qualified or exempt from qualification in the jurisdictions in which the holders of the warrants reside, the Company will not be required
to net cash settle or cash settle the warrant exercise, the warrants may have no value, the market for the warrants may be limited and
the warrants may expire worthless.

The private warrants have terms and provisions
that are identical to those of the warrants being sold as part of the units in the Initial Public Offering except that the private warrants
will be entitled to registration rights. The private warrants (including the common stock issuable upon exercise of the private warrants)
will not be transferable, assignable or salable until 30 days after the completion of our initial business combination except to permitted
transferees.

The Company accounted for the warrant as a cost
of the IPO resulting in a charge directly to stockholders’ equity. The Company estimates that the fair value of the warrants is
approximately $1.2 million, or $0.21 per Warrant, using the Black-Scholes Option Pricing Model. The fair value of the warrants is estimated
as of the date of grant using the following assumptions: (1) expected volatility of 12.96%, (2) risk-free interest rate of 1.16%, (3)
expected life of 5 years, (4) exercise price of $11.50 and (5) stock price of $9.03.

NOTE 9 — INCOME TAXES

The Company’s taxable income primarily consists
of interest earned on investment held in Trust Account.

The income tax provision (benefit) consists of
the following:

    For the Three Months Ended  
    For the Three Months Ended 

    June 30, 2025  
    June 30, 2024 

    Current 

    Federal 
    $38,677  
    $149,752 
  
    State 
     —  
     — 
  
    Deferred 

    Federal 
     (399) 
     (6,750)
  
    State 
     —  
     — 
  
    Income tax provision 
    $38,277  
    $143,002 

22

The Company’s effective tax rate was (19.4)
% and 86.4% for the three months ended June 30, 2025 and 2024, respectively. The effective tax rate differs from the statutory tax
rate of 21.0% primarily