Company: GDSTR
Filing Date: 2025-04-24
Form Type: S-4/A
Source: 0001213900-25-034782
Chunk: 239

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-04-24
Form: S-4/A
Chunk 239
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 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 generally the vesting period. Forfeitures of awards are recognized as a component of compensation cost as they occur. We used the Binomial model (or lattice model) as the method for determining the estimated fair value of stock -basedawards. The assumptions that we used in the Binomial model include 1) the fair value of the options refers to the fair value of the ordinary shares as of the equity valuation dates; 2) the exercise price is determined according to each share option agreement; 3) the risk -freeinterest rate is based on the rates available at the time of the grant for zero -couponU.S. government issues with a remaining term equal to the option’s expected life; 4) the average life of an option is based on both historical and projected exercise and lapsing data; 5) expected volatility is based on implied volatilities from historical volatilities of comparable companies; and 6) dividend yield is based on the option’s exercise price and annual dividend rate at the time of grant, which is zero. 127 Warranty Reserve We may record a warranty reserve or liability on the balance sheet related to its known and potential exposure to warranty claims in the event its products fail to perform as expected, and in the event it may be required to participate in certain costs incurred by customers. The recorded warranty reserve balance involves judgment and estimates, and our reserve estimate would be based on an analysis of historical warranty data as well as current trends and information. As of