Company: GDSTR
Filing Date: 2025-01-30
Form Type: S-4
Source: 0001213900-25-008051
Chunk: 384

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-01-30
Form: S-4
Chunk 384
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 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. The Company uses the Binomial model (or lattice model) as the method for determining the estimated fair value of stock -basedawards. Refer to Note 14 for more information on assumptions used in estimated stock -basedcompensation expense. Warranty Reserve The Company 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 the Company’s reserve estimate would be based on an analysis of historical warranty data as well as current trends and information. As of September 30, 2024 and December 31, 2023, no warranty reserve is recorded. Net Loss per Share Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding, plus the number of additional common shares that would have been outstanding if the common share equivalents had been issued (computed using the treasury stock or if converted method), if dilutive. As of September 30, 2024 and December 31, 2023, there were no dilutive securities. Litigation The Company accounts for litigation losses in accordance with ASC 450 — Contingencies(“ASC 450”). Under ASC 450, loss contingency provisions are recorded for probable losses at management’s best estimate of a loss, or when a best estimate cannot be made, a minimum loss contingency amount is recorded. Legal fees are recorded as incurred. Concentration of Risk and Guarantees The Company had two customers for the nine months ended September 30, 2024 that accounted for approximately 97% of its revenue and approximately 95% of its accounts receivable; for the nine months ended September 30, 2023, the Company had one customer that accounted for approximately 61% of its revenue and approximately 75% of its accounts receivable. Recently Issued Accounting Pronouncements The Company considers the applicability and impact of