Company: GDSTR
Filing Date: 2025-08-20
Form Type: 10-Q
Source: 0001213900-25-078650
Chunk: 89

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-08-20
Form: 10-Q
Item: Item 8
Chunk 89
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Investments Held in Trust Account

As of June 30, 2025 and March 31, 2025, $19,013,705
and $18,666,931, respectively, of the assets held in the Trust Account were held in money market funds, which are invested in U.S. Treasury
securities. As of June 30, 2025 and March 31, 2025, the Company over withdrew $249,234, net of current provision for the three months
ended June 30, 2025, and $287,911, respectively, of its federal income tax payment from the Trust Account to pay for income taxes
estimates. The Company will deposit this balance back to the Trust Account as soon as the Company will receive the tax refunds from the
Internal Revenue Service and to distribute the $207,991 to the redeeming shareholders tendered for redemption in June 2025.

Rights

The Company accounts for rights as either equity-classified
or liability-classified instruments based on an assessment of the rights’ specific terms and applicable authoritative guidance in
Financial Accounting Standards Board (“FASB”) ASC 480 “Distinguishing Liabilities from Equity” (“ASC 480”)
and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the rights are freestanding financial instruments
pursuant to ASC 480, whether they meet the definition of a liability pursuant to ASC 480, and whether the rights meet all of the requirements
for equity classification under ASC 815, including whether the rights are indexed to the Company’s own common stock and whether
the rights holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control,
among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the
time of rights issuance and as of each subsequent quarterly period end date while the rights are outstanding. The Company accounted for
the rights as equity instruments in accordance with ASC 480 and ASC 815-40.

Warrants

The Company accounts for warrants as either equity-classified
or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance
in ASC 480 and ASC 815. The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, whether
they meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification