Company: GDSTR
Filing Date: 2025-06-16
Form Type: 10-K
Source: 0001213900-25-054825
Chunk: 778

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-06-16
Form: 10-K
Item: Item 5
Chunk 778
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not be adjusted for issuances of common stock at a price below its exercise price.

NOTE 8
— STOCKHOLDERS’ DEFICIT

Common
Stock

The
Company is authorized to issue up to 15,000,000 shares of common stock, par value $0.0001 per share. As of March 31, 2025 and 2024, there
were 1,846,250 shares of common stock issued and outstanding, respectively.

Rights

As
of March 31, 2025 and 2024, there were 5,750,000 Public Rights and 351,250 Private Rights outstanding.  Except
in cases where the Company is not the surviving company in a Business Combination, each holder of a right will automatically receive
one-tenth (1/10) of one share of common stock upon consummation of its initial Business Combination. In the event the Company will not
be the surviving company upon completion of its initial Business Combination, each holder of a right will be required to affirmatively
convert his, her or its rights in order to receive the one-tenth (1/10) of a share underlying each right upon consummation of the Business
Combination. The Company will not issue fractional shares in connection with an exchange of rights. Fractional shares will either be
rounded down to the nearest whole share or otherwise addressed in accordance with the applicable provisions of the Delaware law. As a
result, the holder must hold rights in multiples of 10 in order to receive shares for all of their rights upon closing of a Business
Combination. If the Company is unable to complete an initial Business Combination within the required time period and the Company redeems
the public shares for the funds held in the Trust Account, holders of rights will not receive any of such funds for their rights and
the rights will expire worthless. The Company accounted for the 5,750,000 rights issued with the IPO as equity instruments in accordance
with ASC 480 and ASC 815. The Company accounted for the rights as an expense of the IPO resulting in a charge directly to stockholders’
equity. The Company estimates that the fair value of the rights is approximately $4.4 million, or $0.76 per Unit, using the Black-Scholes
Option Pricing Model. The fair value of the rights is estimated as of the date of grant using the following assumptions: (1) expected
volatility of 12.