Company: GDSTR
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014248
Chunk: 73

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 73
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 such shares
if the Company fails to complete its initial Business Combination within 12 months (or up to 21 months if the Company extends the period
of time to consummate a Business Combination) from the effective date of its registration statement. The shares have been deemed compensation
by FINRA and are therefore subject to a lock-up for a period of 180 days immediately following the commencement of sales of the offering
pursuant to Rule 5110(e)(1) of FINRA’s Rules. Pursuant to FINRA Rule 5110(e)(1), these securities may not be sold, transferred,
assigned, pledged or hypothecated nor may they be the subject of any hedging, short sale, derivative, put or call transaction that would
result in the economic disposition of the securities by any person for a period of 180 days immediately following the commencement of
sales of this offering except to any underwriter and selected dealer participating in the offering and their officers or partners, registered
persons or affiliates. The Company used a Black-Scholes option-pricing Model that values the Representative Shares granted to Maxim Group
LLC and/or its designees. The key inputs into the Binomial model were (i) risk- free interest rate of 0.75%, (ii) volatility of 12.96%,
(iii) expected life of 1 year, and (iv) 85% probability of business combination. According to the Black-Scholes option-pricing model,
the fair value of the 57,500 Representative Shares was approximately $441,025 or $7.67 per share, and were recorded as offering costs
during the three months ended March 31, 2022.

The Company also sold to Maxim, for $100, a Unit Purchase Option (“UPO”)
to purchase 270,250 Units exercisable at $11.00 per Unit, for an aggregate exercise price of $2,972,750, commencing on the later of the
first anniversary of the effective date of the registration statement related to the Initial Public Offering and the consummation of a
Business Combination. The UPO may be exercised for cash or on a cashless basis, at the holder’s option, and expires five years from
the effective date of the registration statement related to the Initial Public Offering. The Units issuable upon exercise of the option
are identical to those offered in the Initial Public Offering. The Company accounted for the unit purchase option, inclusive of the receipt
of the