Company: GDSTR
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014248
Chunk: 107

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 107
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31, 2024 and 2023, respectively. The effective tax rate differs from the statutory tax
rate of 21.0% primarily due to the valuation allowance on the deferred tax assets.

The Company’s net deferred tax assets (liabilities) were as follows
as of:

    December 31, 2024  
    March 31, 2024 
  
    Deferred tax assets: 

    Start-up/organization costs 
    $532,650  
    $371,785 
  
    Deferred tax liability: 

    Accrued dividend income 
     (14,494) 
     (51,045)
  
    Total deferred tax assets 
     518,156  
     320,740 
  
    Valuation allowance 
     (532,650) 
     (371,785)
  
    Deferred tax liability, net 
    $(14,494) 
    $(51,045)

As of December 31, 2024 and March 31, 2024, the
Company had $2,536,430 and $1,770,404 of U.S. federal and state gross deferred tax assets on start-up/organization costs carryovers available
to offset future taxable income over the period of 180 months upon the consummation of the Business Combination. In assessing the realization
of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will
not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the
periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled
reversal of deferred tax assets, projected future taxable income and tax planning strategies in making this assessment. After consideration
of all of the information available, management believes that significant uncertainty exists with respect to future realization of the
deferred tax assets and has therefore established a full valuation allowance of $532,650 and $371,785 as of December 31, 2024 and March
31, 2024, respectively. The valuation allowance increased by $160,865 from March 31, 2024 to December 31, 2024.

As of December 31, 2024 and March 31, 2024, the
Company prepaid income taxes of $192,613 and $0, respectively. The Company withdrew the prepaid income taxes balance from the Trust Account