Company: GDSTR
Filing Date: 2025-04-24
Form Type: S-4/A
Source: 0001213900-25-034782
Chunk: 231

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-04-24
Form: S-4/A
Chunk 231
---
 |     |   41,055 |   |     |  40,364 |     |       98.3 |
| Warranty             |     |                          (5,198 | ) |     | (288,487 | ) |     | 283,289 |     |       98.2 |
| Total                |     |                         (84,198 | ) |     | (461,673 | ) |     | 377,475 |     |       81.8 |

Gross loss was approximately $0.1 million for the year ended December 31, 2024 and approximately $0.5 million for the year ended December 31, 2023. The gross loss margin for the year ended December 31, 2024 decreased to (1.7) % from (16.5) % for the year ended December 31, 2023. The decrease primarily due to the (i) economies of scale, which allowed the cost of power cell components to be purchased at a lower cost. Additionally, majority of the units

122

sold during 2024 were produced without accumulating inventory, reducing holding costs and minimizing potential write -downs. These factors contributed to a more efficient cost structure and improved gross loss margin as compared to the 2023; (ii) warranty gross loss decreased due to revenue growth from higher sales and effective cost management, which allowed the company to offset rising labor fees. Improved operational efficiency also contributed to maintaining a lower gross loss. We also expect our gross loss will turn into gross profit in 2025 due to economies of scale and continued improvement of operational efficiency. Operating Expenses Our operating expenses include selling, general and administrative expenses, research and development expenses and allowance for credit losses. The following table sets forth the components of operating expenses for the years indicated:

|                                     |     | For the Year Ended December 31, 
                            2024 |     |      2023 |     |    Change |   |     | Percentage 
     Change |   |
|:------------------------------------|:----|--------------------------------:|:----|----------:|:----|----------:|:--|:----|-----------:|:--|
|                                     |     |                             US$ |     |       US$ |     |       US$ |   |     |          % |   |
| Selling, general and administrative |     |                       6,633,652 |     | 4,122,472 |     | 2,511