Company: GDSTR
Filing Date: 2025-07-18
Form Type: S-4/A
Source: 0001213900-25-065671
Chunk: 254

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-07-18
Form: S-4/A
Chunk 254
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termpromissory note with a related party, lender D, with proceeds to the Company of $500,000 and an interest rate of zero percent. As of March31, 2025 and December 31, 2024, the balance of the current related party loan was $500,000 and $500,000, respectively. In August 2024, the Company entered into a promissory note with a related party, lender E, with proceeds to the Company of $1,000,000 and an interest rate of zero percent; as of March31, 2025 and December 31, 2024, the balance of the noncurrent related party loan was $1,000,000 and $1,000,000, respectively. Critical Accounting Estimates Our significant accounting policies are more fully described in the notes to our unaudited condensed consolidated financial statements for the three months ended March31, 2025 and the audited financial statements for the fiscal year ended December31, 2024, included elsewhere in this proxy statement/information statement/prospectus. We believe that the accounting estimates below are critical for one to fully understand and evaluate our financial condition and results of operations. Use of Estimates The financial statements have been prepared in accordance with U.S. GAAP and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts. Significant estimates include amounts for warranty reserves, inventory, recognition of right of use asset and lease liabilities, accounts receivable exposures, and stock -basedcompensation expense. Accounts Receivable, net Accounts receivable is stated at the net amount expected to be collected. All customers are granted credit on a short -termbasis and related credit risks are considered minimal. We maintain an allowance for expected credit losses resulting from the inability of its customers to make required payments. Our allowance is established based on historical patterns of accounts receivable collections and expected losses, including consideration of general economic conditions. Outstanding accounts receivable balances are reviewed quarterly or more frequently when circumstances indicate a review is warranted, for example if there is a significant change in the aging of our receivables or a customer’s financial condition. Write -offsare recorded at the time a customer receivable is deemed uncollectible and collection efforts have been exhausted. As of March31, 2025 and December31, 2024, management estimated that an allowance for expected credit losses was not necessary based on historical collection trends and customer credit evaluations and the allowance amount was $0. Inventory, net