Company: GDSTR
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112608
Chunk: 25

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 25
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 of uncertain future events. Accordingly, common stock subject to possible redemption is presented at redemption
value as temporary equity, outside of the stockholders’ equity section of the Company’s balance sheet.

The Company has made a policy election in accordance
with ASC 480-10-S99-3A and recognizes changes in redemption value in additional paid-in capital (or accumulated deficit in the absence
of additional paid-in capital) over an expected 12-month period leading up to a Business Combination.

Concentration of Credit Risk

Financial instruments that potentially subject
the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal
Depository Insurance Coverage of $250,000. The Company has not experienced losses on these accounts.

Fair Value of Financial Instruments

ASC Topic 820 “Fair Value Measurement”
defines fair value, the methods used to measure fair value and the expanded disclosures about fair value measurements. Fair value is the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between the buyer and the seller
at the measurement date. In determining fair value, the valuation techniques consistent with the market approach, income approach and
cost approach shall be used to measure fair value. ASC Topic 820 establishes a fair value hierarchy for inputs, which represent the assumptions
used by the buyer and seller in pricing the asset or liability. These inputs are further defined as observable and unobservable inputs.
Observable inputs are those that buyer and seller would use in pricing the asset or liability based on market data obtained from sources
independent of the Company. Unobservable inputs reflect the Company’s assumptions about the inputs that the buyer and seller would
use in pricing the asset or liability developed based on the best information available in the circumstances.

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The fair value hierarchy is categorized into three
levels based on the inputs as follows:

    ●
    Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not being applied. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.

    ●
    Level 2 - Valuations based on (i) quoted prices in active markets for similar assets and liabilities, (ii) quoted prices in markets that are not active for identical or similar assets, (iii) inputs other than quoted prices for the