Company: GDSTR
Filing Date: 2025-08-20
Form Type: 10-Q
Source: 0001213900-25-078650
Chunk: 105

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-08-20
Form: 10-Q
Item: Item 8
Chunk 105
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 not the surviving company in a Business
Combination, each holder of a right will automatically receive one-tenth (1/10) of one share of common stock upon consummation of its
initial Business Combination. In the event the Company will not be the surviving company upon completion of its initial Business Combination,
each holder of a right will be required to affirmatively convert his, her or its rights in order to receive the one-tenth (1/10) of a
share underlying each right upon consummation of the Business Combination. The Company will not issue fractional shares in connection
with an exchange of rights. Fractional shares will either be rounded down to the nearest whole share or otherwise addressed in accordance
with the applicable provisions of the Delaware law. As a result, the holder must hold rights in multiples of 10 in order to receive shares
for all of their rights upon closing of a Business Combination. If the Company is unable to complete an initial Business Combination within
the required time period and the Company redeems the public shares for the funds held in the Trust Account, holders of rights will not
receive any of such funds for their rights and the rights will expire worthless. The Company accounted for the 5,750,000 rights issued
with the IPO as equity instruments in accordance with ASC 480 and ASC 815. The Company accounted for the rights as an expense of the IPO
resulting in a charge directly to stockholders’ equity. The Company estimates that the fair value of the rights is approximately
$4.4 million, or $0.76 per Right, using the Black-Scholes Option Pricing Model. The fair value of the rights is estimated as of the date
of grant using the following assumptions: (1) expected volatility of 12.96%, (2) risk-free interest rate of 0.75%, (3) expected life of
1 year, (4) exercise price of $0.00 and (5) stock price of $9.03. 

20

Warrants

As of June 30, 2025 and March 31, 2025, there
were 5,750,000 Public Warrants and 351,250 Private Warrants outstanding.  Each redeemable warrant entitles the
holder thereof to purchase one-half (1/2) of one share of common stock at a price of $11.50 per full share, subject to adjustment as described
in this prospectus. The warrants will become