Company: GDSTR
Filing Date: 2025-06-16
Form Type: 10-K
Source: 0001213900-25-054825
Chunk: 951

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-06-16
Form: 10-K
Item: Item 7
Chunk 951
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, 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.

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 assets or liabilities, or (iv) inputs that are derived
    principally from or corroborated by market through correlation or other means.

    ●
    Level 3 - Valuations based
    on inputs that are unobservable and significant to the overall fair value measurement.

The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value
Measurements” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term
nature.

Income
Taxes

The
Company accounts for income taxes under ASC 740 Income Taxes (“ASC 740”). ASC 740 requires the recognition of deferred tax
assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities
and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation
allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized.

ASC
740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes
a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected