Company: GDSTR
Filing Date: 2025-08-05
Form Type: S-4/A
Source: 0001213900-25-071731
Chunk: 257

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-08-05
Form: S-4/A
Chunk 257
---
 excess or slow -movinginventories and recognized $0 inventory obsolescence provision for the three months ended March31, 2025 and approximately $0.6million inventory obsolescence provision for the year ended December31, 2024. Leases With the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 842 — Accounting for Leases(“ASC 842”), operating lease agreements are required to be recognized on the balance sheet as Right -of-Use(“ROU”) assets and corresponding lease liabilities. ROU assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight -linebasis over the lease term. The lease terms may include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option. 138 One of the estimates required to be developed of recognizing the ROU and corresponding lease liabilities is the interest rate. The interest rate implicit in our lease contract entered in November 2024 was not readily determinable. As such, we used an incremental borrowing rate based on the information available on November1, 2024. In the development of the discount rate, we considered our internal borrowing rate, treasury security rates, collateral, and credit risk specific to it, and rates applicable to other recently formed Companies of our size. This resulted in an IBR of approximately 7.85% for the lease entered on November1, 2024, which we believe is most represented of a collateralized term loan of an equal duration in a similar geographic location. Stock-Based Compensation Per the guidance in ASC 718, Compensation — Stock Compensation(“ASC 718”), we measure stock -basedcompensation expense related to awards to employees at the grant date based on the fair value of the award. The fair value of the award that is ultimately expected to vest is recognized as expense on a straight -linebasis over the requisite service period, which is generally the vesting period. Forfeitures of awards are recognized as a component of compensation cost as they occur. We used the Binomial model (or lattice model) as the method for determining the estimated fair value of stock -basedawards. The assumptions that we used in the Binomial model include 1) the fair value of the options refers to the fair value of the ordinary shares as of the equity valuation dates; 2) the exercise price is determined according to each share option agreement; 3)