Company: GDSTR
Filing Date: 2025-06-16
Form Type: 10-K
Source: 0001213900-25-054825
Chunk: 98

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-06-16
Form: 10-K
Item: Item 1
Chunk 98
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 subject to redemption. See
Note 4 for further details.

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.

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