Company: GDSTR
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014248
Chunk: 31

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 31
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 which allows for the redemption of such public shares
if there is a stockholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to
the Company’s amended and restated certificate of incorporation, or in connection with the Company’s liquidation. In accordance
with the Securities and Exchange Commission (the “SEC”) and its staff’s guidance on redeemable equity instruments, which
has been codified in ASC 480-10-S99, redemption provisions not solely within the control of the Company require Common Stock subject to
redemption to be classified outside of permanent equity.

The Company’s redeemable Common Stock is subject to SEC and its
staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99. If it is probable that the equity
instrument will become redeemable, the Company has the option to either accrete changes in the redemption value over the period from the
date of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption
date of the instrument or to recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the
instrument to equal the redemption value at the end of each reporting period. The Company has elected to recognize the changes over the
period from the date of issuance to the earliest redemption date of the instrument of twelve months. The accretion or remeasurement is
treated as a deemed dividend (i.e., a reduction to retained earnings, or in absence of retained earnings, additional paid-in capital).
Interest earned on investment held in Trust Account, net of applicable taxes, and the extension payments made by the Company are subject
to subsequent accretion of carrying value to redemption value.

As of December 31, 2024 and March 31,2024, the common stock subject
to possible redemption reflected on the balance sheet is reconciled in the following table:

    Common stock subject to possible redemption, March 31, 2023
     
    $
    59,544,769

    Redemption of common stock

    (8,157,801
    )
  
    Plus:

    Subsequent accretion of carrying value to redemption value

    4,039,650

    Common stock subject to possible redemption, March 31, 2024

    55,426,618

    Redemption of common stock

    (38,044,345
    )
  
    Plus