Company: GDSTR
Filing Date: 2025-08-20
Form Type: 10-Q
Source: 0001213900-25-078650
Chunk: 109

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-08-20
Form: 10-Q
Item: Item 8
Chunk 109
---
 due to the valuation allowance on the deferred tax assets.

The Company’s net deferred tax assets (liabilities)
were as follows as of:

    June 30, 2025  
    March 31, 2025 
  
    Deferred tax assets: 

    Start-up/organization costs 
    $655,503  
    $575,740 
  
    Deferred tax liability: 

    Accrued dividend income 
     (13,493) 
     (13,892)
  
    Total deferred tax assets 
     642,010  
     561,848 
  
    Valuation allowance 
     (655,503) 
     (575,740)
  
    Deferred tax liability, net 
    $(13,493) 
    $(13,892)

As of June 30, 2025 and March 31, 2025, the Company
had $3,121,444 and $2,741,621 of U.S. federal and state gross deferred tax assets on start-up/organization costs carryovers available
to offset future taxable income over the period of 180 months upon the consummation of the Business Combination. In assessing the realization
of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will
not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the
periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled
reversal of deferred tax assets, projected future taxable income and tax planning strategies in making this assessment. After consideration
of all of the information available, management believes that significant uncertainty exists with respect to future realization of the
deferred tax assets and has therefore established a full valuation allowance of $655,503 and $575,740 as of June 30, 2025 and March 31,
2025, respectively. The valuation allowance increased by $79,763 from March 31, 2025 to June 30, 2025.

As of June 30, 2025 and March 31, 2025, the Company prepaid income
taxes of $249,234, net of current provision for the three months ended June 30, 2025, and $287,911, respectively. The Company withdrew
the prepaid income taxes balance from the Trust Account as the Company was required to pay estimated federal income taxes