Company: GDSTR
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014248
Chunk: 88

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 88
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ation, 3,395,590 shares and 758,539 of Common
Stock of the Company were tendered for redemption resulting in $38,030,691 and $8,157,801 paid from the Trust Account to redeeming
stockholders in June 2024 and October 2023, respectively. In June 2024, the Company distributed additional $13,653 from the Trust Account
in connection with the 758,539 shares of Common Stock of the Company that were tendered for redemption in October 2023. As a result of
the redemptions, as of December 31, 2024 and March 31, 2024, the Company has 1,595,871 and 4,991,461 shares, respectively, of
common stock subject to possible redemption at the redemption amount that were presented at redemption value as temporary equity, outside
of the stockholders’ (deficit) equity section of the Company’s balance sheet that are 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