Company: GDSTR
Filing Date: 2025-05-14
Form Type: S-4/A
Source: 0001213900-25-043297
Chunk: 241

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-05-14
Form: S-4/A
Chunk 241
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 accounts receivable exposures, and stock -basedcompensation expense. 130 Accounts Receivable, net Accounts receivable is stated at the net amount expected to be collected. All customers are granted credit on a short -termbasis and related credit risks are considered minimal. We maintain an allowance for expected credit losses resulting from the inability of its customers to make required payments. Our allowance is established based on historical patterns of accounts receivable collections and expected losses, including consideration of general economic conditions. Outstanding accounts receivable balances are reviewed quarterly or more frequently when circumstances indicate a review is warranted, for example if there is a significant change in the aging of our receivables or a customer’s financial condition. Write -offsare recorded at the time a customer receivable is deemed uncollectible and collection efforts have been exhausted. As of December31, 2024, management estimated that an allowance for expected credit losses was not necessary based on historical collection trends and customer credit evaluations and the allowance amount was $0. Inventory, net Finished goods, work -in-process, and raw materials inventories are valued at the lower of cost or market, as determined by the moving average unit cost method. Manufacturing and maintenance supplies are valued at cost. Inventory costs include material, labor and manufacturing overhead. The need for a provision for estimated losses from obsolete, excess or slow -movinginventories is reviewed periodically. As of December31, 2024, management used our inventory usage rate to estimate its losses from obsolete, excess or slow -movinginventories and recognized 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. 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