Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 790

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 790
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.00 per private unit, generating total
gross proceeds of $2,069,000. 

Following
our initial public offering and the private placement, a total of $69,000,000 of the net proceeds were deposited in the trust account.
We intend to use substantially all of the funds held in the trust account, including any amounts representing interest earned on the
trust account (excluding deferred underwriting commissions and less taxes payable) to complete our initial business combination. We may
withdraw interest from the trust account to pay our taxes. To the extent that our equity or debt is used, in whole or in part, as consideration
to complete our initial business combination, the remaining proceeds held in the trust account will be used as working capital to finance
the operations of the target business or businesses, make other acquisitions and pursue our growth strategies. We intend to use the funds
held outside the trust account primarily for identifying and evaluating prospective acquisition candidates, performing business due diligence
on prospective target businesses, traveling to and from the offices, plants or similar locations of prospective target businesses, reviewing
corporate documents and material agreements of prospective target businesses, selecting the target business to acquire and structuring,
negotiating and consummating the business combination.

For
the year ended December 31, 2024, cash used by operating activities was $196,752, primarily due to prepayment of formation and operational
costs. Net cash used in investing activates was $69,000,000 to invest the cash in a trust account established for the benefit of our
public shareholders, with Wilmington Trust National Association acting as trustee. Net cash provided by financing activities was $69,608,181,
primarily due to the consummation the IPO of 6,900,000 units at $10.00 per unit, generating gross proceeds of $69,000,000 and the proceeds
from sale of units to the founder in private placement generating total gross proceeds of $2,069,000. Offering cost amounted to $1,485,819,
consisting of $1,035,000 of underwriting commissions and $450,819 of other offering costs. As of December 31, 2024, we had cash at bank
of $411,429.

On
December 31, 2024, the Company had working capital of $339,724, excluding deferred underwriting commissions and the available cash held
in the Trust Account for marketable securities, which indicated a lack of liquidity it needed to sustain