Company: DTSQ
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010262
Chunk: 41

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 41
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, dissolution and liquidation. However, the Company may extend the period of time to consummate a Business Combination.
If the Company is unable to consummate the Company’s initial Business Combination by October 26, 2025 (unless further extended),
the Company will, as promptly as possible but not more than ten business days thereafter, redeem 100% of the Company’s outstanding
public shares for a pro rata portion of the funds held in the Trust Account, including a pro rata portion of any interest earned on the
funds held in the Trust Account and not necessary to pay taxes, and then seek to liquidate and dissolve. However, the Company may not
be able to distribute such amounts as a result of claims of creditors which may take priority over the claims of the Company’s
public shareholders. In the event of dissolution and liquidation, the Company’s rights will expire and will be worthless.

In
connection with the Company’s assessment of going concern considerations in accordance with Accounting Standards Update (“ASU”)
2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management has determined
that if the Company is unsuccessful in consummating an initial business combination within the prescribed period of time from the closing
of the IPO, the requirement that the Company cease all operations, redeem the public shares and thereafter liquidate and dissolve raises
substantial doubt about the ability to continue as a going concern. On October 28, 2024, the Company issued an unsecured promissory note
to the sponsor, pursuant to which the Company may borrow up to an aggregate principal amount of $300,000 (the “Promissory Note”). The Promissory Note is non-interest-bearing and payable on the consummation of the initial business combination
or converted upon consummation of the business combination into additional private units at a price of $10.00 per unit. The financial
statements do not include any adjustments that might result from the outcome of this uncertainty. Management has determined that the
Company has funds that are sufficient to fund the working capital needs of the Company until the consummation of an initial business
combination or the winding up of the Company as stipulated in the Company’s amended and restated memorandum of association. The
accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States
of America (“U.S. GAAP”), which contemplate continuation of the Company as a going concern.

As