Company: DTSQ
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001493152-25-020876
Chunk: 29

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 of 1.5% of the gross proceeds of the Initial Public Offering, upon the consummation
of IPO.

As
of July 26, 2024, the Company paid a cash underwriting commission of 1.5% of the gross proceeds of the IPO, or $1,035,000. The Company
issued 69,000 ordinary shares of $0.0001 par value each to A.G.P at the closing of the IPO as part of representative compensation. The
shares were accounted for as of July 26, 2024, and received by A.G.P on the IPO day.

The
underwriters are entitled to a cash underwriting discount of 1.0% of the gross proceeds of the Initial Public Offering, which will be
deferred and payable until the closing of the initial Business Combination, without accrued interest.

NOTE
8– FAIR VALUE MEASUREMENTS

The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value
Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to
their short-term nature.

“Fair
value” is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction
between market participants at the measurement date. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets
or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

    ●
    Level
    1 - Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in
    which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing
    basis.

Level
2 - Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets
or liabilities and quoted prices for identical assets or liabilities in markets that are not active.

    ●
    Level
    3 - Unobservable inputs based on the Company’s assessment of the assumptions that market participants would use in pricing
    the asset or liability.
  
SCHEDULE
OF FAIR VALUE MEASUREMENTS

    Prices in