Company: DTSQ
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001493152-25-020876
Chunk: 53

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 53
---
 statements of operations. The estimated fair values of investments held in Trust Account are determined using available
market information. The Company had $72,694,104 and $70,456,287 of marketable securities held in the Trust Account as of September 30,
2025 and December 31, 2024, respectively.

During
the three and nine months ended September 30, 2025, interest and dividends earned in the Trust Account amounted to $751,452 and $2,231,317,
of which $509,966 and $1,989,831 was reinvested in the Trust Account, $241,486 and $241,486 was recognized as unrealized gain on investments
held in the Trust Account. During the year ended December 31, 2024, interest and dividends earned in the Trust Account amounted to $1,456,287,
of which $1,192,603 was reinvested in the Trust Account, $263,684 was recognized as unrealized gain on investments held in the Trust
Account.

Offering
Costs Associated with the Initial Public Offering

The
Company complies with the requirements of ASC 340-10-S99-1 and SEC Staff Accounting Bulletin Topic 5A – “Expenses of Offering”.
Offering costs consisted of legal, accounting, and other costs incurred that were directly related to the Initial Public Offering. Upon
completion of the Initial Public Offering, offering costs were allocated to the separable financial instruments issued in the Initial
Public Offering based on a relative fair value basis, compared to total proceeds received. Offering costs allocated to the Rights were
charged to the shareholders’ equity. Offering costs allocated to the ordinary shares were charged against the carrying value of
ordinary shares subject to possible redemption upon the completion of the Initial Public Offering.

Ordinary
Share Subject to Possible Redemption

The
Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing
Liabilities from Equity.” Ordinary shares subject to mandatory redemption are classified as a liability instrument and are
measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either
within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s
control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s
ordinary shares feature certain redemption rights that are considered to be outside of