Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 837

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 837
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 and $nil in cash as of December 31, 2024 and 2023, respectively.

Cash
and Marketable Securities Held in Trust Account

The
Company’s investments held in the Trust Account are classified as trading securities. Trading securities are presented on the balance
sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of investments held
in Trust Account are included in interest and dividends earned and unrealized gain on marketable securities held in Trust Account in
the accompanying statements of operations. The estimated fair values of investments held in Trust Account are determined using available
market information. The Company had $70,456,287 and $nil marketable securities held in the Trust Account as of December 31, 2024 and 2023,
respectively.

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. During the year
ended December 31, 2023, there was no balance of marketable securities and no related investment income as the account had not opened.

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