Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 170

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 170
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 it may be more difficult for us to attain shareholder approval of our initial business combination
if the target business does not meet our general criteria and guidelines.

Furthermore,
each person who purchased units in our initial public offering and still held such securities upon learning of the facts relating to
the deviation may seek rescission of the purchase of the units he or she acquired in our initial public offering (under which a successful
claimant has the right to receive the total amount paid for his or her securities pursuant to an allegedly deficient prospectus, plus
interest and less any income earned on the securities, in exchange for surrender of the securities) or bring an action for damages against
us (compensation for loss on an investment caused by alleged material misrepresentations or omissions in the sale of a security). In
such event, we could also be subject to civil or criminal actions taken by governmental authorities.

Since
we have not yet selected a particular industry or target business with which to complete a business combination, we are unable to currently
ascertain the merits or risks of the industry or business in which we may ultimately operate.

While
we intend to focus our search for target businesses on specific locations and industries as described in this Report, we are not limited
to those locations and may consummate a business combination with a company in any location or industry we choose. Accordingly, there
is no current basis for you to evaluate the possible merits or risks of the particular industry in which we may ultimately operate or
the target business which we may ultimately acquire. To the extent we complete a business combination with a company in its development
stage, we may be affected by numerous risks inherent in the business operations of those entities. If we complete a business combination
with an entity in an industry characterized by a high level of risk, we may be affected by the currently unascertainable risks of that
industry. Although our management will endeavor to evaluate the risks inherent in a particular industry or target business, we cannot
assure you that we will properly ascertain or assess all of the significant risk factors. We also cannot assure you that an investment
in our units will not ultimately prove to be less favorable to investors in our initial public offering than a direct investment, if
an opportunity were available, in a target business.

23

The
target business or businesses that we acquire must collectively have a fair market value equal to at least 80% of the balance of the
funds in the trust account (less any deferred underwriting commissions and taxes payable on