Company: DTSQ
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001493152-25-020876
Chunk: 59

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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3 –INITIAL PUBLIC OFFERING

On
July 26, 2024, pursuant to the Initial Public Offering, the Company sold 6,900,000 Public Units, which includes 900,000 Public Units
upon the full exercise by the underwriter of its over-allotment option, at a purchase price of $10.00 per Public Unit. Each Unit will
consist of one ordinary share and one Public Right. Each whole Public Right will entitle the holder to receive one-ninth (1/9) ordinary
share upon consummation of initial business combination.

All
of the 6,900,000 public shares sold as part of the Public Units in the Initial Public Offering contain a redemption feature which allows
for the redemption of such public shares if there is a shareholder vote or tender offer in connection with the Business Combination and
in connection with certain amendments to the Company’s Amended and Restated Memorandum and Articles of Association, or in connection
with the Company’s liquidation. In accordance with the SEC and its staff’s guidance on redeemable equity instruments, which
has been codified in ASC 480-10-S99, redemption provisions not solely within the control of the Company require ordinary shares subject
to redemption to be classified outside of permanent equity.

The
Company’s redeemable ordinary share is subject to SEC and its staff’s guidance on redeemable equity instruments, which has
been codified in ASC 480-10-S99. If it is probable that the equity instrument will become redeemable, the Company has the option to either
accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable that the
instrument will become redeemable, if later) to the earliest redemption date of the instrument or to recognize changes in the redemption
value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting
period. The Company has elected to recognize the changes immediately. The accretion or remeasurement is treated as a deemed dividend
(i.e., a reduction to retained earnings, or in absence of retained earnings, additional paid-in capital).

As
of September 30, 2025, the ordinary shares reflected in the balance sheet are reconciled in the following table:

SCHEDULED OF COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION

    Gross proceeds from public shares 
    $69,000,000 
  
    Less: