Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 1244

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 10
Chunk 1244
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 benefits will materially change
over the next twelve months.

The
Company is considered to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently
not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s
tax provision was zero for the periods presented.

On
August 16, 2022, the U.S. Government enacted legislation commonly referred to as the Inflation Reduction Act. The main provisions of
the Inflation Reduction Act (the “IR Act”) that we anticipate may impact us is a 1% excise tax on share repurchases. Any
redemption or other repurchase that occurs after December 31, 2022, in connection with a Business Combination, extension vote or otherwise,
may be subject to the excise tax. Because there is possibility that the Company may acquire a U.S. domestic corporation or engage in
a transaction in which a domestic corporation becomes parent or affiliate to the Company and the Company may become a “covered
corporation” as a listed Company in Nasdaq. The management team has evaluated the IR Act as of December 31, 2024 and does not believe
it would have a material effect on the Company, and will continue to evaluate its impact.

Net
Income (Loss) per Share

The
Company calculates net income (loss) per share in accordance with ASC Topic 260, “Earnings per Share.” In order to
determine the net income (loss) attributable to both the redeemable shares and non-redeemable shares, the Company first considered the
undistributed income (loss) allocable to both the redeemable ordinary shares and non-redeemable ordinary shares and the undistributed
income (loss) is calculated using the total net income (loss) less any dividends paid. The Company then allocated the undistributed income
(loss) ratably based on the weighted average number of shares outstanding between the redeemable and non-redeemable ordinary shares.
Any remeasurement of the accretion to the redemption value of the ordinary shares subject to possible redemption was considered to be
dividends paid to the public stockholders.

The
calculation of diluted income (loss) per ordinary shares does not consider the effect of the rights issued in connection with the (i)
Initial Public Offering, and (ii) the private placement since the exercise of the rights are contingent upon the occurrence of future
events. As