Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 165

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 165
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 to the rights of holders of our public shares.

20

The
requirement that we complete an initial business combination within a specific period of time may give potential target businesses leverage
over us in negotiating our initial business combination and may limit the amount of time we have to conduct due diligence on potential
business combination targets as we approach our dissolution deadline, which could undermine our ability to consummate our initial business
combination on terms that would produce value for our shareholders.

We
have 15 months from the consummation of our initial public offering to complete an initial business combination. Any potential target
business with which we enter into negotiations concerning a business combination will be aware of this requirement. Consequently, such
target business may obtain leverage over us in negotiating a business combination, knowing that if we do not complete a business combination
with that particular target business, we may be unable to complete a business combination with any other target business. This risk will
increase as we get closer to the time limits referenced above. In addition, we may have limited time to conduct due diligence and may
enter into our initial business combination on terms that we would have rejected upon a more comprehensive investigation.

Our
ability to consummate an attractive business combination may be impacted by the market for initial public offerings.

If
the market for initial public offerings is limited, we believe there will be more attractive target businesses open to consummating an
initial business combination with us as a means to achieve publicly held status. Alternatively, if the market for initial public offerings
is robust, we believe that there will be fewer attractive target businesses amenable to consummating an initial business combination
with us to become a public reporting company. Accordingly, during periods with strong public offering markets, it may be more difficult
for us to complete an initial business combination.

As
the number of special purpose acquisition companies increases, there may be more competition to find an attractive target for an initial
business combination. This could increase the costs associated with completing our initial business combination and may result in our
inability to find a suitable target for our initial business combination.

In
recent years, the number of special purpose acquisition companies that have been formed has increased substantially. Many companies have
entered into business combinations with special purpose acquisition companies, and there are still many special purpose acquisition companies
seeking targets for their initial business combination, as well as many additional special purpose acquisition companies currently in
registration. As a result, at times, fewer attractive targets may be available, and it may require more