Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 169

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 169
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,
and may be included in our bankruptcy estate and subject to the claims of third parties with priority over the claims of our shareholders.
To the extent any bankruptcy claims deplete the trust account, we may not be able to return to our public shareholders at least $10.00
per share.

22

Our
shareholders may be held liable for claims by third parties against us to the extent of distributions received by them.

If
we are forced to enter into insolvent liquidation, any distributions received by shareholders could be viewed as an unlawful payment
if it was proved that immediately following the date on which the distribution was made, we were unable to pay our debts as they fall
due in the ordinary course of business. As a result, a liquidator could seek to recover all amounts received by our shareholders. Furthermore,
our directors may be viewed as having breached their fiduciary duties to us or our creditors and/or may have acted in bad faith, thereby
exposing themselves and our company to claims, by paying public shareholders from the trust account prior to addressing the claims of
creditors. We cannot assure you that claims will not be brought against us for these reasons. We and our directors and officers who knowingly
and willfully authorized or permitted any distribution to be paid out of our share premium account while we were unable to pay our debts
as they fall due in the ordinary course of business would be guilty of an offense and may be liable to a fine and to imprisonment for
five years in the Cayman Islands.

If
we deviate from the acquisition criteria or guidelines, our shareholders may have rescission rights or may bring an action for damages
against us or we could be subject to civil or criminal actions taken by governmental authorities.

Although
we have identified specific criteria and guidelines for evaluating prospective target businesses, it is possible that a target business
with which we enter into our initial business combination will not have all of these positive attributes. If we were to elect to deviate
from the acquisition criteria or guidelines, such combination may not be as successful as a combination with a business that does meet
all of our general criteria and guidelines. In addition, a greater number of shareholders may exercise their redemption rights, which
may make it difficult for us to meet any closing condition with a target business that requires us to have a minimum net worth or a certain
amount of cash. If shareholder approval of the transaction is required by law or Nasdaq, or we decide to obtain shareholder approval
for business or other legal reasons,