Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 706

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 706
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The Company’s management determined that the Cayman Islands is the Company’s major tax jurisdiction. The Company recognizes
accrued interest and penalties related to unrecognized tax benefits, if any, as income tax expense. There were no unrecognized tax benefits
and no amounts accrued for interest and penalties as of December 31, 2024 and 2023. The Company is currently not aware of any issues
under review that could result in significant payments, accruals or material deviation from its position.

The
Company may be subject to potential examination by foreign taxing authorities in the area of income taxes. These potential examinations
may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with
foreign tax laws. The Company’s management does not expect that the total amount of unrecognized tax 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