Company: DTSQ
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010262
Chunk: 69

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 69
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 strategies. We intend to use the funds
held outside the trust account primarily for identifying and evaluating prospective acquisition candidates, performing business due diligence
on prospective target businesses, traveling to and from the offices, plants or similar locations of prospective target businesses, reviewing
corporate documents and material agreements of prospective target businesses, selecting the target business to acquire and structuring,
negotiating and consummating the business combination.

For
the three months ended March 31, 2025, cash used by operating activities was $139,921, primarily due to prepayment of formation and operational
costs. As of March 31, 2025, we had cash at bank of $271,508.

On
March 31, 2025, the Company had working capital of $232,302, excluding deferred underwriting commissions and the
available cash held in the Trust Account for marketable securities, which indicated a lack of liquidity it needed to sustain operations
for a reasonable period of time, which was considered to be one year from the issuance of the financial statements.

In
order to fund working capital deficiencies or finance transaction costs in connection with an initial business combination, our sponsor,
officers, directors, or their affiliates may, but are not obligated to, loan us funds as may be required. If we complete our initial
business combination, we will repay such loaned amounts. In the event that the initial business combination does not close, we may use
a portion of the working capital held outside the trust account to repay such loaned amounts, but no proceeds from our trust account
would be used for such repayment. Up to $300,000 of such loans may be convertible upon consummation of the initial business combination
into private units at a price of $10.00 per unit.

19

On
October 28, 2024, we issued an unsecured promissory note to the sponsor, pursuant to which we may borrow up to an aggregate principal
amount of $300,000 (the “Promissory Note”). The Promissory Note is non-interest-bearing and payable on the consummation of
the initial business combination or converted upon consummation of the business combination into additional private units at a price
of $10.00 per unit. As of March 31, 2025, the principal amount due and owing under the Promissory Note was $nil.

Results
of Operations

We
have neither engaged in any operations nor generated any revenue to date. Our