Company: DTSQ
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010262
Chunk: 54

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 54
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 STAR ACQUISITION CORPORATION

NOTES
TO UNAUDITED FINANCIAL STATEMENTS

NOTE
8– FAIR VALUE MEASUREMENTS

The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value
Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to
their short-term nature.

“Fair
value” is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction
between market participants at the measurement date. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets
or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

    ●
    Level
    1 - Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in
    which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing
    basis.

    ●
    Level
    2 - Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets
    or liabilities and quoted prices for identical assets or liabilities in markets that are not active.

    ●
    Level
    3 - Unobservable inputs based on the Company’s assessment of the assumptions that market participants would use in pricing
    the asset or liability.

SCHEDULE
OF FAIR VALUE MEASUREMENTS

    Prices in  
    Other  
    Other 

    Active  
    Observable  
    Unobservable 

    Markets  
    Inputs  
    Inputs 
  
    At March 31, 2025 
    (Level 1)  
    (Level 2)  
    (Level 3) 
  
    Money Market Funds (marketable securities held in Trust Account) 
     71,193,993  
     -  
     - 

    Prices in  
    Other  
    Other 

    Active  
    Observable  
    Unobservable 

    Markets  
    Inputs  
    Inputs 
  
    At December 31, 2024 
    (Level