Company: DTSQ
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001493152-25-020876
Chunk: 69

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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 interest earned on the
trust account (excluding deferred underwriting commissions and less taxes payable) to complete our initial business combination. We may
withdraw interest from the trust account to pay our taxes. To the extent that our equity or debt is used, in whole or in part, as consideration
to complete our initial business combination, the remaining proceeds held in the trust account will be used as working capital to finance
the operations of the target business or businesses, make other acquisitions and pursue our growth 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 nine months ended September 30, 2025, cash used in operating activities was $391,312, primarily due to prepayment of formation and
operational costs. As of September 30, 2025, we had cash at bank of $20,117.

On
September 30, 2025, the Company had negative working capital of $53,347, 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 Prom