Company: DTSQ
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001493152-25-020876
Chunk: 15

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 going concern. On October 28, 2024, the Company issued an unsecured promissory note
to the Sponsor, pursuant to which the Company 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. On July 29, 2025, the Company entered into a
letter agreement to the Promissory Note with the Sponsor, pursuant to which the Company and the Sponsor agreed to terminate the Promissory
Note and confirmed that the outstanding amount that the Company borrowed under the Promissory Note was nil. On October 23, 2025, the
Company issued an unsecured promissory note to the Sponsor, pursuant to which the Company borrowed an aggregate principal amount of $75,000,
in exchange for Sponsor depositing such amount into the Trust Account in order to extend the amount of time it has available to complete
a Business Combination.

The
financial statements do not include any adjustments that might result from the outcome of this uncertainty. Management has determined
that the Company has funds that are sufficient to fund the working capital needs of the Company until the consummation of an initial
business combination or the winding up of the Company as stipulated in the Company’s amended and restated memorandum of association.
The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States
of America (“U.S. GAAP”), which contemplate continuation of the Company as a going concern.

As
indicated in the accompanying financial statements, the Company currently has a negative working capital, and projected expenses are
beyond the cash available through the earlier of the consummation of the initial Business Combination or one year from the issuance date
of this financial statements. There is no assurance that the Company’s plan to consummate a business combination will be successful.
If a Business Combination is not consummated by the relevant period, there will be a mandatory liquidation and subsequent dissolution.
As a result, there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date
that the financial statements are issued. The financial statement does not include any adjustments that might result from the outcome
of the uncertainty.

    8

DT
CLOUD STAR ACQUISITION CORPORATION