Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 37

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 37
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 a single operating business. If we are unable to adequately address these risks,
it could negatively impact our profitability and results of operations.

The
ability of our public shareholders to exercise their redemption rights or sell their public shares to us in a tender offer may not allow
us to effectuate the most desirable business combination or optimize our capital structure.

If
our business combination requires us to use substantially all of our cash to pay the purchase price, because we will not know how many
public shareholders may exercise redemption rights or seek to sell their public shares to us in a tender offer, we may either need to
reserve part of the trust account for possible payment upon such conversion, or we may need to arrange third party financing to help
fund our business transaction. In the event that the business combination involves the issuance of our shares as consideration, we may
be required to issue a higher percentage of our shares to make up for a shortfall in funds. Raising additional funds to cover any shortfall
may involve dilutive equity financing or incurring indebtedness at higher than desirable levels. This may limit our ability to effectuate
the most attractive business combination available to us.

26

We
may be unable to consummate a business combination if a target business requires that we have cash in excess of the minimum amount we
are required to have at closing and public shareholders may have to remain shareholders of our company and wait until our liquidation
to receive a pro rata share of the trust account or attempt to sell their shares in the open market.

A
potential target may make it a closing condition to our business combination that we have a minimum amount of cash at the time of closing.
If the number of our shareholders electing to exercise their redemption rights or sell their shares to us in a tender offer has the effect
of reducing the amount of money available to us to consummate a business combination below such minimum amount required by the target
business and we are not able to locate an alternative source of funding, we will not be able to consummate such business combination
and we may not be able to locate another suitable target within the applicable time period, if at all. In that case, public shareholders
may have to remain shareholders of our company and wait the full 15 months, in order to be able to receive a pro rata portion
of the trust account, or attempt to sell their shares in the open market prior to such time, in which case they may receive less than
a pro rata share of the trust account for their