Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 502

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 502
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 solely within the control of the Company require ordinary shares subject
to redemption to be classified outside of permanent equity.

The
Company’s redeemable ordinary share is subject to SEC and its staff’s guidance on redeemable equity instruments, which has
been codified in ASC 480-10-S99. If it is probable that the equity instrument will become redeemable, the Company has the option to either
accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable that the
instrument will become redeemable, if later) to the earliest redemption date of the instrument or to recognize changes in the redemption
value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting
period. The Company has elected to recognize the changes immediately. The accretion or remeasurement is treated as a deemed dividend
(i.e., a reduction to retained earnings, or in absence of retained earnings, additional paid-in capital).

As
of December 31, 2024, the ordinary shares reflected in the balance sheet are reconciled in the following table:

 SCHEDULED OF COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION

    Gross proceeds from Public Shares 
    $69,000,000 
  
    Less: 

    Proceeds allocated to public rights 
     (6,900,000)
  
    Allocation of offering costs related to ordinary shares 
     (1,958,237)
  
    Plus: 

    Accretion of carrying value to redemption value 
     8,858,237 
  
    Subsequent measurement of ordinary shares subject to possible redemption (interest and dividend earned in Trust Account) 
     1,456,287 
  
    Ordinary shares subject to possible redemption (plus any interest and dividends earned in the Trust Account) 
     70,456,287 

    F-14

DT
CLOUD STAR ACQUISITION CORPORATION

NOTES
TO AUDITED FINANCIAL STATEMENTS

NOTE
4 – PRIVATE PLACEMENT

Simultaneously
with the closing of the Initial Public Offering, the Company consummated a private placement of 206,900 Private Placement Units, at a
price of $10.00 per Private Placement Unit. Each Private Placement Unit consists of one Private Placement Share and one right (“Private
Placement Right”). Each Private Placement Right will entitle the holder to receive one-ninth (1/9) ordinary share upon