Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 657

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 657
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 31, 2024, the Company had working capital of $339,724, 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.

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 “Working Capital Loan Note”). The Working Capital Loan 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. As of December 31, 2024, the principal amount due and owing under the Working Capital Loan Note
was $nil.

61

Results
of Operations 

We
have neither engaged in any operations nor generated any revenue to date. Our entire activity since inception through December 31, 2024
related to our formation, the preparation for the initial public offering, and since the closing of the initial public offering, the
search for a prospective e initial business combination. We do not expect to generate any operating revenues until the closing and completion
of our initial business combination, at the earliest. We will generate non-operating income in the form of interest income from the amount
held in the trust account. We expect that we will incur increased expenses as a result of being a public company (for legal, financial
reporting, accounting and auditing compliance), as well as for due diligence expenses in connection with search for, and completing,
a business combination