Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 1364

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 13
Chunk 1364
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 and $nil marketable securities held in the Trust Account as of December 31, 2024 and 2023,
respectively.

During
the year ended December 31, 2024, interest and dividends earned in the Trust Account amounted to $1,456,287, of which $1,192,603 was
reinvested in the Trust Account, $263,684 was recognized as unrealized gain on investments held in the Trust Account. During the year
ended December 31, 2023, there was no balance of marketable securities and no related investment income as the account had not opened.

Offering
Costs Associated with the Initial Public Offering

The
Company complies with the requirements of ASC 340-10-S99-1 and SEC Staff Accounting Bulletin Topic 5A – “Expenses of Offering”.
Offering costs consisted of legal, accounting, and other costs incurred that were directly related to the Initial Public Offering. Upon
completion of the Initial Public Offering, offering costs were allocated to the separable financial instruments issued in the Initial
Public Offering based on a relative fair value basis, compared to total proceeds received. Offering costs allocated to the Rights were
charged to the shareholders’ equity. Offering costs allocated to the ordinary shares were charged against the carrying value of
ordinary shares subject to possible redemption upon the completion of the Initial Public Offering.

Ordinary
Share Subject to Possible Redemption

The
Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing
Liabilities from Equity.” Ordinary shares subject to mandatory redemption are classified as a liability instrument and are
measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either
within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s
control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s
ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence
of uncertain future events. Accordingly, as of December 31, 2024, ordinary shares subject to possible redemption are presented at redemption
value as temporary equity, outside of the shareholders’ equity section of the Company’s balance sheet.

The
Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable ordinary shares
to equal the redemption value at the end of