Company: DTSQ
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022963
Chunk: 14

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements.

Making
estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating
its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ
significantly from those estimates.

    9

DT
CLOUD STAR ACQUISITION CORPORATION

NOTES
TO UNAUDITED FINANCIAL STATEMENTS

Cash
and Cash Equivalent

The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had $126,055 and $411,429 in cash as of June 30, 2025 and December 31, 2024, respectively.

Marketable
Securities Held in Trust Account

The
Company’s investments held in the Trust Account are classified as trading securities. Trading securities are presented on the balance
sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of investments held
in Trust Account are included in interest and dividends earned and in unrealized gains on marketable securities held in Trust Account,
in the accompanying statements of operations. The estimated fair values of investments held in Trust Account are determined using available
market information. The Company had $71,936,152 and $70,456,287 of marketable securities held in the Trust Account as of June 30, 2025
and December 31, 2024, respectively.

During
the three and six months ended June 30, 2025, interest and dividends earned in the Trust Account amounted to $742,159 and $1,479,865,
of which $497,026 and $1,234,732 was reinvested in the Trust Account, $245,133 and $245,133 was recognized as unrealized gain on investments
held in the Trust Account. During both three and six months ended June 30,2024, 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