Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 32

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 32
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able risks of that
industry. Although our management will endeavor to evaluate the risks inherent in a particular industry or target business, we cannot
assure you that we will properly ascertain or assess all of the significant risk factors. We also cannot assure you that an investment
in our units will not ultimately prove to be less favorable to investors in our initial public offering than a direct investment, if
an opportunity were available, in a target business.

23

The
target business or businesses that we acquire must collectively have a fair market value equal to at least 80% of the balance of the
funds in the trust account (less any deferred underwriting commissions and taxes payable on interest earned and less any interest earned
thereon that is released to us) at the time of the execution of a definitive agreement for our initial business combination. Such requirement
may limit the type and number of companies with which we may complete such a business combination.

Pursuant
to the Nasdaq listing rules, the target business or businesses that we acquire must collectively have a fair market value equal to at
least 80% of the balance of the funds in the trust account (excluding any deferred underwriting discounts and commissions and taxes payable
on the income earned on the trust account and less any interest earned thereon that is released to us for our taxes) at the time of the
execution of a definitive agreement for our initial business combination. This restriction may limit the type and number of companies
with which we may complete a business combination. If we are unable to locate a target business or businesses that satisfy this fair
market value test, we may be forced to liquidate and you will only be entitled to receive your pro rata portion of the funds in
the trust account.

If
Nasdaq delists our securities from trading on its exchange after our initial public offering, we would not be required to satisfy the
fair market value requirement described above and could complete a business combination with a target business having a fair market value
substantially below 80% of the balance in the trust account.

Our
ability to successfully effect a business combination and to be successful thereafter will be totally dependent upon the efforts of our
key personnel, some of whom may join us following a business combination. While we intend to closely scrutinize any individuals we engage
after a business combination, we cannot assure you that our assessment of these individuals will prove to be correct.

Our
ability to successfully effect a business combination is dependent upon the efforts of our key personnel