Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 20

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 20
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 entities are well established and have extensive experience identifying and effecting business combinations
directly or through affiliates. Many of these competitors possess greater technical, human and other resources than us and our financial
resources will be relatively limited when contrasted with those of many of these competitors. While we believe there may be numerous
potential target businesses that we could acquire with the net proceeds of our initial public offering, our ability to compete in acquiring
certain sizable target businesses may be limited by our available financial resources.

The
following also may not be viewed favorably by certain target businesses:

    ●
    our
    obligation to seek shareholder approval of a business combination or obtain the necessary financial information to be sent to shareholders
    in connection with such business combination may delay or prevent the completion of a transaction;

    ●
    our
    obligation to redeem public shares held by our public shareholders may reduce the resources available to us for a business combination;

    ●
    Nasdaq
    may require us to file a new listing application and meet its initial listing requirements to maintain the listing of our securities
    following a business combination;

    ●
    our
    outstanding rights and the potential future dilution they represent;

    ●
    our
    obligation to pay the deferred underwriting discounts and commissions to the underwriters upon consummation of our initial business
    combination;

    ●
    our
    obligation to either repay or issue units upon conversion of up to $300,000 of working capital loans that may be made to us by our
    initial shareholders, officers, directors or their affiliates;

    ●
    our
    obligation to register the resale of the initial shares, as well as the private units (and underlying securities) and any securities
    issued to our initial shareholders, officers, directors or their affiliates upon conversion of working capital loans; and

    ●
    the
    impact on the target business’ assets as a result of unknown liabilities under the securities laws or otherwise depending on
    developments involving us prior to the consummation of a business combination.

Any
of these factors may place us at a competitive disadvantage in successfully negotiating a business combination. Our management believes,
however, that our status as a public entity and potential access to the United States public equity markets may give us a competitive
advantage over privately held entities having a similar business objective as ours in acquiring a target business with significant growth
potential on favorable terms.

17

If
we succeed in effecting a business combination, there