Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 193

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 193
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 if a substantial number of ordinary shares are issued, which may affect, among other things, our ability
    to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and
    directors;

    ●
    may
    have the effect of delaying or preventing a change of control of us by diluting the stock ownership or voting rights of a person
    seeking to obtain control of us; and

    ●
    may
    adversely affect prevailing market prices for our ordinary shares.

35

Similarly,
if we issue debt securities, it could result in:

    ●
    default
    and foreclosure on our assets if our operating revenues after a business combination are insufficient to repay our debt obligations;

    ●
    acceleration
    of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants
    that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant;

    ●
    our
    immediate payment of all principal and accrued interest, if any, if the debt security is payable on demand;

    ●
    our
    inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such
    financing while the debt security is outstanding.

    ●
    our
    inability to pay dividends on our ordinary shares;

    ●
    using
    a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends
    on our ordinary shares if declared, expenses, capital expenditures, acquisitions and other general corporate purposes;

    ●
    limitations
    on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate;

    ●
    increased
    vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation;

    ●
    limitations
    on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution
    of our strategy and other purposes; and

    ●
    other
    disadvantages compared to our competitors who have less debt.

Holders
of rights will not have redemption rights if we are unable to complete an initial business combination within the required time period.

If
we are unable to complete an initial business combination within the required time period and we redeem the funds held in the trust account,
the rights will expire and holders will