Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 175

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 175
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may only be able to complete one business combination with the proceeds of our initial public offering, which will cause us to be solely
dependent on a single business which may have a limited number of products or services.

We
may only be able to complete one business combination with the proceeds of our initial public offering. By consummating a business combination
with only a single entity, our lack of diversification may subject us to numerous economic, competitive and regulatory developments.
Further, we would not be able to diversify our operations or benefit from the possible spreading of risks or offsetting of losses, unlike
other entities which may have the resources to complete several business combinations in different industries or different areas of a
single industry. Accordingly, the prospects for our success may be:

    ●
    solely
    dependent upon the performance of a single business, or

    ●
    dependent
    upon the development or market acceptance of a single or limited number of products, processes or services.

This
lack of diversification may subject us to numerous economic, competitive and regulatory developments, any or all of which may have a
substantial adverse impact upon the particular industry in which we may operate subsequent to a business combination.

Alternatively,
if we determine to simultaneously acquire several businesses and such businesses are owned by different sellers, we will need for each
of such sellers to agree that our purchase of its business is contingent on the simultaneous closings of the other business combinations,
which may make it more difficult for us, and delay our ability, to complete the business combination. With multiple business combinations,
we could also face additional risks, including additional burdens and costs with respect to possible multiple negotiations and due diligence
investigations (if there are multiple sellers) and the additional risks associated with the subsequent assimilation of the operations
and services or products of the acquired companies in a single operating business. If we are unable to adequately address these risks,
it could negatively impact our profitability and results of operations.

The
ability of our public shareholders to exercise their redemption rights or sell their public shares to us in a tender offer may not allow
us to effectuate the most desirable business combination or optimize our capital structure.

If
our business combination requires us to use substantially all of our cash to pay the purchase price, because we will not know how many
public shareholders may exercise redemption rights or seek to sell their public shares to us in a tender offer, we may either need to
reserve part of the trust account for possible payment upon such conversion, or we