Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 30

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 30
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by the claims of target businesses or claims of vendors or other entities that are owed money by us for services rendered or contracted
for or products sold to us and which have not executed a waiver agreement. However, it may not be able to meet such obligation. Therefore,
the per-share redemption price from the trust account in such a situation may be less than $10.00, plus interest, due to such claims.

Additionally,
if we are forced to file a bankruptcy case or an involuntary bankruptcy case is filed against us which is not dismissed, or if we otherwise
enter compulsory or court supervised liquidation, the proceeds held in the trust account could be subject to applicable bankruptcy law,
and may be included in our bankruptcy estate and subject to the claims of third parties with priority over the claims of our shareholders.
To the extent any bankruptcy claims deplete the trust account, we may not be able to return to our public shareholders at least $10.00
per share.

22

Our
shareholders may be held liable for claims by third parties against us to the extent of distributions received by them.

If
we are forced to enter into insolvent liquidation, any distributions received by shareholders could be viewed as an unlawful payment
if it was proved that immediately following the date on which the distribution was made, we were unable to pay our debts as they fall
due in the ordinary course of business. As a result, a liquidator could seek to recover all amounts received by our shareholders. Furthermore,
our directors may be viewed as having breached their fiduciary duties to us or our creditors and/or may have acted in bad faith, thereby
exposing themselves and our company to claims, by paying public shareholders from the trust account prior to addressing the claims of
creditors. We cannot assure you that claims will not be brought against us for these reasons. We and our directors and officers who knowingly
and willfully authorized or permitted any distribution to be paid out of our share premium account while we were unable to pay our debts
as they fall due in the ordinary course of business would be guilty of an offense and may be liable to a fine and to imprisonment for
five years in the Cayman Islands.

If
we deviate from the acquisition criteria or guidelines, our shareholders may have rescission rights or may bring an action for damages
against us or we could be subject to civil or criminal actions taken by governmental authorities.

Although
we have identified specific criteria and guidelines for evaluating prospective target businesses, it is possible that a target business