Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 296

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 296
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. No additional consideration will be required to be paid by a holder of rights in order to receive its additional
shares upon consummation of a Business Combination as the consideration related thereto has been included in the Unit purchase price
paid for by investors in the Initial Public Offering. If the Company enters into a definitive agreement for a Business Combination in
which the Company will not be the surviving entity, the definitive agreement will provide for the holders of rights to receive the same
per share consideration the holders of the ordinary shares will receive in the transaction on an as-converted into ordinary share basis
and each holder of a right will be required to affirmatively convert its rights in order to receive 1/9 share underlying each right (without
paying additional consideration). The shares issuable upon exchange of the rights will be freely tradable (except to the extent held
by affiliates of the Company).

    F-16

DT
CLOUD STAR ACQUISITION CORPORATION

NOTES
TO AUDITED FINANCIAL STATEMENTS

NOTE
7 – COMMITMENTS AND CONTINGENCIES

Risks
and Uncertainties

Management
continues to evaluate the long-term  impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that
the virus could have a negative effect on the Company’s financial position, results of its operations and/or search for a target
company, the specific impact is not readily determinable as of the date of these audited financial statements. The audited financial
statements do not include any adjustments that might result from the outcome of this uncertainty.

Registration
Rights

Pursuant
to a registration rights agreement entered into on July 26, 2024, the holders of the Founder Shares, Private Placement Units (including
securities contained therein), and units (including securities contained therein) that may be issued on conversion of working capital
loans or extension loans (and) are entitled to registration rights pursuant to a registration rights agreement signed on the effective
date of this offering requiring the Company to register such securities for resale. The holders of these securities are entitled to make
up to three demands, excluding short form demands, that the Company’s register such securities. In addition, the holders have certain
“piggy-back” registration rights with respect to registration statements filed subsequent to the Company completion of initial
business combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities
Act. The Company will bear the expenses incurred in