Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 59

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 59
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 in which the target
company or business is located or another jurisdiction. A shareholder may be required to recognize taxable income or gain with respect
to our business combination or transactions relating thereto in the jurisdiction in which the shareholder is a tax resident (or in which
its members are resident if it is a tax transparent entity) or in which the target company is located. In the event of a transfer by
way of continuation or merger, tax liability may attach prior to any consummation of redemptions of our ordinary shares.

In
addition, we could be treated as a tax resident in the jurisdiction in which the target company or business is located, which could result
in adverse tax consequences to us (e.g., taxation on our worldwide income in such jurisdiction) and to our shareholders (e.g., withholding
taxes on dividends and taxation of disposition gains). We may effect a business combination with a target company that has business operations
in multiple jurisdictions, which could subject us to significant income, withholding and other tax obligations in a number of jurisdictions
with respect to income, operations and subsidiaries related to those jurisdictions.

Nasdaq
may delist our securities from trading on its exchange which could limit investors’ ability to make transactions in our securities
and subject us to additional trading restrictions.

Our
securities are currently listed on the Nasdaq Global Market, a national securities exchange. Although we currently meet the continued
listing standards of Nasdaq, we cannot assure you that our securities will continue to be listed on Nasdaq in the future or prior to
an initial business combination. Additionally, in connection with our initial business combination, it is likely that Nasdaq will require
us to file a new initial listing application and meet its initial listing requirements as opposed to its more lenient continued listing
requirements. We cannot assure you that we will be able to meet those initial listing requirements at that time.

38

If
Nasdaq delists our securities from trading on its exchange, we could face significant material adverse consequences, including:

    ●
    a
    limited availability of market quotations for our securities;

    ●
    reduced
    liquidity with respect to our securities;

    ●
    a
    determination that our ordinary shares are “penny stock” which will require brokers trading in our ordinary shares to
    adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market for our
    ordinary shares;

    ●
    a
    limited amount of news and analyst