Company: DTSQ
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022963
Chunk: 62

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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June 30, 2025, the Company had working capital of $121,641, excluding deferred underwriting commissions and the
available cash held in the Trust Account for marketable securities, which indicated a lack of liquidity it needed to sustain operations
for a reasonable period of time, which was considered to be one year from the issuance of the financial statements.

In
order to fund working capital deficiencies or finance transaction costs in connection with an initial business combination, our sponsor,
officers, directors, or their affiliates may, but are not obligated to, loan us funds as may be required. If we complete our initial
business combination, we will repay such loaned amounts. In the event that the initial business combination does not close, we may use
a portion of the working capital held outside the trust account to repay such loaned amounts, but no proceeds from our trust account
would be used for such repayment. Up to $300,000 of such loans may be convertible upon consummation of the initial business combination
into private units at a price of $10.00 per unit.

19

On
October 28, 2024, we issued an unsecured promissory note to the sponsor, pursuant to which we may borrow up to an aggregate
principal amount of $300,000 (the “Promissory Note”). The Promissory Note is non-interest-bearing and payable on the
consummation of the initial business combination or converted upon consummation of the business combination into additional private
units at a price of $10.00 per unit. As of June 30, 2025, the principal amount due and owing under the Promissory Note was $nil. On
July 29, 2025, we entered into a letter agreement to the Promissory Note with the Sponsor, pursuant to which we and the Sponsor
agreed to terminate the Promissory Note and confirmed that the outstanding amount that we borrowed under the Promissory Note was
nil.

Results
of Operations

We
have neither engaged in any operations nor generated any revenue to date. Our entire activity since inception through June 30, 2025 related
to our formation, the preparation for the initial public offering, and since the closing of the initial public offering, the search for
a prospective initial business combination. We do not expect to generate any operating revenues until the closing and completion of our
initial business combination, at the earliest. We will generate non-operating income in the form