Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 57

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 57
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 rights holder in any such enforcement action by service upon such rights holder’s counsel in the foreign
action as agent for such rights holder.

This
choice-of-forum provision may limit a rights holder’s ability to bring a claim in a judicial forum that it finds favorable for
disputes with our company, including by increasing the cost of such lawsuits to a rights holder, which may discourage such lawsuits.
Alternatively, if a court were to find this provision of our rights agreement inapplicable or unenforceable with respect to one or more
of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions,
which could materially and adversely affect our business, financial condition and results of operations and result in a diversion of
the time and resources of our management and board of directors.

An
investment in our units may involve adverse U.S. federal income tax consequences.

An
investment in our units may involve adverse U.S. federal income tax consequences. For instance, there is a risk that an investor’s
entitlement to receive payments in excess of the investor’s initial tax basis in our ordinary shares upon exercise of the investor’s
conversion right or upon our liquidation of the trust account will result in constructive income to the investor, which could affect
the timing and character of income recognition and result in U.S. federal income tax liability to the investor without the investor’s
receipt of cash from us. Furthermore, because there are no authorities that directly address instruments similar to our units, the allocation
an investor makes with respect to the purchase price of the unit between the ordinary shares and rights included in the units could be
challenged by the U.S. Internal Revenue Service (the “IRS”), or the courts.

We
have also not sought a ruling from the IRS as to any U.S. federal income tax consequences described in this Report. The IRS may disagree
with the descriptions of U.S. federal income tax consequences described herein, and its determination may be upheld by a court. Any such
determination could subject an investor or our company to adverse U.S. federal income tax consequences that would be different than those
described in this Report. Accordingly, each prospective investor is urged to consult a tax advisor with respect to the specific tax consequences
of the acquisition, ownership and disposition of our securities, including the applicability and effect of state, local, or foreign tax
laws, as well as U.S. federal tax laws.

37

We
may qualify as a