Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 146

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 146
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 on the
funds held in the Trust Account and not necessary to pay taxes, and then seek to liquidate and dissolve. However, the Company may not
be able to distribute such amounts as a result of claims of creditors which may take priority over the claims of the Company’s
public shareholders. In the event of dissolution and liquidation, the Company’s rights will expire and will be worthless.

In
connection with the Company’s assessment of going concern considerations in accordance with Accounting Standards Update (“ASU”)
2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management has determined
that if the Company is unsuccessful in consummating an initial business combination within the prescribed period of time from the closing
of the IPO, the requirement that the Company cease all operations, redeem the public shares and thereafter liquidate and dissolve raises
substantial doubt about the ability to continue as a going concern.  On October 28, 2024, the Company issued an unsecured promissory
note to the sponsor, pursuant to which the Company may borrow up to an aggregate principal amount of $300,000
(the “Working Capital Loan Note”).
The Working Capital Loan 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. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty. Management has determined that the Company has funds that are
sufficient to fund the working capital needs of the Company until the consummation of an initial business combination or the winding
up of the Company as stipulated in the Company’s amended and restated memorandum of association. The accompanying financial statements
have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”),
which contemplate continuation of the Company as a going concern.

As
indicated in the accompanying financial statements, the Company currently has a positive working capital, but projected expenses are
beyond the cash available through the earlier of the consummation of the initial Business Combination or one year from the issuance date of
this financial statements. There is no assurance that the Company’s plan to consummate a business combination will be successful. If a
Business Combination is not consummated by the relevant period, there will be a mandatory liquidation and subsequent dissolution. As a