Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 185

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 185
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10.00 per share and our sponsor asserts that it is unable to satisfy
its obligations or that it has no indemnification obligations related to a particular claim, our independent directors would determine
on our behalf whether to take legal action against our sponsor to enforce its indemnification obligations. While we currently expect
that our independent directors would take legal action on our behalf against our sponsor to enforce its indemnification obligations to
us, it is possible that our independent directors in exercising their business judgment may choose not to do so in any particular instance.
If our independent directors choose not to enforce these indemnification obligations on our behalf, the amount of funds in the trust
account available for distribution to our public shareholders may be reduced below $10.00 per share.

31

The
conversion of the promissory notes upon consummation of our business combination into private units may have an adverse effect on the
market price of our ordinary shares and make it more difficult to effect a business combination.

In
order to meet our working capital needs following the consummation of our initial public offering until completion of an initial business
combination or to extend the period of time to consummate a business combination, our initial shareholders, officers and directors or
their affiliates may, but are not obligated to, loan us funds, from time to time or at any time, in whatever amount they deem reasonable
in their sole discretion. Each loan would be evidenced by a promissory note. The promissory note would either be paid upon consummation
of our initial business combination, without interest, or, at the lender’s discretion, up to $300,000 of the promissory note may
be converted upon consummation of our business combination into private units at a price of $10.00 per unit. As such, each promissory
note will result in the issuance of 30,000 private units that will result in the issuance of up to an additional 33,333 ordinary shares.
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 “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. As of December 31, 2024, the principal amount