Company: DTSQ
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010262
Chunk: 18

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 Public Right will entitle the holder to receive one-ninth (1/9) ordinary
share upon consummation of initial business combination.

All
of the 6,900,000 public shares sold as part of the Public Units in the Initial Public Offering contain a redemption feature which allows
for the redemption of such public shares if there is a shareholder vote or tender offer in connection with the Business Combination and
in connection with certain amendments to the Company’s Amended and Restated Memorandum and Articles of Association, or in connection
with the Company’s liquidation. In accordance with the SEC and its staff’s guidance on redeemable equity instruments, which
has been codified in ASC 480-10-S99, redemption provisions not solely within the control of the Company require ordinary shares subject
to redemption to be classified outside of permanent equity.

The
Company’s redeemable ordinary share is subject to SEC and its staff’s guidance on redeemable equity instruments, which has
been codified in ASC 480-10-S99. If it is probable that the equity instrument will become redeemable, the Company has the option to either
accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable that the
instrument will become redeemable, if later) to the earliest redemption date of the instrument or to recognize changes in the redemption
value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting
period. The Company has elected to recognize the changes immediately. The accretion or remeasurement is treated as a deemed dividend
(i.e., a reduction to retained earnings, or in absence of retained earnings, additional paid-in capital).

As
of March 31, 2025, the ordinary shares reflected in the balance sheet are reconciled in the following table:

SCHEDULED OF COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION

    Gross proceeds from public shares 
    $69,000,000 
  
    Less: 

    Proceeds allocated to public rights 
     (6,900,000)
  
    Allocation of offering costs related to ordinary shares 
     (1,958,237)
  
    Plus: 

    Accretion of carrying value to redemption value 
     8,858,237 
  
    Subsequent measurement of ordinary shares subject to possible redemption (interest and dividends earned in Trust Account) 
     2,193,993