Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 42

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 42
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 standards of the PCAOB. The
financial statements may also be required to be prepared in accordance with U.S. GAAP for the Form 8-K announcing the closing of an initial
business combination, which would need to be filed within four business days after closing. These financial statement requirements may
limit the pool of potential target businesses we may acquire.

If
our management following a business combination is unfamiliar with United States securities laws, they may have to expend time and resources
becoming familiar with such laws which could lead to various regulatory issues.

Following
a business combination, our management will likely resign from their positions as officers of the company and the management of the target
business at the time of the business combination will remain in place. We cannot assure you that management of the target business will
be familiar with United States securities laws. If new management is unfamiliar with our laws, they may have to expend time and resources
becoming familiar with such laws. This could be expensive and time-consuming and could lead to various regulatory issues which may adversely
affect our operations.

We
may reincorporate in another jurisdiction in connection with our initial business combination and such reincorporation may result in
taxes imposed on shareholders.

We
may, in connection with our initial business combination and subject to requisite shareholder approval under the Companies Act (as revised)
of the Cayman Islands, reincorporate in the jurisdiction in which the target company or business is located. The transaction may require
a shareholder to recognize taxable income in the jurisdiction in which the shareholder is a tax resident or in which its members are
resident if it is a tax transparent entity. We do not intend to make any cash distributions to shareholders to pay such taxes. Shareholders
may be subject to withholding taxes or other taxes with respect to their ownership of our securities after the reincorporation.

If
restrictions on repatriation of earnings from the target business’ home jurisdiction to foreign entities are instituted, our business
following a business combination may be materially negatively affected.

It
is possible that following an initial business combination, the home jurisdiction of the target business may have restrictions on repatriations
of earnings or additional restrictions may be imposed in the future. If they were, it could have a material adverse effect on our operations.

29

The
ability of our public shareholders to redeem their shares for cash may make our financial condition unattractive to potential business
combination targets, which may make it difficult for us to enter into our initial business combination with a target.