Company: DTSQ
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010262
Chunk: 27

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 price of $10.00 per private unit, generating
total gross proceeds of $2,069,000.

Following
our initial public offering and the private placement, a total of $69,000,000 of the net proceeds were deposited in the trust account.
We intend to use substantially all of the funds held in the trust account, including any amounts representing interest earned on the
trust account (excluding deferred underwriting commissions and less taxes payable) to complete our initial business combination. We may
withdraw interest from the trust account to pay our taxes. To the extent that our equity or debt is used, in whole or in part, as consideration
to complete our initial business combination, the remaining proceeds held in the trust account will be used as working capital to finance
the operations of the target business or businesses, make other acquisitions and pursue our growth strategies. We intend to use the funds
held outside the trust account primarily for identifying and evaluating prospective acquisition candidates, performing business due diligence
on prospective target businesses, traveling to and from the offices, plants or similar locations of prospective target businesses, reviewing
corporate documents and material agreements of prospective target businesses, selecting the target business to acquire and structuring,
negotiating and consummating the business combination.

For
the three months ended March 31, 2025, cash used by operating activities was $139,921, primarily due to prepayment of formation and operational
costs. As of March 31, 2025, we had cash at bank of $271,508.

On
March 31, 2025, the Company had working capital of $232,302, excluding deferred underwriting commissions and the
available cash held in the Trust Account for marketable securities, which indicated a lack of liquidity it needed to sustain operations
for a reasonable period of time, which was considered to be one year from the issuance of the financial statements.

In
order to fund working capital deficiencies or finance transaction costs in connection with an initial business combination, our sponsor,
officers, directors, or their affiliates may, but are not obligated to, loan us funds as may be required. If we complete our initial
business combination, we will repay such loaned amounts. In the event that the initial business combination does not close, we may use
a portion of the working capital held outside the trust account to repay such loaned amounts, but no proceeds from our trust account
would be used for such repayment. Up to $300,000 of such loans may