DT Cloud Star Acquisition Corporation, previously known as Infinity Star Acquisition Corporation, reported significant financial developments in its 10-Q filing for the period ending June 30, 2024. The company, incorporated on November 29, 2022, has not yet commenced operations, focusing instead on its initial public offering (IPO) preparations.
As of June 30, 2024, total assets surged to $227.0 million, a substantial increase from $2.97 million at the end of 2023. This growth is primarily attributed to the completion of the IPO on July 26, 2024, which generated gross proceeds of $69.0 million. The company also raised an additional $2.07 million through a private placement of 206,900 units at $10.00 each.
Total current liabilities rose dramatically to $285.5 million from $8.8 million at the end of the previous fiscal year, reflecting the financial obligations associated with the IPO and other operational costs. The accumulated deficit expanded to $(58.4 million) as of June 30, 2024, compared to $(5.8 million) at the end of 2023, indicating increased operational losses.
For the three months ended June 30, 2024, DT Cloud Star reported a net loss of $(42.0 million), a significant increase from $(665,000) in the same period of 2023. The net loss for the six months ended June 30, 2024, was $(52.7 million), compared to $(1.3 million) for the same period in 2023. The basic and diluted net loss per share for the three months ended June 30, 2024, was $(0.0280), up from $(0.0004) in the prior year.
The company’s cash flow statement indicated net cash used in operating activities of $(268.8 million) for the six months ended June 30, 2024, with no cash or cash equivalents reported as of that date. Financing activities provided the same amount, reflecting the funds raised through the IPO.
In terms of corporate governance, the company has established an administrative services arrangement, agreeing to pay an affiliate of the Sponsor $10,000 per month for general and administrative services. Additionally, the company has a promissory note with the Sponsor, allowing borrowing up to $300,000, with $268,815 due as of June 30, 2024.
Overall, DT Cloud Star Acquisition Corporation is positioned for future business combinations, with a deadline for its initial business combination set for October 26, 2025. The company has waived redemption rights for initial shareholders in connection with this process, indicating a commitment to its strategic objectives.
About DT Cloud Star Acquisition Corp
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