DT Cloud Star Acquisition Corporation Reports $74,754 Net Loss for Six Months Ending June 30, 2026

DT Cloud Star Acquisition Corporation reported its financial results for the six months ending June 30, 2026, revealing a net loss of $74,754, a significant decline from a net income of $1,261,782 during the same period in 2025. The company’s operating expenses totaled $394,383, which included formation and operating costs of $334,383 and general and administrative expenses of $60,000. In contrast, for the six months ended June 30, 2025, operating expenses were lower at $223,570. The company generated $319,629 in other income, primarily from interest earned on marketable securities held in its trust account, which was substantially lower than the $1,485,352 reported in the previous year.

The balance sheet as of June 30, 2026, showed total assets of $18,466,431, an increase from $17,972,109 at the end of 2025. Cash and marketable securities held in trust amounted to $18,421,078, up from $17,876,466. However, the company reported a working capital deficit of $980,611, indicating liquidity challenges. Current liabilities rose significantly to $1,025,964 from $456,888 at the end of 2025, primarily due to an increase in amounts due to the sponsor, which reached $1,001,144.

Strategically, DT Cloud Star is pursuing a business combination and has entered into a Business Combination Agreement with PrimeGen US, Inc. on February 2, 2026. This agreement is part of the company's efforts to identify and acquire a target business, which is expected to provide operational capabilities and additional capital resources. The company has also extended its deadline to complete the business combination to October 26, 2026, by depositing $75,000 into the trust account for each one-month extension.

Operationally, the company has faced challenges, including a significant redemption of public shares, with 5,247,491 shares tendered for redemption during a recent shareholder meeting. This has reduced the number of outstanding public shares and impacted liquidity. As of June 30, 2026, the company had 2,000,900 ordinary shares issued and outstanding, with 1,652,509 shares subject to possible redemption. The company is actively managing its cash resources to ensure it meets the minimum cash condition required to consummate the business combination.

Looking ahead, DT Cloud Star's management remains optimistic about identifying a suitable target business and completing the proposed business combination. However, they acknowledge the substantial doubt regarding the company's ability to continue as a going concern if the business combination is not completed within the specified timeframe. The company plans to issue additional promissory notes to support its liquidity needs and fund operating expenses as it navigates these challenges.