RELATED PARTY TRANSACTIONS |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 5 – RELATED PARTY TRANSACTIONS
Founder Shares
In July 2022, the Company issued an aggregate of founder shares (“Founder Shares”) to the initial shareholders, so that the Sponsor collectively owned of the Company’s issued and outstanding shares after the Initial Public Offering for an aggregate purchase price of $25,000 (see Note 7).
Due to Related Party
As of June 30, 2025 and December 31, 2024, the Company had a temporary advance and unpaid service fees of $368,127 and $129,759 from the Sponsor, respectively. The balance is unsecured, interest-free and has no fixed terms of repayment.
Administrative Services Arrangement
An affiliate of the Sponsor will agree that, commencing from the date that the Company’s securities are first listed on NASDAQ through the earlier of the Company’s consummation of a Business Combination and its liquidation, to make available to the Company certain general and administrative services, including office space, administrative and support services, as the Company may require from time to time. The Company has agreed to pay the affiliate of the Sponsor $10,000 per month for these services commencing on the closing date of this offering for 9 months (or up to 24 months if the Company extends the Combination Period). As of June 30, 2025 and December 31, 2024, the unpaid services fees of $160,000 and $100,000, respectively included in due to related party on the unaudited balance sheets. For the six months ended June 30, 2025 and 2024, the Company incurred $60,000 and $40,000 in fees for these services, respectively.
Working Capital Loans
In order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s directors and officers may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $300,000 of the notes may be converted upon consummation of our business combination into private units at a price of $ per unit. As of June 30, 2025 and December 31, 2024, the Company has no principal amount due and owing under the Working Capital Loans.
DT CLOUD ACQUISITION CORPORATION NOTES TO UNAUDITED FINANCIAL STATEMENTS
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