NOTE
8– FAIR VALUE MEASUREMENTS
The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value
Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to
their short-term nature.
“Fair
value” is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction
between market participants at the measurement date. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets
or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:
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Level 1 - Quoted
prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions
for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
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Level 2 - Observable
inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities
and quoted prices for identical assets or liabilities in markets that are not active. |
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Level 3 - Unobservable
inputs based on the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability. |
SCHEDULE
OF FAIR VALUE MEASUREMENTS
| | |
Prices in | | |
Other | | |
Other | |
| | |
Active | | |
Observable | | |
Unobservable | |
| | |
Markets | | |
Inputs | | |
Inputs | |
| At December 31, 2025 | |
(Level 1) | | |
(Level 2) | | |
(Level 3) | |
| Money Market Funds (cash equivalents) | |
$ | 461 | | |
| | | |
| | |
| Money Market Funds (marketable securities held in Trust Account) | |
$ | 17,876,466 | | |
$ | - | | |
$ | - | |
| | |
Prices in | | |
Other | | |
Other | |
| | |
Active | | |
Observable | | |
Unobservable | |
| | |
Markets | | |
Inputs | | |
Inputs | |
| At December 31, 2024 | |
(Level 1) | | |
(Level 2) | | |
(Level 3) | |
| Money Market Funds (cash equivalents) | |
$ | 411,429 | | |
| | | |
| | |
| Money Market Funds (marketable securities held in Trust Account) | |
$ | 70,456,287 | | |
$ | - | | |
$ | - | |
DT
CLOUD STAR ACQUISITION CORPORATION
NOTES
TO AUDITED FINANCIAL STATEMENTS
|