Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 123

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 123
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, the Company had a related party receivable of $28,715
comprised of the $41,075 overpayment for settlement of the Promissory Note in connection with the Initial Public Offering, net of $12,360
excess cash contributions for the purchase of Private Placement Units.

Administrative
Services Agreement

Commencing
on the June 11, 2025, the Company entered into an agreement with an affiliate of the Sponsor to pay an aggregate of $10,000 per month
for office space, utilities, and secretarial and administrative support. Upon completion of the initial Business Combination or the liquidation,
the Company will cease paying the $10,000 per month fee. The Company has accrued $6,333 under the administrative services agreement,
and has incurred administrative service fees of $6,333 for the three and six months ended June 30, 2025.

    13 

Related
Party Loans

In
order to finance transaction costs in connection with an intended initial Business Combination, the Sponsor or an affiliate of the Sponsor
or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required on
a non-interest basis (the “Working Capital Loans”). If the Company completes an initial Business Combination, the Company
would repay such loaned amounts. In the event that the initial Business Combination does not close, the Company may use amounts held
outside the Trust Account to repay such loaned amounts but no proceeds from the Trust Account would be used for such repayment. Up to
$1,500,000 of such loans may be convertible into units of the post business combination entity at a price of $10.00 per unit at the option
of the lender. Such units would be identical to the Private Placement Units. Except as set forth above, the terms of such loans, if any,
have not been determined and no written agreements exist with respect to such loans. As of June 30, 2025, no such Working Capital Loans
were outstanding.

Note
7 — Commitments and Contingencies

Risks
and Uncertainties

Various social and political circumstances in the
U.S. and around the world (including rising trade tensions between the U.S. and China, and other uncertainties regarding actual and potential
shifts in the U.S. and foreign, trade, economic and other policies with other countries), may contribute to increased market volatility
and economic uncertainties or deterioration in the U.S. and