Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 9

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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 disclosure controls and procedures were not effective as of June 30, 2025
as a result of the material weakness described below.

As of June 30, 2025, we have a material weakness in
our internal controls over financial reporting due to a lack of properly designed, implemented, and effectively operating controls. Management,
with oversight from the Board of Directors and the audit committee of the Board of Directors, will implement a remediation plan for this
material weakness, including, among other things, designing and maintaining a formal control environment, accounting policies, procedures
and controls to achieve complete, accurate and timely financial accounting, reporting and disclosures. We will also enhance our processes
to identify and appropriately apply applicable accounting requirements to better evaluate and understand the nuances of the complex accounting
standards that apply to our financial statements including making greater use of third-party professionals with whom we consult regarding
complex accounting applications. The elements of our remediation plan can only be accomplished over time, and we can offer no assurance
that these initiatives will ultimately have the intended effects. We believe our efforts will enhance our controls relating to accounting
for complex financial transactions, but we can offer no assurance that our controls will not require additional review and modification
in the future as industry accounting practice may evolve over time.

We do not expect that our disclosure controls and
procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated,
can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the
design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered
relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls
and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design
of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can
be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control over Financial Reporting

Not applicable.

21 

PART
II – OTHER INFORMATION

Item
1. Legal Proceedings.

To
the knowledge of our management, there is no material litigation, arbitration or governmental proceeding currently pending against us,
any of our officers or directors in their capacity as such or against any of our property.

Item
1A. Risk Factors.

As