Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 114

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 114
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 In
accordance with ASC 480-10-S99, the Company classifies Public Shares subject to possible redemption outside of permanent equity as the
redemption provisions are not solely within the control of the Company. The Company recognizes changes in redemption value immediately
as they occur and will adjust the carrying value of redeemable shares to equal the redemption value at the end of each reporting period.
Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption
value. The change in the carrying value of redeemable shares will result in charges against additional paid-in capital (to the extent
available) and accumulated deficit. Accordingly, as of June 30, 2025, Class A ordinary shares subject to possible redemption are presented
at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheet. As
of June 30, 2025, the Class A ordinary shares subject to possible redemption reflected in the balance sheet are reconciled in the following
table:

 Schedule
of Class A Ordinary Shares Subject to Possible Redemption

    Gross proceeds from Initial Public Offering 
    $253,000,000 
  
    Less: 

    Proceeds allocated to public warrants 
     (3,340,119)
  
    Offering costs allocated to Class A ordinary shares subject to possible redemption 
     (14,420,089)
  
    Plus: 

    Accretion of Class A ordinary shares subject to possible redemption 
     18,317,089 
  
    Class A ordinary shares subject to possible redemption at June 30, 2025 
    $253,556,881 

Recent
Accounting Pronouncements

In
November 2023, the FASB issued ASU 2023-07, “Segment reporting (Topic 280): Improvements to Reportable Segment Disclosures”
(“ASU 2023-07”). The amendments in this ASU require disclosures, on an annual and interim basis, of significant segment expenses
that are regularly provided to the chief operating decision maker (“CODM”), as well as the aggregate amount of other segment
items included in the reported measure of segment profit or loss. The ASU requires that a public entity disclose the title and position
of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance
and deciding how to allocate resources. Public entities will be required to provide