Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 68

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 68
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 3 measurements). These tiers include:

    ●
    Level
    1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

    ●
    Level
    2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted
    prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active;
    and

    ●
    Level
    3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions,
    such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Net
income (loss) per ordinary share

The
Company has two classes of shares, non-redeemable Class A ordinary shares and Class B ordinary shares and redeemable Class A ordinary
shares. Non-redeemable Class A ordinary shares are the Class A ordinary shares underlying the Private Placement Units sold in the private
placement and do not have redemption rights to the amounts held in the Trust Account. Class B ordinary shares are the founder shares
which do not have redemption rights on the amounts held in the Trust Account. Redeemable Class A ordinary shares are the Class A ordinary
shares underlying the Units issued at the Initial Public Offering and have redemption rights to the amounts held in the Trust Account.

The
Company complies with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share”. The condensed statements
of operations include a presentation of income (loss) per redeemable Class A ordinary shares and income (loss) per non-redeemable Class
A ordinary shares and Class B ordinary (“non-redeemable ordinary shares”) shares following the two-class method of income
(loss) per ordinary shares. In order to determine the net income (loss) attributable to both the redeemable Class A ordinary shares and
non-redeemable ordinary shares, the Company first considered the total income allocable to both classes of ordinary shares. This is calculated
using the total net income (loss) less any dividends paid. For purposes of calculating net income (loss) per share, any remeasurement
of the Class A ordinary shares subject to possible redemption was treated as dividends paid to the public shareholders. Subsequent to
calculating the total income (loss) allocable to both classes of ordinary shares, the Company split the amount to be allocated using