Company: BACC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001185185-25-000948
Chunk: 16

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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837,163  
     20,125,000 
  
    Ownership percentage 
     28% 
     72%

    Net income allocated by class 
    $(40,020) 
    $223,648 

    Less: Remeasurement of Class A ordinary shares to redemption value based on ownership percentage 
     (5,029,608) 
     (12,915,496)
  
    Plus: Accretion applicable to remeasurement of redeemable Class A ordinary shares to redemption value 
     —  
     17,945,104 
  
    Total (loss) income based on ownership percentage 
    $(5,069,628) 
    $5,253,256 

    Weighted average shares outstanding 
     6,415,464  
     1,998,227 
  
    Basic and diluted net income (loss) per share 
    $(0.79) 
    $2.63 

Income Taxes

The Company accounts for income taxes under ASC
Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income
taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets
and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods
in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred
tax assets to the amount expected to be realized.

ASC Topic 740 prescribes a recognition threshold
and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in
a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing
authorities. The Company’s management determined that the Cayman Islands is the Company’s major tax jurisdiction. The Company
recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of June 30, 2025, there were
no unrecognized tax benefits and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under
review that could result in significant payments, accruals or material deviation from its position.

The
Company is considered to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently
not subject to income taxes or income tax filing requirements in the