Company: BACC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001185185-25-000948
Chunk: 62

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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 that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating
its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ
significantly from those estimates.

Cash
and Cash Equivalents

The Company considers all short-term investments
with an original maturity of three months or less when purchased to be cash equivalents. The Company had $1,235,432 cash and no cash equivalents
as of June 30, 2025.

Cash Held in Trust Account

As of June 30, 2025, the assets held in Trust
Account, amounting to $201,571,137, were held in marketable securities.

7

BLUE ACQUISITION CORP.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

Concentration
of credit risk

Financial
instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution,
which, at times, may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access
to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows.

Offering Costs Associated with the Initial
Public Offering

The Company complies with the requirements of
the ASC 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering.” Offering costs consist principally
of professional and registration fees that are related to the Initial Public Offering. FASB ASC 470-20, “Debt with Conversion
and Other Options,” addresses the allocation of proceeds from the issuance of convertible debt into its equity and debt components.
The Company applies this guidance to allocate Initial Public Offering proceeds from the Units between Class A ordinary shares and Public
Rights, using the residual method by allocating Initial Public Offering proceeds first to assigned value of the Public Rights and then
to the Class A ordinary shares. Offering costs allocated to Public Shares were charged to temporary equity, and offering costs allocated
to Public Rights (as defined below) and Private Placement Units were charged to shareholders’ equity as the Public Rights and Private
Placement Rights, after management’s evaluated that the Public Rights and Private Placement Units should be accounted for under
equity treatment.

Fair
Value of Financial Instruments

The
fair value