Company: BLUWU
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023451
Chunk: 37

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 37
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 business combination. The deferred underwriting commissions will be payable as follows: (i) $0.30 per Unit sold in the initial
public offering will be paid to BTIG, LLC in cash upon the closing of the initial business combination and (ii) $0.05 per Unit sold in
the initial public offering will be payable to BTIG, LLC in cash, provided that the Company and the Sponsor have the right, in the Company
and the Sponsor’s discretion, to reallocate any portion of the Allocable Amount to third parties not participating in the initial
public offering (but who are members of FINRA) that assist the Company in consummating the initial business combination.

20

Critical
Accounting Estimates

The
preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure
of contingent assets and liabilities at the date of the financial statements, and income and expenses during the periods reported. Actual
results could materially differ from those estimates. We have not identified any critical accounting estimates as of September 30, 2025.

Recent
Accounting Pronouncements

Refer
to Note 2. Summary of Significant Accounting Policies of the Notes to the Financial Statements.

Item
3. Quantitative and Qualitative Disclosures About Market Risk

As
smaller reporting company, we are not required to make disclosures under this Item.

Item
4. Controls and Procedures

Disclosure
controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed
under the Exchange Act, such as this report, is recorded, processed, summarized, and reported within the time periods specified in the
SEC’s rules and forms. Disclosure controls and procedures are also designed with the objective of ensuring that such information
is accumulated and communicated to our management, including our Certifying Officers, as appropriate, to allow timely decisions regarding
required disclosure. Under the supervision and with the participation of our management, including our Certifying Officers, we carried
out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e)
and 15d-15(e) under the Exchange Act. Based on the foregoing, our Certifying Officers concluded that our disclosure controls and procedures
were not effective as of September 30, 2025 as a result of the material weakness described below.

As
of September