Company: BACC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001185185-25-001689
Chunk: 109

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 109
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 respectively, and has paid $12,833 as of September 30, 2025, resulting
in an accrual of $5,000 to administrative services fee payable – related party on the balance sheet.

The
Sponsor has agreed to loan us an aggregate of up to $300,000 to be used for a portion of the expenses of the Initial Public Offering
pursuant to the IPO Promissory Note. The IPO Promissory Note is non-interest bearing, unsecured and due at the earlier of December 31,
2025 or the closing of the Initial Public Offering. The loan will be repaid out of the $747,500 of offering proceeds that has been allocated
to the payment of offering expenses. We had borrowed $193,236 through June 16, 2025, the consummation of the Initial Public Offering,
and repaid $203,557 to the Sponsor to settle the balance on June 16, 2025. The overpayment of $10,321 was recorded as a related party
receivable as of September 30, 2025.

Commitments
and Contingencies

The
holders of (i) Founder Shares, (ii) Private Placement Units (and their underlying securities) and units that may be issued upon conversion
of Working Capital Loans (and their underlying securities), if any, (iii) the Representative Shares, (iv) any Class A Ordinary Shares
issuable upon conversion of the Founder Shares and (v) any Class A Ordinary Shares held by the Initial Shareholders at the completion
of the Initial Public Offering or acquired prior to or in connection with the initial Business Combination, will be entitled to registration
rights pursuant to the Registration Rights Agreement. These holders will be entitled to make up to three demands and have piggyback registration
rights. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

21

Critical
Accounting Estimates

The
preparation of financial statements and related disclosures in conformity with GAAP 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

In
November 2023, the FASB issued ASU 2023-07. The amendments