Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 137

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 137
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. The Company will bear the expenses incurred in connection with
the filing of any such registration statements.

Underwriting
Agreement

We granted the underwriters a 45-day option from the
date of the initial public offering to purchase up to an additional 3,300,000 units to cover over-allotments which was exercised in full
on the date of the initial public offering. The underwriters were entitled to cash underwriting discount of 2.00% of the gross proceeds
of the units offered in the initial public offering, or $5,060,000 in the aggregate, which was paid to the underwriters upon the closing
of the initial public offering. Additionally, the underwriters are entitled to a deferred underwriting discount of 3.50% of the gross
proceeds of the initial public offering held in the trust account, or $8,855,000 in the aggregate, payable to BTIG, LLC to be deposited
in the trust account and released to BTIG, LLC only upon the completion of an initial 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 June 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