Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 90

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 90
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 our audited financial statements.
We have incurred, and expect to incur, increased expenses as a result of being a public company (for legal, financial reporting, accounting
and auditing compliance), as well as for due diligence expenses. Additionally, we expect our expenses to increase substantially after
identifying a target for our initial business combination.

For
the three months ended June 30, 2025, we had net income of $444,392, which consisted of $556,881 of interest income on the trust account,
offset by $89,301 of formation, general and administrative expenses, $12,723 of legal and accounting expenses, $6,333 of administrative
support fees, and $4,132 of insurance expense.

For
the six months ended June 30, 2025, we had net income of $368,570, which consisted of $556,881 of interest income on the trust account,
offset by $165,123 of formation, general and administrative expenses, $12,723 of legal and accounting expenses, $6,333 of administrative
support fees, and $4,132 of insurance expense.

Liquidity
and Capital Resources

As
of June 30, 2025 and December 31, 2024, we had cash of $1,039,666 and $0, respectively, and working capital (deficit) of $1,053,059 and
$(48,541), respectively.

For
the six months ended June 30, 2025, net cash used in by operating activities was $87,484. Net income of $368,570 was increased by $101,708
of formation, general and administrative costs paid by the Sponsor under the promissory note, and decreased by $556,881 of interest income
on the trust account and an $881 decrease in operating assets and liabilities.

Our
liquidity needs have been satisfied to date through the purchase of founder shares from our Sponsor for $25,000, $300,000 in loans from
our Sponsor, and proceeds generated from our initial public offering and simultaneous private placement that generated gross proceeds
of $259,830,000.

18 

Following the closing of the initial public offering,
on June 11, 2025, an amount of $253,000,000 ($10.00 per unit) from the net proceeds of the sale of the Units and the Private Placement
Units, was placed in the trust account, with Continental Stock Transfer & Trust Company