Company: BACC
Filing Date: 2025-06-02
Form Type: S-1/A
Source: 0001185185-25-000574
Chunk: 357

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-06-02
Form: S-1/A
Chunk 357
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 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.

Deferred Offering Costs

The Company complies with the requirements of the ASC 340-10-S99 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering.” Deferred offering costs consist principally of professional and registration fees that are related to the Proposed Public Offering. Should the Proposed Public Offering prove to be unsuccessful, these deferred costs, as well as additional costs to be incurred, will be charged to operations. Should the Proposed Public offering prove to be successful, these deferred costs, as well as additional costs to be incurred, will be charged to shareholder’s equity upon completion of the offering.

Fair Value of Financial Instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the balance sheet, primarily due to its short-term nature.

Fair value is defined as the price that would be received for sale of an asset or paid to transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

| ● | Level                                                                                        
 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments 
 in active markets;                                                                           |

| ● | Level                                                                                     
 2, defined as inputs other than quoted prices in active markets that are either directly  
 or indirectly observable such as quoted prices for similar instruments in active markets  
 or quoted prices for identical or similar instruments in markets that are not active; and |

| ● | Level                                                                                           
 3, defined as unobservable inputs in which little or no market data exists, therefore requiring 
 an entity to develop its own assumptions, such as valuations derived from valuation techniques  
 in which one or more significant inputs or significant value drivers are unobservable.          |

Net Loss Per Class B Ordinary Share

Net loss per Class B ordinary share is computed
by dividing net loss by the weighted average number of ordinary shares outstanding during the period,