Company: BACC
Filing Date: 2025-05-14
Form Type: S-1
Source: 0001185185-25-000465
Chunk: 339

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-05-14
Form: S-1
Chunk 339
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 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, excluding ordinary shares subject to forfeiture. Weighted average shares were reduced for the effect of an aggregate of 790,425 ordinary shares that are subject to forfeiture if the over-allotment option is not exercised by the underwriters (see Note 8). At February 28, 2025, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into ordinary shares and then share in the earnings of the Company. As a result, diluted loss per Class B ordinary share is the same as basic loss per Class B ordinary share for the period presented.

Income Taxes

The Company accounts for income taxes under ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

ASC Topic