Company: BLUWU
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023451
Chunk: 11

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 11
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 Total
    number of shares

    7,008,000

    25,300,000

    Ownership
    percentage

    22
    %

    78
    %

    Net
    income allocated by class

    472,055

    2,188,582

    Less:
    Remeasurement of Class A redeemable shares to redemption value based on ownership percentage

    (4,562,242
    )

    (16,470,425
    )
  
    Plus:
    Accretion applicable to remeasurement of Class A redeemable shares to redemption value

    —

    21,032,667

    Total
    (loss) income based on ownership percentage
     
    $
    (4,090,187
    )
     
    $
    6,750,824

    Weighted
    average shares outstanding

    6,265,707

    10,286,813

    Basic
    and diluted net (loss) income per share
     
    $
    (0.65
    )
     
    $
    0.66

    9

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 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax
positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than
not to be sustained upon examination by taxing authorities. The Company’s management determined that the Cayman Islands is the
Company’s major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as
income tax expense. As of September 30, 2025, there were no unrecognized tax benefits and no amounts accrued for interest and penalties.
The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation
from its position