Company: BACC
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001185185-25-000892
Chunk: 104

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 2
Chunk 104
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writers from the amounts held in the Trust Account solely in the event that we complete a Business Combination, subject to the terms
of the Underwriting Agreement.

Commencing on the effective date of the Initial
Public Offering, the Company entered into an agreement with the managing member of our Sponsor to pay an aggregate of $5,000 per month
for office space, utilities, and secretarial and administrative support, pursuant to the Administrative Services Agreement. These monthly
fees will cease upon the completion of the initial Business Combination or our liquidation.

The Sponsor has agreed to loan us an aggregate
of up to $300,000 to be used for a portion of the expenses of the Initial Public Offering pursuant to the IPO Promissory Note. The IPO
Promissory Note is non-interest bearing, unsecured and due at the earlier of December 31, 2025 or the closing of the Initial Public Offering.
The loan will be repaid out of the $747,500 of offering proceeds that has been allocated to the payment of offering expenses. As of March
31, 2025, we had borrowed $26,089 under the IPO Promissory Note as a result of payments made by the Sponsor on our behalf. We had borrowed
$193,236 through June 16, 2025, the consummation of the Initial Public Offering, and repaid $203,557 to the Sponsor to settle the balance
on June 16, 2025. The overpayment of $10,321 was recorded as a related party receivable.

Commitments
and Contingencies

The holders of (i) Founder Shares, (ii) Private
Placement Units (and their underlying securities) and units that may be issued upon conversion of Working Capital Loans (and their underlying
securities), if any, (iii) the Representative Shares, (iv) any Class A Ordinary Shares issuable upon conversion of the Founder Shares
and (v) any Class A Ordinary Shares held by the Initial Shareholders at the completion of the Initial Public Offering or acquired prior
to or in connection with the initial Business Combination, will be entitled to registration rights pursuant to the Registration Rights
Agreement. These holders will be entitled to make up to three demands and have piggyback registration rights. The Company will bear the
expenses incurred in connection with the filing of any such registration statements.

20

Critical
Accounting Estimates

The preparation of financial statements and related
disclosures in conformity with GAAP requires Management to make estimates