Company: BACC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001185185-25-000948
Chunk: 143

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 4
Chunk 143
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Item 4.
Controls and Procedures.

Evaluation
of Disclosure Controls and Procedures

Disclosure controls are procedures that are designed
with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this Report,
is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls
and procedures are also designed with the objective of ensuring that such information is accumulated and communicated to our Management,
including our Certifying Officers, as appropriate, to allow timely decisions regarding required disclosure. Under the supervision and
with the participation of our Management, including our Certifying Officers, we carried out an evaluation of the effectiveness of the
design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based
on the foregoing, our Certifying Officers concluded that our disclosure controls and procedures were not effective as of June 30, 2025
as a result of the material weakness described below.

As of June 30, 2025, we have a material weakness
in our internal controls over financial reporting due to a lack of properly designed, implemented, and effectively operating controls.
Management, with oversight from the Board of Directors and the audit committee of the Board of Directors, will implement a remediation
plan for this material weakness, including, among other things, designing and maintaining a formal control environment, accounting policies,
procedures and controls to achieve complete, accurate and timely financial accounting, reporting and disclosures. We will also enhance
our processes to identify and appropriately apply applicable accounting requirements to better evaluate and understand the nuances of
the complex accounting standards that apply to our financial statements including making greater use of third-party professionals with
whom we consult regarding complex accounting applications. The elements of our remediation plan can only be accomplished over time, and
we can offer no assurance that these initiatives will ultimately have the intended effects. We believe our efforts will enhance our controls
relating to accounting for complex financial transactions, but we can offer no assurance that our controls will not require additional
review and modification in the future as industry accounting practice may evolve over time.

We do not expect that our disclosure controls
and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and
operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met.
Further, the design of disclosure