Company: BACC
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001185185-25-000892
Chunk: 18

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 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, the Company had borrowed $26,089 under the Promissory Note as a result of payments made by the Sponsor on behalf
of the Company.

11

BLUE ACQUISITION CORP.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2025

The
Company 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. See Note 9.

Administrative
Services Agreement 

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

Working Capital Loans 

In
order to finance transaction costs in connection with a Business Combination, the Sponsor, BHM, certain of the Company’s officers
or directors, or any of their respective affiliates may, but are not obligated to, loan the Company funds as may be required (the “Working
Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans. In the event
that a Business Combination does not close, the Company may use a portion of the working capital held outside the Trust Account to repay
the Working Capital Loans but no proceeds from the Trust Account would be used to repay the Working Capital Loans. Up to $1,500,000 of
such Working Capital Loans may be convertible into private placement units of the post Business Combination entity at a price of $10.00
per unit at the option of the lender. As of March 31, 2025, no such Working Capital Loans were outstanding. 

Note 7 — Commitments
and Contingencies 

Risks
and Uncertainties 

The Company’s ability to complete an initial Business Combination
may be adversely affected by various factors, many of which are beyond the Company’s control