Company: BACC
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001185185-25-000892
Chunk: 56

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 8
Chunk 56
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 with an original maturity of three months or less when purchased to be cash equivalents.
The Company had $70,030 cash and no cash equivalents as of March 31, 2025.

Concentration
of credit risk

Financial
instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution,
which, at times, may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access
to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows.

Deferred
Offering Costs

The Company complies with the requirements of
the ASC 340-10-S99 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering.” Deferred
offering costs consist principally of professional and registration fees that are related to the Initial Public Offering. Should the Initial
Public Offering prove to be unsuccessful, these deferred costs, as well as additional costs to be incurred, will be charged to operations.
Should the Initial Public Offering prove to be successful, these deferred costs, as well as additional costs to be incurred, will be charged
to shareholder’s equity upon completion of the offering.

Fair
Value of Financial Instruments

The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair
Value Measurements and Disclosures,” approximates the carrying amounts represented in the balance sheet, primarily due to its short-term
nature.

Fair
value 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