Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 138

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 138
---
 under
this Item.

Item
4. 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 controls and procedures must