Company: BACC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001185185-25-000948
Chunk: 63

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 8
Chunk 63
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 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
    3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions,
    such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The fair value of the Public Rights is $4,361,306,
or $0.23 per Public Rights as of June 16, 2025, the date of the consummation of the Initial Public Offering. The Public Rights have been
classified within shareholders’ equity and will not require remeasurement after issuance. The following table presents the quantitative
information regarding market assumptions used in the valuation of the Public Rights:

    June 16, 2025 
  
    Implied ordinary share price 
    $9.77 
  
    Probability of acquisition 
     60%
  
    Calculated value per Public Right 
    $0.23 

Net Income (Loss) Per Ordinary Share

The Company has two classes of shares, non-redeemable
Class A ordinary shares and Class B ordinary shares (the “non-redeemable shares”) and redeemable Class A ordinary shares (the
“redeemable shares”). Non-redeemable shares are the Class A ordinary shares underlying the Private Placement Units sold in