Company: BLUWU
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023451
Chunk: 32

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 32
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, offset by $302,793 of formation, general and administrative expenses, $249,560 of legal
and accounting expenses, $36,333 of administrative support fees, and $23,136 of insurance expense.

Liquidity
and Capital Resources

As
of September 30, 2025 and December 31, 2024, we had cash of $759,229 and $0, respectively, and working capital (deficit) of $577,284
and $(48,541), respectively.

For
the nine months ended September 30, 2025, net cash used in by operating activities was $367,921. Net income of $2,660,637 was increased
by $101,708 of formation, general and administrative costs paid by the Sponsor under the promissory note and an $142,193 increase in
operating assets and liabilities, offset by $3,272,459 of interest income on the trust account.

The
Company has incurred and expects to continue to incur significant costs in pursuit of its financing and acquisition plans. The Company
lacks the financial resources it needs to sustain operations for a reasonable period of time, which is considered to be one year from
the issuance date of the financial statement. Although no formal agreement exists, the Sponsor is committed to extend Working Capital
Loans (defined in Note 6) as needed. The Company cannot assure that its plans to consummate an initial Business Combination will be successful.

These
factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern one year from the date
these financial statements are issued. These financial statements do not include any adjustments that might result from the outcome of this
uncertainty.

Our
liquidity needs have been satisfied to date through the purchase of founder shares from our Sponsor for $25,000, $300,000 in loans from
our Sponsor, and proceeds generated from our initial public offering and simultaneous private placement that generated gross proceeds
of $259,830,000.

18

Following
the closing of the initial public offering, on June 11, 2025, an amount of $253,000,000 ($10.00 per unit) from the net proceeds of the
sale of the Units and the Private Placement Units, was placed in the trust account, with Continental Stock Transfer & Trust Company
acting as trustee. The funds are initially to be held in cash, including demand deposit accounts at a bank, or invested only in