Company: BACC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001185185-25-000948
Chunk: 93

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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 controls and procedures, no evaluation
of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances
of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control over Financial
Reporting

Not applicable.

22

PART II –
OTHER INFORMATION

Item 1.
Legal Proceedings.

To the knowledge of our Management, there is no
material litigation, currently pending against us, any of our officers or directors in their capacity as such or against any of our property.

Item 1A.
Risk Factors.

As a smaller reporting company under Rule 12b-2
of the Exchange Act, we are not required to include risk factors in this Report. For additional risks relating to our operations, other than as set forth below, see the section titled “Risk
Factors” contained in our IPO Registration Statement. Any of these factors could result in a significant or
material adverse effect on our results of operations or financial condition. Additional risks could arise that may also affect our ability
to consummate an initial Business Combination. We may disclose changes to such risk factors or disclose additional risk factors from time
to time in our future filings with the SEC.

We have identified a material weakness in
our internal control over financial reporting as of June 30, 2025. If we are unable to maintain an effective system of internal control
over financial reporting, we may not be able to accurately report our financial results in a timely manner, which may adversely affect
investor confidence in us and materially and adversely affect our business and operating results.

We have identified a material weakness in our
internal controls over financial reporting as of June 30, 2025 due to a lack of properly designed, implemented, and effectively operating
controls. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that
there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented, or
detected and corrected on a timely basis.

Effective internal controls are necessary for
us to provide reliable financial reports and prevent fraud. Measures to remediate material weaknesses may be time-consuming and costly
and there is no assurance that such initiatives will ultimately have the intended effects. If we are unable to maintain an effective system
of internal control