Company: BLUWU
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023451
Chunk: 31

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 31
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    financing while the debt security is outstanding;

    ●
    using
    a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for expenses,
    capital expenditures, acquisitions and other general corporate purposes;

    ●
    limitations
    on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate;

    ●
    increased
    vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation;
    and

    ●
    limitations
    on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution
    of our strategy and other purposes and other disadvantages compared to our competitors who have less debt.

Results
of Operations and Known Trends or Future Events

We
have neither engaged in any operations nor generated any revenues to date. Our only activities from November 1, 2024 (inception) through
September 30, 2025 relates to organizational activities, our initial public offering, and, subsequent to the initial public offering,
our pursuit of an initial business combination. We will not generate any operating revenues until after completion of our initial business
combination. We will generate non-operating income in the form of interest income on cash and cash equivalents after the initial public
offering. There has been no significant change in our financial or trading position and no material adverse change has occurred since
the date of our audited financial statements. We have incurred, and expect to incur, increased expenses as a result of being a public
company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses. Additionally, we
expect our expenses to increase substantially after identifying a target for our initial business combination.

For
the three months ended September 30, 2025, we had net income of $2,292,067, which consisted of $2,715,577 of income earned on cash and
marketable securities held in the Trust Account, offset by $137,670 of formation, general and administrative expenses, $236,837 of legal
and accounting expenses, $30,000 of administrative support fees, and $19,003 of insurance expense.

For
the nine months ended September 30, 2025, we had net income of $2,660,637, which consisted of $3,272,459 of income earned on cash and
marketable securities held in the Trust Account