Company: BACC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001185185-25-001689
Chunk: 131

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 4
Chunk 131
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Item 4.
Controls and Procedures.

Evaluation
of Disclosure 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 September 30, 2025 as a result of the material weakness described below.

As
of September 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