Company: BLUWU
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023451
Chunk: 27

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 27
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 Business Combination, two-thirds) of the votes cast by such shareholders as, being entitled to do so, vote
in person or, where proxies are allowed, by proxy at the applicable general meeting of the Company.

Note
9 – Fair Value Measurements

Recurring
Fair Value Measurements

At
September 30, 2025, the Company’s cash and marketable securities held in the Trust Account were valued at $256,272,459. The cash
and marketable securities held in the Trust Account are recorded on the balance sheet at fair value and are subject to remeasurement
at each balance sheet date. With each remeasurement, the valuations will be adjusted to fair value, with the change in fair value recognized
in the Company’s statement of operations.

The
following table presents the fair value information, as of September 30, 2025, of the Company’s financial assets that were accounted
for at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine
such fair value. The Company’s cash and marketable securities held in the Trust Account are based on dividend and interest income
and market fluctuations in the value of invested cash and marketable securities, which are considered observable. The fair value of the
cash marketable securities held in trust is classified within Level 1 of the fair value hierarchy.

The
following table sets forth by level within the fair value hierarchy the Company’s assets and liabilities that were accounted for
at fair value on a recurring basis:

 Schedule
of Fair Value on a Recurring Basis 

    (Level 1)  
    (Level 2)  
    (Level 3) 
  
    As of September 30, 2025 

    Assets: 

    Cash and marketable held in Trust Account 
    $256,272,459  
    $—  
    $— 

Non-recurring
Fair Value Measurements

The
Company performed a non-recurring fair value measurement on the Public Warrants on date of the consummation of the Initial Public Offering
to determine the allocation of the proceeds from the Units issued in the Initial Public Offering between the Class A ordinary shares
and the Public Warrants. The Company applied the residual allocation method, first by assigning the value of the Warrants and then deriving
the value of the Class A ordinary shares from the $10.00 Unit price.

The
fair value of the Public Warrants as of June