Company: BACC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001185185-25-000948
Chunk: 131

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 3
Chunk 131
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 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 controls and procedures must reflect the fact that there are resource constraints, and the benefits
must be considered relative to their costs. Because of the inherent limitations in all disclosure 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

Table of Contents

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