Company: BACC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001185185-25-001689
Chunk: 16

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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    Redeemable shares 

    Class B  
    Class A 

    Ordinary shares  
    Ordinary shares 
  
    Total number of shares 
     7,837,163  
     20,125,000 
  
    Ownership percentage 
     28% 
     72%

    Net income allocated by class 
    $486,646  
    $1,576,067 

    Less: Remeasurement of Class A ordinary shares to redemption value based on ownership percentage 
     (5,619,909) 
     (14,431,328)
  
    Plus: Accretion applicable to remeasurement of redeemable Class A ordinary shares to redemption value 
     —  
     20,051,237 
  
    Total (loss) income based on ownership percentage 
    $(5,133,263) 
    $7,195,976 

    Weighted average shares outstanding 
     6,976,822  
     9,155,579 
  
    Basic and diluted net income (loss) per share 
    $(0.74) 
    $0.79 

Income
Taxes

The
Company accounts for income taxes under ASC Topic 740, “Income Taxes,” which requires an asset and liability approach
to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between
the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted
tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are
established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

ASC
Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement
of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely
than not to be sustained upon examination by taxing authorities. The Company’s management determined that the Cayman Islands is
the Company’s major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits
as income tax expense. As of September 30, 2025, there were no unrecognized tax benefits and no amounts accrued for interest and penalties.
The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation
from