Company: BACC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001185185-25-000948
Chunk: 114

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 2
Chunk 114
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order to meet our obligations.

Off-Balance Sheet Arrangements

As of June 30, 2025, we did not have any off-balance
sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.

Contractual Obligations

We do not have any long-term debt, capital lease obligations,
operating lease obligations or long-term liabilities as of June 30, 2025. Pursuant to the Underwriting Agreement, the underwriters of
our Initial Public Offering were entitled to a Deferred Fee of $0.35 per Public Unit, or $7,043,750 in the aggregate, payable to the underwriters
from the amounts held in the Trust Account solely in the event that we complete a Business Combination, subject to the terms of the Underwriting
Agreement.

Commencing on the effective date of the Initial Public
Offering, the Company entered into an agreement with the managing member of our Sponsor to pay an aggregate of $5,000 per month for office
space, utilities, and secretarial and administrative support, pursuant to the Administrative Services Agreement. These monthly fees will
cease upon the completion of the initial Business Combination or our liquidation. For the three months ended June 30, 2025 and for the
period from February 10, 2025 (inception) through June 30, 2025, the Company recorded $2,333 to administrative services fee – related
party on the statement of operations and has not paid any amounts as of June 30, 2025, resulting in an accrual of $2,333 to administrative
services fee payable – related party on the balance sheet.

The Sponsor has agreed to loan us an aggregate
of up to $300,000 to be used for a portion of the expenses of the Initial Public Offering pursuant to the IPO Promissory Note. The IPO
Promissory Note is non-interest bearing, unsecured and due at the earlier of December 31, 2025 or the closing of the Initial Public Offering.
The loan will be repaid out of the $747,500 of offering proceeds that has been allocated to the payment of offering expenses. We had borrowed
$193,236 through June 16, 2025, the consummation of the Initial Public Offering, and repaid $203,557 to the Sponsor to settle the balance
on June 16, 2025. The overpayment of $10,321 was recorded as