Company: BACC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001185185-25-000948
Chunk: 117

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 2
Chunk 117
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 of June 30, 2025
as a result of the material weakness described below.

As of June 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 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

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