Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 109

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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 standard. This may make comparison of the Company’s financial statements with another public company which
is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult
or impossible because of the potential differences in accounting standards used.

Use
of Estimates

The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

Cash
and Cash Equivalents

The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash
equivalents. The Company had $1,039,666
and $0 in cash, and no
cash equivalents as of June 30, 2025 and December 31, 2024, respectively.

    7 

Cash
Held in Trust Account

As
of June 30, 2025 and December 31, 2024, the assets held in Trust Account, amounting to $253,556,881
and $0, respectively, were held in cash in a demand deposit account.

Offering
Costs Associated with the Initial Public Offering

The
Company complies with the requirements of the ASC 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering.”
Offering costs consist principally of professional and registration fees that are related to the Initial Public Offering. FASB ASC 470-20,
“Debt with Conversion and Other Options,” addresses the allocation of proceeds from the issuance of convertible debt into
its equity and debt components. The Company applies this guidance to allocate Initial Public Offering proceeds from the Units between
Class A ordinary shares and Warrants, using the residual method by allocating Initial Public Offering proceeds first to assigned value
of the Warrants and then to the Class A ordinary shares. Offering costs allocated to the Class A ordinary shares were charged to temporary
equity, and offering costs allocated to the Public Warrants and Private Placement Units were charged to shareholders’ deficit as
Public Warrants and Private Placement Warrants after management’s evaluation were accounted for under equity treatment.

Warrant
Instruments

The
Company accounts for the Public Warrants and Private Placement Warrants issued in connection with the Initial Public Offering and the
private placement in accordance with the