Company: BLUWU
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023451
Chunk: 38

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 38
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 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.

21

PART
II – OTHER INFORMATION

Item
1. Legal Proceedings.

To
the knowledge of our management, there is no material litigation, arbitration or governmental proceeding 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
smaller reporting company, we are not required to make disclosures under this Item.

Item
2. Unregistered Sales of Equity