Company: BACC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001185185-25-000948
Chunk: 17

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 17
---
 Cayman Islands or the United States. As such, the Company’s
tax provision was zero for the period presented.

Class A Ordinary Shares Subject to Possible Redemption

The Public Shares contain a redemption feature which
allows for the redemption of such Public Shares in connection with the Company’s liquidation, or if there is a shareholder vote
or tender offer in connection with the Company’s initial Business Combination. In accordance with ASC 480-10-S99, the Company classifies
Public Shares subject to possible redemption outside of permanent equity as the redemption provisions are not solely within the control
of the Company. The Company recognizes changes in redemption value immediately as they occur and will adjust the carrying value of redeemable
shares to equal the redemption value at the end of each reporting period. Immediately upon the closing of the Initial Public Offering,
the Company recognized the accretion from initial book value to redemption value. The change in the carrying value of redeemable shares
will result in charges against additional paid-in capital (to the extent available) and accumulated deficit. Accordingly, as of June 30,
2025, Class A ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’
deficit section of the Company’s balance sheet. As of June 30, 2025, the Class A ordinary shares subject to possible redemption
reflected in the balance sheet are reconciled in the following table:

    Gross proceeds from Initial Public Offering 
    $201,250,000 
  
    Less: 

    Proceeds allocated to Public Rights 
     (4,361,306)
  
    Offering costs allocated to Class A ordinary shares subject to possible redemption 
     (13,262,661)
  
    Plus: 

    Accretion of Class A ordinary shares subject to possible redemption 
     17,945,104 
  
    Class A ordinary shares subject to possible redemption at June 30, 2025 
    $201,571,137 

10

BLUE ACQUISITION CORP.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

Rights

The Company will account for the Public Rights
and Private Placement Rights to be issued in connection with the Initial Public Offering and the private placement in accordance with
the guidance contained in FASB ASC Topic 815, “Derivatives and Hedging”. Accordingly, the Company evaluated and will classify
the rights under equity treatment at