Financial Position - As of September 30, 2025, the company had $1,045,403 in cash and working capital of $1,061,429[110] - The company has no long-term debt or capital lease obligations as of September 30, 2025, and has a Deferred Fee of $7,043,750 payable to underwriters only if a Business Combination is completed[135] - The company lacks sufficient financial resources to sustain operations for a reasonable period, raising substantial doubt about its ability to continue as a going concern[134] Income and Revenue - The company generated net income of $1,879,085 for the three months ended September 30, 2025, primarily from $2,106,133 earned on cash and marketable securities held in the Trust Account[120] - The company has not engaged in any operations or generated revenues to date, focusing on organizational activities and identifying acquisition candidates[119] Initial Public Offering - The company raised gross proceeds of $201,250,000 from the Initial Public Offering of 20,125,000 Public Units at $10.00 per Unit[115] - A total of $201,250,000 from the Initial Public Offering and Private Placement was placed in a U.S.-based trust account, with funds held in cash or invested in U.S. government treasury obligations[125] - The company completed a private placement of 592,250 Private Placement Units at a price of $10.00 per Unit, generating gross proceeds of $5,922,500[124] Expenses and Costs - The company incurred $194,790 in formation, general, and administrative expenses from inception through September 30, 2025[121] - The company expects primary liquidity requirements during the first twelve months of the Combination Period to total approximately $1,225,000, including $225,000 for legal and accounting expenses, $200,000 for regulatory reporting, and $400,000 for directors' and officers' liability insurance[130] - The company has incurred $15,500 and $17,833 in administrative services fees for the three months ended September 30, 2025, and the period from inception through September 30, 2025, respectively[136] - The company has agreed to pay an aggregate of $5,000 per month for office space and administrative support, which will cease upon the completion of the initial Business Combination[136] Financing and Capital Needs - The company expects to incur significant costs in the pursuit of its initial Business Combination, with no assurance of success in raising capital[110] - The company may need to obtain additional financing to complete its initial Business Combination if the cash required exceeds the proceeds from the Trust Account or if a significant number of Public Shares are redeemed[132] - The company may use amounts held outside the Trust Account to repay Working Capital Loans if the initial Business Combination does not close, but no proceeds from the Trust Account will be used for such repayment[129] Borrowings - The company had borrowed $193,236 through June 16, 2025, and repaid $203,557 to the Sponsor, resulting in an overpayment of $10,321 recorded as a related party receivable[116] - The company has borrowed $193,236 through June 16, 2025, under the IPO Promissory Note, which is due at the earlier of December 31, 2025, or the closing of the Initial Public Offering[137] Accounting and Compliance - The company has not identified any critical accounting estimates as of September 30, 2025, which could materially differ from actual results[140] - The company is currently assessing the impact of ASU 2023-09 on its financial position, results of operations, or cash flows, which requires additional disclosures related to income tax rate reconciliations[142] Combination Period - The company may seek to extend the Combination Period, which would require approval from Public Shareholders[111]
Blue Acquisition Corp-A(BACC) - 2025 Q3 - Quarterly Report