Financial Performance - For the three months ended September 30, 2025, the company reported a net income of $2,292,067, primarily from $2,715,577 earned on cash and marketable securities held in the Trust Account[104]. - For the nine months ended September 30, 2025, the company had a net income of $2,660,637, with $3,272,459 earned on cash and marketable securities, offset by various expenses totaling $611,822[105]. Financial Position - As of September 30, 2025, the company had cash of $759,229 and a working capital deficit of $577,284, compared to a deficit of $(48,541) as of December 31, 2024[106]. - The company has no long-term debt or contractual obligations as of September 30, 2025[116]. Initial Public Offering - The company generated gross proceeds of $259,830,000 from its initial public offering and private placement, with $253,000,000 placed in a trust account for future business combinations[110][111]. - The underwriters of the initial public offering are entitled to a deferred underwriting discount of 3.50% of the gross proceeds, amounting to $8,855,000, payable upon completion of an initial business combination[117]. - The underwriters were granted a 45-day option to purchase an additional 3,300,000 units, which was fully exercised, resulting in a cash underwriting discount of $5,060,000[121]. - A deferred underwriting discount of 3.50% of the gross proceeds, amounting to $8,855,000, will be payable to BTIG, LLC upon completion of an initial business combination[121]. Operational Costs and Concerns - The company has incurred significant costs related to being a public entity and expects expenses to increase substantially after identifying a target for its initial business combination[103]. - The company lacks sufficient financial resources to sustain operations for more than one year from the issuance date of the financial statements, raising substantial doubt about its ability to continue as a going concern[109]. - The company has entered into an administrative services agreement requiring a payment of $10,000 per month for office space and administrative services[118]. - The company anticipates using substantially all funds in the trust account for its initial business combination and related operational expenses[112]. Accounting and Reporting - The Company has not identified any critical accounting estimates as of September 30, 2025, indicating a stable financial reporting environment[122]. - As a smaller reporting company, the Company is not required to disclose market risk information, simplifying its reporting obligations[124].
Blue Water Acquisition Corp III Unit(BLUWU) - 2025 Q3 - Quarterly Report