Company: TBMC
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002139
Chunk: 1453

Company: Trailblazer Merger Corp I
Filing Date: 2025-03-25
Form: 10-K
Item: Item 11
Chunk 1453
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 December 31, 2024 and 2023, the Class A
common stock subject to possible redemption reflected in the consolidated balance sheets are reconciled in the following table:

    Gross proceeds 
    $69,000,000 
  
    Less: 

    Proceeds allocated to Public Rights 
     (745,200)
  
    Class A common stock issuance costs 
     (3,882,029)
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     7,852,179 
  
    Class A Common Stock subject to possible redemption, December 31, 2023 
     72,224,950 
  
    Less: 

    Redemption of Class A common stock 
     (49,774,936)
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     4,184,138 
  
    Class A Common Stock subject to possible redemption, December 31, 2024 
    $26,634,152 

Income Taxes

The Company accounts for income taxes under ASC
740, “Income Taxes.” ASC 740, Income Taxes, requires the recognition of deferred tax assets and liabilities for both the expected
impact of differences between the consolidated financial statements and tax basis of assets and liabilities and for the expected future
tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established
when it is more likely than not that all or a portion of deferred tax assets will not be realized. As of December 31, 2024, the Company
reported a net deferred tax liability of $0, the deferred tax asset of $291,092 was fully offset by a valuation allowance. As of December
31, 2023, the Company reported a net deferred tax liability of $210,151, the deferred tax asset of $82,679 was fully offset by a valuation
allowance. The Company’s effective tax rate was 72.32% and 27.73% for the year ended December 31, 2024 and 2023, respectively. The
effective tax rate differs from the statutory tax rate of 21% for the year ended December 31, 2024 and 2023, due to stock-based compensation
expense, interest and penalties related to income taxes, merger and acquisition related costs, and the valuation allowance on the deferred
tax assets related to organization expenses.

ASC