Company: TBMC
Filing Date: 2025-11-21
Form Type: 10-Q
Source: 0001213900-25-113605
Chunk: 64

Company: Trailblazer Merger Corp I
Filing Date: 2025-11-21
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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 transaction qualifies as an extinguishment.
Accordingly, the original debt (Promissory Note – Related Party) was derecognized and the new debt was recognized at fair value,
with the resulting loss on debt extinguishment recorded in earnings. The Company established the initial fair value the new debt as of
July 29, 2025, using a calculation prepared by a third party valuation team which takes into consideration market assumptions which are
disclosed in the Unaudited Notes to Condensed Consolidated Financial Statements. The Company had recorded a loss on extinguishment of
promissory note amounting to $6,222,973 which was presented in the condensed consolidated statements of operations.

As of September 16, 2025,
the cash payment option of the promissory note has expired and the settlement of the promissory note is through issuance of new class
of preferred stock. As of September 30, 2025, the Company entered into an amendment to the Second Amended and Restated Promissory Note
with the Sponsor, pursuant to which the amount of the Note was further increased by $300,000 to $4,330,000. The Company assessed that
the amended agreement is a freestanding ASC 480 liability (variable-share settlement for a predominantly fixed monetary amount), measured
at fair value initially and subsequently, with changes in earnings. The Company recognized a gain on change in fair value of promissory
note of $2,856,375 during the three and nine months ended September 30, 2025.

As of September 30, 2025, the second amended and restated promissory
note has a fair value of $7,393,329.

29

Registration and Stockholder’s Rights

Pursuant to a registration
rights agreement entered into on March 28, 2023, the holders of the founder shares, Placement Units and any unit that may be issued
upon conversion of the Working Capital Loans (and any underlying shares of Class A common stock) are entitled to registration rights pursuant
to a registration rights agreement requiring the Company to register such securities for resale (in the case of the founder shares, only
after conversion to shares of our Class A common stock). The holders of these securities will be entitled to make up to three demands,
excluding short form registration demands, that the Company register such securities. In addition, the holders have certain “piggy-back”
registration rights with respect to registration statements filed subsequent to the completion of