Company: TBMC
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002139
Chunk: 972

Company: Trailblazer Merger Corp I
Filing Date: 2025-03-25
Form: 10-K
Item: Item 7
Chunk 972
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    2024  
    2023 
  
    Federal 

    Current 
    $860,400  
    $306,834 
  
    Deferred 
     (418,565) 
     128,145 
  
    State 

    Current 
     —  
     — 
  
    Deferred 
     —  
     — 
  
    Penalties and interests on underpayment of estimated income taxes 
     75,181  
     — 
  
    Change in valuation allowance 
     208,413  
     82,007 
  
    Income tax provision 
    $725,429  
    $516,986 

As of December 31, 2024 and 2023, the
Company had no U.S. federal net operating loss carryovers available to offset future taxable income. The federal net operating loss can
be carried forward indefinitely. As of December 31, 2024 and 2023, the Company did not have any state net operating loss carryovers
available to offset future taxable income.

In assessing the realization of the
deferred tax assets, management considers whether it is more likely than not that some portion of all of the deferred tax assets will
not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the
periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled
reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration
of all of the information available, management believes that significant uncertainty exists with respect to future realization of the
deferred tax assets and has therefore established a full valuation allowance. For the years ended December 31, 2024 and 2023, the
change in the valuation allowance were $208,413 and $82,007, respectively.

A reconciliation of the federal income
tax rate to the Company’s effective tax rate is as follows:

    December 31,  
    December 31, 

    2024  
    2023 
  
    Statutory federal income tax rate 
     21.0% 
     21.0%
  
    Fair value of compensation expense 
     —  
     2.3%
  
    Penalties and interests on income taxes 
     7.5% 
     0.0%
  
    Merger & acquisitions related