Company: TBMC
Filing Date: 2025-11-21
Form Type: 10-Q
Source: 0001213900-25-113605
Chunk: 104

Company: Trailblazer Merger Corp I
Filing Date: 2025-11-21
Form: 10-Q
Item: Part I, Item 8
Chunk 104
---
, and the deferred tax asset of $385,948 and $291,092, respectively, was
fully offset by a valuation allowance. The Company’s effective tax rate was (1.37)% and (4.63)% for the three and nine months ended
September 30, 2025, respectively, and 57.91% and 44.33% for the three and nine months ended September 30, 2024, respectively. The effective
tax rate differs from the statutory tax rate of 21% for the three and nine months ended September 30, 2025 and 2024, due to interest and
penalties related to income taxes, loss on debt extinguishment of promissory note, gain on change in fair value of promissory note, merger
and acquisition related costs, and the valuation allowance on the deferred tax assets related to organization expenses.

ASC 740 also clarifies the accounting for uncertainty
in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process
for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits
to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides
guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

The Company recognizes accrued interest and penalties
related to unrecognized tax benefits and underpayment of income tax as income tax expense. As of September 30, 2025 and December 31, 2024,
the Company incurred $46,687 and $75,181, respectively, for interest and penalties related to underpayment of income taxes. There were
no unrecognized tax benefits as of September 30, 2025 and December 31, 2024. The Company is currently not aware of any issues under review
that could result in significant payments, accruals or material deviation from its position. On July 1, 2025, the Company paid $941,366
to settle the Company’s 2024 income taxes payable, including the associated penalties and interests. In addition, on July 1, 2025,
the Company paid $96,552 for the Company’s estimated 2025 income taxes payable. The Company used the amounts previously withdrawn
from Trust Account to settle the income taxes payable.

The Company has identified the United States as
its only “major”