Company: TBMC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-043357
Chunk: 81

Company: Trailblazer Merger Corp I
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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 total amount of unrecognized tax benefits will materially change over the next twelve months.

While ASC 740 identifies usage of an effective annual tax rate for
purposes of an interim provision, it does allow for estimating individual elements in the current period if they are significant, unusual
or infrequent. Computing the effective tax rate for the Company is complicated due to the potential impact of the timing of any Business
Combination expenses and the actual interest income that will be recognized during the year. The Company has taken a position as to the
calculation of income tax expense in a current period based on ASC 740-270-25-3 which states, “If an entity is unable to estimate
a part of its ordinary income (or loss) or the related tax (benefit) but is otherwise able to make a reasonable estimate, the tax (or
benefit) applicable to the item that cannot be estimated shall be reported in the interim period in which the item is reported.”
The Company believes its calculation to be a reliable estimate and allows it to properly take into account the usual elements that can
impact its annualized book income and its impact on the effective tax rate. As such, the Company is computing its taxable income (loss)
and associated income tax provision based on actual results through March 31, 2025.

11

Net
(Loss) Income Per Share of Common Stock

The
Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” Net (loss) income
per share of common stock is computed by dividing net (loss) income by the weighted average number of shares of common stock outstanding
for the period. Subsequent remeasurement of the redeemable Class A common stock is excluded from income per share of common stock
as the redemption value approximates fair value. Net (loss) income per share of common stock is computed by dividing the pro rata net
(loss) income between the shares of Class A common stock and the shares of Class B common stock by the weighted average number
of shares of common stock outstanding for each of the periods. The calculation of diluted income per share does not consider the effect
of the rights issued in connection with the IPO, as well as rights issuable upon the exercise of the conversion option on outstanding
working capital loans, since the exercise of the rights is contingent upon the occurrence of future events and the inclusion of such
rights would be anti-dilutive. The rights are exercisable for