Company: TBMC
Filing Date: 2025-11-21
Form Type: 10-Q
Source: 0001213900-25-113605
Chunk: 99

Company: Trailblazer Merger Corp I
Filing Date: 2025-11-21
Form: 10-Q
Item: Part I, Item 8
Chunk 99
---
 the same taxable year of a Business Combination) and (iv) the content of regulations
and other guidance from the Treasury. In addition, because the excise tax would be payable by the Company and not by the redeeming holder,
the mechanics of any required payment of the excise tax have not been determined. The foregoing could cause a reduction in the cash available
on hand to complete a Business Combination and in the Company’s ability to complete a Business Combination.

During the second quarter of 2024, the Internal
Revenue Service issued final regulations with respect to the timing and payment of the Excise Tax. These regulations provided that the
filing and payment deadline for any liability incurred during the period from January 1, 2023 to December 31, 2023 would be October 31,
2024. Any amount of such Excise Tax not paid in full, will be subject to additional interest and penalties which are currently estimated
at 10% interest per annum and a 5% of failure to file penalty per month and 0.5% failure to pay penalty per month or portion of a month
up to 25% of the total liability for any amount that is unpaid from November 1, 2024 until paid in full. The Company had no common stock
redemptions in 2023 and no excise tax was due on October 31, 2024.

The Company had recorded a 1% excise tax payable
based on the amount of common stocks redeemed. As of September 30, 2025 and December 31, 2024, excise tax payable amounted to $880,825
and $497,749, respectively. For the three and nine months ended September 30, 2025, the Company incurred penalties and interests on excise
tax liability of $86,254 and $143,571, respectively. For the three and nine months ended September 30, 2024, the Company did not incur
any penalties and interests on excise tax liability. The penalties and interests on excise tax liability through September 30, 2025 of
$143,571 was accrued and added to the excise tax payable of $737,254.

8

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”)
for interim