Company: TBMC
Filing Date: 2025-11-21
Form Type: 10-Q
Source: 0001213900-25-113605
Chunk: 107

Company: Trailblazer Merger Corp I
Filing Date: 2025-11-21
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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 instruments that potentially subject
the Company to concentration of credit risk consist of a cash account in a financial institution which, at times may exceed the Federal
Deposit Insurance Corporation coverage limit of $250,000. The Company has not experienced losses on this account.

Fair Value of Financial Instruments

The fair value of the Company’s assets and
liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying
amounts represented in the accompanying condensed consolidated balance sheets, primarily due to their short-term nature.

Derivative Financial Instruments

The Company evaluates its financial instruments
to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with FASB ASC
Topic 815, “Derivatives and Hedging”. Derivative instruments are initially recorded at fair value on the grant date and re-valued
at each reporting date, with changes in the fair value reported in the statement of operations. The classification of derivative instruments,
including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative
assets and liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion
of the instruments could be required within 12 months of the balance sheet date.

12

Stock-Based Compensation

The Company adopted ASC Topic 718, Compensation—Stock
Compensation, guidance to account for its stock-based compensation. It defines a fair value-based method of accounting for an employee
stock option or similar equity instrument. The Company recognizes all forms of share-based payments, including stock option grants, warrants
and restricted stock grants, at their fair value on the grant date, which are based on the estimated number of awards that are ultimately
expected to vest. Share-based payments, excluding restricted stock, are valued using a Black-Scholes option pricing model. Grants of share-based
payment awards issued to non-employees for services rendered have been recorded at the fair value of the share-based payment, which is
the more readily determinable value. The grants are amortized on a straight-line basis over the requisite service periods, which is generally
the vesting period. If an award is granted, but vesting does not occur, any previously recognized compensation cost is reversed in the
period related to the termination of service. Stock-based compensation expenses are included in costs and operating expenses depending
on the nature of the services provided in the statement of operations.

Recent Accounting Standards

In December