Company: TBMC
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001213900-25-075720
Chunk: 21

Company: Trailblazer Merger Corp I
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 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 June 30, 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 729,450 shares of Class A common stock in the aggregate.

The