Company: TBMC
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002139
Chunk: 198

Company: Trailblazer Merger Corp I
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 198
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 the scheduled
reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration
of all of the information available, management believes that significant uncertainty exists with respect to future realization of the
deferred tax assets and has therefore established a full valuation allowance. For the years ended December 31, 2024 and 2023, the
change in the valuation allowance were $208,413 and $82,007, respectively.

A reconciliation of the federal income
tax rate to the Company’s effective tax rate is as follows:

    December 31,  
    December 31, 

    2024  
    2023 
  
    Statutory federal income tax rate 
     21.0% 
     21.0%
  
    Fair value of compensation expense 
     —  
     2.3%
  
    Penalties and interests on income taxes 
     7.5% 
     0.0%
  
    Merger & acquisitions related costs 
     23.0% 
     0.0%
  
    Change in valuation allowance 
     20.8% 
     4.4%
  
    Income tax provision 
     72.3% 
     27.7%

The Company’s effective tax rates
for the periods presented differ from the expected (statutory) rates due to stock-based compensation expense, interest and penalties related
to income taxes, merger and acquisition related costs, and the valuation allowance on the deferred tax assets related to organization
expenses.

The Company files income tax returns
in the U.S. federal jurisdiction in various state and local jurisdictions and is subject to examination by the various taxing authorities.

NOTE 9. FAIR VALUE MEASUREMENTS

The Company follows the guidance in ASC 820 for
its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets
and liabilities that are-measured and reported at fair value at least annually.

F-21

The fair value of the Company’s financial
assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale
of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the
measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of
observable inputs (market data obtained from independent sources) and