Company: TBMC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-043357
Chunk: 18

Company: Trailblazer Merger Corp I
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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, the Company recognized the accretion from initial book
value to redemption amount value. The change in the carrying value of redeemable shares will result in charges against additional paid-in
capital and accumulated deficit. Accordingly, at March 31, 2025 and December 31, 2024, Class A common stock subject to possible
redemption is presented at redemption value as temporary equity, outside of the stockholders’ deficit section of the Company’s
condensed consolidated balance sheets.

10

At
March 31, 2025 and December 31, 2024, the Class A common stock subject to possible redemption reflected in the balance sheet are
reconciled in the following table:

    Gross proceeds 
    $69,000,000 
  
    Less: 

    Proceeds allocated to Public Rights 
     (745,200)
  
    Class A common stock issuance costs 
     (3,882,029)
  
    Redemption of Class A common stock 
     (49,774,936)
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     12,036,317 
  
    Class A Common Stock subject to possible redemption, December 31, 2024 
    $26,634,152 
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     331,404 
  
    Class A Common Stock subject to possible redemption, March 31, 2025 
    $26,965,556 

Income
Taxes

The Company accounts for income taxes under ASC 740, “Income
Taxes.” ASC 740, Income Taxes, requires the recognition of deferred tax assets and liabilities for both the expected impact of differences
between the condensed consolidated financial statements and tax basis of assets and liabilities and for the expected future tax benefit
to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when
it is more likely than not that all or a portion of deferred tax assets will not be realized. As of March 31, 2025 and December 31, 2024,
the Company reported a net deferred tax liability of $0, and the deferred tax asset of $349,844 and $291,092, respectively, was fully
offset by a valuation allowance. The Company’s effective tax rate was (16.86)% and 33.66% for the three months ended March 31