Company: TBMC
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001013762-25-002139
Chunk: 286

Company: Trailblazer Merger Corp I
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1B
Chunk 286
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 common stock will have the right to elect all of the directors
prior to the initial Business Combination and the holders of the shares of Class A common stock will not be entitled to vote on the
election of directors during such time.

On March 28, 2023, the Chief Financial Officer
of the Company and three directors (the “subscribers”) entered into subscription agreements with the Sponsor for an interest
in the Sponsor company for their own investment purposes. The interest is backed by the Class A common stock owned by the Company
as of March 28, 2023, the date of issuance. As such, the subscribers will participate in the profits or losses of the Sponsor company
though date of liquidation. The subscription into interests of the Class A common stock founder shares to the Company’s management
and directors is in the scope of FASB ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC
718, stock-based compensation associated with equity-classified awards is measured at fair value upon the grant date. The 47,500 Class A
common stock which support the subscription interests of management and the directors has a fair value of $207,087 or $4.36 per share,
which has been recorded as stock-based compensation. The fair value was determined using a Monte Carlo Model with a volatility of 7.2%,
risk-free rate of 3.97% and a stock price of $9.89 as of the valuation date of March 28, 2023. These interests are not subject to
performance conditions and as such stock-based compensation of $207,087 was recorded on the statement of operations in March 2023.

The Sponsor has agreed, subject to certain limited
exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to occur of: (1) one year after the
completion of a Business Combination or (B) subsequent to a Business Combination, (x) if the last reported sale price of the
Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations
and the like) for any 20 trading days within any 30-trading day period commencing at least 180 days after a Business Combination,
or (y) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results