Trailblazer Merger Corporation Reports Significant Financial Challenges, Merges with Cyabra Strategy Ltd.

Trailblazer Merger Corporation I, a shell company incorporated on November 12, 2021, reported significant financial changes in its 10-Q filing for the period ending September 30, 2024. The company’s cash position decreased sharply to $108,520 from $607,816 as of December 31, 2023. Total current assets also fell dramatically to $50.3 million from $749,753, while total assets increased slightly to $77.2 million from $73.8 million. Current liabilities surged to $54.1 million, up from $942,253, contributing to a total liabilities increase to $56.2 million from $3.2 million. The accumulated deficit expanded to $(5.0 million) from $(1.7 million), indicating ongoing financial challenges.

For the three months ended September 30, 2024, Trailblazer reported a net income of $145,328, a decline from $522,948 in the same period of 2023. For the nine months, net income increased to $735,207 from $664,229 year-over-year. Operating costs rose significantly, with $532,847 reported for the latest quarter compared to $194,068 in the prior year, reflecting increased expenses associated with being a public company. Interest earned on marketable securities held in the Trust Account was $883,635 for the quarter, up from $834,276 in 2023.

The company’s Initial Public Offering (IPO) in March 2023 generated gross proceeds of $69 million, with an additional $3.9 million from private placements. However, the company has faced liquidity issues, raising substantial doubt about its ability to continue as a going concern. As of September 30, 2024, Trailblazer had $461,908 in cash and restricted cash, down from $675,515 a year earlier.

Strategically, Trailblazer is in the process of merging with Cyabra Strategy Ltd., with the merger agreement signed on July 22, 2024. This merger is expected to result in the company being renamed "Cyabra, Inc." and aims to be completed before the mandatory liquidation date of September 30, 2025. The company has extended its business combination deadline multiple times, with the latest extension allowing for potential monthly renewals.

The company has also accrued an excise tax payable of $497,749 related to stock redemptions, reflecting the impact of the Inflation Reduction Act of 2022. As of September 30, 2024, Trailblazer had no financial activities from its subsidiaries, and its operations have primarily focused on preparing for the business combination.