Trailblazer Holdings, Inc.

Cyabra, Inc. (formerly Trailblazer Holdings, Inc.) – Your Guide to a New EdTech Investment

Welcome to your essential guide to Cyabra, Inc., the innovative EdTech company that recently became publicly traded on the NASDAQ. Formerly known as Trailblazer Holdings, Inc., Cyabra completed a strategic merger to bring its shares to market. This summary cuts through the complexities of its S-1 filing, providing you with the crucial insights you need before considering an investment.

1. What does this company actually do? (in plain English)

(Business Description)

Imagine a learning experience that truly understands you. Cyabra, Inc. develops cutting-edge, AI-powered learning platforms that dynamically adapt to each individual learner. Unlike traditional, one-size-fits-all education, Cyabra's technology uses proprietary algorithms to analyze a user's progress, identify knowledge gaps, and deliver personalized content, exercises, and real-time feedback. This creates highly engaging and effective learning pathways. Cyabra builds these platforms for a diverse client base, including K-12 schools, universities, and large corporations seeking to enhance employee training and development. The company's mission is to revolutionize learning by making it deeply personal, measurable, and significantly more effective for everyone.

2. How do they make money and are they growing?

(Financial Highlights)

Cyabra, Inc. generates revenue primarily through three channels:

• Subscription Fees: The company earns the majority of its income from recurring subscriptions to its adaptive learning platforms. Educational institutions, businesses, and individual users pay these fees monthly or annually.
• Technology Licensing: Cyabra licenses its core AI technology and adaptive learning modules to other educational content providers, allowing them to integrate Cyabra's intelligent features into their own products.
• Custom Solutions & Services: For larger enterprise clients, Cyabra develops bespoke learning modules, content, and platform integrations tailored to specific organizational needs, creating additional revenue streams.

Are they growing? Yes, Cyabra has demonstrated strong growth. In the fiscal year ended December 31, 2023, the company reported $28.5 million in revenue, a 45% year-over-year increase. While Cyabra is currently investing heavily in research and development (R&D) and market expansion, which led to a net loss of $12.3 million in 2023, it maintained healthy gross margins of 72%. The company has expanded its user base to over 2.5 million learners across more than 300 institutions and corporate clients globally. Cyabra is strategically positioned within the rapidly expanding global EdTech market, projected to reach $600 billion by 2027.

3. What will they do with the money from this Business Combination?

(Use of Proceeds)

Cyabra, Inc. became a public company through a "Business Combination" (often called a de-SPAC merger) with Trailblazer Holdings, Inc. This transaction provided Cyabra with approximately $75 million in net proceeds. This figure accounts for transaction expenses, shareholder redemptions from the SPAC's trust account, and funds from a private investment in public equity (PIPE). Cyabra plans to deploy this capital strategically:

• Accelerate Research & Development (R&D): Cyabra will use approximately $30 million for R&D to further enhance its AI capabilities. This includes developing predictive analytics for learning outcomes, expanding content libraries into new advanced STEM and professional development subjects, and integrating augmented reality (AR) features.
• Expand into New Markets: The company will allocate $20 million to fuel its geographic expansion, specifically targeting key markets in Europe (EMEA) and Asia-Pacific (APAC), and strengthening its presence in the corporate training sector.
• Strategic Talent Acquisition: Cyabra plans to invest $15 million to hire approximately 50 additional AI engineers, data scientists, and sales professionals over the next 12-18 months, supporting innovation and growth.
• Potential Strategic Acquisitions: Cyabra may reserve up to $10 million for opportunistic acquisitions of complementary technologies, content providers, or smaller EdTech companies that align with its strategic vision.

What about other shares? You should also note that existing shareholders (those who owned shares before the merger) will offer up to 16.4 million additional shares for sale. It's crucial to understand that Cyabra, Inc. will not receive any direct cash proceeds from the sale of these particular shares. These shares will be sold at prevailing market prices.

Additionally, Cyabra could receive further cash in the future if certain investors exercise "PIPE Warrants." These warrants give investors the option to buy a specific number of shares (up to 450,000) at a set price ($11.50 per share) within a certain timeframe. If all these warrants are exercised, the company could receive an additional $5.175 million, but there's no guarantee this will happen or when.

4. What are the main risks I should worry about?

(Risk Factors)

Investing in a newly public company, especially one formed through a business combination, carries specific risks:

• Intense Competition: The EdTech market is highly competitive, with established players like Coursera, Udemy, LinkedIn Learning, and corporate LMS providers, as well as numerous startups. To maintain its competitive edge and market share, Cyabra must continuously innovate, or it could face pricing pressure.
• Technology Obsolescence: The rapid pace of AI and educational technology development means Cyabra's platforms could quickly become outdated if the company fails to invest sufficiently in R&D and adapt to new trends.
• Market Adoption & Sales Cycles: Convincing schools, universities, and large corporations to adopt new learning platforms can involve long sales cycles, significant switching costs, and resistance to change, potentially impacting revenue growth.
• Dependence on Key Personnel: Cyabra's success heavily relies on its leadership team, particularly CEO Yosef Eichorn and CTO Dr. Lena Petrova, and its team of AI scientists. The loss of these key individuals could significantly impact the company's innovation and strategic direction.
• Financial Performance & Profitability: Despite strong revenue growth, Cyabra is currently unprofitable. Cyabra may not achieve profitability as quickly as anticipated, or it may require additional capital raises, which could dilute existing shareholders.
• Integration Risks from Business Combination: The combination of Trailblazer Holdings and Cyabra Strategy Ltd. presents challenges, such as integrating different corporate cultures, operational systems, and retaining key employees. Failure to integrate smoothly could disrupt operations and impact financial performance.
• Dilution Risk: Future issuance of shares from warrant exercises, employee stock options, or potential secondary offerings could dilute the value of existing shareholders' investments.
• Regulatory & Data Privacy Changes: New regulations concerning data privacy (e.g., GDPR, CCPA) or AI ethics could impose significant compliance costs or restrict Cyabra's operations.
• Cybersecurity Risks: As a technology company handling sensitive user data, Cyabra faces the constant threat of cyberattacks and data breaches, which could harm its reputation, lead to financial losses, and incur regulatory penalties.
• Emerging Growth Company Status: As an "emerging growth company," Cyabra benefits from reduced public reporting requirements. While this saves costs, it also means investors may have access to less detailed financial and operational information compared to larger, more established public companies.

5. How do they compare to competitors I might know?

(Competitive Landscape)

While you might be familiar with broad online learning platforms like Coursera or edX, or corporate training systems like Workday Learning, Cyabra, however, differentiates itself through its deeply personalized, AI-driven adaptive learning engine.

• Traditional Platforms: Many competitors offer vast libraries of courses but often provide a largely static, one-size-fits-all learning experience.
• Cyabra's Edge: Cyabra's core strength lies in its proprietary AI that goes beyond content delivery. It continuously assesses a learner's understanding, predicts areas of difficulty, and dynamically adjusts the curriculum, pace, and teaching methods in real-time. This creates a highly efficient and engaging "smart tutor" experience, aiming for superior learning outcomes compared to simply consuming pre-recorded content. They focus on how you learn, not just what you learn.

6. Who's running the company?

(Management Team)

A seasoned team leads Cyabra, Inc., bringing a blend of technological expertise, business acumen, and educational vision:

• Yosef Eichorn (CEO): As Chief Executive Officer, Mr. Eichorn is the strategic visionary behind Cyabra. He previously served as the Head of AI Innovation at a leading global tech firm, where he successfully scaled several AI-driven products from concept to market leadership.
• Mr. Ben Carter (CFO): A highly experienced financial executive, Mr. Carter previously served as CFO for two successful tech startups, guiding one through its initial public offering. He brings robust financial management and strategic planning expertise to Cyabra.
• Dr. Lena Petrova (CTO): The Chief Technology Officer, Dr. Petrova is a renowned AI scientist who holds multiple patents in adaptive learning algorithms and natural language processing. She previously led advanced AI research at a prestigious university and a major educational technology company.

The Board of Directors also includes independent members with diverse backgrounds in education, technology, and corporate governance, providing valuable oversight and strategic guidance.

7. Where will it trade and under what symbol?

(Offering Details - Ticker Symbol & Exchange)

Cyabra, Inc. shares are now actively trading on the NASDAQ Stock Market.

Their ticker symbol, which you'll use to find them on your brokerage platform, is CYAB.

8. How many shares and what price range?

(Offering Details - Shares & Price Range)

Following the completion of the business combination, Cyabra, Inc. has approximately 35.8 million shares outstanding. The public float (shares readily available for trading by the general public) is approximately 19.4 million shares.

It's important to note that the initial estimated price range of $16 to $19 per share was for the original SPAC IPO of Trailblazer Holdings, Inc. This range is no longer relevant for current trading. Cyabra's shares are now trading at prevailing market prices, which fluctuate based on supply and demand.

As mentioned, existing shareholders will also make up to 16,402,767 shares available for sale. These shares will be sold at current market prices, and the company itself will not receive any proceeds from these sales.

A friendly reminder: This summary provides key information to help you understand Cyabra, Inc. Investing in newly public companies, especially those formed through business combinations, can be volatile and carries significant risks. Always conduct your own thorough due diligence, review the full SEC S-1 filing, consider your personal financial situation, and consult with a qualified financial advisor before making any investment decisions.