Reaction with hydrazoic acid forms the protonated azido ketone 2, which goes through a rearrangement reaction with the alkyl group R, migrating over the C-N bond with expulsion of nitrogen.
The interaction with hydrazoic acid generates the protonated azido ketone 2, which subsequently experiences a rearrangement process where the alkyl group R shifts across the C-N bond, releasing nitrogen in the process.