Annual report pursuant to Section 13 and 15(d)

INCOME TAX

v3.24.1
INCOME TAX
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAX

NOTE 8. INCOME TAX

 

The Company did not have any significant deferred tax assets or liabilities as of December 31, 2023 and 2022.

 

The Company’s net deferred tax assets at December 31, 2023 and 2022 are as follows:

 

               
    December 31,
2023		     December 31,
2022		  
Deferred tax assets                
Net operating loss carryforward   $ -     $ -  
Startup/Organizational expenses     756,241       147,861  
Total deferred tax assets     756,241       147,861  
Valuation allowance     (756,241 )     (147,861)  
Deferred tax assets, net of valuation allowance   $ -     $ -  

 

The income tax provision for the year ended December 31, 2023 and 2022 consists of the following:

 

               
    Year Ended
December 31,
2023		     Year Ended
December 31,
2022		  
Federal                
Current   $ 810,659     $ 421,211  
Deferred     (456,612 )     (75,979 )
                 
State and Local                
Current     -       -  
Deferred     (151,769 )     (36,886 )
                 
Change in valuation allowance     603,381       112,865  
                 
Income tax provision   $ 810,659     $ 421,211  

 

In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the year ended December 31, 2023 and 2022, the change in the valuation allowance was $603,381 and $112,865.

 

A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2023 and 2022 is as follows:

 

               
    Year Ended
December 31,
2023		     Year Ended
December 31,
2022		  
Statutory federal income tax rate     21.0 %     21.0 %
State taxes, net of federal tax benefit     6.98 %     6.98 %
Valuation allowance     84.15 %     8.85 %
Income tax provision     112.13 %     36.84 %

 

The Company files income tax returns in the U.S. federal jurisdiction and is subject to examination by the various taxing authorities. The Company’s tax returns since inception remain open and subject to examination.