Note 7 - Income Tax

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Text Block]

Note

–

Income Tax

The Company incurred United States federal income tax expense of approximately

$1,182,914

for year ending

December 31, 2018.

September 14, 2018

and

December 17, 2018,

the Company made estimated quarterly tax payments of

$430,000

and

$540,000,

respectively, to the Internal Revenue Service (“IRS”) for federal income taxes estimated for

2018

on interest earned in the Trust Account. The funds were paid from the Trust Account. At

December 31, 2018,

the Company had accrued federal income taxes of

$212,914

included in accrued taxes payable on the balance sheet.

The Company’s provision for income tax consists of the following:

	For the Year Ended December 31, 2018
Federal
Current	$	1,182,914
Deferred	$	( 36,695	)
State
Current	$	-
Deferred	$	-
Change in valuation allowance	$	36,695
Income tax provision	$	1,182,914

The Company incurred costs of

$174,737

related to its search to complete a business combination which are

not

deductible for federal income tax purposes and resulted in the generation of a deferred tax asset of

$36,695

which is available to offset future taxable income.

In assessing the realization of deferred tax assets, the Company considers whether it is more likely than

not

that some portion or 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. The Company considers the scheduled reversal of deferred tax assets, projected future taxable income and tax planning strategies in making this assessment.

A reconciliation of the federal income tax rate to the Company’s effective tax rate at

December 31, 2018

is as follows:

	For the Year Ended December 31, 2018
Statutory federal income tax rate		21.0	%
State taxes, net of federal tax benefit		0.0	%
Deferred tax rate change
Change in valuation allowance		0.7	%
Income tax provision		21.7	%