Note

- Income Tax

The Company incurred United States federal income tax expense of approximately

$1,730,072

and

$1,182,914

for the years ending

December

31,

2019

and

2018,

respectively.

The Company made estimated quarterly tax payments totaling

$1,826,000,

to the Internal Revenue Service for

2019

estimated federal income taxes from interest earned in the Trust Account. The funds were paid from the Trust Account. In the accompanying consolidated balance sheets, the Company had prepaid income taxes of

$65,192

as of

December

31,

2019

and accrued federal income taxes payable of

$212,914

as of

December

31,

2018.

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

	For the Years Ended December 31,
	2019			2018
Federal
Current	$	1,765,556		$	1,182,914
Deferred		(605,928	)		(36,695	)
State
Current		—			—
Deferred		—			—
Change in valuation allowance		570,444			36,695
Income tax provision	$	1,730,072		$	1,182,914

The Company incurred costs of

$2,903,814

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

$32,822

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,

2019

and

2018

is as follows:

	For the Years Ended December 31,
	2019			2018
Statutory federal income tax rate		21.0	%		21.0	%
State taxes, net of federal tax benefit		0.0	%		0.0	%
Deferred tax rate change		0.0	%		0.0	%
Change in valuation allowance		10.4	%		0.7	%
Income tax provision		31.4	%		21.7	%