Income Tax

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Tax

NOTE 8. INCOME TAX

The Company did not have significant deferred tax assets or liabilities at December 31, 2018 and the provision for income tax was deemed to be immaterial for the period from August 24, 2018 (inception) through December 31, 2018.

The Company’s net deferred tax assets at December 31, 2019 are as follows:

	December 31, 2019
Deferred tax asset
Unrealized loss on securities	$	1,653
Total deferred tax asset		1,653
Valuation allowance		—
Deferred tax asset, net of allowance	$	1,653

The income tax provision consists of the following:

	Year Ended December 31, 2019
Federal
Current	$	669,883
Deferred		(1,653	)
State
Current	$	—
Deferred		—
Change in valuation allowance		—
Income tax provision	$	668,230

As of December 31, 2019, the Company did not have any U.S. federal and state net operating loss carryovers (“NOLs”) available to offset future taxable income.

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.

A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2019 is as follows:

	2019
Statutory federal income tax rate		21.0	%
State taxes, net of federal tax benefit		0.0	%
Change in valuation allowance		0.0	%
Income tax provision		21.0	%

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