Income Tax

8 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

INCOME TAX

NOTE 8. INCOME TAX

The Company's net deferred tax asset at December 31, 2019 is as follows:

Deferred tax asset
Net operating loss carryforward	$	27,275
Valuation allowance		—
Deferred tax asset	$	27,275

The income tax benefit for the period from April 30, 2019 (inception) through ended December 31, 2019 consists of the following:

Federal
Current	$	—
Deferred		(27,275	)
State
Current	$	—
Deferred		—
Change in valuation allowance		—
Income tax benefit	$	(27,275	)

As of December 31, 2019, the Company had U.S. federal and state net operating loss carryovers ("NOLs") of $129,879 available to offset future taxable income. These NOLs carryforward indefinitely. In accordance with Section 382 of the Internal Revenue Code, deductibility of the Company's NOLs may be subject to an annual limitation in the event of a change in control as defined under the regulations

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 determined that a valuation allowance was not required.

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

Statutory federal income tax rate	21.0	%
State taxes, net of federal tax benefit	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. The Company considers Nevada to be a significant state tax jurisdiction.