Income Tax

3 Months Ended

Mar. 31, 2023

Income Taxes [Abstract]

INCOME TAX

NOTE 8—INCOME TAX

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

Deferred tax asset	March 31, 2023		December 31, 2022
Organizational costs/Start-up expenses	$	—	$	347,876
Federal Net Operating Loss		—		—
Total deferred tax asset		—		347,876
Valuation allowance		—		(347,876	)
Deferred tax asset, net of allowance	$	—	$	—

The income tax provision for the three months ended March 31, 2023 and March 31, 2022, consists of the following: 

Federal	March 31, 2023		March 31, 2022
Current	$	416	$	—
Deferred		—		—
State
Current	$	—	$	—
Deferred		—		—
Change in valuation allowance		—		—
Income tax provision	$	416	$	—

As of March 31, 2023 and December 31, 2022, 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. After consideration of all of the information available, management determined that a full valuation allowance was required.

A reconciliation of the income tax rate to the Company’s effective tax rate for the years ended March 31, 2023 and 2022, is as follows:

	As of March 31, 2023			As of March 31, 2022
Statutory federal income tax rate		21.0	%		21.0	%
State taxes, net of federal tax benefit		0.0	%		0.0	%
Permanent Book/Tax Differences		(21.0	)%		(21.8	)%
Change in valuation allowance		0.0	%		0.8	%
Effective income tax rate		0.0	%		0.0	%

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.