NOTE 10. INCOME TAX

The Company did not have any significant deferred tax assets or liabilities as of December 31, 2020.

The Company’s net deferred tax assets are as follows:


	December 31,
	2020
Deferred tax asset
Organizational costs/Startup expenses	$	653,552
Total deferred tax asset		653,552
Valuation allowance		(653,552)
Deferred tax asset, net of allowance	$	—

The income tax provision consists of the following:


	December 31,
	2020
Federal:
Current	$	147,695
Deferred		(653,552)

State:
Current	$	—
Deferred		—
Change in valuation allowance		653,552
Income tax provision	$	147,695

As of December 31, 2020, the Company did not have any U.S. federal and state net operating loss carryovers 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 believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the year ended December 31, 2020, the change in the valuation allowance was $653,552.

A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2020 is as follows:


	December 31,
	2020
	As Restated
Statutory federal income tax rate	21.0	%
State taxes, net of federal tax benefit	0.0	%
Change in valuation of warrant liability	(10.5)	%
Change in valuation of FPA liability	(10.0)	%
Change in valuation allowance	(0.6)	%
Income tax provision	(0.1)	%

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.