Income Taxes

12 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 10 — Income Taxes

The Company’s taxable income primarily consists of income from investments in the Trust Account. The Company’s general and administrative expenses are generally considered start-up costs and are not currently deductible. There was no income tax expense for the year ended June 30, 2021 and for the period from May 27, 2020 (inception) through June 30, 2020.

The income tax provision (benefit) consists of the following for the year ended June 30, 2021:

Current
Federal	$	-
State		-
Deferred
Federal		(96,615	)
State		-
Valuation allowance		96,615
Income tax provision	$	-

The Company’s net deferred tax assets were as follows as of June 30, 2021:

Deferred tax assets:
Start-up/Organization costs	$	58,483
Net operating loss carryover		38,132
Total deferred tax assets		96,615
Valuation allowance		(96,615	)
Deferred tax asset, net of allowance	$	-

Deferred tax assets at June 30, 2020 were deemed immaterial. As of June 30, 2021, the Company had $38,132 of U.S. federal and state net operating loss carryovers available to offset future taxable income which do not expire.

In assessing the realization of deferred tax assets, management 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. Management considers the scheduled reversal of deferred tax assets, 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.

There were no unrecognized tax benefits as of June 30, 2021. No amounts were accrued for the payment of interest and penalties at June 30, 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

A reconciliation of the statutory federal income tax rate (benefit) to the Company’s effective tax rate (benefit) for the year ended June 30, 2021 is as follows:

	June 30, 2021
Statutory Federal income tax rate		21.0	%
Change in fair value of warrant liabilities		29.5	%
Financing costs - derivative warrant liabilities		(20.5	)%
Change in Valuation Allowance		(30.0	)%
Income Taxes Benefit		0.0	%