Income Taxes

12 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 10 – Income Taxes

The Company’s general and administrative costs are generally considered start-up costs and are not currently deductible.

The income tax provision (benefit) consists of the following:

	June 30, 2022			June 30, 2021
Current
Federal	$	-		$	-
State		-			-
Deferred
Federal		(191,650	)		(96,615	)
State		-			-
Valuation allowance		191,650			96,615
Income tax provision	$	-

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

	June 30, 2022			June 30, 2021
Deferred tax assets:
Start-up/Organization costs	$	247,249		$	58,483
Net operating loss carryover		41,016			38,132
Total deferred tax assets		288,265			96,615
Valuation allowance		(288,265	)		(96,615	)
Deferred tax asset, net of allowance	$	-		$	-

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. As of June 30, 2022 and June 30, 2021, the Company had approximately $195,000 and $182,000, respectively of U.S. federal net operating loss carryovers available to offset future taxable income which do not expire.

A reconciliation of the statutory federal income tax rate (benefit) to the Company’s effective tax rate (benefit) is as follows:

	June 30, 2022			June 30, 2021
Statutory Federal income tax rate		21.0	%		21.0	%
Change in fair value of warrant liabilities		(24.7	)%		29.5	%
Financing costs - derivative warrant liabilities		0.0	%		(20.5	)%
Change in Valuation Allowance		3.7	%		(30.0	)%
Income Taxes Benefit		0.0	%		0.0	%