Income Taxes

5 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Note 10—Income Taxes

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

	December 31, 2020
Current
Federal	$	(7,666	)
State		-
Deferred
Federal		(30,632	)
State		-
Valuation allowance		38,298
Income tax provision	$	-

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

	December 31, 2020
Deferred tax assets:
Start-up/Organization costs	$	30,632
Net operating loss carryforwards		7,666
Total deferred tax assets		38,298
Valuation allowance		(38,298	)
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. For the period from July 20, 2020 (date of inception) to December 31, 2020, the valuation allowance was approximately $39,000.

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

	December 31, 2020
Statutory Federal income tax rate		21.0	%
Change in fair value of derivative warrant liabilities		(18.9	)%
Financing costs		(1.9	)
Change in Valuation Allowance		(0.2	)%
Effective Tax Rate		0.0	%