Income Taxes

4 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 10. INCOME TAXES

The Company’s net deferred tax assets at December 31, 2020 is as follows:

	December 31, 2020
Deferred tax assets
Net operating loss carryforward	$	17,133
Unrealized gain on marketable securities		(1,968	)
Total deferred tax assets		15,165
Change in valuation allowance		(15,165	)
Deferred tax assets, net of allowance	$	—

The income tax provision for the period from August 24, 2020 (inception) through December 31, 2020 consists of the following:

	December 31, 2020
Federal
Current	$	—
Deferred		(15,165	)
State and Local
Current		—
Deferred		—
Change in valuation allowance		15,165
Income tax provision	$	—

As of December 31, 2020, the Company had approximately $17,100 of U.S. federal net operating loss carryovers available to offset future taxable income. These net operating loss carryovers do not expire and may offset up to 80% of taxable income in any given year.

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 period from August 24, 2020 (inception) through December 31, 2020, the change in the valuation allowance was $15,165.

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

	12/31/2020
Statutory federal income tax rate		21.0	%
State taxes, net of federal tax benefit		0.0	%
Change in fair value of warrant liability		-17.0	%
Transaction Cost allocated to warrant liability		-2.1	%
Fair value of warrant liability in excess of proceeds from Private Placement		-1.8	%
Valuation allowance		-0.1	%
Income tax provision expense (benefit)		0.0	%

The Company files income tax returns in the U.S. federal jurisdiction and is subject to examination by the various taxing authorities. The Company’s tax returns since inception remain open to examination by the taxing authorities.