TAXES

12 Months Ended

Dec. 31, 2022

TAXES

TAXES

NOTE 11. TAXES

			For the period from
	For the year ended		January 11, 2021 (inception)
	December 31, 2022		through December 31, 2021
Deferred tax assets:		—		—
Start-up costs	$	180,281	$	—
Total deferred tax assets		180,281		—
Valuation Allowance		(180,281)		—
Deferred tax asset, net of allowance	$	—	$	—

			For the period from
	For the year ended		January 11, 2021 (inception)
	December 31, 2022		through December 31, 2021
Federal		—		—
Current	$	303,890	$	—
Deferred		(180,281)		—
State and local		—		—
Current		—		—
Deferred		—		—
Change in valuation allowance		180,281		—
Income tax provision	$	303,890	$	—

As of December 31, 2022, the Company had no U.S. federal operating loss carryovers.

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 ended December 31, 2022, the change in the valuation allowance was $180,281.

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

	For the Year
	Ended
	December 31,
	2022
U.S. federal statutory rate	21.0	%
Valuation allowance	30.6	%
Income tax provision	51.6	%

The effective tax rate differs from the statutory tax rate of 21% for the year ended December 31, 2022, due to the valuation allowance recorded on the Company’s organizational costs. 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.