INCOME TAXES

10 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 9 – INCOME TAXES

The provision for income taxes consisted of the following at December 31, 2021:

Federal:
Current	$	-
Deferred		(66,144	)
State
Current		-
Deferred		(19,906	)
		(86,050	)
Change in valuation allowance		86,050
Income tax provision	$	-

A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2021 is as follows:

Statutory federal income tax rate	21.0	%
State taxes, net of federal tax benefit	6.3	%
Change in valuation allowance	(27.3	)%
Income tax provision	—	%

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2021 is as follows:

Deferred tax assets:
Net operating losses	$	16,507
Organizational costs/Startup expenses		69,543
Total deferred tax asset		86,050
Valuation allowance		(86,050	)
Deferred tax asset, net of allowance	$	-

The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The Company assessed the need for a valuation allowance of $86,050 was required as of December 31, 2021, as the Company has no history of generating taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

As of December 31, 2021, the Company has $60,424 of U.S. federal net operating loss carryovers, which do not expire, and state net operating loss carryovers of $60,424 which expire in 2041.

The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax positions through its income tax expense.

The Company files income tax returns in the U.S. and Massachusetts jurisdictions and is subject to examination by the various taxing authorities since inception.