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Franchise and Federal Income Tax Withdrawal
12 Months Ended
Dec. 31, 2023
Franchise and Federal Income Tax Withdrawal [Abstract]  
FRANCHISE AND FEDERAL INCOME TAX WITHDRAWAL

NOTE 10. FRANCHISE AND FEDERAL INCOME TAX WITHDRAWAL 

 

Since the completion of its IPO on May 9, 2022, and through December 31, 2023, the Company withdrew $1,784,960 (“Withdrawn Trust Funds”) from the Trust Account to pay liabilities related to the federal income and Delaware franchise taxes. Through December 31, 2023, the Company remitted $1,512,186 to the respective tax authorities, which resulted in remaining excess funds withdrawn from the Trust Account but not remitted to the government authorities of $272,773. As a result, the Withdrawn Trust Funds were held in the Company’s operating account to be used for general operating expenses. Subsequent to December 31, 2023, the Company mistakenly used $255,821 of the Withdrawn Trust Funds for payment of general operating expenses and payables as of December 31, 2023. Management has determined that this use of the Withdrawn Trust Funds was not in accordance with the Trust Agreement.

 

On March 28, 2024, the Sponsor advanced to the Company $460,000, which made the Withdrawn Trust Funds whole. The Company made estimated payments on its Delaware franchise tax obligations for the year ended December 31, 2023 of $91,660 on April 3, 2024. Additionally, the Company made an estimated payment on its federal income tax obligations for the year ended December 31, 2023 of $350,000 on April 18, 2024. The advance from Sponsor replenished the Company’s operating account for the Withdrawn Trust Funds inadvertently used for operating expenses. The Company has established a restricted bank account to be used to temporarily hold future withdrawals from the Trust Account, if any, for Delaware franchise tax and federal income tax obligations.