Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

TAXES

NOTE 9. TAXES

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			For the Year Ended December 31, 2021
U.S. federal statutory rate		21.0	%		0.0	%
Change in Fair Value of Warrants		(0.5	)%		0.0	%
Valuation allowance		24.0	%		0.0	%
Income tax provision		44.5	%		0.0	%

Below is breakdown of the income tax provision.

	For the Year Ended			For the Year Ended
	December 31, 2022			December 31, 2021
Federal
Current	$	135,321		$	—
Deferred		(73,052	)		—
State and local
Current		—			—
Deferred		—			—
Change in valuation allowance		73,052			—
Total tax provision	$	135,321		$	—

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 year ended December 31, 2022, the change in the valuation allowance was $73,052.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows at December 31:

	2022		2021
Deferred tax assets:
Start up costs	$	73,052	$	—
Total deferred tax assets		71,302		73,052
Valuation Allowance		(73,052)		—
Net deferred tax asset	$	—	$	—