INCOME TAXES

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 8. INCOME TAXES

The Company’s effective tax rate for the three months ended March 31, 2023 and for the period from March 11, 2022 (inception) through March 31, 2022 was 30% and 0%, respectively. The Company’s effective tax rate differs from the statutory income tax rate of 21% primarily due to the Company recording a full valuation allowance on deferred tax assets. The Company has historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year to income or loss for the reporting period. The Company has used a discrete effective tax rate method to calculate taxes for the three months ended March 31, 2023 and for the period from March 11, 2022 (inception) through March 31, 2022. The Company believes that, at this time, the use of the discrete method for the three months ended March 31, 2023 and for the period from March 11, 2022 (inception) through March 31, 2022 is more appropriate than the estimated annual effective tax rate method as the estimated annual effective tax rate method is not reliable due to a high degree of uncertainty in estimating annual pretax earnings.