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Income Tax
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAX

NOTE 9. INCOME TAX

 

The Company's net deferred tax asset at December 31, 2020 and 2019 as follows:

 

   December 31,   December 31, 
   2020   2019 
Deferred tax asset        
Net operating loss carryforward  $—   $210 
Total deferred tax assets   —    210 
Valuation Allowance   —   (210)
Deferred tax asset  $—   $— 

 

The income tax provision for the year ended December 31, 2020 and for the period from August 16, 2019 (inception) through December 31, 2019 consists of the following:

 

   December 31,   December 31, 
   2020   2019 
Federal        
Current  $199,765   $— 
Deferred   210    (210)
           
State and Local          
Current   —    — 
Deferred   —    — 
           
Change in valuation allowance   (210)   210 
           
Income tax provision  $199,765   $— 

 

As of December 31, 2020 and 2019, the Company had $0 and $1,000 of U.S. federal and state net operating loss carryovers available to offset future taxable income, respectively.

 

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, 2020, the valuation allowance decreased by $210. For the period from August 16, 2019 (inception) through December 31, 2019, the change in the valuation allowance increased by $210.

 

A reconciliation of the federal income tax rate to the Company's effective tax rate at December 31, 2020 and 2019 is as follows:

 

   December 31,
2020		   December 31,
2019		 
         
Statutory federal income tax rate   21.0%   21.0%
Business combination expenses   (48.3)%   0.0%
Valuation allowance   0.1%   (21.0)%
Income tax provision   (27.2)%   0.0%

 

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 for since inception remain open and subject to examination by the taxing authorities. The Company considers New York to be a significant state tax jurisdiction.