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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
NOTE 9. INCOME TAXES
The Company’s net deferred tax assets are as follows:

 
 
  
December 31, 2022
 
  
December 31, 2021
 
Deferred tax assets:
                  
Start-up/Organization
costs
    $ 300,424      $ 2,113  
Net operating loss carryforwards
      —          190  
    
 
 
     
 
 
  
Total deferred tax assets
      300,424        2,303  
Valuation allowance
      (300,424 )       (2,303 ) 
    
 
 
     
 
 
  
Deferred tax asset, net of allowance
    $ —        $ —    
    
 
 
     
 
 
  
The income tax provision consists of the following:
 
 
  
December 31, 2022
 
  
December 31, 2021
 
Current
                  
Federal
      890,770      $ —    
State
      —          —    
Deferred
                  
Federal
      (298,121 )       (2,303 ) 
State
      —          —    
Valuation allowance
      298,121        2,303  
    
 
 
     
 
 
  
Income tax provision
    $ 890,770      $ —    
    
 
 
     
 
 
  
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or 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 assets, 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 and for the period from October 14, 2021 (inception) through December 31, 2021, the valuation allowance was approximately $300,000 and approximately $2,000, respectively.
A reconciliation of the statutory federal income tax rate (benefit) to the Company’s effective tax rate (benefit) is as follows:
 
 
  
December 31, 2022
 
 
December 31, 2021
 
Statutory federal income tax rate
      21.0 %      21.0 % 
Statutory state rate, net of federal benefit
      0.0 %      0.0 % 
Merger costs
      (91.6 )%      0.0 % 
Change in valuation allowance
      (35.6 )%      (21.0 )% 
    
 
 
    
 
 
  
Income Taxes Benefit
      -106.2 %      0.0 % 
    
 
 
    
 
 
  
 
 
There were no unrecognized tax benefits as of December 31, 2022 and 2021. No amounts were accrued for the payment of interest and penalties as of December 31, 2022 and 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.