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INCOME TAX
 12 Months Ended
Dec. 31, 2021
Globis Acquisition Corp [Member]  
Restructuring Cost and Reserve [Line Items]  
INCOME TAX

NOTE 8. INCOME TAX

 

The Company’s net deferred tax assets are as follows:

 SCHEDULE OF DEFERRED TAX ASSETS

   December 31,   December 31, 
   2021   2020 
Deferred tax assets          
Net operating loss carryforward  $43,241   $2,586 
Startup and organizational costs   508,491    16,290 
Total deferred tax assets   551,740    18,876 
Valuation allowance   (551,740)   (18,876)
Deferred tax assets, net valuation allowance  $—   $— 

 

The income tax provision consists of the following:

 SCHEDULE OF INCOME TAX PROVISION

   December 31,   December 31, 
   2021   2020 
Federal          
Current  $—   $— 
Deferred   (532,864)   (18,876)
           
State and Local          
Current  $—   $— 
Deferred   —    — 
           
Change in valuation allowance   532,864    18,876 
Income tax provision  $—   $— 

 

 

As of December 31, 2021, the Company had $205,946 of U.S. federal net operating loss carryovers available to offset future taxable income. Federal net operating loss can be carried forward indefinitely.

 

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, 2021 and for the period from August 21, 2020 (inception) through December 31, 2020, the change in the valuation allowance was $532,864 and $18,876, respectively.

 

A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows:

 

   December 31, 2021   December 31, 2020 
         
Statutory federal income tax rate   21.0%   21.0%
State taxes, net of federal tax benefit   0.0%   0.0%
Business combination expense   (1.0)%   0.0%
Change in valuation allowance   (21.0)%   (21.0)%
Income tax provision   0.0%   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 since inception remain open to examination by the taxing authorities. The Company considers New York to be a significant state tax jurisdiction.