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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 as of December 31, 2022 and 2021:

 

   December 31,   December 31, 
   2022   2021 
Deferred tax asset          
Organizational costs/Start-up costs  $350,184   $10,144 
Federal net operating loss   
—
    10,853 
Total deferred tax asset   350,184    20,997 
Valuation allowance   (350,184)   (20,997)
Deferred tax asset, net of allowance  $
—
   $
—
 

 

The income tax provision for the year ended December 31, 2022 and for the period from February 19, 2021 (inception) through December 31, 2021 consists of the following:

 

   For the
Year Ended
December 31,
2022		   For the
Period from
February 19,
2021
(Inception)
through
December 31,
2021		 
Federal        
Current  $726,410   $
—
 
Deferred   329,186    20,997 
State          
Current   
—
    
—
 
Deferred   
—
    
—
 
Change in valuation allowance   (329,186)   (20,997)
Income tax provision  $726,410   $
—
 

 

As of December 31, 2022 and 2021, the Company had a total of $0 and $51,683, respectively, of U.S. federal net operating loss carryovers available to offset future taxable income. The federal net operating loss can be carried forward indefinitely. As of December 31, 2022 and 2021, the Company did not have any state net operating loss carryovers available to offset future taxable income.

 

In assessing the realization of the 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 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 $329,186. For the period from February 19, 2021 (inception) through December 31, 2021, the change in the valuation allowance was $20,997.

 

A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2022 and 2021 is as follows:

 

   December 31,   December 31, 
   2022   2021 
Statutory federal income tax rate   21.00%   21.00%
Change in valuation allowance   17.90%   (21.00)%
Income tax provision   38.90%   
—
 

 

The Company files income tax returns in the U.S. federal jurisdiction and in various state and local jurisdictions and has been subject to examination by the various taxing authorities since inception.