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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Taxes [Abstract]  
INCOME TAXES

NOTE 9. INCOME TAXES

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

 

December 31,
   

2023

  

2022

Deferred tax asset

  

 

  

 

  

 

  

 

Organizational costs/Start-up costs

  

$

1,253,839

 

  

$

350,184

 

Federal net operating loss

  

 

—

 

  

 

—

 

Total deferred tax asset

  

 

1,253,839

 

  

 

350,184

 

Valuation allowance

  

 

(1,253,839

)

  

 

(350,184

)

Deferred tax asset, net of allowance

  

$

—

 

  

$

—

 

The income tax provision for the years ended December 31, 2023 and 2022 consists of the following:

 

December 31,
   

2023

  

2022

Federal

  

 

  

 

  

 

  

 

Current

  

$

2,325,087

 

  

$

726,410

 

Deferred

  

 

(903,665

)

  

 

(329,186

)

State

  

 

  

 

  

 

  

 

Current

  

$

—

 

  

$

—

 

Deferred

  

 

—

 

  

 

—

 

Change in valuation allowance

  

 

903,665

 

  

 

329,186

 

Income tax provision

  

$

2,325,087

 

  

$

726,410

 

As of December 31, 2023 and 2022, the Company had a total of $0 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, 2023 and 2022, 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, 2023, the change in the valuation allowance was $903,665. For the year ended December 31, 2022, the change in the valuation allowance was $329,186.

A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2023 and 2022 is as follows:

 

December 31,
   

2023

  

2022

Statutory federal income tax rate

  

21.00

%

  

21.00

%

Change in valuation allowance

  

13.35

%

  

17.90

%

Income tax provision

  

34.35

%

  

38.90

%

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