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Income Tax
 9 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Tax
NOTE 9 — INCOME TAX
The Company’s net deferred tax assets at March 31, 2021 is as follows:
 
Deferred tax assets (liability)
     
Net operating loss carryforward
  $23,974 
Unrealized gain on marketable securities
   (2,582) 
Start-up
Costs
   306,668 
   
 
 
 
Total net deferred tax assets
   328,060 
Valuation Allowance
   (328,060) 
   
 
 
 
Net Deferred tax assets
  $—   
   
 
 
 
 
 
 
The income tax provision for the period from July 7, 2020 (inception) through March 31, 2021 consists of the following:
 
Federal
     
Current
  $—   
Deferred
   (328,060) 
State and Local
     
Current
   —   
Deferred
   —   
Change in valuation allowance
   328,060 
   
 
 
 
Income tax provision
  $—   
   
 
 
 
As of December 31, 2020, the Company had $23,974 of U.S. federal 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 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 period from July 
8
, 2020 (inception) through March 31, 2021, the change in the valuation allowance was $328,060.
A reconciliation of the federal income tax rate to the Company’s effective tax rate at March 31, 2021 is as follows:
 
Statutory federal income tax rate
   21.0% 
Change in fair value of warrants
   (19.5)% 
Transaction costs incurred in connection with warrant liabilities
   (0.4)% 
Valuation allowance
   (1.1)% 
   
 
 
 
Income tax provision
   —  % 
   
 
 
 
The Company files income tax returns in the U.S. federal jurisdiction and in various state and local jurisdictions and is subject to examination by the various taxing authorities. The Company’s tax return for the year ended December 31, 2020 remains open and subject to examination.