XML 28 R17.htm IDEA: XBRL DOCUMENT v3.24.1
Income taxes
 12 Months Ended
Dec. 31, 2023
Income Taxes [Abstract]  
INCOME TAXES

NOTE 8. INCOME TAXES

 

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

 

   December 31,   December 31, 
   2023   2022 
Deferred tax assets        
Net operating loss carryforward  $
—
   $272 
Startup Costs   106,912    4,778 
Total deferred tax assets   106,912    5,050 
Valuation allowance   (106,912)   (5,050)
Deferred tax assets, net of allowance  $
—
   $
—
 

 

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

 

   December 31,   December 31, 
   2023   2022 
Federal        
Current  $819,453   $
—
 
Deferred   (82,464)   (4,088)
State          
Current  $
—
   $
—
 
Deferred   (19,398)   (962)
Change in valuation allowance   101,862    5,050 
Income tax provision  $819,453   $
—
 

 

As of December 31, 2023 and 2022, the Company had a total of $0 and $1,050, 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, 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 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 years ended December 31, 2023 and 2022, the change in the valuation allowance were $101,862 and $5,050, respectively.

 

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

 

   December 31,   December 31, 
   2023   2022 
Statutory federal income tax rate   21.0%   21.0%
State taxes, net of federal tax benefit   4.9%   4.9%
Change in valuation allowance   3.7%   (25.9)%
Income tax provision   29.6%   0.0%

 

The Company’s effective tax rates for the periods presented differ from the expected (statutory) rates due to changes in fair value in warrants, transaction costs associated with warrants and the recording of full valuation allowances on deferred tax assets.

 

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.