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Income Taxes
 8 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10 — Income Taxes

 

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

 

       
   

For the
Period from
May 1, 2023
(inception) through

December 31,

2023

  
Deferred tax asset        
Net operating loss carryforward   $ -  
Startup/Organization Expenses     34,389  
Total deferred tax asset     34,389  
Valuation allowance     (34,389 )
Deferred tax asset, net of allowance   $ -  

 

The income tax provision consists of the following:

 

       
   

For the
Period from
May 1, 2023
(inception) through

December 31,

2023

  
Federal        
Current   $ 170,649  
Deferred     (34,389 )
State        
Current   $ -  
Deferred     -  
Change in valuation allowance     34,389  
Income tax provision   $ 170,649  

 

A reconciliation of the Company’s statutory income tax rate to the Company’s effective income tax rate is as follows (in thousands):

 

       
   

For the
Period from
May 1, 2023
(inception) through

December 31,

2023

  
Income at U.S. statutory rate     21.00 %
State taxes, net of federal benefit     0.00 %
Valuation allowance     5.30 %
      26.30 %

 

As of December 31, 2023, the Company did not have any U.S. federal and 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. The change in the valuation allowance was $34,389 for the period from May 1, 2023 (inception) through December 31, 2023.

 

The provision for U.S. federal income tax was $170,649 for the period from May 1, 2023 (inception) through December 31, 2023. The Company’s tax return for the period from May 1, 2023 (inception) through December 31, 2023 remains open and subject to examination.