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TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
TAXES

NOTE 9 — TAXES

 

The expected tax expense based on the statutory rate is reconciled with actual tax expense as follows:

   For the Year Ended 
   December 31, 
   2022 
U.S. federal statutory rate   21.0%
State taxes, net of federal benefit   0.1%
Change in valuation allowance   27.36%
Income tax provision   48.46%

 

The effective tax rate differs from the statutory tax rate of 21% for the year ended December 31, 2021, due to the valuation allowance recorded on the Company’s net operating losses. The Company files income tax returns in the U.S. federal jurisdiction and is subject to examination by the various taxing authorities. The Company’s tax returns since inception remain open to examination by the taxing authorities. The Company considers California to be a significant state tax jurisdiction.

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities and the change in valuation are as follows at December 31:

 

   2022 
Deferred tax assets:     
Startup costs   211,627 
Total deferred tax assets   211,627
      
Valuation Allowance   (211,627)
      
Net deferred tax asset  $— 

 

 SCHEDULE OF CHANGE IN VALUATION

   2022 
     
Federal 
Current  $374,862
Deferred   (211,627)
State and Local    
Current   - 
Deferred   -
Change in valuation  211,627
Income Tax Provision  $374,862

 

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 independent 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 31,2021, the change in the valuation allowance was zero.