v3.22.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes
NOTE 10 - Income Taxes
The Company does not currently have taxable income but will generate taxable income in the future primarily consisting of interest income earned on the Trust Account. The Company’s general and administrative costs are generally considered
start-up
costs and are not currently deductible.
The income tax provision (benefit) consists of the following for year ended December 31, 2021 and for the period from June 22, 2020 (inception) through December 31, 2020:
 
    
For the Year Ended
December 31, 2021
     
For the Period from June

22, 2020 (Inception)
through December 31,
2020
  
 
 
Current
                  
Federal
    $ (24,709 )     $ (19,444 ) 
State
      —          —    
Deferred
                  
Federal
      (462,887 )       (53,126 ) 
State
      —          —    
Valuation allowance
      487,596        72,570  
    
 
 
     
 
 
  
Income tax provision
    $ —        $ —    
    
 
 
     
 
 
  
 
The Company’s net deferred tax assets are as follows as of December 31, 2021 and 2020:
 
    
As of December 31,
  
    
2021
     
2020
  
Deferred tax assets:
                  
Start-up/Organization
costs
    $ 516,013      $ 53,126  
Net operating loss carryforwards
      44,153        19,444  
    
 
 
     
 
 
  
Total deferred tax assets
      560,166        72,570  
Valuation allowance
      (560,166 )       (72,570 ) 
    
 
 
     
 
 
  
Deferred tax asset, net of allowance
    $ —        $ —    
    
 
 
     
 
 
  
In assessing the realization of 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 assets, 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.
There were no unrecognized tax benefits as of December 31, 2021 and 2020. No amounts were accrued for the payment of interest and penalties as of December 31, 2021 and 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.
A reconciliation of the statutory federal income tax rate (benefit) to the Company’s effective tax rate (benefit) is as follows:
 
    
For the Year Ended
December 31, 2021
    
For the Period
from June 22, 2020
(Inception) through
December 31, 2020
  
Statutory federal income tax rate
      21.0 %      21.0 % 
Change in fair value of derivative warrant liabilities
      (54.1 )%      (25.8 )% 
Offering costs associated with derivative warrant liabilities
      0.0 %      1.7 % 
Change in valuation allowance
      33.1 %      3.1 % 
    
 
 
    
 
 
  
Income tax expenses (benefit)
      0.0 %      0.0 %