Annual report pursuant to Section 13 and 15(d)

Income Taxes

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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Taxes [Abstract]  
Income Taxes

Note 10 - Income Taxes

 

The Company’s taxable income primarily consists of interest income on the Trust Account. The Company’s general and administrative expenses are generally considered start-up costs and are not currently deductible.

 

The income tax provision (benefit) consists of the following:

 

   

Year Ended

December 31,
2023

    

Year Ended

December 31,
2022

  
Current            
Federal   $ 1,181,348     $ 884,112  
State    
-
      
-
  
Deferred                
Federal     (209,820 )     (193,896 )
State    
-
      
-
  
Valuation allowance     209,820       168,508  
Income tax provision   $ 1,181,348     $ 858,724  

 

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

 

    December 31,  
    2023     2022  
Deferred tax assets:            
Start-up/Organization costs   $ 209,896     $ 215,796  
Net operating loss carryforwards    
-
      
-
  
Total deferred tax assets     209,896       215,796  
Valuation allowance     (209,896 )     (215,796 )
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, 2023 and 2022. No amounts were accrued for the payment of interest and penalties at December 31, 2023 and 2022. 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 years ended December 31, 2023 and 2022:

 

   

Year Ended

December 31,
2023		    

Year Ended

December 31,
2022		  
Statutory federal income tax rate     21.0 %     21.0 %
Change in fair value of derivative warrant liabilities     0.6 %     0.0 %
Change in valuation allowance     4.6 %     5.1 %
Income tax expenses     26.2 %     26.1 %