Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.22.0.1
Income Taxes
 7 Months Ended
Dec. 31, 2021
Income Tax Disclosure [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. There was no income tax expense for the period from May 20, 2021 (inception) through December 31, 2021.

 

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

 

    December 31,
2021		  
Current      
Federal   $
-
  
State    
-
  
Deferred        
Federal     (21,830 )
State    
-
  
Change in valuation allowance     21,830  
Income tax provision expense   $
-
  

 

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

 

    December 31,
2021		  
Deferred tax assets:      
Start-up/Organization costs   $ 21,830  
Net operating loss carryforwards    
-
  
Total deferred tax assets     21,830  
Valuation allowance     (21,830 )
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. No amounts were accrued for the payment of interest and penalties at December 31, 2021. 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 period from May 20, 2021 (inception) through December 31, 2021:

 

Statutory federal income tax rate     21.0 %
State taxes, net of federal tax benefit     0.0 %
Meals & entertainment     0.0 %
Change in valuation allowance     (21.0 )%
Income Tax Benefit     0.0 %