General form of registration statement for all companies including face-amount certificate companies

INCOME TAX

v3.21.1
INCOME TAX
12 Months Ended
Dec. 31, 2020
Income Taxes  
INCOME TAX

NOTE 10. INCOME TAX

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

 

 

 

 

 

 

 

 

 

    

As of December 31,

 

    

2020

    

2019

Deferred tax asset

 

 

 

 

 

 

Organizational costs/Startup expenses

 

$

122,876

 

$

 —

Total deferred tax asset

 

 

122,876

 

 

 —

Valuation allowance

 

 

(122,876)

 

 

 —

Deferred tax asset, net of allowance

 

$

 —

 

$

 —

 

The income tax provision consists of the following:

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

    

2020

    

2019

 

 

 

 

 

 

 

Federal

 

 

 

 

 

 

Current

 

$

170,647

 

$

208,612

Deferred

 

 

(99,629)

 

 

 

 

 

 

 

 

 

State and Local

 

 

 

 

 

 

Current

 

 

39,818

 

 

Deferred

 

 

(23,247)

 

 

 

 

 

 

 

 

 

Change in valuation allowance

 

 

122,876

 

 

 

 

 

 

 

 

 

Income tax provision

 

$

210,465

 

$

208,612

 

As of December 31, 2020 and 2019, the Company did not have any of 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 available information, 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, 2020 and for the period from May 24, 2019 (inception) through December 31, 2019, the change in the valuation allowance was $122,876 and $0, respectively.

A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows:

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

    

2020

    

2019

 

 

 

 

 

 

 

Statutory federal income tax rate

 

21.0

%

21.0

%

State taxes, net of federal tax benefit

 

4.9

%

0.0

%

Transaction costs allocable to warrant liabilities

 

0.0

%

5.3

%

Change in FV of warrant liabilities

 

(26.3)

%

(18.1)

%

Valuation allowance

 

(0.6)

%

0.0

%

Income tax provision

 

(1.0)

%

21.0

%

 

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 for the year ended December 31, 2020 and 2019 remain open and subject to examination.