Registration of securities issued in business combination transactions

INCOME TAX (FY)

v3.21.4
INCOME TAX (FY)
12 Months Ended
Dec. 31, 2020
INCOME TAX  
INCOME TAX
NOTE 10 — INCOME TAX


The Company’s net deferred tax assets (liability) at December 31, 2020 and 2019 are as follows:


    
December 31,
2020
   
December 31,
2019
 
Deferred tax assets (liability)
           
Net operating loss carryforward
 
$
306,991
   
$
210
 
Total deferred tax assets
   
306,991
     
210
 
Valuation Allowance
   
(306,991
)
   
(210
)
Deferred tax assets (liability)
 
$
   
$
 



The income tax provision for the year ended December 31, 2020 and for the period from December 23, 2019 (inception) through December 31, 2019 consists of the following:


    
December 31,
2020
   
December 31,
2019
 
Federal
           
Current
 
$
   
$
 
Deferred
   
(306,781
)
   
(210
)
                 
State and Local
               
Current
   
     
 
Deferred
   
     
 
                 
Change in valuation allowance
   
306,781
     
210
 
                 
Income tax provision
 
$
   
$
 



As of December 31, 2020 and 2019, the Company had $1,461,863 and $1,000 of U.S. federal and state net operating loss carryovers available to offset future taxable income, respectively.



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 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, 2020, the change in the valuation allowance was $306,781. For the period from December 23, 2019 (inception) through December 31, 2019, the change in the valuation allowance was $210.



A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2020 and 2019 is as follows:


   
December 31,
2020
   
December 31,
2019
 
Statutory federal income tax rate
   
21.0
%
   
21.0%
 
State taxes, net of federal tax benefit
   
     
 
Change in fair value of warrant liability
   
(6.1
)%
   
--
 
Valuation allowance
   
(14.9
)
   
(21.0
)
Income tax provision
   
0.0.0
 %    
0.0
 %



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 since inception remain open to examination by the taxing authorities.