Annual report pursuant to Section 13 and 15(d)

INCOME TAX

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

NOTE 8 —INCOME TAX

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

 

 

 

 

 

 

 

 

    

December 31, 

    

December 31, 

 

 

2020

 

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

 

 

 

Valuation allowance

 

(21.0)

 

(21.0)

 

Income tax provision

 

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..