Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.21.1
Income Taxes
6 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes
NOTE 7 – Income Taxes
The Company does not currently have taxable income but will generate taxable income in the future primarily consisting of interest income earned on the Trust Account. The Company’s general and administrative costs are generally considered
start-up
costs and are not currently deductible.
The income tax provision (benefit) consists of the following for the period from June 22, 2020 (inception) through December 31, 2020:
 
Current
        
Federal
   $ (19,444
State
      
Deferred
        
Federal
     (53,126
State
      
Change in valuation allowance
     72,570  
    
 
 
 
Income tax provision
   $  
    
 
 
 
The Company’s net deferred tax assets are as follows as of December 31, 2020:
 
Deferred tax assets:
        
Start-up/Organization
costs
   $ 53,126  
Net operating loss carryforwards
     19,444  
    
 
 
 
Total deferred tax assets
     72,570  
Valuation allowance
     (72,570
    
 
 
 
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, 2020. No amounts were accrued for the payment of interest and penalties at December 31, 2020. 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:
 
    
December 31,
2020
 
Statutory Federal income tax rate
     21.0
Change in Valuation Allowance
     (21.0 )% 
    
 
 
 
Income Taxes Benefit
     0.0