v3.24.1
TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
TAXES
NOTE 8. TAXES
 
The Company’s net deferred tax assets are as follows:
 

  
December 31,
2023
    
December 31,
2022
  
Deferred tax assets:  
   
 

           
Net operating losses   $ —     $ —  
Legal settlement     4,562,100       —  
Start-up costs     8,716,458       5,190,046  
Total deferred tax assets     13,278,558       5,190,046  
Valuation Allowance     (13,278,558 )     (5,190,046 )
Deferred tax asset, net of allowance   $ —     $ —  

Below is breakdown of the income tax provision.
 

  
For the Year Ended
December 31, 2023
    
For the Year Ended
December 31, 2022
  
Federal  
   
 

           
Current   $ (3,742,611 )   $ (3,078,967 )
Deferred     —       —  
State and local Current     (796,963 )     (637,053 )
Deferred     —       —  
Change in valuation allowance     8,088,176       4,695,494  
Income tax provision   $ 3,548,602     $ 979,475  

As of December 31, 2023 and 2022, the Company had $0 of U.S. federal and state operating loss carryovers.

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, 2023 and 2022, the change in the valuation allowance was $8,088,176 and $4,695,494, respectively.

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

  
For the Year Ended
December 31, 2023
    
For the Year Ended
December 31, 2022
  

           
Federal income taxes at 21.00%     21.00 %     21.00 %
State tax, net of Federal benefit     4.35 %     4.35 %
Change in valuation allowance     (44.10 )%     (32.03 )%
Other     (0.60 )%     — %
Provision for income tax     (19.35 )%     (6.68 )%

The effective tax rate differs from the statutory tax rate of 21% for the year ended December 31, 2023 and 2022, due to the change in the valuation allowance. 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. The Company considers Florida to be a significant state tax jurisdiction.