v3.24.2.u1
INCOME TAX
 12 Months Ended
Dec. 31, 2023
INCOME TAX  
INCOME TAX

NOTE 9. INCOME TAX

The Company’s net deferred tax assets (liability) at December 31, 2023 and 2022 are as follows:

​

​

​

​

​

​

​

​

​

    

December 31,

    

December 31,

​

​

2023

​

2022

Deferred tax assets (liability)

 

​

  

 

​

  

Net operating loss carryforward

​

$

—

​

$

—

Unrealized gain on marketable securities

​

 

—

​

 

—

Business combination expenses

​

 

437,530

​

 

427,319

Start up costs

​

 

974,835

​

 

745,713

Total deferred tax assets (liability)

​

 

1,412,365

​

 

1,173,032

Valuation Allowance

​

 

(1,412,365)

​

 

(1,173,032)

Deferred tax assets (liability), net of allowance

​

$

—

​

$

—

​

The income tax (benefit) provision for the year ended December 31, 2023 and 2022 consists of the following:

​

​

​

​

​

​

​

​

​

    

December 31,

    

December 31,

​

​

2023

​

2022

Federal

 

​

  

 

​

  

Current

​

$

726,038

​

$

536,853

Deferred

​

 

(239,332)

​

 

(575,221)

​

​

​

​

​

​

​

State and Local

​

 

  

​

 

  

Current

​

 

—

​

 

—

Deferred

​

 

—

​

 

—

​

​

​

​

​

​

​

Change in valuation allowance

​

 

239,332

​

 

575,221

Income tax provision

​

$

726,038

​

$

536,853

​

As of December 31, 2023 and 2022, the Company has a total of $0 and $0, respectively, of U.S. federal net operating loss carryovers available to offset future taxable income. The federal net operating loss can be carried forward indefinitely. As of December 31, 2023 and 2022, the Company had did not have any 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 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, the change in the valuation allowance was $239,332. For the year ended December 31, 2022, the change in the valuation allowance was $575,221.

A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2023 and 2022 is as follows, as restated:

​

​

​

​

​

​

​

​

    

December 31,

    

December 31,

 

​

​

2023

​

2022

 

​

​

​

​

​

​

Statutory federal income tax rate

 

21.0

%  

21.0

%

Business combination expenses

 

15.27

%  

(0.51)

%

Change in fair value of warrant liability

 

1.70

%  

(12.61)

%

Change in fair value of PIPE derivative liability

 

(6.07)

%  

(8.28)

%

Transaction costs - warrants

 

0.0

%  

0.0

%

Penalties & Interest

 

0.08

%  

0.07

%

Valuation allowance

 

15.73

%  

4.97

%

Income tax provision

 

47.71

%  

4.64

%

​

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, 2023 and 2022 remain open and subject to examination.