v3.25.1
Income Tax
 3 Months Ended
Mar. 31, 2025
Income Tax [Abstract]  
INCOME TAX

NOTE 9 – INCOME TAX

 

As of March 31, 2025 and December 31, 2024, the Company’s net deferred tax assets are as follows:

 

   March 31,
2025		   December 31,
2024		 
Deferred tax asset:        
Organizational costs/Startup expenses  $285,894   $285,200 
Net operating loss   
-
    
-
 
Total deferred tax asset   285,894    285,200 
Valuation allowance   (285,894)   (285,200)
Deferred tax asset, net of allowance  $
-
   $
-
 

The income tax provision for the three months ended March 31, 2025 and 2024, consists of the following:

 

   2025   2024 
Federal        
Current  $
—
   $38,103 
Deferred   (694)   (3,214)
           
State and Local          
Current   
—
    
—
 
Deferred   
—
    
—
 
           
Change in valuation allowance   694    3,214 
           
Income tax provision  $
—
   $38,103 

 

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 amount 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. For the three months ended March 31, 2025 and 2024, the change in valuation allowance was $694 and $3,214, respectively.

 

A reconciliation of the federal income tax rate to the Company’s effective tax rate at March 31, 2025 and December 31, 2024, consists of the following:

 

   March 31,
2025		   December 31,
2024		 
Statutory federal income tax rate   21.0%   21.0%
Change in valuation allowance   (0.54)%   1.3%
Adjustment to prior year taxes   
-
%   (11.4)%
Effective Tax Rate   20.46%   10.9%

The effective tax rate differs from the statutory tax rate of 21% for the three months ended March 31, 2025 and 2024, primarily due to the change in prior year taxes and valuation allowance on the deferred tax assets.

 

As of March 31, 2025 and December 31, 2024, the Company did not have any of U.S. federal and state net operating loss carryovers available to offset future taxable income.