v3.26.3
Income Tax
 9 Months Ended
Sep. 30, 2026
Income Tax [Abstract]  
INCOME TAX

NOTE 6. INCOME TAX

 

The Company’s net deferred tax assets at September 30, 2026 and December 31, 2025, are as follows: 

 

Deferred tax assets   September 30,
2026		     December 31,
2025		  
Organizational costs/start-up expenses   $ 508,833     $ 478,192  
Federal net operating loss     —       —  
Total deferred tax assets     508,833       478,192  
Valuation allowance     (508,833 )     (478,192 )
Deferred tax assets, net of allowance   $ —     $ —  

 

As of September 30, 2026 and December 31, 2025, the Company did not have any U.S. federal and state net operating loss carryovers (“NOLs”) 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 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 liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management determined that a full valuation allowance was required.

 

The income tax provision for the three and nine months ended September 30, 2026 and 2025, consists of the following:

 

    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2026     2025     2026     2025  
Federal                        
Current   $ 1,809     $ 2,150     $ 5,295     $ 6,210  
Deferred     (9,885 )     (9,524 )     (30,641 )     (29,667 )
State                                
Current     —       —       —       —  
Deferred     —       —       —       —  
Change in valuation allowance     9,885       9,524       30,641       29,667  
Income tax provision   $ 1,809     $ 2,150     $ 5,295     $ 6,210  

 

A reconciliation of the income tax rate to the Company’s effective tax rate for the nine months ended September 30, 2026 and 2025, is as follows:

 

    For the Nine Months Ended
September 30,		  
    2026     2025  
Statutory federal income tax rate     21.0 %     21.0 %
State taxes, net of federal tax benefit     0.0 %     0.0 %
Permanent book/tax differences     0.0 %     0.0 %
Change in valuation allowance     (25.4 )%     (26.6 )%
Effective income tax rate     (4.4 )%     (5.6 )%