Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.21.1
Income Taxes
5 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8 — Income Taxes


The Company’s taxable income primarily consists of interest income on the Trust Account, less any franchise taxes. The Company’s formation and operating costs are generally considered start-up costs and are not currently deductible.


The income tax provision (benefit) consists of the following:


    December 31, 2020  
Current      
Federal   $ -  
State     -  
Deferred
Federal     (27,274 )
State     -  
Valuation allowance     27,274  
Income tax provision   $ -  

The Company’s net deferred tax assets are as follows:


    December 31, 2020  
Deferred tax assets:      
Net operating loss carryover   $ 15,315  
Start-up/Organization costs     11,959  
Total deferred tax assets     27,274  
Valuation allowance     (27,274 )
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.


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


    December 31, 2020  
Statutory Federal income tax rate   $ 21.0 %
Change in Valuation Allowance     (21.0 )%
Income Taxes Benefit     0.0 %

There were no unrecognized tax benefits as of December 31, 2020. No amounts were accrued for the payment of interest and penalties as of 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. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.