Income Taxes

5 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 10. INCOME TAXES

The income tax provision (benefit) for the year ended December 31, 2020 consists of the following:

Current
Federal	$	(12,204	)
State		—
Deferred
Federal		(19,009	)
State		—
Change in valuation allowance		31,213
Income tax provision (benefit)	$	—

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

Deferred tax asset
Net operating loss carryforward	$	12,204
Startup/organizational costs		19,009
Total deferred tax assets		31,213
Valuation allowance		(31,213	)
Deferred tax assets, 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 as of December 31, 2020.

A reconciliation of the statutory income tax rate to the Company’s effective tax rate for the period from August 11, 2020 (inception) to December 31, 2020 is as follows:

Tax benefit at statutory federal income tax rate	(21.0	%)
Permanent book/tax difference	20.3	%
Valuation allowance	0.7	%
Income tax provision (benefit)	0.0	%