Annual report pursuant to Section 13 and 15(d)

Income Tax

Income Tax
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Tax



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


    December 31, 2018     December 31,
Deferred tax asset            
Organizational costs/Startup expenses   $ 161,558     $ 53,651  
Total deferred tax assets     161,558       53,651  
Valuation allowance     (161,558 )     (53,651 )
Deferred tax asset, net of allowance   $     $  


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


    Year Ended December 31,
    Year Ended December 31,
Current   $ 413,191     $ 195,369  
Deferred     (107,907 )     (53,651 )
Change in valuation allowance     107,907       53,651  
Income tax provision   $ 413,191     $ 195,369  


As of December 31, 2018, the Company had no U.S. federal and state net operating loss carryovers (“NOLs”) available to offset future taxable income. In accordance with Section 382 of the Internal Revenue Code, deductibility of the Company’s NOLs may be subject to an annual limitation in the event of a change in control as defined under the regulations.


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 years ended December 31, 2018 and 2017, the change in the valuation allowance was $107,907 and $53,651, respectively.


A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2018 and 2017 is as follows:


    Year Ended December 31,  
    2018     2017  
Statutory federal income tax rate     21.0 %     34.0 %
State taxes, net of federal tax benefit     0.0 %     0.0 %
Deferred tax rate change     0.0 %     10.4 %
Change in valuation allowance     7.4 %     16.8 %
Income tax provision     28.4 %     61.2 %


On December 22, 2017, the Tax Cuts and Jobs Act was signed into legislation. As part of the legislation, the U.S. corporate income tax rate was reduced to 21%. The Company has a recorded full valuation allowance against its deferred tax assets.


The Company files income tax returns in the U.S. federal jurisdiction in various state and local jurisdictions and is subject to examination by the various taxing authorities.