NOTE 8. INCOME TAX

The provision for income taxes was deemed to be immaterial for the period from November 1, 2017 (inception) through June 30, 2018. The Company did not have any significant deferred tax assets or liabilities at June 30, 2018.

The Company's net deferred tax asset at June 30, 2019 is as follows:

The income tax provision for the year ended June 30, 2019 consists of the following:

As of June 30, 2019, the Company did not have any U.S. federal and state net operating loss carryovers ("NOLs").

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.

A reconciliation of the federal income tax rate to the Company's effective tax rate at June 30, 2019 is as follows:

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. The Company's tax returns since inception remain open and subject to examination. The Company considers New York to be a significant state tax jurisdiction.