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Income taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income taxes
Note 18 - Income taxes
Income tax expense for the years ended December 31, 2024 and 2023 comprises the following current and deferred amounts:
20242023
Current expense:
Federal$2,304,556 $4,457,712 
State819,835 1,117,221 
Total current expense3,124,391 5,574,933 
Deferred expense:
Federal(10,814,027)(2,041,270)
State(2,029,052)(576,647)
Total deferred benefit(12,843,079)(2,617,917)
Total income tax (benefit) expense$(9,718,688)$2,957,016 
The following table reconciles the statutory federal income tax rate to the effective income tax rate for the years ended December 31, 2024 and 2023:
20242023
$%$%
Income taxes at federal statutory rate$7,809,285 21.0 %$25,674,482 21.0 %
State income taxes, net of federal tax(1,381,381)(3.7)%305,959 0.3 %
Loss on extinguishment of Convertible Notes2,260,554 6.1 %— — %
Change in fair value of derivative liabilities(18,756,356)(50.4)%(24,301,964)(19.9)%
Non-deductible expenses349,210 0.9 %254,097 0.2 %
Change in tax status— — %1,024,442 0.8 %
Income tax (benefit) expense$(9,718,688)(26.1)%$2,957,016 2.4 %
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2024 and 2023:
20242023
Deferred tax assets:
§263A Uniform Capitalization Rules$318,129 $898,412 
Warranty reserve549,652 324,798 
Other accrued expenses and liabilities1,234,464 260,960 
Stock-based compensation2,831,845 1,643,593 
Interest expense10,568,630 407,725 
Operating lease liabilities738,112 1,388,547 
Start-up/organization costs1,474,570 1,582,745 
Other51,437 82,210 
Total deferred tax asset17,766,839 6,588,990 
Deferred tax liabilities:
§481(a) Unfavorable Adjustment(516,494)(650,714)
Inventories(751,309)(1,332,223)
Prepaid insurance(272,762)(352,030)
Property, plant and equipment, net(124,678)(202,969)
Operating right-of-use assets(693,355)(1,350,092)
Intangible Assets(84,926)(283,299)
Other(74,821)(12,246)
Total deferred tax liability(2,518,345)(4,183,573)
Net deferred tax asset$15,248,494 $2,405,417 
Management believes that the Company will have sufficient future taxable income to make it more likely than not that the net deferred tax assets will be realized. As of December 31, 2024 and 2023, the Company had no valuation allowance recorded against deferred tax assets and no uncertain tax positions that qualify for inclusion in the consolidated financial statements, and has not recognized or accrued for any interest or penalties. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. UHG is subject to U.S. federal income tax and various state income tax examinations for calendar tax years ending 2019 through 2024. Currently, the Company is not subject to any open audits.