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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q 
(Mark one)
☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024 or

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             
Commission File Number: 0-10235
GENTEX CORPORATION
(Exact name of registrant as specified in its charter)
Michigan
38-2030505
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
600 N. Centennial
Zeeland
Michigan49464
(Address of principal executive offices)
(Zip Code)
(616) 772-1800
(Registrant’s telephone number, including area code)
________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.06 per shareGNTXNASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes:  þ    No:  o 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes:  þ    No:  o 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☑
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes:  ☐  No:   þ
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes:  ☐ No:  o
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
Shares Outstanding, July 26, 2024
Common Stock, $.06 Par Value
230,217,225

1

GENTEX CORPORATION AND SUBSIDIARIES
For the Three and Six Months Ended June 30, 2024
FORM 10-Q
Index
Part I - Financial Information
Page
Item 1.
Item 2.
Item 3.
Item 4.
Part II - Other Information
Item 1A.
Item 2.
Item 6.


2

PART I —FINANCIAL INFORMATION
Item 1. Unaudited Condensed Consolidated Financial Statements.
GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of June 30, 2024 and December 31, 2023
June 30, 2024 (Unaudited)
December 31, 2023
(Note)
ASSETS
CURRENT ASSETS
Cash and cash equivalents$260,241,951 $226,435,019 
Short-term investments15,534,338 14,356,476 
Accounts receivable, net306,565,681 321,809,868 
Inventories, net
463,492,305 402,473,028 
Prepaid expenses and other38,049,578 32,663,762 
Total current assets1,083,883,853 997,738,153 
PLANT AND EQUIPMENT—NET679,486,957 652,877,672 
OTHER ASSETS
Goodwill340,105,631 340,105,631 
Long-term investments308,051,778 299,080,876 
Intangible assets, net205,790,910 214,005,910 
Deferred tax asset52,335,039 41,113,759 
Patents and other assets, net68,630,894 66,515,551 
Total other assets974,914,252 960,821,727 
Total assets$2,738,285,062 $2,611,437,552 
LIABILITIES AND SHAREHOLDERS’ INVESTMENT
CURRENT LIABILITIES
Accounts payable$206,001,837 $184,398,820 
Accrued liabilities98,726,663 87,210,156 
Total current liabilities304,728,500 271,608,976 
OTHER NON-CURRENT LIABILITIES33,257,035 27,311,507 
Total liabilities337,985,535 298,920,483 
SHAREHOLDERS’ INVESTMENT
Common stock13,813,772 13,887,326 
Additional paid-in capital1,000,014,813 968,245,875 
Retained earnings1,394,446,595 1,336,940,990 
Accumulated other comprehensive loss(7,975,653)(6,557,122)
Total shareholders’ investment2,400,299,527 2,312,517,069 
Total liabilities and shareholders’ investment$2,738,285,062 $2,611,437,552 

Note: The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
3

GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three and Six Months Ended June 30, 2024 and 2023
 
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
NET SALES
$572,925,778 $583,472,846 $1,163,150,989 $1,134,234,157 
COST OF GOODS SOLD
384,362,469 390,389,807 772,350,073 766,413,887 
Gross profit188,563,309 193,083,039 390,800,916 367,820,270 
OPERATING EXPENSES:
Engineering, research and development44,003,994 37,973,790 86,185,980 72,627,537 
Selling, general & administrative29,675,293 27,819,861 60,384,602 54,652,698 
Total operating expenses73,679,287 65,793,651 146,570,582 127,280,235 
Income from operations114,884,022 127,289,388 244,230,334 240,540,035 
OTHER (LOSS) INCOME
Investment (loss) income(12,393,771)2,890,934 (15,762,295)5,830,128 
Other income (loss), net(1,159,272)(1,576,538)510,867 (1,771,277)
Total other (loss) income(13,553,043)1,314,396 (15,251,428)4,058,851 
INCOME BEFORE PROVISION FOR INCOME TAXES101,330,979 128,603,784 228,978,906 244,598,886 
PROVISION FOR INCOME TAXES15,290,541 19,448,381 34,707,753 37,865,222 
NET INCOME$86,040,438 $109,155,403 $194,271,153 $206,733,664 
EARNINGS PER SHARE: (1)
Basic$0.37 $0.47 $0.84 $0.88 
Diluted$0.37 $0.47 $0.84 $0.88 
Cash Dividends Declared per Share$0.120 $0.120 $0.240 $0.240 
(1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards.

4

GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three and Six Months Ended June 30, 2024 and 2023
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Net income$86,040,438 $109,155,403 $194,271,153 $206,733,664 
Other comprehensive (loss) income before tax:
Foreign currency translation adjustments(509,541)(1,456,377)(1,459,754)(1,577,544)
Unrealized gains on debt securities, net
271 554,565 52,181 3,136,342 
Other comprehensive (loss) income, before tax(509,270)(901,812)(1,407,573)1,558,798 
Income tax impact related to components of other comprehensive (loss) income
57 116,459 10,958 658,632 
Other comprehensive (loss) income, net of tax(509,327)(1,018,271)(1,418,531)900,166 
Comprehensive income$85,531,111 $108,137,132 $192,852,622 $207,633,830 

5


GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT
For the Three Months Ended June 30, 2024 and 2023
Common 
Stock
Shares		Common 
Stock
Amount		Additional 
Paid-In
Capital		Retained 
Earnings		Accumulated 
Other
Comprehensive
Income (Loss)		Total 
Shareholders’
Investment
BALANCE AS OF APRIL 1, 2024231,198,885 $13,871,933 $991,053,652 $1,378,904,530 $(7,466,326)$2,376,363,789 
Issuance of common stock from stock plan transactions433,321 25,999 3,382,323 — — 3,408,322 
Repurchases of common stock(1,402,667)(84,160)(5,344,160)(42,871,254)— (48,299,574)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock— — 10,922,998 — — 10,922,998 
Dividends declared ($0.12 per share)
— — — (27,627,119)— (27,627,119)
Net income— — — 86,040,438 — 86,040,438 
Other comprehensive loss— — — — (509,327)(509,327)
BALANCE AS OF JUNE 30, 2024230,229,539 $13,813,772 $1,000,014,813 $1,394,446,595 $(7,975,653)$2,400,299,527 
BALANCE AS OF APRIL 1, 2023233,726,045 $14,023,563 $928,284,892 $1,193,171,690 $(12,224,497)$2,123,255,648 
Issuance of common stock from stock plan transactions624,323 37,459 7,889,328 — 7,926,787 
Repurchases of common stock(920,374)(55,223)(3,258,126)(21,790,142)— (25,103,491)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock— — 9,744,670 — — 9,744,670 
Dividends declared ($0.12 per share)
— — — (28,011,420)— (28,011,420)
Net income— — — 109,155,403 — 109,155,403 
Other comprehensive loss— — — — (1,018,271)(1,018,271)
BALANCE AS OF JUNE 30, 2023233,429,994 $14,005,799 $942,660,764 $1,252,525,531 $(13,242,768)$2,195,949,326 

6

GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT
For the Six Months Ended June 30, 2024 and 2023
Common 
Stock
Shares		Common 
Stock
Amount		Additional 
Paid-In
Capital		Retained 
Earnings		Accumulated 
Other
Comprehensive
Loss		Total 
Shareholders’
Investment
BALANCE AS OF JANUARY 1, 2024231,455,443 $13,887,326 $968,245,875 $1,336,940,990 $(6,557,122)$2,312,517,069 
Issuance of common stock from stock plan transactions1,377,666 82,660 20,159,649 — — 20,242,309 
Repurchases of common stock(2,603,570)(156,214)(9,787,501)(81,394,947)— (91,338,662)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock— — 21,396,790 — — 21,396,790 
Dividends declared ($0.24 per share)
— — — (55,370,601)— (55,370,601)
Net income— — — 194,271,153 — 194,271,153 
Other comprehensive loss
— — — — (1,418,531)(1,418,531)
BALANCE AS OF JUNE 30, 2024230,229,539 $13,813,772 $1,000,014,813 $1,394,446,595 $(7,975,653)$2,400,299,527 
BALANCE AS OF JANUARY 1, 2023234,169,335 $14,050,160 $917,499,323 $1,148,386,272 $(14,142,934)$2,065,792,821 
Issuance of common stock from stock plan transactions1,227,959 73,677 13,809,133 — — 13,882,810 
Issuance of common stock related to acquisitions— — — — — — 
Repurchases of common stock(1,967,300)(118,038)(6,911,897)(46,536,187)— (53,566,122)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock— — 18,264,205 — — 18,264,205 
Dividends declared ($0.24 per share)
— — — (56,058,218)— (56,058,218)
Net income— — — 206,733,664 — 206,733,664 
Other comprehensive income
— — — — 900,166 900,166 
BALANCE AS OF JUNE 30, 2023233,429,994 $14,005,799 $942,660,764 $1,252,525,531 $(13,242,768)$2,195,949,326 

7

GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2024 and 2023
20242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$194,271,153 $206,733,664 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization47,942,132 48,841,936 
(Gain) on disposal of assets(1,261,727)(214,593)
Loss on disposal of assets29,782 220,568 
(Gain) on sale of investments and technology investment income(4,708,185)(2,747,586)
Loss on sale of investments and technology investment losses29,061,771 4,201,138 
Deferred tax expense
(11,232,239)(5,122,661)
Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock21,396,790 18,264,205 
Change in operating assets and liabilities:
Accounts receivable, net15,244,187 (73,915,719)
Inventories(61,019,277)14,334,001 
Prepaid expenses and other(3,559,130)(2,722,437)
Accounts payable17,318,424 22,410,431 
Accrued liabilities, excluding dividends declared15,643,764 11,483,186 
Net cash provided by operating activities259,127,445 241,766,133 
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Activity in investments:
Sales proceeds19,649,880 21,523,990 
Maturities and calls6,260,000 11,650,000 
Purchases(60,360,047)(65,945,596)
Plant and equipment additions(63,634,852)(90,277,995)
Proceeds from sale of plant and equipment127,000 140,610 
Increase in other assets(4,120,881)(3,486,284)
Net cash used for investing activities(102,078,900)(126,395,275)
CASH FLOWS USED FOR FINANCING ACTIVITIES:
Issuance of common stock from stock plan transactions20,242,309 13,882,810 
Cash dividends paid(55,517,709)(56,146,939)
Repurchases of common stock(87,966,213)(54,195,766)
Net cash used for financing activities(123,241,613)(96,459,895)
NET INCREASE IN CASH AND CASH EQUIVALENTS33,806,932 18,910,963 
CASH, CASH EQUIVALENTS, and RESTRICTED CASH, beginning of period226,435,019 218,754,638 
CASH, CASH EQUIVALENTS, and RESTRICTED CASH, end of period$260,241,951 $237,665,601 

Six Months Ended June 30
SUPPLEMENTAL CASH FLOW DATA20242023
Non-cash investing and financing activities:
Change in property and equipment in accounts payable and accrued expenses and other current liabilities$(912,142)$5,064,356 
8

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)



(1)    Basis of Presentation

The unaudited condensed consolidated financial statements included herein have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's 2023 annual report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only a normal and recurring nature, necessary to present fairly the financial position of the Company as of June 30, 2024, and the results of operations and cash flows for the interim periods presented.

(2)    Adoption of New Accounting Standards

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2023-07, Improvements to Reportable Segment Disclosures. This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. The Company will likely include additional disclosures when this ASU is adopted by the Company. The Company is currently evaluating the provisions of this ASU and expects to adopt the ASU for the year ending December 31, 2024.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. Under this ASU, public benefit entities must annually “(1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate).” This ASU is effective on a prospective basis for the Company in the fiscal year ending December 31, 2025. This ASU will result in additional disclosures being included in the consolidated financial statements once adopted.

(3)    Goodwill and Other Intangible Assets

Goodwill represents the cost of an acquisition in excess of the fair values assigned to identifiable net assets acquired. The Company recorded Goodwill of: $307.4 million as part of the HomeLink® acquisition in 2013; $3.7 million as part of the acquisition of Vaporsens, Inc. ("Vaporsens") in 2020; $0.2 million as part of the acquisition of Air-Craftglass Production BV ("Air-Craftglass") in 2020; $1.0 million as a part of the acquisition of Argil, Inc. ("Argil") in 2020; $2.0 million as part of the acquisition of Guardian Optical Technologies ("Guardian") in 2021; and $26.7 million as part of the acquisition of eSight in the fourth quarter of 2023. The carrying value of Goodwill as of both June 30, 2024 and December 31, 2023 was $340.1 million, as set forth in the table below:

9

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


Carrying Amount
Balance as of December 31, 2023$340,105,631 
Acquisitions— 
Divestitures— 
Impairments— 
Other— 
Balance as of June 30, 2024$340,105,631 

In addition to annual impairment testing, which is performed as of the first day of the fourth quarter, the Company continuously monitors for events and circumstances that could negatively impact the key assumptions in determining fair value of goodwill or other intangible assets thus resulting in the need for interim impairment testing, including long-term revenue growth projections, profitability, discount rates, recent market valuations from transactions by comparable companies, volatility in the Company's market capitalization, and general industry, market and macroeconomic conditions. No such events or circumstances that might negatively impact the key assumptions were observed in the second quarter of 2024 and, as such, nothing indicated the need for interim impairment testing.

The Company also acquired In-Process Research & Development ("In-Process R & D") as part of the acquisitions of: Vaporsens; Air-Craftglass; Argil; and Guardian, each of which has been previously disclosed.

The patents and intangible assets and related change in carrying values are set forth in the tables below:

As of June 30, 2024:
Other Intangible AssetsGrossAccumulated AmortizationNetAssumed Useful Life
Gentex Patents$39,013,180 $(27,602,158)$11,411,022 Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks
$52,000,000 $— $52,000,000 Indefinite
HomeLink® Technology
180,000,000 (161,250,000)18,750,000 12 years
Existing Customer Platforms43,000,000 (43,000,000)— 10 years
Exclusive Licensing Agreement96,000,000 — 96,000,000 Indefinite
eSight Technology12,000,000 (666,667)11,333,333 12 years
eSight Trade Names and Trademarks870,000 (48,333)821,667 12 years
Vaporsens In-Process R&D11,000,000 — 11,000,000 Indefinite
Argil In-Process R&D6,278,132 — 6,278,132 Indefinite
Air-Craftglass In-Process R&D1,507,778 — 1,507,778 Indefinite
Guardian Trade Names1,300,000 — 1,300,000 Indefinite
Guardian In-Process R&D6,800,000 — 6,800,000 Indefinite
Total Other Intangible Assets$410,755,910 $(204,965,000)$205,790,910 
Total Patents & Other Intangible Assets$449,769,090 $(232,567,158)$217,201,932 




10

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


As of December 31, 2023:
Other Intangible Assets
Gross
Accumulated Amortization
Net
Assumed Useful Life
Gentex Patents
$39,199,107 $(27,769,803)$11,429,304 Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks
$52,000,000 $— $52,000,000 Indefinite
HomeLink® Technology
180,000,000 (153,750,000)26,250,000 12 years
Existing Customer Platforms43,000,000 (43,000,000)— 10 years
Exclusive Licensing Agreement
96,000,000 — 96,000,000 Indefinite
eSight Technology12,000,000 — 12,000,000 12 years
eSight Trade Names and Trademarks870,000 — 870,000 12 years
Vaporsens In-Process R&D11,000,000 — 11,000,000 Indefinite
Argil In-Process R&D6,278,132 — 6,278,132 Indefinite
Air-Craftglass In-Process R&D1,507,778 — 1,507,778 Indefinite
Guardian Trade Names1,300,000 — 1,300,000 Indefinite
Guardian In-Process R&D6,800,000 — 6,800,000 Indefinite
Total Other Intangible Assets$410,755,910 $(196,750,000)$214,005,910 
Total Patents & Other Intangible Assets$449,955,017 $(224,519,803)$225,435,214 

Amortization expense on patents and intangible assets was approximately $4.4 million and $8.7 million during the three and six months ended June 30, 2024, respectively, compared to approximately $5.2 million and $10.5 million for the same periods ended June 30, 2023, respectively.

Excluding the impact of any future acquisitions, the Company estimates amortization expense for the year ending December 31, 2024 to be approximately $18 million, for the year ending December 31, 2025 to be approximately $15 million, and for each of the years ending December 31, 2026, December 31, 2027, and December 31, 2028 to be approximately $3 million.


(4)    Investments
Available for sale securities
The Company follows the provisions of Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, and for its non-financial assets and liabilities subject to fair value measurements. ASC 820 provides a framework for measuring the fair value of assets and liabilities. This framework is intended to provide increased consistency in how fair value determinations are made under various existing accounting standards that permit, or in some cases, require estimates of fair-market value. This standard also expanded financial statement disclosure requirements with respect to a company’s use of fair-value measurements, including the effect of such measurements on earnings. The cost of securities sold is based on the specific identification method.
The Company determines the fair value of its government securities, asset-backed securities, municipal bonds, and corporate bonds by utilizing monthly valuation statements that are provided by its broker. The broker determines the investment valuation by utilizing the bid price in the market and also refers to third party sources to validate valuations, and as such are classified as Level 2 assets.
The Company's certificates of deposit are classified as available for sale and are considered as Level 1 assets. These investments are carried at cost, which approximates fair value.
11

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


On October 4, 2023, the Company entered into a Stock Purchase Agreement to acquire up to 3,137,500 shares of VOXX International Corporation ("VOXX") Class A Common Stock. The Company agreed to purchase the shares in two tranches: (1) on October 6, 2023, the Company purchased 1,568,750 shares of Class A Common Stock at a price of $10 per share, and (2) on January 5, 2024, the Company purchased 1,568,750 shares of Class A Common Stock at a price of $10 per share. The VOXX shares held by the Company are publicly traded and have a readily determinable fair market value and are considered Level 1 assets. As of June 30, 2024, the Company holds a total of 3,311,308 shares of VOXX. The investment is accounted for in accordance with ASC 321, Investments - Equity Securities, with changes in fair value recorded in Investment income, net in consolidated statements of income. During the three and six months ended June 30, 2024, the Company recorded $16.6 million and $23.8 million, respectively, of mark to market adjustments in investment income.

Technology Investments

The Company also periodically makes strategic investments in the non-marketable debt or equity securities of non-consolidated third parties ("Technology Investments"). Such Technology Investments totaled approximately $146.2 million as of June 30, 2024, of which $142.7 million and $3.5 million are recorded in long-term investments and short-term investments, respectively, on the consolidated balance sheet, and $128.0 million as of December 31, 2023, of which $124.6 million and $3.4 million are recorded in long-term investments and short-term investments, respectively, on the consolidated balance sheet. Depending on the form of investment, and the degree of influence the Company has over the investee, the Company primarily accounts for the Technology Investments in accordance with ASC 321, Investments- Equity Securities or ASC 323 – Investments – Equity Method and Joint Venture. The Company accounts for equity securities in non-controlled affiliates through which the Company exercises significant influence but do not have control over the investee under the equity method, with the Company’s share of the earnings or losses of non-controlled affiliates recognized within Other (loss) income, net in the Company's consolidated statement of income. All other Technology Investments that the Company holds are primarily accounted for under the measurement alternative of ASC 321. Under the measurement alternative, the carrying value is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer.

Assets or liabilities that have recurring fair value measurements are shown below as of June 30, 2024 and December 31, 2023:
As of June 30, 2024:
Fair Value Measurements at Reporting Date Using
Total as of
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Observable
Inputs
Significant
Unobservable
Inputs
Description
June 30, 2024(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$260,241,951 $260,241,951 $— $— 
Short-Term Investments:
Certificate of Deposit995,838 995,838 — — 
Government Securities4,591,123 — 4,591,123 — 
Municipal Bonds5,079,264 — 5,079,264 — 
Other1,401,088 1,401,088 — — 
Long-Term Investments:
Asset Backed Securities40,725,036 — 40,725,036 — 
Corporate Bonds62,832,820 — 62,832,820 — 
Government Securities8,380,081 — 8,380,081 — 
Municipal Bonds43,932,270 — 43,932,270 — 
Common Stock10,463,734 10,463,734 — — 
Total$438,643,205 $273,102,611 $165,540,594 $— 
12

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)



As of December 31, 2023:
Fair Value Measurements at Reporting Date Using
Total as of
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Observable
Inputs
Significant
Unobservable
Inputs
Description
December 31, 2023(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$226,435,019 $226,435,019 $— $— 
Short-Term Investments:
Certificate of Deposit994,013 994,013 — — 
Corporate Bonds1,943,886 — 1,943,886 — 
Government Securities4,759,507 — 4,759,507 — 
Municipal Bonds1,726,658 — 1,726,658 — 
Other1,465,388 1,465,388 — — 
Long-Term Investments:
Asset-backed Securities27,146,504 — 27,146,504 — 
Certificate of Deposit748,358 748,358 — — 
Corporate Bonds65,404,340 — 65,404,340 — 
Governmental Securities6,227,129 — 6,227,129 — 
Municipal Bonds56,336,921 — 56,336,921 
Common Stock18,610,519 18,610,519 — — 
Total$411,798,242 $248,253,297 $163,544,945 $— 

The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of June 30, 2024 and December 31, 2023:

As of June 30, 2024:
Unrealized
Cost
Gains
Losses
Market Value
Short-Term Investments:
Certificate of Deposit$1,000,000 $— $(4,162)$995,838 
Government Securities4,608,148 — (17,025)4,591,123 
Municipal Bonds5,137,053 — (57,789)5,079,264 
Other1,401,088 — — 1,401,088 
Long-Term Investments:
Asset Backed Securities40,635,021 343,922 (253,907)40,725,036 
Corporate Bonds63,561,430 203,037 (931,647)62,832,820 
Government Securities8,434,018 17,187 (71,124)8,380,081 
Municipal Bonds45,668,584 216,797 (1,953,111)43,932,270 
Total$170,445,342 $780,943 $(3,288,765)$167,937,520 


13

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


As of December 31, 2023:    
Unrealized
CostGainsLossesMarket Value
Short-Term Investments:
Certificate of Deposit$1,000,000 $— $(5,987)$994,013 
Corporate Bonds1,976,195 — (32,309)1,943,886 
Government Securities4,754,495 21,141 (16,129)4,759,507 
Municipal Bonds1,749,038 — (22,380)1,726,658 
Other1,465,388 — — 1,465,388 
Long-Term Investments:
Asset-backed Securities26,923,803 331,847 (109,146)27,146,504 
Certificate of Deposit750,000 (1,642)748,358 
Corporate Bonds66,214,398 748,471 (1,558,529)65,404,340 
Government Securities6,217,774 10,675 (1,320)6,227,129 
Municipal Bonds58,261,615 811,128 (2,735,822)56,336,921 
Common Stock17,324,886 1,328,446 (42,813)18,610,519 
Total$186,637,592 $3,251,708 $(4,526,077)$185,363,223 

Unrealized losses on available-for-sale securities as of June 30, 2024, are as follows:
Aggregate Unrealized LossesAggregate Fair Value of Investments
Loss duration of less than one year$455,438 $58,239,483 
Loss duration of greater than one year2,833,327 62,929,099 
       Total
$3,288,765 $121,168,582 

Unrealized losses on available-for-sale securities as of December 31, 2023, are as follows:
Aggregate Unrealized Losses
Aggregate Fair Value of Investments
Loss duration of less than one year$126,074 $13,449,592 
Loss duration of greater than one year4,400,003 76,966,258 
       Total
$4,526,077 $90,415,850 

Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The guidance modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. The Company utilized the guidance provided by ASC 326 to determine whether any of the available-for-sale debt securities held by the Company were impaired. No investments were considered to be impaired during the periods presented. The Company has the intention and current ability to hold its debt investments until any amortized cost basis has been recovered.

Fixed income securities as of June 30, 2024 have contractual maturities as follows:
Due within one year
$10,666,225 
Due between one and five years
89,477,474 
Due over five years
66,392,732 
$166,536,431 
14

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)



(5)    Inventories, net
Inventories consisted of the following at the respective balance sheet dates:
June 30, 2024December 31, 2023
Raw materials
$322,616,747 $283,126,566 
Work-in-process
52,272,636 46,343,955 
Finished goods
88,602,922 73,002,507 
Total Inventory
$463,492,305 $402,473,028 


(6)    Earnings Per Share

The Company has unvested share-based payment awards with a right to receive non-forfeitable dividends, which are considered participating securities under ASC 260, Earnings Per Share. The Company allocates earnings to participating securities and computes earnings per share using the two-class method. Under the two-class method, net income per share is computed by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, net income is allocated to both common shares and participating securities based on their respective weighted average shares outstanding for the period. For a period of net loss, net loss is not allocated to participating securities.

The following table sets forth the computation of basic and diluted net income per common share under the two-class method for the three and six months ended June 30, 2024 and June 30, 2023:
15

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Basic Earnings Per Share
Net Income$86,040,438 $109,155,403 $194,271,153 $206,733,664 
Less: Dividends and undistributed earnings allocated to participating securities1,202,737 1,616,981 2,782,172 3,095,900 
Net Income available to common shareholders$84,837,701 $107,538,422 $191,488,981 $203,637,764 
Basic weighted average shares outstanding227,377,169 230,005,782 227,490,367 230,135,955 
Net Income per share - Basic$0.37 $0.47 $0.84 $0.88 
Diluted Earnings Per Share
Allocation of Net Income used in basic computation$84,837,701 $107,538,422 $191,488,981 $203,637,764 
Reallocation of undistributed earnings1,578 1,147 3,968 2,462 
Net Income available to common shareholders - Diluted$84,839,279 $107,539,569 $191,492,949 $203,640,226 
Number of shares used in basic computation227,377,169 230,005,782 227,490,367 230,135,955 
Additional weighted average dilutive common stock equivalents431,760 222,568 454,753 255,153 
Diluted weighted average shares outstanding227,808,929 230,228,350 227,945,120 230,391,108 
Net Income per share - Diluted$0.37 $0.47 $0.84 $0.88 
Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive435,981 2,355,346 422,639 1,549,824 

(7)    Stock-Based Compensation Plans
As of June 30, 2024, the Company had two equity incentive plans, which include the Gentex Corporation 2019 Omnibus Incentive Plan ("2019 Omnibus Plan"), and an employee stock purchase plan. Those plans and any prior material amendments thereto have previously been approved by shareholders.
The 2019 Omnibus Plan provides for the potential awards to: i) employees; and ii) non-employee directors of the Company or its subsidiaries, which potential awards may be stock options (both incentive stock options and non-qualified stock options), appreciation rights, restricted stock awards and restricted stock units, performance share awards and performance units, and other awards that are stock-based, cash-based or a combination of both. The 2019 Omnibus Plan replaced the Company's Employee Stock Option Plan, Second Restricted Stock Plan, and Amended and Restated Non-Employee Director Stock Option Plan (the "Prior Plans"), which were also approved by shareholders. Any existing awards previously granted under the Prior Plans remain outstanding in accordance with their terms and are governed by the Prior Plans as applicable.
16

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


Readers should refer to Note 5 of the consolidated financial statements in the Company's Annual Report on Form 10-K for the calendar year ended December 31, 2023, for additional information related to the Prior Plans.
The Company recognized total compensation expense for share-based payments of $10,964,419 and $21,451,680 for the three and six months ended June 30, 2024, respectively. The Company recognized compensation expense for share-based payments of $9,744,670 and $18,264,205 for the three and six months ended June 30, 2023, respectively. A portion of the compensation cost for share based payment awards is capitalized as part of inventory.
2019 Omnibus Incentive Plan

The purpose of the 2019 Omnibus Plan is to attract and retain employees, officers, and directors of the Company and its subsidiaries and to motivate and provide such persons incentives and rewards for performance. Pursuant to the terms of the 2019 Omnibus Plan, each type of award counts against the available shares based on a predetermined conversion rate (shown in the table below). As of June 30, 2024, 10,767,342 share awards have been made under the Plan, resulting in 28,493,236 shares granted of the 45,000,000 total shares available to be issued under the Plan. The shares issued are presented net of shares from canceled/expired options and shares.

Shares GrantedConversion RateTotal Shares Under 2019 Omnibus Plan
Non-Qualified Stock Options4,974,566 1.004,974,566 
Restricted Stock4,784,639 4.0619,425,634 
Performance Shares1,008,137 4.064,093,036 
Total10,767,342 28,493,236 
Employee Stock Options
Under the 2019 Omnibus Plan and the Employee Stock Option Plan, the option exercise price equals the stock’s market price on the date of grant. The options vest after one to five years and expire after five to ten years. As of June 30, 2024, there was $6,433,486 of unearned compensation cost associated with stock options granted under the 2019 Omnibus Incentive Plan and the Employee Stock Option Plan, which is expected to be recognized over the remaining vesting periods.
The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the indicated periods:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Dividend Yield (1)
1.62 %1.75 %1.63 %1.76 %
Expected volatility (2)
28.00 %28.97 %28.15 %29.01 %
Risk-free interest rate (3)
4.33 %4.13 %4.27 %3.87 %
Expected term of options (years) (4)
4.144.154.144.15
Weighted-avg. grant date fair value$8.49$7.38$8.78$7.11
1.Represents the Company’s estimated cash dividend yield over the expected term of option grant.
2.Amount is determined based on analysis of historical price volatility of the Company’s common stock. The expected volatility is based on the daily percentage change in the price of the stock over a period equal to the expected term of the option grant.
3.Represents the U.S. Treasury yield over the expected term of the option grant.
4.Represents the period of time that options granted are expected to be outstanding. Based on analysis of historical option exercise activity, the Company has determined that all employee groups exhibit similar exercise and post-vesting termination behavior.


Restricted Shares
17

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


Restricted shares awarded under the 2019 Omnibus Plan and the Second Restricted Stock Plan entitle the shareholder to all rights of common stock ownership, except that the shares may not be sold, transferred, pledged, exchanged or otherwise disposed of during the restriction period. The restriction period is determined by the Compensation Committee, appointed by the Board of Directors, but may not exceed ten years under the terms of such plans. As of June 30, 2024, the Company had unearned stock-based compensation of $51,380,007 associated with the restricted stock grants issued under the 2019 Omnibus Plan and the Second Restricted Stock Plan. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable restriction periods. Compensation expense from restricted stock grants in the three and six months ended June 30, 2024 was $6,883,839 and $13,571,180, respectively. Compensation expense from restricted stock grants in the three and six months ended June 30, 2023 was $5,862,755 and $11,808,809, respectively.

Performance Shares

Performance shares awarded under the 2019 Omnibus Plan are considered performance condition awards as attainment is based on the Company's performance relative to pre-established metrics. The fair value of such performance share awards was determined using the Company's average closing stock price on the twenty days preceding the date of grant. The expected attainment of the metrics for these awards is then analyzed each reporting period, and the related expense is adjusted based on expected attainment, if the then expected attainment differs from previous expectations. The cumulative effect on current and prior periods of a change in expected attainment is recognized in the period of change.

As of June 30, 2024, the Company had unearned stock-based compensation of $18,244,290 associated with these performance share grants. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable performance periods. Compensation expense related to these performance share grants in the three and six months ended June 30, 2024 was $2,023,635 and $3,796,264, respectively. Compensation expense related to these performance share grants in the three and six months ended June 30, 2023 was $1,635,022 and $2,137,228, respectively.

As part of its objective of attracting and retaining management to fulfill the Company's strategic goals, the Compensation Committee recommended and the Board approved on February 16, 2023, a retention grant of performance share awards ("PSAs"). In addition to the retention of management, the PSAs have been granted to further align management goals with those of the Company's shareholders. For that reason, the PSAs have been granted with performance criteria and will be based upon achievement of the Company's relative total shareholder return ("TSR") over a four year period (2023-2026), against a predetermined peer group. The grant date fair value of PSAs with TSR targets was determined using a Monte Carlo simulation. Compensation expense related to these retention grants in the three and six months ended June 30, 2024 was $445,793 and $888,639, respectively. Compensation expense related to these retention grants in the three and six months ended June 30, 2023 was $516,493 and $641,218, respectively.

Employee Stock Purchase Plan

Prior to July 1, 2022, the Company had in place an employee stock purchase plan covering 2,000,000 shares of common stock. Under that plan, the Company sold shares at 85% of the stock’s market price at date of purchase. Under ASC 718, Compensation - Stock Compensation, the 15% discounted value was recognized as compensation expense. As of June 30, 2024, the Company has issued 1,624,122 shares under this prior plan.

In May 2022, the 2022 Gentex Corporation Employee Stock Purchase Plan covering 2,000,000 shares of common stock was approved by shareholders replacing the above referenced prior plan effective July 1, 2022. Under the plan, the Company sells shares at 85% of the stock's market price at date of purchase. Under ASC 718, the 15% discounted value is recognized as compensation expense. As of June 30, 2024, the Company has issued 362,488 shares under this plan.


18

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


(8)    Comprehensive Income (Loss)

Comprehensive income (loss) reflects the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. For the Company, comprehensive income represents net income adjusted for unrealized gains and losses on certain debt investments and foreign currency translation adjustments.

The following table presents the net changes in the Company's accumulated other comprehensive loss by component (all amounts shown are net of tax):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Foreign currency translation adjustments:
Balance at beginning of period$(5,484,932)$(4,153,406)$(4,534,719)$(4,032,239)
Other Comprehensive loss before reclassifications
(509,541)(1,456,377)(1,459,754)(1,577,544)
Net current-period change(509,541)(1,456,377)(1,459,754)(1,577,544)
Balance at end of period
(5,994,473)(5,609,783)(5,994,473)(5,609,783)
Unrealized (losses) gains on available-for-sale debt securities:
Balance at beginning of period
(1,981,394)(8,071,091)(2,022,403)(10,110,695)
Other Comprehensive (loss) income before reclassifications
(281,297)547,342 (829,754)825,060 
Amounts reclassified from accumulated other comprehensive income
281,511 (109,236)870,977 1,652,650 
Net current-period change
214 438,106 41,223 2,477,710 
Balance at end of period
(1,981,180)(7,632,985)(1,981,180)(7,632,985)
Accumulated other comprehensive loss, end of period
$(7,975,653)$(13,242,768)$(7,975,653)$(13,242,768)
The following table presents details of reclassifications out of accumulated other comprehensive loss for the three and six months ended June 30, 2024 and 2023:

Details about Accumulated Other Comprehensive Loss ComponentsAmounts Reclassified from Other Comprehensive LossAffected Line item in the Consolidated Statements of Income
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Unrealized gains (losses) on available-for-sale debt securities
Realized gain (loss) on sale of securities$(356,343)$138,274 $(1,102,503)$(2,091,962)Investment income
Provision for income taxes74,832 (29,038)231,526 439,312 Provision for income taxes
Total net reclassifications for the period$(281,511)$109,236 $(870,977)$(1,652,650)



19

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


(9)    Debt and Financing Arrangements

On October 15, 2018, the Company entered into a credit agreement with PNC as the administrative agent and sole lender, which has now been amended and restated as discussed below.

On February 21, 2023, as previously disclosed, the Company entered into an amended and restated credit agreement ("Credit Agreement") that provides for, among other things, a three-year unsecured revolving credit facility with a borrowing capacity of up to $250.0 million ("Revolver") that matures on February 21, 2026, replacing in its entirety the Company's above referenced prior $150.0 million revolving credit facility scheduled to mature on October 15, 2023. Included in the Revolver is a $20.0 million sublimit for standby letters of credit and a $35.0 million sublimit for swingline loans, each subject to certain conditions. Funds are available under the Revolver for working capital, capital expenditures, and other lawful corporate purposes, including, but not limited to, acquisitions and common stock repurchases, subject in each case to compliance with certain financial covenants, as defined in the Credit Agreement. As of June 30, 2024, there was no outstanding balance on the Revolver.

As of June 30, 2024, the Company is in compliance with its covenants under the Credit Agreement.


(10)    Equity

The decrease in common stock during the six months ended June 30, 2024, was primarily due to the repurchases of 2.6 million shares, partially offset by the issuance of 1.4 million shares of the Company’s common stock, net of cancellations, under the Company’s stock-based compensation plans. The total net decrease was 1.2 million shares.

The Company recorded a cash dividend of $0.120 per share during the second quarter of 2024 as compared to a cash dividend of $0.120 per share during the second quarter of 2023. The second quarter 2024 dividend of $27.6 million was declared on May 29, 2024 and was paid on July 17, 2024.


(11)    Contingencies
The Company is periodically involved in legal proceedings, legal actions and claims arising in the normal course of business, including proceedings relating to product liability, intellectual property, safety and health, employment, regulatory, and other matters. Such matters are subject to many uncertainties and outcomes are not predictable. The Company does not believe, however, that at the current time any of these matters constitute material pending legal proceedings that will have a material adverse effect on the financial position or future results of operations or cash flows of the Company.


(12)    Segment Reporting

The Company's automotive segment develops and manufactures digital vision and connected car products and electronics, including: automatic-dimming rearview mirrors with and without electronic features; non-auto dimming rearview mirrors with and without electronic features; and other electronics. The Company also develops and manufactures variably dimming windows and laminate products for the aerospace industry and fire protection products for the commercial construction industry. In 2020, the Company acquired Vaporsens, which specializes in nanofiber chemical sensing. In 2023, the Company acquired certain technology assets from eSight, which provides advanced and versatile low-vision smart glasses for those with visual impairments and is compatible with more than 20 eye conditions including Macular Degeneration, Diabetic Retinopathy, and Stargardt disease. These four non-automotive segments are combined into the "Other" segment as shown below.
20

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Revenue:
Automotive Products$559,290,095 $574,109,748 $1,136,892,291 $1,111,532,736 
Other13,635,683 9,363,098 26,258,698 22,701,421 
Total$572,925,778 $583,472,846 $1,163,150,989 $1,134,234,157 
Income (Loss) from operations:
Automotive Products$114,652,174 $128,729,058 $244,198,314 $240,168,856 
Other231,848 (1,439,670)32,020 371,179 
Total$114,884,022 $127,289,388 $244,230,334 $240,540,035 



(13)    Income Taxes
The effective tax rate was 15.2% in the six months ended June 30, 2024, compared to an effective tax rate of 15.5% for the same period in 2023. Generally, effective tax rates for these periods differ from statutory federal income tax rates, due to provisions for state and local income taxes, permanent tax differences, the foreign-derived intangible income tax deduction, and research and development tax credits.

(14)    Revenue

The following table shows the Company’s Automotive revenue and Other Products revenue disaggregated by geographical location for Automotive Products for the three and six month periods ended June 30, 2024 and June 30, 2023, respectively:
Three Months Ended June 30,Six Months Ended June 30,
Revenue
2024202320242023
Automotive Products
U.S.
$164,948,637 $177,940,475 $330,089,259 $348,722,079 
Japan82,261,79384,178,567171,266,421 156,334,551 
Germany71,510,830 73,990,846 147,205,718 154,570,310 
Korea31,457,450 33,920,149 85,152,562 57,398,619 
Mexico47,955,922 36,803,254 85,577,085 71,090,798 
Other161,155,463 167,276,457 317,601,246 323,416,379 
Total Automotive Products$559,290,095 $574,109,748 $1,136,892,291 $1,111,532,736 
Other Products (U.S.)13,635,683 9,363,098 $26,258,698 $22,701,421 
Total Revenue$572,925,778 $583,472,846 $1,163,150,989 $1,134,234,157 

Revenue by geographic area may fluctuate based on many factors, including: exposure to local economic, political, and labor conditions; global supply chain constraints; unexpected changes in laws, regulations, trade or monetary or fiscal policy, including interest rates, foreign currency exchange rates and changes in the rate of inflation in the U.S. and other foreign countries; labor strikes, armed conflicts and acts of terrorism and war; and tariffs, quotas, customs and other import or export restrictions and other trade barriers.

21

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


The following table disaggregates the Company’s Automotive revenue and Other revenue by major source for the three and six month periods ended June 30, 2024 and June 30, 2023:
Three Months Ended June 30,Six Months Ended June 30,
Revenue2024202320242023
Automotive Segment
Automotive Mirrors & Electronics
$530,558,700 $540,636,798 $1,080,743,130 $1,046,368,374 
HomeLink Modules*
28,731,395 33,472,950 56,149,161 65,164,362 
Total Automotive Products$559,290,095 $574,109,748 $1,136,892,291 $1,111,532,736 
Other Segment
Fire Protection Products7,353,664 6,018,930 14,189,702 15,320,083 
Aerospace Products6,286,593 3,344,168 12,057,394 7,381,338 
Medical Products(4,574)— $11,603 $— 
Total Other$13,635,683 $9,363,098 $26,258,698 $22,701,421 
*Excludes HomeLink revenue where HomeLink electronics are integrated into interior auto-dimming mirrors.


(15)    Leases

The Company has operating leases for certain sales, manufacturing, and engineering offices, as well as other vehicles and equipment, which are included within "Plant and Equipment - Net" section of the condensed consolidated balance sheets. The leases have remaining lease terms of 1 year to 5 years. The weighted average remaining lease term for operating leases as of June 30, 2024 was 4 years, with a weighted average discount rate of 6.3%.

Future minimum lease payments for operating leases as of June 30, 2024 were as follows:
Year ending December 31,
2024 (excluding the six months ended June 30, 2024)$1,186,804 
20251,801,961 
20261,269,701 
2027937,622 
2028697,246 
Thereafter83,429 
Total future minimum lease payments5,976,763 
Less imputed interest(441,169)
Total$5,535,594 

Reported as of June 30, 2024
Accrued Liabilities$2,132,686 
Other Non-Current Liabilities3,402,908 
Total$5,535,594 

22

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)



(16)    Acquisition

On November 2, 2023, the Company, in the ordinary course of business, acquired certain technology assets from eSight for approximately $18.9 million in cash, the assumption of a $9.4 million promissory note given in exchange for the 20% equity the Company previously held in the assets, as well as an earn out provision over a ten year period. The earn out provision consists of multiple potential payments based on the revenue over the next ten calendar years, with the total earn out not to exceed $70 million. The Company funded the acquisition with cash on hand. The technology acquired from eSight provides advanced and versatile low-vision smart glasses for those with visual impairments and is compatible with more than 20 eye conditions including Macular Degeneration, Diabetic Retinopathy, and Stargardt disease. These assets are classified within the Company's Other segment.

The Company will account for the acquisition under the provisions of FASB ASC Topic 805, Business Combinations. The Company is still in the process of verifying data and finalizing information related to the valuation and recording of identifiable intangible assets, net working capital, contingent liabilities, and the resulting effects on the amount of recorded goodwill. The Company expects to finalize these matters within the measurement period, which is currently expected to remain open through the third quarter of 2024. Less than $0.1 million of revenue of the business of eSight was included in the Company's consolidated statement of income and comprehensive income for the year to date June 30, 2024.

The following table summarizes the fair values of the assets acquired, and the liabilities assumed, as of the acquisition date of November 2, 2023:

Fair Value
Current Assets$441,228 
Personal Property75,000 
Right of Use Asset (Lease)116,562 
ESight Technology12,000,000 
Trade Names and Trademarks870,000 
Goodwill26,696,012 
Total Assets$40,198,802 
Lease Liability$116,562 
Contingent Earn Out Liability12,000,000 
Total Liabilities$12,116,562 
23


Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.


SECOND QUARTER 2024 VERSUS SECOND QUARTER 2023
Net Sales. Net sales for the second quarter of 2024 decreased by $10.5 million or 2%, when compared with the second quarter of 2023.
Automotive net sales for the second quarter of 2024 were $559.3 million, a 3% decrease when compared with automotive net sales of $574.1 million in the second quarter of 2023. The 6% decrease in automotive mirror unit shipments in the second quarter of 2024 to 12.2 million units, compared with 12.9 million units in the second quarter of 2023, was driven by a 6% quarter over quarter decrease in interior auto-dimming mirror unit shipments, and a 5% quarter over quarter decrease in exterior auto-dimming mirror unit shipments.

The below table represents the Company's auto-dimming mirror unit shipments for the three and six months ended June 30, 2024, and 2023 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
20242023% Change20242023% Change
North American Interior Mirrors2,346 2,399 (2)%4,608 4,825 (4)%
North American Exterior Mirrors1,705 1,800 (5)%3,326 3,419 (3)%
Total North American Mirror Units
4,051 4,199 (4)%7,934 8,244 (4)%
International Interior Mirrors5,189 5,620 (8)%10,744 11,391 (6)%
International Exterior Mirrors2,944 3,102 (5)%5,978 6,003 —%
Total International Mirror Units
8,133 8,722 (7)%16,721 17,394 (4)%
Total Interior Mirrors7,535 8,019 (6)%15,352 16,216 (5)%
Total Exterior Mirrors4,649 4,902 (5)%9,304 9,422 (1)%
Total Auto-Dimming Mirror Units12,184 12,921 (6)%24,655 25,638 (4)%
Note: Percent change and amounts may not total due to rounding.

Other net sales were $13.6 million in the second quarter of 2024, compared to $9.4 million in the second quarter of 2023. Fire protection sales increased to $7.4 million for the second quarter of 2024, compared to $6.0 million in the same quarter of last year. Dimmable aircraft sales increased during the second quarter of 2024 to $6.3 million, compared to $3.3 million in the same quarter of last year.

Cost of Goods Sold. As a percentage of net sales, cost of goods sold increased to 67.1% for the second quarter of 2024, versus 66.9% in the same quarter last year. The quarter over quarter decrease in the gross profit margin was primarily impacted by lower sales levels and unfavorable product mix due to lower than expected shipments of full display mirrors and exterior auto-dimming rearview mirrors. On a quarter over quarter basis, product mix had a negative impact on gross margin of approximately 100-125 basis points. Purchasing cost reductions had a positive impact on gross margin on a quarter over quarter basis of approximately 150-200 basis points.

Operating Expenses. Engineering, research and development ("E,R&D") expenses for the second quarter of 2024 increased by $6.0 million, when compared with the second quarter of 2023, primarily due to staffing and engineering related professional fees.
.
Selling, general and administrative ("S, G & A") expenses increased by 7% or $1.9 million for the second quarter of 2024, compared to the second quarter of 2023, primarily due to increased staffing. S, G & A expenses remained at approximately 5% of net sales in the second quarters of 2024 and 2023.
24


Total operating expenses were $73.7 million in the second quarter of 2024, an increase of 12% quarter over quarter or $7.9 million, compared to $65.8 million in the second quarter of 2023.

Total Other (Loss) Income. Total other (loss) income for the second quarter of 2024 decreased by $14.9 million, when compared with the second quarter of 2023.

Provision for Income Taxes. The effective tax rate was 15.1% for, and an income tax expense of $15.3 million was recorded in, the second quarter of 2024, compared to an effective tax rate of 15.1% for, and an income tax expense of $19.4 million recorded in, the same quarter of 2023. Typically, effective tax rates for the Company differ from statutory federal income tax rates, due to provisions for state and local income taxes, permanent tax differences, research and development tax credits and the foreign-derived intangible income tax deduction.
Net Income. Net income for the second quarter of 2024 was $86.0 million, down from a net income of $109.2 million in the second quarter of 2023. The change in net income was driven by the lower net sales and income from operations.
Earnings Per Share. The Company had earnings per diluted share for the second quarter of 2024 of $0.37, which compared to earnings per diluted share of $0.47 for the second quarter of 2023.

SIX MONTHS ENDED JUNE 30, 2024 VERSUS SIX MONTHS ENDED JUNE 30, 2023
Net Sales. Net Sales for the six months ended June 30, 2024 increased by $28.9 million or 3%, when compared with the same period in 2023.
Automotive net sales for the first six months of 2024 were $1.1 billion, up 2.3% compared with automotive net sales of $1.1 billion for the first six months of 2023. Domestic automotive mirror shipments in the six months ended June 30, 2024 decreased 4% to 7.9 million units, compared with 8.2 million units in the same period in 2023. International automotive mirror shipments in the six months ended June 30, 2024 decreased 4% to 16.7 million units, compared with 17.4 million units in the same period in 2023.
Other net sales were $26.3 million for the first six months of 2024, compared to $22.7 million for the same period last year. This increase is primarily due to the 63.3% increase in dimmable window aircraft sales for the first six months of 2024 to $12.1 million, from $7.4 million for the same period in 2023. Fire protection sales decreased by 7.4% to $14.2 million for the first six months of 2024, compared to $15.3 million in the same period of 2023.
Cost of Goods Sold. As a percentage of net sales, cost of goods sold decreased to 66.4% for the first six months of 2024, versus 67.6% in the same period last year. The period over period increase in the gross profit margin was primarily the result of reductions in material costs, improved fixed overhead leverage, freight expense decreases and tariff cost reductions, which were partially offset by customer price reductions.

Operating Expenses. E, R & D expenses for the six months ended June 30, 2024 were $86.2 million, compared with $72.6 million for the same period last year. The 19% increase in E, R & D expenses, in the first six months of 2024 compared to the same period in 2023, was primarily due to additional staffing, professional fees, and new product development.

S, G & A expenses for the first six months of 2024 increased $5.7 million to $60.4 million, when compared to $54.7 million for the same period in 2023. S, G & A expenses were approximately 5% of net sales in the first six months of 2024 and approximately 5% of net sales in the same period in 2023. S, G, & A expenses increased on a year over year basis primarily due to increased staffing.
Total Other (Loss) Income. Total other (loss) income for the six months ended June 30, 2024 was $15.3 million, compared with a total other income of $4.1 million for the same period last year.
Provision for Income Taxes. The effective tax rate was 15.2% for the six months ended June 30, 2024, compared to 15.5% for the same period of 2023. Generally, effective tax rates for the Company differ from
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statutory federal income tax rates, due to provisions for state and local income taxes, permanent tax differences, the foreign-derived intangible income tax deduction, and research and development tax credits.
Net Income. Net income for the six months ended June 30, 2024 decreased by $12.5 million or 6% to $194.3 million, compared to $206.7 million in the same period last year. The decrease in net income for the six months ended June 30, 2024 was primarily the result of the lower net sales and income from operations compared to the first six months of 2023.
Earnings Per Share. The Company had earnings per diluted share for the six months ended June 30, 2024 of $0.84, compared to earnings per diluted share of $0.88 for the six months ended June 30, 2023.
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FINANCIAL CONDITION:
The Company's cash and cash equivalents as of June 30, 2024 were $260.2 million, an increase of $33.8 million, compared to $226.4 million as of December 31, 2023. The increase was primarily due to cash flows from operations, which were partially offset by capital expenditures, investment purchases, dividend payments, and share repurchases during the six months ended June 30, 2024.
Short-term investments as of June 30, 2024 were $15.5 million, up from $14.4 million as of December 31, 2023, and long-term investments were $308.1 million as of June 30, 2024, up from $299.1 million as of December 31, 2023.
Accounts receivable as of June 30, 2024 decreased approximately $15.2 million compared to December 31, 2023, primarily due to the decrease in sales and timing thereof during the six months ended June 30, 2024.
Inventories as of June 30, 2024 were $463.5 million, compared to $402.5 million as of December 31, 2023, primarily due to increases in raw materials and finished goods.

Accounts payable as of June 30, 2024 increased approximately $21.6 million to $206.0 million, when compared to December 31, 2023, primarily driven by supplier payment terms and increased inventory purchases.
Accrued liabilities as of June 30, 2024 increased approximately $11.5 million compared to December 31, 2023, primarily due to an increase in accrued salaries and wages.
Cash flow from operating activities for the six months ended June 30, 2024 increased $17.4 million to $259.1 million, compared with $241.8 million during the same six month period last year, primarily due to changes in working capital.
Capital expenditures for the six months ended June 30, 2024 were approximately $63.6 million, compared with approximately $90.3 million for the same period last year. The decrease was primarily due to timing of payments and a decrease in expenditures related to building and facility construction projects previously disclosed as certain manufacturing facility construction was completed, as further described below.
The Company believes its existing and planned facilities are currently suitable, adequate, and have the capacity required for current and near-term planned business. Nevertheless, the Company continues to evaluate longer term facility needs. In 2023, the Company completed construction on a 345,000 square-foot manufacturing facility located at a 140 acre site in Zeeland, Michigan. The total cost of the building project was approximately $85 million, which was funded with cash and cash equivalents on hand. The Company began construction on two building expansions during 2022. The Company is expanding its current distribution center for an additional 300,000 square feet, with a total cost still expected to be approximately $40 - $45 million. The Company is also expanding one of its manufacturing facilities for an additional 60,000 feet, with a total cost still expected to be $20 - $30 million. Both expansion projects will be funded with cash and cash equivalents on hand. The Company also entered into a multi-year lease for 32,000 square feet of manufacturing space at a location approximately 20 miles from its main campus that began operations during the second quarter of 2023.
During 2023, the Company began the design and initial build phase of the previously announced Gentex Discovery Preschool, an on-site daycare and preschool designed to provide Company employees with convenient, cost-effective access to quality childcare. Construction is expected to begin in 2024, with an expected completion date in 2025. The total cost of the building project is expected to be $12 - $15 million, which will also be funded with cash and cash equivalents on hand.
The Company estimates that it currently has building capacity to manufacture approximately 42 - 45 million interior mirror units annually and approximately 19 - 22 million exterior mirror units annually, based on current product mix. The Company also evaluates equipment capacity on an ongoing basis and adds equipment as needed.
Management considers the current working capital and long-term investments, in addition to internally generated cash flow, its Credit Agreement, and credit worthiness, to be sufficient to cover anticipated cash needs for the foreseeable future considering its contractual obligations and commitments.
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The following is a summary of working capital and long-term investments:
June 30, 2024December 31, 2023
Working Capital$779,155,353 $726,129,177 
Fixed Income Long-Term Investments155,870,206 155,863,252 
Total$935,025,559 $881,992,429 

The Company has a previously announced share repurchase plan under which the Board of Directors has authorized the repurchase of shares of the Company's common stock, which remains a part of the broader publicly disclosed capital allocation strategy. Future share repurchases may vary from time to time and will take into account macroeconomic events, market trends, and other factors the Company deems appropriate (including, but not limited to, the market price of the stock, anti-dilutive effect of repurchases, and available cash). During the three and six months ended June 30, 2024, the Company repurchased 1,402,667 and 2,603,570 shares respectively. The Company has 13,247,609 shares remaining under the plan as of June 30, 2024, as is further detailed in Part II, Item 2 of this Form 10-Q.

BUSINESS UPDATE

For the second quarter of 2024, the Company reported net sales of $572.9 million, compared to net sales of $583.5 million in the second quarter of 2023, a 2% decrease quarter over quarter. For the second quarter of 2024, global light vehicle production in North America, Europe, and Japan/Korea decreased approximately 3%, when compared to the second quarter of 2023.

In the second quarter of 2024, the Company had 32 net new launches of interior and exterior auto-dimming mirrors and electronic features. Over 65% of the launches in the second quarter of 2024 were advanced feature launches, with HomeLink®, Full Display Mirror®, and outside auto-dimming mirrors being the bulk of such launches.

PRODUCT UPDATE

Mirror Systems

In 2023, The People's Republic of China newly issued GB15084 and the related procedures, which allow for the Company's frameless inside mirrors to be used on vehicles in the China domestic market.

Camera Systems

Full Display Mirror® began production in 2015. Current automotive design trends are yielding vehicles with small rear windows that are often further obstructed by headrests, passengers, and roof support pillars which can significantly hinder the mirror’s rearward view. The Company's Full Display Mirror® is an intelligent rear vision system that uses a custom, internally or externally mounted video camera and mirror-integrated video display to optimize a vehicle driver’s rearward view. This rear vision system consists of a hybrid Full Display Mirror® that offers bi-modal functionality. In mirror mode, the product functions as an auto-dimming rearview mirror which means that during nighttime driving, digital light sensors talk to one another via a microprocessor to automatically darken the mirror when glare is detected. With the flip of a switch, the mirror enters display mode, and a clear, bright display appears through the mirror’s reflective surface, providing a wide, unobstructed rearward view. The bi-modality of the Full Display Mirror® is essential, because in the event of any failure of the camera or display, the product is able to function as a mirror, which meets long-standing safety requirements in the automotive industry. In addition, the driver has the ability to switch between modes to accommodate usage preferences for various weather conditions, lighting conditions, and driving tasks.

As of the second quarter of 2024, the Company is shipping production Full Display Mirrors® to nineteen different automaker customers. The Company remains confident that ongoing discussions with certain other customers may in the future cause such customers to consider adding the Full Display Mirror® into their product road-map for future vehicles.

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To enhance capability and usability of the Company's Full Display Mirror®, the Company previously introduced its three-camera rear vision system that streams rear video in multiple composite views to its Full Display Mirror®. The Company believes it is the industry’s first practical and comprehensive rear vision solution designed to meet automaker, driver, safety, and regulatory requirements. The Company's rear vision system, known generally as a camera monitoring system ("CMS"), uses three cameras to provide a comprehensive view of the sides and rear of the vehicle. The side-view cameras are discretely housed in downsized, automatic-dimming exterior mirrors. Their video feeds are combined with that of a roof-mounted or rear window based camera and stitched together into multiple composite views, which are streamed to the driver using the Full Display Mirror®. The system’s modular nature lets the automaker customize functionality while offering it as an affordable, optional feature thereby enhancing safety by allowing the system to fail safe. During any failures due to weather conditions or otherwise that disrupt the digital view, drivers can still safely use the interior and exterior mirrors. The system also supports user preference by permitting drivers to use standard mirror views, camera views, or both. The system can also be tuned to meet the various regulatory field-of-view requirements around the world by using different types of flat and curved glass, combined with simple alterations to the video viewing modes. Downsized exterior mirrors provide automakers with significant weight savings and fuel efficiency improvements. To further enhance safety, the Company's CMS solution can also work in conjunction with a vehicle’s side blind zone warning system. When a trailing vehicle enters a side blind zone, a warning indicator illuminates in both the interior and exterior mirrors, while the corresponding side-view video feed appears in the display until the vehicle passes.

In July 2016, a revision to UN-ECE Regulation 46 was published with an effective date of June 18, 2016, which allows for camera monitoring systems to replace mirrors in Japan and European countries. Since January 2017, camera monitoring systems are also permitted as an alternative to replace mirrors in the Korea market. As noted, China released an updated version of its GB15084, effective in 2023, which allows for camera monitoring systems, frameless mirrors and aspheric (free-form) glass surfaces. Notwithstanding the foregoing, the Company continues to believe rearview mirrors provide a robust, simple and cost effective means to view the surrounding areas of a vehicle and remain a primary safety function for rear vision today. Cameras when used as the primary rear vision delivery mechanism have some inherent limitations, such as: electrical failure; cameras being blocked or obstructed; depth perception challenges; and viewing angles of the camera. Nonetheless, the Company continues designing and manufacturing not only rearview mirrors, but CMOS imagers and video displays as well. The Company believes that combining video displays with mirrors may well provide a more robust product by addressing all driving conditions in a single solution that can be controlled by the driver. As noted, the Company has been in production with the Company's Full Display Mirror® since 2015 and has, in the ordinary course of business, been awarded programs with nineteen OEM customers. The Company is currently shipping production Full Display Mirrors® to all nineteen of these automaker customers. The Company's CMS solution uses three cameras to provide a comprehensive view of the sides and rear of the vehicle while still providing the traditional safety of interior and exterior mirrors, which mirrors continue to function when cameras are obstructed or are not functioning. The Company has also previously announced that it continues development in the areas of imager performance, camera dynamic range, lens design, image processing from the camera to the display, and camera lens cleaning. The Company acknowledges that as such technology evolves over time, such as cameras replacing mirrors and/or autonomous driving, there is increased competition.
The Company began shipping Full Display Mirror® with Digital Video Recording ("DVR" capability) in 2020. This mirror and system launched in the Japan market and combine the superior functionality of the Full Display Mirror®, with the added capability to record video from the rearward facing and forward-facing cameras simultaneously. The data is stored to an SD storage card as requested by the customer. This integrated solution provides consumers with the features they want, while allowing the OEM to control the integration and execution in the vehicle.
The Company's HomeLink® products are the auto industry's most widely used and trusted car-to-home communication system, with an estimated 50 million units on the road. The system consists of two or three in-vehicle buttons that can be programmed to operate garage doors, security gates, home lighting, and other radio-frequency-controlled devices. In 2017, the Company demonstrated the next generation of HomeLink®, commonly referred to as HomeLink Connect®, which uses both RF and wireless cloud-based connectivity to deliver complete vehicle-to-home automation. With HomeLink Connect®, a HomeLink® button press communicates with the HomeLink Connect® app on the user’s smartphone. The app contains
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predefined, user-programmed actions, from single device operations to entire home automation scenes. The app, in turn, communicates to the home’s smart hub over the cloud activates the appropriate devices, including security systems, door locks, thermostats, lighting, and other home automation devices, providing comprehensive vehicle-to-home automation. The ability to prepare the home for arrival or departure can occur with one button press. For the automaker, it allows them to offer a customizable, yet proven solution without the engineering effort or security concerns associated with integrating third party software into the vehicle’s computer network. The Company also continues to work on providing HomeLink® applications for alternative automobile and vehicle types which include, but are not limited to, motorcycles, mopeds, snowmobiles, tractors, combines, lawn mowers, loaders, bulldozers, road-graders, backhoes, and golf carts. In 2021, the Company announced the Volkswagen as the first automaker to offer Bluetooth® enabled mirror for home automation that works in conjunction with HomeLink Connect®. The Company further continues to work with compatibility partners for HomeLink® applications in other markets, like China. The unique attributes of the China market allow for potential different use cases of these products and offer the potential for additional growth opportunities for the HomeLink® brand and products. In 2017, the Company began its first volume production shipments of HomeLink® units on vehicles for the China market.

In 2016, the Company announced a partnership with TransCore to provide automobile manufacturers with a vehicle-integrated tolling solution that enables motorists to drive on nearly all U.S. toll roads without a traditional toll tag on the windshield. Currently more than 75 percent of new car registrations are in states with toll roads with over 50 million drivers accessing these roads each year. The interior mirror is the optimal location for a vehicle-integrated toll transponder and it eliminates the need to affix multiple toll tags to the windshield and helps automakers seamlessly integrate toll collection into the car. Since the Integrated Toll Module® or ITM® enables travel across almost all United States toll roads, and others in North America, motorists would no longer need multiple toll tags for different regions of the country or to manage multiple toll accounts. The Company's vehicle-integrated solution simplifies and expedites local, regional, and national travel. ITM® provides transportation agencies with an interoperability solution without costly infrastructure changes to the thousands of miles of toll lanes throughout North America. The Company believes that this product could potentially represent another growth opportunity over the next several years.

The Company previously announced its first OEM award of ITM® with Audi. Currently, the Company is shipping ITM® on 11 Audi platforms, which are: the A4, A5, A6, A7, A8, Q5, Q5 Sportback, Q7, Q8, e-tron, and the e-tron Sportback. The Company expects further ITM® nameplate launches with Audi throughout the remainder of 2024. The Company is also shipping ITM® to a second OEM customer, Mercedes, on the EQS model. In 2020, the Company was honored with an Automotive News PACE Award for its ITM® product, which recognizes automotive suppliers for superior innovation, technological advancement, and business performance.

Further, the Company has previously announced an embedded biometric solution for vehicles that leverages iris scanning technology to create a secure environment in the vehicle. There are many use cases for authentication, which range from vehicle security to start functionality to personalization of mirrors, music, seat location and temperature, to the ability to control transactions not only for the ITM® system, but also the ride sharing car of the future. The Company believes iris recognition is among the most secure forms of biometric identification, with a false acceptance rate as low as one in 10 million, far superior to facial, voice, and other current biometric systems. The Company's future plans include integrating biometric authentication with HomeLink® and HomeLink Connect®. The biometric system will allow HomeLink® to provide added security and convenience for multiple drivers by activating the unique home automation presets of different authorized users. The Company announced in 2018 that it completed an exclusive licensing agreement, in the ordinary course of business, with Fingerprint Cards AB to deploy its ActiveIRIS® iris-scanning biometric technology in automotive applications.

In 2020, the Company announced a partnership, in the ordinary course of business, with PayByCar™, to pursue compatibility between the Company's Integrated Toll Module® and PayByCar's innovative payment solution that allows drivers to use their smartphones and toll transponder to fuel up at certain gas stations without using cash or a credit card. Compatibility between these two technologies can help to grow each company's respective consumer base, while introducing new users to the benefits of the transactional vehicle.

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In 2021, the Company announced a partnership, in the ordinary course of business, with Simplenight to provide drivers and vehicle occupants with access to enhanced mobile capability for booking personalized entertainment and lifestyle experiences in addition to everyday purchases. Simplenight delivers a customizable and robust platform that enables brands to globally offer real-time book-ability across multiple categories such as dining, accommodations, attractions, events, gas, parking, shopping and more. The platform is unique in that it is designed to seamlessly integrate into automaker infotainment and navigation systems, as well as mobile applications and voice assistants. Simplenight can be integrated into the Company's current and future connected vehicle technologies, including HomeLink®, which, again, is the automotive industry’s leading car-to-home automation system. HomeLink® consists of vehicle-integrated buttons that can be programmed to operate a myriad of home automation devices. Integration of Simplenight into the Company's HomeLink Connect® app is underway and will allow users to program their HomeLink® buttons and control cloud-based devices from their vehicles.

Dimmable Devices

The Company previously announced that it is providing variably dimmable windows for the Boeing 787 Dreamliner series of aircraft. The Company continues to work with other aircraft manufacturers that have an interest in this technology regarding potential additional programs. In 2019, the Company announced that its latest generation of dimmable aircraft windows will be offered as optional content on the new Boeing 777X. In 2019, the first production shipments of variably dimmable windows were made to Boeing for the 777X program. As also previously announced, Airbus is now offering, as optional content, the Company's dimmable aircraft windows on its aircraft, with production having begun in 2021.

Medical

In 2020, the Company unveiled an innovative lighting technology for medical applications that was co-developed with Mayo Clinic. This new lighting concept represents the collaboration of a global, high-technology electronics company with a world leader in health care. The Company's new intelligent lighting system combines ambient room lighting with camera-controlled, adaptive task lighting to optimize illumination for surgical and patient-care environments. The system was developed over an 18 month period of collaboration between Company engineers and Mayo Clinic surgeons, scientists, and operating room staff. The teams researched, designed, and rapidly iterated multiple prototypes in order to develop unique features intended to address major gaps in current surgical lighting solutions. In 2024, the Company continues to further develop and work on the intelligent medical lighting system in order to assess system performance and work toward obtaining any necessary approvals.

On November 2, 2023, in the ordinary course of business, the Company acquired certain technology assets from eSight Corporation for approximately $18.9 million in cash, the assumption of a $9.4 million promissory note given in exchange for the 20% equity the Company previously held, as well as an earn out provision over a ten year period. The technology acquired from eSight provides the most advanced and versatile low-vision smart glasses available for those with visual impairments and is compatible with more than 20 eye conditions including Macular Degeneration, Diabetic Retinopathy, and Stargardt disease.

OTHER

Automotive revenues represent approximately 97% - 99% of the Company's total revenue, consisting of interior and exterior electrochromic automatic-dimming rearview mirrors and automotive electronics.

The Company continues to experience pricing pressure from automotive customers and competitors, in addition to raw material cost increases, labor cost increases, and logistics costs, which will continue to cause downward pressure on its sales and profit margins. The Company works continuously to offset these supply chain issues and inflationary pressures with engineering and purchasing cost reductions, productivity improvements, increases in unit sales volume, and negotiations with customers to reduce the impact of the inflationary pressures, but there is no assurance the Company will be able to do so in the future.

Because the Company sells its products throughout the world, and automotive manufacturing is highly dependent on economic conditions, the Company can be affected by uncertain economic conditions that
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can reduce demand for its products, including the current inflationary environment. The Company has been likewise affected by industry-wide parts shortages and global supply constraints and labor shortages.

The Company believes that its patents and trade secrets provide it with a competitive advantage in dimmable devices, electronics, and other features that it offers for the automotive, aerospace, and medical industry. Claims of patent infringement can be costly and time-consuming to address. To that end, the Company obtains intellectual property rights in the ordinary course of business to strengthen its intellectual property portfolio and to minimize the risk of infringement.

The Company does not have any significant off-balance sheet arrangements or commitments that have not been recorded in its consolidated financial statements.

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OUTLOOK

The Company’s current forecasts for light vehicle production for the third quarter of 2024, and full years 2024 and 2025, are based on the mid-July 2024 S&P Global Mobility forecast for light vehicle production in North America, Europe, Japan/Korea, and China. Third quarter of 2024, and calendar years 2024 and 2025, forecasted light vehicle production volumes are shown below:

Light Vehicle Production (per S&P Global Mobility mid-July light vehicle production forecast)
(in Millions)
RegionQ3 2024Q3 2023% ChangeCalendar Year 2025Calendar Year 2024Calendar Year 20232025 vs 2024
% Change		2024 vs 2023
% Change
North America3.85 3.94 (2)%15.94 15.77 15.68 1 %1 %
Europe3.72 3.94 (6)%17.26 17.14 17.97 1 %(5)%
Japan and Korea3.07 3.13 (2)%12.05 12.12 12.80 (1)%(5)%
China7.09 7.56 (6)%30.62 29.06 29.04 5 %— %
Total Light Vehicle Production17.73 18.57 (5)%75.87 74.09 75.49 2 %(2)%

Based on the aforementioned light vehicle production forecast and the actual results for the first six months of 2024, the Company previously updated certain guidance for calendar year 2024 as shown below.
•Revenue is expected to be between $2.40 and $2.50 billion
•Gross Margin is expected to be between 34% and 34.5%
•Operating Expenses are expected to be approximately $295 to $305 million
•Estimated Annual Tax Rate, which assumes no changes to the statutory rate, is expected to be between 15% and 16%
•Capital Expenditures are expected to be between $175 and $200 million
•Depreciation and Amortization is expected to be between $95 and $100 million

Due to ongoing volatility in customer orders and vehicle production volumes, the Ukraine-Russia war, Israel-Hamas war, labor shortages, and overall economic uncertainty, the Company believes that revenue remains difficult to forecast for the remainder of the year and beyond. Ongoing uncertainties remain, including: light vehicle production levels; impacts of already in place and potential additional future tariffs; impacts of regulation changes; automotive plant shutdowns; vehicle sales rates in Europe, Asia and North America; OEM strategies and cost pressures; customer inventory management and the impact of potential automotive customer (including their Tier 1 suppliers) and supplier bankruptcies; etc., all of which are disrupting and could further disrupt shipments to these customers and make forecasting difficult.

In accordance with the previously announced share repurchase plan, the Company will consider the appropriateness of continuing to repurchase additional shares of common stock in the future in support of the capital allocation strategy, but share repurchases will vary from time to time and will take into account macroeconomic events, market trends, and other factors the Company deems appropriate (including the market price of the stock, anti-dilutive effect of repurchases, and available cash). As of June 30, 2024, the Company has 13.2 million shares remaining available for repurchase under the previously announced share repurchase plan.
Additionally, based on the Company’s current forecasts for light vehicle production for calendar year 2025, the Company expects calendar year 2025 revenue of approximately $2.6 to $2.7 billion. As noted above, continuing uncertainties make forecasting difficult.         
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CRITICAL ACCOUNTING POLICIES:
The preparation of the Company’s consolidated condensed financial statements contained in this report, which have been prepared in accordance with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, management evaluates these estimates. Estimates are based on historical experience and/or on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that may not be readily apparent from other sources. Historically, actual results have not been materially different from the Company’s estimates. However, actual results may differ from these estimates under different assumptions or conditions.
The Company has identified critical accounting policies used in determining estimates and assumptions in the amounts reported in its Management’s Discussion and Analysis of Financial Condition and Results of Operations in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Item 3.    Quantitative And Qualitative Disclosures About Market Risk.

The Company is subject to market risk exposures of varying correlations and volatilities, including foreign exchange rate risk and interest rate risk. Fluctuating interest rates could negatively impact the Company's financial performance due to realized losses on the sale of fixed income investments and/or recognized losses due to an impairment adjustment on investment securities, as well as the impact on demand for light vehicles. For the quarter ended June 30, 2024, any material changes in risk factors that were disclosed in the Company's report on Form 10-K for the year ended December 31, 2023 are set forth herein.
The Company has some assets, liabilities, and operations outside the United States, including euro-denominated and Chinese Yuan Renminbi accounts, which currently are not significant overall to the Company as a whole. Because the Company sells its automotive mirrors throughout the world, and automotive manufacturing is highly dependent on general economic conditions and the global supply chain, the Company has been and will continue to be affected by uncertain economic conditions in North American and foreign markets, including inflation, that have reduced, and could continue to reduce, demand for its products.
Item 4.    Controls And Procedures.

Evaluation of Disclosure Controls and Procedures.

Under the supervision of, and with the participation of management, the Company's Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of June 30, 2024, and have concluded that as of that date, the Company's disclosure controls and procedures are effective.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company's internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the quarter ended June 30, 2024 that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
SAFE HARBOR STATEMENT:

This Quarterly Report contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking statements. Forward-looking statements give the Company’s current expectations or forecasts of future events. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “hope,” “intend,” "likely", “may,” “opinion,” “optimistic,” “plan,” “poised,” “predict,” “project,” “should,” “strategy,” “target,” “will,” "work to," and variations of such words and similar expressions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company’s control, and could cause the Company’s results to differ materially from those described. These risks and uncertainties include, without limitation: changes in general industry or regional
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market conditions, including the impact of inflation; changes in consumer and customer preferences for our products (such as cameras replacing mirrors and/or autonomous driving); our ability to be awarded new business; continued uncertainty in pricing negotiations with customers and suppliers; loss of business from increased competition; changes in strategic relationships; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules (including the impact of customer employee strikes); changes in product mix; raw material and other supply shortages; labor shortages, supply chain constraints and disruptions; our dependence on information systems; higher raw material, fuel, energy and other costs; unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration and/or ability to maximize the value of any new or acquired technologies and businesses; changes in regulatory conditions; warranty and recall claims and other litigation and customer reactions thereto; possible adverse results of pending or future litigation or infringement claims; changes in tax laws; import and export duty and tariff rates in or with the countries with which we conduct business; negative impact of any governmental investigations and associated litigation, including securities litigation relating to the conduct of our business; and force majeure events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made.

The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the NASDAQ Global Select Market. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties identified under the heading “Risk Factors” in the Company’s latest Form 10-K and Form 10-Q filed with the SEC, which risks and uncertainties include supply chain constraints that have affected, are affecting, and will continue to affect, general economic and industry conditions, customers, suppliers, and the regulatory environment in which the Company operates. Includes content supplied by S&P Global Mobility Light Vehicle Production Forecast of July 17, 2024 (http://www.gentex.com/forecast-disclaimer).


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PART II—OTHER INFORMATION

Item 1A. Risk Factors.
Information regarding risk factors appears in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part I – Item 2 of this Form 10-Q and in Part I – Item 1A – Risk Factors of the Company’s report on Form 10-K for the fiscal year ended December 31, 2023. There have been no material changes to the risk factors previously disclosed in the Company’s report on Form 10-K for the year ended December 31, 2023, except to the extent described in Part I – Item 2 and Item 3 of this Form 10-Q, and otherwise herein.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

(c)    Issuer Purchase of Equity Securities

The Company has a previously announced share repurchase plan under which the Board of Directors has authorized the repurchase of shares of the Company's common stock, which remains a part of the broader publicly disclosed capital allocation strategy. During the first six months of 2024, the Company repurchased 2.6 million shares under the share repurchase plan. As previously disclosed, the Company will consider the appropriateness of continuing to repurchase additional shares of common stock in the future in support of the capital allocation strategy, but share repurchases will vary from time to time and will take into account macroeconomic events, market trends, and other factors the Company deems appropriate (including the market price of the stock, anti-dilutive effect of repurchases, and available cash).

After the Company repurchased 2,603,570 shares during the first six months of 2024, the Company has 13.2 million shares remaining under the plan as of June 30, 2024.

The following is a summary of share repurchase activity during each month of the six month period ended June 30, 2024:
Issuer Purchase of Equity Securities
Period
Total Number of Shares Purchased

Weighted
Average Price Paid Per Share
Total Number of Shares Purchased As Part of a Publicly Announced Plan or ProgramMaximum Number of Shares That May Yet Be Purchased Under the Plan or Program
January 202490,006 33.81 90,006 15,761,173 
February 2024510,247 35.31 510,247 15,250,926 
March 2024600,650 36.59 600,650 14,650,276 
1st Quarter 2024 Total1,200,903 35.84 1,200,903 
April 202460,087 34.80 60,087 14,590,189
May 2024661,221 34.72 661,221 13,928,968
June 2024681,359 34.12 681,359 13,247,609
2nd Quarter 2024 Total1,402,667 1,402,667 
2024 Total2,603,570 2,603,570 13,247,609 

As of June 30, 2024, the Company has repurchased 158,752,119 shares at a total cost of $2,838,023,276 under its share repurchase plan or as otherwise previously disclosed.


Item 6.    Exhibits.
See Exhibit Index on Page 38


SIGNATURES
36

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
GENTEX CORPORATION
Date:
August 2, 2024
/s/ Steven R. Downing
Steven R. Downing
President and Chief Executive Officer
(Principal Executive Officer) on behalf of Gentex Corporation
Date:
August 2, 2024
/s/ Kevin C. Nash
Kevin C. Nash
Vice President, Finance, Chief Financial Officer and Treasurer
(Principal Financial Officer and Principal Accounting Officer) on behalf of Gentex Corporation

37

EXHIBIT INDEX
 
Exhibit No.
Description
31.1
31.2
32
101.INS
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH
Inline XBRL Taxonomy Extension Schema
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase



38

EXHIBIT 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER OF GENTEX CORPORATION

I, Steven R. Downing, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Gentex Corporation;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures [as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)] and internal control over financial reporting [as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)] for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d) disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2024


/s/ Steven R. Downing
Steven R. Downing
President and Chief Executive Officer



EXHIBIT 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER OF GENTEX CORPORATION

I, Kevin C. Nash, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Gentex Corporation;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures [as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)] and internal control over financial reporting [as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)] for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d) disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2024

/s/ Kevin C. Nash
Kevin C. Nash
Vice President, Finance; Chief Financial Officer and Treasurer





EXHIBIT 32


CERTIFICATE PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002 (18-U.S.C. § 1350)



Each, Steven R. Downing, Chief Executive Officer of Gentex Corporation, and Kevin C. Nash, Chief Financial Officer of Gentex Corporation, certify to the best of their knowledge and belief, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350), that:

(1) The quarterly report on Form 10-Q for the quarterly period ended June 30, 2024, which this statement accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in this quarterly report on Form 10-Q of the quarterly period ended June 30, 2024, fairly presents, in all material respects, the financial condition and results of operations of Gentex Corporation.



Dated: August 2, 2024                        

GENTEX CORPORATION

By /s/ Steven R. Downing
Steven R. Downing
Its Chief Executive Officer


By /s/ Kevin C. Nash
Kevin C. Nash
Its Chief Financial Officer



v3.24.2.u1
Cover Page - shares
 6 Months Ended
Jun. 30, 2024
Jul. 26, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2024  
Document Transition Report false  
Entity File Number 0-10235  
Entity Registrant Name GENTEX CORPORATION  
Entity Incorporation, State or Country Code MI  
Entity Tax Identification Number 38-2030505  
Entity Address, Address Line One 600 N. Centennial  
Entity Address, City or Town Zeeland  
Entity Address, State or Province MI  
Entity Address, Postal Zip Code 49464  
City Area Code 616  
Local Phone Number 772-1800  
Title of 12(b) Security Common Stock, par value $0.06 per share  
Trading Symbol GNTX  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   230,217,225
Entity Central Index Key 0000355811  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
v3.24.2.u1
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Jun. 30, 2024
Dec. 31, 2023
 [1]
CURRENT ASSETS    
Cash and cash equivalents $ 260,241,951 $ 226,435,019
Short-term investments 15,534,338 14,356,476
Accounts receivable, net 306,565,681 321,809,868
Inventories, net 463,492,305 402,473,028
Prepaid expenses and other 38,049,578 32,663,762
Total current assets 1,083,883,853 997,738,153
PLANT AND EQUIPMENT—NET 679,486,957 652,877,672
OTHER ASSETS    
Goodwill 340,105,631 340,105,631
Long-term investments 308,051,778 299,080,876
Intangible assets, net 205,790,910 214,005,910
Deferred tax asset 52,335,039 41,113,759
Patents and other assets, net 68,630,894 66,515,551
Total other assets 974,914,252 960,821,727
Total assets 2,738,285,062 2,611,437,552
CURRENT LIABILITIES    
Accounts payable 206,001,837 184,398,820
Accrued liabilities 98,726,663 87,210,156
Total current liabilities 304,728,500 271,608,976
OTHER NON-CURRENT LIABILITIES 33,257,035 27,311,507
Total liabilities 337,985,535 298,920,483
SHAREHOLDERS’ INVESTMENT    
Common stock 13,813,772 13,887,326
Additional paid-in capital 1,000,014,813 968,245,875
Retained earnings 1,394,446,595 1,336,940,990
Accumulated other comprehensive loss (7,975,653) (6,557,122)
Total shareholders’ investment 2,400,299,527 2,312,517,069
Total liabilities and shareholders’ investment $ 2,738,285,062 $ 2,611,437,552
[1] The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
v3.24.2.u1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Statement [Abstract]        
NET SALES $ 572,925,778 $ 583,472,846 $ 1,163,150,989 $ 1,134,234,157
COST OF GOODS SOLD 384,362,469 390,389,807 772,350,073 766,413,887
Gross profit 188,563,309 193,083,039 390,800,916 367,820,270
OPERATING EXPENSES:        
Engineering, research and development 44,003,994 37,973,790 86,185,980 72,627,537
Selling, general & administrative 29,675,293 27,819,861 60,384,602 54,652,698
Total operating expenses 73,679,287 65,793,651 146,570,582 127,280,235
Income from operations 114,884,022 127,289,388 244,230,334 240,540,035
OTHER (LOSS) INCOME        
Investment (loss) income (12,393,771) 2,890,934 (15,762,295) 5,830,128
Other income (loss), net (1,159,272) (1,576,538) 510,867 (1,771,277)
Total other (loss) income (13,553,043) 1,314,396 (15,251,428) 4,058,851
INCOME BEFORE PROVISION FOR INCOME TAXES 101,330,979 128,603,784 228,978,906 244,598,886
PROVISION FOR INCOME TAXES 15,290,541 19,448,381 34,707,753 37,865,222
NET INCOME $ 86,040,438 $ 109,155,403 $ 194,271,153 $ 206,733,664
EARNINGS PER SHARE:        
Basic (in dollars per share) [1] $ 0.37 $ 0.47 $ 0.84 $ 0.88
Diluted (in dollars per share) [1] 0.37 0.47 0.84 0.88
Cash Dividends Declared per Share (in dollars per share) $ 0.120 $ 0.120 $ 0.240 $ 0.24
[1]
(1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards.
v3.24.2.u1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net income $ 86,040,438 $ 109,155,403 $ 194,271,153 $ 206,733,664
Other comprehensive (loss) income before tax:        
Foreign currency translation adjustments (509,541) (1,456,377) (1,459,754) (1,577,544)
Unrealized gains on debt securities, net 271 554,565 52,181 3,136,342
Other comprehensive (loss) income, before tax (509,270) (901,812) (1,407,573) 1,558,798
Income tax impact related to components of other comprehensive (loss) income 57 116,459 10,958 658,632
Other comprehensive (loss) income, net of tax (509,327) (1,018,271) (1,418,531) 900,166
Comprehensive income $ 85,531,111 $ 108,137,132 $ 192,852,622 $ 207,633,830
v3.24.2.u1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance $ 2,376,363,789 $ 2,123,255,648 $ 2,312,517,069 [1] $ 2,065,792,821
Issuance of common stock from stock plan transactions 3,408,322 7,926,787 $ 20,242,309 13,882,810
Repurchases of common stock (in shares)     (2,600,000)  
Repurchases of common stock (48,299,574) (25,103,491) $ (91,338,662) (53,566,122)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock 10,922,998 9,744,670 21,396,790 18,264,205
Dividends declared (27,627,119) (28,011,420) (55,370,601) (56,058,218)
Net income 86,040,438 109,155,403 194,271,153 206,733,664
Other comprehensive income (loss) (509,327) (1,018,271) (1,418,531) 900,166
Ending balance $ 2,400,299,527 $ 2,195,949,326 $ 2,400,299,527 $ 2,195,949,326
Common Stock        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance (in shares) 231,198,885 233,726,045 231,455,443 234,169,335
Beginning balance $ 13,871,933 $ 14,023,563 $ 13,887,326 $ 14,050,160
Issuance of common stock from stock plan transactions (in shares) 433,321 624,323 1,377,666 1,227,959
Issuance of common stock from stock plan transactions $ 25,999 $ 37,459 $ 82,660 $ 73,677
Repurchases of common stock (in shares) (1,402,667) (920,374) (2,603,570) (1,967,300)
Repurchases of common stock $ (84,160) $ (55,223) $ (156,214) $ (118,038)
Ending balance (in shares) 230,229,539 233,429,994 230,229,539 233,429,994
Ending balance $ 13,813,772 $ 14,005,799 $ 13,813,772 $ 14,005,799
Additional  Paid-In Capital        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance 991,053,652 928,284,892 968,245,875 917,499,323
Issuance of common stock from stock plan transactions 3,382,323 7,889,328 20,159,649 13,809,133
Repurchases of common stock (5,344,160) (3,258,126) (9,787,501) (6,911,897)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock 10,922,998 9,744,670 21,396,790 18,264,205
Ending balance 1,000,014,813 942,660,764 1,000,014,813 942,660,764
Retained  Earnings        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance 1,378,904,530 1,193,171,690 1,336,940,990 1,148,386,272
Repurchases of common stock (42,871,254) (21,790,142) (81,394,947) (46,536,187)
Dividends declared (27,627,119) (28,011,420) (55,370,601) (56,058,218)
Net income 86,040,438 109,155,403 194,271,153 206,733,664
Ending balance 1,394,446,595 1,252,525,531 1,394,446,595 1,252,525,531
Accumulated  Other Comprehensive Income (Loss)        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance (7,466,326) (12,224,497) (6,557,122) (14,142,934)
Other comprehensive income (loss) (509,327) (1,018,271) (1,418,531) 900,166
Ending balance $ (7,975,653) $ (13,242,768) $ (7,975,653) $ (13,242,768)
[1] The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
v3.24.2.u1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT (Parenthetical) - $ / shares
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]        
Dividends declared (in dollars per share) $ 0.120 $ 0.120 $ 0.240 $ 0.24
v3.24.2.u1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 194,271,153 $ 206,733,664
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 47,942,132 48,841,936
(Gain) on disposal of assets (1,261,727) (214,593)
Loss on disposal of assets 29,782 220,568
(Gain) on sale of investments and technology investment income (4,708,185) (2,747,586)
Loss on sale of investments and technology investment losses 29,061,771 4,201,138
Deferred tax expense (11,232,239) (5,122,661)
Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock 21,396,790 18,264,205
Change in operating assets and liabilities:    
Accounts receivable, net 15,244,187 (73,915,719)
Inventories (61,019,277) 14,334,001
Prepaid expenses and other (3,559,130) (2,722,437)
Accounts payable 17,318,424 22,410,431
Accrued liabilities, excluding dividends declared 15,643,764 11,483,186
Net cash provided by operating activities 259,127,445 241,766,133
Activity in investments:    
Sales proceeds 19,649,880 21,523,990
Maturities and calls 6,260,000 11,650,000
Purchases (60,360,047) (65,945,596)
Plant and equipment additions (63,634,852) (90,277,995)
Proceeds from sale of plant and equipment 127,000 140,610
Increase in other assets (4,120,881) (3,486,284)
Net cash used for investing activities (102,078,900) (126,395,275)
CASH FLOWS USED FOR FINANCING ACTIVITIES:    
Issuance of common stock from stock plan transactions 20,242,309 13,882,810
Cash dividends paid (55,517,709) (56,146,939)
Repurchases of common stock (87,966,213) (54,195,766)
Net cash used for financing activities (123,241,613) (96,459,895)
NET INCREASE IN CASH AND CASH EQUIVALENTS 33,806,932 18,910,963
CASH, CASH EQUIVALENTS, and RESTRICTED CASH, beginning of period 226,435,019 218,754,638
CASH, CASH EQUIVALENTS, and RESTRICTED CASH, end of period 260,241,951 237,665,601
Non-cash investing and financing activities:    
Change in property and equipment in accounts payable and accrued expenses and other current liabilities $ (912,142) $ 5,064,356
v3.24.2.u1
Basis of Presentation
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
The unaudited condensed consolidated financial statements included herein have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's 2023 annual report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only a normal and recurring nature, necessary to present fairly the financial position of the Company as of June 30, 2024, and the results of operations and cash flows for the interim periods presented.
v3.24.2.u1
Adoption of New Accounting Standards
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Adoption of New Accounting Standards Adoption of New Accounting Standards
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2023-07, Improvements to Reportable Segment Disclosures. This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. The Company will likely include additional disclosures when this ASU is adopted by the Company. The Company is currently evaluating the provisions of this ASU and expects to adopt the ASU for the year ending December 31, 2024.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. Under this ASU, public benefit entities must annually “(1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate).” This ASU is effective on a prospective basis for the Company in the fiscal year ending December 31, 2025. This ASU will result in additional disclosures being included in the consolidated financial statements once adopted.
v3.24.2.u1
Goodwill and Other Intangible Assets
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
Goodwill represents the cost of an acquisition in excess of the fair values assigned to identifiable net assets acquired. The Company recorded Goodwill of: $307.4 million as part of the HomeLink® acquisition in 2013; $3.7 million as part of the acquisition of Vaporsens, Inc. ("Vaporsens") in 2020; $0.2 million as part of the acquisition of Air-Craftglass Production BV ("Air-Craftglass") in 2020; $1.0 million as a part of the acquisition of Argil, Inc. ("Argil") in 2020; $2.0 million as part of the acquisition of Guardian Optical Technologies ("Guardian") in 2021; and $26.7 million as part of the acquisition of eSight in the fourth quarter of 2023. The carrying value of Goodwill as of both June 30, 2024 and December 31, 2023 was $340.1 million, as set forth in the table below:
Carrying Amount
Balance as of December 31, 2023$340,105,631 
Acquisitions— 
Divestitures— 
Impairments— 
Other— 
Balance as of June 30, 2024$340,105,631 

In addition to annual impairment testing, which is performed as of the first day of the fourth quarter, the Company continuously monitors for events and circumstances that could negatively impact the key assumptions in determining fair value of goodwill or other intangible assets thus resulting in the need for interim impairment testing, including long-term revenue growth projections, profitability, discount rates, recent market valuations from transactions by comparable companies, volatility in the Company's market capitalization, and general industry, market and macroeconomic conditions. No such events or circumstances that might negatively impact the key assumptions were observed in the second quarter of 2024 and, as such, nothing indicated the need for interim impairment testing.

The Company also acquired In-Process Research & Development ("In-Process R & D") as part of the acquisitions of: Vaporsens; Air-Craftglass; Argil; and Guardian, each of which has been previously disclosed.

The patents and intangible assets and related change in carrying values are set forth in the tables below:

As of June 30, 2024:
Other Intangible AssetsGrossAccumulated AmortizationNetAssumed Useful Life
Gentex Patents$39,013,180 $(27,602,158)$11,411,022 Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks
$52,000,000 $— $52,000,000 Indefinite
HomeLink® Technology
180,000,000 (161,250,000)18,750,000 12 years
Existing Customer Platforms43,000,000 (43,000,000)— 10 years
Exclusive Licensing Agreement96,000,000 — 96,000,000 Indefinite
eSight Technology12,000,000 (666,667)11,333,333 12 years
eSight Trade Names and Trademarks870,000 (48,333)821,667 12 years
Vaporsens In-Process R&D11,000,000 — 11,000,000 Indefinite
Argil In-Process R&D6,278,132 — 6,278,132 Indefinite
Air-Craftglass In-Process R&D1,507,778 — 1,507,778 Indefinite
Guardian Trade Names1,300,000 — 1,300,000 Indefinite
Guardian In-Process R&D6,800,000 — 6,800,000 Indefinite
Total Other Intangible Assets$410,755,910 $(204,965,000)$205,790,910 
Total Patents & Other Intangible Assets$449,769,090 $(232,567,158)$217,201,932 
As of December 31, 2023:
Other Intangible Assets
Gross
Accumulated Amortization
Net
Assumed Useful Life
Gentex Patents
$39,199,107 $(27,769,803)$11,429,304 Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks
$52,000,000 $— $52,000,000 Indefinite
HomeLink® Technology
180,000,000 (153,750,000)26,250,000 12 years
Existing Customer Platforms43,000,000 (43,000,000)— 10 years
Exclusive Licensing Agreement
96,000,000 — 96,000,000 Indefinite
eSight Technology12,000,000 — 12,000,000 12 years
eSight Trade Names and Trademarks870,000 — 870,000 12 years
Vaporsens In-Process R&D11,000,000 — 11,000,000 Indefinite
Argil In-Process R&D6,278,132 — 6,278,132 Indefinite
Air-Craftglass In-Process R&D1,507,778 — 1,507,778 Indefinite
Guardian Trade Names1,300,000 — 1,300,000 Indefinite
Guardian In-Process R&D6,800,000 — 6,800,000 Indefinite
Total Other Intangible Assets$410,755,910 $(196,750,000)$214,005,910 
Total Patents & Other Intangible Assets$449,955,017 $(224,519,803)$225,435,214 

Amortization expense on patents and intangible assets was approximately $4.4 million and $8.7 million during the three and six months ended June 30, 2024, respectively, compared to approximately $5.2 million and $10.5 million for the same periods ended June 30, 2023, respectively.

Excluding the impact of any future acquisitions, the Company estimates amortization expense for the year ending December 31, 2024 to be approximately $18 million, for the year ending December 31, 2025 to be approximately $15 million, and for each of the years ending December 31, 2026, December 31, 2027, and December 31, 2028 to be approximately $3 million.
v3.24.2.u1
Investments
 6 Months Ended
Jun. 30, 2024
Investments [Abstract]  
Investments Investments
Available for sale securities
The Company follows the provisions of Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, and for its non-financial assets and liabilities subject to fair value measurements. ASC 820 provides a framework for measuring the fair value of assets and liabilities. This framework is intended to provide increased consistency in how fair value determinations are made under various existing accounting standards that permit, or in some cases, require estimates of fair-market value. This standard also expanded financial statement disclosure requirements with respect to a company’s use of fair-value measurements, including the effect of such measurements on earnings. The cost of securities sold is based on the specific identification method.
The Company determines the fair value of its government securities, asset-backed securities, municipal bonds, and corporate bonds by utilizing monthly valuation statements that are provided by its broker. The broker determines the investment valuation by utilizing the bid price in the market and also refers to third party sources to validate valuations, and as such are classified as Level 2 assets.
The Company's certificates of deposit are classified as available for sale and are considered as Level 1 assets. These investments are carried at cost, which approximates fair value.
On October 4, 2023, the Company entered into a Stock Purchase Agreement to acquire up to 3,137,500 shares of VOXX International Corporation ("VOXX") Class A Common Stock. The Company agreed to purchase the shares in two tranches: (1) on October 6, 2023, the Company purchased 1,568,750 shares of Class A Common Stock at a price of $10 per share, and (2) on January 5, 2024, the Company purchased 1,568,750 shares of Class A Common Stock at a price of $10 per share. The VOXX shares held by the Company are publicly traded and have a readily determinable fair market value and are considered Level 1 assets. As of June 30, 2024, the Company holds a total of 3,311,308 shares of VOXX. The investment is accounted for in accordance with ASC 321, Investments - Equity Securities, with changes in fair value recorded in Investment income, net in consolidated statements of income. During the three and six months ended June 30, 2024, the Company recorded $16.6 million and $23.8 million, respectively, of mark to market adjustments in investment income.

Technology Investments

The Company also periodically makes strategic investments in the non-marketable debt or equity securities of non-consolidated third parties ("Technology Investments"). Such Technology Investments totaled approximately $146.2 million as of June 30, 2024, of which $142.7 million and $3.5 million are recorded in long-term investments and short-term investments, respectively, on the consolidated balance sheet, and $128.0 million as of December 31, 2023, of which $124.6 million and $3.4 million are recorded in long-term investments and short-term investments, respectively, on the consolidated balance sheet. Depending on the form of investment, and the degree of influence the Company has over the investee, the Company primarily accounts for the Technology Investments in accordance with ASC 321, Investments- Equity Securities or ASC 323 – Investments – Equity Method and Joint Venture. The Company accounts for equity securities in non-controlled affiliates through which the Company exercises significant influence but do not have control over the investee under the equity method, with the Company’s share of the earnings or losses of non-controlled affiliates recognized within Other (loss) income, net in the Company's consolidated statement of income. All other Technology Investments that the Company holds are primarily accounted for under the measurement alternative of ASC 321. Under the measurement alternative, the carrying value is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer.

Assets or liabilities that have recurring fair value measurements are shown below as of June 30, 2024 and December 31, 2023:
As of June 30, 2024:
Fair Value Measurements at Reporting Date Using
Total as of
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Observable
Inputs
Significant
Unobservable
Inputs
Description
June 30, 2024(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$260,241,951 $260,241,951 $— $— 
Short-Term Investments:
Certificate of Deposit995,838 995,838 — — 
Government Securities4,591,123 — 4,591,123 — 
Municipal Bonds5,079,264 — 5,079,264 — 
Other1,401,088 1,401,088 — — 
Long-Term Investments:
Asset Backed Securities40,725,036 — 40,725,036 — 
Corporate Bonds62,832,820 — 62,832,820 — 
Government Securities8,380,081 — 8,380,081 — 
Municipal Bonds43,932,270 — 43,932,270 — 
Common Stock10,463,734 10,463,734 — — 
Total$438,643,205 $273,102,611 $165,540,594 $— 
As of December 31, 2023:
Fair Value Measurements at Reporting Date Using
Total as of
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Observable
Inputs
Significant
Unobservable
Inputs
Description
December 31, 2023(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$226,435,019 $226,435,019 $— $— 
Short-Term Investments:
Certificate of Deposit994,013 994,013 — — 
Corporate Bonds1,943,886 — 1,943,886 — 
Government Securities4,759,507 — 4,759,507 — 
Municipal Bonds1,726,658 — 1,726,658 — 
Other1,465,388 1,465,388 — — 
Long-Term Investments:
Asset-backed Securities27,146,504 — 27,146,504 — 
Certificate of Deposit748,358 748,358 — — 
Corporate Bonds65,404,340 — 65,404,340 — 
Governmental Securities6,227,129 — 6,227,129 — 
Municipal Bonds56,336,921 — 56,336,921 
Common Stock18,610,519 18,610,519 — — 
Total$411,798,242 $248,253,297 $163,544,945 $— 

The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of June 30, 2024 and December 31, 2023:

As of June 30, 2024:
Unrealized
Cost
Gains
Losses
Market Value
Short-Term Investments:
Certificate of Deposit$1,000,000 $— $(4,162)$995,838 
Government Securities4,608,148 — (17,025)4,591,123 
Municipal Bonds5,137,053 — (57,789)5,079,264 
Other1,401,088 — — 1,401,088 
Long-Term Investments:
Asset Backed Securities40,635,021 343,922 (253,907)40,725,036 
Corporate Bonds63,561,430 203,037 (931,647)62,832,820 
Government Securities8,434,018 17,187 (71,124)8,380,081 
Municipal Bonds45,668,584 216,797 (1,953,111)43,932,270 
Total$170,445,342 $780,943 $(3,288,765)$167,937,520 
As of December 31, 2023:    
Unrealized
CostGainsLossesMarket Value
Short-Term Investments:
Certificate of Deposit$1,000,000 $— $(5,987)$994,013 
Corporate Bonds1,976,195 — (32,309)1,943,886 
Government Securities4,754,495 21,141 (16,129)4,759,507 
Municipal Bonds1,749,038 — (22,380)1,726,658 
Other1,465,388 — — 1,465,388 
Long-Term Investments:
Asset-backed Securities26,923,803 331,847 (109,146)27,146,504 
Certificate of Deposit750,000 (1,642)748,358 
Corporate Bonds66,214,398 748,471 (1,558,529)65,404,340 
Government Securities6,217,774 10,675 (1,320)6,227,129 
Municipal Bonds58,261,615 811,128 (2,735,822)56,336,921 
Common Stock17,324,886 1,328,446 (42,813)18,610,519 
Total$186,637,592 $3,251,708 $(4,526,077)$185,363,223 

Unrealized losses on available-for-sale securities as of June 30, 2024, are as follows:
Aggregate Unrealized LossesAggregate Fair Value of Investments
Loss duration of less than one year$455,438 $58,239,483 
Loss duration of greater than one year2,833,327 62,929,099 
       Total
$3,288,765 $121,168,582 

Unrealized losses on available-for-sale securities as of December 31, 2023, are as follows:
Aggregate Unrealized Losses
Aggregate Fair Value of Investments
Loss duration of less than one year$126,074 $13,449,592 
Loss duration of greater than one year4,400,003 76,966,258 
       Total
$4,526,077 $90,415,850 

Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The guidance modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. The Company utilized the guidance provided by ASC 326 to determine whether any of the available-for-sale debt securities held by the Company were impaired. No investments were considered to be impaired during the periods presented. The Company has the intention and current ability to hold its debt investments until any amortized cost basis has been recovered.

Fixed income securities as of June 30, 2024 have contractual maturities as follows:
Due within one year
$10,666,225 
Due between one and five years
89,477,474 
Due over five years
66,392,732 
$166,536,431 
v3.24.2.u1
Inventories, net
 6 Months Ended
Jun. 30, 2024
Inventory Disclosure [Abstract]  
Inventories, net Inventories, net
Inventories consisted of the following at the respective balance sheet dates:
June 30, 2024December 31, 2023
Raw materials
$322,616,747 $283,126,566 
Work-in-process
52,272,636 46,343,955 
Finished goods
88,602,922 73,002,507 
Total Inventory
$463,492,305 $402,473,028 
v3.24.2.u1
Earnings Per Share
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The Company has unvested share-based payment awards with a right to receive non-forfeitable dividends, which are considered participating securities under ASC 260, Earnings Per Share. The Company allocates earnings to participating securities and computes earnings per share using the two-class method. Under the two-class method, net income per share is computed by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, net income is allocated to both common shares and participating securities based on their respective weighted average shares outstanding for the period. For a period of net loss, net loss is not allocated to participating securities.

The following table sets forth the computation of basic and diluted net income per common share under the two-class method for the three and six months ended June 30, 2024 and June 30, 2023:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Basic Earnings Per Share
Net Income$86,040,438 $109,155,403 $194,271,153 $206,733,664 
Less: Dividends and undistributed earnings allocated to participating securities1,202,737 1,616,981 2,782,172 3,095,900 
Net Income available to common shareholders$84,837,701 $107,538,422 $191,488,981 $203,637,764 
Basic weighted average shares outstanding227,377,169 230,005,782 227,490,367 230,135,955 
Net Income per share - Basic$0.37 $0.47 $0.84 $0.88 
Diluted Earnings Per Share
Allocation of Net Income used in basic computation$84,837,701 $107,538,422 $191,488,981 $203,637,764 
Reallocation of undistributed earnings1,578 1,147 3,968 2,462 
Net Income available to common shareholders - Diluted$84,839,279 $107,539,569 $191,492,949 $203,640,226 
Number of shares used in basic computation227,377,169 230,005,782 227,490,367 230,135,955 
Additional weighted average dilutive common stock equivalents431,760 222,568 454,753 255,153 
Diluted weighted average shares outstanding227,808,929 230,228,350 227,945,120 230,391,108 
Net Income per share - Diluted$0.37 $0.47 $0.84 $0.88 
Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive435,981 2,355,346 422,639 1,549,824 
v3.24.2.u1
Stock-Based Compensation Plans
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Plans Stock-Based Compensation Plans
As of June 30, 2024, the Company had two equity incentive plans, which include the Gentex Corporation 2019 Omnibus Incentive Plan ("2019 Omnibus Plan"), and an employee stock purchase plan. Those plans and any prior material amendments thereto have previously been approved by shareholders.
The 2019 Omnibus Plan provides for the potential awards to: i) employees; and ii) non-employee directors of the Company or its subsidiaries, which potential awards may be stock options (both incentive stock options and non-qualified stock options), appreciation rights, restricted stock awards and restricted stock units, performance share awards and performance units, and other awards that are stock-based, cash-based or a combination of both. The 2019 Omnibus Plan replaced the Company's Employee Stock Option Plan, Second Restricted Stock Plan, and Amended and Restated Non-Employee Director Stock Option Plan (the "Prior Plans"), which were also approved by shareholders. Any existing awards previously granted under the Prior Plans remain outstanding in accordance with their terms and are governed by the Prior Plans as applicable.
Readers should refer to Note 5 of the consolidated financial statements in the Company's Annual Report on Form 10-K for the calendar year ended December 31, 2023, for additional information related to the Prior Plans.
The Company recognized total compensation expense for share-based payments of $10,964,419 and $21,451,680 for the three and six months ended June 30, 2024, respectively. The Company recognized compensation expense for share-based payments of $9,744,670 and $18,264,205 for the three and six months ended June 30, 2023, respectively. A portion of the compensation cost for share based payment awards is capitalized as part of inventory.
2019 Omnibus Incentive Plan

The purpose of the 2019 Omnibus Plan is to attract and retain employees, officers, and directors of the Company and its subsidiaries and to motivate and provide such persons incentives and rewards for performance. Pursuant to the terms of the 2019 Omnibus Plan, each type of award counts against the available shares based on a predetermined conversion rate (shown in the table below). As of June 30, 2024, 10,767,342 share awards have been made under the Plan, resulting in 28,493,236 shares granted of the 45,000,000 total shares available to be issued under the Plan. The shares issued are presented net of shares from canceled/expired options and shares.

Shares GrantedConversion RateTotal Shares Under 2019 Omnibus Plan
Non-Qualified Stock Options4,974,566 1.004,974,566 
Restricted Stock4,784,639 4.0619,425,634 
Performance Shares1,008,137 4.064,093,036 
Total10,767,342 28,493,236 
Employee Stock Options
Under the 2019 Omnibus Plan and the Employee Stock Option Plan, the option exercise price equals the stock’s market price on the date of grant. The options vest after one to five years and expire after five to ten years. As of June 30, 2024, there was $6,433,486 of unearned compensation cost associated with stock options granted under the 2019 Omnibus Incentive Plan and the Employee Stock Option Plan, which is expected to be recognized over the remaining vesting periods.
The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the indicated periods:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Dividend Yield (1)
1.62 %1.75 %1.63 %1.76 %
Expected volatility (2)
28.00 %28.97 %28.15 %29.01 %
Risk-free interest rate (3)
4.33 %4.13 %4.27 %3.87 %
Expected term of options (years) (4)
4.144.154.144.15
Weighted-avg. grant date fair value$8.49$7.38$8.78$7.11
1.Represents the Company’s estimated cash dividend yield over the expected term of option grant.
2.Amount is determined based on analysis of historical price volatility of the Company’s common stock. The expected volatility is based on the daily percentage change in the price of the stock over a period equal to the expected term of the option grant.
3.Represents the U.S. Treasury yield over the expected term of the option grant.
4.Represents the period of time that options granted are expected to be outstanding. Based on analysis of historical option exercise activity, the Company has determined that all employee groups exhibit similar exercise and post-vesting termination behavior.


Restricted Shares
Restricted shares awarded under the 2019 Omnibus Plan and the Second Restricted Stock Plan entitle the shareholder to all rights of common stock ownership, except that the shares may not be sold, transferred, pledged, exchanged or otherwise disposed of during the restriction period. The restriction period is determined by the Compensation Committee, appointed by the Board of Directors, but may not exceed ten years under the terms of such plans. As of June 30, 2024, the Company had unearned stock-based compensation of $51,380,007 associated with the restricted stock grants issued under the 2019 Omnibus Plan and the Second Restricted Stock Plan. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable restriction periods. Compensation expense from restricted stock grants in the three and six months ended June 30, 2024 was $6,883,839 and $13,571,180, respectively. Compensation expense from restricted stock grants in the three and six months ended June 30, 2023 was $5,862,755 and $11,808,809, respectively.

Performance Shares

Performance shares awarded under the 2019 Omnibus Plan are considered performance condition awards as attainment is based on the Company's performance relative to pre-established metrics. The fair value of such performance share awards was determined using the Company's average closing stock price on the twenty days preceding the date of grant. The expected attainment of the metrics for these awards is then analyzed each reporting period, and the related expense is adjusted based on expected attainment, if the then expected attainment differs from previous expectations. The cumulative effect on current and prior periods of a change in expected attainment is recognized in the period of change.

As of June 30, 2024, the Company had unearned stock-based compensation of $18,244,290 associated with these performance share grants. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable performance periods. Compensation expense related to these performance share grants in the three and six months ended June 30, 2024 was $2,023,635 and $3,796,264, respectively. Compensation expense related to these performance share grants in the three and six months ended June 30, 2023 was $1,635,022 and $2,137,228, respectively.

As part of its objective of attracting and retaining management to fulfill the Company's strategic goals, the Compensation Committee recommended and the Board approved on February 16, 2023, a retention grant of performance share awards ("PSAs"). In addition to the retention of management, the PSAs have been granted to further align management goals with those of the Company's shareholders. For that reason, the PSAs have been granted with performance criteria and will be based upon achievement of the Company's relative total shareholder return ("TSR") over a four year period (2023-2026), against a predetermined peer group. The grant date fair value of PSAs with TSR targets was determined using a Monte Carlo simulation. Compensation expense related to these retention grants in the three and six months ended June 30, 2024 was $445,793 and $888,639, respectively. Compensation expense related to these retention grants in the three and six months ended June 30, 2023 was $516,493 and $641,218, respectively.

Employee Stock Purchase Plan

Prior to July 1, 2022, the Company had in place an employee stock purchase plan covering 2,000,000 shares of common stock. Under that plan, the Company sold shares at 85% of the stock’s market price at date of purchase. Under ASC 718, Compensation - Stock Compensation, the 15% discounted value was recognized as compensation expense. As of June 30, 2024, the Company has issued 1,624,122 shares under this prior plan.

In May 2022, the 2022 Gentex Corporation Employee Stock Purchase Plan covering 2,000,000 shares of common stock was approved by shareholders replacing the above referenced prior plan effective July 1, 2022. Under the plan, the Company sells shares at 85% of the stock's market price at date of purchase. Under ASC 718, the 15% discounted value is recognized as compensation expense. As of June 30, 2024, the Company has issued 362,488 shares under this plan.
v3.24.2.u1
Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Comprehensive Income (Loss) Comprehensive Income (Loss)
Comprehensive income (loss) reflects the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. For the Company, comprehensive income represents net income adjusted for unrealized gains and losses on certain debt investments and foreign currency translation adjustments.

The following table presents the net changes in the Company's accumulated other comprehensive loss by component (all amounts shown are net of tax):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Foreign currency translation adjustments:
Balance at beginning of period$(5,484,932)$(4,153,406)$(4,534,719)$(4,032,239)
Other Comprehensive loss before reclassifications
(509,541)(1,456,377)(1,459,754)(1,577,544)
Net current-period change(509,541)(1,456,377)(1,459,754)(1,577,544)
Balance at end of period
(5,994,473)(5,609,783)(5,994,473)(5,609,783)
Unrealized (losses) gains on available-for-sale debt securities:
Balance at beginning of period
(1,981,394)(8,071,091)(2,022,403)(10,110,695)
Other Comprehensive (loss) income before reclassifications
(281,297)547,342 (829,754)825,060 
Amounts reclassified from accumulated other comprehensive income
281,511 (109,236)870,977 1,652,650 
Net current-period change
214 438,106 41,223 2,477,710 
Balance at end of period
(1,981,180)(7,632,985)(1,981,180)(7,632,985)
Accumulated other comprehensive loss, end of period
$(7,975,653)$(13,242,768)$(7,975,653)$(13,242,768)
The following table presents details of reclassifications out of accumulated other comprehensive loss for the three and six months ended June 30, 2024 and 2023:

Details about Accumulated Other Comprehensive Loss ComponentsAmounts Reclassified from Other Comprehensive LossAffected Line item in the Consolidated Statements of Income
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Unrealized gains (losses) on available-for-sale debt securities
Realized gain (loss) on sale of securities$(356,343)$138,274 $(1,102,503)$(2,091,962)Investment income
Provision for income taxes74,832 (29,038)231,526 439,312 Provision for income taxes
Total net reclassifications for the period$(281,511)$109,236 $(870,977)$(1,652,650)
v3.24.2.u1
Debt and Financing Arrangements
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Debt and Financing Arrangements Debt and Financing Arrangements
On October 15, 2018, the Company entered into a credit agreement with PNC as the administrative agent and sole lender, which has now been amended and restated as discussed below.

On February 21, 2023, as previously disclosed, the Company entered into an amended and restated credit agreement ("Credit Agreement") that provides for, among other things, a three-year unsecured revolving credit facility with a borrowing capacity of up to $250.0 million ("Revolver") that matures on February 21, 2026, replacing in its entirety the Company's above referenced prior $150.0 million revolving credit facility scheduled to mature on October 15, 2023. Included in the Revolver is a $20.0 million sublimit for standby letters of credit and a $35.0 million sublimit for swingline loans, each subject to certain conditions. Funds are available under the Revolver for working capital, capital expenditures, and other lawful corporate purposes, including, but not limited to, acquisitions and common stock repurchases, subject in each case to compliance with certain financial covenants, as defined in the Credit Agreement. As of June 30, 2024, there was no outstanding balance on the Revolver.

As of June 30, 2024, the Company is in compliance with its covenants under the Credit Agreement.
v3.24.2.u1
Equity
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Equity Equity
The decrease in common stock during the six months ended June 30, 2024, was primarily due to the repurchases of 2.6 million shares, partially offset by the issuance of 1.4 million shares of the Company’s common stock, net of cancellations, under the Company’s stock-based compensation plans. The total net decrease was 1.2 million shares.

The Company recorded a cash dividend of $0.120 per share during the second quarter of 2024 as compared to a cash dividend of $0.120 per share during the second quarter of 2023. The second quarter 2024 dividend of $27.6 million was declared on May 29, 2024 and was paid on July 17, 2024.
v3.24.2.u1
Contingencies
 6 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Contingencies ContingenciesThe Company is periodically involved in legal proceedings, legal actions and claims arising in the normal course of business, including proceedings relating to product liability, intellectual property, safety and health, employment, regulatory, and other matters. Such matters are subject to many uncertainties and outcomes are not predictable. The Company does not believe, however, that at the current time any of these matters constitute material pending legal proceedings that will have a material adverse effect on the financial position or future results of operations or cash flows of the Company.
v3.24.2.u1
Segment Reporting
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company's automotive segment develops and manufactures digital vision and connected car products and electronics, including: automatic-dimming rearview mirrors with and without electronic features; non-auto dimming rearview mirrors with and without electronic features; and other electronics. The Company also develops and manufactures variably dimming windows and laminate products for the aerospace industry and fire protection products for the commercial construction industry. In 2020, the Company acquired Vaporsens, which specializes in nanofiber chemical sensing. In 2023, the Company acquired certain technology assets from eSight, which provides advanced and versatile low-vision smart glasses for those with visual impairments and is compatible with more than 20 eye conditions including Macular Degeneration, Diabetic Retinopathy, and Stargardt disease. These four non-automotive segments are combined into the "Other" segment as shown below.
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Revenue:
Automotive Products$559,290,095 $574,109,748 $1,136,892,291 $1,111,532,736 
Other13,635,683 9,363,098 26,258,698 22,701,421 
Total$572,925,778 $583,472,846 $1,163,150,989 $1,134,234,157 
Income (Loss) from operations:
Automotive Products$114,652,174 $128,729,058 $244,198,314 $240,168,856 
Other231,848 (1,439,670)32,020 371,179 
Total$114,884,022 $127,289,388 $244,230,334 $240,540,035 
v3.24.2.u1
Income Taxes
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesThe effective tax rate was 15.2% in the six months ended June 30, 2024, compared to an effective tax rate of 15.5% for the same period in 2023. Generally, effective tax rates for these periods differ from statutory federal income tax rates, due to provisions for state and local income taxes, permanent tax differences, the foreign-derived intangible income tax deduction, and research and development tax credits.
v3.24.2.u1
Revenue
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The following table shows the Company’s Automotive revenue and Other Products revenue disaggregated by geographical location for Automotive Products for the three and six month periods ended June 30, 2024 and June 30, 2023, respectively:
Three Months Ended June 30,Six Months Ended June 30,
Revenue
2024202320242023
Automotive Products
U.S.
$164,948,637 $177,940,475 $330,089,259 $348,722,079 
Japan82,261,79384,178,567171,266,421 156,334,551 
Germany71,510,830 73,990,846 147,205,718 154,570,310 
Korea31,457,450 33,920,149 85,152,562 57,398,619 
Mexico47,955,922 36,803,254 85,577,085 71,090,798 
Other161,155,463 167,276,457 317,601,246 323,416,379 
Total Automotive Products$559,290,095 $574,109,748 $1,136,892,291 $1,111,532,736 
Other Products (U.S.)13,635,683 9,363,098 $26,258,698 $22,701,421 
Total Revenue$572,925,778 $583,472,846 $1,163,150,989 $1,134,234,157 

Revenue by geographic area may fluctuate based on many factors, including: exposure to local economic, political, and labor conditions; global supply chain constraints; unexpected changes in laws, regulations, trade or monetary or fiscal policy, including interest rates, foreign currency exchange rates and changes in the rate of inflation in the U.S. and other foreign countries; labor strikes, armed conflicts and acts of terrorism and war; and tariffs, quotas, customs and other import or export restrictions and other trade barriers.
The following table disaggregates the Company’s Automotive revenue and Other revenue by major source for the three and six month periods ended June 30, 2024 and June 30, 2023:
Three Months Ended June 30,Six Months Ended June 30,
Revenue2024202320242023
Automotive Segment
Automotive Mirrors & Electronics
$530,558,700 $540,636,798 $1,080,743,130 $1,046,368,374 
HomeLink Modules*
28,731,395 33,472,950 56,149,161 65,164,362 
Total Automotive Products$559,290,095 $574,109,748 $1,136,892,291 $1,111,532,736 
Other Segment
Fire Protection Products7,353,664 6,018,930 14,189,702 15,320,083 
Aerospace Products6,286,593 3,344,168 12,057,394 7,381,338 
Medical Products(4,574)— $11,603 $— 
Total Other$13,635,683 $9,363,098 $26,258,698 $22,701,421 
*Excludes HomeLink revenue where HomeLink electronics are integrated into interior auto-dimming mirrors.
v3.24.2.u1
Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases Leases
The Company has operating leases for certain sales, manufacturing, and engineering offices, as well as other vehicles and equipment, which are included within "Plant and Equipment - Net" section of the condensed consolidated balance sheets. The leases have remaining lease terms of 1 year to 5 years. The weighted average remaining lease term for operating leases as of June 30, 2024 was 4 years, with a weighted average discount rate of 6.3%.

Future minimum lease payments for operating leases as of June 30, 2024 were as follows:
Year ending December 31,
2024 (excluding the six months ended June 30, 2024)$1,186,804 
20251,801,961 
20261,269,701 
2027937,622 
2028697,246 
Thereafter83,429 
Total future minimum lease payments5,976,763 
Less imputed interest(441,169)
Total$5,535,594 

Reported as of June 30, 2024
Accrued Liabilities$2,132,686 
Other Non-Current Liabilities3,402,908 
Total$5,535,594 
v3.24.2.u1
Acquisition
 6 Months Ended
Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Acquisition Acquisition
On November 2, 2023, the Company, in the ordinary course of business, acquired certain technology assets from eSight for approximately $18.9 million in cash, the assumption of a $9.4 million promissory note given in exchange for the 20% equity the Company previously held in the assets, as well as an earn out provision over a ten year period. The earn out provision consists of multiple potential payments based on the revenue over the next ten calendar years, with the total earn out not to exceed $70 million. The Company funded the acquisition with cash on hand. The technology acquired from eSight provides advanced and versatile low-vision smart glasses for those with visual impairments and is compatible with more than 20 eye conditions including Macular Degeneration, Diabetic Retinopathy, and Stargardt disease. These assets are classified within the Company's Other segment.

The Company will account for the acquisition under the provisions of FASB ASC Topic 805, Business Combinations. The Company is still in the process of verifying data and finalizing information related to the valuation and recording of identifiable intangible assets, net working capital, contingent liabilities, and the resulting effects on the amount of recorded goodwill. The Company expects to finalize these matters within the measurement period, which is currently expected to remain open through the third quarter of 2024. Less than $0.1 million of revenue of the business of eSight was included in the Company's consolidated statement of income and comprehensive income for the year to date June 30, 2024.

The following table summarizes the fair values of the assets acquired, and the liabilities assumed, as of the acquisition date of November 2, 2023:

Fair Value
Current Assets$441,228 
Personal Property75,000 
Right of Use Asset (Lease)116,562 
ESight Technology12,000,000 
Trade Names and Trademarks870,000 
Goodwill26,696,012 
Total Assets$40,198,802 
Lease Liability$116,562 
Contingent Earn Out Liability12,000,000 
Total Liabilities$12,116,562 
v3.24.2.u1
Adoption of New Accounting Standards (Policies)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Adoption of New Accounting Standards Adoption of New Accounting Standards
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2023-07, Improvements to Reportable Segment Disclosures. This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. The Company will likely include additional disclosures when this ASU is adopted by the Company. The Company is currently evaluating the provisions of this ASU and expects to adopt the ASU for the year ending December 31, 2024.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. Under this ASU, public benefit entities must annually “(1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate).” This ASU is effective on a prospective basis for the Company in the fiscal year ending December 31, 2025. This ASU will result in additional disclosures being included in the consolidated financial statements once adopted.
v3.24.2.u1
Goodwill and Other Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill The carrying value of Goodwill as of both June 30, 2024 and December 31, 2023 was $340.1 million, as set forth in the table below:
Carrying Amount
Balance as of December 31, 2023$340,105,631 
Acquisitions— 
Divestitures— 
Impairments— 
Other— 
Balance as of June 30, 2024$340,105,631 
Schedule of Intangible Assets
The patents and intangible assets and related change in carrying values are set forth in the tables below:

As of June 30, 2024:
Other Intangible AssetsGrossAccumulated AmortizationNetAssumed Useful Life
Gentex Patents$39,013,180 $(27,602,158)$11,411,022 Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks
$52,000,000 $— $52,000,000 Indefinite
HomeLink® Technology
180,000,000 (161,250,000)18,750,000 12 years
Existing Customer Platforms43,000,000 (43,000,000)— 10 years
Exclusive Licensing Agreement96,000,000 — 96,000,000 Indefinite
eSight Technology12,000,000 (666,667)11,333,333 12 years
eSight Trade Names and Trademarks870,000 (48,333)821,667 12 years
Vaporsens In-Process R&D11,000,000 — 11,000,000 Indefinite
Argil In-Process R&D6,278,132 — 6,278,132 Indefinite
Air-Craftglass In-Process R&D1,507,778 — 1,507,778 Indefinite
Guardian Trade Names1,300,000 — 1,300,000 Indefinite
Guardian In-Process R&D6,800,000 — 6,800,000 Indefinite
Total Other Intangible Assets$410,755,910 $(204,965,000)$205,790,910 
Total Patents & Other Intangible Assets$449,769,090 $(232,567,158)$217,201,932 
As of December 31, 2023:
Other Intangible Assets
Gross
Accumulated Amortization
Net
Assumed Useful Life
Gentex Patents
$39,199,107 $(27,769,803)$11,429,304 Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks
$52,000,000 $— $52,000,000 Indefinite
HomeLink® Technology
180,000,000 (153,750,000)26,250,000 12 years
Existing Customer Platforms43,000,000 (43,000,000)— 10 years
Exclusive Licensing Agreement
96,000,000 — 96,000,000 Indefinite
eSight Technology12,000,000 — 12,000,000 12 years
eSight Trade Names and Trademarks870,000 — 870,000 12 years
Vaporsens In-Process R&D11,000,000 — 11,000,000 Indefinite
Argil In-Process R&D6,278,132 — 6,278,132 Indefinite
Air-Craftglass In-Process R&D1,507,778 — 1,507,778 Indefinite
Guardian Trade Names1,300,000 — 1,300,000 Indefinite
Guardian In-Process R&D6,800,000 — 6,800,000 Indefinite
Total Other Intangible Assets$410,755,910 $(196,750,000)$214,005,910 
Total Patents & Other Intangible Assets$449,955,017 $(224,519,803)$225,435,214 
v3.24.2.u1
Investments (Tables)
 6 Months Ended
Jun. 30, 2024
Investments [Abstract]  
Schedule of Investment Securities Stated at Fair Value
As of June 30, 2024:
Fair Value Measurements at Reporting Date Using
Total as of
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Observable
Inputs
Significant
Unobservable
Inputs
Description
June 30, 2024(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$260,241,951 $260,241,951 $— $— 
Short-Term Investments:
Certificate of Deposit995,838 995,838 — — 
Government Securities4,591,123 — 4,591,123 — 
Municipal Bonds5,079,264 — 5,079,264 — 
Other1,401,088 1,401,088 — — 
Long-Term Investments:
Asset Backed Securities40,725,036 — 40,725,036 — 
Corporate Bonds62,832,820 — 62,832,820 — 
Government Securities8,380,081 — 8,380,081 — 
Municipal Bonds43,932,270 — 43,932,270 — 
Common Stock10,463,734 10,463,734 — — 
Total$438,643,205 $273,102,611 $165,540,594 $— 
As of December 31, 2023:
Fair Value Measurements at Reporting Date Using
Total as of
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Observable
Inputs
Significant
Unobservable
Inputs
Description
December 31, 2023(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$226,435,019 $226,435,019 $— $— 
Short-Term Investments:
Certificate of Deposit994,013 994,013 — — 
Corporate Bonds1,943,886 — 1,943,886 — 
Government Securities4,759,507 — 4,759,507 — 
Municipal Bonds1,726,658 — 1,726,658 — 
Other1,465,388 1,465,388 — — 
Long-Term Investments:
Asset-backed Securities27,146,504 — 27,146,504 — 
Certificate of Deposit748,358 748,358 — — 
Corporate Bonds65,404,340 — 65,404,340 — 
Governmental Securities6,227,129 — 6,227,129 — 
Municipal Bonds56,336,921 — 56,336,921 
Common Stock18,610,519 18,610,519 — — 
Total$411,798,242 $248,253,297 $163,544,945 $— 
Schedule of Amortized Cost, Unrealized Gains and Losses, and Market Value of Investment Securities
The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of June 30, 2024 and December 31, 2023:

As of June 30, 2024:
Unrealized
Cost
Gains
Losses
Market Value
Short-Term Investments:
Certificate of Deposit$1,000,000 $— $(4,162)$995,838 
Government Securities4,608,148 — (17,025)4,591,123 
Municipal Bonds5,137,053 — (57,789)5,079,264 
Other1,401,088 — — 1,401,088 
Long-Term Investments:
Asset Backed Securities40,635,021 343,922 (253,907)40,725,036 
Corporate Bonds63,561,430 203,037 (931,647)62,832,820 
Government Securities8,434,018 17,187 (71,124)8,380,081 
Municipal Bonds45,668,584 216,797 (1,953,111)43,932,270 
Total$170,445,342 $780,943 $(3,288,765)$167,937,520 
As of December 31, 2023:    
Unrealized
CostGainsLossesMarket Value
Short-Term Investments:
Certificate of Deposit$1,000,000 $— $(5,987)$994,013 
Corporate Bonds1,976,195 — (32,309)1,943,886 
Government Securities4,754,495 21,141 (16,129)4,759,507 
Municipal Bonds1,749,038 — (22,380)1,726,658 
Other1,465,388 — — 1,465,388 
Long-Term Investments:
Asset-backed Securities26,923,803 331,847 (109,146)27,146,504 
Certificate of Deposit750,000 (1,642)748,358 
Corporate Bonds66,214,398 748,471 (1,558,529)65,404,340 
Government Securities6,217,774 10,675 (1,320)6,227,129 
Municipal Bonds58,261,615 811,128 (2,735,822)56,336,921 
Common Stock17,324,886 1,328,446 (42,813)18,610,519 
Total$186,637,592 $3,251,708 $(4,526,077)$185,363,223 
Schedule of Unrealized Loss on available-for-sale securities
Unrealized losses on available-for-sale securities as of June 30, 2024, are as follows:
Aggregate Unrealized LossesAggregate Fair Value of Investments
Loss duration of less than one year$455,438 $58,239,483 
Loss duration of greater than one year2,833,327 62,929,099 
       Total
$3,288,765 $121,168,582 

Unrealized losses on available-for-sale securities as of December 31, 2023, are as follows:
Aggregate Unrealized Losses
Aggregate Fair Value of Investments
Loss duration of less than one year$126,074 $13,449,592 
Loss duration of greater than one year4,400,003 76,966,258 
       Total
$4,526,077 $90,415,850 
Schedule of Investments Classified by Contractual Maturity Date

Fixed income securities as of June 30, 2024 have contractual maturities as follows:
Due within one year
$10,666,225 
Due between one and five years
89,477,474 
Due over five years
66,392,732 
$166,536,431 
v3.24.2.u1
Inventories, net (Tables)
 6 Months Ended
Jun. 30, 2024
Inventory Disclosure [Abstract]  
Schedule of Inventories
Inventories consisted of the following at the respective balance sheet dates:
June 30, 2024December 31, 2023
Raw materials
$322,616,747 $283,126,566 
Work-in-process
52,272,636 46,343,955 
Finished goods
88,602,922 73,002,507 
Total Inventory
$463,492,305 $402,473,028 
v3.24.2.u1
Earnings Per Share (Tables)
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share Basic and Diluted
The following table sets forth the computation of basic and diluted net income per common share under the two-class method for the three and six months ended June 30, 2024 and June 30, 2023:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Basic Earnings Per Share
Net Income$86,040,438 $109,155,403 $194,271,153 $206,733,664 
Less: Dividends and undistributed earnings allocated to participating securities1,202,737 1,616,981 2,782,172 3,095,900 
Net Income available to common shareholders$84,837,701 $107,538,422 $191,488,981 $203,637,764 
Basic weighted average shares outstanding227,377,169 230,005,782 227,490,367 230,135,955 
Net Income per share - Basic$0.37 $0.47 $0.84 $0.88 
Diluted Earnings Per Share
Allocation of Net Income used in basic computation$84,837,701 $107,538,422 $191,488,981 $203,637,764 
Reallocation of undistributed earnings1,578 1,147 3,968 2,462 
Net Income available to common shareholders - Diluted$84,839,279 $107,539,569 $191,492,949 $203,640,226 
Number of shares used in basic computation227,377,169 230,005,782 227,490,367 230,135,955 
Additional weighted average dilutive common stock equivalents431,760 222,568 454,753 255,153 
Diluted weighted average shares outstanding227,808,929 230,228,350 227,945,120 230,391,108 
Net Income per share - Diluted$0.37 $0.47 $0.84 $0.88 
Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive435,981 2,355,346 422,639 1,549,824 
v3.24.2.u1
Stock-Based Compensation Plans (Tables)
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Shares Issued, Net of Shares from Canceled/Expired Options and Shares The shares issued are presented net of shares from canceled/expired options and shares.
Shares GrantedConversion RateTotal Shares Under 2019 Omnibus Plan
Non-Qualified Stock Options4,974,566 1.004,974,566 
Restricted Stock4,784,639 4.0619,425,634 
Performance Shares1,008,137 4.064,093,036 
Total10,767,342 28,493,236 
Schedule of Weighted-Average Assumptions For The Employee Stock Option Plan
The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the indicated periods:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Dividend Yield (1)
1.62 %1.75 %1.63 %1.76 %
Expected volatility (2)
28.00 %28.97 %28.15 %29.01 %
Risk-free interest rate (3)
4.33 %4.13 %4.27 %3.87 %
Expected term of options (years) (4)
4.144.154.144.15
Weighted-avg. grant date fair value$8.49$7.38$8.78$7.11
1.Represents the Company’s estimated cash dividend yield over the expected term of option grant.
2.Amount is determined based on analysis of historical price volatility of the Company’s common stock. The expected volatility is based on the daily percentage change in the price of the stock over a period equal to the expected term of the option grant.
3.Represents the U.S. Treasury yield over the expected term of the option grant.
4.Represents the period of time that options granted are expected to be outstanding. Based on analysis of historical option exercise activity, the Company has determined that all employee groups exhibit similar exercise and post-vesting termination behavior.
v3.24.2.u1
Comprehensive Income (Loss) (Tables)
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Schedule of AOCI
The following table presents the net changes in the Company's accumulated other comprehensive loss by component (all amounts shown are net of tax):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Foreign currency translation adjustments:
Balance at beginning of period$(5,484,932)$(4,153,406)$(4,534,719)$(4,032,239)
Other Comprehensive loss before reclassifications
(509,541)(1,456,377)(1,459,754)(1,577,544)
Net current-period change(509,541)(1,456,377)(1,459,754)(1,577,544)
Balance at end of period
(5,994,473)(5,609,783)(5,994,473)(5,609,783)
Unrealized (losses) gains on available-for-sale debt securities:
Balance at beginning of period
(1,981,394)(8,071,091)(2,022,403)(10,110,695)
Other Comprehensive (loss) income before reclassifications
(281,297)547,342 (829,754)825,060 
Amounts reclassified from accumulated other comprehensive income
281,511 (109,236)870,977 1,652,650 
Net current-period change
214 438,106 41,223 2,477,710 
Balance at end of period
(1,981,180)(7,632,985)(1,981,180)(7,632,985)
Accumulated other comprehensive loss, end of period
$(7,975,653)$(13,242,768)$(7,975,653)$(13,242,768)
Schedule of Reclassifications Out of Other Comprehensive Income
The following table presents details of reclassifications out of accumulated other comprehensive loss for the three and six months ended June 30, 2024 and 2023:

Details about Accumulated Other Comprehensive Loss ComponentsAmounts Reclassified from Other Comprehensive LossAffected Line item in the Consolidated Statements of Income
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Unrealized gains (losses) on available-for-sale debt securities
Realized gain (loss) on sale of securities$(356,343)$138,274 $(1,102,503)$(2,091,962)Investment income
Provision for income taxes74,832 (29,038)231,526 439,312 Provision for income taxes
Total net reclassifications for the period$(281,511)$109,236 $(870,977)$(1,652,650)
v3.24.2.u1
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Schedule of Automotive and Other Segment Reporting These four non-automotive segments are combined into the "Other" segment as shown below.
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Revenue:
Automotive Products$559,290,095 $574,109,748 $1,136,892,291 $1,111,532,736 
Other13,635,683 9,363,098 26,258,698 22,701,421 
Total$572,925,778 $583,472,846 $1,163,150,989 $1,134,234,157 
Income (Loss) from operations:
Automotive Products$114,652,174 $128,729,058 $244,198,314 $240,168,856 
Other231,848 (1,439,670)32,020 371,179 
Total$114,884,022 $127,289,388 $244,230,334 $240,540,035 
v3.24.2.u1
Revenue (Tables)
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table shows the Company’s Automotive revenue and Other Products revenue disaggregated by geographical location for Automotive Products for the three and six month periods ended June 30, 2024 and June 30, 2023, respectively:
Three Months Ended June 30,Six Months Ended June 30,
Revenue
2024202320242023
Automotive Products
U.S.
$164,948,637 $177,940,475 $330,089,259 $348,722,079 
Japan82,261,79384,178,567171,266,421 156,334,551 
Germany71,510,830 73,990,846 147,205,718 154,570,310 
Korea31,457,450 33,920,149 85,152,562 57,398,619 
Mexico47,955,922 36,803,254 85,577,085 71,090,798 
Other161,155,463 167,276,457 317,601,246 323,416,379 
Total Automotive Products$559,290,095 $574,109,748 $1,136,892,291 $1,111,532,736 
Other Products (U.S.)13,635,683 9,363,098 $26,258,698 $22,701,421 
Total Revenue$572,925,778 $583,472,846 $1,163,150,989 $1,134,234,157 
The following table disaggregates the Company’s Automotive revenue and Other revenue by major source for the three and six month periods ended June 30, 2024 and June 30, 2023:
Three Months Ended June 30,Six Months Ended June 30,
Revenue2024202320242023
Automotive Segment
Automotive Mirrors & Electronics
$530,558,700 $540,636,798 $1,080,743,130 $1,046,368,374 
HomeLink Modules*
28,731,395 33,472,950 56,149,161 65,164,362 
Total Automotive Products$559,290,095 $574,109,748 $1,136,892,291 $1,111,532,736 
Other Segment
Fire Protection Products7,353,664 6,018,930 14,189,702 15,320,083 
Aerospace Products6,286,593 3,344,168 12,057,394 7,381,338 
Medical Products(4,574)— $11,603 $— 
Total Other$13,635,683 $9,363,098 $26,258,698 $22,701,421 
*Excludes HomeLink revenue where HomeLink electronics are integrated into interior auto-dimming mirrors.
v3.24.2.u1
Leases (Tables)
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Schedule of Future Minimum Lease Payments
Future minimum lease payments for operating leases as of June 30, 2024 were as follows:
Year ending December 31,
2024 (excluding the six months ended June 30, 2024)$1,186,804 
20251,801,961 
20261,269,701 
2027937,622 
2028697,246 
Thereafter83,429 
Total future minimum lease payments5,976,763 
Less imputed interest(441,169)
Total$5,535,594 
Schedule of Lease Liabilities
Reported as of June 30, 2024
Accrued Liabilities$2,132,686 
Other Non-Current Liabilities3,402,908 
Total$5,535,594 
v3.24.2.u1
Acquisition (Tables)
 6 Months Ended
Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Schedule of Assets Acquired and Liabilities Assumed
The following table summarizes the fair values of the assets acquired, and the liabilities assumed, as of the acquisition date of November 2, 2023:

Fair Value
Current Assets$441,228 
Personal Property75,000 
Right of Use Asset (Lease)116,562 
ESight Technology12,000,000 
Trade Names and Trademarks870,000 
Goodwill26,696,012 
Total Assets$40,198,802 
Lease Liability$116,562 
Contingent Earn Out Liability12,000,000 
Total Liabilities$12,116,562 
v3.24.2.u1
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2021
Dec. 31, 2020
Nov. 02, 2023
Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]                  
Goodwill $ 340,105,631 $ 340,105,631 [1]   $ 340,105,631          
Acquisitions       0          
Amortization of intangible assets 4,400,000   $ 5,200,000 8,700,000 $ 10,500,000        
Total Patents & Other Intangible Assets                  
Finite-Lived Intangible Assets [Line Items]                  
Amortization expense, remainder of fiscal year 18,000,000     18,000,000          
Amortization expense, year 2025 15,000,000     15,000,000          
Amortization expense, year 2026 3,000,000     3,000,000          
Amortization expense, year 2027 3,000,000     3,000,000          
Amortization expense, year 2028 $ 3,000,000     $ 3,000,000          
HomeLink®                  
Finite-Lived Intangible Assets [Line Items]                  
Goodwill                 $ 307,400,000
Vaporsens                  
Finite-Lived Intangible Assets [Line Items]                  
Acquisitions             $ 3,700,000    
Air-CraftGlass                  
Finite-Lived Intangible Assets [Line Items]                  
Acquisitions             200,000    
Argil                  
Finite-Lived Intangible Assets [Line Items]                  
Acquisitions             $ 1,000,000    
Guardian                  
Finite-Lived Intangible Assets [Line Items]                  
Acquisitions           $ 2,000,000      
eSight                  
Finite-Lived Intangible Assets [Line Items]                  
Goodwill               $ 26,696,012  
Acquisitions   $ 26,700,000              
[1] The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
v3.24.2.u1
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details)
 6 Months Ended
Jun. 30, 2024
USD ($)
Goodwill [Roll Forward]  
Balance at beginning of period $ 340,105,631 [1]
Acquisitions 0
Divestitures 0
Impairments 0
Other 0
Balance at end of period $ 340,105,631
[1] The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
v3.24.2.u1
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
Jun. 30, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, net $ 205,790,910 $ 214,005,910 [1]
Trademarks and Trade Names | HomeLink®    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 52,000,000 52,000,000
Trademarks and Trade Names | Guardian    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 1,300,000 1,300,000
Exclusive Licensing Agreement    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 96,000,000 96,000,000
In Process Research and Development | Vaporsens    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 11,000,000 11,000,000
In Process Research and Development | Argil    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 6,278,132 6,278,132
In Process Research and Development | Air-CraftGlass    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 1,507,778 1,507,778
In Process Research and Development | Guardian    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 6,800,000 6,800,000
Gentex Patents    
Finite-Lived Intangible Assets [Line Items]    
Gross 39,013,180 39,199,107
Accumulated Amortization (27,602,158) (27,769,803)
Net 11,411,022 11,429,304
Total Other Intangible Assets    
Finite-Lived Intangible Assets [Line Items]    
Accumulated Amortization (204,965,000) (196,750,000)
Intangible assets, gross 410,755,910 410,755,910
Intangible assets, net 205,790,910 214,005,910
Technology | HomeLink®    
Finite-Lived Intangible Assets [Line Items]    
Gross 180,000,000 180,000,000
Accumulated Amortization (161,250,000) (153,750,000)
Net $ 18,750,000 $ 26,250,000
Assumed Useful Life 12 years 12 years
Technology | eSight    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 12,000,000 $ 12,000,000
Accumulated Amortization (666,667)  
Net $ 11,333,333 $ 12,000,000
Assumed Useful Life 12 years 12 years
Existing Customer Platforms    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 43,000,000 $ 43,000,000
Accumulated Amortization (43,000,000) (43,000,000)
Net $ 0 $ 0
Assumed Useful Life 10 years 10 years
Trademarks and Trade Names | eSight    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 870,000 $ 870,000
Accumulated Amortization (48,333)  
Net $ 821,667 $ 870,000
Assumed Useful Life 12 years 12 years
Total Patents & Other Intangible Assets    
Finite-Lived Intangible Assets [Line Items]    
Total Patents & Other Intangible Assets, Gross $ 449,769,090 $ 449,955,017
Total Patents & Other Intangible Assets, Accumulated Amortization (232,567,158) (224,519,803)
Total Patents & Other Intangible Assets, Net $ 217,201,932 $ 225,435,214
[1] The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
v3.24.2.u1
Investments - Narrative (Details)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
USD ($)
shares
Jun. 30, 2024
USD ($)
shares
Jan. 05, 2024
$ / shares
shares
Dec. 31, 2023
USD ($)
Oct. 06, 2023
$ / shares
shares
Oct. 04, 2023
tranche
shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Technology investments $ 146.2 $ 146.2   $ 128.0    
Long-term Investments            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Technology investments 142.7 142.7   124.6    
Short-Term Investments            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Technology investments $ 3.5 $ 3.5   $ 3.4    
VOXX International Corporation            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Shares of investment held (in shares) | shares 3,311,308 3,311,308        
Mark to market adjustment in investment income $ 16.6 $ 23.8        
VOXX International Corporation            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Number of tranches | tranche           2
VOXX International Corporation | Common Class A            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Number of shares acquired (in shares) | shares     1,568,750   1,568,750 3,137,500
Shares purchased, price per share (in dollars per share) | $ / shares     $ 10   $ 10  
v3.24.2.u1
Investments - Schedule of Assets or Liabilities, Recurring Fair Value Measurements (Details) - USD ($)
Jun. 30, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash & Cash Equivalents $ 260,241,951 $ 226,435,019
Total 438,643,205 411,798,242
Short-Term Investments | Certificate of Deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 995,838 994,013
Short-Term Investments | Corporate Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments   1,943,886
Short-Term Investments | Government Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 4,591,123 4,759,507
Short-Term Investments | Municipal Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 5,079,264 1,726,658
Short-Term Investments | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 1,401,088 1,465,388
Long-Term Investments | Certificate of Deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments   748,358
Long-Term Investments | Asset Backed Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 40,725,036 27,146,504
Long-Term Investments | Corporate Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 62,832,820 65,404,340
Long-Term Investments | Government Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 8,380,081 6,227,129
Long-Term Investments | Municipal Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 43,932,270 56,336,921
Long-Term Investments | Common Stock    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 10,463,734 18,610,519
(Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash & Cash Equivalents 260,241,951 226,435,019
Total 273,102,611 248,253,297
(Level 1) | Short-Term Investments | Certificate of Deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 995,838 994,013
(Level 1) | Short-Term Investments | Corporate Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments   0
(Level 1) | Short-Term Investments | Government Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 1) | Short-Term Investments | Municipal Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 1) | Short-Term Investments | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 1,401,088 1,465,388
(Level 1) | Long-Term Investments | Certificate of Deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments   748,358
(Level 1) | Long-Term Investments | Asset Backed Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 1) | Long-Term Investments | Corporate Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 1) | Long-Term Investments | Government Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 1) | Long-Term Investments | Municipal Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 1) | Long-Term Investments | Common Stock    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 10,463,734 18,610,519
(Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash & Cash Equivalents 0 0
Total 165,540,594 163,544,945
(Level 2) | Short-Term Investments | Certificate of Deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 2) | Short-Term Investments | Corporate Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments   1,943,886
(Level 2) | Short-Term Investments | Government Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 4,591,123 4,759,507
(Level 2) | Short-Term Investments | Municipal Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 5,079,264 1,726,658
(Level 2) | Short-Term Investments | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 2) | Long-Term Investments | Certificate of Deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments   0
(Level 2) | Long-Term Investments | Asset Backed Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 40,725,036 27,146,504
(Level 2) | Long-Term Investments | Corporate Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 62,832,820 65,404,340
(Level 2) | Long-Term Investments | Government Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 8,380,081 6,227,129
(Level 2) | Long-Term Investments | Municipal Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 43,932,270 56,336,921
(Level 2) | Long-Term Investments | Common Stock    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash & Cash Equivalents 0 0
Total 0 0
(Level 3) | Short-Term Investments | Certificate of Deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 3) | Short-Term Investments | Corporate Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments   0
(Level 3) | Short-Term Investments | Government Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 3) | Short-Term Investments | Municipal Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 3) | Short-Term Investments | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 3) | Long-Term Investments | Certificate of Deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments   0
(Level 3) | Long-Term Investments | Asset Backed Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 3) | Long-Term Investments | Corporate Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 3) | Long-Term Investments | Government Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0 0
(Level 3) | Long-Term Investments | Municipal Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 0
(Level 3) | Long-Term Investments | Common Stock    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments $ 0 $ 0
v3.24.2.u1
Investments - Schedule of Amortized Cost, Unrealized Gains and Losses, and Market Value of Investment Securities (Details) - USD ($)
Jun. 30, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Cost $ 170,445,342 $ 186,637,592
Unrealized Gains 780,943 3,251,708
Unrealized Losses (3,288,765) (4,526,077)
Market Value 167,937,520 185,363,223
Short-Term Investments | Certificate of Deposit    
Debt Securities, Available-for-sale [Line Items]    
Cost 1,000,000 1,000,000
Unrealized Gains 0 0
Unrealized Losses (4,162) (5,987)
Market Value 995,838 994,013
Short-Term Investments | Corporate Bonds    
Debt Securities, Available-for-sale [Line Items]    
Cost   1,976,195
Unrealized Gains   0
Unrealized Losses   (32,309)
Market Value   1,943,886
Short-Term Investments | Government Securities    
Debt Securities, Available-for-sale [Line Items]    
Cost 4,608,148 4,754,495
Unrealized Gains 0 21,141
Unrealized Losses (17,025) (16,129)
Market Value 4,591,123 4,759,507
Short-Term Investments | Municipal Bonds    
Debt Securities, Available-for-sale [Line Items]    
Cost 5,137,053 1,749,038
Unrealized Gains 0 0
Unrealized Losses (57,789) (22,380)
Market Value 5,079,264 1,726,658
Short-Term Investments | Other    
Debt Securities, Available-for-sale [Line Items]    
Cost 1,401,088 1,465,388
Unrealized Gains 0 0
Unrealized Losses 0 0
Market Value 1,401,088 1,465,388
Long-Term Investments | Certificate of Deposit    
Debt Securities, Available-for-sale [Line Items]    
Cost   750,000
Unrealized Gains  
Unrealized Losses   (1,642)
Market Value   748,358
Long-Term Investments | Asset Backed Securities    
Debt Securities, Available-for-sale [Line Items]    
Cost 40,635,021 26,923,803
Unrealized Gains 343,922 331,847
Unrealized Losses (253,907) (109,146)
Market Value 40,725,036 27,146,504
Long-Term Investments | Corporate Bonds    
Debt Securities, Available-for-sale [Line Items]    
Cost 63,561,430 66,214,398
Unrealized Gains 203,037 748,471
Unrealized Losses (931,647) (1,558,529)
Market Value 62,832,820 65,404,340
Long-Term Investments | Government Securities    
Debt Securities, Available-for-sale [Line Items]    
Cost 8,434,018 6,217,774
Unrealized Gains 17,187 10,675
Unrealized Losses (71,124) (1,320)
Market Value 8,380,081 6,227,129
Long-Term Investments | Municipal Bonds    
Debt Securities, Available-for-sale [Line Items]    
Cost 45,668,584 58,261,615
Unrealized Gains 216,797 811,128
Unrealized Losses (1,953,111) (2,735,822)
Market Value $ 43,932,270 56,336,921
Long-Term Investments | Common Stock    
Debt Securities, Available-for-sale [Line Items]    
Cost   17,324,886
Unrealized Gains   1,328,446
Unrealized Losses   (42,813)
Market Value   $ 18,610,519
v3.24.2.u1
Investments - Schedule of Unrealized Loss on available-for-sale securities (Details) - USD ($)
Jun. 30, 2024
Dec. 31, 2023
Aggregate Unrealized Losses    
Loss duration of less than one year $ 455,438 $ 126,074
Loss duration of greater than one year 2,833,327 4,400,003
Total 3,288,765 4,526,077
Aggregate Fair Value of Investments    
Loss duration of less than one year 58,239,483 13,449,592
Loss duration of greater than one year 62,929,099 76,966,258
Total $ 121,168,582 $ 90,415,850
v3.24.2.u1
Investments - Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($)
Jun. 30, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Total $ 167,937,520 $ 185,363,223
Fixed Income Securities    
Debt Securities, Available-for-sale [Line Items]    
Due within one year 10,666,225  
Due between one and five years 89,477,474  
Due over five years 66,392,732  
Total $ 166,536,431  
v3.24.2.u1
Inventories, net (Details) - USD ($)
Jun. 30, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 322,616,747 $ 283,126,566
Work-in-process 52,272,636 46,343,955
Finished goods 88,602,922 73,002,507
Total Inventory $ 463,492,305 $ 402,473,028 [1]
[1] The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
v3.24.2.u1
Earnings Per Share (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Basic Earnings Per Share        
Net income $ 86,040,438 $ 109,155,403 $ 194,271,153 $ 206,733,664
Less: Dividends and undistributed earnings allocated to participating securities 1,202,737 1,616,981 2,782,172 3,095,900
Net Income available to common shareholders $ 84,837,701 $ 107,538,422 $ 191,488,981 $ 203,637,764
Basic weighted average shares outstanding (in shares) 227,377,169 230,005,782 227,490,367 230,135,955
Net income per share - Basic (in dollars per share) [1] $ 0.37 $ 0.47 $ 0.84 $ 0.88
Diluted Earnings Per Share        
Allocation of Net Income used in basic computation $ 84,837,701 $ 107,538,422 $ 191,488,981 $ 203,637,764
Reallocation of undistributed earnings 1,578 1,147 3,968 2,462
Net Income available to common shareholders - Diluted $ 84,839,279 $ 107,539,569 $ 191,492,949 $ 203,640,226
Number of shares used in basic computation (in shares) 227,377,169 230,005,782 227,490,367 230,135,955
Additional weighted average dilutive common stock equivalents (in shares) 431,760 222,568 454,753 255,153
Diluted weighted average shares outstanding (in shares) 227,808,929 230,228,350 227,945,120 230,391,108
Net Income per share - Diluted (in dollars per share) [1] $ 0.37 $ 0.47 $ 0.84 $ 0.88
Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive (in shares) 435,981 2,355,346 422,639 1,549,824
[1]
(1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards.
v3.24.2.u1
Stock-Based Compensation Plans - Narrative (Details)
 1 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2022
shares
May 31, 2022
shares
Jun. 30, 2024
USD ($)
plan
shares
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
plan
shares
Jun. 30, 2023
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Compensation expense for share-based payments | $     $ 10,964,419 $ 9,744,670 $ 21,451,680 $ 18,264,205
Employee Stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares issued under the omnibus plan (in shares)         1,624,122  
Number of shares authorized (in shares) 2,000,000          
ESPP discount rate 85.00%          
ESPP discount rate recognized as compensation expense 15.00%          
Omnibus Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Total grants in period (in shares)         10,767,342  
Shares issued under the omnibus plan (in shares)         28,493,236  
Number of shares authorized (in shares)     45,000,000   45,000,000  
Employee Stock Option Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Unrecognized compensation cost | $     $ 6,433,486   $ 6,433,486  
Employee Stock Option Plan | Minimum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Option vesting period         1 year  
Option expiration period         5 years  
Employee Stock Option Plan | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Option vesting period         5 years  
Option expiration period         10 years  
Restricted Stock Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Unrecognized compensation cost | $     51,380,007   $ 51,380,007  
Restricted period, maximum         10 years  
Amortization expense | $     $ 6,883,839 5,862,755 $ 13,571,180 11,808,809
Gentex Corporation Employee Stock Purchase Plan | Employee Stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares issued under the omnibus plan (in shares)         362,488  
Number of shares authorized (in shares)   2,000,000        
ESPP discount rate   85.00%        
ESPP discount rate recognized as compensation expense   15.00%        
Equity Incentive Plans            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of plans | plan     2   2  
Performance Shares            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Compensation expense for share-based payments | $     $ 2,023,635 1,635,022 $ 3,796,264 2,137,228
Unrecognized compensation cost | $     18,244,290   $ 18,244,290  
Performance Shares | Omnibus Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares issued under the omnibus plan (in shares)         4,093,036  
Performance Share Awards            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Compensation expense for share-based payments | $     $ 445,793 $ 516,493 $ 888,639 $ 641,218
Option vesting period         4 years  
v3.24.2.u1
Stock-Based Compensation Plans - Schedule of Shares Issued Net of Shares Canceled/Expired (Details) - Omnibus Incentive Plan
 6 Months Ended
Jun. 30, 2024
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total grants in period (in shares) 10,767,342
Shares issued under the omnibus plan (in shares) 28,493,236
Non-Qualified Stock Options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares granted, options (in shares) 4,974,566
Conversion rate, options 1.00
Shares issued under the omnibus plan (in shares) 4,974,566
Restricted Stock  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares granted (in shares) 4,784,639
Conversion rate, shares 4.06
Shares issued under the omnibus plan (in shares) 19,425,634
Performance Shares  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares granted (in shares) 1,008,137
Conversion rate, shares 4.06
Shares issued under the omnibus plan (in shares) 4,093,036
v3.24.2.u1
Stock-Based Compensation Plans - Schedule of Weighted-Average Assumptions for the ESOP (Details) - $ / shares
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]        
Dividend yield 1.62% 1.75% 1.63% 1.76%
Expected volatility 28.00% 28.97% 28.15% 29.01%
Risk-free interest rate 4.33% 4.13% 4.27% 3.87%
Expected term of options (years) 4 years 1 month 20 days 4 years 1 month 24 days 4 years 1 month 20 days 4 years 1 month 24 days
Weighted average grant date fair value (in dollars per share) $ 8.49 $ 7.38 $ 8.78 $ 7.11
v3.24.2.u1
Comprehensive Income (Loss) - Schedule of AOCI (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance $ 2,376,363,789 $ 2,123,255,648 $ 2,312,517,069 [1] $ 2,065,792,821
Other comprehensive (loss) income, net of tax (509,327) (1,018,271) (1,418,531) 900,166
Ending balance 2,400,299,527 2,195,949,326 2,400,299,527 2,195,949,326
Accumulated Other Comprehensive Income        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance (7,466,326) (12,224,497) (6,557,122) (14,142,934)
Ending balance (7,975,653) (13,242,768) (7,975,653) (13,242,768)
Foreign currency translation adjustments:        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance (5,484,932) (4,153,406) (4,534,719) (4,032,239)
Other Comprehensive (loss) income before reclassifications (509,541) (1,456,377) (1,459,754) (1,577,544)
Other comprehensive (loss) income, net of tax (509,541) (1,456,377) (1,459,754) (1,577,544)
Ending balance (5,994,473) (5,609,783) (5,994,473) (5,609,783)
Unrealized (losses) gains on available-for-sale debt securities:        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance (1,981,394) (8,071,091) (2,022,403) (10,110,695)
Other Comprehensive (loss) income before reclassifications (281,297) 547,342 (829,754) 825,060
Amounts reclassified from accumulated other comprehensive income 281,511 (109,236) 870,977 1,652,650
Other comprehensive (loss) income, net of tax 214 438,106 41,223 2,477,710
Ending balance $ (1,981,180) $ (7,632,985) $ (1,981,180) $ (7,632,985)
[1] The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
v3.24.2.u1
Comprehensive Income (Loss) - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]        
Realized gain (loss) on sale of securities $ (1,159,272) $ (1,576,538) $ 510,867 $ (1,771,277)
Provision for income taxes (15,290,541) (19,448,381) (34,707,753) (37,865,222)
Total net reclassifications for the period 86,040,438 109,155,403 194,271,153 206,733,664
Amounts Reclassified from Other Comprehensive Loss | Unrealized (losses) gains on available-for-sale debt securities:        
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]        
Realized gain (loss) on sale of securities (356,343) 138,274 (1,102,503) (2,091,962)
Provision for income taxes 74,832 (29,038) 231,526 439,312
Total net reclassifications for the period $ (281,511) $ 109,236 $ (870,977) $ (1,652,650)
v3.24.2.u1
Debt and Financing Arrangements (Details) - USD ($)
Feb. 21, 2023
Jun. 30, 2024
Revolving Facility    
Debt Instrument [Line Items]    
Debt instrument, term 3 years  
Principal amount $ 250,000,000  
Additional borrowings available 150,000,000  
Long-term debt   $ 0
Letter of Credit    
Debt Instrument [Line Items]    
Additional borrowings available 20,000,000  
Swing Loans    
Debt Instrument [Line Items]    
Additional borrowings available $ 35,000,000  
v3.24.2.u1
Equity (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
May 29, 2024
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Equity [Abstract]          
Stock repurchased (in shares)       2.6  
Common stock issued under stock compensation plan (in shares)       1.4  
Net decrease in period (in shares)       1.2  
Dividends declared (in dollars per share)   $ 0.120 $ 0.120 $ 0.240 $ 0.24
Dividends $ 27.6        
v3.24.2.u1
Segment Reporting (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
segment
Jun. 30, 2023
USD ($)
Segment Reporting Information [Line Items]        
Revenue: $ 572,925,778 $ 583,472,846 $ 1,163,150,989 $ 1,134,234,157
Income (Loss) from operations: 114,884,022 127,289,388 $ 244,230,334 240,540,035
Other        
Segment Reporting Information [Line Items]        
Number of non-automotive combined segments | segment     4  
Revenue: 13,635,683 9,363,098 $ 26,258,698 22,701,421
Income (Loss) from operations: 231,848 (1,439,670) 32,020 371,179
Automotive Products        
Segment Reporting Information [Line Items]        
Revenue: 559,290,095 574,109,748 1,136,892,291 1,111,532,736
Income (Loss) from operations: $ 114,652,174 $ 128,729,058 $ 244,198,314 $ 240,168,856
v3.24.2.u1
Income Taxes (Details)
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Income Tax Disclosure [Abstract]    
Effective income tax rate 15.20% 15.50%
v3.24.2.u1
Revenue (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Disaggregation of Revenue [Line Items]        
Total Revenue $ 572,925,778 $ 583,472,846 $ 1,163,150,989 $ 1,134,234,157
Other Segment        
Disaggregation of Revenue [Line Items]        
Total Revenue 13,635,683 9,363,098 26,258,698 22,701,421
Automotive Products        
Disaggregation of Revenue [Line Items]        
Total Revenue 559,290,095 574,109,748 1,136,892,291 1,111,532,736
Automotive Products | Automotive Segment        
Disaggregation of Revenue [Line Items]        
Total Revenue 559,290,095 574,109,748 1,136,892,291 1,111,532,736
Automotive Products | U.S.        
Disaggregation of Revenue [Line Items]        
Total Revenue 164,948,637 177,940,475 330,089,259 348,722,079
Automotive Products | Japan        
Disaggregation of Revenue [Line Items]        
Total Revenue 82,261,793 84,178,567 171,266,421 156,334,551
Automotive Products | Germany        
Disaggregation of Revenue [Line Items]        
Total Revenue 71,510,830 73,990,846 147,205,718 154,570,310
Automotive Products | Korea        
Disaggregation of Revenue [Line Items]        
Total Revenue 31,457,450 33,920,149 85,152,562 57,398,619
Automotive Products | Mexico        
Disaggregation of Revenue [Line Items]        
Total Revenue 47,955,922 36,803,254 85,577,085 71,090,798
Automotive Products | Other        
Disaggregation of Revenue [Line Items]        
Total Revenue 161,155,463 167,276,457 317,601,246 323,416,379
Automotive Mirrors & Electronics | Automotive Segment        
Disaggregation of Revenue [Line Items]        
Total Revenue 530,558,700 540,636,798 1,080,743,130 1,046,368,374
HomeLink Modules | Automotive Segment        
Disaggregation of Revenue [Line Items]        
Total Revenue 28,731,395 33,472,950 56,149,161 65,164,362
Other Products | U.S.        
Disaggregation of Revenue [Line Items]        
Total Revenue 13,635,683 9,363,098 26,258,698 22,701,421
Fire Protection Products | Other Segment        
Disaggregation of Revenue [Line Items]        
Total Revenue 7,353,664 6,018,930 14,189,702 15,320,083
Aerospace Products | Other Segment        
Disaggregation of Revenue [Line Items]        
Total Revenue 6,286,593 3,344,168 12,057,394 7,381,338
Medical Products | Other Segment        
Disaggregation of Revenue [Line Items]        
Total Revenue $ (4,574) $ 0 $ 11,603 $ 0
v3.24.2.u1
Leases - Narrative (Details)
Jun. 30, 2024
Lessee, Lease, Description [Line Items]  
Weighted average remaining lease term 4 years
Weighted average discount rate 6.30%
Minimum  
Lessee, Lease, Description [Line Items]  
Remaining lease terms 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Remaining lease terms 5 years
v3.24.2.u1
Leases - Schedule of Future Minimum Lease Payments and Liabilities (Details)
Jun. 30, 2024
USD ($)
Leases [Abstract]  
2024 (excluding the six months ended June 30, 2024) $ 1,186,804
2025 1,801,961
2026 1,269,701
2027 937,622
2028 697,246
Thereafter 83,429
Total future minimum lease payments 5,976,763
Less imputed interest (441,169)
Total 5,535,594
Accrued Liabilities $ 2,132,686
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued liabilities
Other Non-Current Liabilities $ 3,402,908
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] OTHER NON-CURRENT LIABILITIES
v3.24.2.u1
Acquisition - Narrative (Details) - eSight Corporation - USD ($)
$ in Millions
 6 Months Ended
Nov. 02, 2023
Jun. 30, 2024
Business Acquisition [Line Items]    
Cash paid to acquire business $ 18.9  
Assumption of promissory note $ 9.4  
Equity interest percentage in acquiree previously held 20.00%  
Earn out provision period 10 years  
Total earn out, maximum potential payment $ 70.0  
Revenue from business included in statement of income and comprehensive income   $ 0.1
v3.24.2.u1
Acquisition - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($)
Jun. 30, 2024
Dec. 31, 2023
 [1]
Nov. 02, 2023
Business Acquisition [Line Items]      
Goodwill $ 340,105,631 $ 340,105,631  
eSight Corporation      
Business Acquisition [Line Items]      
Current Assets     $ 441,228
Personal Property     75,000
Right of Use Asset (Lease)     116,562
Goodwill     26,696,012
Total Assets     40,198,802
Lease Liability     116,562
Contingent Earn Out Liability     12,000,000
Total Liabilities     12,116,562
eSight Corporation | ESight Technology      
Business Acquisition [Line Items]      
Intangible assets     12,000,000
eSight Corporation | Trade Names and Trademarks      
Business Acquisition [Line Items]      
Intangible assets     $ 870,000
[1] The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
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