10-Q

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 March 31, 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
Michigan	49464
(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 class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.06 per share	GNTX	NASDAQ 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, April 26, 2024
Common Stock, $.06 Par Value	231,184,476

1

GENTEX CORPORATION AND SUBSIDIARIES

For the Three Months Ended March 31, 2024

FORM 10-Q

Index

Part I - Financial Information		Page
Item 1.	Unaudited Condensed Consolidated Financial Statements	3
	Unaudited Condensed Consolidated Balance Sheets	3
	Unaudited Condensed Consolidated Statements of Income	4
	Unaudited Condensed Consolidated Statements of Comprehensive Income	5
	Unaudited Condensed Consolidated Statements of Shareholders' Investment	6
	Unaudited Condensed Consolidated Statements of Cash Flows	7
	Notes to Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	32
Part II - Other Information
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 6.	Exhibits	34
	Signatures	34
	Exhibit Index	36

2

PART I —FINANCIAL INFORMATION

Item 1. Unaudited Condensed Consolidated Financial Statements.

GENTEX CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2024 and December 31, 2023

	March 31, 2024 (Unaudited)		December 31, 2023 (Note)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	249,004,534	$	226,435,019
Short-term investments	16,758,924		14,356,476
Accounts receivable, net	341,591,131		321,809,868
Inventories	436,537,244		402,473,028
Prepaid expenses and other	28,702,868		32,663,762
Total current assets	1,072,594,701		997,738,153
PLANT AND EQUIPMENT—NET	664,788,932		652,877,672
OTHER ASSETS
Goodwill	340,105,631		340,105,631
Long-term investments	311,028,408		299,080,876
Intangible assets, net	209,809,035		214,005,910
Deferred tax asset	44,741,075		41,113,759
Patents and other assets, net	70,146,788		66,515,551
Total other assets	975,830,937		960,821,727
Total assets	$	2,713,214,570	$	2,611,437,552
LIABILITIES AND SHAREHOLDERS’ INVESTMENT
CURRENT LIABILITIES
Accounts payable	$	191,736,616	$	184,398,820
Accrued liabilities	112,674,602		87,210,156
Total current liabilities	304,411,218		271,608,976
OTHER NON-CURRENT LIABILITIES	32,439,563		27,311,507
Total liabilities	336,850,781		298,920,483
SHAREHOLDERS’ INVESTMENT
Common stock	13,871,933		13,887,326
Additional paid-in capital	991,053,652		968,245,875
Retained earnings	1,378,904,530		1,336,940,990
Accumulated other comprehensive loss	(7,466,326)		(6,557,122)
Total shareholders’ investment	2,376,363,789		2,312,517,069
Total liabilities and shareholders’ investment	$	2,713,214,570	$	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 Months Ended March 31, 2024 and 2023

 

	Three Months Ended March 31,
	2024		2023
NET SALES	$	590,225,211	$	550,761,311
COST OF GOODS SOLD	387,987,605		376,024,080
Gross profit	202,237,606		174,737,231
OPERATING EXPENSES:
Engineering, research and development	42,181,986		34,653,747
Selling, general & administrative	30,709,308		26,832,837
Total operating expenses	72,891,294		61,486,584
Income from operations	129,346,312		113,250,647
OTHER INCOME (LOSS)
Investment (loss) income	(3,368,524)		2,939,195
Other income (loss), net	1,670,139		(194,740)
Total other (loss) income	(1,698,385)		2,744,455
INCOME BEFORE PROVISION FOR INCOME TAXES	127,647,927		115,995,102
PROVISION FOR INCOME TAXES	19,417,213		18,416,841
NET INCOME	$	108,230,714	$	97,578,261
EARNINGS PER SHARE: (1)
Basic	$	0.47	$	0.42
Diluted	$	0.47	$	0.42
Cash Dividends Declared per Share	$	0.120	$	0.120
(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 Months Ended March 31, 2024 and 2023

	Three Months Ended March 31,
	2024		2023
Net income	$	108,230,714	$	97,578,261
Other comprehensive (loss) income before tax:
Foreign currency translation adjustments	(950,213)		(121,167)
Unrealized gains (losses) on debt securities, net	51,910		2,581,777
Other comprehensive (loss) income, before tax	(898,303)		2,460,610
Income tax impact related to components of other comprehensive income (loss)	10,901		542,173
Other comprehensive (loss) income, net of tax	(909,204)		1,918,437
Comprehensive income	$	107,321,510	$	99,496,698

5

GENTEX CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT

For the Three Months Ended March 31, 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 JANUARY 1, 2024	231,455,443	$	13,887,326	$	968,245,875	$	1,336,940,990	$	(6,557,122)	$	2,312,517,069
Issuance of common stock from stock plan transactions	944,345	56,661		16,777,325		—		—		16,833,986
Repurchases of common stock	(1,200,903)	(72,054)		(4,443,340)		(38,523,693)		—		(43,039,087)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	—	—		10,473,792		—		—		10,473,792
Dividends declared ($0.12 per share)	—	—		—		(27,743,481)		—		(27,743,481)
Net income	—	—		—		108,230,714		—		108,230,714
Other comprehensive loss	—	—		—		—		(909,204)		(909,204)
BALANCE AS OF MARCH 31, 2024	231,198,885	$	13,871,933	$	991,053,652	$	1,378,904,530	$	(7,466,326)	$	2,376,363,789
BALANCE AS OF JANUARY 1, 2023	234,169,335	$	14,050,160	$	917,499,323	$	1,148,386,272	$	(14,142,934)	$	2,065,792,821
Issuance of common stock from stock plan transactions	603,636	36,218		5,919,804		—		—		5,956,022
Repurchases of common stock	(1,046,926)	(62,815)		(3,653,772)		(24,746,045)		—		(28,462,632)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	—	—		8,519,535		—		—		8,519,535
Dividends declared ($0.12 per share)	—	—		—		(28,046,798)		—		(28,046,798)
Net income	—	—		—		97,578,261		—		97,578,261
Other comprehensive loss	—	—		—		—		1,918,437		1,918,437
BALANCE AS OF MARCH 31, 2023	233,726,045	$	14,023,563	$	928,284,890	$	1,193,171,690	$	(12,224,497)	$	2,123,255,646

6

GENTEX CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended March 31, 2024 and 2023

	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	108,230,714	$	97,578,261
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,953,768		24,041,648
(Gain) on disposal of assets	(25,671)		(106,743)
Loss on disposal of assets	6,838		41,843
(Gain) on sale of investments and technology investment income	(4,687,471)		(1,199,707)
Loss on sale of investments and technology investment losses	10,384,965		1,671,583
Change in deferred income taxes	(3,638,218)		141,959
Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock	10,473,792		8,519,535
Change in operating assets and liabilities:
Accounts receivable, net	(19,781,263)		(56,373,376)
Inventories	(34,064,216)		2,590,294
Prepaid expenses and other	4,663,897		(629,502)
Accounts payable	6,080,702		11,112,425
Accrued liabilities, excluding dividends declared	28,279,293		33,525,890
Net cash provided by operating activities	129,877,130		120,914,110
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Activity in investments:
Sales proceeds	16,121,684		3,128,110
Maturities and calls	1,420,000		1,465,000
Purchases	(37,537,250)		(32,178,155)
Plant and equipment additions	(31,871,370)		(42,819,075)
Proceeds from sale of plant and equipment	9,500		118,410
Increase in other assets	(3,285,058)		(2,110,935)
Net cash used for investing activities	(55,142,494)		(72,396,645)
CASH FLOWS USED FOR FINANCING ACTIVITIES:
Issuance of common stock from stock plan transactions	16,833,987		5,956,022
Cash dividends paid	(27,774,268)		(28,099,993)
Repurchases of common stock	(41,224,840)		(25,675,972)
Net cash used for financing activities	(52,165,121)		(47,819,943)
NET INCREASE IN CASH AND CASH EQUIVALENTS	22,569,515		697,522
CASH, CASH EQUIVALENTS, and RESTRICTED CASH, beginning of period	226,435,019		218,754,638
CASH, CASH EQUIVALENTS, and RESTRICTED CASH, end of period	$	249,004,534	$	219,452,160

	Three Months Ended March 31, 2024
SUPPLEMENTAL CASH FLOW DATA	2024		2023
Non-cash investing and financing activities:
Change in property and equipment in accounts payable and accrued expenses and other current liabilities	$	557,154	$	(1,283,303)

7

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 March 31, 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. 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 March 31, 2024 and December 31, 2023 was $340.1 million, as set forth in the table below:

8

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 March 31, 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 first 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 March 31, 2024:

Other Intangible Assets	Gross		Accumulated Amortization		Net		Assumed Useful Life
Gentex Patents	$	39,396,881	$	(27,838,512)	$	11,558,369	Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks	$	52,000,000	$	—	$	52,000,000	Indefinite
HomeLink® Technology	180,000,000		(157,500,000)		22,500,000		12 years
Existing Customer Platforms	43,000,000		(43,000,000)		—		10 years
Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite
eSight Technology	12,000,000		(416,667)		11,583,333		12 years
eSight Trade Names and Trademarks	870,000		(30,208)		839,792		12 years
Vaporsens In-Process R&D	11,000,000		—		11,000,000		Indefinite
Argil In-Process R&D	6,278,132		—		6,278,132		Indefinite
Air-Craftglass In-Process R&D	1,507,778		—		1,507,778		Indefinite
Guardian Trade Names	1,300,000		—		1,300,000		Indefinite
Guardian In-Process R&D	6,800,000		—		6,800,000		Indefinite
Total Other Intangible Assets	$	410,755,910	$	(200,946,875)	$	209,809,035
Total Patents & Other Intangible Assets	$	450,152,791	$	(228,785,387)	$	221,367,404

9

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 Platforms	43,000,000		(43,000,000)		—		10 years
Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite
eSight Technology	12,000,000		—		12,000,000		12 years
eSight Trade Names and Trademarks	870,000		—		870,000		12 years
Vaporsens In-Process R&D	11,000,000		—		11,000,000		Indefinite
Argil In-Process R&D	6,278,132		—		6,278,132		Indefinite
Air-Craftglass In-Process R&D	1,507,778		—		1,507,778		Indefinite
Guardian Trade Names	1,300,000		—		1,300,000		Indefinite
Guardian In-Process R&D	6,800,000		—		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 $4.5 million during the three months ended March 31, 2024, compared to approximately $5.3 million for the same period ended March 31, 2023.

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.

10

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. 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.

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 $133.9 million as of March 31, 2024, of which $130.4 million and $3.5 million are recorded in long-term investments and short-term investments 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 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 March 31, 2024 and December 31, 2023:

As of March 31, 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	March 31, 2024		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	$	249,004,534	$	249,004,534	$	—	$	—
Short-Term Investments:
Certificate of Deposit	746,125		746,125		—		—
Corporate Bonds	1,955,083		—		1,955,083		—
Government Securities	7,382,970		—		7,382,970		—
Municipal Bonds	1,730,433		—		1,730,433		—
Other	1,477,288		1,477,288		—		—
Long-Term Investments:
Asset Backed Securities	32,561,930		—		32,561,930		—
Certificate of Deposit	748,245		748,245		—		—
Corporate Bonds	66,095,516		—		66,095,516		—
Government Securities	6,781,490		—		6,781,490		—
Municipal Bonds	47,375,455		—		47,375,455		—
Common Stock	27,020,275		27,020,275		—		—
Total	$	442,879,344	$	278,996,467	$	163,882,877	$	—

11

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 Deposit	994,013		994,013		—		—
Corporate Bonds	1,943,886		—		1,943,886		—
Government Securities	4,759,507		—		4,759,507		—
Municipal Bonds	1,726,658		—		1,726,658		—
Other	1,465,388		1,465,388		—		—
Long-Term Investments:
Asset-backed Securities	27,146,504		—		27,146,504		—
Certificate of Deposit	748,358		748,358		—		—
Corporate Bonds	65,404,340		—		65,404,340		—
Governmental Securities	6,227,129		—		6,227,129		—
Municipal Bonds	56,336,921		—		56,336,921
Common Stock	18,610,519		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 March 31, 2024 and December 31, 2023:

As of March 31, 2024:

			Unrealized
	Cost		Gains		Losses		Market Value
Short-Term Investments:
Certificate of Deposit	$	750,000	$	—	$	(3,875)	$	746,125
Corporate Bonds	1,970,327		—		(15,244)		1,955,083
Government Securities	7,401,456		—		(18,486)		7,382,970
Municipal Bonds	1,749,223		—		(18,790)		1,730,433
Other	1,477,288		—		—		1,477,288
Long-Term Investments:
Asset Backed Securities	32,384,759		363,920		(186,749)		32,561,930
Certificate of Deposit	750,000		—		(1,755)		748,245
Corporate Bonds	67,027,320		319,188		(1,250,992)		66,095,516
Government Securities	6,826,404		—		(44,914)		6,781,490
Municipal Bonds	49,025,853		287,737		(1,938,135)		47,375,455
Common Stock	33,012,386		123,840		(6,115,951)		27,020,275
Total	$	202,375,016	$	1,094,685	$	(9,594,891)	$	193,874,810

12

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of December 31, 2023:    

			Unrealized
	Cost		Gains		Losses		Market Value
Short-Term Investments:
Certificate of Deposit	$	1,000,000	$	—	$	(5,987)	$	994,013
Corporate Bonds	1,976,195		—		(32,309)		1,943,886
Government Securities	4,754,495		21,141		(16,129)		4,759,507
Municipal Bonds	1,749,038		—		(22,380)		1,726,658
Other	1,465,388		—		—		1,465,388
Long-Term Investments:
Asset-backed Securities	26,923,803		331,847		(109,146)		27,146,504
Certificate of Deposit	750,000				(1,642)		748,358
Corporate Bonds	66,214,398		748,471		(1,558,529)		65,404,340
Government Securities	6,217,774		10,675		(1,320)		6,227,129
Municipal Bonds	58,261,615		811,128		(2,735,822)		56,336,921
Common Stock	17,324,886		1,328,446		(42,813)		18,610,519
Total	$	186,637,592	$	3,251,708	$	(4,526,077)	$	185,363,223

Unrealized losses on investments as of March 31, 2024, are as follows:

	Aggregate Unrealized Losses		Aggregate Fair Value of Investments
Loss duration of less than one year	$	6,442,204	$	67,460,003
Loss duration of greater than one year	3,152,687		60,198,609
Total	$	9,594,891	$	127,658,612

Unrealized losses on investments 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 year	4,400,003		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 March 31, 2024 have contractual maturities as follows:

Due within one year	$	11,814,611
Due between one and five years	87,792,966
Due over five years	65,769,670
	$	165,377,247

13

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(5)    Inventories

Inventories consisted of the following at the respective balance sheet dates:

	March 31, 2024		December 31, 2023
Raw materials	$	307,222,769	$	283,126,566
Work-in-process	45,325,627		46,343,955
Finished goods	83,988,848		73,002,507
Total Inventory	$	436,537,244	$	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 months ended March 31, 2024 and March 31, 2023:

14

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Three Months Ended March 31,
	2024		2023
Basic Earnings Per Share
Net Income	$	108,230,714	$	97,578,261
Less: Dividends and undistributed earnings allocated to participating securities	1,578,908		1,456,913
Net Income available to common shareholders	$	106,651,806	$	96,121,348
Basic weighted average shares outstanding	227,929,048		230,605,626
Net Income per share - Basic	$	0.47	$	0.42
Diluted Earnings Per Share
Allocation of Net Income used in basic computation	$	106,651,806	$	96,121,348
Reallocation of undistributed earnings	2,425		1,276
Net Income available to common shareholders - Diluted	$	106,654,231	$	96,122,624
Number of shares used in basic computation	227,929,048		230,605,626
Additional weighted average dilutive common stock equivalents	479,090		290,220
Diluted weighted average shares outstanding	228,408,138		230,895,846
Net Income per share - Diluted	$	0.47	$	0.42
Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive	409,297		1,810,685

(7)    Stock-Based Compensation Plans

As of March 31, 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 $10,487,261 for the three months ended March 31, 2024. The Company recognized compensation expense for share-based payments of $8,519,535 for the three months ended March 31, 2023. A portion of the compensation cost for share based payment awards is capitalized as part of inventory.

15

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 March 31, 2024, 10,390,056 share awards have been made under the Plan, resulting in 27,178,740 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 Granted	Conversion Rate	Total Shares Under 2019 Omnibus Plan
Non-Qualified Stock Options	4,903,558	1.00	4,903,558
Restricted Stock	4,480,985	4.06	18,192,799
Performance Shares	1,005,513	4.06	4,082,383
Total	10,390,056		27,178,740

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 March 31, 2024, there was $7,042,117 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 March 31,
	2024		2023
Dividend Yield (1)	1.64	%	1.76	%
Expected volatility (2)	28.29	%	29.04	%
Risk-free interest rate (3)	4.21	%	3.60	%
Expected term of options (years) (4)	4.14		4.15
Weighted-avg. grant date fair value	$9.08		$6.84

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 March 31, 2024, the Company had unearned stock-based compensation of $48,288,792 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 months ended March 31, 2024 was $6,687,341. Compensation expense from restricted stock grants in the three months ended March 31, 2023 was $5,946,054.

16

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 March 31, 2024, the Company had unearned stock-based compensation of $20,603,455 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 months ended March 31, 2024 was $1,772,630. Compensation expense related to these performance share grants in the three months ended March 31, 2023 was $502,206.

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 months ended March 31, 2024 was $422,846.

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 March 31, 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 March 31, 2024, the Company has issued 321,682 shares under this plan.

(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):

17

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Three Months Ended March 31,
	2024		2023
Foreign currency translation adjustments:
Balance at beginning of period	$	(4,534,719)	$	(4,032,239)
Other Comprehensive loss before reclassifications	(950,213)		(121,167)
Net current-period change	(950,213)		(121,167)
Balance at end of period	(5,484,932)		(4,153,406)
Unrealized (losses) gains on available-for-sale debt securities:
Balance at beginning of period	(2,022,403)		(10,110,695)
Other Comprehensive (loss) income before reclassifications	(548,457)		277,718
Amounts reclassified from accumulated other comprehensive income	589,466		1,761,886
Net current-period change	41,009		2,039,604
Balance at end of period	(1,981,394)		(8,071,091)
Accumulated other comprehensive loss, end of period	$	(7,466,326)	$	(12,224,497)

The following table presents details of reclassifications out of accumulated other comprehensive loss for the three and three months ended March 31, 2024 and 2023:

Details about Accumulated Other Comprehensive Loss Components	Amounts Reclassified from Other Comprehensive Loss				Affected Line item in the Consolidated Statements of Income
	Three Months Ended March 31,
	2024		2023
Unrealized gains (losses) on available-for-sale debt securities
Realized gain (loss) on sale of securities	$	(746,159)	$	(2,230,236)	Investment income
Provision for income taxes	156,693		468,350		Provision for income taxes
Total net reclassifications for the period	$	(589,466)	$	(1,761,886)

(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 March 31, 2024, there was no outstanding balance on the Revolver.

As of March 31, 2024, the Company is in compliance with its covenants under the Credit Agreement.

18

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(10)    Equity

The decrease in common stock during the three months ended March 31, 2024, was primarily due to the repurchases of 1.2 million shares, partially offset by the issuance of 0.9 million shares of the Company’s common stock, net of cancellations, under the Company’s stock-based compensation plans. The total net decrease was 0.3 million shares.

The Company recorded a cash dividend of $0.120 per share during the first quarter of 2024 as compared to a cash dividend of $0.120 per share during the first quarter of 2023. The first quarter 2024 dividend of $27.7 million was declared on March 5, 2024 and was paid on April 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.

	Three Months Ended March 31,
	2024		2023
Revenue:
Automotive Products	$	577,602,196	$	537,422,988
Other	12,623,015		13,338,323
Total	$	590,225,211	$	550,761,311
Income (Loss) from operations:
Automotive Products	$	129,546,140	$	111,439,798
Other	(199,828)		1,810,849
Total	$	129,346,312	$	113,250,647

19

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(13)    Income Taxes

The effective tax rate was 15.2% in the three months ended March 31, 2024, compared to an effective tax rate of 15.9% 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 month periods ended March 31, 2024 and March 31, 2023:

	Three Months Ended March 31,
Revenue	2024		2023
Automotive Products
U.S.	$	165,140,622	$	170,781,604
Japan	89,004,628		72,155,984
Germany	75,694,888		80,579,465
Korea	53,695,112		23,478,469
Mexico	37,621,163		34,287,544
Other	156,445,783		156,139,922
Total Automotive Products	$	577,602,196	$	537,422,988
Other Products (U.S.)	12,623,015		13,338,323
Total Revenue	$	590,225,211	$	550,761,311

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.

20

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 month periods ended March 31, 2024 and March 31, 2023:

	Three Months Ended March 31,
Revenue	2024		2023
Automotive Segment
Automotive Mirrors & Electronics	$	550,184,430	$	505,731,576
HomeLink Modules*	27,417,766		31,691,412
Total Automotive Products	$	577,602,196	$	537,422,988
Other Segment
Fire Protection Products	6,836,038		9,301,153
Aerospace Products	5,770,800		4,037,170
Medical Products	16,177		—
Total Other	$	12,623,015	$	13,338,323
*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 March 31, 2024 was 4 years, with a weighted average discount rate of 6.3%.

Future minimum lease payments for operating leases as of March 31, 2024 were as follows:

Year ending December 31,
2024 (excluding the three months ended March 31, 2024)	$	1,828,676
2025	1,743,522
2026	1,202,399
2027	901,441
2028	662,837
Thereafter	57,651
Total future minimum lease payments	6,396,526
Less imputed interest	(482,318)
Total	$	5,914,208

Reported as of March 31, 2024
Accrued Liabilities	$	2,310,126
Other Non-Current Liabilities	3,604,082
Total	$	5,914,208

21

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 quarter ended March 31, 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 Property	75,000
Right of Use Asset (Lease)	116,562
ESight Technology	12,000,000
Trade Names and Trademarks	870,000
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

22

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

FIRST QUARTER 2024 VERSUS FIRST QUARTER 2023

Net Sales. Net sales for the first quarter of 2024 increased by $39.5 million or 7%, when compared with the first quarter of 2023.

Automotive net sales for the first quarter of 2024 were $577.6 million, a 7% increase when compared with automotive net sales of $537.4 million in the first quarter of 2023. The 2% decrease in automotive mirror unit shipments in the first quarter of 2024 to 12.5 million units, compared with 12.7 million units in the first quarter of 2023, was driven by a 5% quarter over quarter decrease in interior auto-dimming mirror unit shipments, which was partially offset by a 3% quarter over quarter increase in exterior auto-dimming mirror unit shipments.

The below table represents the Company's auto-dimming mirror unit shipments for the three months ended March 31, 2024, and 2023 (in thousands):

	Three Months Ended March 31,
	2024	2023	% Change
North American Interior Mirrors	2,262	2,426	(7)%
North American Exterior Mirrors	1,621	1,619	—%
Total North American Mirror Units	3,883	4,045	(4)%
International Interior Mirrors	5,554	5,771	(4)%
International Exterior Mirrors	3,034	2,901	5%
Total International Mirror Units	8,588	8,672	(1)%
Total Interior Mirrors	7,816	8,197	(5)%
Total Exterior Mirrors	4,655	4,519	3%
Total Auto-Dimming Mirror Units	12,471	12,717	(2)%

Note: Percent change and amounts may not total due to rounding.

Other net sales were $12.6 million in the first quarter of 2024, compared to $13.3 million in the first quarter of 2023. Fire protection sales decreased to $6.8 million for the first quarter of 2024, compared to $9.3 million in the same quarter of last year. Dimmable aircraft sales increased during the first quarter of 2024 to $5.8 million, compared to $4.0 million in the same quarter of last year.

Cost of Goods Sold. As a percentage of net sales, cost of goods sold decreased to 65.7% for the first quarter of 2024, versus 68.3% in the same quarter last year. The quarter over quarter increase in the gross profit margin was primarily the result of raw material cost reductions, customer price changes made after the first quarter of 2023, and manufacturing related efficiencies. On a quarter over quarter basis, raw material cost reductions had a positive impact on gross margin of approximately 100 -150 basis points. Manufacturing related efficiencies, including direct labor related efficiencies had a positive impact of approximately 100 - 150 basis points on gross margin. Other positive factors to gross margin on a year over year basis included lower freight and tariff costs.

Operating Expenses. Engineering, research and development expenses for the first quarter of 2024 increased by $7.5 million, when compared with the first quarter of 2023, primarily due to staffing and engineering related professional fees and testing expenses.

.

Selling, general and administrative ("S, G & A") expenses increased by 14% or $3.9 million for the first quarter of 2024, compared to the first quarter of 2023, primarily due to increased staffing. S, G & A expenses were remained at 5% of net sales in the first quarter of both 2024 and 2023.

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Total operating expenses were $72.9 million in the first quarter of 2024, an increase of 19% quarter over quarter or $11.4 million, compared to $61.5 million in the first quarter of 2023.

Total Other Income (Loss). Total other income for the first quarter of 2024 decreased by $4.4 million, when compared with the first quarter of 2023.

Provision for Income Taxes. The effective tax rate was 15.2% for, and an income tax expense of $19.4 million was recorded in, the first quarter of 2024, compared to an effective tax rate of 15.9% for, and an income tax expense of $18.4 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 first quarter of 2024 was $108.2 million, up from a net income of $97.6 million in the first quarter of 2023. The change in net income was primarily the result of quarter over quarter increases in net sales and operating profits.

Earnings Per Share. The Company had earnings per diluted share for the first quarter of 2024 of $0.47, which compared to earnings per diluted share of $0.42 for the first quarter of 2023.

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FINANCIAL CONDITION:

The Company's cash and cash equivalents as of March 31, 2024 were $249.0 million, an increase of $22.6 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 three months ended March 31, 2024.

Short-term investments as of March 31, 2024 were $16.8 million, up from $14.4 million as of December 31, 2023, and long-term investments were $311.0 million as of March 31, 2024, up from $299.1 million as of December 31, 2023, primarily due to the $15.7 million investment in VOXX, as discussed in Note 4 of the consolidated financial statements.

Accounts receivable as of March 31, 2024 increased approximately $19.8 million compared to December 31, 2023, primarily due to the increase in sales and timing thereof during the three months ended March 31, 2024. As of March 31, 2024, all of the Company's material tier one and OEM customers continue to be in good standing.

Inventories as of March 31, 2024 were $436.5 million, compared to $402.5 million as of December 31, 2023, primarily due to increases in finished goods in order to meet forecasted customer demands.

Accounts payable as of March 31, 2024 increased approximately $7.3 million to $191.7 million, when compared to December 31, 2023, primarily driven by supplier payment terms and increased inventory purchases.

Accrued liabilities as of March 31, 2024 increased approximately $25.5 million compared to December 31, 2023, primarily due to an increase in accrued salaries and wages.

Cash flow from operating activities for the three months ended March 31, 2024 increased $9.0 million to $129.9 million, compared with $120.9 million during the same three month period last year, primarily due to an increase in net income, which was partially offset by changes in working capital.

Capital expenditures for the three months ended March 31, 2024 were approximately $31.9 million, compared with approximately $42.8 million for the same quarter 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 has 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 34 - 37 million interior mirror units annually and approximately 19 - 22 million exterior mirror units annually, based on current product mix (excluding the impact of the above referenced ongoing construction). The Company also evaluates equipment capacity on an ongoing basis and adds equipment as needed.

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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.

The following is a summary of working capital and long-term investments:

	March 31, 2024		December 31, 2023
Working Capital	$	768,183,483	$	726,129,177
Fixed Income Long-Term Investments	153,562,636		155,863,252
Total	$	921,746,119	$	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 (including, but not limited to, industry-wide parts shortages, and global supply chain and labor constraints), 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 months ended March 31, 2024, the Company repurchased 1,200,903 shares. The Company has 14,650,276 shares remaining under the plan as of March 31, 2024, as is further detailed in Part II, Item 2 of this Form 10-Q.

BUSINESS UPDATE

For the first quarter of 2024, the Company reported net sales of $590.2 million, compared to net sales of $550.8 million in the first quarter of 2023, a 7% increase quarter over quarter. For the first quarter of 2024, global light vehicle production in North America, Europe, and Japan/Korea decreased approximately 3%, when compared to the first quarter of 2023.

In the first quarter of 2024, the Company had 31 net new launches of interior and exterior auto-dimming mirrors and electronic features. Over 60% of the launches in the first 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 first quarter of 2024, the Company is shipping production Full Display Mirrors® to sixteen different automaker customers. The Company remains confident that ongoing discussions with certain other

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customers may in the future cause such customers to consider adding the Full Display Mirror® into their product road-map for future vehicles.

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.

On March 31, 2014, the Alliance of Automobile Manufacturers petitioned the National Highway Traffic Safety Administration ("NHTSA") to allow automakers to use camera monitoring systems as an option to replace conventional rearview mirrors within the United States. At the annual SAE Government-Industry Meeting in January 2017, NHTSA requested that SAE develop Recommended Procedures for test protocols and performance criteria for camera monitoring systems that would replace mirror systems on light vehicles in the U.S. market. SAE assigned the task to the Driver Vision Committee, and the SAE Driver Vision Committee created a CMS Task Force to draft the Recommended Procedures. NHTSA published a report dated October 2018 related to camera monitoring systems for outside mirror replacements. On October 10, 2019, an Advanced Notice of Proposed Rulemaking (ANPRM) was published seeking public comment on permitting camera-based rear visibility systems, as an alternative to inside and outside rearview mirrors required under Federal Motor Vehicle Safety Standard (FMVSS) No. 111, “Rear Visibility,” which currently requires that vehicles be equipped with rearview mirrors to provide drivers with a view of objects that are to their side or to their side and rear. This ANPRM builds on NHTSA's prior efforts to obtain supporting technical information, data, and analysis on CMS so that the agency can determine whether these systems can provide the same level of safety as the rearview mirrors currently required under FMVSS No. 111. The ANPRM states that one reason NHTSA is seeking additional information is because research conducted by NHTSA and others between 2006 and 2017 has consistently shown that prototype and preproduction camera-based rear visibility systems can exhibit safety-relevant performance issues. In November 2022, NHTSA conducted a public meeting and discussed the on-going research of this technology.

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

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programs with sixteen OEM customers. The Company is currently shipping production Full Display Mirrors® to all sixteen 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) for the Toyota Harrier 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 also continues shipping auto-dimming mirrors containing DVR for both the Toyota Yaris and the Yaris Cross for the Japan market. This product is the first Gentex DVR product that has an app available to allow the consumer to pull recorded information from the mirror to a phone, which creates a more user friendly experience.

Connected Car

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 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.

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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.

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

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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.

Even as the Company engages with automotive customers regarding the inflationary aspects of the business, it continues to experience pricing pressure from such 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 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, as well as the UAW strikes.

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 second quarter of 2024, and full years 2024 and 2025 are based on the mid-April 2024 S&P Global Mobility forecast for light vehicle production in North America, Europe, Japan/Korea, and China. Second 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-April light vehicle production forecast)
(in Millions)
Region	Q2 2024	Q2 2023	% Change		Calendar Year 2025	Calendar Year 2024	Calendar Year 2023	2025 vs 2024 % Change		2024 vs 2023 % Change
North America	4.15	4.09	1	%	16.42	16.01	15.68	3	%	2	%
Europe	4.52	4.66	(3)	%	17.52	17.49	17.88	—	%	(2)	%
Japan and Korea	3.03	3.13	(3)	%	11.80	12.16	12.77	(3)	%	(5)	%
China	7.51	6.74	11	%	30.85	29.72	29.04	4	%	2	%
Total Light Vehicle Production	19.21	18.62	3	%	76.59	75.38	75.37	2	%	—	%

Based on the aforementioned light vehicle production forecast and the actual results for the first three months of 2024, the Company is making no changes to its previously provided guidance for calendar year 2024 as shown below.

•Revenue is expected to be between $2.45 and $2.55 billion

•Gross Margin is expected to be between 34% and 35%

•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 16% and 18%

•Capital Expenditures are expected to be between $225 and $250 million

•Depreciation and Amortization is expected to be between $95 and $105 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; industry-wide parts shortages and global supply chain constraints; 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 March 31, 2024, the Company has 14.7 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 still expects calendar year 2025 revenue of approximately $2.65 to $2.75 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 March 31, 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 March 31, 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 March 31, 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

32

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 April 16, 2024 (http://www.gentex.com/forecast-disclaimer).

33

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 three months of 2024, the Company repurchased 1.2 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 1,200,903 shares during the first three months of 2024, the Company has 14.7 million shares remaining under the plan as of March 31, 2024.

The following is a summary of share repurchase activity during each month of the three month period ended March 31, 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 Program	Maximum Number of Shares That May Yet Be Purchased Under the Plan or Program
January 2024	90,006	33.81	90,006	15,761,173
February 2024	510,247	35.31	510,247	15,250,926
March 2024	600,650	36.59	600,650	14,650,276
1st Quarter 2024 Total	1,200,903	35.84	1,200,903
2024 Total	1,200,903	35.84	1,200,903	14,650,276

As of March 31, 2024, the Company has repurchased 157,349,452 shares at a total cost of $2,789,723,701 under its share repurchase plan or as otherwise previously disclosed.

Item 6.    Exhibits.

See Exhibit Index on Page 36

SIGNATURES

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.

34

35

		GENTEX CORPORATION
Date:	May 3, 2024	/s/ Steven R. Downing
		Steven R. Downing
		President and Chief Executive Officer
		(Principal Executive Officer) on behalf of Gentex Corporation
Date:	May 3, 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

36

EXHIBIT INDEX

 

Exhibit No.	Description
31.1	Certificate of the Chief Executive Officer of Gentex Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
31.2	Certificate of the Chief Financial Officer of Gentex Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
32	Certificate of the Chief Executive Officer and Chief Financial Officer of Gentex Corporation pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
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

EX-31.1

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: May 3, 2024

/s/ Steven R. Downing

Steven R. Downing

President and Chief Executive Officer

EX-31.2

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: May 3, 2024

/s/ Kevin C. Nash

Kevin C. Nash

Vice President, Finance; Chief Financial Officer and Treasurer

EX-32

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 March 31, 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 March 31, 2024, fairly presents, in all material respects, the financial condition and results of operations of Gentex Corporation.

Dated: May 3, 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

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	Apr. 26, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 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		231,184,476
Entity Central Index Key	0000355811
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Current Fiscal Year End Date	--12-31

XML

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2024	Dec. 31, 2023	[1]
CURRENT ASSETS
Cash and cash equivalents	$ 249,004,534	$ 226,435,019
Short-term investments	16,758,924	14,356,476
Accounts receivable, net	341,591,131	321,809,868
Inventories	436,537,244	402,473,028
Prepaid expenses and other	28,702,868	32,663,762
Total current assets	1,072,594,701	997,738,153
PLANT AND EQUIPMENT—NET	664,788,932	652,877,672
OTHER ASSETS
Goodwill	340,105,631	340,105,631
Long-term investments	311,028,408	299,080,876
Intangible assets, net	209,809,035	214,005,910
Deferred tax asset	44,741,075	41,113,759
Patents and other assets, net	70,146,788	66,515,551
Total other assets	975,830,937	960,821,727
Total assets	2,713,214,570	2,611,437,552
CURRENT LIABILITIES
Accounts payable	191,736,616	184,398,820
Accrued liabilities	112,674,602	87,210,156
Total current liabilities	304,411,218	271,608,976
OTHER NON-CURRENT LIABILITIES	32,439,563	27,311,507
Total liabilities	336,850,781	298,920,483
SHAREHOLDERS’ INVESTMENT
Common stock	13,871,933	13,887,326
Additional paid-in capital	991,053,652	968,245,875
Retained earnings	1,378,904,530	1,336,940,990
Accumulated other comprehensive loss	(7,466,326)	(6,557,122)
Total shareholders’ investment	2,376,363,789	2,312,517,069
Total liabilities and shareholders’ investment	$ 2,713,214,570	$ 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.

XML

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
NET SALES		$ 590,225,211	$ 550,761,311
COST OF GOODS SOLD		387,987,605	376,024,080
Gross profit		202,237,606	174,737,231
OPERATING EXPENSES:
Engineering, research and development		42,181,986	34,653,747
Selling, general & administrative		30,709,308	26,832,837
Total operating expenses		72,891,294	61,486,584
Income from operations		129,346,312	113,250,647
OTHER INCOME (LOSS)
Investment (loss) income		(3,368,524)	2,939,195
Other income (loss), net		1,670,139	(194,740)
Total other (loss) income		(1,698,385)	2,744,455
INCOME BEFORE PROVISION FOR INCOME TAXES		127,647,927	115,995,102
PROVISION FOR INCOME TAXES		19,417,213	18,416,841
NET INCOME		$ 108,230,714	$ 97,578,261
EARNINGS PER SHARE:
Basic (in dollars per share)	[1]	$ 0.47	$ 0.42
Diluted (in dollars per share)	[1]	0.47	0.42
Cash Dividends Declared per Share (in dollars per share)		$ 0.12	$ 0.12

[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.

XML

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 108,230,714	$ 97,578,261
Other comprehensive (loss) income before tax:
Foreign currency translation adjustments	(950,213)	(121,167)
Unrealized gains (losses) on debt securities, net	51,910	2,581,777
Other comprehensive (loss) income, before tax	(898,303)	2,460,610
Income tax impact related to components of other comprehensive income (loss)	10,901	542,173
Other comprehensive (loss) income, net of tax	(909,204)	1,918,437
Comprehensive income	$ 107,321,510	$ 99,496,698

XML

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT - USD ($)	3 Months Ended
	Mar. 31, 2024		Mar. 31, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ 2,312,517,069	[1]	$ 2,065,792,821
Issuance of common stock from stock plan transactions	$ 16,833,986		5,956,022
Repurchases of common stock (in shares)	(1,200,000)
Repurchases of common stock	$ (43,039,087)		(28,462,632)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	10,473,792		8,519,535
Dividends declared	(27,743,481)		(28,046,798)
Net income	108,230,714		97,578,261
Other comprehensive loss	(909,204)		1,918,437
Ending Balance	$ 2,376,363,789		$ 2,123,255,646
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	231,455,443		234,169,335
Beginning Balance	$ 13,887,326		$ 14,050,160
Issuance of common stock from stock plan transactions (in shares)	944,345		603,636
Issuance of common stock from stock plan transactions	$ 56,661		$ 36,218
Repurchases of common stock (in shares)	(1,200,903)		(1,046,926)
Repurchases of common stock	$ (72,054)		$ (62,815)
Ending balance (in shares)	231,198,885		233,726,045
Ending Balance	$ 13,871,933		$ 14,023,563
Additional  Paid-In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	968,245,875		917,499,323
Issuance of common stock from stock plan transactions	16,777,325		5,919,804
Repurchases of common stock	(4,443,340)		(3,653,772)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	10,473,792		8,519,535
Ending Balance	991,053,652		928,284,890
Retained  Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	1,336,940,990		1,148,386,272
Repurchases of common stock	(38,523,693)		(24,746,045)
Dividends declared	(27,743,481)		(28,046,798)
Net income	108,230,714		97,578,261
Ending Balance	1,378,904,530		1,193,171,690
Accumulated  Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(6,557,122)		(14,142,934)
Other comprehensive loss	(909,204)		1,918,437
Ending Balance	$ (7,466,326)		$ (12,224,497)

[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.

XML

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.12	$ 0.12

XML

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 108,230,714	$ 97,578,261
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,953,768	24,041,648
(Gain) on disposal of assets	(25,671)	(106,743)
Loss on disposal of assets	6,838	41,843
(Gain) on sale of investments and technology investment income	(4,687,471)	(1,199,707)
Loss on sale of investments and technology investment losses	10,384,965	1,671,583
Change in deferred income taxes	(3,638,218)	141,959
Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock	10,473,792	8,519,535
Change in operating assets and liabilities:
Accounts receivable, net	(19,781,263)	(56,373,376)
Inventories	(34,064,216)	2,590,294
Prepaid expenses and other	4,663,897	(629,502)
Accounts payable	6,080,702	11,112,425
Accrued liabilities, excluding dividends declared	28,279,293	33,525,890
Net cash provided by operating activities	129,877,130	120,914,110
Activity in investments:
Sales proceeds	16,121,684	3,128,110
Maturities and calls	1,420,000	1,465,000
Purchases	(37,537,250)	(32,178,155)
Plant and equipment additions	(31,871,370)	(42,819,075)
Proceeds from sale of plant and equipment	9,500	118,410
Increase in other assets	(3,285,058)	(2,110,935)
Net cash used for investing activities	(55,142,494)	(72,396,645)
CASH FLOWS USED FOR FINANCING ACTIVITIES:
Issuance of common stock from stock plan transactions	16,833,987	5,956,022
Cash dividends paid	(27,774,268)	(28,099,993)
Repurchases of common stock	(41,224,840)	(25,675,972)
Net cash used for financing activities	(52,165,121)	(47,819,943)
NET INCREASE IN CASH AND CASH EQUIVALENTS	22,569,515	697,522
CASH, CASH EQUIVALENTS, and RESTRICTED CASH, beginning of period	226,435,019	218,754,638
CASH, CASH EQUIVALENTS, and RESTRICTED CASH, end of period	249,004,534	219,452,160
Non-cash investing and financing activities:
Change in property and equipment in accounts payable and accrued expenses and other current liabilities	$ 557,154	$ (1,283,303)

XML

Basis of Presentation

3 Months Ended

Mar. 31, 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 March 31, 2024, and the results of operations and cash flows for the interim periods presented.

XML

Adoption of New Accounting Standards

3 Months Ended

Mar. 31, 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. 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.

XML

Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 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 March 31, 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 March 31, 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 first 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 March 31, 2024:

Other Intangible Assets	Gross		Accumulated Amortization		Net		Assumed Useful Life
Gentex Patents	$	39,396,881	$	(27,838,512)	$	11,558,369	Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks	$	52,000,000	$	—	$	52,000,000	Indefinite
HomeLink® Technology	180,000,000		(157,500,000)		22,500,000		12 years
Existing Customer Platforms	43,000,000		(43,000,000)		—		10 years
Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite
eSight Technology	12,000,000		(416,667)		11,583,333		12 years
eSight Trade Names and Trademarks	870,000		(30,208)		839,792		12 years
Vaporsens In-Process R&D	11,000,000		—		11,000,000		Indefinite
Argil In-Process R&D	6,278,132		—		6,278,132		Indefinite
Air-Craftglass In-Process R&D	1,507,778		—		1,507,778		Indefinite
Guardian Trade Names	1,300,000		—		1,300,000		Indefinite
Guardian In-Process R&D	6,800,000		—		6,800,000		Indefinite
Total Other Intangible Assets	$	410,755,910	$	(200,946,875)	$	209,809,035
Total Patents & Other Intangible Assets	$	450,152,791	$	(228,785,387)	$	221,367,404

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 Platforms	43,000,000		(43,000,000)		—		10 years
Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite
eSight Technology	12,000,000		—		12,000,000		12 years
eSight Trade Names and Trademarks	870,000		—		870,000		12 years
Vaporsens In-Process R&D	11,000,000		—		11,000,000		Indefinite
Argil In-Process R&D	6,278,132		—		6,278,132		Indefinite
Air-Craftglass In-Process R&D	1,507,778		—		1,507,778		Indefinite
Guardian Trade Names	1,300,000		—		1,300,000		Indefinite
Guardian In-Process R&D	6,800,000		—		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 $4.5 million during the three months ended March 31, 2024, compared to approximately $5.3 million for the same period ended March 31, 2023.

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.

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Investments

3 Months Ended

Mar. 31, 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. 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.

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 $133.9 million as of March 31, 2024, of which $130.4 million and $3.5 million are recorded in long-term investments and short-term investments 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 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 March 31, 2024 and December 31, 2023:

As of March 31, 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	March 31, 2024		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	$	249,004,534	$	249,004,534	$	—	$	—
Short-Term Investments:
Certificate of Deposit	746,125		746,125		—		—
Corporate Bonds	1,955,083		—		1,955,083		—
Government Securities	7,382,970		—		7,382,970		—
Municipal Bonds	1,730,433		—		1,730,433		—
Other	1,477,288		1,477,288		—		—
Long-Term Investments:
Asset Backed Securities	32,561,930		—		32,561,930		—
Certificate of Deposit	748,245		748,245		—		—
Corporate Bonds	66,095,516		—		66,095,516		—
Government Securities	6,781,490		—		6,781,490		—
Municipal Bonds	47,375,455		—		47,375,455		—
Common Stock	27,020,275		27,020,275		—		—
Total	$	442,879,344	$	278,996,467	$	163,882,877	$	—

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 Deposit	994,013		994,013		—		—
Corporate Bonds	1,943,886		—		1,943,886		—
Government Securities	4,759,507		—		4,759,507		—
Municipal Bonds	1,726,658		—		1,726,658		—
Other	1,465,388		1,465,388		—		—
Long-Term Investments:
Asset-backed Securities	27,146,504		—		27,146,504		—
Certificate of Deposit	748,358		748,358		—		—
Corporate Bonds	65,404,340		—		65,404,340		—
Governmental Securities	6,227,129		—		6,227,129		—
Municipal Bonds	56,336,921		—		56,336,921
Common Stock	18,610,519		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 March 31, 2024 and December 31, 2023:

As of March 31, 2024:

			Unrealized
	Cost		Gains		Losses		Market Value
Short-Term Investments:
Certificate of Deposit	$	750,000	$	—	$	(3,875)	$	746,125
Corporate Bonds	1,970,327		—		(15,244)		1,955,083
Government Securities	7,401,456		—		(18,486)		7,382,970
Municipal Bonds	1,749,223		—		(18,790)		1,730,433
Other	1,477,288		—		—		1,477,288
Long-Term Investments:
Asset Backed Securities	32,384,759		363,920		(186,749)		32,561,930
Certificate of Deposit	750,000		—		(1,755)		748,245
Corporate Bonds	67,027,320		319,188		(1,250,992)		66,095,516
Government Securities	6,826,404		—		(44,914)		6,781,490
Municipal Bonds	49,025,853		287,737		(1,938,135)		47,375,455
Common Stock	33,012,386		123,840		(6,115,951)		27,020,275
Total	$	202,375,016	$	1,094,685	$	(9,594,891)	$	193,874,810

As of December 31, 2023:    

			Unrealized
	Cost		Gains		Losses		Market Value
Short-Term Investments:
Certificate of Deposit	$	1,000,000	$	—	$	(5,987)	$	994,013
Corporate Bonds	1,976,195		—		(32,309)		1,943,886
Government Securities	4,754,495		21,141		(16,129)		4,759,507
Municipal Bonds	1,749,038		—		(22,380)		1,726,658
Other	1,465,388		—		—		1,465,388
Long-Term Investments:
Asset-backed Securities	26,923,803		331,847		(109,146)		27,146,504
Certificate of Deposit	750,000				(1,642)		748,358
Corporate Bonds	66,214,398		748,471		(1,558,529)		65,404,340
Government Securities	6,217,774		10,675		(1,320)		6,227,129
Municipal Bonds	58,261,615		811,128		(2,735,822)		56,336,921
Common Stock	17,324,886		1,328,446		(42,813)		18,610,519
Total	$	186,637,592	$	3,251,708	$	(4,526,077)	$	185,363,223

Unrealized losses on investments as of March 31, 2024, are as follows:

	Aggregate Unrealized Losses		Aggregate Fair Value of Investments
Loss duration of less than one year	$	6,442,204	$	67,460,003
Loss duration of greater than one year	3,152,687		60,198,609
Total	$	9,594,891	$	127,658,612

Unrealized losses on investments 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 year	4,400,003		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 March 31, 2024 have contractual maturities as follows:

Due within one year	$	11,814,611
Due between one and five years	87,792,966
Due over five years	65,769,670
	$	165,377,247

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Inventories

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consisted of the following at the respective balance sheet dates:

	March 31, 2024		December 31, 2023
Raw materials	$	307,222,769	$	283,126,566
Work-in-process	45,325,627		46,343,955
Finished goods	83,988,848		73,002,507
Total Inventory	$	436,537,244	$	402,473,028

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Earnings Per Share

3 Months Ended

Mar. 31, 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 months ended March 31, 2024 and March 31, 2023:

	Three Months Ended March 31,
	2024		2023
Basic Earnings Per Share
Net Income	$	108,230,714	$	97,578,261
Less: Dividends and undistributed earnings allocated to participating securities	1,578,908		1,456,913
Net Income available to common shareholders	$	106,651,806	$	96,121,348
Basic weighted average shares outstanding	227,929,048		230,605,626
Net Income per share - Basic	$	0.47	$	0.42
Diluted Earnings Per Share
Allocation of Net Income used in basic computation	$	106,651,806	$	96,121,348
Reallocation of undistributed earnings	2,425		1,276
Net Income available to common shareholders - Diluted	$	106,654,231	$	96,122,624
Number of shares used in basic computation	227,929,048		230,605,626
Additional weighted average dilutive common stock equivalents	479,090		290,220
Diluted weighted average shares outstanding	228,408,138		230,895,846
Net Income per share - Diluted	$	0.47	$	0.42
Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive	409,297		1,810,685

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Stock-Based Compensation Plans

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation Plans

Stock-Based Compensation Plans

As of March 31, 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 $10,487,261 for the three months ended March 31, 2024. The Company recognized compensation expense for share-based payments of $8,519,535 for the three months ended March 31, 2023. 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 March 31, 2024, 10,390,056 share awards have been made under the Plan, resulting in 27,178,740 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 Granted	Conversion Rate	Total Shares Under 2019 Omnibus Plan
Non-Qualified Stock Options	4,903,558	1.00	4,903,558
Restricted Stock	4,480,985	4.06	18,192,799
Performance Shares	1,005,513	4.06	4,082,383
Total	10,390,056		27,178,740

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 March 31, 2024, there was $7,042,117 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 March 31,
	2024		2023
Dividend Yield (1)	1.64	%	1.76	%
Expected volatility (2)	28.29	%	29.04	%
Risk-free interest rate (3)	4.21	%	3.60	%
Expected term of options (years) (4)	4.14		4.15
Weighted-avg. grant date fair value	$9.08		$6.84

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 March 31, 2024, the Company had unearned stock-based compensation of $48,288,792 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 months ended March 31, 2024 was $6,687,341. Compensation expense from restricted stock grants in the three months ended March 31, 2023 was $5,946,054.

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 March 31, 2024, the Company had unearned stock-based compensation of $20,603,455 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 months ended March 31, 2024 was $1,772,630. Compensation expense related to these performance share grants in the three months ended March 31, 2023 was $502,206.

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 months ended March 31, 2024 was $422,846.

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 March 31, 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 March 31, 2024, the Company has issued 321,682 shares under this plan.

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Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 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 March 31,
	2024		2023
Foreign currency translation adjustments:
Balance at beginning of period	$	(4,534,719)	$	(4,032,239)
Other Comprehensive loss before reclassifications	(950,213)		(121,167)
Net current-period change	(950,213)		(121,167)
Balance at end of period	(5,484,932)		(4,153,406)
Unrealized (losses) gains on available-for-sale debt securities:
Balance at beginning of period	(2,022,403)		(10,110,695)
Other Comprehensive (loss) income before reclassifications	(548,457)		277,718
Amounts reclassified from accumulated other comprehensive income	589,466		1,761,886
Net current-period change	41,009		2,039,604
Balance at end of period	(1,981,394)		(8,071,091)
Accumulated other comprehensive loss, end of period	$	(7,466,326)	$	(12,224,497)

The following table presents details of reclassifications out of accumulated other comprehensive loss for the three and three months ended March 31, 2024 and 2023:

Details about Accumulated Other Comprehensive Loss Components	Amounts Reclassified from Other Comprehensive Loss				Affected Line item in the Consolidated Statements of Income
	Three Months Ended March 31,
	2024		2023
Unrealized gains (losses) on available-for-sale debt securities
Realized gain (loss) on sale of securities	$	(746,159)	$	(2,230,236)	Investment income
Provision for income taxes	156,693		468,350		Provision for income taxes
Total net reclassifications for the period	$	(589,466)	$	(1,761,886)

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Debt and Financing Arrangements

3 Months Ended

Mar. 31, 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 March 31, 2024, there was no outstanding balance on the Revolver.

As of March 31, 2024, the Company is in compliance with its covenants under the Credit Agreement.

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Equity

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Equity

Equity

The decrease in common stock during the three months ended March 31, 2024, was primarily due to the repurchases of 1.2 million shares, partially offset by the issuance of 0.9 million shares of the Company’s common stock, net of cancellations, under the Company’s stock-based compensation plans. The total net decrease was 0.3 million shares.

The Company recorded a cash dividend of $0.120 per share during the first quarter of 2024 as compared to a cash dividend of $0.120 per share during the first quarter of 2023. The first quarter 2024 dividend of $27.7 million was declared on March 5, 2024 and was paid on April 17, 2024.

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Contingencies	3 Months Ended
	Mar. 31, 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.

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Segment Reporting

3 Months Ended

Mar. 31, 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 March 31,
	2024		2023
Revenue:
Automotive Products	$	577,602,196	$	537,422,988
Other	12,623,015		13,338,323
Total	$	590,225,211	$	550,761,311
Income (Loss) from operations:
Automotive Products	$	129,546,140	$	111,439,798
Other	(199,828)		1,810,849
Total	$	129,346,312	$	113,250,647

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Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe effective tax rate was 15.2% in the three months ended March 31, 2024, compared to an effective tax rate of 15.9% 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.

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Revenue

3 Months Ended

Mar. 31, 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 month periods ended March 31, 2024 and March 31, 2023:

	Three Months Ended March 31,
Revenue	2024		2023
Automotive Products
U.S.	$	165,140,622	$	170,781,604
Japan	89,004,628		72,155,984
Germany	75,694,888		80,579,465
Korea	53,695,112		23,478,469
Mexico	37,621,163		34,287,544
Other	156,445,783		156,139,922
Total Automotive Products	$	577,602,196	$	537,422,988
Other Products (U.S.)	12,623,015		13,338,323
Total Revenue	$	590,225,211	$	550,761,311

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 month periods ended March 31, 2024 and March 31, 2023:

	Three Months Ended March 31,
Revenue	2024		2023
Automotive Segment
Automotive Mirrors & Electronics	$	550,184,430	$	505,731,576
HomeLink Modules*	27,417,766		31,691,412
Total Automotive Products	$	577,602,196	$	537,422,988
Other Segment
Fire Protection Products	6,836,038		9,301,153
Aerospace Products	5,770,800		4,037,170
Medical Products	16,177		—
Total Other	$	12,623,015	$	13,338,323
*Excludes HomeLink revenue where HomeLink electronics are integrated into interior auto-dimming mirrors.

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Leases

3 Months Ended

Mar. 31, 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 March 31, 2024 was 4 years, with a weighted average discount rate of 6.3%.

Future minimum lease payments for operating leases as of March 31, 2024 were as follows:

Year ending December 31,
2024 (excluding the three months ended March 31, 2024)	$	1,828,676
2025	1,743,522
2026	1,202,399
2027	901,441
2028	662,837
Thereafter	57,651
Total future minimum lease payments	6,396,526
Less imputed interest	(482,318)
Total	$	5,914,208

Reported as of March 31, 2024
Accrued Liabilities	$	2,310,126
Other Non-Current Liabilities	3,604,082
Total	$	5,914,208

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Acquisition

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [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 quarter ended March 31, 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 Property	75,000
Right of Use Asset (Lease)	116,562
ESight Technology	12,000,000
Trade Names and Trademarks	870,000
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

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Adoption of New Accounting Standards (Policies)

3 Months Ended

Mar. 31, 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. 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.

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The carrying value of Goodwill as of both March 31, 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 March 31, 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 March 31, 2024:

Other Intangible Assets	Gross		Accumulated Amortization		Net		Assumed Useful Life
Gentex Patents	$	39,396,881	$	(27,838,512)	$	11,558,369	Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks	$	52,000,000	$	—	$	52,000,000	Indefinite
HomeLink® Technology	180,000,000		(157,500,000)		22,500,000		12 years
Existing Customer Platforms	43,000,000		(43,000,000)		—		10 years
Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite
eSight Technology	12,000,000		(416,667)		11,583,333		12 years
eSight Trade Names and Trademarks	870,000		(30,208)		839,792		12 years
Vaporsens In-Process R&D	11,000,000		—		11,000,000		Indefinite
Argil In-Process R&D	6,278,132		—		6,278,132		Indefinite
Air-Craftglass In-Process R&D	1,507,778		—		1,507,778		Indefinite
Guardian Trade Names	1,300,000		—		1,300,000		Indefinite
Guardian In-Process R&D	6,800,000		—		6,800,000		Indefinite
Total Other Intangible Assets	$	410,755,910	$	(200,946,875)	$	209,809,035
Total Patents & Other Intangible Assets	$	450,152,791	$	(228,785,387)	$	221,367,404

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 Platforms	43,000,000		(43,000,000)		—		10 years
Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite
eSight Technology	12,000,000		—		12,000,000		12 years
eSight Trade Names and Trademarks	870,000		—		870,000		12 years
Vaporsens In-Process R&D	11,000,000		—		11,000,000		Indefinite
Argil In-Process R&D	6,278,132		—		6,278,132		Indefinite
Air-Craftglass In-Process R&D	1,507,778		—		1,507,778		Indefinite
Guardian Trade Names	1,300,000		—		1,300,000		Indefinite
Guardian In-Process R&D	6,800,000		—		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

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Investments (Tables)

3 Months Ended

Mar. 31, 2024

Investments [Abstract]

Schedule of Investment Securities Stated at Fair Value

As of March 31, 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	March 31, 2024		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	$	249,004,534	$	249,004,534	$	—	$	—
Short-Term Investments:
Certificate of Deposit	746,125		746,125		—		—
Corporate Bonds	1,955,083		—		1,955,083		—
Government Securities	7,382,970		—		7,382,970		—
Municipal Bonds	1,730,433		—		1,730,433		—
Other	1,477,288		1,477,288		—		—
Long-Term Investments:
Asset Backed Securities	32,561,930		—		32,561,930		—
Certificate of Deposit	748,245		748,245		—		—
Corporate Bonds	66,095,516		—		66,095,516		—
Government Securities	6,781,490		—		6,781,490		—
Municipal Bonds	47,375,455		—		47,375,455		—
Common Stock	27,020,275		27,020,275		—		—
Total	$	442,879,344	$	278,996,467	$	163,882,877	$	—

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 Deposit	994,013		994,013		—		—
Corporate Bonds	1,943,886		—		1,943,886		—
Government Securities	4,759,507		—		4,759,507		—
Municipal Bonds	1,726,658		—		1,726,658		—
Other	1,465,388		1,465,388		—		—
Long-Term Investments:
Asset-backed Securities	27,146,504		—		27,146,504		—
Certificate of Deposit	748,358		748,358		—		—
Corporate Bonds	65,404,340		—		65,404,340		—
Governmental Securities	6,227,129		—		6,227,129		—
Municipal Bonds	56,336,921		—		56,336,921
Common Stock	18,610,519		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 March 31, 2024 and December 31, 2023:

As of March 31, 2024:

			Unrealized
	Cost		Gains		Losses		Market Value
Short-Term Investments:
Certificate of Deposit	$	750,000	$	—	$	(3,875)	$	746,125
Corporate Bonds	1,970,327		—		(15,244)		1,955,083
Government Securities	7,401,456		—		(18,486)		7,382,970
Municipal Bonds	1,749,223		—		(18,790)		1,730,433
Other	1,477,288		—		—		1,477,288
Long-Term Investments:
Asset Backed Securities	32,384,759		363,920		(186,749)		32,561,930
Certificate of Deposit	750,000		—		(1,755)		748,245
Corporate Bonds	67,027,320		319,188		(1,250,992)		66,095,516
Government Securities	6,826,404		—		(44,914)		6,781,490
Municipal Bonds	49,025,853		287,737		(1,938,135)		47,375,455
Common Stock	33,012,386		123,840		(6,115,951)		27,020,275
Total	$	202,375,016	$	1,094,685	$	(9,594,891)	$	193,874,810

As of December 31, 2023:    

			Unrealized
	Cost		Gains		Losses		Market Value
Short-Term Investments:
Certificate of Deposit	$	1,000,000	$	—	$	(5,987)	$	994,013
Corporate Bonds	1,976,195		—		(32,309)		1,943,886
Government Securities	4,754,495		21,141		(16,129)		4,759,507
Municipal Bonds	1,749,038		—		(22,380)		1,726,658
Other	1,465,388		—		—		1,465,388
Long-Term Investments:
Asset-backed Securities	26,923,803		331,847		(109,146)		27,146,504
Certificate of Deposit	750,000				(1,642)		748,358
Corporate Bonds	66,214,398		748,471		(1,558,529)		65,404,340
Government Securities	6,217,774		10,675		(1,320)		6,227,129
Municipal Bonds	58,261,615		811,128		(2,735,822)		56,336,921
Common Stock	17,324,886		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 Investments

Unrealized losses on investments as of March 31, 2024, are as follows:

	Aggregate Unrealized Losses		Aggregate Fair Value of Investments
Loss duration of less than one year	$	6,442,204	$	67,460,003
Loss duration of greater than one year	3,152,687		60,198,609
Total	$	9,594,891	$	127,658,612

Unrealized losses on investments 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 year	4,400,003		76,966,258
Total	$	4,526,077	$	90,415,850

Schedule of Investments Classified by Contractual Maturity Date

Fixed income securities as of March 31, 2024 have contractual maturities as follows:

Due within one year	$	11,814,611
Due between one and five years	87,792,966
Due over five years	65,769,670
	$	165,377,247

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Inventories (Tables)

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following at the respective balance sheet dates:

	March 31, 2024		December 31, 2023
Raw materials	$	307,222,769	$	283,126,566
Work-in-process	45,325,627		46,343,955
Finished goods	83,988,848		73,002,507
Total Inventory	$	436,537,244	$	402,473,028

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 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 months ended March 31, 2024 and March 31, 2023:

	Three Months Ended March 31,
	2024		2023
Basic Earnings Per Share
Net Income	$	108,230,714	$	97,578,261
Less: Dividends and undistributed earnings allocated to participating securities	1,578,908		1,456,913
Net Income available to common shareholders	$	106,651,806	$	96,121,348
Basic weighted average shares outstanding	227,929,048		230,605,626
Net Income per share - Basic	$	0.47	$	0.42
Diluted Earnings Per Share
Allocation of Net Income used in basic computation	$	106,651,806	$	96,121,348
Reallocation of undistributed earnings	2,425		1,276
Net Income available to common shareholders - Diluted	$	106,654,231	$	96,122,624
Number of shares used in basic computation	227,929,048		230,605,626
Additional weighted average dilutive common stock equivalents	479,090		290,220
Diluted weighted average shares outstanding	228,408,138		230,895,846
Net Income per share - Diluted	$	0.47	$	0.42
Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive	409,297		1,810,685

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Stock-Based Compensation Plans (Tables)

3 Months Ended

Mar. 31, 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 Granted	Conversion Rate	Total Shares Under 2019 Omnibus Plan
Non-Qualified Stock Options	4,903,558	1.00	4,903,558
Restricted Stock	4,480,985	4.06	18,192,799
Performance Shares	1,005,513	4.06	4,082,383
Total	10,390,056		27,178,740

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 March 31,
	2024		2023
Dividend Yield (1)	1.64	%	1.76	%
Expected volatility (2)	28.29	%	29.04	%
Risk-free interest rate (3)	4.21	%	3.60	%
Expected term of options (years) (4)	4.14		4.15
Weighted-avg. grant date fair value	$9.08		$6.84

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.

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Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 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 March 31,
	2024		2023
Foreign currency translation adjustments:
Balance at beginning of period	$	(4,534,719)	$	(4,032,239)
Other Comprehensive loss before reclassifications	(950,213)		(121,167)
Net current-period change	(950,213)		(121,167)
Balance at end of period	(5,484,932)		(4,153,406)
Unrealized (losses) gains on available-for-sale debt securities:
Balance at beginning of period	(2,022,403)		(10,110,695)
Other Comprehensive (loss) income before reclassifications	(548,457)		277,718
Amounts reclassified from accumulated other comprehensive income	589,466		1,761,886
Net current-period change	41,009		2,039,604
Balance at end of period	(1,981,394)		(8,071,091)
Accumulated other comprehensive loss, end of period	$	(7,466,326)	$	(12,224,497)

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 three months ended March 31, 2024 and 2023:

Details about Accumulated Other Comprehensive Loss Components	Amounts Reclassified from Other Comprehensive Loss				Affected Line item in the Consolidated Statements of Income
	Three Months Ended March 31,
	2024		2023
Unrealized gains (losses) on available-for-sale debt securities
Realized gain (loss) on sale of securities	$	(746,159)	$	(2,230,236)	Investment income
Provision for income taxes	156,693		468,350		Provision for income taxes
Total net reclassifications for the period	$	(589,466)	$	(1,761,886)

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 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 March 31,
	2024		2023
Revenue:
Automotive Products	$	577,602,196	$	537,422,988
Other	12,623,015		13,338,323
Total	$	590,225,211	$	550,761,311
Income (Loss) from operations:
Automotive Products	$	129,546,140	$	111,439,798
Other	(199,828)		1,810,849
Total	$	129,346,312	$	113,250,647

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Revenue (Tables)

3 Months Ended

Mar. 31, 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 month periods ended March 31, 2024 and March 31, 2023:

	Three Months Ended March 31,
Revenue	2024		2023
Automotive Products
U.S.	$	165,140,622	$	170,781,604
Japan	89,004,628		72,155,984
Germany	75,694,888		80,579,465
Korea	53,695,112		23,478,469
Mexico	37,621,163		34,287,544
Other	156,445,783		156,139,922
Total Automotive Products	$	577,602,196	$	537,422,988
Other Products (U.S.)	12,623,015		13,338,323
Total Revenue	$	590,225,211	$	550,761,311

The following table disaggregates the Company’s Automotive revenue and Other revenue by major source for the three month periods ended March 31, 2024 and March 31, 2023:

	Three Months Ended March 31,
Revenue	2024		2023
Automotive Segment
Automotive Mirrors & Electronics	$	550,184,430	$	505,731,576
HomeLink Modules*	27,417,766		31,691,412
Total Automotive Products	$	577,602,196	$	537,422,988
Other Segment
Fire Protection Products	6,836,038		9,301,153
Aerospace Products	5,770,800		4,037,170
Medical Products	16,177		—
Total Other	$	12,623,015	$	13,338,323
*Excludes HomeLink revenue where HomeLink electronics are integrated into interior auto-dimming mirrors.

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Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Schedule of Future Minimum Lease Payments

Future minimum lease payments for operating leases as of March 31, 2024 were as follows:

Year ending December 31,
2024 (excluding the three months ended March 31, 2024)	$	1,828,676
2025	1,743,522
2026	1,202,399
2027	901,441
2028	662,837
Thereafter	57,651
Total future minimum lease payments	6,396,526
Less imputed interest	(482,318)
Total	$	5,914,208

Schedule of Lease Liabilities

Reported as of March 31, 2024
Accrued Liabilities	$	2,310,126
Other Non-Current Liabilities	3,604,082
Total	$	5,914,208

XML

Acquisition (Tables)

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [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 Property	75,000
Right of Use Asset (Lease)	116,562
ESight Technology	12,000,000
Trade Names and Trademarks	870,000
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

XML

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended				12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023		Mar. 31, 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]
Acquisitions	0
Amortization of intangible assets	4,500,000			$ 5,300,000
Total Patents & Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Amortization expense, remainder of fiscal year	18,000,000
Amortization expense, year 2025	15,000,000
Amortization expense, year 2026	3,000,000
Amortization expense, year 2027	3,000,000
Amortization expense, year 2028	$ 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.

XML

Goodwill and Other Intangible Assets - Schedule of Goodwill (Details)	3 Months Ended
	Mar. 31, 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.

XML

Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 209,809,035	$ 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	39,396,881	39,199,107
Accumulated Amortization	(27,838,512)	(27,769,803)
Net	11,558,369	11,429,304
Total Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Accumulated Amortization	(200,946,875)	(196,750,000)
Intangible assets, gross	410,755,910	410,755,910
Intangible assets, net	209,809,035	214,005,910
Technology | HomeLink®
Finite-Lived Intangible Assets [Line Items]
Gross	180,000,000	180,000,000
Accumulated Amortization	(157,500,000)	(153,750,000)
Net	$ 22,500,000	$ 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	(416,667)
Net	$ 11,583,333	$ 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	(30,208)
Net	$ 839,792	$ 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	$ 450,152,791	$ 449,955,017
Total Patents & Other Intangible Assets, Accumulated Amortization	(228,785,387)	(224,519,803)
Total Patents & Other Intangible Assets, Net	$ 221,367,404	$ 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.

XML

Investments - Narrative (Details) $ / shares in Units, $ in Millions	Mar. 31, 2024 USD ($)	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	$ 133.9		$ 128.0
Long-term Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Technology investments	130.4		124.6
Short-Term Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Technology investments	$ 3.5		$ 3.4
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

XML

Investments - Schedule of Assets or Liabilities, Recurring Fair Value Measurements (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & Cash Equivalents	$ 249,004,534	$ 226,435,019
Investments	193,874,810	185,363,223
Total	442,879,344	411,798,242
Short-Term Investments | Certificate of Deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	746,125	994,013
Short-Term Investments | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	1,955,083	1,943,886
Short-Term Investments | Government Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	7,382,970	4,759,507
Short-Term Investments | Municipal Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	1,730,433	1,726,658
Short-Term Investments | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	1,477,288	1,465,388
Long-Term Investments | Asset Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	32,561,930	27,146,504
Long-Term Investments | Certificate of Deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	748,245	748,358
Long-Term Investments | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	66,095,516	65,404,340
Long-Term Investments | Government Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	6,781,490	6,227,129
Long-Term Investments | Municipal Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	47,375,455	56,336,921
Long-Term Investments | Common Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	27,020,275	18,610,519
(Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & Cash Equivalents	249,004,534	226,435,019
Total	278,996,467	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	746,125	994,013
(Level 1) | Short-Term Investments | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	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	1,477,288	1,465,388
(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 | Certificate of Deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	748,245	748,358
(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	27,020,275	18,610,519
(Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & Cash Equivalents	0	0
Total	163,882,877	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	1,955,083	1,943,886
(Level 2) | Short-Term Investments | Government Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	7,382,970	4,759,507
(Level 2) | Short-Term Investments | Municipal Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	1,730,433	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 | Asset Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	32,561,930	27,146,504
(Level 2) | Long-Term Investments | Certificate of Deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
(Level 2) | Long-Term Investments | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	66,095,516	65,404,340
(Level 2) | Long-Term Investments | Government Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	6,781,490	6,227,129
(Level 2) | Long-Term Investments | Municipal Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	47,375,455	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	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 | Asset Backed Securities
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	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

XML

Investments - Schedule of Amortized Cost, Unrealized Gains and Losses, and Market Value of Investment Securities (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Cost	$ 202,375,016	$ 186,637,592
Unrealized Gains	1,094,685	3,251,708
Unrealized Losses	(9,594,891)	(4,526,077)
Market Value	193,874,810	185,363,223
Short-Term Investments | Certificate of Deposit
Debt Securities, Available-for-sale [Line Items]
Cost	750,000	1,000,000
Unrealized Gains	0	0
Unrealized Losses	(3,875)	(5,987)
Market Value	746,125	994,013
Short-Term Investments | Corporate Bonds
Debt Securities, Available-for-sale [Line Items]
Cost	1,970,327	1,976,195
Unrealized Gains	0	0
Unrealized Losses	(15,244)	(32,309)
Market Value	1,955,083	1,943,886
Short-Term Investments | Government Securities
Debt Securities, Available-for-sale [Line Items]
Cost	7,401,456	4,754,495
Unrealized Gains	0	21,141
Unrealized Losses	(18,486)	(16,129)
Market Value	7,382,970
Short-Term Investments | Municipal Bonds
Debt Securities, Available-for-sale [Line Items]
Cost	1,749,223	1,749,038
Unrealized Gains	0	0
Unrealized Losses	(18,790)	(22,380)
Market Value	1,730,433
Short-Term Investments | Other
Debt Securities, Available-for-sale [Line Items]
Cost	1,477,288	1,465,388
Unrealized Gains	0	0
Unrealized Losses	0	0
Market Value	1,477,288	1,465,388
Long-Term Investments | Asset Backed Securities
Debt Securities, Available-for-sale [Line Items]
Cost	32,384,759	26,923,803
Unrealized Gains	363,920	331,847
Unrealized Losses	(186,749)	(109,146)
Market Value	32,561,930	27,146,504
Long-Term Investments | Certificate of Deposit
Debt Securities, Available-for-sale [Line Items]
Cost	750,000	750,000
Unrealized Gains	0
Unrealized Losses	(1,755)	(1,642)
Market Value	748,245	748,358
Long-Term Investments | Corporate Bonds
Debt Securities, Available-for-sale [Line Items]
Cost	67,027,320	66,214,398
Unrealized Gains	319,188	748,471
Unrealized Losses	(1,250,992)	(1,558,529)
Market Value	66,095,516	65,404,340
Long-Term Investments | Government Securities
Debt Securities, Available-for-sale [Line Items]
Cost	6,826,404	6,217,774
Unrealized Gains	0	10,675
Unrealized Losses	(44,914)	(1,320)
Market Value	6,781,490	6,227,129
Long-Term Investments | Municipal Bonds
Debt Securities, Available-for-sale [Line Items]
Cost	49,025,853	58,261,615
Unrealized Gains	287,737	811,128
Unrealized Losses	(1,938,135)	(2,735,822)
Market Value	47,375,455	56,336,921
Long-Term Investments | Common Stock
Debt Securities, Available-for-sale [Line Items]
Cost	33,012,386	17,324,886
Unrealized Gains	123,840	1,328,446
Unrealized Losses	(6,115,951)	(42,813)
Market Value	$ 27,020,275	$ 18,610,519

XML

Investments - Schedule of Unrealized Loss on Investment (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Aggregate Unrealized Losses
Loss duration of less than one year	$ 6,442,204	$ 126,074
Loss duration of greater than one year	3,152,687	4,400,003
Total	9,594,891	4,526,077
Aggregate Fair Value of Investments
Loss duration of less than one year	67,460,003	13,449,592
Loss duration of greater than one year	60,198,609	76,966,258
Total	$ 127,658,612	$ 90,415,850

XML

Investments - Schedule of Investments Classified by Contractual Maturity Date (Details) - Fixed Income Securities	Mar. 31, 2024 USD ($)
Debt Securities, Available-for-sale [Line Items]
Due within one year	$ 11,814,611
Due between one and five years	87,792,966
Due over five years	65,769,670
Total	$ 165,377,247

XML

Inventories (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 307,222,769	$ 283,126,566
Work-in-process	45,325,627	46,343,955
Finished goods	83,988,848	73,002,507
Total Inventory	$ 436,537,244	$ 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.

XML

Earnings Per Share (Details) - USD ($)		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Basic Earnings Per Share
Net income		$ 108,230,714	$ 97,578,261
Less: Dividends and undistributed earnings allocated to participating securities		1,578,908	1,456,913
Net Income available to common shareholders		$ 106,651,806	$ 96,121,348
Basic weighted average shares outstanding (in shares)		227,929,048	230,605,626
Net income per share - Basic (in dollars per share)	[1]	$ 0.47	$ 0.42
Diluted Earnings Per Share
Allocation of Net Income used in basic computation		$ 106,651,806	$ 96,121,348
Reallocation of undistributed earnings		2,425	1,276
Net Income available to common shareholders - Diluted		$ 106,654,231	$ 96,122,624
Number of shares used in basic computation (in shares)		227,929,048	230,605,626
Additional weighted average dilutive common stock equivalents (in shares)		479,090	290,220
Diluted weighted average shares outstanding (in shares)		228,408,138	230,895,846
Net Income per share - Diluted (in dollars per share)	[1]	$ 0.47	$ 0.42
Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive (in shares)		409,297	1,810,685

[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.

XML

Stock-Based Compensation Plans - Narrative (Details)		1 Months Ended	3 Months Ended
	Jun. 30, 2022 shares	May 31, 2022 shares	Mar. 31, 2024 USD ($) plan shares	Mar. 31, 2023 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense for share-based payments | $			$ 10,487,261	$ 8,519,535
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)			10,390,056
Shares issued under the omnibus plan (in shares)			27,178,740
Number of shares authorized (in shares)			45,000,000
Employee Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost | $			$ 7,042,117
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 | $			$ 48,288,792
Restricted period, maximum			10 years
Amortization expense | $			$ 6,687,341	5,946,054
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)			321,682
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
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense for share-based payments | $			$ 1,772,630	$ 502,206
Unrecognized compensation cost | $			$ 20,603,455
Performance Shares | Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued under the omnibus plan (in shares)			4,082,383
Performance Share Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense for share-based payments | $			$ 422,846
Option vesting period			4 years

XML

Stock-Based Compensation Plans - Schedule of Shares Issued Net of Shares Canceled/Expired (Details) - Omnibus Incentive Plan	3 Months Ended
	Mar. 31, 2024 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total grants in period (in shares)	10,390,056
Shares issued under the omnibus plan (in shares)	27,178,740
Non-Qualified Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Shares, granted (in shares)	4,903,558
Conversion rate, options	1.00
Shares issued under the omnibus plan (in shares)	4,903,558
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)	4,480,985
Conversion rate, shares	4.06
Shares issued under the omnibus plan (in shares)	18,192,799
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)	1,005,513
Conversion rate, shares	4.06
Shares issued under the omnibus plan (in shares)	4,082,383

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Stock-Based Compensation Plans - Schedule of Weighted-Average Assumptions for the ESOP (Details) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Dividend yield	1.64%	1.76%
Expected volatility	28.29%	29.04%
Risk-free interest rate	4.21%	3.60%
Expected term of options (years)	4 years 1 month 20 days	4 years 1 month 24 days
Weighted average grant-date fair value (in dollars per share)	$ 9.08	$ 6.84

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Comprehensive Income (Loss) - Schedule of AOCI Rollforward (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024		Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ 2,312,517,069	[1]	$ 2,065,792,821
Other comprehensive (loss) income, net of tax	(909,204)		1,918,437
Ending Balance	2,376,363,789		2,123,255,646
Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(6,557,122)		(14,142,934)
Ending Balance	(7,466,326)		(12,224,497)
Foreign currency translation adjustments:
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(4,534,719)		(4,032,239)
Other Comprehensive (loss) income before reclassifications	(950,213)		(121,167)
Other comprehensive (loss) income, net of tax	(950,213)		(121,167)
Ending Balance	(5,484,932)		(4,153,406)
Unrealized (losses) gains on available-for-sale debt securities:
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(2,022,403)		(10,110,695)
Other Comprehensive (loss) income before reclassifications	(548,457)		277,718
Amounts reclassified from accumulated other comprehensive income	589,466		1,761,886
Other comprehensive (loss) income, net of tax	41,009		2,039,604
Ending Balance	$ (1,981,394)		$ (8,071,091)

[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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Comprehensive Income (Loss) - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]
Realized gain (loss) on sale of securities	$ 1,670,139	$ (194,740)
Provision for income taxes	(19,417,213)	(18,416,841)
Total net reclassifications for the period	108,230,714	97,578,261
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	(746,159)	(2,230,236)
Provision for income taxes	156,693	468,350
Total net reclassifications for the period	$ (589,466)	$ (1,761,886)

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Debt and Financing Arrangements (Details) - USD ($)	Feb. 21, 2023	Mar. 31, 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

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Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended
	Mar. 05, 2024	Mar. 31, 2024	Mar. 31, 2023
Equity [Abstract]
Stock repurchased (in shares)		1.2
Common stock issued under stock compensation plan (in shares)		0.9
Net decrease in period (in shares)		0.3
Dividends declared (in dollars per share)		$ 0.12	$ 0.12
Dividends	$ 27.7

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Segment Reporting - Narrative (Details)	3 Months Ended
	Mar. 31, 2024 segment
Other
Segment Reporting Information [Line Items]
Number of non-automotive combined segments	4

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Segment Reporting - Schedule of Segment Reporting (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Revenue:	$ 590,225,211	$ 550,761,311
Income (Loss) from operations:	129,346,312	113,250,647
Automotive Products
Segment Reporting Information [Line Items]
Revenue:	577,602,196	537,422,988
Income (Loss) from operations:	129,546,140	111,439,798
Other
Segment Reporting Information [Line Items]
Revenue:	12,623,015	13,338,323
Income (Loss) from operations:	$ (199,828)	$ 1,810,849

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Income Taxes (Details)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	15.20%	15.90%

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Revenue (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total Revenue	$ 590,225,211	$ 550,761,311
Other Segment
Disaggregation of Revenue [Line Items]
Total Revenue	12,623,015	13,338,323
Automotive Products
Disaggregation of Revenue [Line Items]
Total Revenue	577,602,196	537,422,988
Automotive Products | Automotive Segment
Disaggregation of Revenue [Line Items]
Total Revenue	577,602,196	537,422,988
Automotive Products | U.S.
Disaggregation of Revenue [Line Items]
Total Revenue	165,140,622	170,781,604
Automotive Products | Japan
Disaggregation of Revenue [Line Items]
Total Revenue	89,004,628	72,155,984
Automotive Products | Germany
Disaggregation of Revenue [Line Items]
Total Revenue	75,694,888	80,579,465
Automotive Products | Korea
Disaggregation of Revenue [Line Items]
Total Revenue	53,695,112	23,478,469
Automotive Products | Mexico
Disaggregation of Revenue [Line Items]
Total Revenue	37,621,163	34,287,544
Automotive Products | Other
Disaggregation of Revenue [Line Items]
Total Revenue	156,445,783	156,139,922
Automotive Mirrors & Electronics | Automotive Segment
Disaggregation of Revenue [Line Items]
Total Revenue	550,184,430	505,731,576
HomeLink Modules | Automotive Segment
Disaggregation of Revenue [Line Items]
Total Revenue	27,417,766	31,691,412
Other Products | U.S.
Disaggregation of Revenue [Line Items]
Total Revenue	12,623,015	13,338,323
Fire Protection Products | Other Segment
Disaggregation of Revenue [Line Items]
Total Revenue	6,836,038	9,301,153
Aerospace Products | Other Segment
Disaggregation of Revenue [Line Items]
Total Revenue	5,770,800	4,037,170
Medical Products | Other Segment
Disaggregation of Revenue [Line Items]
Total Revenue	$ 16,177	$ 0

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Leases - Narrative (Details)	Mar. 31, 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

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Leases - Schedule of Future Minimum Lease Payments (Details)	Mar. 31, 2024 USD ($)
Leases [Abstract]
2024 (excluding the three months ended March 31, 2024)	$ 1,828,676
2025	1,743,522
2026	1,202,399
2027	901,441
2028	662,837
Thereafter	57,651
Total future minimum lease payments	6,396,526
Less imputed interest	(482,318)
Total	5,914,208
Accrued Liabilities	$ 2,310,126
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued liabilities
Other Non-Current Liabilities	$ 3,604,082
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	OTHER NON-CURRENT LIABILITIES

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Acquisition - Narrative (Details) - eSight Corporation $ in Millions	Nov. 02, 2023 USD ($)
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

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Acquisition - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($)	Mar. 31, 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 | Technology
Business Acquisition [Line Items]
Intangible assets				12,000,000
eSight Corporation | Trademarks and Trade Names
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.