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

FORM 10-Q 
(Mark one)
☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022 or

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

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

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

Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes:  ☐  No:   þ
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes:  o No:  o
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
Shares Outstanding, July 22, 2022
Common Stock, $.06 Par Value
235,129,597

1

GENTEX CORPORATION AND SUBSIDIARIES
For the Three and Six Months Ended June 30, 2022
FORM 10-Q
Index
Part I - Financial Information
Page
Item 1.
Item 2.
Item 3.
Item 4.
Part II - Other Information
Item 1A.
Item 2.
Item 6.


2

PART I —FINANCIAL INFORMATION
Item 1. Unaudited Condensed Consolidated Financial Statements.
GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of June 30, 2022 and December 31, 2021
June 30, 2022 (Unaudited)
December 31, 2021
(Note)
ASSETS
CURRENT ASSETS
Cash and cash equivalents$269,372,471 $262,311,670 
Short-term investments11,992,154 5,423,612 
Accounts receivable, net274,404,572 249,794,906 
Inventories392,577,825 316,267,442 
Prepaid expenses and other43,539,709 39,178,119 
Total current assets991,886,731 872,975,749 
PLANT AND EQUIPMENT—NET488,913,960 464,121,676 
OTHER ASSETS
Goodwill313,857,650 313,960,209 
Long-term investments157,704,267 207,693,147 
Equity method investments39,940,046 — 
Intangible assets, net229,010,910 239,189,627 
Patents and other assets, net63,140,670 33,450,758 
Total other assets803,653,543 794,293,741 
Total assets$2,284,454,234 $2,131,391,166 
LIABILITIES AND SHAREHOLDERS’ INVESTMENT
CURRENT LIABILITIES
Accounts payable$186,623,085 $98,342,928 
Accrued liabilities99,548,802 83,313,172 
Total current liabilities286,171,887 181,656,100 
OTHER NON-CURRENT LIABILITIES11,707,867 11,746,599 
Total liabilities297,879,754 193,402,699 
SHAREHOLDERS’ INVESTMENT
Common stock14,107,936 14,186,450 
Additional paid-in capital900,576,404 879,413,385 
Retained earnings1,082,846,019 1,042,461,388 
Accumulated other comprehensive (loss) income(10,955,879)1,927,244 
Total shareholders’ investment1,986,574,480 1,937,988,467 
Total liabilities and shareholders’ investment$2,284,454,234 $2,131,391,166 

Note: The condensed consolidated balance sheet at December 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
3

GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three and Six Months Ended June 30, 2022 and 2021
 
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
NET SALES
$463,423,002 $428,005,026 $931,673,777 $911,729,865 
COST OF GOODS SOLD
315,055,988 276,408,285 622,894,804 576,832,956 
Gross profit148,367,014 151,596,741 308,778,973 334,896,909 
OPERATING EXPENSES:
Engineering, research and development32,857,419 29,059,058 64,832,406 56,711,139 
Selling, general & administrative29,718,626 22,613,062 54,849,694 44,527,448 
Total operating expenses62,576,045 51,672,120 119,682,100 101,238,587 
Income from operations85,790,969 99,924,621 189,096,873 233,658,322 
OTHER (LOSS) INCOME
Investment income920,284 903,139 1,708,600 1,926,549 
Other (loss) income, net(1,903,269)987,959 (2,702,079)1,497,584 
Total other (loss) income(982,985)1,891,098 (993,479)3,424,133 
INCOME BEFORE PROVISION FOR INCOME TAXES84,807,984 101,815,719 188,103,394 237,082,455 
PROVISION FOR INCOME TAXES12,403,581 15,309,301 28,170,366 37,125,167 
NET INCOME$72,404,403 $86,506,418 $159,933,028 $199,957,288 
EARNINGS PER SHARE: (1)
Basic$0.31 $0.36 $0.68 $0.83 
Diluted$0.31 $0.36 $0.68 $0.82 
Cash Dividends Declared per Share$0.120 $0.120 $0.240 $0.240 
(1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards.

4

GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three and Six Months Ended June 30, 2022 and 2021
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Net income$72,404,403 $86,506,418 $159,933,028 $199,957,288 
Other comprehensive (loss) income before tax:
Foreign currency translation adjustments(3,131,326)963,199 (4,027,746)110,787 
Unrealized (losses) gains on debt securities, net(3,414,108)1,705,281 (11,209,338)(3,413,672)
Other comprehensive (loss) income, before tax(6,545,434)2,668,480 (15,237,084)(3,302,885)
Income tax impact related to components of other comprehensive (loss) income(716,963)358,109 (2,353,961)(716,871)
Other comprehensive (loss) income, net of tax(5,828,471)2,310,371 (12,883,123)(2,586,014)
Comprehensive income$66,575,932 $88,816,789 $147,049,905 $197,371,274 

5


GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT
For the Three Months Ended June 30, 2022 and 2021
Common 
Stock
Shares		Common 
Stock
Amount		Additional 
Paid-In
Capital		Retained 
Earnings		Accumulated 
Other
Comprehensive
Income (Loss)		Total 
Shareholders’
Investment
BALANCE AS OF APRIL 1, 2022234,477,338 $14,068,640 $881,371,438 $1,038,656,230 $(5,127,408)$1,928,968,900 
Issuance of common stock from stock plan transactions492,494 29,550 5,641,470 — — 5,671,020 
Issuance of common stock for equity investment purchases162,433 9,7464,990,266 — — 5,000,012 
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock— — 8,573,230 — — 8,573,230 
Dividends declared ($0.12 per share)
— — — (28,214,614)— (28,214,614)
Net income— — — 72,404,403 — 72,404,403 
Other comprehensive loss— — — — (5,828,471)(5,828,471)
BALANCE AS OF JUNE 30, 2022235,132,265 $14,107,936 $900,576,404 $1,082,846,019 $(10,955,879)$1,986,574,480 
BALANCE AS OF APRIL 1, 2021241,538,824 $14,492,329 $859,355,232 $1,085,178,486 $1,954,667 $1,960,980,714 
Issuance of common stock from stock plan transactions838,896 50,334 4,340,710 — — 4,391,044 
Repurchases of common stock(3,411,131)(204,668)(10,745,063)(104,971,348)— (115,921,079)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock— — 6,727,513 — — 6,727,513 
Dividends declared ($0.12 per share)
— — — (28,675,992)— (28,675,992)
Net income— — — 86,506,418 — 86,506,418 
Other comprehensive income— — — — 2,310,371 2,310,371 
BALANCE AS OF JUNE 30, 2021238,966,589 $14,337,995 $859,678,392 $1,038,037,564 $4,265,038 $1,916,318,989 

6


GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT
For the Six Months Ended June 30, 2022 and 2021
Common 
Stock
Shares		Common 
Stock
Amount		Additional 
Paid-In
Capital		Retained 
Earnings		Accumulated 
Other
Comprehensive
(Loss) Income		Total 
Shareholders’
Investment
BALANCE AS OF JANUARY 1, 2022236,440,840 $14,186,450 $879,413,385 $1,042,461,388 $1,927,244 $1,937,988,467 
Issuance of common stock from stock plan transactions969,182 58,151 8,937,016 — — 8,995,167 
Issuance of common stock for equity investment purchases162,433 9,7464,990,266 — — 5,000,012 
Repurchases of common stock(2,440,190)(146,411)(8,125,830)(62,979,781)— (71,252,022)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock— — 15,361,567 — — 15,361,567 
Dividends declared ($0.24 per share)
— — — (56,568,616)— (56,568,616)
Net income— — — 159,933,028 — 159,933,028 
Other comprehensive loss— — — — (12,883,123)(12,883,123)
BALANCE AS OF JUNE 30, 2022235,132,265 $14,107,936 $900,576,404 $1,082,846,019 $(10,955,879)$1,986,574,480 
BALANCE AS OF JANUARY 1, 2021243,692,869 $14,621,572 $852,771,508 $1,089,698,996 $6,851,052 $1,963,943,128 
Issuance of common stock from stock plan transactions1,439,916 86,395 13,570,489 — — 13,656,884 
Repurchases of common stock(6,166,196)(369,972)(19,285,763)(193,958,107)— (213,613,842)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock— — 12,622,158 — — 12,622,158 
Dividends declared ($0.24 per share)
— — — (57,660,613)— (57,660,613)
Net income— — — 199,957,288 — 199,957,288 
Other comprehensive loss— — — — (2,586,014)(2,586,014)
BALANCE AS OF JUNE 30, 2021238,966,589 $14,337,995 $859,678,392 $1,038,037,564 $4,265,038 $1,916,318,989 

7

GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2022 and 2021
20222021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$159,933,028 $199,957,288 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization50,052,518 51,497,665 
(Gain) on disposal of assets(45,214)(19,891)
Loss on disposal of assets11,776 133,036 
(Gain) on sale of investments(391,378)(969,971)
Loss on sale of investments989,196 192,346 
Change in deferred income taxes5,044,744 (3,546,862)
Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock15,361,567 12,622,158 
Change in operating assets and liabilities:
Accounts receivable, net(24,609,666)50,784,339 
Inventories(76,310,383)(37,608,133)
Prepaid expenses and other(6,035,375)(41,394,722)
Accounts payable48,905,968 16,477,865 
Accrued liabilities, excluding dividends declared and short-term debt16,354,262 4,117,051 
Net cash provided by operating activities189,261,043 252,242,169 
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Activity in available-for-sale securities:
Sales proceeds37,429,595 34,250,068 
Maturities and calls3,000,000 16,685,000 
Purchases(19,506,446)(71,596,074)
Purchase of equity method investments(24,250,000)— 
Plant and equipment additions(57,998,319)(31,352,443)
Proceeds from sale of plant and equipment44,881 99,850 
Acquisition of businesses, net of cash acquired— (12,023,440)
Increase in other assets(1,937,117)(458,637)
Net cash used for investing activities(63,217,406)(64,395,676)
CASH FLOWS USED FOR FINANCING ACTIVITIES:
Issuance of common stock from stock plan transactions8,995,167 13,656,884 
Cash dividends paid(56,725,981)(58,227,768)
Repurchases of common stock(71,252,022)(213,613,842)
Net cash used for financing activities(118,982,836)(258,184,726)
NET INCREASE IN CASH AND CASH EQUIVALENTS7,060,801 (70,338,233)
CASH AND CASH EQUIVALENTS, beginning of period262,311,670 423,371,036 
CASH AND CASH EQUIVALENTS, end of period$269,372,471 $353,032,803 

8

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)



(1)    Basis of Presentation

The unaudited condensed consolidated financial statements included herein have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's 2021 annual report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only a normal and recurring nature, necessary to present fairly the financial position of the Company as of June 30, 2022, and the results of operations and cash flows for the interim periods presented.

(2)    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 the second quarter of 2020; $0.2 million as part of the acquisition of Air-Craftglass Production BV ("Air-Craftglass") in the third quarter of 2020; $1.0 million as a part of the acquisition of Argil, Inc. ("Argil") in the fourth quarter of 2020; and $2.0 million as part of the acquisition of Guardian Optical Technologies ("Guardian") in the first quarter of 2021. The carrying value of Goodwill as of both June 30, 2022 and December 31, 2021 was $313.9 million and $314.0 million, respectively, as set forth in the table below:

Carrying Amount
Balance as of December 31, 2021$313,960,209 
Acquisitions— 
Divestitures— 
Impairments— 
Other(102,559)
Balance as of June 30, 2022$313,857,650 

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. The impact of COVID-19, the recent microchip shortage, supply chain constraints, and labor shortages were again considered in the most recently completed quarter, but did not indicate the need for interim impairment testing.

The Company also acquired In-Process Research & Development ("I P 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:






9

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


As of June 30, 2022:
Other Intangible AssetsGrossAccumulated AmortizationNetAssumed Useful Life
Gentex Patents$39,495,602 $(27,389,285)$12,106,317 Various
Vaporsens Technology Licenses351,290 (67,367)283,923 Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks
$52,000,000 $— $52,000,000 Indefinite
HomeLink® Technology
180,000,000 (131,250,000)48,750,000 12 years
Existing Customer Platforms43,000,000 (37,625,000)5,375,000 10 years
Exclusive Licensing Agreement96,000,000 — 96,000,000 Indefinite
Vaporsens In-Process R&D11,000,000 — 11,000,000 Indefinite
Argil In-Process R&D6,278,132 — 6,278,132 Indefinite
Air-Craftglass In-Process R&D1,507,778 — 1,507,778 Indefinite
Guardian Trade Names1,300,000 — 1,300,000 Indefinite
Guardian In-Process R&D6,800,000 — 6,800,000 Indefinite
Total Other Intangible Assets$397,885,910 $(168,875,000)$229,010,910 
Total Patents & Other Intangible Assets$437,732,802 $(196,331,652)$241,401,150 

As of December 31, 2021:
Other Intangible Assets
Gross
Accumulated Amortization
Net
Assumed Useful Life
Gentex Patents
$39,362,187 $(26,506,155)$12,856,032 Various
Vaporsens Technology Licenses351,290 (50,107)301,183 Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks
$52,000,000 $— $52,000,000 Indefinite
HomeLink® Technology
180,000,000 (123,750,000)56,250,000 12 years
Existing Customer Platforms43,000,000 (35,475,000)7,525,000 10 years
Exclusive Licensing Agreement
96,000,000 — 96,000,000 Indefinite
    Vaporsens In-Process R&D11,000,000 — 11,000,000 Indefinite
    Argil In-Process R&D6,278,132 — 6,278,132 Indefinite
    Air-Craftglass In-Process R&D1,507,778 — 1,507,778 Indefinite
    Guardian Trade Names1,384,857 — 1,384,857 Indefinite
    Guardian In-Process R&D7,243,860 — 7,243,860 Indefinite
Total Other Intangible Assets$398,414,627 $(159,225,000)$239,189,627 
Total Patents & Other Intangible Assets$438,128,104 $(185,781,262)$252,346,842 

Amortization expense on patents and intangible assets was approximately $5.5 million and $11.1 million during the three and six months ended June 30, 2022, respectively, and approximately $5.6 million and $11.2 million for the same periods ended June 30, 2021, respectively.

Excluding the impact of any future acquisitions, the Company estimates amortization expense for the year ending December 31, 2022 to be approximately $22 million, for the year ending December 31, 2023 to be
10

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


approximately $20 million, for the year ending December 31, 2024 to be approximately $16 million, and for each of the years ending December 31, 2025 and December 31, 2026 to be approximately $12 million.


(3)    Investments
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.

The Company also periodically makes technology investments in certain non-consolidated third-parties. These equity investments are accounted for in accordance with ASC 323, Investments - Equity Method and Joint Ventures. The Company's share of the earnings or losses of non-controlled affiliates, over which the Company exercises significant influence (generally a 20% to 50% ownership interest), is included in the consolidated operating results using the equity method of accounting. These equity method investments, over which the Company exercises significant influence, totaled approximately $39.9 million as of June 30, 2022 (including approximately $11.1 million of investments accounted for under ASC 321, Investments - Equity Securities, as of December 31, 2021, for which the Company obtained significant influence during 2022). The Company did not have equity method investments as of December 31, 2021. These investments are classified within Equity Method Investments in the condensed consolidated balance sheets. 

The Company has made technology investments in certain non-consolidated affiliates for ownership interests of less than 20% (where the Company does not have the ability to exercise significant influence). These equity investments are accounted for in accordance with ASC 321, Investments - Equity Securities. For these equity investments that do not have readily determinable fair values, and where the Company has not identified any observable events that would cause adjustment of the valuation to date, are then held at cost. These technology investments totaled approximately $7.6 million and $16.8 million as of June 30, 2022 and December 31, 2021, respectively. These investments are classified within Long-Term Investments in the condensed consolidated balance sheets. 
Assets or liabilities that have recurring fair value measurements are shown below as of June 30, 2022 and December 31, 2021:
As of June 30, 2022:
11

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


Fair Value Measurements at Reporting Date Using
Total as of
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Observable
Inputs
Significant
Unobservable
Inputs
Description
June 30, 2022(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$269,372,471 $269,372,471 $— $— 
Short-Term Investments:
Certificate of Deposit1,752,930 1,752,930 — — 
Corporate Bonds5,467,319 — 5,467,319 — 
Municipal Bonds1,729,072 — 1,729,072 — 
Other3,042,833 3,042,833 — — 
Long-Term Investments:
Asset Backed Securities23,356,697 — 23,356,697 — 
Certificate of Deposit735,897 735,897 — — 
Corporate Bonds34,178,081 — 34,178,081 — 
Government Securities38,901,568 — 38,901,568 — 
Municipal Bonds52,972,792 — 52,972,792 — 
Total$431,509,660 $274,904,131 $156,605,529 $— 

As of December 31, 2021:
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, 2021(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$262,311,670 $262,311,670 $— $— 
Short-Term Investments:
Certificate of Deposit1,507,770 1,507,770 — — 
Corporate Bonds2,018,440 — 2,018,440 — 
Government Securities— — — — 
Municipal Bonds— — — — 
Other1,897,402 1,897,402 — — 
Long-Term Investments:
Asset-backed Securities25,799,513 — 25,799,513 — 
Certificate of Deposit2,056,710 2,056,710 — — 
Corporate Bonds40,354,929 — 40,354,929 — 
Governmental Securities47,944,036 — 47,944,036 — 
Municipal Bonds74,720,480 — 74,720,480 — 
Total$458,610,950 $267,773,552 $190,837,398 $— 

The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of June 30, 2022 and December 31, 2021:

12

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


As of June 30, 2022:
Unrealized
Cost
Gains
Losses
Market Value
Short-Term Investments:
Certificate of Deposit$1,750,990 $4,098 $(2,158)$1,752,930 
Corporate Bonds5,630,319 — (163,000)5,467,319 
Municipal Bonds1,740,477 760 (12,165)1,729,072 
Other3,042,833 — — 3,042,833 
Long-Term Investments:
Asset Backed Securities24,055,501 — (698,804)23,356,697 
Certificate of Deposit750,000 — (14,103)735,897 
Corporate Bonds37,765,445 — (3,587,364)34,178,081 
Government Securities41,238,181 2,361 (2,338,974)38,901,568 
Municipal Bonds56,098,534 188,395 (3,314,137)52,972,792 
Total$172,072,280 $195,614 $(10,130,705)$162,137,189 


As of December 31, 2021:    
Unrealized
CostGainsLossesMarket Value
Short-Term Investments:
Certificate of Deposit$1,500,543 $7,227 $— $1,507,770 
Corporate Bonds1,994,639 23,801 — 2,018,440 
Other1,897,402 — — 1,897,402 
Long-Term Investments:
Asset-backed Securities26,352,630 34,771 (587,888)25,799,513 
Certificate of Deposit2,001,714 54,996 — 2,056,710 
Corporate Bonds40,716,866 168,416 (530,353)40,354,929 
Government Securities48,385,672 55,939 (497,575)47,944,036 
Municipal Bonds72,175,568 2,747,964 (203,052)74,720,480 
Total$195,025,034 $3,093,114 $(1,818,868)$196,299,280 

Unrealized losses on investments as of June 30, 2022, are as follows:
Aggregate Unrealized LossesAggregate Fair Value of Investments
Loss duration of less than one year$8,893,651 $143,233,962 
Loss duration of greater than one year1,237,054 9,273,913 
       Total
$10,130,705 $152,507,875 

Unrealized losses on investments as of December 31, 2021, are as follows:
Aggregate Unrealized Losses
Aggregate Fair Value of Investments
Loss duration of less than one year$1,244,053 $94,417,123 
Loss duration of greater than one year574,815 6,875,230 
       Total
$1,818,868 $101,292,353 

13

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


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

Fixed income securities as of June 30, 2022 have contractual maturities as follows:
Due within one year
$8,949,321 
Due between one and five years
89,732,074 
Due over five years
60,412,961 
$159,094,356 


4)    Inventories
Inventories consisted of the following at the respective balance sheet dates:
June 30, 2022December 31, 2021
Raw materials
$278,888,521 $235,014,277 
Work-in-process