gntx-20230331
00003558112023Q1FALSE--12-31P1YP5Yhttp://fasb.org/us-gaap/2022#AccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2022#OtherLiabilitiesNoncurrent00003558112023-01-012023-03-3100003558112023-04-28xbrli:shares00003558112023-03-31iso4217:USD00003558112022-12-3100003558112022-01-012022-03-31iso4217:USDxbrli:shares0000355811us-gaap:CommonStockMember2022-12-310000355811us-gaap:AdditionalPaidInCapitalMember2022-12-310000355811us-gaap:RetainedEarningsMember2022-12-310000355811us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000355811us-gaap:CommonStockMember2023-01-012023-03-310000355811us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310000355811us-gaap:RetainedEarningsMember2023-01-012023-03-310000355811us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000355811us-gaap:CommonStockMember2023-03-310000355811us-gaap:AdditionalPaidInCapitalMember2023-03-310000355811us-gaap:RetainedEarningsMember2023-03-310000355811us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000355811us-gaap:CommonStockMember2021-12-310000355811us-gaap:AdditionalPaidInCapitalMember2021-12-310000355811us-gaap:RetainedEarningsMember2021-12-310000355811us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-3100003558112021-12-310000355811us-gaap:CommonStockMember2022-01-012022-03-310000355811us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000355811us-gaap:RetainedEarningsMember2022-01-012022-03-310000355811us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000355811us-gaap:CommonStockMember2022-03-310000355811us-gaap:AdditionalPaidInCapitalMember2022-03-310000355811us-gaap:RetainedEarningsMember2022-03-310000355811us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100003558112022-03-310000355811gntx:HomeLinkMember2013-12-310000355811gntx:VaporsensIncMember2020-04-012020-06-300000355811gntx:AirCraftGlassMember2020-07-012020-09-300000355811gntx:ArgilIncMember2020-10-012020-12-310000355811gntx:GuardianOpticalTechnologiesMember2021-01-012021-03-310000355811us-gaap:PatentsMember2023-03-310000355811us-gaap:TrademarksAndTradeNamesMember2023-03-310000355811us-gaap:DevelopedTechnologyRightsMember2023-03-310000355811us-gaap:DevelopedTechnologyRightsMember2023-01-012023-03-310000355811us-gaap:CustomerContractsMember2023-03-310000355811us-gaap:CustomerContractsMember2023-01-012023-03-310000355811us-gaap:LicensingAgreementsMember2023-03-310000355811us-gaap:InProcessResearchAndDevelopmentMembergntx:VaporsensIncMember2023-03-310000355811gntx:ArgilIncMemberus-gaap:InProcessResearchAndDevelopmentMember2023-03-310000355811gntx:AirCraftGlassMemberus-gaap:InProcessResearchAndDevelopmentMember2023-03-310000355811gntx:GuardianOpticalTechnologiesMemberus-gaap:TrademarksAndTradeNamesMember2023-03-310000355811gntx:GuardianOpticalTechnologiesMemberus-gaap:InProcessResearchAndDevelopmentMember2023-03-310000355811us-gaap:OtherIntangibleAssetsMember2023-03-310000355811gntx:PatentsAndOtherIntangibleAssetsMember2023-03-310000355811us-gaap:PatentsMember2022-12-310000355811us-gaap:TrademarksAndTradeNamesMember2022-12-310000355811us-gaap:DevelopedTechnologyRightsMember2022-12-310000355811us-gaap:DevelopedTechnologyRightsMember2022-01-012022-12-310000355811us-gaap:CustomerContractsMember2022-12-310000355811us-gaap:CustomerContractsMember2022-01-012022-12-310000355811us-gaap:LicensingAgreementsMember2022-12-310000355811us-gaap:InProcessResearchAndDevelopmentMembergntx:VaporsensIncMember2022-12-310000355811gntx:ArgilIncMemberus-gaap:InProcessResearchAndDevelopmentMember2022-12-310000355811gntx:AirCraftGlassMemberus-gaap:InProcessResearchAndDevelopmentMember2022-12-310000355811gntx:GuardianOpticalTechnologiesMemberus-gaap:TrademarksAndTradeNamesMember2022-12-310000355811gntx:GuardianOpticalTechnologiesMemberus-gaap:InProcessResearchAndDevelopmentMember2022-12-310000355811us-gaap:OtherIntangibleAssetsMember2022-12-310000355811gntx:PatentsAndOtherIntangibleAssetsMember2022-12-310000355811gntx:GentexCorporationMembersrt:MinimumMember2023-03-31xbrli:pure0000355811srt:MaximumMembergntx:GentexCorporationMember2023-03-310000355811gntx:LongTermInvestmentsMember2023-03-310000355811gntx:LongTermInvestmentsMember2022-12-310000355811gntx:AdaskyLTDMember2023-03-0900003558112023-03-090000355811us-gaap:ShortTermInvestmentsMember2023-03-310000355811us-gaap:ShortTermInvestmentsMember2022-12-310000355811gntx:LongTermInvestmentsMember2022-09-300000355811gntx:LongTermInvestmentsMember2021-12-310000355811us-gaap:FairValueInputsLevel1Member2023-03-310000355811us-gaap:FairValueInputsLevel2Member2023-03-310000355811us-gaap:FairValueInputsLevel3Member2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2023-03-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CertificatesOfDepositMember2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2023-03-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMember2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2023-03-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:MunicipalBondsMember2023-03-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMemberus-gaap:MunicipalBondsMember2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Member2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2023-03-310000355811us-gaap:OtherDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2023-03-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2023-03-310000355811us-gaap:OtherDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Member2023-03-310000355811us-gaap:OtherDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Member2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2023-03-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:AssetBackedSecuritiesMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2023-03-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CertificatesOfDepositMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2023-03-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2023-03-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:MunicipalBondsMember2023-03-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:MunicipalBondsMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Member2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CommonStockMember2023-03-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:CommonStockMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CommonStockMemberus-gaap:FairValueInputsLevel2Member2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CommonStockMemberus-gaap:FairValueInputsLevel3Member2023-03-310000355811us-gaap:FairValueInputsLevel1Member2022-12-310000355811us-gaap:FairValueInputsLevel2Member2022-12-310000355811us-gaap:FairValueInputsLevel3Member2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2022-12-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CertificatesOfDepositMember2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2022-12-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMember2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-12-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:MunicipalBondsMember2022-12-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMemberus-gaap:MunicipalBondsMember2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Member2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2022-12-310000355811us-gaap:OtherDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-12-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-12-310000355811us-gaap:OtherDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel2Member2022-12-310000355811us-gaap:OtherDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMemberus-gaap:FairValueInputsLevel3Member2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2022-12-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:AssetBackedSecuritiesMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2022-12-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CertificatesOfDepositMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2022-12-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-12-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:MunicipalBondsMember2022-12-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:MunicipalBondsMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Member2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CommonStockMember2022-12-310000355811us-gaap:FairValueInputsLevel1Memberus-gaap:OtherLongTermInvestmentsMemberus-gaap:CommonStockMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CommonStockMemberus-gaap:FairValueInputsLevel2Member2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CommonStockMemberus-gaap:FairValueInputsLevel3Member2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:MunicipalBondsMember2023-03-310000355811us-gaap:OtherDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:MunicipalBondsMember2023-03-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CommonStockMember2023-03-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-12-310000355811us-gaap:ShortTermInvestmentsMemberus-gaap:MunicipalBondsMember2022-12-310000355811us-gaap:OtherDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:MunicipalBondsMember2022-12-310000355811us-gaap:OtherLongTermInvestmentsMemberus-gaap:CommonStockMember2022-12-310000355811us-gaap:FixedIncomeSecuritiesMember2023-03-310000355811us-gaap:StockCompensationPlanMember2023-03-31gntx:plan0000355811gntx:OmnibusIncentivePlanMember2023-01-012023-03-310000355811gntx:OmnibusIncentivePlanMember2023-03-310000355811gntx:NonQualifiedStockOptionMembergntx:OmnibusIncentivePlanMember2023-01-012023-03-310000355811us-gaap:RestrictedStockMembergntx:OmnibusIncentivePlanMember2023-01-012023-03-310000355811gntx:OmnibusIncentivePlanMemberus-gaap:PerformanceSharesMember2023-01-012023-03-310000355811gntx:EmployeeStockOptionPlanMembersrt:MinimumMember2023-01-012023-03-310000355811gntx:EmployeeStockOptionPlanMembersrt:MaximumMember2023-01-012023-03-310000355811gntx:EmployeeStockOptionPlanMember2023-03-310000355811gntx:RestrictedStockPlanMember2023-01-012023-03-310000355811gntx:RestrictedStockPlanMember2023-03-310000355811gntx:RestrictedStockPlanMember2022-01-012022-03-310000355811us-gaap:PerformanceSharesMember2023-03-310000355811us-gaap:EmployeeStockMember2022-06-300000355811us-gaap:EmployeeStockMember2022-06-302022-06-300000355811us-gaap:EmployeeStockMember2023-01-012023-03-310000355811gntx:GentexCorporationEmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2022-05-310000355811gntx:GentexCorporationEmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2022-05-012022-05-310000355811gntx:GentexCorporationEmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2023-01-012023-03-310000355811us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000355811us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000355811us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-03-310000355811us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-03-310000355811us-gaap:AccumulatedTranslationAdjustmentMember2023-03-310000355811us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310000355811us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-12-310000355811us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310000355811us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-012023-03-310000355811us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-03-310000355811us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-03-310000355811us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310000355811us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000355811us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000355811us-gaap:RevolvingCreditFacilityMember2023-02-212023-02-210000355811us-gaap:RevolvingCreditFacilityMember2023-02-210000355811us-gaap:LetterOfCreditMember2023-02-210000355811gntx:SwingLoansMember2023-02-210000355811us-gaap:RevolvingCreditFacilityMember2023-03-3100003558112023-02-282023-02-280000355811gntx:AutomotiveProductsSegmentMember2023-01-012023-03-310000355811gntx:AutomotiveProductsSegmentMember2022-01-012022-03-310000355811us-gaap:AllOtherSegmentsMember2023-01-012023-03-310000355811us-gaap:AllOtherSegmentsMember2022-01-012022-03-310000355811gntx:AutomotiveProductsMembercountry:US2023-01-012023-03-310000355811gntx:AutomotiveProductsMembercountry:US2022-01-012022-03-310000355811gntx:AutomotiveProductsMembercountry:DE2023-01-012023-03-310000355811gntx:AutomotiveProductsMembercountry:DE2022-01-012022-03-310000355811gntx:AutomotiveProductsMembercountry:JP2023-01-012023-03-310000355811gntx:AutomotiveProductsMembercountry:JP2022-01-012022-03-310000355811country:MXgntx:AutomotiveProductsMember2023-01-012023-03-310000355811country:MXgntx:AutomotiveProductsMember2022-01-012022-03-310000355811gntx:AutomotiveProductsMembergntx:OtherCountriesMember2023-01-012023-03-310000355811gntx:AutomotiveProductsMembergntx:OtherCountriesMember2022-01-012022-03-310000355811gntx:AutomotiveProductsMember2023-01-012023-03-310000355811gntx:AutomotiveProductsMember2022-01-012022-03-310000355811gntx:OtherProductsMembercountry:US2023-01-012023-03-310000355811gntx:OtherProductsMembercountry:US2022-01-012022-03-310000355811gntx:AutomotiveSegmentMembergntx:AutomotiveMirrorsElectronicsMember2023-01-012023-03-310000355811gntx:AutomotiveSegmentMembergntx:AutomotiveMirrorsElectronicsMember2022-01-012022-03-310000355811gntx:AutomotiveSegmentMembergntx:HomeLinkModulesMember2023-01-012023-03-310000355811gntx:AutomotiveSegmentMembergntx:HomeLinkModulesMember2022-01-012022-03-310000355811gntx:AutomotiveSegmentMember2023-01-012023-03-310000355811gntx:AutomotiveSegmentMember2022-01-012022-03-310000355811gntx:OtherSegmentMembergntx:FireProtectionProductsMember2023-01-012023-03-310000355811gntx:OtherSegmentMembergntx:FireProtectionProductsMember2022-01-012022-03-310000355811gntx:OtherSegmentMembergntx:AerospaceProductsMember2023-01-012023-03-310000355811gntx:OtherSegmentMembergntx:AerospaceProductsMember2022-01-012022-03-310000355811gntx:OtherSegmentMember2023-01-012023-03-310000355811gntx:OtherSegmentMember2022-01-012022-03-310000355811srt:MinimumMember2023-03-310000355811srt:MaximumMember2023-03-31

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, 2023 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, April 28, 2023
Common Stock, $.06 Par Value
233,702,848

1


GENTEX CORPORATION AND SUBSIDIARIES
For the Three Months Ended March 31, 2023
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 March 31, 2023 and December 31, 2022
March 31, 2023 (Unaudited)
December 31, 2022
(Note)
ASSETS
CURRENT ASSETS
Cash and cash equivalents$215,452,160 $214,754,638 
Restricted Cash4,000,000 4,000,000 
Short-term investments25,635,492 23,007,385 
Accounts receivable, net332,867,128 276,493,752 
Inventories401,769,976 404,360,270 
Prepaid expenses and other25,316,437 26,036,331 
Total current assets1,005,041,193 948,652,376 
PLANT AND EQUIPMENT—NET575,276,023 550,033,036 
OTHER ASSETS
Goodwill313,686,026 313,807,494 
Long-term investments229,398,824 202,331,983 
Intangible assets, net214,535,910 219,360,910 
Deferred tax asset23,795,400 25,528,700 
Patents and other assets, net71,614,459 67,515,425 
Total other assets853,030,619 828,544,512 
Total assets$2,433,347,835 $2,327,229,924 
LIABILITIES AND SHAREHOLDERS’ INVESTMENT
CURRENT LIABILITIES
Accounts payable$166,922,435 $151,740,046 
Accrued liabilities130,108,297 98,812,706 
Total current liabilities297,030,732 250,552,752 
OTHER NON-CURRENT LIABILITIES13,061,457 10,884,351 
Total liabilities310,092,189 261,437,103 
SHAREHOLDERS’ INVESTMENT
Common stock14,023,563 14,050,160 
Additional paid-in capital928,284,890 917,499,323 
Retained earnings1,193,171,690 1,148,386,272 
Accumulated other comprehensive loss(12,224,497)(14,142,934)
Total shareholders’ investment2,123,255,646 2,065,792,821 
Total liabilities and shareholders’ investment$2,433,347,835 $2,327,229,924 

Note: The condensed consolidated balance sheet at December 31, 2022 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, 2023 and 2022
 
Three Months Ended March 31,
20232022
NET SALES
$550,761,311 $468,250,776 
COST OF GOODS SOLD
376,024,080 307,838,816 
Gross profit174,737,231 160,411,960 
OPERATING EXPENSES:
Engineering, research and development34,653,747 31,974,987 
Selling, general & administrative26,832,837 25,131,068 
Total operating expenses61,486,584 57,106,055 
Income from operations113,250,647 103,305,905 
OTHER INCOME (LOSS)
Investment income2,939,195 788,316 
Other loss, net(194,740)(798,810)
Total other income (loss)2,744,455 (10,494)
INCOME BEFORE PROVISION FOR INCOME TAXES115,995,102 103,295,411 
PROVISION FOR INCOME TAXES18,416,841 15,766,785 
NET INCOME$97,578,261 $87,528,626 
EARNINGS PER SHARE: (1)
Basic$0.42 $0.37 
Diluted$0.42 $0.37 
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, 2023 and 2022
Three Months Ended March 31,
20232022
Net income$97,578,261 $87,528,626 
Other comprehensive income (loss) before tax:
Foreign currency translation adjustments(121,167)(896,420)
Unrealized gains (losses) on debt securities, net2,581,777 (7,795,230)
Other comprehensive income (loss), before tax2,460,610 (8,691,650)
Income tax impact related to components of other comprehensive income (loss)542,173 (1,636,998)
Other comprehensive income (loss), net of tax1,918,437 (7,054,652)
Comprehensive income$99,496,698 $80,473,974 

5



GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT
For the Three Months Ended March 31, 2023 and 2022
Common 
Stock
Shares
Common 
Stock
Amount
Additional 
Paid-In
Capital
Retained 
Earnings
Accumulated 
Other
Comprehensive
Loss
Total 
Shareholders’
Investment
BALANCE AS OF JANUARY 1, 2023234,169,335 $14,050,160 $917,499,323 $1,148,386,272 $(14,142,934)$2,065,792,821 
Issuance of common stock from stock plan transactions603,636 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 income— — — — 1,918,437 1,918,437 
BALANCE AS OF MARCH 31, 2023233,726,045 $14,023,563 $928,284,890 $1,193,171,690 $(12,224,497)$2,123,255,646 
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 transactions476,688 28,601 3,295,546 — — 3,324,147 
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— — 6,788,337 — — 6,788,337 
Dividends declared ($0.12 per share)
— — — (28,354,003)— (28,354,003)
Net income— — — 87,528,626 — 87,528,626 
Other comprehensive loss— — — — (7,054,652)(7,054,652)
BALANCE AS OF MARCH 31, 2022234,477,338 $14,068,640 $881,371,438 $1,038,656,230 $(5,127,408)$1,928,968,900 

6


GENTEX CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2023 and 2022
20232022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$97,578,261 $87,528,626 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization24,041,648 24,711,500 
(Gain) on disposal of assets(106,743)(33,982)
Loss on disposal of assets41,843 11,067 
(Gain) on sale of investments and equity method investment income(1,199,707)(367,879)
Loss on sale of investments and equity method investment losses1,671,583 704,214 
Change in deferred income taxes141,959  
Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock8,519,535 6,788,337 
Change in operating assets and liabilities:
Accounts receivable, net(56,373,376)(31,666,772)
Inventories2,590,294 (46,469,079)
Prepaid expenses and other(629,502)16,082,077 
Accounts payable11,112,425 42,968,193 
Accrued liabilities, excluding dividends declared33,525,890 15,702,241 
Net cash provided by operating activities120,914,110 115,958,543 
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Activity in available-for-sale securities:
Sales proceeds3,128,110 37,158,611 
Maturities and calls1,465,000 1,000,000 
Purchases(32,178,155)(15,889,063)
Plant and equipment additions(42,819,075)(23,892,169)
Proceeds from sale of plant and equipment118,410 33,740 
Increase in other assets(2,110,935)(455,419)
Net cash used for investing activities(72,396,645)(2,044,300)
CASH FLOWS USED FOR FINANCING ACTIVITIES:
Issuance of common stock from stock plan transactions5,956,022 3,324,147 
Cash dividends paid(28,099,993)(28,589,625)
Repurchases of common stock(25,675,972)(71,252,022)
Net cash used for financing activities(47,819,943)(96,517,500)
NET INCREASE IN CASH AND CASH EQUIVALENTS697,522 17,396,743 
CASH, CASH EQUIVALENTS, and RESTRICTED CASH, beginning of period218,754,638 262,311,670 
CASH, CASH EQUIVALENTS, and RESTRICTED CASH, end of period$219,452,160 $279,708,413 

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 2022 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, 2023, 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 March 31, 2023 and December 31, 2022 was $313.7 million and $313.8 million, respectively, as set forth in the table below:

Carrying Amount
Balance as of December 31, 2022$313,807,494 
Acquisitions 
Divestitures 
Impairments 
Other(121,468)
Balance as of March 31, 2023$313,686,026 

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 component shortages, supply chain constraints, inflation, 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 ("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:





8


GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)



As of March 31, 2023:
Other Intangible AssetsGrossAccumulated AmortizationNetAssumed Useful Life
Gentex Patents$40,619,268 $(28,072,946)$12,546,322 Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks
$52,000,000 $— $52,000,000 Indefinite
HomeLink® Technology
180,000,000 (142,500,000)37,500,000 12 years
Existing Customer Platforms43,000,000 (40,850,000)2,150,000 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 $(183,350,000)$214,535,910 
Total Patents & Other Intangible Assets$438,505,178 $(211,422,946)$227,082,232 

As of December 31, 2022:
Other Intangible Assets
Gross
Accumulated Amortization
Net
Assumed Useful Life
Gentex Patents
$40,653,851 $(27,820,383)$12,833,468 Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks
$52,000,000 $— $52,000,000 Indefinite
HomeLink® Technology
180,000,000 (138,750,000)41,250,000 12 years
Existing Customer Platforms43,000,000 (39,775,000)3,225,000 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 Names1,300,000 — 1,300,000 Indefinite
    Guardian In-Process R&D6,800,000 — 6,800,000 Indefinite
Total Other Intangible Assets$397,885,910 $(178,525,000)$219,360,910 
Total Patents & Other Intangible Assets$438,539,761 $(206,345,383)$232,194,378 

Amortization expense on patents and intangible assets was approximately $5.3 million during the three months ended March 31, 2023, and approximately $5.5 million for the same period ended March 31, 2022.

Excluding the impact of any future acquisitions, the Company estimates amortization expense for the year ending December 31, 2023 to be approximately $20 million, for the year ending December 31, 2024 to be approximately $16 million, for the year ending December 31, 2025 to be approximately $12 million, and for each of the years ending December 31, 2026 and December 31, 2027 to be approximately $5 million.
9


GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)




(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 investments are classified within Equity Method Investments in the condensed consolidated balance sheets. The Company has also 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, the equity investments are held at cost.

Such technology investments totaled approximately $86.9 million and $69.5 million as of March 31, 2023 and December 31, 2022, respectively. On March 9, 2023, the Company purchased a 15% equity investment in Adasky, LTD. for $21.5 million. Adasky is an Israeli-based leading developer and manufacturer of intelligent thermal sensing technologies. $2.2 million and $3.8 million of these technology investments are classified within Short-Term Investments in the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022, respectively. $84.7 million and $65.7 million of these investments are classified within Long-Term Investments in the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022, respectively.  
Assets or liabilities that have recurring fair value measurements are shown below as of March 31, 2023 and December 31, 2022:







10


GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


As of March 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
March 31, 2023(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$215,452,160 $215,452,160 $ $ 
Restricted Cash4,000,000 4,000,000   
Short-Term Investments:
Certificate of Deposit1,741,295 1,741,295   
Corporate Bonds5,495,110  5,495,110  
Government Securities6,155,223  6,155,223  
Municipal Bonds3,963,985  3,963,985  
Other4,474,175 1,007,150 3,467,025  
Long-Term Investments:
Asset Backed Securities18,718,258  18,718,258  
Certificate of Deposit239,107 239,107   
Corporate Bonds37,242,499  37,242,499  
Government Securities36,922,649  36,922,649  
Municipal Bonds50,870,849  50,870,849  
Common Stock720,910 720,910   
Total$385,996,220 $223,160,622 $162,835,598 $ 

As of December 31, 2022:
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, 2022(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$214,754,638 $214,754,638 $ $ 
Restricted Cash4,000,000 4,000,000   
Short-Term Investments:
Certificate of Deposit1,736,163 1,736,163   
Corporate Bonds5,473,341  5,473,341  
Government Securities4,423,041  4,423,041  
Municipal Bonds5,174,773  5,174,773  
Other2,347,602 1,093,602 1,254,000  
Long-Term Investments:
Asset-backed Securities18,829,696  18,829,696  
Certificate of Deposit238,925 238,925   
Corporate Bonds36,310,477  36,310,477  
Governmental Securities36,532,634  36,532,634  
Municipal Bonds48,430,166  48,430,166 
Common Stock293,300 293,300   
Total$378,544,756 $222,116,628 $156,428,128 $ 

11


GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of March 31, 2023 and December 31, 2022:

As of March 31, 2023:
Unrealized
Cost
Gains
Losses
Market Value
Short-Term Investments:
Certificate of Deposit$1,750,000 $93 $(8,798)$1,741,295 
Corporate Bonds5,542,607  (47,497)5,495,110 
Government Securities6,190,793 2,058 (37,628)6,155,223 
Municipal Bonds3,998,537  (34,552)3,963,985 
Other4,474,175   4,474,175 
Long-Term Investments:
Asset Backed Securities18,852,424  (134,166)18,718,258 
Certificate of Deposit250,000  (10,893)239,107 
Corporate Bonds40,819,361 20,678 (3,597,540)37,242,499 
Government Securities39,525,976  (2,603,327)36,922,649 
Municipal Bonds54,635,848 314,881 (4,079,880)50,870,849 
Common Stock720,911   720,911 
Total$176,760,632 $337,710 $(10,554,281)$166,544,061 


As of December 31, 2022:    
Unrealized
CostGainsLossesMarket Value
Short-Term Investments:
Certificate of Deposit$1,750,256 $ $(14,093)$1,736,163 
Corporate Bonds5,571,417  (98,076)5,473,341 
Government Securities4,476,613  (53,572)4,423,041 
Municipal Bonds5,223,500  (48,727)5,174,773 
Other2,347,602   2,347,602 
Long-Term Investments:
Asset-backed Securities19,151,229  (321,533)18,829,696 
Certificate of Deposit250,000  (11,075)238,925 
Corporate Bonds40,410,206  (4,099,729)36,310,477 
Government Securities39,637,461  (3,104,827)36,532,634 
Municipal Bonds53,476,883 235,713 (5,282,430)48,430,166 
Common Stock292,638 662  293,300 
Total$172,587,805 $236,375 $(13,034,062)$159,790,118 

Unrealized losses on investments as of March 31, 2023, are as follows:
Aggregate Unrealized LossesAggregate Fair Value of Investments
Loss duration of less than one year$321,165 $23,213,314 
Loss duration of greater than one year10,233,116 130,046,373 
       Total
$10,554,281 $153,259,687 
12


GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)



Unrealized losses on investments as of December 31, 2022, are as follows:
Aggregate Unrealized Losses
Aggregate Fair Value of Investments
Loss duration of less than one year$4,816,103 $77,701,146 
Loss duration of greater than one year8,217,959 76,643,586 
       Total
$13,034,062 $154,344,732 

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, 2023 have contractual maturities as follows:
Due within one year
$17,355,612 
Due between one and five years
93,840,749 
Due over five years
50,152,613 
$161,348,974 

(4)    Inventories
Inventories consisted of the following at the respective balance sheet dates:
March 31, 2023December 31, 2022
Raw materials
$301,876,129 $304,184,004 
Work-in-process
44,534,016 45,512,275 
Finished goods
55,359,831 54,663,991 
Total Inventory
$401,769,976 $404,360,270 


(5)    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
13


GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


two-class method for the three months ended March 31, 2023 and March 31, 2022:
Three Months Ended March 31,
20232022
Basic Earnings Per Share
Net Income$97,578,261 $87,528,626 
Less: Dividends and undistributed earnings allocated to participating securities1,456,913 1,360,047 
Net Income available to common shareholders$96,121,348 $86,168,579 
Basic weighted average shares outstanding230,605,626 232,151,296 
Net Income per share - Basic$0.42 $0.37 
Diluted Earnings Per Share
Allocation of Net Income used in basic computation$96,121,348 $86,168,579 
Reallocation of undistributed earnings1,276 2,500 
Net Income available to common shareholders - Diluted$96,122,624 $86,171,079 
Number of shares used in basic computation230,605,626 232,151,296 
Additional weighted average dilutive common stock equivalents290,220 638,515 
Diluted weighted average shares outstanding230,895,846 232,789,811 
Net Income per share - Diluted$0.42 $0.37 
Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive1,810,685 1,572,223 

(6)    Stock-Based Compensation Plans
As of March 31, 2023, 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, 2022, for additional information related to the Prior Plans.
The Company recognized total compensation expense for share-based payments of $8,519,535 for the three months ended March 31, 2023. The Company recognized compensation expense for share-based
14


GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


payments of $6,788,337 for the three months ended March 31, 2022. 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, 2023, 8,991,744 share awards have been made under the Plan, resulting in 22,671,217 shares granted of the 45,000,000 total shares available to be issued under the Plan. The shares issued are presented net of shares from canceled/expired options and shares.

Shares GrantedConversion RateTotal Shares Under 2019 Omnibus Plan
Non-Qualified Stock Options4,521,328 1.004,521,328 
Restricted Stock3,609,000 4.0614,652,540 
Performance Shares861,416 4.063,497,349 
Total8,991,744 22,671,217 
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, 2023, there was $8,754,103 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,
20232022
Dividend Yield (1)
1.76 %1.80 %
Expected volatility (2)
29.04 %28.16 %
Risk-free interest rate (3)
3.60 %2.42 %
Expected term of options (years) (4)
4.154.15
Weighted-avg. grant date fair value
$6.84$6.38
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 Committ