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 September 30, ~~2022~~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
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: 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, October ~~28, 2022~~27, 2023
Common Stock, $.06 Par Value						~~234,582,146~~233,252,591

GENTEX CORPORATION AND SUBSIDIARIES

For the Three and Nine Months Ended September 30, ~~2022~~2023

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	8
	Notes to Unaudited Condensed Consolidated Financial Statements	9
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3534
Item 4.	Controls and Procedures	3534

Part II - Other Information
Item 1A.	Risk Factors	3836
Item 2.	Unregistered Sales of Equity Securities, ~~and~~ Use of Proceeds, and Issuer Purchases of Equity Securities	3836
Item 6.	Exhibits	3937
	Signatures	3937
	Exhibit Index	4038

PART I —FINANCIAL INFORMATION

Item 1. Unaudited Condensed Consolidated Financial Statements.

GENTEX CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of September 30, ~~2022~~2023 and December 31, ~~2021~~2022


		September 30, 2022 (Unaudited)		December 31, 2021 (Note)			September 30, 2023 (Unaudited)		December 31, 2022 (Note)
ASSETS	ASSETS					ASSETS
CURRENT ASSETS	CURRENT ASSETS					CURRENT ASSETS
Cash and cash equivalents	Cash and cash equivalents	$	222,933,723	$	262,311,670	Cash and cash equivalents	$	260,633,625	$	214,754,638
Restricted Cash						Restricted Cash	—		4,000,000
Short-term investments	Short-term investments	16,122,519		5,423,612		Short-term investments	17,464,830		23,007,385
Accounts receivable, net	Accounts receivable, net	292,413,491		249,794,906		Accounts receivable, net	351,142,147		276,493,752
Inventories	Inventories	418,286,161		316,267,442		Inventories	395,452,780		404,360,270
Prepaid expenses and other	Prepaid expenses and other	39,567,381		39,178,119		Prepaid expenses and other	30,758,445		26,036,331
Total current assets	Total current assets	989,323,275		872,975,749		Total current assets	1,055,451,827		948,652,376

PLANT AND EQUIPMENT—NET	PLANT AND EQUIPMENT—NET	526,680,787		464,121,676		PLANT AND EQUIPMENT—NET	606,180,738		550,033,036

OTHER ASSETS	OTHER ASSETS					OTHER ASSETS
Goodwill	Goodwill	313,851,944		313,960,209		Goodwill	313,157,393		313,807,494
Long-term investments	Long-term investments	154,429,190		207,693,147		Long-term investments	272,615,535		202,331,983
Equity method investments		39,680,791		—

Intangible assets, net	Intangible assets, net	224,185,910		239,189,627		Intangible assets, net	204,885,910		219,360,910
Deferred tax asset						Deferred tax asset	36,513,490		25,528,700
Patents and other assets, net	Patents and other assets, net	63,171,166		33,450,758		Patents and other assets, net	69,513,945		67,515,425
Total other assets	Total other assets	795,319,001		794,293,741		Total other assets	896,686,273		828,544,512

Total assets	Total assets	$	2,311,323,063	$	2,131,391,166	Total assets	$	2,558,318,838	$	2,327,229,924

LIABILITIES AND SHAREHOLDERS’ INVESTMENT	LIABILITIES AND SHAREHOLDERS’ INVESTMENT					LIABILITIES AND SHAREHOLDERS’ INVESTMENT

CURRENT LIABILITIES	CURRENT LIABILITIES					CURRENT LIABILITIES
Accounts payable	Accounts payable	$	171,436,605	$	98,342,928	Accounts payable	$	171,359,850	$	151,740,046

Accrued liabilities	Accrued liabilities	93,728,038		83,313,172		Accrued liabilities	103,045,653		98,812,706
Total current liabilities	Total current liabilities	265,164,643		181,656,100		Total current liabilities	274,405,503		250,552,752

OTHER NON-CURRENT LIABILITIES	OTHER NON-CURRENT LIABILITIES	12,112,756		11,746,599		OTHER NON-CURRENT LIABILITIES	15,459,528		10,884,351

Total liabilities	Total liabilities	277,277,399		193,402,699		Total liabilities	289,865,031		261,437,103

SHAREHOLDERS’ INVESTMENT	SHAREHOLDERS’ INVESTMENT					SHAREHOLDERS’ INVESTMENT
Common stock	Common stock	14,075,843		14,186,450		Common stock	13,995,548		14,050,160
Additional paid-in capital	Additional paid-in capital	908,622,409		879,413,385		Additional paid-in capital	961,199,149		917,499,323
Retained earnings	Retained earnings	1,108,061,455		1,042,461,388		Retained earnings	1,306,931,850		1,148,386,272
Accumulated other comprehensive (loss) income		3,285,957		1,927,244
Accumulated other comprehensive loss						Accumulated other comprehensive loss	(13,672,740)		(14,142,934)
Total shareholders’ investment	Total shareholders’ investment	2,034,045,664		1,937,988,467		Total shareholders’ investment	2,268,453,807		2,065,792,821
Total liabilities and shareholders’ investment	Total liabilities and shareholders’ investment	$	2,311,323,063	$	2,131,391,166	Total liabilities and shareholders’ investment	$	2,558,318,838	$	2,327,229,924

Note: The condensed consolidated balance sheet at December 31, ~~2021~~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.

GENTEX CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

For the Three and Nine Months Ended September 30, ~~2022~~2023 and ~~2021~~2022


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021			2023		2022		2023		2022
NET SALES	NET SALES	$	493,636,695	$	399,598,744	$	1,425,310,472	$	1,311,328,609	NET SALES	$	575,848,490	$	493,636,695	$	1,710,082,647	$	1,425,310,472

COST OF GOODS SOLD	COST OF GOODS SOLD	346,435,670		258,698,723		969,330,474		835,531,679		COST OF GOODS SOLD	384,407,857		346,435,670		1,150,821,744		969,330,474
Gross profit	Gross profit	147,201,025		140,900,021		455,979,998		475,796,930		Gross profit	191,440,633		147,201,025		559,260,903		455,979,998

OPERATING EXPENSES:	OPERATING EXPENSES:									OPERATING EXPENSES:
Engineering, research and development	Engineering, research and development	33,541,331		29,750,973		98,373,737		86,462,112		Engineering, research and development	40,197,517		33,541,331		112,825,054		98,373,737
Selling, general & administrative	Selling, general & administrative	26,868,154		22,984,108		81,717,848		67,511,555		Selling, general & administrative	28,826,587		26,868,154		83,479,285		81,717,848
Total operating expenses	Total operating expenses	60,409,485		52,735,081		180,091,585		153,973,667		Total operating expenses	69,024,104		60,409,485		196,304,339		180,091,585

Income from operations	Income from operations	86,791,540		88,164,940		275,888,413		321,823,263		Income from operations	122,416,529		86,791,540		362,956,564		275,888,413

OTHER (LOSS) INCOME
OTHER INCOME (LOSS)										OTHER INCOME (LOSS)
Investment income	Investment income	1,496,852		856,351		3,205,452		2,782,900		Investment income	3,851,967		1,496,852		9,682,096		3,205,452
Other (loss) income, net		(2,126,039)		872,943		(4,828,119)		2,370,527
Total other (loss) income		(629,187)		1,729,294		(1,622,667)		5,153,427
Other loss, net										Other loss, net	(1,788,335)		(2,126,039)		(3,559,613)		(4,828,119)
Total other income (loss)										Total other income (loss)	2,063,632		(629,187)		6,122,483		(1,622,667)

INCOME BEFORE PROVISION FOR INCOME TAXES	INCOME BEFORE PROVISION FOR INCOME TAXES	86,162,353		89,894,234		274,265,746		326,976,690		INCOME BEFORE PROVISION FOR INCOME TAXES	124,480,161		86,162,353		369,079,047		274,265,746

PROVISION FOR INCOME TAXES	PROVISION FOR INCOME TAXES	13,506,358		13,233,686		41,676,723		50,358,854		PROVISION FOR INCOME TAXES	19,754,749		13,506,358		57,619,971		41,676,723

NET INCOME	NET INCOME	$	72,655,995	$	76,660,548	$	232,589,023	$	276,617,836	NET INCOME	$	104,725,412	$	72,655,995	$	311,459,076	$	232,589,023

EARNINGS PER SHARE: (1)	EARNINGS PER SHARE: (1)									EARNINGS PER SHARE: (1)
Basic	Basic	$	0.31	$	0.32	$	0.99	$	1.15	Basic	$	0.45	$	0.31	$	1.33	$	0.99
Diluted	Diluted	$	0.31	$	0.32	$	0.99	$	1.15	Diluted	$	0.45	$	0.31	$	1.33	$	0.99

Cash Dividends Declared per Share	Cash Dividends Declared per Share	$	0.120	$	0.120	$	0.360	$	0.360	Cash Dividends Declared per Share	$	0.120	$	0.120	$	0.360	$	0.360

(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.	(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.									(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.

GENTEX CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three and Nine Months Ended September 30, ~~2022~~2023 and ~~2021~~2022


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021			2023		2022		2023		2022
Net income	Net income	$	72,655,995	$	76,660,548	$	232,589,023	$	276,617,836	Net income	$	104,725,412	$	72,655,995	$	311,459,076	$	232,589,023

Other comprehensive (loss) income before tax:	Other comprehensive (loss) income before tax:									Other comprehensive (loss) income before tax:
Foreign currency translation adjustments	Foreign currency translation adjustments	17,751,603		(349,165)		13,723,857		(238,378)		Foreign currency translation adjustments	(717,457)		17,751,603		(2,295,001)		13,723,857

Unrealized losses on debt securities, net		(4,442,743)		(816,801)		(15,652,081)		(4,230,473)
Unrealized gains (losses) on debt securities, net										Unrealized gains (losses) on debt securities, net	363,905		(4,442,743)		3,500,247		(15,652,081)

Other comprehensive income (loss), before tax		13,308,860		(1,165,966)		(1,928,224)		(4,468,851)
Other comprehensive (loss) income, before tax										Other comprehensive (loss) income, before tax	(353,552)		13,308,860		1,205,246		(1,928,224)

Income tax impact related to components of other comprehensive (loss) income		(932,976)		(171,528)		(3,286,937)		(888,399)
Income tax impact related to components of other comprehensive income (loss)										Income tax impact related to components of other comprehensive income (loss)	76,420		(932,976)		735,052		(3,286,937)

Other comprehensive income (loss), net of tax		14,241,836		(994,438)		1,358,713		(3,580,452)
Other comprehensive (loss) income, net of tax										Other comprehensive (loss) income, net of tax	(429,972)		14,241,836		470,194		1,358,713

Comprehensive income	Comprehensive income	$	86,897,831	$	75,666,110	$	233,947,736	$	273,037,384	Comprehensive income	$	104,295,440	$	86,897,831	$	311,929,270	$	233,947,736

GENTEX CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT

For the Three Months Ended September 30, ~~2022~~2023 and ~~2021~~2022


		Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Investment			Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Investment
BALANCE AS OF JULY 1, 2022		235,132,265	$	14,107,936	$	900,576,404	$	1,082,846,019	$	(10,955,879)	$	1,986,574,480
BALANCE AS OF JULY 1, 2023													BALANCE AS OF JULY 1, 2023	233,429,994	$	14,005,799	$	942,660,764	$	1,252,525,531	$	(13,242,768)	$	2,195,949,326
Issuance of common stock from stock plan transactions	Issuance of common stock from stock plan transactions	315,433	18,926		3,351,010		—		—		3,369,936		Issuance of common stock from stock plan transactions	605,637	36,338		10,385,712						10,422,050

Repurchases of common stock	Repurchases of common stock	(850,306)	(51,019)		(2,916,551)		(19,289,212)		—		(22,256,782)		Repurchases of common stock	(776,488)	(46,589)		(2,795,358)		(22,327,431)				(25,169,378)

Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	—	—		7,611,546		—		—		7,611,546		Stock-based compensation expense related to stock options, employee stock purchases and restricted stock				10,948,031						10,948,031
Dividends declared ($0.12 per share)	Dividends declared ($0.12 per share)	—	—		—		(28,151,347)		—		(28,151,347)		Dividends declared ($0.12 per share)						(27,991,662)				(27,991,662)
Net income	Net income	—	—		—		72,655,995		—		72,655,995		Net income						104,725,412				104,725,412
Other comprehensive income		—	—		—		—		14,241,836		14,241,836
BALANCE AS OF SEPTEMBER 30, 2022		234,597,392	$	14,075,843	$	908,622,409	$	1,108,061,455	$	3,285,957	$	2,034,045,664
Other comprehensive loss													Other comprehensive loss								(429,972)		(429,972)
BALANCE AS OF SEPTEMBER 30, 2023													BALANCE AS OF SEPTEMBER 30, 2023	233,259,143	$	13,995,548	$	961,199,149	$	1,306,931,850	$	(13,672,740)	$	2,268,453,807

BALANCE AS OF JULY 1, 2021		238,966,589	$	14,337,995	$	859,678,392	$	1,038,037,564	$	4,265,038	$	1,916,318,989
BALANCE AS OF JULY 1, 2022													BALANCE AS OF JULY 1, 2022	235,132,265	$	14,107,936	$	900,576,404	$	1,082,846,019	$	(10,955,879)	$	1,986,574,480
Issuance of common stock from stock plan transactions	Issuance of common stock from stock plan transactions	398,873	23,932		7,093,058		—		—		7,116,990		Issuance of common stock from stock plan transactions	315,433	18,926		3,351,010		—		—		3,369,936

Repurchases of common stock	Repurchases of common stock	(2,830,850)	(169,851)		(9,200,264)		(81,211,798)		—		(90,581,913)		Repurchases of common stock	(850,306)	(51,019)		(2,916,551)		(19,289,212)		—		(22,256,782)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	—	—		7,492,763		—		—		7,492,763		Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	—	—		7,611,546		—		—		7,611,546
Dividends declared ($0.12 per share)	Dividends declared ($0.12 per share)	—	—		—		(28,382,653)		—		(28,382,653)		Dividends declared ($0.12 per share)	—	—		—		(28,151,347)		—		(28,151,347)
Net income	Net income	—	—		—		76,660,548		—		76,660,548		Net income	—	—		—		72,655,995		—		72,655,995
Other comprehensive loss	Other comprehensive loss	—	—		—		—		(994,438)		(994,438)		Other comprehensive loss	—	—		—		—		14,241,836		14,241,836
BALANCE AS OF SEPTEMBER 30, 2021		236,534,612	$	14,192,076	$	865,063,949	$	1,005,103,661	$	3,270,600	$	1,887,630,286
BALANCE AS OF SEPTEMBER 30, 2022													BALANCE AS OF SEPTEMBER 30, 2022	234,597,392	$	14,075,843	$	908,622,409	$	1,108,061,455	$	3,285,957	$	2,034,045,664

GENTEX CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT

For the Nine Months Ended September 30, ~~2022~~2023 and ~~2021~~2022


		Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Total Shareholders’ Investment			Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Investment
BALANCE AS OF JANUARY 1, 2022		236,440,840	$	14,186,450	$	879,413,385	$	1,042,461,388	$	1,927,244	$	1,937,988,467
BALANCE AS OF JANUARY 1, 2023													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	Issuance of common stock from stock plan transactions	1,284,615	77,077		12,288,026		—		—		12,365,103		Issuance of common stock from stock plan transactions	1,833,596	110,016		24,194,845		—		—		24,304,861

Issuance of common stock for equity investment purchases		162,433	9,746		4,990,266		—		—		5,000,012

Repurchases of common stock	Repurchases of common stock	(3,290,496)	(197,430)		(11,042,381)		(82,268,993)		—		(93,508,804)		Repurchases of common stock	(2,743,788)	(164,628)		(9,707,255)		(68,863,618)		—		(78,735,501)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	—	—		22,973,113		—		—		22,973,113		Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	—	—		29,212,236		—		—		29,212,236
Dividends declared ($0.36 per share)	Dividends declared ($0.36 per share)	—	—		—		(84,719,963)		—		(84,719,963)		Dividends declared ($0.36 per share)	—	—		—		(84,049,880)		—		(84,049,880)
Net income	Net income	—	—		—		232,589,023		—		232,589,023		Net income	—	—		—		311,459,076		—		311,459,076
Other comprehensive income	Other comprehensive income	—	—		—		—		1,358,713		1,358,713		Other comprehensive income	—	—		—		—		470,194		470,194
BALANCE AS OF SEPTEMBER 30, 2022		234,597,392	$	14,075,843	$	908,622,409	$	1,108,061,455	$	3,285,957	$	2,034,045,664
BALANCE AS OF SEPTEMBER 30, 2023													BALANCE AS OF SEPTEMBER 30, 2023	233,259,143	$	13,995,548	$	961,199,149	$	1,306,931,850	$	(13,672,740)	$	2,268,453,807

BALANCE AS OF JANUARY 1, 2021		243,692,869	$	14,621,572	$	852,771,508	$	1,089,698,996	$	6,851,052	$	1,963,943,128
BALANCE AS OF JANUARY 1, 2022													BALANCE AS OF JANUARY 1, 2022	236,440,840	$	14,186,450	$	879,413,385	$	1,042,461,388	$	1,927,244	$	1,937,988,467
Issuance of common stock from stock plan transactions	Issuance of common stock from stock plan transactions	1,838,789	110,327		20,663,547		—		—		20,773,874		Issuance of common stock from stock plan transactions	1,284,615	77,077		12,288,026		—		—		12,365,103

Issuance of common stock related to acquisitions													Issuance of common stock related to acquisitions	162,433	9,746		4,990,266		—		—		5,000,012
Repurchases of common stock	Repurchases of common stock	(8,997,046)	(539,823)		(28,486,027)		(275,169,905)		—		(304,195,755)		Repurchases of common stock	(3,290,496)	(197,430)		(11,042,381)		(82,268,993)		—		(93,508,804)
Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	—	—		20,114,921		—		—		20,114,921		Stock-based compensation expense related to stock options, employee stock purchases and restricted stock	—	—		22,973,113		—		—		22,973,113
Dividends declared ($0.36 per share)	Dividends declared ($0.36 per share)	—	—		—		(86,043,266)		—		(86,043,266)		Dividends declared ($0.36 per share)	—	—		—		(84,719,963)		—		(84,719,963)
Net income	Net income	—	—		—		276,617,836		—		276,617,836		Net income	—	—		—		232,589,023		—		232,589,023
Other comprehensive loss	Other comprehensive loss	—	—		—		—		(3,580,452)		(3,580,452)		Other comprehensive loss	—	—		—		—		1,358,713		1,358,713
BALANCE AS OF SEPTEMBER 30, 2021		236,534,612	$	14,192,076	$	865,063,949	$	1,005,103,661	$	3,270,600	$	1,887,630,286
BALANCE AS OF SEPTEMBER 30, 2022													BALANCE AS OF SEPTEMBER 30, 2022	234,597,392	$	14,075,843	$	908,622,409	$	1,108,061,455	$	3,285,957	$	2,034,045,664

GENTEX CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Nine Months Ended September 30, ~~2022~~2023 and ~~2021~~2022


		2022		2021			2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:	CASH FLOWS FROM OPERATING ACTIVITIES:					CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	Net income	$	232,589,023	$	276,617,836	Net income	$	311,459,076	$	232,589,023
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	Depreciation and amortization	73,289,065		75,105,881		Depreciation and amortization	71,001,177		73,289,065
(Gain) on disposal of assets	(Gain) on disposal of assets	(56,257)		(459,528)		(Gain) on disposal of assets	(271,510)		(56,257)
Loss on disposal of assets	Loss on disposal of assets	22,096		213,430		Loss on disposal of assets	250,435		22,096
(Gain) on sale of investments		(391,378)		(969,971)
Loss on sale of investments		1,248,450		192,346
(Gain) on sale of investments and equity method investment income						(Gain) on sale of investments and equity method investment income	(2,747,586)		(391,378)
Loss on sale of investments and equity method investment losses						Loss on sale of investments and equity method investment losses	6,840,692		1,248,450
Change in deferred income taxes	Change in deferred income taxes	4,785,787		(20,269,706)		Change in deferred income taxes	(11,870,944)		4,785,787
Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock	Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock	22,973,113		20,114,921		Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock	29,212,236		22,973,113

Change in operating assets and liabilities:	Change in operating assets and liabilities:					Change in operating assets and liabilities:
Accounts receivable, net	Accounts receivable, net	(42,618,585)		43,704,625		Accounts receivable, net	(74,648,395)		(42,618,585)
Inventories	Inventories	(102,018,719)		(66,308,038)		Inventories	8,907,490		(102,018,719)
Prepaid expenses and other	Prepaid expenses and other	(16,978,469)		(45,504,501)		Prepaid expenses and other	(5,416,624)		(16,978,469)
Accounts payable	Accounts payable	52,511,201		15,748,219		Accounts payable	27,451,773		52,511,201
Accrued liabilities, excluding dividends declared and short-term debt		11,002,238		1,195,477
Accrued liabilities, excluding dividends declared						Accrued liabilities, excluding dividends declared	7,500,486		11,002,238
Net cash provided by operating activities	Net cash provided by operating activities	236,357,565		299,380,991		Net cash provided by operating activities	367,668,306		236,357,565

CASH FLOWS USED FOR INVESTING ACTIVITIES:	CASH FLOWS USED FOR INVESTING ACTIVITIES:					CASH FLOWS USED FOR INVESTING ACTIVITIES:
Activity in available-for-sale securities:
Activity in investments:						Activity in investments:
Sales proceeds	Sales proceeds	37,429,595		34,250,068		Sales proceeds	32,839,883		37,429,595
Maturities and calls	Maturities and calls	3,500,000		26,110,000		Maturities and calls	14,435,000		3,500,000
Purchases	Purchases	(25,304,476)		(86,228,584)		Purchases	(112,608,739)		(49,554,476)
Purchase of equity method investments		(24,250,000)		—

Plant and equipment additions	Plant and equipment additions	(108,475,787)		(44,357,786)		Plant and equipment additions	(121,393,801)		(108,475,787)
Proceeds from sale of plant and equipment	Proceeds from sale of plant and equipment	91,949		2,550,805		Proceeds from sale of plant and equipment	185,610		91,949
Acquisition of businesses, net of cash acquired		—		(12,023,440)

Increase in other assets	Increase in other assets	(2,310,428)		(2,763,847)		Increase in other assets	(2,533,687)		(2,310,428)
Net cash used for investing activities	Net cash used for investing activities	(119,319,147)		(82,462,784)		Net cash used for investing activities	(189,075,734)		(119,319,147)

CASH FLOWS USED FOR FINANCING ACTIVITIES:	CASH FLOWS USED FOR FINANCING ACTIVITIES:					CASH FLOWS USED FOR FINANCING ACTIVITIES:

Issuance of common stock from stock plan transactions	Issuance of common stock from stock plan transactions	12,365,103		20,773,874		Issuance of common stock from stock plan transactions	24,304,861		12,365,103
Cash dividends paid	Cash dividends paid	(84,941,178)		(86,902,257)		Cash dividends paid	(84,159,105)		(84,941,178)
Repurchases of common stock	Repurchases of common stock	(83,840,290)		(304,195,755)		Repurchases of common stock	(76,859,341)		(83,840,290)

Net cash used for financing activities	Net cash used for financing activities	(156,416,365)		(370,324,138)		Net cash used for financing activities	(136,713,585)		(156,416,365)

NET DECREASE IN CASH AND CASH EQUIVALENTS		(39,377,947)		(153,405,931)
NET INCREASE IN CASH AND CASH EQUIVALENTS						NET INCREASE IN CASH AND CASH EQUIVALENTS	41,878,987		(39,377,947)

CASH AND CASH EQUIVALENTS, beginning of period		262,311,670		423,371,036
CASH, CASH EQUIVALENTS, and RESTRICTED CASH, beginning of period						CASH, CASH EQUIVALENTS, and RESTRICTED CASH, beginning of period	218,754,638		262,311,670

CASH AND CASH EQUIVALENTS, end of period		$	222,933,723	$	269,965,105
CASH, CASH EQUIVALENTS, and RESTRICTED CASH, end of period						CASH, CASH EQUIVALENTS, and RESTRICTED CASH, end of period	$	260,633,625	$	222,933,723


	Nine Months Ended September 30,
SUPPLEMENTAL CASH FLOW DATA	2023		2022
Non-cash investing and financing activities:
Property and equipment in accounts payable and accrued expenses and other current liabilities	$	9,708,125	$	5,064,356

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~~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 September 30, ~~2022,~~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 September 30, ~~2022~~2023 and December 31, ~~2021~~2022 was ~~$313.9~~$313.2 million and ~~$314.0~~$313.8 million, respectively, as set forth in the table below:


	Carrying Amount
Balance as of December 31, ~~2021~~2022	$	~~313,960,209~~313,807,494
Acquisitions	—
Divestitures	—
Impairments	—
Other	~~(108,265)~~(650,101)
Balance as of September 30, ~~2022~~2023	$	~~313,851,944~~313,157,393

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,~~UAW strike, 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:

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of September 30, ~~2022:~~2023:


Other Intangible Assets	Other Intangible Assets	Gross		Accumulated Amortization		Net		Assumed Useful Life	Other Intangible Assets	Gross		Accumulated Amortization		Net		Assumed Useful Life
Gentex Patents	Gentex Patents	$	39,510,640	$	(27,796,894)	$	11,713,746	Various	Gentex Patents	$	39,170,904	$	(27,611,804)	$	11,559,100	Various
Vaporsens Technology Licenses		351,290		(81,911)		269,379		Various

Other Intangible Assets	Other Intangible Assets								Other Intangible Assets
HomeLink® Trade Names and Trademarks	HomeLink® Trade Names and Trademarks	$	52,000,000	$	—	$	52,000,000	Indefinite	HomeLink® Trade Names and Trademarks	$	52,000,000	$	—	$	52,000,000	Indefinite
HomeLink® Technology	HomeLink® Technology	180,000,000		(135,000,000)		45,000,000		12 years	HomeLink® Technology	180,000,000		(150,000,000)		30,000,000		12 years
Existing Customer Platforms	Existing Customer Platforms	43,000,000		(38,700,000)		4,300,000		10 years	Existing Customer Platforms	43,000,000		(43,000,000)		—		10 years
Exclusive Licensing Agreement	Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite	Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite
Vaporsens In-Process R&D	Vaporsens In-Process R&D	11,000,000		—		11,000,000		Indefinite	Vaporsens In-Process R&D	11,000,000		—		11,000,000		Indefinite
Argil In-Process R&D	Argil In-Process R&D	6,278,132		—		6,278,132		Indefinite	Argil In-Process R&D	6,278,132		—		6,278,132		Indefinite
Air-Craftglass In-Process R&D	Air-Craftglass In-Process R&D	1,507,778		—		1,507,778		Indefinite	Air-Craftglass In-Process R&D	1,507,778		—		1,507,778		Indefinite
Guardian Trade Names	Guardian Trade Names	1,300,000		—		1,300,000		Indefinite	Guardian Trade Names	1,300,000		—		1,300,000		Indefinite
Guardian In-Process R&D	Guardian In-Process R&D	6,800,000		—		6,800,000		Indefinite	Guardian In-Process R&D	6,800,000		—		6,800,000		Indefinite
Total Other Intangible Assets	Total Other Intangible Assets	$	397,885,910	$	(173,700,000)	$	224,185,910		Total Other Intangible Assets	$	397,885,910	$	(193,000,000)	$	204,885,910

Total Patents & Other Intangible Assets	Total Patents & Other Intangible Assets	$	437,747,840	$	(201,578,805)	$	236,169,035		Total Patents & Other Intangible Assets	$	437,056,814	$	(220,611,804)	$	216,445,010

As of December 31, ~~2021:~~2022:


Other Intangible Assets	Other Intangible Assets	Gross		Accumulated Amortization		Net		Assumed Useful Life	Other Intangible Assets	Gross		Accumulated Amortization		Net		Assumed Useful Life
Gentex Patents	Gentex Patents	$	39,362,187	$	(26,506,155)	$	12,856,032	Various	Gentex Patents	$	40,653,851	$	(27,820,383)	$	12,833,468	Various
Vaporsens Technology Licenses		351,290		(50,107)		301,183		Various

Other Intangible Assets	Other Intangible Assets								Other Intangible Assets
HomeLink® Trade Names and Trademarks	HomeLink® Trade Names and Trademarks	$	52,000,000	$	—	$	52,000,000	Indefinite	HomeLink® Trade Names and Trademarks	$	52,000,000	$	—	$	52,000,000	Indefinite
HomeLink® Technology	HomeLink® Technology	180,000,000		(123,750,000)		56,250,000		12 years	HomeLink® Technology	180,000,000		(138,750,000)		41,250,000		12 years
Existing Customer Platforms	Existing Customer Platforms	43,000,000		(35,475,000)		7,525,000		10 years	Existing Customer Platforms	43,000,000		(39,775,000)		3,225,000		10 years
Exclusive Licensing Agreement	Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite	Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite
Vaporsens In-Process R&D	Vaporsens In-Process R&D	11,000,000		—		11,000,000		Indefinite	Vaporsens In-Process R&D	11,000,000		—		11,000,000		Indefinite
Argil In-Process R&D	Argil In-Process R&D	6,278,132		—		6,278,132		Indefinite	Argil In-Process R&D	6,278,132		—		6,278,132		Indefinite
Air-Craftglass In-Process R&D	Air-Craftglass In-Process R&D	1,507,778		—		1,507,778		Indefinite	Air-Craftglass In-Process R&D	1,507,778		—		1,507,778		Indefinite
Guardian Trade Names	Guardian Trade Names	1,384,857		—		1,384,857		Indefinite	Guardian Trade Names	1,300,000		—		1,300,000		Indefinite
Guardian In-Process R&D	Guardian In-Process R&D	7,243,860		—		7,243,860		Indefinite	Guardian In-Process R&D	6,800,000		—		6,800,000		Indefinite
Total Other Intangible Assets	Total Other Intangible Assets	$	398,414,627	$	(159,225,000)	$	239,189,627		Total Other Intangible Assets	$	397,885,910	$	(178,525,000)	$	219,360,910

Total Patents & Other Intangible Assets	Total Patents & Other Intangible Assets	$	438,128,104	$	(185,781,262)	$	252,346,842		Total Patents & Other Intangible Assets	$	438,539,761	$	(206,345,383)	$	232,194,378

Amortization expense on patents and intangible assets was approximately ~~$5.5~~$5.2 million and ~~$16.6~~$15.6 million during the three and nine months ended September 30, ~~2022,~~2023, respectively, ~~and~~compared to approximately $5.5 million and ~~$16.7~~$16.6 million for the same periods ended September 30, ~~2021,~~2022, respectively.

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

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

~~Excluding the impact of any future acquisitions, the Company estimates amortization expense for the year ending December 31, 2022 to be~~ approximately ~~$22~~$16 million, for the year ending December 31, ~~2023~~2025 to be approximately ~~$20 million, for the year ending December 31, 2024 to be approximately $16~~$13 million, and for each of the years ending December 31, ~~2025~~2026 and December 31, ~~2026~~2027 to be approximately ~~$12~~$5 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% common shares 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 $39.7 million as of September 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)~~. On June 3, 2022, the Company purchased an equity investment in GreenMarbles for $20.0 million, in addition to an issuance of $5.0 million worth of common stock. GreenMarbles is a leading provider of sustainable solutions for integration into properties. 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 also made technology investments in certain non-consolidated affiliates for common share 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 ~~then~~ held at cost. ~~These~~

Such technology investments totaled approximately ~~$14.1~~$125.3 million and ~~$16.8~~$69.5 million as of September 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively. AsOn March 9, 2023, the Company purchased a 15% equity investment in Adasky, LTD. for $21.5 million. On July 5, 2023, the Company purchased an additional 12% equity investment in Adasky, for an additional $21.5 million. Adasky is an Israeli-based leading developer and manufacturer of ~~September 30, 2022, $1.6~~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. $12.5~~sheets as of September 30, 2023 and December 31, 2022, respectively. $123.1 million and ~~$16.8~~$65.7 million of these investments are classified within Long-Term Investments in the condensed consolidated balance sheets as of September 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively.

Assets or liabilities that have recurring fair value measurements are shown below as of September 30, ~~2022~~2023 and December 31, ~~2021:~~2022:

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of September 30, ~~2022:~~2023:


				Fair Value Measurements at Reporting Date Using									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			Total as of		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Description	September 30, 2022		(Level 1)		(Level 2)		(Level 3)		Description	September 30, 2023		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	Cash & Cash Equivalents	$	222,933,723	$	222,933,723	$	—	$	—	Cash & Cash Equivalents	$	260,633,625	$	260,633,625	$	—	$	—

Short-Term Investments:	Short-Term Investments:									Short-Term Investments:
Certificate of Deposit	Certificate of Deposit	1,732,547		1,732,547		—		—		Certificate of Deposit	989,198		989,198		—		—
Corporate Bonds	Corporate Bonds	5,446,048		—		5,446,048		—		Corporate Bonds	1,927,301		—		1,927,301		—
Government Securities	Government Securities	2,209,331		—		2,209,331		—		Government Securities	5,176,215		—		5,176,215		—
Municipal Bonds	Municipal Bonds	3,509,688		—		3,509,688		—		Municipal Bonds	2,409,861		—		2,409,861		—
Other	Other	1,230,180		1,230,180		—		—		Other	4,723,625		1,256,600		3,467,025		—
Long-Term Investments:	Long-Term Investments:									Long-Term Investments:
Asset Backed Securities	Asset Backed Securities	20,942,859		—		20,942,859		—		Asset Backed Securities	21,064,870		—		21,064,870		—
Certificate of Deposit	Certificate of Deposit	238,793		238,793		—		—		Certificate of Deposit	740,950		740,950		—		—
Corporate Bonds	Corporate Bonds	34,522,617		—		34,522,617		—		Corporate Bonds	50,484,099		—		50,484,099		—
Government Securities	Government Securities	37,693,740		—		37,693,740		—		Government Securities	28,297,530		—		28,297,530		—
Municipal Bonds	Municipal Bonds	48,946,743		—		48,946,743		—		Municipal Bonds	47,583,725		—		47,583,725		—

Common Stock										Common Stock	1,386,988		1,386,988		—		—
Total	Total	$	379,406,269	$	226,135,243	$	153,271,026	$	—	Total	$	425,417,987	$	265,007,361	$	160,410,626	$	—

As of December 31, ~~2021:~~2022:


				Fair Value Measurements at Reporting Date Using									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			Total as of		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Description	December 31, 2021		(Level 1)		(Level 2)		(Level 3)		Description	December 31, 2022		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	Cash & Cash Equivalents	$	262,311,670	$	262,311,670	$	—	$	—	Cash & Cash Equivalents	$	214,754,638	$	214,754,638	$	—	$	—
Restricted Cash										Restricted Cash	4,000,000		4,000,000		—		—
Short-Term Investments:	Short-Term Investments:									Short-Term Investments:
Certificate of Deposit	Certificate of Deposit	1,507,770		1,507,770		—		—		Certificate of Deposit	1,736,163		1,736,163		—		—
Corporate Bonds	Corporate Bonds	2,018,440		—		2,018,440		—		Corporate Bonds	5,473,341		—		5,473,341		—
Government Securities	Government Securities	—		—		—		—		Government Securities	4,423,041		—		4,423,041		—
Municipal Bonds	Municipal Bonds	—		—		—		—		Municipal Bonds	5,174,773		—		5,174,773		—
Other	Other	1,897,402		1,897,402		—		—		Other	2,347,602		1,093,602		1,254,000		—
Long-Term Investments:	Long-Term Investments:									Long-Term Investments:
Asset-backed Securities	Asset-backed Securities	25,799,513		—		25,799,513		—		Asset-backed Securities	18,829,696		—		18,829,696		—
Certificate of Deposit	Certificate of Deposit	2,056,710		2,056,710		—		—		Certificate of Deposit	238,925		238,925		—		—
Corporate Bonds	Corporate Bonds	40,354,929		—		40,354,929		—		Corporate Bonds	36,310,477		—		36,310,477		—
Governmental Securities	Governmental Securities	47,944,036		—		47,944,036		—		Governmental Securities	36,532,634		—		36,532,634		—
Municipal Bonds	Municipal Bonds	74,720,480		—		74,720,480		—		Municipal Bonds	48,430,166		—		48,430,166
Common Stock										Common Stock	293,300		293,300		—		—
Total	Total	$	458,610,950	$	267,773,552	$	190,837,398	$	—	Total	$	378,544,756	$	222,116,628	$	156,428,128	$	—

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 September 30, ~~2022~~2023 and December 31, ~~2021:~~2022:

As of September 30, ~~2022:~~2023:


				Unrealized									Unrealized
		Cost		Gains		Losses		Market Value			Cost		Gains		Losses		Market Value
Short-Term Investments:	Short-Term Investments:									Short-Term Investments:
Certificate of Deposit	Certificate of Deposit	$	1,750,623	$	—	$	(18,076)	$	1,732,547	Certificate of Deposit	$	1,000,000	$	—	$	(10,802)	$	989,198
Corporate Bonds	Corporate Bonds	5,600,869		—		(154,821)		5,446,048		Corporate Bonds	1,982,128		—		(54,827)		1,927,301
Government Securities	Government Securities	2,211,230		—		(1,899)		2,209,331		Government Securities	5,198,015		—		(21,800)		5,176,215
Municipal Bonds	Municipal Bonds	3,549,066		—		(39,378)		3,509,688		Municipal Bonds	2,431,031		—		(21,170)		2,409,861
Other	Other	1,230,180		—		—		1,230,180		Other	4,723,625		—		—		4,723,625
Long-Term Investments:	Long-Term Investments:									Long-Term Investments:
Asset Backed Securities	Asset Backed Securities	21,716,039		—		(773,180)		20,942,859		Asset Backed Securities	21,273,402		—		(208,532)		21,064,870
Certificate of Deposit	Certificate of Deposit	250,000		—		(11,207)		238,793		Certificate of Deposit	750,000		—		(9,050)		740,950
Corporate Bonds	Corporate Bonds	39,223,627		—		(4,701,010)		34,522,617		Corporate Bonds	53,814,699		—		(3,330,600)		50,484,099
Government Securities	Government Securities	41,116,603		—		(3,422,863)		37,693,740		Government Securities	29,640,890		—		(1,343,360)		28,297,530
Municipal Bonds	Municipal Bonds	54,202,144		186,625		(5,442,026)		48,946,743		Municipal Bonds	51,881,686		378,802		(4,676,763)		47,583,725

Common Stock										Common Stock	1,637,386		2,311		(252,709)		1,386,988
Total	Total	$	170,850,381	$	186,625	$	(14,564,460)	$	156,472,546	Total	$	174,332,862	$	381,113	$	(9,929,613)	$	164,784,362

As of December 31, ~~2021:~~2022:


				Unrealized									Unrealized
		Cost		Gains		Losses		Market Value			Cost		Gains		Losses		Market Value
Short-Term Investments:	Short-Term Investments:									Short-Term Investments:
Certificate of Deposit	Certificate of Deposit	$	1,500,543	$	7,227	$	—	$	1,507,770	Certificate of Deposit	$	1,750,256	$	—	$	(14,093)	$	1,736,163
Corporate Bonds	Corporate Bonds	1,994,639		23,801		—		2,018,440		Corporate Bonds	5,571,417		—		(98,076)		5,473,341

Government Securities										Government Securities	4,476,613		—		(53,572)		4,423,041
Municipal Bonds										Municipal Bonds	5,223,500		—		(48,727)		5,174,773
Other	Other	1,897,402		—		—		1,897,402		Other	2,347,602		—		—		2,347,602
Long-Term Investments:	Long-Term Investments:									Long-Term Investments:
Asset-backed Securities	Asset-backed Securities	26,352,630		34,771		(587,888)		25,799,513		Asset-backed Securities	19,151,229		—		(321,533)		18,829,696
Certificate of Deposit	Certificate of Deposit	2,001,714		54,996		—		2,056,710		Certificate of Deposit	250,000		—		(11,075)		238,925
Corporate Bonds	Corporate Bonds	40,716,866		168,416		(530,353)		40,354,929		Corporate Bonds	40,410,206		—		(4,099,729)		36,310,477
Government Securities	Government Securities	48,385,672		55,939		(497,575)		47,944,036		Government Securities	39,637,461		—		(3,104,827)		36,532,634
Municipal Bonds	Municipal Bonds	72,175,568		2,747,964		(203,052)		74,720,480		Municipal Bonds	53,476,883		235,713		(5,282,430)		48,430,166
Common Stock										Common Stock	292,638		662		—		293,300
Total	Total	$	195,025,034	$	3,093,114	$	(1,818,868)	$	196,299,280	Total	$	172,587,805	$	236,375	$	(13,034,062)	$	159,790,118

Unrealized losses on investments as of September 30, ~~2022,~~2023, are as follows:
Aggregate Unrealized Losses Aggregate Fair Value of Investments
Loss duration of less than one year $ 8,189,761 $ 112,298,649
Loss duration of greater than one year 6,374,699 42,011,693
Total $ 14,564,460 $ 154,310,342


	Aggregate Unrealized Losses		Aggregate Fair Value of Investments
Loss duration of less than one year	$	1,340,283	$	51,123,646
Loss duration of greater than one year	8,589,330		103,252,208
Total	$	9,929,613	$	154,375,854

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Unrealized losses on investments as of December 31, ~~2021,~~2022, are as follows:


		Aggregate Unrealized Losses		Aggregate Fair Value of Investments			Aggregate Unrealized Losses		Aggregate Fair Value of Investments
Loss duration of less than one year	Loss duration of less than one year	$	1,244,053	$	94,417,123	Loss duration of less than one year	$	4,816,103	$	77,701,146
Loss duration of greater than one year	Loss duration of greater than one year	574,815		6,875,230		Loss duration of greater than one year	8,217,959		76,643,586
Total	Total	$	1,818,868	$	101,292,353	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 September 30, ~~2022~~2023 have contractual maturities as follows:


Due within one year	$	~~12,897,614~~10,502,575
Due between one and five years	~~90,409,878~~98,587,270
Due over five years	~~51,934,874~~49,583,904
	$	~~155,242,366~~158,673,749

(4) Inventories

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


		September 30, 2022		December 31, 2021			September 30, 2023		December 31, 2022
Raw materials	Raw materials	$	315,110,961	$	235,014,277	Raw materials	$	281,802,062	$	304,184,004
Work-in-process	Work-in-process	39,805,042		34,032,164		Work-in-process	44,896,661		45,512,275
Finished goods	Finished goods	63,370,158		47,221,001		Finished goods	68,754,057		54,663,991
Total Inventory	Total Inventory	$	418,286,161	$	316,267,442	Total Inventory	$	395,452,780	$	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 two-class method for the three and nine months ended September 30, ~~2022~~2023 and September 30, ~~2021:~~2022:

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021			2023		2022		2023		2022
Basic Earnings Per Share	Basic Earnings Per Share									Basic Earnings Per Share
Net Income	Net Income	$	72,655,995	$	76,660,548	$	232,589,023	$	276,617,836	Net Income	$	104,725,412	$	72,655,995	$	311,459,076	$	232,589,023
Less: Dividends and undistributed earnings allocated to participating securities	Less: Dividends and undistributed earnings allocated to participating securities	1,096,274		1,240,581		3,563,605		4,240,503		Less: Dividends and undistributed earnings allocated to participating securities	1,537,105		1,096,274		4,636,523		3,563,605
Net Income available to common shareholders	Net Income available to common shareholders	$	71,559,721	$	75,419,967	$	229,025,418	$	272,377,333	Net Income available to common shareholders	$	103,188,307	$	71,559,721	$	306,822,553	$	229,025,418

Basic weighted average shares outstanding	Basic weighted average shares outstanding	231,316,879		234,005,573		231,072,421		236,628,999		Basic weighted average shares outstanding	230,047,014		231,316,879		229,866,008		231,072,421
Net Income per share - Basic	Net Income per share - Basic	$	0.31	$	0.32	$	0.99	$	1.15	Net Income per share - Basic	$	0.45	$	0.31	$	1.33	$	0.99

Diluted Earnings Per Share	Diluted Earnings Per Share									Diluted Earnings Per Share
Allocation of Net Income used in basic computation	Allocation of Net Income used in basic computation	$	71,559,721	$	75,419,967	$	229,025,418	$	272,377,333	Allocation of Net Income used in basic computation	$	103,188,307	$	71,559,721	$	306,822,553	$	229,025,418
Reallocation of undistributed earnings	Reallocation of undistributed earnings	848		2,943		4,412		13,289		Reallocation of undistributed earnings	1,978		848		4,577		4,412
Net Income available to common shareholders - Diluted	Net Income available to common shareholders - Diluted	$	71,560,569	$	75,422,910	$	229,029,830	$	272,390,622	Net Income available to common shareholders - Diluted	$	103,190,285	$	71,560,569	$	306,827,130	$	229,029,830

Number of shares used in basic computation	Number of shares used in basic computation	231,316,879		234,005,573		231,072,421		236,628,999		Number of shares used in basic computation	230,047,014		231,316,879		229,866,008		231,072,421
Additional weighted average dilutive common stock equivalents	Additional weighted average dilutive common stock equivalents	300,138		897,636		457,032		1,108,216		Additional weighted average dilutive common stock equivalents	410,397		300,138		315,666		457,032
Diluted weighted average shares outstanding	Diluted weighted average shares outstanding	231,617,017		234,903,209		231,529,453		237,737,215		Diluted weighted average shares outstanding	230,457,411		231,617,017		230,181,674		231,529,453

Net Income per share - Diluted	Net Income per share - Diluted	$	0.31	$	0.32	$	0.99	$	1.15	Net Income per share - Diluted	$	0.45	$	0.31	$	1.33	$	0.99

Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive	Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive	2,456,463		987,757		1,526,986		180,669		Shares related to stock plans not included in diluted average common shares outstanding because their effect would be anti-dilutive	1,384,066		2,456,463		1,410,341		1,526,986

(6) Stock-Based Compensation Plans

As of September 30, ~~2022,~~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.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Readers should refer to Note 5 of the consolidated financial statements in the Company's Annual Report on Form 10-K for the calendar year ended December 31, ~~2021,~~2022, for additional information related to the Prior Plans.

The Company recognized total compensation expense for share-based payments of ~~$7,611,545~~$10,948,031 and $29,212,236 for the three ~~months ended September 30, 2022,~~ and ~~total compensation expense for share-based payments of $22,973,113 for the~~ nine months ended September 30, ~~2022.~~2023, respectively. The Company recognized compensation expense for share-based payments of ~~$7,492,763~~$7,611,546 and ~~$20,114,921~~$22,973,113 for the three and nine months ended

~~GENTEX CORPORATION AND SUBSIDIARIES~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

September 30, ~~2021,~~2022, respectively. A portion of the compensation cost for share based payment awards is capitalized as part of inventory.

2019 Omnibus Incentive Plan

The purpose of the 2019 Omnibus ~~Incentive~~ 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 September 30, ~~2022, 7,994,761~~2023, 9,733,895 share awards have been made under the Plan, resulting in ~~19,523,865~~24,797,549 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		Shares Granted	Conversion Rate	Total Shares Under 2019 Omnibus Plan
Non-Qualified Stock Options	Non-Qualified Stock Options	4,227,080	1.00	4,227,080	Non-Qualified Stock Options	4,811,132	1.00	4,811,132
Restricted Stock	Restricted Stock	3,208,209	4.06	13,025,329	Restricted Stock	4,056,891	4.06	16,470,977
Performance Shares	Performance Shares	559,472	4.06	2,271,456	Performance Shares	865,872	4.06	3,515,440
Total	Total	7,994,761		19,523,865	Total	9,733,895		24,797,549

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 September 30, ~~2022,~~2023, there was ~~$9,723,678~~$8,461,373 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 September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021			2023		2022		2023		2022
Dividend Yield (1)	Dividend Yield (1)	1.78	%	1.83	%	1.79	%	1.86	%	Dividend Yield (1)	1.72	%	1.78	%	1.74	%	1.79	%
Expected volatility (2)	Expected volatility (2)	29.02	%	27.47	%	28.62	%	27.67	%	Expected volatility (2)	28.66	%	29.02	%	28.89	%	28.62	%
Risk-free interest rate (3)	Risk-free interest rate (3)	4.06	%	0.98	%	3.16	%	0.92	%	Risk-free interest rate (3)	4.60	%	4.06	%	4.11	%	3.16	%
Expected term of options (years) (4)	Expected term of options (years) (4)	4.15		4.14		4.15		4.15		Expected term of options (years) (4)	4.14		4.15		4.15		4.15
Weighted-avg. grant date fair value	Weighted-avg. grant date fair value	$5.97		$6.32		$6.28		$6.49		Weighted-avg. grant date fair value	$8.40		$5.97		$7.54		$6.28

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.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 September 30, ~~2022,~~2023, the Company had unearned stock-based compensation of ~~$45,827,137~~$46,555,320 associated with the restricted stock grants issued under the 2019 Omnibus Plan and the ~~Prior~~Second Restricted Stock Plan. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable restriction periods. Compensation expense from restricted stock grants in the three and nine months ended September 30, ~~2022~~2023 was ~~$5,504,462~~$6,369,348 and

~~GENTEX CORPORATION AND SUBSIDIARIES~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

~~$16,130,339,~~ $18,178,157, respectively. Compensation expense from restricted stock grants in the three and nine months ended September 30, ~~2021~~2022 was ~~$5,215,981~~$5,504,462 and ~~$13,978,358,~~$16,130,339, respectively.

Performance Shares

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

As of September 30, ~~2022,~~2023, the Company had unearned stock-based compensation of ~~$8,480,588~~$18,288,329 associated with these performance share grants. The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable performance periods. Compensation expense related to these performance share grants in the three and nine months ended September 30, 2023 was $2,463,158 and $4,600,386, respectively. Compensation expense related to these performance share grants in the three and nine months ended September 30, 2022 was $308,812and $1,431,018, respectively.

As part of its objective of attracting and retaining management to fulfill the Company's strategic goals, the Compensation Committee recommended and the Board approved on February 16, 2023, a retention grant of performance share awards ("PSAs"). In addition to the retention of management, the PSAs have been granted to further align management goals with those of the Company's shareholders. For that reason, the PSAs have been granted with performance criteria and will be based upon achievement of the Company's relative total shareholder return ("TSR") over a four year period (2023-2026), against a predetermined peer group. The grant date fair value of PSAs with TSR targets was determined using a Monte Carlo simulation. Compensation expense related to these retention grants in the three and nine months ended September 30, 2023 was $441,115 and $1,082,333, respectively.

Employee Stock Purchase Plan

Prior to July 1, 2022, the Company had in place an employee stock purchase plan covering 2,000,000 shares of common stock. Under that plan, the Company sold shares at 85% of the stock’s market price at date of purchase. Under ASC 718, Compensation - Stock Compensation, the 15% discounted value was recognized as compensation expense. As of September 30, ~~2022,~~2023, 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 September 30, ~~2022,~~2023, the Company has issued ~~54,977~~250,369 shares under this plan.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(7) 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 ~~income~~loss by component (all amounts shown are net of tax):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Foreign currency translation adjustments:
Balance at beginning of period	$	(5,609,783)	$	(3,107,157)	$	(4,032,239)	$	920,589
Other Comprehensive (loss) income before reclassifications	(717,457)		17,751,603		(2,295,001)		13,723,857

Net current-period change	(717,457)		17,751,603		(2,295,001)		13,723,857
Balance at end of period	(6,327,240)		14,644,446		(6,327,240)		14,644,446

Unrealized (losses) gains on available-for-sale debt securities:
Balance at beginning of period	(7,632,985)		(7,848,722)		(10,110,695)		1,006,655
Other Comprehensive (loss) income before reclassifications	(1,293,419)		(3,714,578)		(468,359)		(13,042,231)
Amounts reclassified from accumulated other comprehensive income	1,580,904		204,811		3,233,554		677,087
Net current-period change	287,485		(3,509,767)		2,765,195		(12,365,144)
Balance at end of period	(7,345,500)		(11,358,489)		(7,345,500)		(11,358,489)







Accumulated other comprehensive (loss) income, end of period	$	(13,672,740)	$	3,285,957	$	(13,672,740)	$	3,285,957

~~GENTEX CORPORATION AND SUBSIDIARIES~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(Unaudited)~~

Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Foreign currency translation adjustments:
Balance at beginning of period $ (3,107,157) $ 879,832 $ 920,589 $ 769,045
Other Comprehensive (loss) income before reclassifications 17,751,603 (349,165) 13,723,857 (238,378)
Net current-period change 17,751,603 (349,165) 13,723,857 (238,378)
Balance at end of period 14,644,446 530,667 14,644,446 530,667
Unrealized gains on available-for-sale debt securities:
Balance at beginning of period (7,848,722) 3,385,206 1,006,655 6,082,007
Other Comprehensive (loss) income before reclassifications (3,714,578) (645,273) (13,042,231) (2,727,750)
Amounts reclassified from accumulated other comprehensive income 204,811 — 677,087 (614,324)
Net current-period change (3,509,767) (645,273) (12,365,144) (3,342,074)
Balance at end of period (11,358,489) 2,739,933 (11,358,489) 2,739,933
Accumulated other comprehensive (loss) income, end of period $ 3,285,957 $ 3,270,600 $ 3,285,957 $ 3,270,600

The following table presents details of reclassifications out of accumulated other comprehensive ~~(loss) income~~loss for the three and nine months ended September 30, ~~2022~~2023 and ~~2021:~~

Details about Accumulated Other Comprehensive Income Components Amounts Reclassified from Other Comprehensive (Loss) Income Affected Line item in the Consolidated Statements of Income
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Unrealized (losses) gains on available-for-sale debt securities
Realized (loss) gain on sale
of securities $ (259,254) $ — $ (857,072) $ 777,625 Investment income
Provision for income taxes 54,443 — 179,985 (163,301) Provision for income taxes
Total net reclassifications for the period $ (204,811) $ — $ (677,087) $ 614,324 Net of tax
2022:

~~(8) Debt and Financing Arrangements~~

~~On October 15, 2018, the Company entered into a Credit Agreement (“Credit Agreement”) with PNC as the administrative agent and sole lender.~~

Pursuant to this Credit Agreement, the Company has access to a $150 million senior revolving credit facility (“Revolver”). Under the terms of the Credit Agreement, the Company is entitled to further request an additional aggregate principal amount of up to $100 million, subject to the satisfaction of certain conditions. In addition, the Company is entitled to the benefit of swing loans from amounts otherwise available under the Revolver in the aggregate principal amount of up to $20 million and to request Letters of Credit from amounts otherwise available under the Revolver in the aggregate principle amount up to $20 million, both subject to certain conditions. The obligations of the Company under the Credit Agreement are not secured,


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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Unrealized gains (losses) on available-for-sale debt securities
Realized gain (loss) on sale of securities	$	(2,001,144)	$	(259,254)	$	(4,093,106)	$	(857,072)	Investment income
Provision for income taxes	420,240		54,443		859,552		179,985		Provision for income taxes
Total net reclassifications for the period	$	(1,580,904)	$	(204,811)	$	(3,233,554)	$	(677,087)

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

~~but are~~

(8) 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 ~~covenants.~~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 September 30, ~~2022,~~2023, there was no outstanding balance on the Revolver. ~~The Revolver expires on October 15, 2023.~~

~~The Credit Agreement contains customary representations and warranties and certain covenants that place certain limitations on the Company.~~

As of September 30, ~~2022,~~2023, the Company is in compliance with its covenants under the Credit Agreement.

(9) Equity

The decrease in common stock during the nine months ended September 30, ~~2022,~~2023, was primarily due to the repurchases of ~~3.3~~2.7 million shares, partially offset by the issuance of ~~1.4~~1.8 million shares of the Company’s common stock, net of cancellations, under the Company’s stock-based compensation ~~plans and the issuance of 0.2 million shares of common stock as partial consideration for an investment in Green Marbles.~~plans. The total net decrease was ~~1.8~~0.9 million shares.

The Company recorded a cash dividend of $0.120 per share during the third quarter of ~~2022~~2023 as compared to a cash dividend of $0.120 per share during the third quarter of ~~2021.~~2022. The third quarter ~~2022~~2023 dividend of ~~$28.2~~$28.0 million was declared on ~~August 31, 2022~~September 1, 2023 and was paid on October ~~19, 2022.~~18, 2023.

(10) 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.

The Company is responding to a subpoena issued by the staff of the Division of Enforcement of the SEC for records from approximately 2015-2019. The Company has been informed that the SEC staff may be reviewing certain accounting determinations, including determinations that the staff believes could have impacted the Company’s reported earnings per share for certain periods during that time frame. The Company has continued to assert that its financial statements filed with the SEC in Forms 10-K and 10-Q in 2015-2019 present fairly, in all material respects, its financial condition, results of operations and cash flows as of or for the periods ending on their respective dates. The Company maintains that its actions were appropriate; however, the Company remains open to resolving this matter with the SEC, and therefore, the Company has an amount accrued as of September 30, 2022 for an estimated liability. The Company does not believe the accrued liability is material to the financial statements.

(11) 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. These three non-automotive segments are combined into the "Other" segment as shown below.~~In first quarter of 2021, the Company acquired Guardian, which is combined in the Automotive Segment below. Further information in regards to the Guardian transaction is included inNote 15~~ ~~of the financial statements.~~

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021			2023		2022		2023		2022
Revenue:	Revenue:									Revenue:
Automotive Products	Automotive Products	$	480,937,253	$	391,338,185	$	1,391,840,835	$	1,287,578,273	Automotive Products	$	564,510,277	$	480,937,253	$	1,676,043,013	$	1,391,840,835
Other	Other	12,699,442		8,260,559		33,469,637		23,750,336		Other	11,338,213		12,699,442		34,039,634		33,469,637
Total	Total	$	493,636,695	$	399,598,744	$	1,425,310,472	$	1,311,328,609	Total	$	575,848,490	$	493,636,695	$	1,710,082,647	$	1,425,310,472
Income (Loss) from operations:	Income (Loss) from operations:									Income (Loss) from operations:
Automotive Products	Automotive Products	$	87,109,317	$	89,121,170	$	277,492,945	$	325,579,533	Automotive Products	$	121,875,176	$	87,109,317	$	362,044,032	$	277,492,945
Other	Other	(317,777)		(956,230)		(1,604,532)		(3,756,270)		Other	541,353		(317,777)		912,532		(1,604,532)
Total	Total	$	86,791,540	$	88,164,940	$	275,888,413	$	321,823,263	Total	$	122,416,529	$	86,791,540	$	362,956,564	$	275,888,413

(12) Income Taxes

The effective tax rate was ~~15.2%~~15.6% in the nine months ended September 30, ~~2022,~~2023, compared to an effective tax rate of ~~15.4%~~15.2% for the same period in ~~2021.~~2022. 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.

(13) Revenue

The following table shows the Company’s Automotive revenue and Other Products revenue disaggregated by geographical location for Automotive Products for the three and nine month periods ended September 30, ~~2022~~2023 and September 30, ~~2021:~~2022:


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
Revenue	Revenue	2022		2021		2022		2021		Revenue	2023		2022		2023		2022
Automotive Products	Automotive Products									Automotive Products
U.S.	U.S.	$	147,865,393	$	128,570,314	$	435,877,621	$	410,852,689	U.S.	$	171,312,177	$	147,865,393	$	520,034,256	$	435,877,621
Germany	Germany	65,508,444		55,162,289		204,653,773		183,513,145		Germany	72,169,634		65,508,444		226,739,945		204,653,773
Japan	Japan	63,797,497		53,750,242		165,215,741		161,814,352		Japan	73,330,091		63,797,497		229,664,642		165,215,741
Mexico	Mexico	32,024,141		25,239,690		93,951,398		85,574,821		Mexico	38,494,969		32,024,141		109,585,767		93,951,398
Other	Other	171,741,778		128,615,650		492,142,302		445,823,266		Other	209,203,406		171,741,778		590,018,403		492,142,302
Total Automotive Products	Total Automotive Products	$	480,937,253	$	391,338,185	$	1,391,840,835	$	1,287,578,273	Total Automotive Products	$	564,510,277	$	480,937,253	$	1,676,043,013	$	1,391,840,835
Other Products (U.S.)	Other Products (U.S.)	12,699,442		8,260,559		33,469,637		23,750,336		Other Products (U.S.)	11,338,213		12,699,442		34,039,634		33,469,637
Total Revenue	Total Revenue	$	493,636,695	$	399,598,744	$	1,425,310,472	$	1,311,328,609	Total Revenue	$	575,848,490	$	493,636,695	$	1,710,082,647	$	1,425,310,472

Revenue by geographic area may fluctuate based on many factors, including: exposure to local economic, political, and labor conditions; ~~a pandemic;~~ 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.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table disaggregates the Company’s Automotive revenue and Other revenue by major source for the three and nine month periods ended September 30, ~~2022~~2023 and September 30, ~~2021:~~2022:


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
Revenue	Revenue	2022		2021		2022		2021		Revenue	2023		2022		2023		2022
Automotive Segment	Automotive Segment									Automotive Segment
Automotive Mirrors & Electronics	Automotive Mirrors & Electronics	$	448,773,060	$	360,415,449	$	1,291,891,664	$	1,185,997,034	Automotive Mirrors & Electronics	$	531,423,832	$	448,773,060	$	1,577,792,206	$	1,291,891,664
HomeLink Modules*	HomeLink Modules*	32,164,193		30,922,736		99,949,171		101,581,239		HomeLink Modules*	33,086,445		32,164,193		98,250,807		99,949,171
Total Automotive Products	Total Automotive Products	$	480,937,253	$	391,338,185	$	1,391,840,835	$	1,287,578,273	Total Automotive Products	$	564,510,277	$	480,937,253	$	1,676,043,013	$	1,391,840,835

Other Segment	Other Segment									Other Segment
Fire Protection Products	Fire Protection Products	10,484,680		5,886,227		28,577,916		18,010,048		Fire Protection Products	5,151,785		10,484,680		20,471,868		28,577,916
Aerospace Products	Aerospace Products	2,214,762		2,374,332		4,891,721		5,740,288		Aerospace Products	6,186,428		2,214,762		13,567,766		4,891,721
Total Other	Total Other	$	12,699,442	$	8,260,559	$	33,469,637	$	23,750,336	Total Other	$	11,338,213	$	12,699,442	$	34,039,634	$	33,469,637

*Excludes HomeLink revenue where HomeLink electronics are integrated into interior auto-dimming mirrors.	*Excludes HomeLink revenue where HomeLink electronics are integrated into interior auto-dimming mirrors.					*Excludes HomeLink revenue where HomeLink electronics are integrated into interior auto-dimming mirrors.

(14) 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.~~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 September 30, ~~2022~~2023 was 23 years, with a weighted average discount rate of ~~5.7%~~6.3%.

Future minimum lease payments for operating leases as of September 30, ~~2022~~2023 were as follows:


Year ending December 31,	Year ending December 31,			Year ending December 31,

2022 (excluding the nine months ended September 30, 2022)		$	337,069
2023		1,039,840
2023 (excluding the nine months ended September 30, 2023)				2023 (excluding the nine months ended September 30, 2023)	$	499,620
2024	2024	297,208		2024	1,526,098
2025	2025	97,778		2025	1,058,401
2026	2026	18,388		2026	455,548
2027				2027	215,734
Thereafter	Thereafter	888		Thereafter	—
Total future minimum lease payments	Total future minimum lease payments	1,791,171		Total future minimum lease payments	3,755,401
Less imputed interest	Less imputed interest	(44,590)		Less imputed interest	(189,042)
Total	Total	$	1,746,581	Total	$	3,566,359


~~Reported as of September 30, 2022~~

Accrued Liabilities	$	~~1,145,538~~1,633,120
Other Non-Current Liabilities	~~601,043~~1,933,239
Total	$	~~1,746,581~~3,566,359

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(15) ~~Acquisition~~Subsequent Event

On ~~March 3, 2021,~~November 2, 2023, the Company acquired ~~Guardian~~certain technology assets from eSight Corporation for approximately ~~$12.0 million. Guardian~~$18.9 million in cash, in addition to the 20% equity the Company previously held in the assets, 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 ~~an Israeli research~~compatible with more than 20 eye conditions including Macular Degeneration, Diabetic Retinopathy, and ~~development company that specializes in in-cabin sensing technologies for~~Stargardt disease. These assets will be classified within the ~~automotive industry. The Company funded the acquisition with cash on hand. The valuation process was completed during the fourth quarter of 2021.~~Company's Other segment.

~~Guardian is now a 100% owned subsidiary of the Company as Gentex Technologies (Israel), LTD, and is classified within the Automotive segment.~~ The Company ~~accounted~~will account for the acquisition under the provisions of FASB ASC Topic 805, Business Combinations.

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

THIRD QUARTER ~~2022~~2023 VERSUS THIRD QUARTER ~~2021~~2022

Net Sales. Net sales for the third quarter of ~~2022~~2023 increased by ~~$94.0~~$82.2 million or ~~24%~~17%, when compared with the third quarter of ~~2021.~~2022.

Automotive net sales for the third quarter of ~~2022~~2023 were ~~$480.9~~$564.5 million, a 17% increase when compared with automotive net sales of ~~$391.3~~$480.9 million in the third quarter of ~~2021.~~2022. The ~~17%~~10% increase in automotive mirror unit shipments in the third quarter of ~~2022~~2023 to ~~11.5~~12.6 million units, compared with ~~9.8~~11.5 million units in the third quarter of ~~2021,~~2022, was driven ~~primarily~~ by a ~~23%~~12% quarter over quarter increase in exterior auto-dimming mirror unit shipments and a 9% quarter over quarter increase in interior auto-dimming mirror unit shipments.

The below table represents the Company's auto-dimming mirror unit shipments for the three ~~and nine~~ months ended September 30, ~~2022,~~2023, and ~~2021~~2022 (in thousands):


		Three Months Ended September 30,			Nine Months Ended September 30,				Three Months Ended September 30,			Nine Months Ended September 30,
		2022	2021	% Change	2022	2021	% Change		2023	2022	% Change	2023	2022	% Change
North American Interior Mirrors	North American Interior Mirrors	2,156	1,897	14%	6,444	5,843	10%	North American Interior Mirrors	2,366	2,156	10%	7,192	6,444	12%
North American Exterior Mirrors	North American Exterior Mirrors	1,602	1,355	18%	4,532	4,345	4%	North American Exterior Mirrors	1,614	1,602	1%	5,033	4,532	11%
Total North American Mirror Units	Total North American Mirror Units	3,758	3,252	16%	10,976	10,188	8%	Total North American Mirror Units	3,980	3,758	6%	12,224	10,976	11%

International Interior Mirrors	International Interior Mirrors	5,287	4,629	14%	15,282	15,219	—%	International Interior Mirrors	5,709	5,287	8%	17,100	15,282	12%
International Exterior Mirrors	International Exterior Mirrors	2,444	1,928	27%	6,926	6,605	5%	International Exterior Mirrors	2,915	2,444	19%	8,918	6,926	29%
Total International Mirror Units	Total International Mirror Units	7,731	6,557	18%	22,208	21,823	2%	Total International Mirror Units	8,624	7,731	12%	26,018	22,208	17%

Total Interior Mirrors	Total Interior Mirrors	7,443	6,526	14%	21,727	21,062	3%	Total Interior Mirrors	8,076	7,443	9%	24,292	21,727	12%
Total Exterior Mirrors	Total Exterior Mirrors	4,046	3,283	23%	11,457	10,949	5%	Total Exterior Mirrors	4,529	4,046	12%	13,950	11,457	22%
Total Auto-Dimming Mirror Units	Total Auto-Dimming Mirror Units	11,489	9,809	17%	33,184	32,011	4%	Total Auto-Dimming Mirror Units	12,604	11,489	10%	38,242	33,184	15%

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

Other net sales were $11.3 million~~$12.7~~ in the third quarter of 2023, compared to $12.7 million in the third quarter of ~~2022,~~2022. Fire protection sales decreased to $5.2 million for the ~~compared to $8.3 million in the~~ third quarter of ~~2021. This increase is in large part attributable to a 78% quarter over quarter increase in fire protection sales, which increased to $10.5 million for the third quarter of 2022,~~2023, compared to ~~$5.9~~$10.5 million in the same quarter of last year. Dimmable aircraft sales ~~decreased by 7% for~~increased during the third quarter of ~~2022~~2023 to ~~$2.2~~$6.2 million, ~~from $2.4~~compared to $2.2 million in the same quarter of last year.

Cost of Goods Sold. As a percentage of net sales, cost of goods sold ~~increased~~decreased to ~~70.2%~~66.8% for the third quarter of ~~2022,~~2023, versus ~~64.7%~~70.2% in the same quarter last year. The quarter over quarter ~~decrease~~increase in the gross profit margin was primarily the result of as a result of improved fixed overhead leverage, improvements in freight and tariff related costs, cost recoveries and price increases from customers, and improvements in product mix. However, some of these improvements were partially offset by increased raw material ~~cost~~costs, labor costs, and scrap and yield loss increases, ~~unfavorable product mix, prior commitments~~as compared to ~~annual customer price reductions, and labor cost increases.~~the third quarter of 2022. On a quarter over quarter basis, ~~raw material increases had a negative impact of approximately 250 - 300 basis points on gross margin. Both product mix shifts~~both decreases in freight expense and ~~annual customer price reductions~~improved fixed overhead leverage each had a ~~separate negative~~positive impact on gross margin of approximately ~~100~~150 - ~~150~~200 basis points, ~~on a quarter over quarter. Labor~~and customer cost ~~increases~~recoveries and product mix each had a ~~negative~~positive impact of approximately 50 - 100 basis points on gross margin. Raw material increases, labor cost, and scrap and yield loss each had a negative impact on gross margin of approximately 25-50 basis points on a quarter over quarter basis.

Operating Expenses. Engineering, research and development ("E, R & D") expenses for the third quarter of ~~2022~~2023 increased by ~~$3.8~~$6.7 million, when compared with the third quarter of ~~2021.~~2022.

Selling, general and administrative ("S, G & A") expenses increased by ~~17%~~7% or ~~$3.9~~$2.0 million for the third quarter of ~~2022,~~2023, compared to the third quarter of ~~2021.~~2022, primarily due to increased staffing. S, G & A expenses were 5% of net sales in the third

quarter of ~~2022, compared to 6%~~2023 and 5% of net sales in the third quarter of ~~2021. S, G, & A expenses increased on a quarter over quarter basis primarily due to staffing, professional fees, outbound freight expenses, and travel related expenses.~~2022.

Total operating expenses were $69.0 million in the third quarter of 2023, an increase of 14% quarter over quarter or $8.6 million, compared to $60.4 million in the third quarter of ~~2022, an increase of 15% quarter over quarter or $7.7 million, from $52.7 million in the third quarter of 2021.~~2022.

Total Other Income (Loss) ~~Income.~~. Total other income for the third quarter of ~~2022 decreased~~2023 increased by ~~$2.4~~$2.7 million, when compared with the third quarter of ~~2021.~~2022.

Provision for Income Taxes. The effective tax rate was 15.9% for, and an income tax expense of $19.8 million was recorded in, the third quarter of 2023, compared to an effective tax rate of 15.7% for, and an income tax expense of $13.5 million ~~was~~ recorded in, ~~the third quarter of 2022, compared to an income tax expense of $13.2 million for~~ the same quarter of ~~2021.~~2022. 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 third quarter of ~~2022~~2023 was ~~$72.7~~$104.7 million, ~~down~~up from a net income of ~~$76.7~~$72.7 million in the third quarter of ~~2021.~~2022. The change in net income was primarily the result of quarter over quarter ~~changes~~increases in ~~gross margins~~net sales and operating profits.

Earnings Per Share. The Company had earnings per diluted share for the third quarter of ~~2022~~2023 of ~~$0.31,~~$0.45, which compared to earnings per diluted share of ~~$0.32~~$0.31 for the third quarter of ~~2021.~~2022.

NINE MONTHS ENDED SEPTEMBER 30, ~~2022~~2023 VERSUS NINE MONTHS ENDED SEPTEMBER 30, ~~2021~~2022

Net Sales. Net Sales for the nine months ended September 30, ~~2022~~2023 increased by ~~$114.0~~$284.8 million or 9%20%, when compared with the same period in ~~2021.~~2022.

Automotive net sales for the first nine months of ~~2022~~2023 were ~~$1.4~~$1.7 billion, up 8%20% compared with automotive net sales of ~~$1.3~~$1.4 billion for the first nine months of ~~2021,~~2022, primarily due to a 4%15% period over period increase in automotive mirror unit shipments. Domestic automotive mirror shipments in the nine months ended September 30, ~~2022~~2023 increased 8%11% to ~~10.2~~12.2 million units, compared with 11.0 million units in the same period in ~~2021.~~2022. International automotive mirror shipments in the nine months ended September 30, 2023 increased 17% to 26.0 million units, compared with 22.2 million units in the same period in 2022.

Other net sales were ~~$33.5~~$34.0 million for the first nine months of ~~2022,~~2023, compared to ~~$23.8~~$33.5 million for the same period last year. This increase is ~~in large part attributable~~primarily due to ~~a 59% period over period~~the 177% increase in ~~fire~~dimmable window aircraft sales for the first nine months of 2023 to $13.6 million, from $4.9 million for the same period in 2022. Fire protection sales ~~which increased~~decreased by 28% to ~~$28.6~~$20.5 million for the first nine months of ~~2022,~~2023, compared to ~~$18.0~~$28.6 million in the same period of ~~2021. Dimmable aircraft sales decreased by 15% for the first nine months of 2022 to $4.9 million, from $5.7 million for the same period in 2021.~~

2022.

Cost of Goods Sold. As a percentage of net sales, cost of goods sold ~~increased~~decreased to ~~68.0%~~67.3% for the first nine months of ~~2022,~~2023, versus ~~63.7%~~68.0% in the same period last year. The period over period ~~decrease~~increase in the gross profit margin was primarily the result of improved fixed overhead leverage, cost recoveries and customer price increases, and freight expense decreases. These were partially offset by increases in raw material ~~cost increases, unfavorable product mix,~~costs and labor costs, as well as prior commitments to annual customer price ~~reductions, and labor cost increases in response to a tight labor market.~~reductions. On a period over period basis, ~~raw material increases~~freight expense and ~~unfavorable product mix~~fixed overhead leverage each had a ~~separate negative~~positive impact on gross margin of approximately 100 - 150 basis ~~points on gross margin. Annual~~points. Cost recoveries and customer price ~~reductions had a negative impact of approximately 100 - 150 basis points on gross margin on a period over period basis. Labor cost~~ increases had a ~~negative~~positive impact on gross margin of approximately 50 - 100 basis points on a period over period basis. Raw material cost increases and annual customer price reductions each had a negative impact of approximately 50 - 150 basis points on gross margin on a period over period basis.

Operating Expenses. E, R & D expenses for the nine months ended September 30, ~~2022~~2023 were~~$98.4~~ $112.8 million, compared with ~~$86.5~~$98.4 millionfor the same period last year. The ~~14%~~15% increase in E, R & D expenses, in the first nine months of ~~2022~~2023 compared to the same period in ~~2021~~2022 was primarily due to additional staffing, professional fees, and new product ~~development, and the ongoing product re-designs necessary to mitigate electronics part shortages.~~development.

S, G & A expenses for the first nine months of ~~2022~~2023 increased ~~21% or $14.2~~$1.8 million to $83.5 million, when compared ~~with~~to $81.7 million for the same period ~~last year. The increase~~ in 2022. S, G & A expenses were 5% of net sales in the first nine months of ~~2022 compared to~~

2023 and 6% of net sales in the ~~first nine months of 2021 was~~same period in 2022. S, G, & A expenses increased on a year over year basis primarily due to ~~staffing, professional fees, increases in outbound freight expenses, and the return of in-person customer meetings and trade show related expenses.~~increased staffing.

Total Other Income (Loss) ~~Income.~~. Total other ~~loss~~income for the nine months ended September 30, ~~2022~~2023 was ~~$1.6~~$6.1 million, compared with a total other ~~income~~loss of ~~$5.2~~$1.6 million for the same period last year.

Provision for Income Taxes. The effective tax rate was ~~15.2%~~15.6% for the nine months ended September 30, ~~2022,~~2023, compared to ~~15.4%~~15.2% for the same period of ~~2021.~~2022. Generally, effective tax rates for ~~these periods~~the Company 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.

Net Income. Net income for the nine months ended September 30, ~~2022 decreased~~2023 increased by ~~$44.0~~$78.9 million or ~~16%~~34% to ~~$232.6~~$311.5 million, ~~versus $276.6~~compared to $232.6 million in the same period last year. The ~~decrease~~increase in net income was primarily the result of the period over period ~~changes gross margins,~~increases in net sales and operating profits.

Earnings Per Share. The Company had earnings per diluted share for the nine months ended September 30, ~~2022~~2023 of ~~$0.99, which~~$1.33, compared to earnings per diluted share of ~~$1.15~~$0.99 for the nine months ended September 30, 2021. The period over period decrease in earnings per share is primarily due to the lower net income, but was positively impacted by a lower diluted share count when compared to the same period of 2021.2022.

FINANCIAL CONDITION:

The Company's cash and cash equivalents as of September 30, ~~2022~~2023 were ~~$222.9~~$260.6 million, ~~which decreased $39.4~~an increase of $45.9 million, compared to ~~$262.3~~$214.8 million as of December 31, ~~2021.~~ 2022. The ~~decrease~~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 nine months ended September 30, ~~2022, which was partially offset by cash flows from operations.~~2023.

Short-term investments as of September 30, ~~2022~~2023 were ~~$16.1~~$17.5 million, updown from ~~$5.4~~$23.0 million as of December 31, ~~2021,~~2022, and long-term investments were ~~$154.4~~$272.6 million as of September 30, ~~2022, compared to $207.7~~2023, up from $202.3 million as of December 31, ~~2021. Equity method investments~~2022, primarily due to the $43.0 million investment in Adasky, as discussed in Note 3 of the consolidated financial statements.

Accounts receivable as of September 30, 2023 increased approximately $74.6 million compared to ~~$39.7 million,~~December 31, 2022, primarily ~~as a result of additional investment purchases~~due to the increase in sales and timing thereof during the nine months ended September 30, 2022, including the investment in GreenMarbles in the second quarter of 2022. This investment in GreenMarbles was made with $20.0 million in cash and the issuance of $5.0 million of the Company's common stock.

~~Accounts receivable as of September 30, 2022 increased approximately $42.6 million compared to December 31, 2021, primarily due to the timing of sales during the nine months ended September 30, 2022.~~2023. As of September 30, ~~2022,~~2023, all of the Company's material tier one and OEM customers continue to be in good standing.

Inventories as of September 30, ~~2022~~2023 were ~~$418.3~~$395.5 million, compared to ~~$316.3~~$404.4 million as of December 31, ~~2021,~~2022, primarily due to ~~increases~~decreases in raw materials, ~~and~~which was partially offset by increases in finished goods.

Accounts payable as of September 30, ~~2022~~2023 increased approximately ~~$73.1~~$19.6 million to $171.4 million, when compared to December 31, ~~2021,~~2022, primarily driven by month end payment timing ~~increased inventory,~~ and increased capital expenditures.

Accrued liabilities as of September 30, ~~2022~~2023 increased approximately ~~$10.4~~$4.2 million compared to December 31, ~~2021,~~2022, primarily due to an increase in accrued salaries and ~~wages, as well as accrued income taxes.~~wages.

Cash flow from operating activities for the nine months ended September 30, ~~2022 decreased $63.0~~2023 increased $131.3 million to ~~$236.4~~$367.7 million, compared with ~~$299.4~~$236.4 million during the same nine month period last year, primarily due to ~~decreases~~an increase in net income and changes in working capital.

Capital expenditures for the nine months ended September 30, ~~2022~~2023 were approximately ~~$108.5~~$121.4 million, compared with approximately ~~$44.4~~$108.5 million for the same ~~nine month~~ period last year. The increase was primarily due to an increase in expenditures related to building and facility construction projects previously disclosed.

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 the first quarter of 2022, the Company began construction on a 350,000 square-foot manufacturing facility located at a 140 acre site in Zeeland, Michigan, where the Company previously performed master planning and completed land infrastructure improvements. The total cost of the building project is still expected to be approximately $80 - $90 million, which will be funded with cash and cash equivalents on hand. The facility is expected to be operational in the fourth quarter of 2023. The Company has also begun construction on two building expansions during the second quarter of 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.

The Company estimates that it currently has building capacity to manufacture approximately 3442 - 3745 million interior mirror units annually and approximately 1517 - 1820 million exterior mirror units annually, based on current product mix. The Company also evaluates equipment capacity on an ongoing basis and adds equipment as needed.

Management considers the current working capital and long-term investments, in addition to internally generated cash flow, its Credit Agreement, and credit worthiness, to be sufficient to cover anticipated cash needs for the foreseeable future considering its contractual obligations and commitments.

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


		September 30, 2022		December 31, 2021			September 30, 2023		December 31, 2022
Working Capital	Working Capital	$	724,158,632	$	691,319,649	Working Capital	$	781,046,324	$	698,099,624
Long-Term Investments	Long-Term Investments	154,429,190		207,693,147		Long-Term Investments	272,615,535		202,331,983
Total	Total	$	878,587,822	$	899,012,796	Total	$	1,053,661,859	$	900,431,607

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, ~~the COVID-19 pandemic,~~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 and nine months ended September 30, ~~2022,~~2023, the Company repurchased ~~3,290,496 shares.~~776,488 and 2,743,788 shares, respectively. The Company has ~~21,533,572~~18,039,377 shares remaining under the plan as of September 30, ~~2022,~~2023, as is further detailed in Part II, Item 2 of this Form 10-Q.

BUSINESS UPDATE

For the third quarter of ~~2022,~~2023, the Company reported net sales of ~~$493.6~~$575.8 million, compared to net sales of ~~$399.6~~$493.6 million in the third quarter of ~~2021,~~2022, a ~~24%~~17% increase quarter over quarter. For the third quarter of ~~2022,~~2023, global light vehicle production in North America, Europe, Japan/Korea, and China increased approximately ~~26%~~5%, when compared to the third quarter of 2021. Light vehicle production in the Company's primary markets of North America, Europe, and Japan/Korea was up 22% on a quarter over quarter basis. These increases were primarily a result of some improvements in the ongoing global supply chain constraints, as well as overall light vehicle production growth. Nevertheless, product mix and overall sales were impacted in the third quarter by customer order adjustments, supply chain related issues, and labor availability issues, causing unit shipments to be approximately 750,000 units lower than forecasted at the beginning of the quarter, resulting in a significant revenue shortfall versus beginning of quarter forecast. While there appears to be some improved stability in the light vehicle production environment as compared to a year ago, the Company is still experiencing significant customer order fluctuations on a week-to-week basis and difficulty in sourcing advanced electronics components..2022.

In the third quarter of ~~2022,~~2023, the Company had ~~50 total~~28 net new launches of interior and exterior auto-dimming mirrors and electronic features. Over ~~50%~~70% of the launches in the third quarter of ~~2022~~2023 were advanced feature launches, with HomeLink®,and Full Display Mirror®~~, and the Digital Video Recorder~~ being the bulk of such launches.

The Company is engaged in ongoing conversations with certain customers regarding the inflationary aspects of the business and how to address the higher cost structure that has come as a result of electronics and supply chain issues and labor shortages during the last 18 months. The Company is working in a collaborative manner with its customers with the goal of growing the business and maintaining good business relationships, while at the same time meaningfully addressing the impact of existing inflationary pressures. These conversations and negotiations are expected to last throughout 2022 and likely into calendar 2023 for some customers, as the Company works to offset cost increases with updated pricing.PRODUCT UPDATE

Mirror Systems

~~PRODUCT UPDATE~~In the second quarter of 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

~~The~~ Full Display Mirror® began production in the fourth quarter of 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 third quarter of ~~2022,~~2023, the Company is shipping production Full Display Mirrors® to ~~fourteen~~fifteen different automaker customers, which are General Motors, Subaru, Toyota, Nissan, Jaguar Land Rover, Mitsubishi, Aston Martin, Stellantis, ~~along with~~ Maserati, ~~and~~ Fiat, Mercedes, Ferrari, Ford, Hyundai, and ~~Hyundai. As of the end of the third quarter of 2022, the Company is shipping Full Display Mirror~~® ~~on 79 nameplates.~~Mazda. The Company remains confident that ongoing discussions with certain other customers may in the future cause such customers to consider adding the Full Display Mirror® into their product road-map for future vehicles. ~~As of the end of the third quarter of 2022, the Company has been awarded Full Display Mirror~~

®
~~programs with 14 OEMs.~~

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 ~~cameras~~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.

~~On October 18, 2019,~~ In November 2022, NHTSA conducted a ~~petition for temporary exemption from FMVSS 111 submitted by Audi~~public meeting and discussed the on-going research of America was published requesting NHTSA to grant a two-year exemption to sell up to 2,500 vehicles for each twelve month period (up to 5,000 vehicles) that are equipped with camera monitoring systems and do not include FMVSS 111 compliant outside mirrors.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 ~~CMS~~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 ~~Korean~~Korea market. As noted, China has now released an updated version of its GB15084, which will be effective later in 2023, and 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 ~~the~~a primary safety function for rear vision today. Cameras when used as the primary rear vision delivery mechanism have some inherent limitations, such as: electrical failure; cameras being blocked or obstructed; depth perception challenges; and viewing angles of the camera. Nonetheless, the Company continues designing and manufacturing not only rearview mirrors, but CMOS imagers and video displays as well. The Company believes that combining video displays with mirrors may well provide a more robust product by addressing all driving conditions in a single solution that can be controlled by the driver. As noted, the Company has been in production with the Company's Full Display Mirror® since 2015 and has, in the ordinary course of business, been awarded programs with ~~fourteen~~fifteen OEM customers. The Company is currently shipping production Full Display Mirrors® to ~~fourteen~~all fifteen 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 will be increased competition.

The Company began shipping Full Display Mirror® with Digital Video Recording ("DVR" capability) for the Toyota Harrier in the second quarter of 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. InDuring the third quarter of ~~2022,~~2023, the Company ~~began~~also continued shipping auto-dimming mirrors containing DVR for both the Toyota Yaris and the Yaris Cross for the Japan market. ~~These are the Company's first launches of a base auto-dimming mirror with this DVR capability.~~ This product is ~~also~~ 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.

SmartBeam® is the Company's proprietary high beam control system integrated into its auto-dimming mirror. SmartBeam® Generation 4, which was developed using the fourth generation of the Company's custom designed CMOS imager, has an advanced feature set made possible by the high dynamic range of the imager including: high beam assist; dynamic forward lighting with high beams constantly on; LED matrix beam; and a variety of specific detection applications including tunnel, fog, and road type as well as certain lane tracking features to assist with lighting control. The Company has the ability to package the control electronics inside of its interior rearview mirrors with a self-calibrating camera attached to the mirror mount with optimal mechanical packaging which also provides for ease of service. In addition, the Company has long been integrating its camera products to optimize performance by combining with other systems on the vehicle, including radar, navigation, steering, and related modules provided by other suppliers. This enables the Company to provide its customers with highly customizable solutions that meets their unique needs and specifications.

The European New Car Assessment Program ("Euro NCAP") provides an incentive for automobiles sold in Europe to apply safety technologies that include driver assist features such as lane detection, vehicle detection, and pedestrian detection as standard equipment. Euro NCAP compliant driver assist systems are also capable of including high beam assist as a function. The increased application of Euro NCAP on European vehicles has had the effect of replacing, and could potentially continue replacing, the Company's SmartBeam® ~~application on these vehicles.~~

On December 8, 2015, NHTSA proposed changes to the NHTSA's 5-Star Safety Ratings for new vehicles (also known as the New Car Assessment Program or NCAP) and initiated a comment period. The proposed changes will, for the first time, encompass assessment of crash-avoidance technologies, which includes lower beam headlamp performance, semi-automatic headlamp switching, and blind spot detection. NHTSA initially intended to implement the enhancements in NCAP in 2018, beginning with model year 2019 vehicles. The NCAP implementation has been delayed. Under these proposed changes, the Company believes that its SmartBeam® technology will qualify with the semi-automatic headlamp NCAP rating system, and that its SmartBeam® technology and exterior mirrors with blind spot alert lighting can be included in a system that qualifies with the lower beam headlamp performance and blind spot detection NCAP rating system, respectively. On October 16, 2019, NHTSA issued a press release comparing NCAP to other regions’ version of NCAP, identified new technologies that are not currently included in NCAP, and suggested Congress legislatively direct actions to improve NCAP. ~~In March 2020, HR 6256 was introduced, which would require~~On January 14, 2021, NHTSA ~~to update NCAP. There are multiple bills being discussed in both the U.S. House of Representatives~~issued a request for comment regarding NCAP with advanced driver assist features, including forward collision, lane keeping, blind spot detection, and ~~the U.S. Senate that relate to NCAP.~~forward pedestrian impact avoidance technologies.

On October 12, 2018, NHTSA published a Notice of Proposed Rulemaking ("NPRM") for amendments to Federal Motor Vehicle Safety Standard ("FMVSS") No. 108: Lamps, reflective devices, and associated equipment, and initiated a comment period. The NPRM proposes amendments that would permit the certification of adaptive driving beam headlighting systems, if the manufacturer chooses to equip vehicles with these systems. NHTSA proposes to establish appropriate performance requirements to ensure the safe introduction of adaptive driving beam headlighting systems if equipped on newly manufactured vehicles. The Company believes that its dynamic SmartBeam® lighting control system (dynamic forward lighting or DFL), which has been sold in markets outside of North America for several years, will meet the requirements of the new FMVSS 108 standards, if amended. The Company's SmartBeam® application has and will continue to be affected by increased competition by suppliers of multi-function driver assist camera products, which are able to achieve some of the same functionality as SmartBeam® but at a lower cost, due to other suppliers leveraging similar hardware costs, but offering products with multiple software features.

As noted, 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 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 ongoing research of this technology.

The final rule issued by NHTSA for adaptive driving ~~beans~~beams (AEB) was made effective February 22, 2022. The Company believes its adaptive SmartBeam® (dynamic lighting system), which has been manufactured and sold for many years in jurisdictions outside the United States, will be permitted under the NHTSA Final Rule.

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

The Company ~~has~~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 ~~2022~~2023 and ~~2023. During the third quarter of 2021, the~~2024. The Company ~~began~~is also shipping ITM® to a second OEM customer, Mercedes, on the EQS model. In April 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 January 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 November 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 January 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®~~HomeLink®, which, again, is the automotive industry’s leading car-to-home automation system. ~~HomeLink®~~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®~~Connect® app is underway and will allow users to program their ~~HomeLink®~~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 January 2019, the Company announced that its latest generation of dimmable aircraft windows will be offered as optional content on the new Boeing 777X. During the third quarter of 2019, the first production shipments of variably dimmable windows were made to Boeing for the 777X program. ~~In January 2020, the Company~~As also previously announced, ~~that~~ Airbus ~~will also be~~is now offering, as optional content, the Company's dimmable aircraft windows on anits aircraft, with production having ~~began~~begun in ~~the fourth quarter of~~ 2021.

Medical

In January 2020 the Company unveiled an innovative lighting technology for medical applications that was co-developed with Mayo Clinic. This new lighting concept represents the collaboration of a global, high-technology electronics company with a world leader in health care. The Company's new intelligent lighting system combines ambient room lighting with camera-controlled, adaptive task lighting to optimize

illumination for surgical and patient-care environments. The system was developed over an 18 month period of collaboration between Company engineers and Mayo Clinic surgeons, scientists, and operating room staff. The teams researched, designed, and rapidly iterated multiple prototypes in order to develop unique features intended to address major gaps in current surgical lighting solutions. In ~~2022,~~2023, 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, the Company acquired certain technology assets from eSight Corporation for approximately $18.9 million in cash, in addition to the 20% equity the Company previously held in the assets, as well as an earn out provision. 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 ~~the COVID-19 pandemic and~~ industry-wide parts shortages and global supply constraints and labor ~~shortages.~~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 ~~most recent~~current forecasts for light vehicle production for the fourth quarter of ~~2022,~~2023, and full years ~~2022~~2023 and ~~2023~~2024 are based on the mid-October ~~2022~~2023 S&P Global Mobility ~~light vehicle production~~ forecast for light vehicle production in North America, Europe, Japan/Korea, and China. Fourthquarter of ~~2022~~2023, and calendar years ~~2022~~2023 and ~~2023~~2024, forecasted light vehicle production volumes are shown below:


Light Vehicle Production (per S&P Global Mobility mid-October light vehicle production forecast)	Light Vehicle Production (per S&P Global Mobility mid-October light vehicle production forecast)												Light Vehicle Production (per S&P Global Mobility mid-October light vehicle production forecast)
(in Millions)	(in Millions)												(in Millions)
Region	Region	Q4 2022	Q4 2021	% Change		Calendar Year 2023	Calendar Year 2022	Calendar Year 2021	2023 vs 2022 % Change		2022 vs 2021 % Change		Region	Q4 2023	Q4 2022	% Change		Calendar Year 2024	Calendar Year 2023	Calendar Year 2022	2024 vs 2023 % Change		2023 vs 2022 % Change
North America	North America	3.68	3.29	12	%	15.39	14.47	13.05	6	%	11	%	North America	3.24	3.55	(9)	%	16.29	15.20	14.30	7	%	6	%
Europe	Europe	4.16	4.02	3	%	16.65	15.63	15.89	7	%	(2)	%	Europe	4.58	4.32	6	%	17.44	17.71	15.83	(2)	%	12	%
Japan and Korea	Japan and Korea	3.03	2.77	9	%	11.88	11.06	10.87	7	%	2	%	Japan and Korea	3.32	3.12	6	%	12.14	12.69	11.14	(4)	%	14	%
China	China	7.39	7.69	(4)	%	26.65	26.41	24.84	1	%	6	%	China	7.85	7.27	8	%	28.05	27.89	26.40	1	%	6	%
Total Light Vehicle Production	Total Light Vehicle Production	18.26	17.77	3	%	70.57	67.57	64.65	4	%	5	%	Total Light Vehicle Production	18.99	18.26	4	%	73.92	73.49	67.67	1	%	9	%

Based on the aforementioned light vehicle production forecast and the results for the first nine months of ~~2022,~~2023, the Company ~~is updating~~has updated certain guidance for calendar year ~~2022 as~~2023, included in what is shown below.

•Revenue is expected to be between ~~$1.90~~$2.2 and ~~$1.95~~$2.3 billion

•Gross Margin is expected to be between ~~32%~~32.5% and 33%

•Operating Expenses are expected to be approximately ~~$235~~$260 to ~~$240~~$270 million

•Estimated Annual Tax Rate, which assumes no changes to the statutory rate, is expected to be between ~~14%~~15% and ~~15%~~15.5%

•Capital Expenditures are expected to be between ~~$140~~$200 and ~~$150~~$215 million

•Depreciation and Amortization is expected to be between ~~$100~~$95 and ~~$105~~$100 million

Due to ~~high levels of~~ongoing volatility in customer orders and vehicle production volumes, ~~electronics supply chain constraints,~~work stoppages stemming from labor union strikes, the Ukraine-Russia ~~conflict,~~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.~~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; the UAW strikes; customer inventory management and the impact of potential automotive customer (including their Tier 1 suppliers) and supplier bankruptcies; ~~work stoppages;~~ 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 ~~may~~will vary from time to time and will take into account macroeconomic events, ~~(including the COVID-19 pandemic and issues related to the microchip shortage as well as other supply chain and labor constraints),~~ 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 September 30, ~~2022,~~2023, the Company has~~21.5~~ 18.0 millionshares remaining available for repurchase under the previously announced share repurchase plan.

Additionally, based on the ~~mid-October 2022~~Company’s current forecasts for light vehicle production estimates for 2023, the Company is providing revenue guidance for 2023, despite the fact that there continues to be uncertainty regarding: macroeconomic conditions (including inflation); underlying overall consumer demand for light vehicles worldwide; supply chain and labor constraints; and the lingering impact from the COVID-19 pandemic. The Company still estimates that revenue for calendar year ~~2023 will be~~2024, the Company still expects calendar year 2024 revenue of approximately ~~15% - 20% higher than the updated 2022 estimated revenue estimates of $1.90 - $1.95~~$2.45 to $2.55 billion. As noted above, continuing uncertainties make forecasting difficult.

3433

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, ~~2021.~~2022.

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 ~~of available for sale~~adjustment on investment securities, ~~(mark-to-market adjustments),~~ as well as the impact on demand for light vehicles. For the quarter ended September 30, ~~2022,~~2023, any material changes in risk factors that were disclosed in the Company's report on Form 10-K for the year ended December 31, ~~2021~~2022 are set forth ~~herein.~~herein, including potential work stoppages stemming from automaker or union labor strikes.

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 September 30, ~~2022,~~2023, 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 September 30, ~~2022~~2023 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~~ 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

market conditions, including the impact of inflation; potential work stoppages stemming from automaker or union labor strikes; 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 the ~~length and severity~~remaining impact of the COVID-19 (coronavirus) pandemic ~~including its impact~~ across our business on demand, operations, and the global supply chain. 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 ~~now~~ include the impacts of ~~an inflationary environment,~~the UAW strikes and COVID-19 (coronavirus) pandemic and supply chain ~~and labor~~ 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.~~operates.. Includes content supplied by S&P Global Mobility Light Vehicle Production Forecast of October ~~18, 2022~~16, 2023 (http://www.gentex.com/forecast-disclaimer).

~~Other Information~~

On November 1, 2022, Steve Downing, President and Chief Executive Officer of the Company, entered into a stock trading plan in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, providing for a third-party broker to sell shares of common stock of the Company that Mr. Downing may acquire upon the vesting of: 37,000 restricted shares awarded in 2018; 17,792 restricted shares awarded in 2020; and 41,516 performance shares (payable in common stock) awarded in 2020, subject to certain performance conditions. This plan also provides for a third-party broker to sell 17,730 shares of common stock issuable upon exercise of stock options awarded to Mr. Downing in 2016. Options will be exercised and/or shares will be sold under the stock trading plan on the open market over the period of time and in accordance with other parameters set forth in the stock trading plan. The stock trading plan terminates upon the earlier of all the transactions set forth in the plan being executed or March 1, 2023.

On November 1, 2022, Kevin Nash, Vice President of Finance, Chief Financial Officer, and Treasurer of the Company, entered into a stock trading plan in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, providing for a third-party broker to sell shares of common stock of the Company that Mr. Nash may acquire upon the vesting of: 5,535 restricted shares awarded in 2020; and 12,916 performance shares (payable in common stock) awarded in 2020, subject to certain performance conditions. This plan also provides for a third-party broker to sell 6,776 shares of common stock issuable upon exercise of stock options awarded to Mr. Nash in 2016. Options will be exercised and/or shares will be sold under the stock trading plan on the open market over the period of time and in accordance with other parameters set forth in the stock trading plan. The stock trading plan terminates upon the earlier of all the transactions set forth in the plan being executed or March 1, 2023.

On November 1, 2022, Matt Chiodo, Chief Sales Officer and Senior Vice President of Sales of the Company, entered into a stock trading plan in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, providing for a third-party broker to sell shares of common stock of the Company that Mr. Chiodo may acquire upon the vesting of: 5,000 restricted shares awarded in 2020; and11,394 performance shares (payable in common stock) awarded in 2020, subject to certain performance conditions. The shares will be sold under the stock trading plan on the open market over the period of time and in accordance with other

~~parameters set forth in the stock trading plan. The stock trading plan terminates upon the earlier of all the transactions set forth in the plan being executed or March 1, 2023.~~

On November 1, 2022, Neil Boehm, Chief Technology Officer and Vice President of Engineering, entered into a stock trading plan in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, providing for a third-party broker to sell shares of common stock of the Company that Mr. Boehm may acquire upon the vesting of: 6,035 restricted shares awarded in 2020; and 14,081 performance shares (payable in common stock) awarded in 2020, subject to certain performance conditions. This plan also provides for a third-party broker to sell 1,242 shares of common stock issuable upon exercise of stock options awarded to Mr. Boehm in 2016. Options will be exercised and/or shares will be sold under the stock trading plan on the open market over the period of time and in accordance with other parameters set forth in the stock trading plan. The stock trading plan terminates upon the earlier of all the transactions set forth in the plan being executed or April 15, 2023.

On November 1, 2022, Scott Ryan, Vice President, General Counsel, and Corporate Secretary, entered into a stock trading plan in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, providing for a third-party broker to sell shares of common stock of the Company that Mr. Ryan may acquire upon the vesting of: 4,325 restricted shares awarded in 2020; 10,091 performance shares (payable in common stock) awarded in 2020, subject to certain performance conditions. This plan also provides for a third-party broker to sell 4,580 shares of common stock issuable upon exercise of stock options awarded to Mr. Ryan in 2016. Options will be exercised and/or shares will be sold under the stock trading plan on the open market over the period of time and in accordance with to the other parameters set forth in the stock trading plan. The stock trading plan terminates upon the earlier of all the transactions set forth in the plan being executed or March 1, 2023.

Rule 10b5-1 trading plans are permitted under the Company’s insider trading policy and other policies, and, to the extent required, transactions under such trading plans will be disclosed publicly through Form 144 and/or Form 4 filings with the Securities and Exchange Commission. Except as may be required by law, the Company does not undertake any obligation to report Rule 10b5-1 plans by officers or directors of the Company in the future, or to report modifications or terminations of any such plans, whether or not any such plans were publicly announced.

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PART II—OTHER INFORMATION

Item 1A. Risk Factors.

Information regarding risk factors appears in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part I – Item 2 of this Form 10-Q and in Part I – Item 1A – Risk Factors of the Company’s report on Form 10-K for the fiscal year ended December 31, ~~2021.~~2022. 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, ~~2021,~~2022, 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.~~

~~(a) Unregistered Sales~~Proceeds, and Issuer Purchases of Equity ~~Securities; Green Marbles~~

On June 3, 2022, the Company issued 162,433 shares of its common stock to GreenMarbles, at a value of $5 million, as partial consideration for an investment in GreenMarbles. The shares were issued under Section 4(a)(2) of the Securities Act of 1933, as amended. The Company believes the issuance of the foregoing restricted shares was exempt from registration as a privately negotiated, isolated, non-recurring transaction not involving a public solicitation. An appropriate legend is affixed to the stock certificates issued in such transaction.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 nine months of ~~2022,~~2023, the Company repurchased ~~3.3~~2.7 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 ~~may~~will vary from time to time and will take into account macroeconomic events (including ~~the COVID-19 pandemic and~~ shutdowns related to the microchip shortage as well as other supply chain and labor constraints), 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 ~~3,290,496~~2,743,788 shares during the first nine months of ~~2022,~~2023, the Company has ~~21.5~~18.0 million shares remaining under the plan as of September 30, ~~2022.~~2023.

The following is a summary of share repurchase activity during each month of the ~~quarter~~nine month period ended September 30, ~~2022:~~
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 2022 — — — 24,824,068
February 2022 490,021 30.63 490,021 24,334,047
March 2022 1,950,169 28.84 1,950,169 22,383,878
1st Quarter 2022 Total 2,440,190 29.20 2,440,190
2nd Quarter 2022 Total — — — 22,383,878
July 2022 150,110 27.80 150,110 22,233,768
August 2022 300,135 28.04 300,135 21,933,633
September 2022 400,061 24.17 400,061 21,533,572
3rd Quarter 2022 Total 850,306 26.18 850,306
2022 Total 3,290,496 28.42 3,290,496 21,533,572
2023:


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 2023	—	—	—	20,783,165
February 2023	46,835	28.58	46,835	20,736,330
March 2023	1,000,091	27.12	1,000,091	19,736,239
1st Quarter 2023 Total	1,046,926	27.19	1,046,926

April 2023	—	—	—	19,736,239
May 2023	400,062	26.78	400,062	19,336,177
June 2023	520,312	27.64	520,312	18,815,865
2nd Quarter 2023 Total	920,374	27.28	920,374

July 2023	—	—	—	18,815,865
August 2023	210,525	32.51	210,525	18,605,340
September 2023	565,963	32.38	565,963	18,039,377
3rd Quarter 2023 Total	776,488	32.41	776,488

2023 Total	2,743,788	28.70	2,743,788	18,039,377

As of September 30, ~~2022,~~2023, the Company has repurchased ~~150,466,156~~153,960,351 shares at a total cost of ~~$2,580,262,909~~$2,679,383,973 under its share repurchase plan or as otherwise previously disclosed.

Item 6. Exhibits.


See Exhibit Index on Page 4038

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.


		GENTEX CORPORATION


Date:	November ~~4, 2022~~3, 2023	/s/ Steven R. Downing
		Steven R. Downing
		President and Chief Executive Officer
		(Principal Executive Officer) on behalf of Gentex Corporation

Date:	November ~~4, 2022~~3, 2023	/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

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EXHIBIT INDEX


Exhibit No.						Description


























































10						S peciman Form of Gentex Corporation Restricted S tock Unit Award Agreement
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

4038