What changed in this filing

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Item 1. Business

2021-02-22 compared with 2020-02-26 · 114 added, 56 removed, 106 unchanged (62% of the section changed)

General Development of Business

(a) General Development of Business

Gentex Corporation (the "Company") was incorporated as a Michigan corporation in 1974.

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The Company ships its products to all of the major automotive producing regions worldwide, which it supports with numerous sales, engineering and distribution locations worldwide.

At its inception, the Company manufactured smoke detectors, a product line that has since evolved to include a variety of fire protection products.

In the early 1980's, the Company introduced an interior electromechanical automatic-dimming rearview mirror as an alternative to the manual day/night rearview mirrors for automotive applications.

In the late 1980's, the Company introduced an interior electrochromic automatic-dimming rearview mirror for automotive applications.

In the early 1990's, the Company introduced an exterior electrochromic automatic-dimming rearview mirror for automotive applications.

In the late 1990's, the Company began making volume shipments of three new exterior mirror sub-assembly products:

thin glass flat;

and aspheric.

In 2005, the Company began making volume shipments of its bezel-free exterior automatic dimming mirror.

In 2010 the Company began delivering, electrochromic dimmable aircraft windows for the aviation industry.

In 2013, the Company acquired HomeLink®, a wireless vehicle/home communications product that enables drivers to remotely activate garage door openers, entry door locks, home lighting, security systems, entry gates and other radio frequency convenience products for automotive applications, wherein the Company had previously been a licensee of HomeLink ® and had been, since 2003, integrating HomeLink® into its interior automatic-dimming rearview mirrors.

In 2015, the Company began making shipments of the Full Display Mirror ® ("FDM" ® ), which is an on-demand, mirror-borne LCD display that streams live, panoramic video of the vehicle's rearward view in order to improve driver rear vision.

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The Company announced in January 2018 that it entered into 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 January 2018, the Company announced that an agreement had been signed, in the ordinary course of business, to participate in a round of financing with Yonomi, Inc., the Company's partner in home automation technology.

The Company continues to work with Yonomi as a home automation aggregation partner and the Company has developed an app and cloud infrastructure called HomeLink Connect ® .

HomeLink Connect ® is a home automation app that pairs with the vehicle and allows drivers to operate home automation devices from the vehicle's center console display.

Drivers of HomeLink Connect ® compatible vehicles will be able to download and configure the app to control many available home automation devices and create entire home automation settings.

In addition to the foregoing, the Company has addressed improvements to the HomeLink ® training process by adding functionality within the HomeLink Connect ® app to allow consumers to pair their garage door openers with their HomeLink ® buttons.

In January 2019, the Company announced that it would be offering, as optional content, its latest generation of variable dimmable windows on the Boeing 777X aircraft.

During the third quarter of 2019, the first production shipments of variably dimmable windows were made to Boeing for the 777X program.

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 announced that Airbus will also be offering the Company's dimmable aircraft windows on its aircraft with production starting in late 2020.

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The teams researched, designed, and rapidly iterated multiple prototypes in order to develop unique features that address major gaps in current surgical lighting solutions.

In 2020, the Company will be continuing to work on the intelligent medical lighting system in preparation for clinical trials in order to assess system performance and work toward obtaining any necessary approvals.

The Company estimates that it could take 18 to 24 months to complete these trials, before a system could be available for commercial applications.

In 2021, the Company will be continuing to work on the intelligent medical lighting system in order to assess system performance and work toward obtaining any necessary approvals.

In April 2020, the Company, in the ordinary course of business, acquired Vaporsens, Inc.

("Vaporsens"), which specializes in nanofiber chemical sensing research and development.

This new nanofiber technology can detect a wide variety of chemicals, including explosives, drugs, volatile organic compounds ("VOCs"), toxic industrial chemicals, amines, and more.

The core of Vaporsens’ chemical sensor technology is a net of nanofibers approximately one thousand times smaller in size than human hair.

Their porous structure allows them to absorb targeted molecules from sampled gas and identify them via changes in their electrical resistance.

The technology allows for the rapid detection of target chemicals with high sensitivity in the parts per billion and parts per trillion ranges.

The Vaporsens technology has a wide variety of use cases in various markets and industries, with potential applications for automotive, aerospace, agriculture, chemical manufacturing, military and first responders, worker safety, food and beverage processing, and medical.

Automotive revenues represent approximately 98% of the Company's total revenue in 2020, mostly consisting of interior and exterior electrochromic automatic-dimming rearview mirrors and automotive electronics.

Narrative Description of Business

(b) [Reserved]

The Company designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products, including:

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The Company manufactures interior electrochromic automatic-dimming rearview mirrors that darken to reduce glare and improve visibility for the driver.

These electronic interior mirrors can also include additional electronic features such as compass, microphones, HomeLink ® , lighting assist and driver assist forward safety camera systems, various lighting systems, various telematics systems, ITM ® systems, and a wide variety of displays.

The Company also ships interior non-automatic-dimming rearview mirrors with and without features.

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Certain of the Company's newer features can be located either in the rearview mirror or other locations in the vehicle.

Additionally, as the Company expands its Full Display Mirror ® product and the Integrated Toll Module ® system, rearward facing video cameras and integrated toll transponders are being produced and sold.

Additionally, as the Company

expands its Full Display Mirror ® product and the Integrated Toll Module ® system, rearward facing video cameras and integrated toll transponders are being produced and sold.

The Company produces rearview mirrors and electronics globally for automotive passenger cars, light trucks, pickup trucks, sport utility vehicles, and vans for OEMs, automotive suppliers, and various aftermarket and accessory customers.

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The Company is the leading manufacturer of electrochromic automatic-dimming rearview mirrors in the world, and is the dominant supplier to the automotive industry.

Competitors for automotive rearview mirrors include Magna International, Panasonic, YH America, Inc., BYD Auto Company, Murakami Kaimeido Company, Tokai Rika Company, Peak Power Automotive, SMR Automotive, ADAYO, Alpine Electronics, Inc., MEKRA Group, Ningbo Feng Mei, Chogqing Yimei, Guangdong, Yuanfeng, Xiamen Intretech, TT Electronics, and the China automotive aftermarket.

The Company also supplies electrochromic automatic-dimming rearview

mirrors to certain of these rearview mirror competitors.

Competitors for automotive rearview mirrors include Magna International, Panasonic, YH America, Inc., BYD Auto Company, Murakami Kaimeido Company, Tokai Rika Company, Peak Power Automotive, SMR Automotive, ADAYO, Alpine Electronics, Inc., MEKRA Group, Ningbo Feng Mei, Chogqing Yimei, Guangdong, Xiamen Intretech, Licon, YanFeng, MirrorTech and the China automotive aftermarket.

The Company also supplies electrochromic automatic-dimming rearview mirrors to certain of these rearview mirror competitors.

Automotive Rearview Mirrors and Electronics Product Development.

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Advanced-feature automatic-dimming mirrors currently being offered by the Company include one or more of the following features:

SmartBeam ® , HomeLink ® , HomeLink Connect ® , frameless mirror designs, LED map lamps, compass and temperature displays, telematics, ITM ® systems, hands free communication, Rear Camera Display ("RCD") interior mirrors, FDM ® interior mirrors, exterior turn signals, side blind zone indicators and various other exterior mirror features that improve safety and field of view.

SmartBeam ® , HomeLink ® , HomeLink Connect ® , frameless mirror designs, LED map lamps, compass and temperature displays, telematics, ITM ® systems, hands free communication, Rear Camera Display ("RCD") interior mirrors, FDM ® interior mirrors, digital video recording solutions, exterior turn signals, side blind zone indicators and various other exterior mirror features that improve safety and field of view.

Advanced features currently in development include:

biometric authentication systems, hybrid and fully digital camera monitoring systems ("CMS"), digital video recording solutions, driver and cabin monitoring systems, cabin sensing systems, touch screen displays for mirrors, and digital enhancements to displays to improve driver safety, among other things.

Other automotive products currently in development include large area dimmable devices which include, such as sunroof and moonroof applications, driver and passenger windows and other window surfaces in vehicles, among others.

biometric authentication systems, hybrid and fully digital camera monitoring systems ("CMS"), driver and cabin monitoring systems, cabin sensing systems, touch screen displays for mirrors, and digital enhancements to displays to improve driver safety, among other things.

Other automotive products currently in development include large area dimmable devices, which include sunroof and moonroof applications, driver and passenger windows and other window surfaces in vehicles, among others.

Automotive Rearview Mirrors and Electronics Markets and Marketing.

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The Company generally supplies automatic-dimming mirrors and mirrors with advanced electronic features to its customers worldwide under annual blanket purchase orders with customers, as well as under long-term agreements with certain customers, entered into in the ordinary course of the Company's business.

The Company is currently supplying mirrors and electronic modules for Aston Martin, BMW Group, Daimler Group, FCA Group, Ford Motor Co., Geely/Volvo, General Motors, Honda Motor Co., Hyundai/Kia, Jaguar/Land Rover, Karma Automotive, Mazda, Mahindra & Mahindra, McLaren, PSA/Opel Group, Renault/Nissan/Mitsubishi Group, Subaru, Suzuki, Tesla, Toyota Motor Company, Volkswagen Group, as well as, shipments to domestic China manufacturers (Borgward, BYD, Chery, Dongfeng, Great Wall, Jianghuai, NextEV, and SAIC).

The Company is currently supplying mirrors and electronic modules for Aston Martin, BMW Group, Daimler Group, FCA Group, Ford Motor Co., Geely/Volvo, General Motors, Honda Motor Co., Hyundai/Kia, Jaguar/Land Rover, Mazda, Mahindra & Mahindra, McLaren, Polaris, PSA/Opel Group, Renault/Nissan/Mitsubishi Group, Rivian Automotive, Subaru, Suzuki, Tesla, Toyota Motor Company, Volkswagen Group, as well as, shipments to domestic China manufacturers (Borgward, BYD, Chehejia, Chery, Great Wall Motors, Hongqi, NextEV, SAIC, and Skywell).

Revenues by major geographic area are disclosed in Note 7 to the Consolidated Financial Statements.

Historically, new safety and comfort and convenience options have entered the original equipment automotive market on “top of the line” or luxury model automobiles.

As the selection rates for the options on the luxury models increase, they generally become available on more models throughout the product line.

The ongoing trend of domestic and foreign automakers is to offer several options as a package.

The Company believes that its automatic-dimming mirrors with and without advanced features will continue to be offered in more option packages, and continue to be available on more small and mid-size vehicle models as consumer awareness of these safety and comfort and convenience features continue to grow, and as the Company continues its efforts to make automakers aware of the Company's technology available on competitive vehicle platforms.

With design trends currently reducing visibility in today's passenger vehicles, the Company's Full Display Mirror ® has gained popularity for its ability to leverage a custom camera and mirror-integrated video display to optimize a vehicle’s rearward view.

The ability to optimize rearward visibility increases the use case of FDM ® for many different vehicles, from volume based nameplates to luxury models.

Increasing demand for the FDM ® system appears to be based on the ability to capture video from a rearward-facing camera and streams it to a unique mirror-integrated LCD, which provides the driver with an unobstructed, panoramic view behind the vehicle, while at the same time offering the functionality of a standard rearview mirror with the flip of a switch.

Traditionally, new products and technologies have been restricted to high-end vehicles and premium trim/option packages.

As consumer demand has continued to pursue the adoption of advanced technology, more OEMs have shifted to offer a variety of trim packages and option packages for each of their vehicles, creating a range of available pricing and technologies across their lineups.

In some instances, Company products such as the FDM ® appeal to consumers who are interested in new technology, while also resolving rearward vision limitations created by vehicle design changes that increase aerodynamics.

The Company has contributed to this differentiation strategy, allowing OEMs to maximize profitability and optionality by providing a suite of profitable, mirror-based and in-vehicle technologies that consumers demand.

As more consumers have become familiar with interior and exterior dimming mirrors, HomeLink ® , SmartBeam ® , FDM ® , and other Company technologies, consumers have continued to select these technologies in their subsequent vehicles, driving further market and nameplate penetration as OEMs launch new vehicles and expand into new markets.

Where OEMs had historically used Company technologies only to differentiate from one another, they have now begun to also use Company technologies to differentiate trim lines across their own nameplates.

In new markets, emerging OEMs have recognized the need to include Company products in their vehicles to compete with global OEMs and to maximize per-vehicle profitability.

Automotive Rearview Mirrors and Electronics Competition.

The Company continues to be the leading producer of automatic-dimming rearview mirrors in the world and currently is the dominant supplier to the automotive industry with an approximate 94% market share worldwide in 2019 and an approximate 92% market share in 2018.

While the Company believes it will retain a dominant position in automatic-dimming rearview mirrors for some time, another U.S.

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There are also a small number of Chinese domestic mirror suppliers that are marketing and selling automatic-dimming rearview mirrors, in low volume, within the domestic China automotive market.

Additionally, other companies have demonstrated products that are competitive to the Company's Full Display Mirror ® system, and the Company acknowledges that dimming device (e.g., electrochromic) technology is the subject of research and development effor

ts by numerous third parties.

Through the Company's HomeLink ® function, the Company is the leading supplier of integrated wireless in-vehicle communication devices to the automotive industry for communication with garages, gates, parking barriers, and certain home automation products.

HomeLink ® business continues to be awarded to the Company either through its automatic-dimming rearview mirrors, or through HomeLink ® electronic modules which are integrated into other areas of the automobile (i.e.

visors, overhead consoles, and center consoles).

In 2014, the Company announced HomeLink ® applications for alternative automobiles and vehicle types which include but are not limited to motorcycles, mopeds, snowmobiles, tractors, combines, lawn mowers, loaders, backhoes and golf carts.

These product developments will utilize the market leading HomeLink ® V system of communication to the home, door locks, garage doors, gates, lights, security systems, and an increasing array of home automation products.

The Company believes it is being awarded virtually all business in this area and that while the Company believes it continues to maintain a competitive advantage in this area, the increased focus on vehicle and home connectivity through other devices represents a competitive threat to this business.

The Company announced in January 2018 the launch of HomeLink Connect ® , an extension of the Company's HomeLink ® feature and an all-new home automation app that pairs with the vehicle and allows drivers to operate home automation devices from the vehicle’s center console display and/or rearview mirror controls.

Drivers of HomeLink Connect ® compatible vehicles will be able to download and configure the app to control a myriad of individual home automation devices, or create entire home automation settings.

In August 2019, the Company announced its shipping of the latest version of its HomeLink Connect ® car-to-home automation system to VOXX Electronics Corporation for sale in the automotive aftermarket.

The system consists of a Bluetooth-enabled automatic-dimming mirror with integrated buttons that can be programmed to operate a myriad of radio frequency and cloud-based home automation devices.

The Company believes its electrochromic automatic-dimming mirrors and mirrors with advanced electronic features offer significant performance advantages over competing products and the Company makes significant research and development investments to continue to increase and improve the performance advantages of its products.

Moreover, other companies have demonstrated products that are competitive to the Company's Full Display Mirror ® system, and a small number of Chinese domestic mirror suppliers have begun marketing and selling these products, in low volume, within the domestic China Market.

Further, a Japanese manufacturer (Murakami) has begun selling and marketing competitive Full Display Mirror ® products in Japan.

The Company acknowledges that dimming device (e.g., electrochromic) technology is the subject of research and development efforts by numerous third parties.

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.

The Company plans to integrate Simplenight into its current and future connected vehicle technologies, including HomeLink ® , the automotive industry’s leading car-to-home automation system.

HomeLink ® consists of vehicle-integrated buttons that can be programmed to operate a myriad of home automation devices.

The Company is currently integrating Simplenight into its HomeLink Connect ® app, which helps users program their HomeLink ® buttons and control cloud-based devices from their vehicles.

There are numerous other companies in the world conducting research on various technologies, including electrochromics, for controlling light transmission and reflection.

The Company currently believes that the electrochromic materials and manufacturing process it uses for automotive mirrors remains the most efficient and cost-effective way to produce such products.

The Company has also continued to invest in new technologies to improve the manufacturing processes.

In the fourth quarter of 2020, the Company, in the ordinary course of business, completed the acquisition of Argil, Inc., which specializes in electrochromic technology and research and development, which the Company anticipates using to complement and expand its product offerings and leverage for manufacturing efficiencies.

While automatic-dimming mirrors using other technologies may eliminate glare, the Company currently believes that each of these other technologies have inherent cost or performance limitations as compared to the Company's technologies.

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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 announced that Airbus will also be offering, as optional content, the Company's dimmable aircraft windows on its aircraft with production starting in late 2020.

In January 2020, the Company announced that Airbus will also be offering, as optional content, the Company's dimmable aircraft windows on its aircraft.

Markets and Marketing.

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The fire protection products industry is highly competitive in terms of both the smoke detectors and signaling appliance markets.

The Company estimates that it competes principally with eight manufacturers of smoke detection products for commercial use and approximately four manufacturers within the residential market, three of which produce photoelectric smoke detectors.

The Company estimates that it competes primarily with eight manufacturers of smoke detection products for commercial use and approximately four manufacturers within the residential market, three of which produce photoelectric smoke detectors.

In the signaling appliance markets, the Company estimates it competes with approximately seven manufacturers.

While the Company faces significant competition in the sale of smoke detectors and signaling appliances, it believes that the introduction of new products, improvements to its existing products, its diversified product line, and the availability of special features will permit the Company to maintain its competitive position.

Nanofiber Products and Development

As noted, the Company completed the acquisition of Vaporsens in 2020.

Again, Vaporsens specializes in nanofiber chemical sensing research and development.

Markets and Marketing.

While no current commercialized product yet exists, this technology has the potential ability to sense explosives, toxic industrial chemicals, chemical warfare agents, drugs, consumer goods, and VOCs.

This technology has a wide variety of use cases in various markets and industries, with potential applications for automotive, aerospace, agriculture, chemical manufacturing, military and first responders, worker safety, food and beverage processing, and medical applications.

Trademarks and Patents

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Registered Trademarks and 719 U.S.

Patents, of which 31 Registered Trademarks and 583 patents relate to electrochromic technology, automotive rearview mirrors, microphones, displays, cameras, sensor technology, and/or HomeLink ® products.

Patents, of which 30 Registered Trademarks and 647 patents relate to electrochromic technology, automotive rearview mirrors, microphones, displays, cameras, sensor technology, smart lighting technology, and/or HomeLink ® products.

These Patents expire at various times between 2021 and 2044.

The Company believes that these patents provide the Company a competitive advantage in its markets, although no single patent is necessarily required for the success of the Company's products.

The Company also owns 336 foreign Registered Trademarks and 877 foreign patents, of which 320 Registered Trademarks and 855 patents relate to electrochromic technology, automotive rearview mirrors, microphones, displays, cameras, sensor technology, and/or HomeLink ® products.

The Company also owns 347 foreign Registered Trademarks and 1020 foreign patents, of which 331 Registered

Trademarks and 972 patents relate to electrochromic technology, automotive rearview mirrors, microphones, displays, cameras, sensor technology, and/or HomeLink ® products.

These patents expire at various times between 2021 and 2044.

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In addition, the Company periodically obtains intellectual property rights, in the ordinary course of the Company's business, to strengthen its intellectual property portfolio and minimize potential risks of infringement.

Miscellaneous

The Company considers itself to be engaged in the design, development, manufacturing, marketing, and supply of digital vision, connected car, dimmable glass, and fire protection products, including:

automatic-dimming rearview mirrors, non-automatic-dimming rearview mirrors and electronics for the automotive industry;

variable dimmable windows for the aviation industry;

and commercial smoke alarms and signaling devices for the fire protection industry.

The Company has several important customers within the automotive industry, three of which each account for 10% or more of the Company's net sales in 2019 (including direct sales to OEM customers and sales through their Tier 1 suppliers):

Volkswagen Group, Toyota Motor Company, and General Motors.

The loss of any of these customers (or certain other significant customers) cou

ld have a material adverse effect on the Company's business, financial condition, and/or results of operations.

Human Capital Resources

As of February 1, 2021, the Company had 5,303 full-time employees.

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See "Executive Officers of the Registrant" in Part III, Item 10 .

Available Information

The Company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports, will be made available, free of charge, through the Investor Information section of the Company’s Internet website ( http://ir.gentex.com ) as soon as practicable after such materials are electronically filed with or furnished to the Securities and Exchange Commission ("SEC").

The SEC maintains an Internet website ( http://www.sec.gov ) that contains reports, proxy and information statements, and other information regarding issues that a company files electronically with the SEC.

The Company fosters a collaborative culture founded on devotion to quality and innovation.

An inclusive environment is nurtured so that team members can perform, support each other, and continue to grow and learn, including on-the-job training.

This culture is supported by a competitive compensation system that goes beyond base salary and includes for virtually all employees:

quarterly profit-sharing bonuses;

an extensive stock options program, an employee stock purchase plan;

401(k) plan (or other retirement plan for non-US employees) with Company matching;

and tuition reimbursement.

Equity compensation is also paid to a significant number of employees.

In keeping with the Company's core principle of ownership mentality, compensation is structured throughout the organization so that employees win when all of stakeholders win.

The Company also provides a healthy and safe climate-controlled work environment that includes an on-site wellness center and on-site health clinic at its headquarters.

Evidence of the Company's commitment to inclusion is its cultivation of a world-class diversity, equity & inclusion ("DE&I") ethos that allows team members to make a lasting impact in the communities in which the Company operates, all while attracting and retaining diverse talent that can help propel the business forward.

While the Company has an environment of equal employment opportunity related to recruitment, hiring, promotion, discipline, and other terms of employment, the commitment to have a skilled and diverse world class workforce goes beyond that.

The Company's DE&I initiatives are supported by the its Diversity Officer and DE&I Council, which helps implement specific diversity programs, supports internal training, and creates opportunities to spread awareness throughout the organization.

The Company's DE&I Council is led by Mr.

Joe Matthews, Diversity Officer and Vice President of Purchasing.

Matthews has been honored as a Salute to Diversity Winner by Corp!

As a part of DE&I initiatives, the Company maintains a growing list of business resource groups ("BRGs") comprised of individuals with similar interests or backgrounds that work internally to support one another, develop leadership skills, and enhance cultural awareness.

Among current BRGs are Women at Gentex and Veterans at Gentex.

DE&I efforts at the Company extend to the supply base as well, where Company been recognized for ongoing efforts to increase supplier relationships with minority- and women-owned enterprises.

In fact, the Company mentors certain such suppliers to help them develop the business systems and technologies necessary to support

future growth.

The Company is a member of the Michigan Minority Supplier Development Counsel and the Women's Business Enterprise Counsel – Great Lakes Region.

Hiring rates, voluntary and involuntary turnover rates, internal rates of hiring and promotion, and safety records are considered as measures of the Company's success in human capital management.

While hiring and diversity policies are in place as a means to remain on track in terms of appropriate human resources management, the DE&I efforts have furthered the process of creating a welcoming environment so the Company can hire and retain the best people.

The Company produces a sustainability report providing more information regarding diversity and corporate responsibility.

Forbes has named the Company as one of the "200 Best Small Companies" numerous times.

Forbes also recently acknowledged the Company as a "Best Employer for Diversity." In addition, the Company is the recipient of an EPIC Diversity Visionary Award presented by a local Chamber of Commerce.

Moreover, the Company's DE&I efforts related to actively developing and using minority, women, and veteran-owned suppliers have been acknowledged and recognized by multiple OEM customers.

In fact, Toyota Motor Engineering & Manufacturing North America, Inc.

has specifically recognized the Company's efforts over the last 10 years to increase supplier relationships with minority business enterprises.

A charitable program run by Company employees has been established as a means to give back to the community.

Employees are encouraged to organize on-site fundraisers and to spend time volunteering at worthy charitable organizations.

Support is also provided to a number of minority organizations in keeping with the Company's DE&I efforts and to continue to build an even more diverse and skilled workforce.

The Company's Board of Directors has regular touchpoints with management regarding:

employee engagement;

workforce planning (including capabilities and skills development);

understanding workforce demographics and DE&I strategies;

and corporate culture.

The Board and management know the right talent is required to implement the Company's strategies.

As such, the Board works with management appropriately regarding the approach to, and investment in, human capital that includes recruitment, talent development, retention, and diversity.

The Board has access to all levels of employees in the Company in its efforts to properly oversee human resources issues.

The Board of the Company now has two women directors and the Nominating and Corporate Governance Committee has taken concrete steps to improve Board diversity, including use of various resources and environments to identify qualified and diverse director candidates.

Such candidates are contacted and interviewed in order to continue to build an even more diverse, qualified, and capable Board.

The Board has also implemented a Complaint Submission and Handling Policy for concerns to be raised as needed.

(d) [Reserved]

(e) Available Information

The Company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports, will be made available, free of charge, through the Investor Information section of the Company’s website ( http://ir.gentex.com ) as soon as practicable after such materials are electronically filed with or furnished to the Securities and Exchange Commission ("SEC").

The SEC maintains a website ( http://www.sec.gov ) that contains reports, proxy and information statements, and other information regarding issues that a company files electronically with the SEC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business