What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2026-02-24 compared with 2025-02-25 · 865 added, 408 removed, 1085 unchanged (54% of the section changed)

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Also, projections of any evaluation of effectiveness to future periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

As permitted by SEC guidance for newly acquired businesses, the scope of management’s assessment of the Company’s internal controls over financial reporting as of December 31, 2025 has excluded the acquired

businesses of VOXX and BioConnect.

The Company completed the acquisitions of the stock of VOXX and of the assets and certain liabilities of BioConnect on April 1, 2025, and July 1, 2025, respectively, and the acquired businesses excluded represent $400.4 million of total assets and total net sales of $271.7 million included in the Consolidated Financial Statements as of and for the year ended December 31, 2025 ( see N ote 11 , Acquisitions ).

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2025, has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which is included in Part IV of this Form 10K.

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Any information concerning compliance with Section 16(a) of the Securities and Exchange Act of 1934 that may appear under the caption “Delinquent Section 16 Reports” in the definitive Proxy Statement is hereby incorporated herein by reference.

Information relating to the Company’s Audit Committee and concerning whether at least one member of the Audit Committee is an “audit committee financial expert” as that term is defined under Item 407(d)(5) of Regulation S-K appearing under the caption “Corporate Governance – Audit Committee” in the definitive Proxy

Statement is hereby incorporated herein by reference.

Regulation S-K appearing under the caption “Corporate Governance – Audit Committee” in the definitive Proxy Statement is hereby incorporated herein by reference.

Information related to insider trading policies and procedures governing the purchase, sale, and/or other dispositions of the Company's securities by directors, officers, and employees to promote compliance with insider trading laws, rules, and regulations and any applicable listing standards appearing under the caption "Insider Trading Policies" in the definitive Proxy Statement is hereby incorporated herein by reference.

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Executive Compensation.

The information contained under the caption "Compensation Committee Report," "Compensation Discussion and Analysis," "Executive Compensation," "Director Compensation," "Practices and Procedures Related to the Grant of Certain Equity Awards," and "Compensation Committee Interlocks and Insider Participation" contained in the definitive Proxy Statement is hereby incorporated herein by reference.

The information contained under the caption "Compensation Committee Report," "Compensation Discussion and Analysis" (including "Practices and Procedures Related to the Grant of Certain Equity Awards"), "Executive Compensation," "Director Compensation," and "Compensation Committee Interlocks and Insider Participation" contained in the definitive Proxy Statement is hereby incorporated herein by reference.

The "Compensation Committee Report" shall not be deemed to be soliciting material or to be filed with the commission.

As previously disclosed, the Compensation Committee has an ongoing goal that base salaries for officers, including named executive officers, are at or near the market median for base salaries when compared to the Company's established peer group.

Notwithstanding that goal, at the request of Mr.

Downing and the other named executive officers, the Compensation Committee and Board of Directors did not increase named executive officer base salaries in 2025.

The request and decision not to change executive officer base salaries was made based on overall market conditions.

However, at the request of Mr.

Downing and the other named executive officers, based on overall market conditions, the Compensation Committee and Board of Directors approved reduced base salaries for the named executive officers in 2026.

The Board, on February 19, 2026, approved the following base salaries for the CEO and other named executive officers for 2026:

Executive Officer Position 2025 Base Salary 2024 Base Salary

Executive Officer Position 2026 Base Salary

2025 Base Salary

Steve Downing President and CEO $ 750,000 $ 850,000

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Under the Annual Plan in 2026, the CEO may earn up to 220% of base salary.

The non-CEO named executive officers may earn up to 0% to 150% of their respective base salaries.

The non-CEO named executive officers may earn up to 0% to 160% (previously 150%) of their respective base salaries.

All performance-related targets under the Annual Plan are set by, and achievement of targets are approved by , the Compensation Committee and/or the Board of Directors.

For our executive officers, the 2025 Annual Plan payout opportunities as a percentage of base salary applicable to each performance metric are shown in the table below:

For our executive officers, the 2026 Annual Plan payout opportunities—expressed as a percentage of base salary for each performance metric—are set forth in the table below.

For the named executive officers other than Mr.

Downing, the target Annual Plan opportunity for 2026 was increased from 75% to 80% of base salary to increase the opportunity for performance-based compensation in light of the decrease in base salaries.

We believe the threshold, target, and maximum opportunity levels are now appropriate for each of the named executive officers.

For each metric (Revenue, Operating Income, and Earnings Per Diluted Share), the applicable opportunity (at threshold, target, or maximum) is multiplied by that metric’s weighting to determine the cash bonus amount earned based on actual performance.

When actual performance falls between the established threshold, target, or maximum, linear interpolation is used to determine any pro rata portion of the performance bonus.

The Compensation Committee and/or the Board may exercise discretion to increase or decrease performance‑based bonuses using their judgment (which may consider sustainable impact, people, and growth factors) when evaluating

performance and/or establishing objectives;

however, under no circumstances may any bonus exceed 250% of the applicable base salary.

Executive Officer Annual Plan Threshold Annual Plan Target Annual Plan Maximum

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Scott Ryan 40.0 % 80.0 % 160.0 %

No changes were made to the Annual Plan target opportunities for executive officers in 2025, as it is believed those threshold, target, and maximum opportunity levels remain appropriate.

The foregoing payout opportunities are multiplied by the weighting factor of a particular performance metric to determine the amounts of cash bonuses payable to officers based on actual performance compared to the threshold, target, or maximum for a performance

When actual performance is compared to the established threshold, target, or maximum, as applicable, for any performance metric, linear interpolation is used to determine any pro rata portion of the performance bonus.

The Compensation Committee and/or the Board also have discretion to increase (or decrease) such performance-based bonuses using their judgment, which can include, but is not limited to, sustainable impact, people and growth factors when evaluating a participant's performance and/or establishing performance objectives, provided that bonuses are not in any event to exceed 250% of the applicable base salary.

Since its inception in 2019, the Annual Plan uses the same three key performance metrics and weighting:

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The maximum level was set well above the target, requiring significant achievements and reflecting performance at which the Compensation Committee believed an additional 100% of the target award was warranted.

For 2024, target performance and actual results for the performance metrics are as follows:

In February 2025, the Compensation Committee and the Board approved the exclusion of incremental tariff costs and severance‑related expenses from the assessment of 2025 goal achievement, as these costs were not known at the time the goals were established.

For 2025, target performance and actual results for the performance metrics, reflecting the foregoing, are as follows:

Performance Metric Weight Threshold* Target* Maximum* Actual Performance**

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* Amounts in thousands (000) except for per share amounts.

Based on actual Revenue, Operating Income, and Earnings per Diluted Share results compared to the targets and performance of the named executive officers, the payments for 2024 under the Annual Plan are shown in the table below:

Executive Officer 2024 Annual Plan Performance Bonus 2024 Annual Plan Discretionary Bonus

**Excludes $27.0 million in net tariff costs($12.9m Revenue, $39.9m costs, and $11.6m in severance related expenses and related tax effect)

Based on actual Revenue, Operating Income, and Earnings per Diluted Share adjusted for the exclusion of incremental tariff costs and severance expense (net of tax) compared to the targets and performance of the named executive officers, the payments for 2025 under the Annual Plan are shown in the table below:

Executive Officer 2025 Annual Plan Performance Bonus

2025 Annual Plan Discretionary Bonus

Steve Downing $981,937 $0

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Scott Ryan $346,566 $0

These Annual Plan results appropriately reflect management's work in terms of a 5% revenue outperformance versus the Company's primary underlying markets, continued execution toward the previously announced gross margin recovery plan, and ongoing business development efforts.

For 2025, the Compensation Committee has established targets for Revenue, Operating Income, and Earnings per Diluted Share for the Annual Plan performance metrics consistent with the past.

In 2025, the Company used ± 20% of target for determining thresholds and maximums under the Annual Plan due to a reduction in overall end market volatility.

These Annual Plan results appropriately reflect management’s efforts to improve year‑over‑year gross margins despite the impact of tariff and counter‑tariff actions, which contributed to a 29% decline in revenues from the Company’s China business and significant incremental costs in the business.

Such improvement reflects continued execution of the previously announced gross margin recovery plan and ongoing business development initiatives.

addition, these results reflect execution of the acquisition of VOXX and progress made with respect to the integration.

For 2026, the Compensation Committee established Annual Plan performance targets for Revenue, Operating Income, and Earnings per Diluted Share similar to those in 2025, excluding severance‑related expenses (net of tax) due to the unpredictable timing and unknown amount of such expenses.

For 2026, the Company maintained ±20% of target for determining threshold and maximum performance levels under the Annual Plan.

2019 Omnibus Incentive Plan and Long-Term Incentive Program

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Scott Ryan 210 %

These Long-Term Plan Target Opportunity Percentages of Base Salary for 2025 - 2027 for Mr.

Chiodo and Mr.

Ryan have changed from those applicable for 2024 - 2026.

The Compensation Committee recommended, and the Board approved, this increase to Mr.

Chiodo and Mr.

Ryan's Long-Term Plan target opportunity in 2025 as set forth, as a result of increases in overall job responsibilities of each.

All Long-Term Plan target opportunities remain within the market median for long-term incentives for the officers' respective job responsibilities.

The Long-Term Plan target opportunity percentages of base salary for 2026–2028 for the named executive officers have been updated from the levels applicable to the 2025–2027 cycle.

The Compensation Committee recommended, and the Board of Directors approved, these increases to the 2026 Long-Term Plan target opportunities to further align executive compensation with the interests and goals of shareholders and to increase the opportunity for performance-based compensation in light of the decreases in base salaries.

Despite these adjustments, all Long-Term Plan target opportunities continue to fall within the market median range for long-term incentives relative to each officer’s respective role and responsibilities.

Achievement at threshold performance yields 50% of the target award and achievement of the maximum performance yields another 100% of the target award.

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ROIC ensures management uses the Company's capital in an effective manner that drives shareholder value.

Since the value of PSAs is tied to the Company's actual performance in financial objectives, it aligns the officers' interests with those of

shareholders.

Since the value of PSAs is tied to the Company's actual performance in financial objectives, it aligns the officers' interests with those of shareholders.

The target opportunities of PSAs awarded in 2026 for the named executive officers are shown in the table below:

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Consistent with the Long-Term Plan, incentive could be earned by the officers based on performance associated with two equally weighted metrics, EBITDA and ROIC, in each case adjusted as determined by the Compensation Committee, both measured cumulatively over the three-year performance period.

The target levels of achievement for the EBITDA and the ROIC were established to align with financial goals set at the beginning of the three-year performance period for the years 2022 through 2024.

The target levels of achievement for the EBITDA and the ROIC were established to align

with financial goals set at the beginning of the three-year performance period for the years 2023 through 2025.

The table below summarizes the results of the 2023-2025 performance period relative to target and the achievement level of the 2023-2025 PSAs:

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The PSAs awarded in February 2023, based on target opportunity, along with the actual payout of PSAs to the executive officers, for the 2023-2025 performance period are reflected in the table below and include additional shares awarded for dividend equivalents assuming reinvestment of dividends.

Executive Officer Number of PSAs Awarded in 2022 (Target) for 2022-2024 2022-2024 PSAs Payout

Executive Officer Number of PSAs Awarded in 2023 (Target) for 2023-2025

2023-2025 PSAs Payout

Steve Downing 75,018 124,311

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The RS awarded in February 2023, based on target opportunities, along with the actual payment of RS to executive officers, awarded for the 2023-2025 period are reflected in the table below:

Executive Officer Number of RS Awarded in 2022 (Target) for 2022-2024 2022-2024 RS Payout/Vesting

Executive Officer Number of RS Awarded in 2023 (Target) for 2023-2025

2022-2024 RS Payout/Vesting

Steve Downing 32,151 27,863

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(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Accounting for Technology Investments

Description of the Matter As discussed in Note 1 of the Company’s consolidated financial statements, the Company periodically makes strategic investments in the non-marketable debt or equity securities of non-consolidated third parties ("technology investments").

Depending on the form of investment, and the degree of influence the Company has over the investee, the Company primarily accounts for the technology investments in accordance with ASC 321, Investments - Equity Securities , or ASC 323, Investments – Equity Method and Joint Ventures .

The application of the accounting model under ASC Topic 323 requires an enhanced amount of professional judgment by management, including the determination of the appropriate accounting guidance to utilize and periodic reassessment of the ability to exert significant influence over the investee, evaluation of changes in the value of the Company’s investments due to equity transactions by the investees, and the required financial statement disclosures.

As of December 31, 2024, the Company has approximately $149.9 million and $6.0 million of technology investments recorded in long-term investments and short-term investments, respectively.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over technology investments.

This included testing controls over the Company’s process to identify and evaluate agreements and determine the appropriate accounting guidance to apply, including management’s periodic reassessment of the ability to exert significant influence over the investee, evaluation of changes in the value of the Company’s investments due to equity transactions by the investees and testing controls related to the Company’s valuation of the technology investments.

Our audit procedures included, among others, testing the completeness of material technology investments through inquiries with management, review of board and committee meeting minutes and inspection of rollforward investment schedules.

We assessed the determination of accounting guidance through review of agreements and other supporting evidence.

Furthermore, we performed valuation testing of the material technology investments based on the Company’s valuation approach and evaluated the adequacy of the disclosures in the financial statements in relation to technology investments.

Acquisition of VOXX International Corporation

Description of the Matter On April 1, 2025 the Company acquired all of the issued and outstanding shares of VOXX common stock not already owned.

As discussed in Note 11, prior to obtaining a controlling interest in VOXX, the Company owned 29% of VOXX common stock, and the transaction was accounted for as a business combination achieved in stages or a step-acquisition, for a total transaction consideration net of cash acquired of $187.7 million, which includes fair value of the previously held investment in VOXX.

The preliminary allocation of the purchase price was based on the fair value of the assets acquired and liabilities assumed, as of the closing date.

Auditing management’s initial accounting for the acquisition including management’s accounting for the transaction as a business combination achieved in stages, or a step-acquisition required judgment.

Additionally, the Company utilized a third-party expert to assist with the valuation methodologies in determining the preliminary fair value of assets and liabilities acquired.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s preliminary allocation of the purchase price including management’s controls over the initial accounting for the transaction as a step-acquisition, and management’s review of the third-party valuation methodologies.

Specifically, to test the initial accounting for the acquisition, we reviewed the Company’s accounting analysis for the business combination including the Company’s accounting for the transaction as a step-acquisition.

Additionally, we involved our internal valuation specialists to assist in our evaluation of the methodologies used by the Company in determining the preliminary fair values of significant assets acquired.

/s/ Ernst & Young LLP

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In our opinion, Gentex Corporation and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.

As indicated in the accompanying Management’s Report on Internal Control Over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of VOXX and BioConnect, which are included in the 2025 consolidated financial statements of the Company and constituted $400.4 million of total assets as of December 31, 2025 and $271.7 million of net sales for the year then ended.

Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of VOXX and BioConnect.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, shareholders' investment and cash flows for each of the three years in the period ended December 31, 2025, and the related notes, and our report dated February 24, 2026 expressed an unqualified opinion thereon.

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Dividends payable 25,853,403 27,264,897

Short-term debt

Other 55,507,912 16,059,475

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OTHER NON-CURRENT LIABILITIES 49,209,006 36,028,644

DEFERRED INCOME TAXES 908,922 —

TOTAL LIABILITIES 437,660,897 288,721,320

REDEEMABLE NON-CONTROLLING INTEREST 3,102,213 —

SHAREHOLDERS’ INVESTMENT:

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Retained earnings 1,466,046,002 1,450,287,128

Accumulated other comprehensive (loss) income:

Unrealized loss on investments, net ( 591,605 ) ( 2,022,403 )

Accumulated other comprehensive income (loss):

Unrealized income (loss) on investments, net

1,347,044 ( 591,605 )

Unrealized loss on derivatives

( 768,985 ) —

Cumulative translation adjustment ( 310,305 ) ( 5,817,736 )

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Non-controlling Interest — 4,149,000

TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT $ 2,760,820,975 $ 2,611,437,552

TOTAL SHAREHOLDERS' INVESTMENT 2,487,829,724 2,472,099,655

TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND SHAREHOLDERS' INVESTMENT $ 2,928,592,834 $ 2,760,820,975

The accompanying notes are an integral part of these consolidated financial statements.

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Selling, general and administrative 177,868,692 121,023,692 112,539,255

Severance expense

11,644,738 — —

Impairment Charges — 8,864,704 —

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OTHER INCOME:

Investment income, net

Investment (loss) income, net ( 1,289,250 ) 13,402,841 13,498,351

Other, net ( 11,584,089 ) ( 915,731 ) ( 4,248,230 )

Total other (loss) income

( 12,873,339 ) 12,487,110 9,250,121

Other loss, net ( 915,731 ) ( 4,248,230 ) ( 5,078,873 )

Total other income (loss) 12,487,110 9,250,121 ( 283,050 )

Income before provision for income taxes 461,062,415 472,213,683 504,981,174

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NET INCOME $ 384,682,077 $ 404,487,743 $ 428,403,272

EARNINGS PER SHARE (1) :

Net loss attributable to non-controlling interests ( 159,290 ) — —

NET INCOME ATTRIBUTABLE TO GENTEX CORPORATION $ 384,841,367 $ 404,487,743 $ 428,403,272

EARNINGS PER SHARE ATTRIBUTABLE TO GENTEX CORPORATION (1) :

Basic $ 1.74 $ 1.77 $ 1.84

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2025 2024 2023

Net income $ 404,487,743 $ 428,403,272 $ 318,757,352

Net income from consolidated operations $ 384,682,077 $ 404,487,743 $ 428,403,272

Other comprehensive income (loss) before tax:

Foreign currency translation adjustments 5,507,431 ( 1,283,017 ) ( 502,480 )

Unrealized gains (losses) on available-for-sale securities, net

Unrealized losses on derivatives

( 973,399 ) — —

Other comprehensive income (loss), before tax

Unrealized gains on available-for-sale securities, net

2,453,986 1,811,137 10,238,344

Expense (benefit) for income taxes related to components of other comprehensive income (loss) 380,339 2,150,052 ( 2,955,245 )

Other comprehensive income (loss), net of tax

Other comprehensive income, before tax

6,988,018 528,120 9,735,864

Comprehensive income $ 404,635,524 $ 435,989,084 $ 302,687,174

Income tax impact related to components of other comprehensive income

310,923 380,339 2,150,052

Other comprehensive income, net of tax

6,677,095 147,781 7,585,812

Comprehensive income from consolidated operations $ 391,359,172 $ 404,635,524 $ 435,989,084

Net loss attributable to non-controlling interests ( 159,290 ) — —

Comprehensive income attributable to Gentex Corporation $ 391,518,462 $ 404,635,524 $ 435,989,084

The accompanying notes are an integral part of these consolidated financial statements.

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Issuance of common stock from stock plan transactions 2,218,094 133,086 29,265,186 — — 29,398,272 — 29,398,272

Issuance of common stock related to acquisitions 162,433 9,746 4,990,266 — — 5,000,012 — 5,000,012

Repurchases of common stock ( 4,931,986 ) ( 295,920 ) ( 17,716,056 ) ( 128,024,161 ) — ( 146,036,137 ) — ( 146,036,137 )

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Issuance of common stock from stock plan transactions 2,153,810 129,229 27,165,898 — — 27,295,127 — 27,295,127

Non-controlling interest as a result of acquisition — — — — — — 4,149,000 4,149,000

Repurchases of common stock ( 6,401,781 ) ( 384,107 ) ( 24,510,715 ) ( 181,213,316 ) — ( 206,108,138 ) — ( 206,108,138 )

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Net income — — — 404,487,743 — 404,487,743 — 404,487,743

Other comprehensive loss — — — — 7,585,812 7,585,812 — 7,585,812

Other comprehensive income — — — — 147,781 147,781 — 147,781

BALANCE AS OF DECEMBER 31, 2024 227,207,472 $ 13,632,448 $ 1,010,440,420 $ 1,450,287,128 $ ( 6,409,341 ) $ 2,467,950,655 $ 4,149,000 $ 2,472,099,655

Issuance of common stock from stock plan transactions 1,824,642 109,478 14,350,723 — — 14,460,201 — 14,460,201

Noncontrolling Interest as part of acquisition — — — — — — 4,149,000 4,149,000

Repurchases of common stock ( 13,587,090 ) ( 815,225 ) ( 54,582,958 ) ( 263,633,425 ) — ( 319,031,608 ) — ( 319,031,608 )

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— — — ( 105,449,068 ) — ( 105,449,068 ) — ( 105,449,068 )

Net income — — — 404,487,743 — 404,487,743 — 404,487,743

Other comprehensive loss — — — — 147,781 147,781 — 147,781

Capital contributions, net — — — — — — 442,500 442,500

Fair value of non-controlling interest in EyeLock LLC — — — — — — 656,000 656,000

Purchase of additional interest in EyeLock LLC — — 525,301 — — 525,301 ( 600,301 ) ( 75,000 )

Purchase of additional interest in BioCenturion LLC — — 1,205,963 — — 1,205,963 ( 4,591,549 ) ( 3,385,586 )

Net income (loss) (1) — — — 384,841,367 — 384,841,367 ( 55,650 ) 384,785,717

Other comprehensive income — — — — 6,677,095 6,677,095 — 6,677,095

BALANCE AS OF DECEMBER 31, 2025 215,445,024 $ 12,926,701 $ 1,008,589,267 $ 1,466,046,002 $ 267,754 $ 2,487,829,724 $ — $ 2,487,829,724

(1) Net income excludes net loss attributable to non-controlling interest of $ 103,591 for the year ended December 31, 2025 ( see Note 11 ).

The accompanying notes are an integral part of these consolidated financial statements.

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CASH FLOWS FROM OPERATING ACTIVITIES:

Net income $ 404,487,743 $ 428,403,272 $ 318,757,352

Net income from consolidated operations $ 384,682,077 $ 404,487,743 $ 428,403,272

Adjustments to reconcile net income to net cash provided by operating activities:

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Loss on sale of investments and equity method investment losses 7,793,350 9,991,670 11,476,947

Provision for credit losses

7,446,408 — —

Remeasurement of earnout provision

2,623,277 — —

Deferred income taxes ( 18,406,246 ) ( 12,421,412 ) ( 17,735,110 )

Stock based compensation expense related to employee stock options, employee stock purchases and restricted stock 36,649,818 39,539,362 39,197,422

Impairment Charges 8,864,704 — —

Impairment charges - investments

14,081,956 — —

Impairment charges - goodwill and intangible assets

— 8,864,704 —

Change in operating assets and liabilities:

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Accrued liabilities ( 1,684,568 ) 1,019,584 ( 5,735,441 )

Net cash flows from operating activities 498,213,220 537,249,592 338,200,529

Net cash flows provided by operating activities

587,126,291 498,213,220 537,249,592

CASH FLOWS USED FOR INVESTING ACTIVITIES:

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VOXX share purchases — ( 31,450,000 ) ( 16,941,043 )

( 31,450,000 ) ( 16,941,043 ) ( 383,843 )

Purchase of technology investments ( 22,717,828 ) ( 27,659,631 ) ( 71,083,511 )

( 27,659,631 ) ( 71,083,511 ) ( 45,743,460 )

Plant and equipment additions ( 129,088,778 ) ( 144,669,002 ) ( 183,678,460 )

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Acquisition of businesses, net of cash acquired ( 156,291,946 ) ( 2,870,769 ) ( 18,936,539 )

Loans to technology investment partners

( 16,213,318 ) — —

Increase in other assets ( 1,888,944 ) ( 6,563,157 ) ( 4,453,376 )

Net cash used for investing activities ( 266,899,521 ) ( 202,078,417 ) ( 299,416,320 )

( 202,078,417 ) ( 299,416,320 ) ( 172,738,508 )

CASH FLOWS USED FOR FINANCING ACTIVITIES:

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Net cash used for financing activities ( 407,899,821 ) ( 289,251,056 ) ( 230,152,891 )

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 6,883,747 7,680,381 ( 43,557,032 )

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, Beginning of year 226,435,019 218,754,638 262,311,670

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, End of year $ 233,318,766 $ 226,435,019 $ 218,754,638

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 87,673,051 ) 6,883,747 7,680,381

CASH AND CASH EQUIVALENTS, Beginning of year 233,318,766 226,435,019 218,754,638

CASH AND CASH EQUIVALENTS, End of year $ 145,645,715 $ 233,318,766 $ 226,435,019

Twelve Months Ended December 31,

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Change in Property and equipment in accounts payable and accrued expenses and other current liabilities $ 17,371,599 $ ( 9,802,961 ) $ 6,927,750

$ ( 9,802,961 ) $ 6,927,750 $ 14,608,665

The accompanying notes are an integral part of these consolidated financial statements.

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(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES

Gentex Corporation, including its wholly-owned subsidiaries (the "Company"), is a leading supplier of digital vision, connected car, dimmable glass, and fire protection technologies.

Gentex Corporation, including its wholly-owned subsidiaries (the "Company"), is a leading supplier of digital vision, connected car, dimmable glass, fire protection technologies, premium audio products, medical devices, and consumer electronics.

The Company’s largest business segment involves designing, developing, manufacturing, marketing, and supplying automatic-dimming rearview and non-dimming mirrors and various electronic modules for the automotive industry.

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

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.

A substantial portion of the Company’s net sales and accounts receivable result from transactions with domestic and foreign automotive manufacturers and Tier 1 suppliers.

The Company also designs, develops, manufactures, markets, and supplies dimmable aircraft windows for the aviation industry and commercial smoke alarms and signaling devices for the fire protection products industry.

The Company also designs, develops, manufactures, markets, and supplies:

dimmable aircraft windows for the aviation industry;

commercial smoke alarms and signaling devices for the fire protection products industry;

premium audio, aftermarket electronics, consumer electronic and accessory products;

medical devices;

and biometric products and technologies for the commercial and retail consumer electronics industries.

The Company does not require collateral or other security for trade accounts receivable.

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Consolidation

The consolidated financial statements include the accounts of Gentex Corporation and all of its wholly-owned subsidiaries.

The Consolidated Financial Statements include the accounts of Gentex Corporation and all of its wholly-owned and majority-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

All intercompany accounts and transactions have been eliminated.

Cash Equivalents

Cash equivalents consist of funds invested in bank accounts and money market funds that have daily liquidity.

Allowance For Doubtful Accounts

The Company reviews a monthly aging report of all accounts receivable balances starting with invoices outstanding over sixty days.

In addition, the Company monitors information about its customers through a variety of sources including the media, and information obtained through ongoing interaction between Company personnel and the customer.

Based on the evaluation of the above information, the Company estimates its allowances related to customer receivables on historical credit and collections experience, customers current financial condition and the specific identification of other potential problems, including the economic climate and impact the supply chain constraints has had on specific customers.

Actual collections can differ, requiring adjustments to the allowances, but historically such adjustments have not been material.

The following table presents the activity in the Company’s allowance for doubtful accounts:

Balance Net Additions/Deductions

Adjustments Ending

Year Ended December 31, 2024:

Allowance for Doubtful Accounts $ 2,665,203 $ ( 628,306 ) $ 2,036,897

Year Ended December 31, 2023:

Allowance for Doubtful Accounts $ 2,967,095 $ ( 301,892 ) $ 2,665,203

Year Ended December 31, 2022:

Allowance for Doubtful Accounts $ 3,176,205 $ ( 209,110 ) $ 2,967,095

Non-controlling interests represent the equity interests in consolidated entities that the Company does not wholly own.

The Consolidated Financial Statements reflect 100% of the revenues, expenses, assets, and liabilities (after elimination of intercompany transactions), even though the Company does not own 100% of the equity interests of these consolidated entities.

The Company follows FASB ASC 810-10-45-21 to report a non-controlling interest (other than non-controlling interests subject to a put option) in the Consolidated Balance Sheets within the equity section, separately from the Company’s retained earnings.

Non-controlling interest is adjusted for the non-controlling interest holders’ proportionate shares of the earnings or losses and other comprehensive (loss) income, if any, and the non-controlling interest continues to be attributed their share of losses even if that attribution results in a deficit non-controlling interest balance.

The Company classifies securities with redemption features that are not solely within its control outside of permanent equity, specifically the non-controlling shareholder interest in Onkyo Technology KK ("Onkyo"), acquired in conjunction with the acquisition of VOXX International Corporation ("VOXX") (see Note 1 1 "Acquisitions" ).

This redeemable non-controlling interest, subject to a put/call option, is recorded at the greater of the non-controlling interest balance determined pursuant to ASC 810-10, “ Consolidation ,” or the redemption value (which is based upon the greater of a specified formula) when a redemption value exists.

In periods where the specific formula results in a negative amount, and thus no redemption value, no redemption adjustment is recorded.

Changes in the non-controlling interest due to changes in the redemption amount are immediately recorded as equity transactions and the Company's earnings per share calculation would be adjusted accordingly to treat any redemption adjustment similar to a dividend.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results could differ from those estimates.

GENTEX CORPORATION AND SUBSIDIARIES

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(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

The Company’s allowance for doubtful accounts primarily relates to financially distressed automotive customers.

The Company continues to work with these financially distressed customers in collecting past due balances.

Cash Equivalents

Cash equivalents consist of funds invested in bank accounts and money market funds that have daily liquidity.

Available for sale securities

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These investments are carried at amortized cost, which approximates fair value.

On October 4, 2023, the Company entered into a Stock Purchase Agreement to acquire up to 3,137,500 shares of VOXX International Corporation ("VOXX") Class A Common Stock.

The Company agreed to purchase the shares in two tranches:

(1) on October 6, 2023, the Company purchased 1,568,750 shares of Class A Common Stock at a price of $ 10 per share, and (2) on January 5, 2024, the Company purchased 1,568,750 shares of Class A Common Stock at a price of $ 10 per share.

On August 23, 2024, the Company entered into another Stock Purchase Agreement and acquired an additional 3,152,500 shares of Class A Common Stock on that date at $ 5 per share for investment purposes.

The Company has the intention and current ability to hold the VOXX investment, and therefore has recorded the investment within Long-term Investments in the consolidated balance sheet.

As of December 31, 2024, the Company holds a total of 6,463,308 shares of VOXX.

The VOXX shares held by the Company are publicly traded and have a readily determinable fair market value and are considered Level 1 assets.

Prior to the August 2024 purchases, the investment was accounted for in accordance with ASC 321, Investments - Equity Securities, with changes in fair value recorded in Investment income, net in consolidated statements of income.

As a result of the August 2024 purchase, the Company began accounting for the VOXX investment in accordance with ASC 323 – Investments – Equity Method and Joint Venture , with the election to use the Fair Value Option under ASC 825 - Fair Value .

As a result of this election, changes in fair value of the shares are recorded in Investment income, net in the consolidated statements of income.

The Company recorded $ 2.4 million of loss during the year ended December 31, 2024 relating to mark to market adjustments in Investment Income, net related to VOXX.

On December 17, 2024, as previously disclosed, the Company entered into a definitive agreement and plan of merger for the Company to acquire shares of VOXX in an all-cash transaction.

Under the terms of the agreement, the Company will acquire all the issued and outstanding shares of VOXX common stock not already owned by the Company for a purchase price of $ 7.50 per share.

The transaction is subject to approval of VOXX’s stockholders, certain regulatory approvals and other customary closing conditions, and is expected to close in the first half of 2025.

Technology Investments

The Company also periodically makes strategic investments in the non-marketable debt or equity securities of non-consolidated third parties ("technology investments").

Such technology investments totaled approximately $ 155.9 million at December 31, 2024, of which $ 149.9 million and $ 6.0 million are recorded

As of December 31, 2024, the Company held a total of 6,463,308 shares of VOXX Class A Common Stock.

The VOXX shares held by the Company were publicly traded, had a readily determinable fair market value, and were considered Level 1 assets.

The Company accounted for the VOXX investment in accordance with ASC 323 – Investments – Equity Method and Joint Venture , with the election to use the Fair Value Option under ASC 825 - Fair Value .

As a result of this election, changes in fair value of the shares were recorded in Investment (loss) income, net in the Consolidated Statements of Income.

The Company recorded a gain of $ 0.8 million during the year ended December 31, 2025 and a loss of $ 2.4 million during the year ended December 31, 2024, relating to mark to market adjustments in Investment (loss) income, net, related to VOXX.

On April 1, 2025, the Company completed its previously announced merger of VOXX pursuant to that certain Agreement and Plan of Merger dated as of December 17, 2024 (the "Merger Agreement"), acquiring all of the issued and outstanding shares of VOXX common stock not already owned by the Company for a purchase price of $ 7.50 per share.

The Company's investment in VOXX has been included in the purchase price of the entity pursuant to step-acquisition accounting under ASC 805, Business Combinations (see Note 1 1 "A cquisitions" ).

Equity Method Investment - ASA

The Company has a 50 % non-controlling ownership interest in ASA Electronics, LLC and Subsidiary ("ASA"), that was obtained in conjunction with the acquisition of VOXX on April 1, 2025 (see Note 1 1 "Acquisitions" ) and is accounted for in accordance with ASC 323, Investments – Equity Method and Joint Venture .

ASA acts as a distributor of mobile electronics, specifically designed for niche markets, including:

and commercial, heavy duty, agricultural, construction, powersport, and marine vehicles.

ASC 810, Consolidation , requires the Company to evaluate non-consolidated entities periodically, and as circumstances change, to determine if an implied controlling interest exists.

In conjunction with the acquisition of VOXX on April 1, 2025, the Company evaluated this equity method investment and concluded that ASA is not a variable interest entity.

The balance of the Company's investment in ASA as of December 31, 2025, was $ 20.0 million and is included in Long-term investments on the accompanying Consolidated Balance Sheet.

GENTEX CORPORATION AND SUBSIDIARIES

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(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

in long-term investments and short-term investments on the consolidated balance sheet, and $ 128.0 million as of December 31, 2023, of which $ 124.6 million and $ 3.4 million are recorded in long-term investments and short-term investments on the consolidated balance sheet.

Technology Investments

The Company also periodically makes strategic investments in the non-marketable debt or equity securities of non-consolidated third parties ("technology investments").

Such technology investments totaled approximately $ 146.6 million at December 31, 2025, of which $ 144.9 million and $ 1.7 million are recorded in Long-term investments and Short-term investments, respectively, on the accompanying Consolidated Balance Sheet, and $ 155.9 million as of December 31, 2024, of which $ 149.9 million and $ 6.0 million are recorded in Long-term investments and Short-term investments, respectively, on the accompanying Consolidated Balance Sheet.

Depending on the form of investment, and the degree of influence the Company has over the investee, the Company primarily accounts for the technology investments in accordance with ASC 321, Investments- Equity Securities or ASC 323 – Investments – Equity Method and Joint Venture .

The Company accounts for equity securities in non-controlled affiliates through which the Company exercises significant influence but does not have control over the investee under the equity method, with the Company’s share of the earnings or losses of non-controlled affiliates recognized within Other loss, net in the Company's consolidated statement of income .

The Company accounts for equity securities in non-controlled affiliates through which the Company exercises significant influence but does not have control over the investee under the equity method, with the Company’s share of the earnings or losses of non-controlled affiliates recognized within Other, net in the Company's Consolidated Statement of Income .

All other technology investments that the Company holds are primarily accounted for under the measurement alternative of ASC 321.

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- Adasky is an Israeli based leading developer and manufacturer of intelligent, high-resolution thermal sensing systems for vehicle safety and perception applications and smart city roadway solutions.

During 2023, the Company invested approximately $ 46.5 million in Adasky, which resulted in an approximately 27 % ownership stake in Adasky.

These investments included approximately $ 25 million related to preferred shares of Adasky accounted for using the measurement alternative and $ 21.5 million for common shares of Adasky accounted for using the equity method.

The Company's investment includes preferred shares of Adasky accounted for using the measurement alternative and common shares of Adasky accounted for using the equity method of accounting.

During the year ended December 31, 2025, the Company made an additional investment of $ 5.0 million in Adasky common shares and has an approximately 34 % ownership stake in Adasky as of December 31, 2025.

As of December 31, 2025 and 2024, the carrying value of the Company’s investments in Adasky was $ 47.2 million and $ 44.0 million, respectively.

Green Marbles - GreenMarbles is a provider of sustainable solutions for integration into properties.

On June 3, 2022, the Company obtained an approximate 20 % equity share in GreenMarbles for $ 25.0 million, consisting of $ 20.0 million of cash investment and the issuance of $ 5.0 million worth of the Company's common stock.

In 2022, the Company obtained an equity share in GreenMarbles for $ 25.0 million, consisting of $ 20.0 million of cash investment and the issuance of $ 5.0 million worth of the Company's common stock.

The Company accounts for its investment in GreenMarbles using the equity method.

As of December 31, 2024 and 2023, the carrying value of the investment in GreenMarbles was $ 20.8 million and $ 22.6 million, respectively.

SAAM - SAAM is the maker of HavenGO and a leader in indoor air quality and chemical detection technology, with its development efforts focusing on the design and manufacturing of an advanced mobile indoor air quality monitor.

During the years ended December 31, 2024 and 2023, the Company made investments of $ 2.4 million and $ 5.0 million in SAAM, respectively.

As of December 31, 2024, the Company has an approximately 34 % ownership interest in SAAM.

The Company accounts for its investment in SAAM using the measurement alternative.

As of December 31, 2024 and 2023, the carrying value of the investment in SAAM was $ 10.3 million and $ 7.7 million, respectively.

During the year ended December 31, 2025, the Company recorded an impairment charge related to this investment, as further discussed below.

As of December 31, 2025 and 2024, the carrying value of the investment in GreenMarbles was $ 11.5 million and $ 20.8 million, respectively, and as of December 31, 2025, the Company has an approximate 26 % ownership interest in the investee.

Simplenight - Simplenight provides drivers and vehicle occupants with access to enhanced mobile capability for booking personalized entertainment and lifestyle experiences in addition to everyday purchases.

During the years ended December 31, 2024 and 2023, the Company made investments of $ 7.5 million and $ 7.5 million in Simplenight, respectively, and as of December 31, 2024, the Company has an approximately 31 % ownership interest in Simplenight primarily accounted for using the measurement alternative.

During the year ended December 31, 2025, the Company made an additional investment of $ 10.0 million in Simplenight, and as of December 31, 2025, the Company has an approximately 33 % ownership interest in Simplenight accounted for using the measurement alternative.

As of December 31, 2025, and 2024, the carrying value of the Company’s investments in Simplenight was $ 39.3 million and $ 29.2 million, respectively.

Solace Power - Solace Power is a Canada-based company specializing in wireless power solutions.

On December 12, 2023, the Company purchased a 13 % equity interest in Solace Power, which is accounted for using the measurement alternative.

As of both December 31, 2024 and 2023, the carrying value of the Company's investment in Solace Power was $ 7.1 million.

Retispec - RetiSpec is an artificial intelligence medical imaging company developing a tool for the early detection of disease biomarkers in the eye.

During the year ended December 31, 2024, the Company made an additional investment of $ 2.0 million for an additional 3 % equity share in RetiSpec, for a total of

In 2023, the Company purchased an equity interest in Solace Power, which is accounted for using the measurement alternative.

As of both December 31, 2025, and 2024, the carrying value of the Company's investment in Solace Power was $ 7.1 million, and as of December 31, 2025, the Company has an approximately 15 % ownership interest in the investee.

GENTEX CORPORATION AND SUBSIDIARIES

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(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

14 % ownership interest.

The Company also recognized a $ 3.7 million revaluation gain as part of this additional round of investment, which included new investors in the entity.

Retispec - RetiSpec is an artificial intelligence medical imaging company developing a tool for the early detection of disease biomarkers in the eye.

During the year ended December 31, 2025, the Company made an additional investment of $ 2.8 million.

The Company also recognized a $ 3.7 million revaluation gain during the year ended December 31, 2024, as part of its additional round of investment in that year, which included new investors in the entity.

The Company accounts for RetiSpec using the measurement alternative.

As of December 31, 2024 and 2023, the carrying value of the Company's investments in RetiSpec was $ 10.0 million and $ 4.2 million, respectively.

As of December 31, 2025, and 2024, the carrying value of the Company's investment in RetiSpec was $ 12.8 million and $ 10.0 million, respectively, and has a total of 20 % ownership interest at December 31, 2025.

During the year ended December 31, 2025, the Company recorded other-than-temporary impairment charges totaling $ 14.1 million related to certain of its technology investments within Investment (loss) income, net, on the accompanying Consolidated Statement of Income.

During the second quarter of 2025, the Company identified indicators of impairment related to its investment in Green Marbles, LLC as a result of sustained deterioration in the operating results of the investee.

The Company performed an impairment analysis of this equity method investment and recorded a charge of $ 6.2 million during the year ended December 31, 2025.

The fair value of the investment was estimated using a discounted cash flow model.

The Company's assumptions in estimating the fair value of Green Marbles, LLC utilized Level 3 inputs, including projected revenue growth, gross margins, EBITDA margins, and weighted average costs of capital.

Based on the foregoing, the Company determined that the fair value of this investment was below its carrying value at the triggering event date and does not expect the fair value to recover under current conditions.

During the third quarter of 2025, the Company identified indicators of impairment related to its investment in New Compliance B.V.

following a funding round conducted by the investee at a per-share price below the Company's carrying value of this investment.

As a result, the Company recorded an impairment charge of $ 2.2 million during the year ended December 31, 2025, to reduce the carrying value of this investment to a balance consistent with the fair value implied by New Compliance B.V.'s then most recent financing.

During the fourth quarter of 2025, the Company identified indicators of impairment related to its investment in PayByCar, Inc., including sustained deterioration in the operating results of the investee and initiation of a plan of liquidation and dissolution, as approved by the investee's board of directors.

Based on these indicators, the Company evaluated the investment in PayByCar for impairment and determined that the carrying amount of the investment was not recoverable and that its fair value was nominal.

Accordingly, the Company recorded an impairment charge of $ 5.7 million for the year ended December 31, 2025 to write down the investment to its estimated fair value.

Assets or liabilities that have recurring fair value measurements are shown below as of December 31, 2025 and December 31, 2024:

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Short-Term Investments:

Asset-backed Securities 2,851,933 — 2,851,933 —

Certificate of Deposit 751,728 751,728 — —

Corporate Bonds 2,747,293 — 2,747,293 —

Government Securities 3,982,275 — 3,982,275 —

Municipal Bonds 3,386,500 — 3,386,500 —

Other 924,658 924,658 — —

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Corporate Bonds 55,596,276 — 55,596,276 —

Government Securities 6,199,535 — 6,199,535 —

Municipal Bonds 16,840,001 — 16,840,001

VOXX Common Stock 47,702,903 47,702,903 — —

Total $ 257,463,076 $ 146,570,373 $ 110,892,703 $ —

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Short-Term Investments:

Asset-backed Securities 2,851,933 — 2,851,933 —

Certificate of Deposit 751,728 751,728 — —

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Asset-backed Securities 41,766,104 — 41,766,104 —

Certificate of Deposit 748,358 748,358 — —

Corporate Bonds 54,537,517 — 54,537,517 —

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Short-Term Investments:

Asset-backed Securities $ 2,834,713 $ 17,220 $ — $ 2,851,933

Certificate of Deposit 750,000 1,728 — 751,728

Corporate Bonds $ 2,725,824 $ 21,469 $ — $ 2,747,293

Government Securities 3,981,161 1,114 — 3,982,275

Municipal Bonds 3,400,019 472 ( 13,991 ) 3,386,500

Other 924,658 — — 924,658

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Corporate Bonds 55,218,308 684,752 ( 306,784 ) 55,596,276

Government Securities 6,206,437 13,124 ( 20,026 ) 6,199,535

Municipal Bonds 16,662,335 351,044 ( 173,378 ) 16,840,001

VOXX Common Stock 48,774,886 7,502,949 ( 8,574,932 ) 47,702,903

Total $ 110,112,242 $ 2,185,806 $ ( 480,687 ) $ 111,817,361

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Short-Term Investments:

Asset-backed Securities $ 2,834,713 $ 17,220 $ — $ 2,851,933

Certificate of Deposit 750,000 1,728 — 751,728

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Asset-backed Securities 41,372,112 620,756 ( 226,764 ) 41,766,104

Certificate of Deposit 750,000 — ( 1,642 ) 748,358

Corporate Bonds 54,552,964 355,627 ( 371,074 ) 54,537,517

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If market, industry, and/or investee conditions deteriorate, the Company may incur future impairments.

No investments were considered to be other-than-temporarily impaired in 2024 and 2023.

No such investments were considered to be other-than-temporarily impaired in 2025 and 2024.

Fixed income securities as of December 31, 2025, have contractual maturities as follows:

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Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, investments, accounts receivable, accounts payable, and short and long-term debt.

The Company’s financial instruments consist of cash and cash equivalents, investments, accounts receivable, accounts payable, and short-term debt.

The Company’s estimate of the fair values of these financial instruments approximates their carrying amounts at December 31, 2025 and 2024.

Inventories include material, direct labor and manufacturing overhead and are valued at the lower of cost or net realizable value.

Cost is determined on a standard cost basis that approximates the first-in, first-out (FIFO) method.

Allowance For Credit Losses

Trade Accounts Receivable:

The Company's trade accounts receivable arise from revenue transactions in the ordinary course of business.

The Company extends credit to customers based on pre-defined criteria and trade receivables are generally due within 30 to 90 days.

The Company estimates its allowances related to customer receivables based on historical credit and collections experience, customers' current financial condition and the specific identification of other potential problems, including the economic climate and impact supply chain constraints have had on specific customers.

Actual collections can differ, requiring adjustments to the allowances, but historically such adjustments have not been material.

The following table presents the activity in the Company’s allowance for credit losses related to trade accounts receivable:

Balance Net Additions/Deductions

Adjustments Ending

Year Ended December 31, 2025:

Allowance for Credit Losses $ 2,036,897 $ 533,652 $ 2,570,549

Year Ended December 31, 2024:

Allowance for Credit Losses $ 2,665,203 $ ( 628,306 ) $ 2,036,897

Year Ended December 31, 2023:

Allowance for Credit Losses $ 2,967,095 $ ( 301,892 ) $ 2,665,203

The Company’s allowance for credit losses related to trade accounts receivable primarily relates to financially distressed customers.

The Company continues to work with these customers in collecting past due balances.

Loans Receivable:

From time to time, the Company makes loans, in the ordinary course of business, to certain of its technology investees.

Such loans vary in length and are interest bearing.

As such, the loans are not deemed to be additional investments in the technology investees as the parties intend for the loans to be repaid.

These loans are classified within Prepaid expenses and other and Patents and other assets, net, on the accompanying Consolidated Balance Sheet based on the maturity dates of the loans.

The Company estimates an allowance for credit losses for these loans receivable in accordance with ASC 326, Financial Instruments - Credit Losses .

This allowance reflects the Company's estimate of expected credit losses over the contractual term of the loans, considering historical loss experience, current conditions, and reasonable and supportable forecasts.

The estimate is developed using a combination of quantitative data and qualitative factors, including borrower creditworthiness, loan-specific risk characteristics, macroeconomic trends, and other relevant information, all of which is updated quarterly.

The allowance is adjusted through a provision for credit losses, presented within Other, net on the Company's Consolidated Statements of Income.

For the year ended December 31, 2025, the Company recorded an increase to the credit loss allowance of $ 7.4 million.

The balance of the loans included in Prepaid expenses and other on the accompanying Consolidated Balance Sheet at December 31, 2025, was $ 13.5 million, net of credit loss allowance.

The balance of the loans included in Patents and other assets, net, on the accompanying Consolidated Balance Sheet at December 31, 2025, was $ 7.9 million, net of credit loss allowance.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

The Company values its inventory at the lower of cost or net realizable value ("NRV").

NRV is defined as estimated selling prices less costs of completion, disposal, and transportation.

Inventories include material, direct labor, and manufacturing overhead.

Cost is determined primarily on a standard cost basis that approximates the first-in, first-out (FIFO) method, with a portion valued on a weighted moving-average basis, both of which approximate actual cost.

Inventories consisted of the following as of December 31, 2025 and 2024:

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Total Inventory $ 516,253,617 $ 436,497,445

Estimated inventory allowances for slow-moving and obsolete inventories are based on current assessments of future demands, market conditions, evaluation of longer lead times for certain electronic components and related management initiatives.

Estimated inventory allowances for slow-moving and obsolete inventories are based on current assessments of future demand, market conditions, purchase orders, selling prices, evaluation of longer lead times for certain electronic components, and related management initiatives.

If market conditions or customer requirements change and are less favorable than those projected by management, inventory allowances are adjusted accordingly.

Allowances for slow-moving and obsolete inventories (which are included, net, in the above inventory values) were $ 12.2 million and $ 9.9 million at December 31, 2025 and 2024, respectively.

The increase in the inventory balance, as well as the increase in the balance of the allowance for slow moving and obsolete inventories at December 31, 2025, was due to the acquisition of VOXX ( see Note 11, Acquisitions ).

Plant and Equipment

Plant and equipment is stated at cost.

Depreciation and amortization are computed for financial reporting purposes using the straight-line method, with estimated useful lives of 7 to 30 years for buildings and improvements, and 3 to 10 years for machinery and equipment.

Depreciation expense was approximately $ 76.8 million, $ 73.6 million and $ 74.9 million in 2024, 2023 and 2022, respectively.

Plant and equipment is stated at cost less accumulated depreciation.

Depreciation is computed for financial reporting purposes using the straight-line method, with estimated useful lives of 7 to 30 years for buildings and improvements, and 3 to 10 years for machinery and equipment.

Depreciation expense was approximately $ 88.8 million, $ 76.8 million and $ 73.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.

The increase in depreciation expense during the year ended December 31, 2025, was a result of the acquisition of VOXX on April 1, 2025 ( see Note 11, Acquisitions ).

Repairs and Maintenance

Major renewals and improvements of property and equipment are capitalized, and repairs and maintenance are expensed as incurred.

The Company incurred expenses relating to the repair and maintenance of plant and equipment of approximately $ 34.9 million, $ 35.3 million and $ 31.0 million, in 2025, 2024 and 2023, respectively.

Impairment or Disposal of Long-Lived Assets

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If the undiscounted cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or appraisals.

There were no impairments of long-lived assets incurred during the year ended December 31, 2025, 2024, or 2023.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

The Company’s policy is to capitalize costs incurred to obtain patents.

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The Company periodically obtains intellectual property rights, in the ordinary course of business, and the cost of the rights are amortized over their useful lives.

At December 31, 2025 and 2024, total patents, net of accumulated amortization, were $ 11.0 million and $ 11.1 million, respectively, and are included in Patents and other assets, net, on the accompanying Consolidated Balances Sheets.

At December 31, 2025, patents had a weighted average amortized life of 9 years.

Goodwill and Intangible Assets

Goodwill reflects the cost of an acquisition in excess of the fair values assigned to identifiable net assets acquired.

The Company reviews goodwill for impairment during the fourth quarter on an annual basis or more frequently if events or changes in circumstances indicate that goodwill might be impaired.

The Company performs an impairment review for each of its reporting units with goodwill, which are Automotive,

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

Dimmable Aircraft Windows, Nanofiber, Medical, and Biometrics, using either a qualitative approach or quantitative approach which utilizes a fair value method that incorporates certain assumptions and judgments.

Goodwill and other intangible assets consist of the excess of consideration over the fair values of net assets acquired (goodwill) and other intangible assets (patents, contracts, trademarks/tradenames, developed technology and customer relationships).

Values assigned to the respective assets are determined in accordance with ASC 805 " Business Combinations " ("ASC 805") and ASC 350 " Intangibles – Goodwill and Other " ("ASC 350").

Goodwill is calculated as the excess of the cost of an acquisition over the fair values assigned to identifiable net assets acquired.

In accordance with ASC 350, the Company reviews goodwill for impairment during the fourth quarter on an annual basis or more frequently if events or changes in circumstances indicate that goodwill might be impaired.

The Company performs an impairment review for each of its reporting units with goodwill, which are Automotive, Premium Audio, Dimmable Aircraft Windows, Nanofiber, Medical, and Biometrics, using either a qualitative approach and/or quantitative approach employing a fair value method that incorporates certain assumptions and judgments.

The fair value of a reporting unit refers to the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date.

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If so, the Company performs a step 1 test to determine the fair value of the reporting unit using an income approach to estimate the fair value of each of its reporting units and a market valuation approach to further support this analysis.

If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered to be impaired.

However, if the fair value of the reporting unit is less than its carrying amount, an impairment change is recorded as the excess of the reporting unit's carrying value over its fair value.

If such fair value of the reporting unit is greater than its carrying amount, goodwill is not considered to be impaired.

However, if such fair value of the reporting unit is less than its carrying amount, an impairment charge is recorded as the excess of the reporting unit's carrying value over its fair value.

The assumptions included in the impairment tests require judgment and changes to these inputs could impact the results of the calculations which could result in an impairment charge in future periods if the carrying amount of the reporting unit exceeds its calculated fair value.

1 unchanged sentence

Other than management's internal projections of future cash flows, the primary assumptions used in the step 1 impairment test is the weighted-average cost of capital and long-term growth rates.

Although the Company's cash flow forecasts are based on assumptions that are considered reasonable by management and consistent with the plans and estimates management is using to operate the underlying business, there are significant judgments in determining the expected future cash flows attributable to a reporting unit.

Although the Company's cash flow forecasts are based on assumptions that are considered reasonable by management and consistent with the plans and estimates management is using to operate the underlying business, there are significant judgments involved in determining the expected future cash flows attributable to a reporting unit.

During the year ended December 31, 2024, the Company recorded $ 3.7 million of impairment charges related to the Nanofiber reporting unit as a result of the annual impairment review.

No impairment charges were recorded during the year ended December 31, 2023.

Indefinite lived intangible assets are also subject to annual impairment testing or more frequently if indicators of impairment are identified.

No impairment charges were recorded during the years ended December 31, 2025 and 2023.

In accordance with ASC 350, indefinite lived intangible assets are also subject to annual impairment testing or more frequently if indicators of impairment are identified.

Management's judgment and assumptions are required in determining the underlying fair value of the indefinite lived intangible assets.

While the Company believes the judgments and assumptions used in determining fair value are reasonable, different assumptions could change the estimated fair values and, therefore, impairment charges could be required, which could be material to the Consolidated Financial Statements.

The Company performs a qualitative assessment (step 0) to determine whether it is more likely than not that an intangible asset's fair value is less than its carrying amount.

If not, no further impairment testing over the indefinite lived intangible assets is performed.

The Company performs a qualitative

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(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

assessment (step 0) to determine whether it is more likely than not that an intangible asset's fair value is less than its carrying amount.

If not, no further impairment testing over the indefinite lived intangible asset is performed.

As part of recent acquisitions, the Company acquired indefinite lived in-process research and development ("IPR&D") intangible assets.

These IPR&D assets are not amortized, but are tested for impairment annually, or more frequently when indicators of potential impairment exist, until the completion or abandonment of the associated research and development efforts.

These IPR&D intangible assets are not amortized, but are tested for impairment annually, or more frequently when indicators of potential impairment exist, until the completion or abandonment of the associated research and development efforts.

Upon completion of the projects, the assets will be amortized over the expected economic life of the asset, which will be determined on that date.

Should the project be determined to be abandoned, and if the asset developed has no alternative use, the full value of the asset will be charged to expense.

Should the project be determined to be abandoned, and if the asset developed has no alternative use, the full value of the asset will be charged to expense at that time.

During the year ended December 31, 2024, the Company recorded $ 5.2 million in impairment charges within its Nanofiber reporting unit related to the Vaporsens Inc.

("Vaporsens") IPR&D asset as a result of the annual impairment review.

No impairment charges were recorded during the year ended December 31, 2023.

Refer to Note 10, "Goodwill and Intangible Assets" for information regarding the impairment testing performed in calendar year 2024.

No impairment charges were recorded during the years ended December 31, 2025 and 2023.

Refer to Note 9 , "Goodwill and Intangible Assets" for information regarding the impairment testing performed in calendar year 2025 and 2024.

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers .

Accordingly, revenue is recognized in an amount that reflects the

GENTEX CORPORATION AND SUBSIDIARIES

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consideration to which the Company expects to be entitled in exchange for promised goods or services when it transfers those goods or services to customers.

The Company applies the FASB’s guidance on revenue recognition, which requires recognition of the amount of revenue and consideration that is expected to be received in exchange for goods and services transferred to customers.

To do this, the Company applies the five-step model prescribed by the FASB, which requires it to:

(a) identify the contract with the customer;

(b) identify the performance obligations in the contract;

(d) allocate the transaction price to the performance obligations in the contract;

and (e) recognize revenue when, or as, the performance obligation is satisfied.

The Company accounts for a contract or purchase order when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable.

Revenue is recognized when control of the product passes to the customer, which is upon shipment, unless otherwise specified within the customer contract or on the purchase order as delivery and is recognized at the amount that reflects the consideration the Company expects to receive for the products sold, including any forms of discounts.

Sales are shown net of returns, which have not historically been significant.

The Company does not generate sales from arrangements with multiple deliverables.

The Company generally receives purchase orders from customers on an annual basis in the ordinary course of business.

Purchase orders submitted to the Company by its customers are typically of a duration of one year or less.

As such, the Company applies the practical expedient in ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less, for which work has not yet been performed.

Within its Automotive Products segment, the Company generally receives purchase orders from customers on an annual basis in the ordinary course of business.

Typically, such purchase orders provide the annual terms, including pricing, related to a particular vehicle model.

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The Company recognizes revenue based on the pricing terms included in such annual purchase orders.

The Company's typical payment terms vary based on the customer and the type of goods and services in the contract or purchase order.

The period of time between invoicing and when the payment is due is not significant.

Amounts billed and due from customers are classified as receivables on the accompanying Consolidated Balance Sheets.

As the Company's standard payment terms are less than one year, the

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(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

practical expedient under ASC 606-10-32-18 has been elected to not assess whether a contract has a significant financing component.

As part of certain agreements, entered into in the ordinary course of business, the Company is asked to provide customers with annual price reductions.

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Such pricing accruals are adjusted as they are settled with customers.

The Company offers sales incentives to certain customers in the form of:

(a) co-operative advertising allowances;

(b) market development funds;

and (d) other trade allowances.

The Company accrues the cost of co-operative advertising allowances, volume incentive rebates, and market development funds at the later of when the customer purchases its products or when the sales incentive is offered to the customer.

The Company records the provision for other trade allowances at the later of when the sales incentive is offered or when the related revenue is recognized.

Except for other trade allowances, all sales incentives require the customer to purchase the Company's products during a specified period of time and to claim the sales incentive within a certain time period (referred to as the "claim period").

All costs associated with sales incentives are classified as a reduction of net sales.

Depending on the specific facts and circumstances, the Company utilizes either the most likely amount or the expected value methods to estimate the effect of uncertainty on the amount of variable consideration to which it would be entitled related to sales incentive adjustments.

Both methods are based upon the contractual terms of the incentives and historical experience with each customer.

Although the Company makes its best estimate of sales incentive liabilities, many factors, including significant unanticipated changes in the purchasing volume and the lack of claims from customers could have a significant impact on the liability for sales incentives and reported operating results.

The Company records estimates for cash discounts, promotional rebates, and other promotional allowances in the period the related revenue is recognized (“Customer Credits”).

The provision for Customer Credits is recorded as a reduction from gross sales and reserves for Customer Credits are presented within Other accrued liabilities on the accompanying Consolidated Balance Sheets.

Refer to Note 1 0 , "Revenue" , for further information.

The Company has concluded that its estimates of variable consideration are not constrained according to the definition within the standard.

Additionally, the Company applies the practical expedient in ASC paragraph 606-10-25-18B and accounts for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment activity, rather than a separate performance obligation.

Advertising and Promotional Materials

All advertising and promotional costs are expensed as incurred and amounted to approximately $ 4.5 million, $ 3.4 million and $ 3.3 million, in 2024, 2023 and 2022, respectively.

Repairs and Maintenance

Major renewals and improvements of property and equipment are capitalized, and repairs and maintenance are expensed as incurred.

The Company incurred expenses relating to the repair and maintenance of plant and equipment of approximately $ 35.3 million, $ 31.0 million and $ 27.9 million, in 2024, 2023 and 2022, respectively.

All advertising and promotional costs are expensed as incurred and amounted to approximately $ 8.0 million, $ 4.5 million, and $ 3.4 million, in the years ended December 31, 2025, 2024 and 2023, respectively.

The increase in advertising expense during the year ended December 31, 2025 was due to the acquisition of VOXX and inclusion of VOXX in the Company's consolidated result beginning on April 1, 2025 ( see Note 11, Acquisitions ).

Self-Insurance

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IBNR claims are estimated using historical lag information and other data provided by claims administrators.

This estimation process is subjective, and to the extent that future results differ from original estimates, adjustments to recorded accruals may be necessary.

This estimation

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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process is subjective, and to the extent that future results differ from original estimates, adjustments to recorded accruals may be necessary.

Product Warranty

The Company periodically incurs product warranty costs.

Any liabilities associated with product warranty are estimated based on known facts and circumstances and are not significant at December 31, 2024, 2023 and 2022.

The Company does not offer extended warranties on its products.

The Company warrants its products against certain defects in material and workmanship, when used as designed.

These warranties do not provide a service beyond assuring that the products comply with agreed-upon specifications and are not sold separately.

Warranty expenses are accrued at the time the related revenue is recognized, based on the Company's estimated cost to repair, or replace expected product returns for warranty matters.

The liabilities associated with product warranty are estimated based on historical experiences of actual warranty claims, as well as known facts and circumstances.

At December 31, 2025 and 2024, the warranty liability of $ 8.3 million and $ 2.8 million, respectively, was recorded in Other, under Accrued liabilities on the accompanying Consolidated Balance Sheets.

For the years ended December 31, 2025, 2024 and 2023 warranty claims and product repair cost expense was $ 2.0 million, $ 1.4 million, and $ 2.1 million, respectively.

The increase in the warranty liability balance at December 31, 2025, and the warranty claims and product repair expense for the year ended December 31, 2025, is due to the acquisition of VOXX.

The provision for income taxes is based on the earnings reported in the Consolidated Financial Statements.

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Such deferred income tax asset and liability computations are based on enacted tax laws and rates.

A valuation allowance is established whenever management determines that it is more likely than not that some portion or all of the deferred tax assets will not be realized.

The Company applies the provisions of ASC 740, Income Taxes , as it relates to uncertainty in income taxes recognized in the Company’s Consolidated Financial Statements.

A threshold of more likely than not to be sustained upon examination is applied to uncertain tax positions.

The Company deems the estimates related to this

The Company deems the estimates related to this provision to be reasonable, however, no assurance can be given that the final outcome of these matters will not vary from what is reflected in the historical income tax provisions and accruals.

The Company accounts for operating leases in accordance with ASC Topic 842, Leases .

The Company determines whether an arrangement is a lease at inception.

This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly, or implicitly, for a period of time in exchange for consideration.

Control of an underlying asset is conveyed if the Company obtains the rights to direct the use of, and to obtain substantially all of the economic benefit from, the use of the underlying asset.

Some of the Company's leases include both lease and non-lease components, which are accounted for as a single lease component, as the Company has elected the practical expedient in ASC 842-10-15-37.

Some of the Company's operating lease agreements include variable lease costs, including taxes, common area maintenance, or increases in rental costs related to inflation.

Such variable payments, other than those dependent upon a market index or rate, are expensed when the obligation for those payments is incurred.

Lease expense is recorded in operating expenses in the Consolidated Statements of Income.

The Company's lease agreements do not currently contain any material residual value guarantees or material restrictive covenants.

Leases with an initial term of 12 months or less, which do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise, are considered short term leases and are not recorded on the balance sheet.

The Company had no short-term leases during the year ended December 31, 2025.

Right-of-use assets and lease liabilities are recognized at each lease’s commencement date based on the present value of its lease payments over its respective lease term.

When a borrowing rate is not explicitly available for a lease, the Company's incremental borrowing rate is used based on information available at

GENTEX CORPORATION AND SUBSIDIARIES

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(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

provision to be reasonable, however, no assurance can be given that the final outcome of these matters will not vary from what is reflected in the historical income tax provisions and accruals.

The Company has operating leases for corporate offices, warehouses, vehicles, and other equipment , which are included within " Patents and other assets " section of the Consolidated Balance Sheets.

The leases have remaining lease terms of 1 year to 5 years.

the lease’s commencement date to determine the present value of its lease payments.

Operating lease payments are recognized on a straight-line basis over the lease term.

The Company has operating leases for certain offices, warehouses, vehicles, and other equipment, which are included within Patents and other assets, net, on the accompanying Consolidated Balance Sheets.

The leases have remaining lease terms of less than 1 year to 5 years, some of which include renewal options.

The Company considers these renewal options in determining the lease term to establish the right-of-use assets and lease liabilities when it is determined that it is reasonably certain that the renewal options will be exercised.

The weighted average remaining lease term for operating leases as of December 31, 2025 was 3 years, with a weighted average discount rate of 4.7 %.

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2027 2,358,838

2028 1,847,578

Thereafter 70,622

Total future minimum lease payments $ 9,144,314

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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.

The following table sets forth the computation of basic and diluted net income per common share under the two-class method for each of the last three years:

In applying the two-class method, net income is allocated to both common shares and participating securities based on

GENTEX CORPORATION AND SUBSIDIARIES

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(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

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 each of the last three years:

2025 2024 2023

Basic Earnings Per Share

Net Income $ 404,487,743 $ 428,403,272 $ 318,757,352

Basic Earnings Per Share Attributable to Gentex Corporation

Net Income Attributable to Gentex Corporation

$ 384,841,367 $ 404,487,743 $ 428,403,272

Allocated to participating securities 5,713,110 5,613,957 6,352,424

1 unchanged sentence

Basic weighted average shares outstanding 217,834,174 225,710,698 229,405,479

Net Income per share - Basic $ 1.77 $ 1.84 $ 1.36

Diluted Earnings Per Share

Net Income Per Share Attributable to Gentex Corporation - Basic

$ 1.74 $ 1.77 $ 1.84

Diluted Earnings Per Share Attributable to Gentex Corporation

Allocation of Net Income used in basic computation $ 379,128,257 $ 398,873,786 $ 422,050,848

4 unchanged sentences

Diluted weighted average shares outstanding 217,848,653 226,023,482 229,720,198

Net income per share — Diluted $ 1.76 $ 1.84 $ 1.36

Net Income Per Share Attributable to Gentex Corporation — Diluted

$ 1.74 $ 1.76 $ 1.84

For the years ended December 31, 2025, 2024 and 2023, 2,913,014 shares, 1,579,559 shares, and 1,441,812 shares, respectively, related to stock option plans were not included in diluted average common shares outstanding because they were anti-dilutive.

1 unchanged sentence

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 available for sale investments and foreign currency translation adjustments that are further detailed in Note 9 , "Comprehensive Income", for more information.

For the Company, comprehensive income represents net income adjusted for unrealized gains and losses on available for sale investments, derivatives, and foreign currency translation adjustments that are further detailed in Note 8 , "Comprehensive Income" .

Foreign Currency Translation

The financial position and results of operations of the Company’s foreign subsidiaries are measured using the local currency as the functional currency.

Assets and liabilities are translated at the exchange rate in effect at year-end.

Income statement accounts are translated at the average rate of exchange in effect during the year.

Assets and liabilities of the Company's foreign subsidiaries whose cash flows are primarily in local currencies have been translated at rates of exchange at year-end or historical exchange rates, as appropriate in accordance with ASC 830, " Foreign Currency Matters " ("ASC 830").

Revenues and expenses have been translated at the weighted-average rates of exchange in effect during the year.

The resulting translation adjustment is recorded as a separate component of shareholders’ investment.

Gains and losses arising from re-measuring foreign currency transactions into the appropriate currency are included in the determination of net income.

Gains and losses arising from re-measuring foreign currency transactions into the appropriate currency are included in the

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

determination of Net Income and were not significant during the years ended December 31, 2025, 2024 and 2023.

Stock-Based Compensation Plans

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These assumptions include estimating (a) the length of time employees will retain their vested stock options before exercising them (“expected term”), (b) the volatility of the Company’s common stock price over the expected term, (c) the number of options that will ultimately not complete their vesting requirements (“forfeitures”), and (d) expected dividends.

Changes in the assumptions can materially

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

affect the estimate of fair value of stock-based compensation and consequently, the related amounts recognized on the consolidated statements of operations.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results could differ from those estimates.

Reclassifications

Certain prior year amounts have been reclassified to conform to current year presentation.

Changes in the assumptions can materially affect the estimate of fair value of stock-based compensation and consequently, the related amounts recognized on the Consolidated Statements of Operations.

Recent Accounting Standards

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No.

2023-07, Improvements to Reportable Segment Disclosures .

This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss.

This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources.

The Company adopted ASU No.

2023-07 during the year ended December 31, 2024.

See Note 7 , "Segment Reporting" in the accompanying notes to the consolidated financial statements for further detail.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures .

Under this ASU, public benefit entities must annually “(1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate).” This ASU is effective on a prospective basis for the Company in the fiscal year ending December 31, 2025.

This ASU will result in additional disclosures being included in the consolidated financial statements once adopted.

Under this ASU, public business entities must annually “(1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate).” This ASU is effective on a prospective basis.

The Company adopted ASU No.

2023-09 for the year ended December 31, 2025, on a prospective basis, and required changes are reflected in Note 3 , " Income Taxes " in the accompanying notes to the Consolidated Financial Statements.

The adoption of ASU 2023-09 did not have a material impact on the Company's consolidated financial statements.

In March 2024, the Securities and Exchange Commission ("SEC") issued final climate disclosure rules.

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On April 4, 2024, the SEC exercised its discretion to voluntarily stay the effective date of the final rules pending completion of certain judicial review.

The SEC recently signaled that it may not move forward with these rules.

The Company continues to evaluate the impact of adopting these rules and to monitor the status of the related legal challenges and position of the SEC with respect to the foregoing.

In 2025, the SEC withdrew its defense of the climate disclosure rules and litigation has been held in abeyance until the SEC decides how to proceed.

Though compliance with such rules is not currently required, the Company continues to evaluate the potential impact of compliance, as well as compliance with similar rules of other jurisdictions.

In November 2024, the FASB issued ASU No.

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The guidance is effective for fiscal years beginning after December 15, 2026, with early adoption permitted, and may be applied retrospectively.

The Company is currently evaluating the impact of adopting the new ASU on our consolidated financial statements and related disclosures.

The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements and related disclosures.

In January 2025, the FASB issued ASU No.

2025-01, " Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date ." This ASU amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.

In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810):

Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity ("VIE") , which provides clarifying guidance on determining the accounting acquirer in certain transactions involving VIE's.

The update aims to improve consistency and comparability in financial reporting.

The guidance will be effective for annual periods beginning after December 15, 2026, including interim periods within those

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

annual periods.

Early adoption is permitted.

Upon adoption, the guidance will be applied prospectively.

The Company is currently evaluating the provisions of the guidance and the impact on its Consolidated Financial Statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets , which introduces a practical expedient for the application of the current expected credit loss model to current accounts receivable and contract assets in which all entities can assume that current conditions as of the balance sheet date do not change for the remaining life of the assets.

This ASU is effective for annual periods beginning after December 15, 2025, and interim periods within those annual reporting periods.

Early adoption is permitted.

The Company is currently evaluating the impact that the adoption of this standard will have on its Consolidated Financial Statements and disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software .

This ASU updates the cost capitalization threshold for internal-use software development costs by removing all references to software project development stages and providing new guidance on how to evaluate whether the probable-to-complete recognition threshold has been met.

ASU 2025-06, which can be applied prospectively, retrospectively, or with a modified transition approach, is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods.

Early adoption is permitted.

The Company is currently evaluating the impact that the adoption of this standard will have on its Consolidated Financial Statements and disclosures.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements ("ASU 2025-11").

This ASU enhances consistency in interim reporting for all entities by clarifying interim disclosure requirements and the form and content of interim financial statements in accordance with GAAP.

ASU 2025-11, which can be applied prospectively or retrospectively to any and all prior periods presented in the financial statements, is effective for the interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

The Company is currently evaluating the impact that the adoption of this standard will have on its Consolidated Financial Statements and related disclosures.

(2) 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 million ("Revolver") that matures on February 21, 2026, replacing in its entirety the Company's above referenced prior $ 150.0 million revolving credit facility, which would have otherwise matured on October 15, 2023.

In 2018, the Company entered into a credit agreement with PNC as the administrative agent and sole lender, which has been amended and restated as discussed below.

In 2023, as previously disclosed, the Company entered into an amended and restated credit agreement ("Credit Agreement") that provided for, among other things, a three-year unsecured revolving credit facility with a borrowing capacity of up to $ 250.0 million ("Revolver").

Included in the Revolver is a $ 20.0 million sublimit for standby letters of credit and a $ 35.0 million sublimit for swingline loans, each subject to certain conditions.

Funds are available under the Revolver for working capital, capital expenditures, and other lawful corporate purposes, including, but not limited to, acquisitions and common stock repurchases, subject in each case to compliance with certain financial covenants, as defined in the Credit Agreement.

The obligations of the Company under the Credit Agreement are not secured, but are subject to certain covenants.

As of December 31, 2024, there was no outstanding balances on the Revolver and as of December 31, 2023 there was no outstanding balance under the prior revolving credit facility.

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

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

On October 2, 2025, as previously disclosed, the Company, in the ordinary course of business, amended the Credit Agreement, increasing the borrowing capacity of the Revolver to $ 350.0 million, and extending the maturity date three years through October 1, 2028, which would have otherwise matured on February 21, 2026.

All other sub-limits under the amended Credit Agreement remain the same.

The obligations of the Company under the amended Credit Agreement are not secured, but are subject to certain covenants.

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

As of December 31, 2025 and 2024, there was no balance outstanding on the Revolver.

As of December 31, 2025, the Company was in compliance with all covenants under the Credit Agreement.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company's subsidiary, VOXX, which was acquired on April 1, 2025 (see Note 1 1 , "Acquisitions" ), has a loan agreement with the shareholders of its joint venture in Onkyo).

The loan balance outstanding at December 31, 2025, was $ 3.8 million and is included in Short-term debt on the accompanying Consolidated Balance Sheet, representing the portion of the loan payable to the joint venture partner.

All amounts outstanding under the loan will mature and become payable on September 8, 2031.

The loan may be prepaid subject to the approval of the board of directors of the joint venture and must be repaid if either a put or call option is exercised in accordance with the joint venture agreement.

The rate of interest for the shareholder loan is 2.5 % and the loan is secured by a second priority lien on all assets of Onkyo.

(3) INCOME TAXES

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The Company recognizes deferred income tax liabilities and assets for the expected future tax consequences of events that have been included in the Consolidated Financial Statements or tax returns.

Under this method, deferred income tax liabilities and assets are determined based on the cumulative temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates expected to be applied to taxable income in years which those temporary differences are expected to be recovered or settled.

Under this method, deferred income tax liabilities and assets are determined based on the cumulative temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates expected to be applied to taxable income in years in which those temporary differences are expected to be recovered or settled.

Deferred income tax expense is measured by the net change in deferred income tax assets and liabilities during the year.

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Provision for income taxes $ 76,380,338 $ 67,725,940 $ 76,577,902

The effective income tax rates are different from the statutory federal income tax rates for the following reasons:

GENTEX CORPORATION AND SUBSIDIARIES

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(3) INCOME TAXES, continued

The effective income tax rates are different from the statutory federal income tax rates for the following reasons:

Year ended December 31, 2025

federal statutory tax rate

$ 96,823,107 21.0 %

State and local income taxes, net of federal income tax effect (a)

4,235,953 0.9

Foreign tax effects

2,191,985 0.5

Effect of changes in tax laws or rates enacted in the current period

Effect of cross-border tax laws:

Foreign-derived intangible income

( 18,785,189 ) ( 4.1 )

Research and development tax credits

( 8,620,897 ) ( 1.9 )

( 2,491,033 ) ( 0.5 )

Changes in valuation allowance

Nontaxable or nondeductible items

3,527,252 0.8

Changes in unrecognized tax benefits

( 954,278 ) ( 0.2 )

Other adjustments

Total income tax expense

$ 76,380,338 16.6 %

(a) State taxes in Michigan and Indiana made up the majority of the tax effect in this category.

Year ended December 31,

Statutory federal income tax rate 21.0 % 21.0 %

1 unchanged sentence

Research tax credit ( 1.8 ) ( 1.3 )

(Decrease) Increase in reserve for uncertain tax provisions 0.2 — ( 0.2 )

Increase in reserve for uncertain tax provisions

Non-deductible executive compensation 0.3 0.1

5 unchanged sentences

Effective income tax rate 14.3 % 15.2 %

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(3) INCOME TAXES, continued

The tax effect of temporary differences which give rise to deferred income tax assets and liabilities at December 31, 2025 and 2024, are as follows:

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Stock based compensation 14,623,067 14,266,075

Excess tax over book depreciation 14,747,529 7,060,777

Excess book over tax depreciation

18,299,874 14,747,529

Tax carryforwards

41,607,290 1,807,536

Other 13,244,931 3,404,621

Valuation Allowance

( 20,431,445 ) —

Total deferred income tax assets $ 189,907,395 $ 126,027,367

4 unchanged sentences

Net deferred income taxes $ 107,429,670 $ 53,154,832

Net operating loss carryforwards with no expiration totaling $ 5.5 million are available to reduce future taxable earnings of certain domestic and foreign subsidiaries.

Income taxes paid in cash were approximately $ 86.2 million, $ 110.3 million, and $ 35.2 million in 2024, 2023 and 2022, respectively.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized.

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible and/or net operating loss carryforwards can be utilized.

The Company considers the level of historical taxable income, scheduled reversal of temporary differences, tax planning strategies, and projected future taxable income in determining whether a valuation allowance is warranted.

Significant weight is given to positive and negative evidence that is objectively verifiable.

The realizability of deferred tax assets is evaluated on a jurisdictional basis at each reporting date.

Accounting for income taxes requires that a valuation allowance be established when it is more likely than not that all or a portion of the deferred tax assets will not be realized.

In circumstances where there is sufficient negative evidence indicating that the deferred tax assets are not more likely than not realizable, the Company establishes a valuation allowance.

The valuation allowance on net deferred tax assets increased by $ 20.4 million during the year ended December 31, 2025.

As part of the Company’s acquisition of VOXX, the Company recognized deferred tax assets of $ 35.7 million, primarily related to net operating losses, tax credits, and deductible temporary differences, in accordance with ASC 805-740.

Based on available evidence at the acquisition date, the Company concluded that it was more-likely-than-not that a portion of these acquired deferred tax assets would not be realized and therefore recorded a valuation allowance of $ 20.2 million against the acquired deferred tax assets, related primarily to U.S.

foreign tax credits, Japan net operating loss carryforwards, and certain foreign deferred tax assets.

Other than as set forth above, during the year ended December 31, 2025, the Company recorded an increase to the valuation allowance of $ 0.2 million.

This change resulted from current year activity and was recorded to income tax expense.

Any further increase or reduction in the valuation allowance could have a favorable or unfavorable impact on the Company's income tax provision and, as a result, net income in the period in which such determination is made.

GENTEX CORPORATION AND SUBSIDIARIES

1 unchanged sentence

(3) INCOME TAXES, continued

2024 2023 2022

As of December 31, 2025, the Company had U.S.

federal net operating loss and federal tax credit carryforwards of $ 66.0 million and $ 7.0 million, respectively, as reported on its tax returns.

The federal tax credits will begin to expire in 2030 if not utilized.

The net operating loss carryforwards are indefinite-lived.

As of December 31, 2025, the Company had Japan net operating loss carryforwards of $ 30.0 million, as reported on its tax returns.

The Japan net operating loss will begin to expire in 2032 if not utilized.

In addition, the Company has various state net operating loss carryforwards and state tax credit carryforwards, as well as other foreign net operating loss carryforwards that expire in various years and amounts through tax year 2045, most of which have a valuation allowance applied against them as they are not likely to be utilized before expiration.

Utilization of the Company’s net operating loss and credit carryforwards may be subject to annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions.

Such an annual limitation could result in the expiration of the net operating loss and tax credit carryforwards before utilization.

The Company has determined that no significant limitation would be placed on the utilization of our net operating loss and tax credit carryforwards due to prior ownership changes or expirations.

Income taxes paid in cash during the year ended December 31, 2025 were as follows:

Total income taxes paid, net

Income taxes paid in cash were approximately $ 86.2 million, and $ 110.3 million during the years ended December 31, 2024 and 2023, respectively.

No individual U.S.

state or foreign jurisdiction exceeds 5% of total income taxes paid, net of refunds.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Beginning of year $ 5,798,000 $ 4,778,000 $ 4,630,000

Additions related to tax positions acquired in business combinations

4,244,000 — —

Additions based on tax positions related to the current year 1,451,000 1,350,000 1,046,000

3 unchanged sentences

End of year $ 9,982,000 $ 5,798,000 $ 4,778,000

If recognized, unrecognized tax benefits would affect the effective tax rate.

If recognized, $ 6.6 million of unrecognized tax benefits would affect the effective tax rate.

The Company recognizes interest and penalties related to unrecognized tax benefits through the provision for income taxes.

The Company has accrued approximately $ 444,000 , $ 365,000 , and $ 379,000 for interest as of December 31, 2024, 2023, and 2022, respectively.

Interest expensed during 2024, 2023 and 2022 was not considered significant.

The Company has accrued approximately $ 0.8 million, $ 0.4 million, and $ 0.4 million for interest as of December 31, 2025, 2024, and 2023, respectively.

Interest expensed during the years ended December 31, 2025, 2024 and 2023 was not considered significant.

The Company is also subject to periodic and routine audits in both domestic and foreign tax jurisdictions.

It is reasonably possible that the amounts of unrecognized tax benefits could change as a result of an audit, new positions taken on income tax returns, settlement of tax positions, and the closing of statute of limitations.

It is not expected that any change will be material to the Company’s consolidated financial statements.

It is not expected, however, that any such change will be material to the Company’s Consolidated Financial Statements.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(3) INCOME TAXES, continued

For the majority of tax jurisdictions, the Company is no longer subject to U.S.

4 unchanged sentences

The plan includes a provision for the Company to match a percentage of the employee’s contributions at a rate determined by the Company’s Board of Directors.

In 2024, 2023 and 2022 the Company’s contributions were approximately $ 14.9 million, $ 13.8 million, and $ 12.9 million, respectively.

The increases in the Company's matching contributions in 2024 and 2023 was due to increased wages and increased employee participation in the plan.

During the years ended December 31, 2025, 2024 and 2023 the Company’s contributions were approximately $ 16.1 million, $ 14.9 million, and $ 13.8 million, respectively.

The increase in the Company's matching contributions in 2025 was primarily due to increased employee participation in the plan as a result of the acquisition of VOXX on April 1, 2025 ( see Note 11, Acquisitions ) and the increase in contributions in 2024 was due to increased wages and increased employee participation in the plan.

The Gentex Corporation Non-Qualified Deferred Compensation Plan (the "Deferred Compensation Plan") is intended to enhance retirement savings among a select group of management or highly compensated employees who contribute significantly to the success of the Company.

13 unchanged sentences

The deferrals are held in a separate irrevocable rabbi trust ("the Rabbi Trust"), which has been established pursuant to the Deferred Compensation Plan.

The Rabbi Trust is intended to be used to hold funds,

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

including matching contributions.

The Rabbi Trust is intended to be used to hold funds, including matching contributions.

The assets of the trust are subject to the claims of the Company's creditors in the event that the Company becomes insolvent.

Consequently, the Rabbi Trust qualifies as a grantor trust for income tax purposes.

The Company also makes periodic payments into Company-owned life insurance policies held in this Rabbi Trust to fund the expected obligations arising under this plan.

At December 31, 2024, total assets held by the trustee were $ 13.7 million, which are recorded in Patents and other assets, net, with an associated liability of $ 13.9 million recorded in Other Non-Current Liabilities in the Company's consolidated balance sheets.

The $ 13.7 million of assets held by the trustee is invested in Company-owned life insurance policies, whose cash surrender value is equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policies.

The Company also makes periodic payments into Company-owned life insurance ("COLI") policies held in this Rabbi Trust to fund the expected obligations arising under this plan.

At December 31, 2025 and 2024, total assets held by the trustee were $ 17.7 million and $ 13.7 million, respectively, which are recorded in Patents and other assets, net, with an associated liability of $ 17.7 million and $ 13.9 million recorded in Other Non-Current Liabilities in the Company's Consolidated Balance Sheets at December 31, 2025 and 2024, respectively.

The assets held by the trustee are invested in COLI policies, whose cash surrender values are equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policies.

(5) STOCK-BASED COMPENSATION PLANS

2 unchanged sentences

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, restricted stock units, performance share awards and performance units, and other awards that are stock-based, cash-based or a combination of both.

a) employees;

and b) 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, restricted stock units,

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

3 unchanged sentences

The purpose of the 2019 Omnibus Plan is to attract and retain employees, officers, and directors of the Company and its subsidiaries and to motivate and provide such persons incentives and rewards for performance.

As of December 31, 2024, 30,663,754 shares (net of shares from canceled/expired options) have been issued under the 2019 Omnibus Plan, which includes stock options (at a set conversion rate), restricted shares, and performance share awards.

As of December 31, 2025, 35,874,930 shares (net of shares from canceled/expired options) have been issued under the 2019 Omnibus Plan, which includes stock options, restricted shares, and performance share awards (each at a set conversion rate).

Shares Granted Conversion Rate Total Shares Under 2019 Omnibus Plan

8 unchanged sentences

The options vest after one to five years , and expire after five to ten years .

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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:

15 unchanged sentences

Based on analysis of historical option exercise activity, the Company has determined that all employee groups exhibit similar exercise and post-vesting termination behavior.

As of December 31, 2024, there was $ 5,022,501 of unrecognized compensation cost related to stock option awards which is expected to be recognized over the remaining vesting periods, with a weighted-average period of 1.32 years.

Stock option expense for the years ended December 31, 2024, 2023 and 2022 was $ 5,070,620 , $ 6,095,854 , and $ 6,302,581 respectively.

As of December 31, 2025, there was $ 3.7 million of unrecognized compensation cost related to stock option awards which is expected to be recognized over the remaining vesting periods, with a weighted-average period of 0.83 years.

Stock option expense for the years ended December 31, 2025, 2024 and 2023 was $ 3.4 million, $ 5.1 million, and $ 6.1 million, respectively.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A summary of the status of the Company’s stock option plans at December 31, 2025, 2024 and 2023, and changes during the same periods are presented in the tables below.

13 unchanged sentences

Exercisable at End of Year 2,104 $ 29 1.8 years $ 3,625

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Contract Life Aggregate

5 unchanged sentences

Exercisable at End of Year 1,942 $ 29 2.3 years $ 8,916

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A summary of the status of the Company’s non-vested employee stock option activity for the years ended December 31, 2025, 2024, and 2023, are presented in the table below:

35 unchanged sentences

A summary of restricted share award activity, including award grants, vesting, and forfeitures for the years ended December 31, 2025, 2024, and 2023, are presented in the table below:

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2025 2024 2023

4 unchanged sentences

Nonvested, End of Year 3,398 3,174 3,378

As of December 31, 2024, there was unearned stock-based compensation of $ 53,315,524 associated with these restricted stock grants.

As of December 31, 2025, there was unearned stock-based compensation of $ 53.0 million associated with these restricted stock grants.

The unearned stock-based compensation related to these grants is being amortized to compensation expense over the applicable restriction periods.

Compensation expense related to restricted stock for the years ended December 31, 2024, 2023, and 2022 was $ 25,819,690 , $ 24,809,834 , and $ 21,773,179 respectively.

Compensation expense related to restricted stock for the years ended December 31, 2025, 2024, and 2023 was $ 23.5 million , $ 25.8 million, and $ 24.8 million, respectively.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Performance Shares

3 unchanged sentences

The cumulative effect on current and prior periods of a change in expected attainment is recognized in the period of change.

As of December 31, 2024, the Company had unearned stock-based compensation of $ 11,767,729 associated with these performance share grants.

As of December 31, 2025, the Company had unearned stock-based compensation of $ 10.5 million 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 performance share grants for the years ended December 31, 2024, 2023, and 2022 was $ 5,884,030 , $ 5,882,458 , and $ 1,246,369 , 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").

Compensation expense related to performance share grants for the years ended December 31, 2025, 2024, and 2023 was $ 6.7 million, $ 5.9 million, and $ 5.9 million, 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 of Directors 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.

1 unchanged sentence

The grant date fair value of PSAs with TSR targets was determined using a Monte Carlo simulation.

Compensation expense related to these retention grants for the years ended December 31, 2024 and 2023 was $ 1,800,429 and $ 1,526,983 , respectively.

Compensation expense related to these retention grants for the years ended December 31, 2025, 2024, and 2023 was $ 1.9 million, $ 1.8 million, and $ 1.5 million, 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, which was approved by shareholders including amendments thereto.

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.

In May 2022, the 2022 Gentex Corporation Employee Stock Purchase Plan covering 2,000,000 shares of common stock was approved by shareholders, effective July 1, 2022.

Under such plans, the Company sold or sells shares at 85 % of the stock’s market price at the date of purchase.

In accordance with ASC 718, the 15 % discounted value is recognized as compensation expense.

Compensation expense related to the employee stock purchase plans for the years ended December 31, 2024, 2023, and 2022 was $ 964,594 , $ 882,294 , and $ 906,478 , respectively.

Compensation expense related to the employee stock purchase plans for the years ended December 31, 2025, 2024, and 2023 was $ 1.1 million, $ 1.0 million, and $ 0.9 million, respectively.

The following table summarizes shares sold to employees under the 2022 and prior plan in the years ended December 31, 2025, 2024, and 2023:

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Plan 2025 2024 2023 Cumulative Shares Issued Weighted Average Fair Value 2025

2022 Employee Stock Purchase Plan 297,771 201,032 194,241 693,044 $ 24.17

Prior Employee Stock Purchase Plan — — 126,101 1,624,122 $ —

(6) COMMITMENTS AND CONTINGENCIES

2 unchanged sentences

The Company does not believe, however, that at the current time there are matters that constitute material pending legal proceedings that will have a material adverse effect on the financial position, future results of operations, or cash flows of the Company.

On April 1, 2025, the Company completed its acquisition of VOXX (see Note 1 1 , "Acquisitions" ).

In connection with the acquisition, VOXX as acquired, maintained responsibility for certain legal matters and royalty audits.

These matters include legal proceedings in which VOXX was named a defendant prior to the acquisition date, as well as unasserted claims and other legal matters for which the underlying events or circumstances existed as of the acquisition date and for which a liability was required to be recognized under ASC 805, Business Combinations ("ASC 805").

As part of the purchase price allocation, pursuant to applicable guidance, the Company recorded provisional liabilities for these matters based on preliminary

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

estimates of their fair values as of the acquisition date.

During the fourth quarter of 2025, one of the legal proceedings was settled for an amount less than the related provisional liability.

Accordingly, during the measurement period, the Company adjusted the provisional liability to reflect the settlement amount, with a corresponding adjustment to goodwill.

The Company will continue to monitor the status of the remaining legal proceeding and royalty audits and adjust the provisional liabilities, as appropriate, as additional information becomes available or the matters are resolved.

Any adjustments to these provisional liabilities will be recorded as measurement period adjustments to the purchase price allocation, with a corresponding adjustment to goodwill.

Changes recognized after the measurement period will be reflected in earnings in the period in which the adjustment is identified.

(7) SEGMENT REPORTING

ASC 280, Segment Reporting, requires that a public enterprise report financial and descriptive information about its reportable operating segments subject to certain aggregation criteria and quantitative thresholds.

ASC 280, Segment Reporting, requires that a public business entity report financial and descriptive information about its reportable operating segments subject to certain aggregation criteria and quantitative thresholds.

Operating segments are defined by ASC 280 as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker ("CODM") in deciding how to allocate resources and in assessing performance.

The Company's CODM is its Chief Executive Officer.

The Company discloses segment information under two reportable segments, which are Automotive Products and Other.

The CODM evaluates performance and allocates resources based upon a number of factors, including the nature of the business, relevant industry, and profitability of the same, with the primary profit measure being income (loss) from operations of each segment.

The CODM uses this information to evaluate the profitability of the Company's reportable segments and make decisions on future business plans.

In connection with the acquisition of VOXX (see Note 1 1 , "Acquisitions" ), effective April 1, 2025, the Company reorganized its financial reporting into nine distinct operating segments based on its products and internal organizational structure.

These operating segments are disclosed by the Company under three reportable segments, which are Automotive Products, Premium Audio Products, and Other.

As there was no change to legacy operating segments of the Company or how the legacy operations are organized and evaluated by the CODM, the Company determined it was not necessary to recast its prior year segment presentation or perform goodwill impairment testing.

Automotive Products:

Automotive applications are the largest business segment for the Company, consisting of interior and exterior electrochromic automatic-dimming rearview mirrors and automotive electronics.

Automotive rearview mirrors and electronics accounted for approximately 98 % of the Company’s consolidated net sales in 2024.

The Other reportable segment includes the operating segments of Fire Protection, Dimmable Aircraft Windows, Nanofiber, Medical, and Biometrics.

These operating segments accounted for approximately 2 % of the Company's consolidated net sales in 2024.

The table below presents net sales and the significant expense categories that are included in reportable segment operating profit and regularly provided to our CODM:

Automotive products represent the Company's largest business segment, consisting of digital vision, connected car, and other automotive products and electronics which are developed and manufactured by the Company.

Products include:

interior and exterior electrochromic automatic-dimming rearview mirrors with and without electronic features;

non-auto dimming rearview mirrors with and without electronic features;

and other automotive electronics.

Automotive products accounted for approximately 89 % of the Company’s consolidated net sales for the year ended December 31, 2025, and 98 % in both of the years ended December 31, 2024 and 2023.

Premium Audio Products:

Established following the acquisition of VOXX, this segment designs, manufactures, markets, and distributes high quality audio equipment created to deliver superior sound quality and performance, including premium loudspeakers, architectural speakers, commercial and cinema speakers, outdoor speakers, wireless and Bluetooth speakers, A/V receivers, home theater systems, soundbars, and music streaming systems.

Premium Audio products accounted for approximately 6 % of the Company’s consolidated net sales for the year ended December 31, 2025.

There was no revenue attributed to this segment for the years ended December 31, 2024 and 2023, as the segment was created as a result of the Company's acquisition of VOXX on April 1, 2025.

The Other reportable segment includes the operating segments of Fire Protection, Dimmable Aircraft Windows, Nanofiber, Medical, Aftermarket Electronics, Consumer Electronics, and Biometrics.

These operating segments accounted for approximately 5 % of the Company's consolidated net sales for the year ended December 31, 2025, and 2 % in both of the years ended December 31, 2024, and 2023.

The segments share many common resources, infrastructures, and assets in the ordinary course of business.

Thus, the Company does not report assets or capital expenditures by segment to the CODM.

GENTEX CORPORATION AND SUBSIDIARIES

1 unchanged sentence

(7) SEGMENT REPORTING, continued

The table below presents net sales and the significant expense categories that are included in reportable segment operating profit and are regularly provided to our CODM:

2025 2024 2023

Automotive Products $ 2,255,904,839 $ 2,264,724,564 $ 2,254,660,291

Premium Audio Products 151,298,912 — —

Other 127,065,214 48,589,769 44,554,753

2 unchanged sentences

Automotive Products $ 1,470,553,673 $ 1,507,698,600 $ 1,506,237,606

Premium Audio Products 103,151,642 — —

Other 93,854,710 34,525,543 30,347,430

2 unchanged sentences

Automotive Products $ 294,353,858 $ 280,803,585 $ 252,771,985

Other 30,560,032 14,126,970 12,668,257

Total $ 311,363,617 $ 266,898,955 $ 239,808,059

Income (Loss) from Operations:

Automotive Products $ 476,222,379 $ 495,650,700 $ 372,490,748

Other ( 16,495,806 ) 80,353 ( 2,484,622 )

Total $ 459,726,573 $ 495,731,053 $ 370,006,126

Automotive Products $ 1,819,179,258 $ 1,782,342,705 $ 1,670,634,277

Premium Audio Products 39,847,169 — —

Other 58,572,159 30,560,032 14,126,970

Corporate 851,574,414 743,484,597 613,569,742

Total $ 392,773,186 $ 311,363,617 $ 266,898,955

1 unchanged sentence

Automotive Products $ 93,155,853 $ 87,207,822 $ 87,123,055

Premium Audio Products 287,581 — —

Other 4,402,321 2,724,978 1,231,061

1 unchanged sentence

Total $ 104,041,764 $ 94,714,662 $ 93,321,192

Capital Expenditures:

Income (Loss) from Operations:

Automotive Products $ 490,997,308 $ 476,222,379 $ 495,650,700

Premium Audio Products 8,300,101 — —

Other ( 25,361,655 ) ( 16,495,806 ) 80,353

Corporate 14,376,495 16,780,176 2,909,707

Total $ 473,935,754 $ 459,726,573 $ 495,731,053

Other includes Dimmable Aircraft Windows, Fire Protection Products, Nanofiber, Medical, and Biometrics.

Major product line revenues included within the Automotive Products segment are as follows:

2024 2023 2022

Automotive Products

Automotive Mirrors $ 2,145,847,699 $ 2,128,473,563 $ 1,742,196,401

HomeLink ® Modules*

118,876,865 126,186,728 132,546,057

Total Automotive Products $ 2,264,724,564 $ 2,254,660,291 $ 1,874,742,458

Other Products Revenue $ 48,589,769 $ 44,554,753 $ 44,215,585

Total Revenue $ 2,313,314,333 $ 2,299,215,044 $ 1,918,958,043

*Excludes HomeLink ® revenue integrated into automotive mirrors.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(7) SEGMENT REPORTING, continued

Corporate assets are principally cash and cash equivalents, investments, deferred income taxes and corporate fixed assets.

Depreciation & Amortization on corporate fixed assets are allocated as appropriate to the Automotive and Other segments when reviewing operating results.

Depreciation & Amortization on corporate fixed assets are allocated as appropriate to the Automotive Products, Premium Audio Products, and Other segments, when reviewing operating results.

Substantially all long-lived assets are located in the U.S.

Automotive Products revenues in the “Other countries” category are sales to customer automotive manufacturing plants in Korea, Canada, Hungary, China, and the United Kingdom, as well as other foreign automotive customers.

Most of the Company’s non-U.S.

sales are invoiced and paid in U.S.

During the years ended December 31, 2024, 2023 and 2022, approximately 7 %, 8 % and 7 % of the Company’s net sales were invoiced and paid in foreign currencies, respectively.

In 2024, the Company had three automotive customers (including direct sales to original equipment manufacturer ("OEM") customers and sales through their Tier 1 suppliers), which individually accounted for 10% or more of net sales as follows:

In 2025, the Company had three automotive customers (including direct sales to original equipment manufacturer ("OEM") customers and sales through their Tier 1 suppliers), which individually accounted for 10% or more of consolidated net sales as follows:

Toyota Motor Company Volkswagen Group General Motors

2 unchanged sentences

2023 18 % 14 % 10 %

(8) QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The following table sets forth selected financial information for all of the quarters during the years ended December 31, 2024 and 2023 (in thousands, except per share data):

First Second Third Fourth

2024 2023 2024 2023 2024 2023 2024 2023

Net Sales $ 590,225 $ 550,761 $ 572,926 $ 583,473 $ 608,526 $ 575,848 $ 541,638 $ 589,132

Gross Profit 202,238 174,737 188,563 193,083 204,064 191,441 176,226 203,369

Operating Income 129,346 113,251 114,884 127,289 125,728 122,417 89,768 132,774

Net Income 108,231 97,578 86,040 109,155 122,549 104,725 87,668 116,944

Earnings Per Share (Basic) (1)

$ 0.47 $ 0.42 $ 0.37 $ 0.47 $ 0.54 $ 0.45 $ 0.39 $ 0.50

Earnings Per Share (Diluted) (1)

$ 0.47 $ 0.42 $ 0.37 $ 0.47 $ 0.53 $ 0.45 $ 0.39 $ 0.50

(1) Basic and diluted earnings per share are computed independently for each quarter presented.

Therefore the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share.

(8) COMPREHENSIVE INCOME

Comprehensive income 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 available for sale investments and foreign currency translation adjustments.

For the Company,

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

comprehensive income represents net income adjusted for unrealized gains and losses on available for sale investments, derivative instruments, and foreign currency translation adjustments.

For the Years ended December 31,

2 unchanged sentences

Balance at beginning of period $ ( 5,817,736 ) $ ( 4,534,719 ) $ ( 4,032,239 )

Other comprehensive loss before reclassifications ( 1,283,017 ) ( 502,480 ) ( 4,952,828 )

Other comprehensive income (loss) before reclassifications

5,507,431 ( 1,283,017 ) ( 502,480 )

Net current-period change 5,507,431 ( 1,283,017 ) ( 502,480 )

2 unchanged sentences

Balance at beginning of period ( 591,605 ) ( 2,022,403 ) ( 10,110,695 )

Other comprehensive (loss) income before reclassifications ( 360,991 ) 3,360,396 ( 12,470,515 )

Other comprehensive income (loss) before reclassifications

1,828,177 ( 360,991 ) 3,360,396

Amounts reclassified from accumulated other comprehensive (loss) income 110,472 1,791,789 4,727,896

1 unchanged sentence

Balance at end of period 1,347,044 ( 591,605 ) ( 2,022,403 )

Unrealized (losses) gains on derivatives:

Balance at beginning of period — — —

Other comprehensive loss before reclassifications

( 835,602 ) — —

Amounts reclassified from accumulated other comprehensive loss

Net current-period change ( 768,985 ) — —

Balance at end of period ( 768,985 ) — —

Accumulated other comprehensive loss, end of period $ 267,754 $ ( 6,409,341 ) $ ( 6,557,122 )

1 unchanged sentence

Amounts in parentheses indicate debits.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents details of reclassifications from accumulated other comprehensive (loss) income for the years ended December 31, 2025, 2024, and 2023:

Details about Accumulated Other Comprehensive (Loss) Income Components

Affected Line item in the Statement of Consolidated Income

Details about Accumulated Other Comprehensive (Loss) Income Components Affected Line item in the Consolidated Statement of Income

For the Years ended December 31,

1 unchanged sentence

Unrealized (losses) gains on available-for-sale securities

Realized loss on sale of securities $ ( 2,268,087 ) $ ( 5,984,678 ) $ ( 1,712,867 ) Other loss, net

Realized loss on sale of securities $ ( 139,838 ) $ ( 2,268,087 ) $ ( 5,984,678 ) Other, net

Provision for income taxes 29,366 476,298 1,256,782 Provision for Income Taxes

Total reclassifications for the period $ ( 1,791,789 ) $ ( 4,727,896 ) $ ( 1,353,165 ) Net of tax

Reclassifications for the period related to available-for-sale securities, net of tax $ ( 110,472 ) $ ( 1,791,789 ) $ ( 4,727,896 )

Unrealized gains (losses) on derivatives

Realized loss on settlement of derivatives $ ( 98,619 ) $ — $ — Other, net

Provision for income taxes 32,002 — — Provision for Income Taxes

Reclassifications for the period related to derivatives, net of tax ( 66,617 ) $ — $ —

Total reclassifications for the period $ ( 177,089 ) $ ( 1,791,789 ) $ ( 4,727,896 )

GENTEX CORPORATION AND SUBSIDIARIES

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(9) GOODWILL AND INTANGIBLE ASSETS

The Company recorded Goodwill of:

$ 307.4 million related to the HomeLink ® acquisition in 2013;

$ 3.7 million as part of the acquisition of Vaporsens in 2020, which was determined to be fully impaired as part of the annual impairment analysis performed in 2024 (refer to Note 1, "Summary of Significant Accounting and Reporting Policies" ;

$ 0.2 million as part of the acquisition of Air-Craftglass Production BV ("Air-Craftglass") in 2020;

$ 1.0 million as part of the acquisition of Argil, Inc.

("Argil") in 2020;

$ 2.0 million as part of the acquisition of Guardian Optical Technologies ("Guardian") in 2021;

$ 26.7 million as part of the acquisition of eSight in 2023;

and $ 4.2 million as part of the acquisition of Galvaneyes, LLC ("Galvaneyes") in the fourth quarter of 2024.

Refer to Note 12, "Acquisitions" , for further information on the eSight and Galvaneyes acquisitions.

The carrying value of Goodwill as of December 31, 2024 and December 31, 2023 was $ 340.7 million and $ 340.1 million, respectively, as set forth in the table below.

Carrying Amount

Balance as of December 31, 2023 $ 340,105,631

Acquisitions 4,228,000

Divestitures —

The change in the carrying value of Goodwill is as follows:

December 31, 2025 December 31, 2024

Beginning of the period

$ 340,668,927 $ 340,105,631

Acquisitions (including measurement period adjustments) (see Note 1 1 )

16,542,992 4,228,000

Impairments — ( 3,664,704 )

Balance as of December 31, 2024 340,668,927

As of December 31, 2024, $ 31.2 million of goodwill was recorded within the Other segment as a result of the Air-Craftglass, eSight, and Galvaneyes acquisitions, and $ 309.5 million of goodwill was recorded within the Automotive segment.

End of the period

$ 357,211,919 $ 340,668,927

Gross carrying value

$ 360,876,623 $ 344,333,631

Accumulated impairment charges ( 3,664,704 ) ( 3,664,704 )

Net carrying value

$ 357,211,919 $ 340,668,927

December 31, 2025 December 31, 2024

Automotive Products

Beginning of the period $ 309,709,522 $ 309,709,522

Acquisitions (including measurement period adjustments)

Impairments — —

End of the period (1)

$ 309,709,522 $ 309,709,522

Premium Audio Products

Beginning of the period $ — $ —

Acquisitions (including measurement period adjustments) (see Note 11 )

Impairments — —

End of the period (1)

$ 12,713,758 $ —

Beginning of the period $ 30,959,405 $ 30,396,109

Acquisitions (including measurement period adjustments) (see Note 11 )

3,829,234 4,228,000

Impairments — ( 3,664,704 )

End of the period $ 34,788,639 $ 30,959,405

Gross carrying value $ 38,453,343 $ 34,624,109

Accumulated impairment charges ( 3,664,704 ) ( 3,664,704 )

Net carrying value $ 34,788,639 $ 30,959,405

(1) The gross carrying values of goodwill in the Automotive Products and Premium Audio Products segments are equal to their net carrying values as there have been no impairments of goodwill within these segments.

The Company's reporting units are its operating segments.

As of December 31, 2025, the reporting units that carried goodwill were the Company's Automotive Products, Premium Audio Products, Biometrics, and Medical operating segments.

The Company has three reportable segments:

Automotive Products, Premium Audio Products, and Other (see Note 7, "Segments" ).

At December 31, 2025, the Automotive Products segment comprised $ 309.7 million of the Company's goodwill balance, the Premium Audio Products segment comprised $ 12.7 million of the Company's goodwill balance, and the Other segment, which

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

includes the Biometrics and Medical operating segments, comprised $ 34.8 million of the Company's goodwill balance, respectively.

The Company reviews goodwill and IPR&D for impairment during the fourth quarter on an annual basis or more frequently if events or changes in circumstances indicate that goodwill might be impaired.

The Company performed a qualitative assessment (step 0) to determine whether it is more likely than not that a reporting unit or intangible asset's fair value is less than its carrying amount.

Based on this test, the Company determined that additional impairment testing was needed for the Nanofiber reporting unit, which is included within the Other segment, as a result of the timing to commercialization and costs to develop exceeding the original estimates at the acquisition date.

As a result of this testing, the Company recognized $ 3.7 million goodwill impairment and $ 5.2 million of IPR&D impairment during the year ended December 31, 2024, related to the acquisition of Vaporsens.

No impairment has been recognized on goodwill or IPR&D in prior periods.

Based on this assessment, during the year ended December 31, 2024, the Company determined that additional impairment testing was needed for the Nanofiber reporting unit, which is included within the Other segment, due to the timing to commercialization and costs to develop exceeding the original estimates at the acquisition date.

As a result of this testing, the Company recognized charges of $ 3.7 million related to goodwill impairment and $ 5.2 million related to IPR&D impairment during the year ended December 31, 2024 in connection with the acquisition of Vaporsens.

No impairment charges were recorded related to goodwill or IPR&D during the years ended December 31, 2025 or 2023.

The Company continuously monitors for events and circumstances that could negatively impact the key assumptions in determining fair value thus resulting in the need for interim 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 certain general industry, market and macro-economic conditions.

Other than as set forth above, no such events or circumstances that might negatively impact the key assumptions were observed in 2024 and, as such, nothing indicated the need for interim impairment testing.

The Intangible Assets and related change in carrying values are set forth in the table below as of December 31, 2024 and December 31, 2023.

Other than as set forth above, no such events or circumstances that might negatively impact the key assumptions were observed in calendar year 2025 and, as such, nothing indicated the need for interim impairment testing.

The Company's intangible assets and related changes in carrying values are set forth in the table below as of December 31, 2025 and December 31, 2024.

As of December 31, 2025:

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Other Intangible Assets Gross Accumulated Amortization Net Assumed Useful Life

6 unchanged sentences

BioCenturion Trade Names and Trademarks 640,000 ( 74,667 ) 565,333 10 years

BioCenturion Technology 2,300,000 — 2,300,000 12 years

eSight Technology 12,000,000 ( 1,166,667 ) 10,833,333 12 years

BioCenturion Developed Technology 2,300,000 ( 223,611 ) 2,076,389 12 years

eSight Developed Technology

12,000,000 ( 2,166,667 ) 9,833,333 12 years

eSight Trade Names and Trademarks 870,000 ( 157,083 ) 712,917 12 years

BioConnect Trade Names and Trademarks 874,320 ( 32,254 ) 842,066 12 years

BioConnect Developed Technology 5,465,061 ( 241,908 ) 5,223,153 12 years

BioConnect Customer Relationships 1,748,640 ( 77,411 ) 1,671,229 10 years

Vaporsens In-Process R&D 5,800,000 — 5,800,000 Indefinite

Argil In-Process R&D 6,278,132 — 6,278,132 Indefinite

Air-Craftglass In-Process R&D 1,507,778 — 1,507,778 Indefinite

Argil Developed Technology

6,278,132 ( 130,794 ) 6,147,338 12 years

Air-Craftglass Developed Technology

1,507,778 ( 125,649 ) 1,382,129 12 years

Guardian Trade Names 1,300,000 ( 162,500 ) 1,137,500 12 years

Guardian In-Process R&D 6,800,000 ( 283,333 ) 6,516,667 12 years

Guardian Developed Technology

6,800,000 ( 850,000 ) 5,950,000 12 years

Total other identifiable intangible assets $ 416,583,931 $ ( 227,242,544 ) $ 189,341,387

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2024:

6 unchanged sentences

Exclusive Licensing Agreement 96,000,000 — 96,000,000 Indefinite

eSight Technology 12,000,000 — 12,000,000 12 years

BioCenturion Trade Names and Trademarks 640,000 — 640,000 10 years

BioCenturion Developed Technology 2,300,000 — 2,300,000 12 years

eSight Developed Technology

12,000,000 ( 1,166,667 ) 10,833,333 12 years

eSight Trade Names and Trademarks 870,000 ( 84,583 ) 785,417 12 years

2 unchanged sentences

Air-Craftglass In-Process R&D 1,507,778 — 1,507,778 Indefinite

Guardian Trade Names 1,300,000 — 1,300,000 Indefinite

Guardian In-Process R&D 6,800,000 — 6,800,000 Indefinite

Guardian Trade Names 1,300,000 ( 54,167 ) 1,245,833 12 years

Guardian Developed Technology

6,800,000 ( 283,333 ) 6,516,667 12 years

Total other identifiable intangible assets $ 408,495,910 $ ( 213,338,750 ) $ 195,157,160

1 unchanged sentence

Amortization expense on patents and other intangible assets was approximately $ 15.3 million, $ 17.9 million, and $ 19.7 million in calendar years 2025, 2024 and 2023, respectively.

At December 31, 2024, patents had a weighted average amortized life of 9 years.

Excluding the impact of any future acquisitions, the Company anticipates amortization expense including patents and other intangible assets to be approximately:

$ 4.7 million for the year ended December 31, 2026;

and $ 3 million for each of the years ended December 31, 2026, December 31, 2027, December 31, 2028, and December 31, 2029.

$ 4.6 million for the year ended December 31, 2027, $ 4.5 million for the year ended December 31, 2028, and $ 4.4 million for each of the years ended December 31, 2029, and December 31, 2030.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table shows the Company’s Automotive and Other Products revenue disaggregated by geographical location for Automotive Products for the years ended December 31, 2024, 2023, and 2022:

The following table shows the Company’s Automotive Products, Premium Audio Products, and Other revenue disaggregated by geographical location for Automotive and Premium Audio Products for the years ended December 31, 2025, 2024, and 2023:

For the Years ended December 31,

2 unchanged sentences

$ 698,681,914 $ 643,769,161 $ 688,164,335

207,451,036 239,292,351 229,574,913

China 152,560,361 207,451,036 239,292,351

Germany 243,543,576 271,593,165 294,529,611

2 unchanged sentences

Republic of Korea 179,423,323 163,788,347 149,554,788

Other countries 423,069,936 420,752,213 417,165,173

Total Automotive Products $ 2,255,904,839 $ 2,264,724,564 $ 2,254,660,291

Premium Audio Products

$ 89,888,799 $ — $ —

Other countries 61,410,113 — —

Total Premium Audio Products $ 151,298,912 $ — $ —

Other $ 127,065,214 $ 48,589,769 $ 44,554,753

Total Automotive Products $ 2,264,724,564 $ 2,254,660,291 $ 1,874,742,458

Other Products (U.S.) 48,589,769 44,554,753 44,215,585

Total Revenue $ 2,534,268,965 $ 2,313,314,333 $ 2,299,215,044

1 unchanged sentence

exposure to local economic, political and labor conditions;

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.

global supply chain constraints;

unexpected changes in laws, regulations, trade, 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;

and tariffs, quotas, customs and other import or export restrictions and other trade barriers.

The following table disaggregates the Company’s Automotive and Other revenue by major source for the years ended December 31, 2024, 2023, and 2022:

labor strikes;

armed conflicts and acts of terrorism and war;

tariffs, counter-tariffs, quotas, customs and other import or export restrictions;

and other trade barriers.

Automotive Product revenue in the “Other countries” category primarily represents sales to customer automotive manufacturing plants in Canada, Hungary, and the United Kingdom, as well as other foreign automotive customers.

Premium Audio Product revenue in the "Other countries" category primarily represents sales to retail and commercial customers in Canada, China, Australia, France, and Germany, as well as other foreign customers.

Most of the Company’s non-U.S.

sales are invoiced and paid in U.S.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table disaggregates the Company’s Automotive Products, Premium Audio Products, and Other revenue by major source for the years ended December 31, 2025, 2024, and 2023:

For the Years Ended December 31,

Revenue 2025 2024 2023

Automotive Segment

Automotive Products

Automotive Mirrors & Electronics $ 2,136,143,081 $ 2,145,847,699 $ 2,128,473,563

1 unchanged sentence

Total Automotive Products $ 2,255,904,839 $ 2,264,724,564 $ 2,254,660,291

Other Segment

Premium Audio Products

Premium Speaker Products $ 106,978,237 $ — $ —

Premium Receiver Products 44,320,675 — —

Total Premium Audio Products $ 151,298,912 $ — $ —

Fire Protection Products $ 24,605,712 $ 26,845,936 $ 25,927,018

Windows Products 18,910,525 20,207,691 18,582,949

Nanofiber Products — — —

Medical 1,379,651 44,786 —

Medical Products 1,341,088 1,379,651 44,786

Aftermarket Electronic Products 53,754,501 — —

Consumer Electronic Products 22,217,679 — —

Biometrics 6,235,709 156,491 —

Total Other $ 127,065,214 $ 48,589,769 $ 44,554,753

Total Revenue $ 2,534,268,965 $ 2,313,314,333 $ 2,299,215,044

*HomeLink revenue related to HomeLink technology/functionality integrated into automotive mirrors, is included within the Automotive mirrors & electronics segment

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Revenue is recognized when obligations under the terms of a contract with the customer are satisfied.

9 unchanged sentences

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, Integrated Toll Module ® systems, and a wide variety of displays.

These electronic interior mirrors can also include additional electronic features such as compass, HomeLink ® , lighting assist and driver assist forward safety camera

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

systems, various lighting systems, various telematics systems, Integrated Toll Module ® systems, and a wide variety of displays.

The Company also ships interior non-automatic-dimming rearview mirrors with features.

2 unchanged sentences

The Company also manufactures exterior non-automatic-dimming rearview mirrors with similar electronic features as what is available in its automatic-dimming applications.

The Company manufactures other automotive electronics products both inside and outside of the rearview mirror through HomeLink ® applications in the vehicle including the rearview mirror, interior visor, overhead console, or center console.

Further, the Company manufactures other automotive electronics products both inside and outside of the rearview mirror through HomeLink ® applications in the vehicle including the rearview mirror, interior visor, overhead console, or center console.

The completion of the acquisition of VOXX in April 2025 added several other automotive OEM products to the Company's offerings, including:

automotive security, vehicle access, and remote start modules and systems;

mobile multi-media infotainment products and rear-seat entertainment products, including overhead, seat-back, and headrest systems;

360 camera applications;

interior lighting systems and solutions;

turn signal switches;

puddle lamps;

and harnesses (see Note 1 1 , "Acquisitions" ).

For the majority of automotive products, transfer of control and revenue recognition occurs when the Company ships the product from the manufacturing facility to the customer.

3 unchanged sentences

The Company's approach is to consider these adjustments to the contract price as variable consideration, which is estimated based on the then most likely price amount.

Payment terms on automotive part sales to customers range from 15 days to 90 days.

Estimated revenue is adjusted at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed.

2 unchanged sentences

For the majority of automotive products, transfer of control and revenue recognition occurs when the Company ships the product from the manufacturing facility to the customer.

Premium Audio Products Segment

In April 2025, the Company acquired all of VOXX, which operates in the automotive, consumer electronics, and biometrics industries (see Note 1 1 , "Acquisitions" ).

As a result of this acquisition, the Company designs, manufactures, distributes, and markets premium audio products, including loudspeakers, architectural speakers, commercial and cinema speakers, outdoor speakers, soundbars, wireless and Bluetooth speakers, A/V receivers, high performance 2 channel loudspeakers and electronics, high performance party speakers, home theater systems, business music systems, streaming music systems, and Bluetooth ® headphones and earbuds.

Transfer of control and revenue recognition for premium audio products generally occurs when the Company ships the product from the manufacturing or distribution facility to the customer.

For any shipments of product that may be subject to discounts, rebates, or other sales incentives, the Company records revenue based on the Company’s best estimate of the amount of consideration to which the entity will be entitled in exchange for transferring the promised goods to the customer.

The Company's best estimate requires significant judgment based on historical results and expected outcomes of customer buying.

The Company's approach is to consider these adjustments to the customer's purchase order price as variable consideration, which is estimated based on the then most likely price amount.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Estimated revenue is adjusted at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed.

Other Segment

2 unchanged sentences

For dimmable aircraft windows, transfer of control and revenue recognition occurs when the Company ships the product from the manufacturing facility to the customer.

Payment terms on dimmable aircraft window sales range from 30 days to 45 days.

Fire Protection Technologies

1 unchanged sentence

For fire protection parts, transfer of control and revenue recognition occurs when the Company ships the product from the manufacturing facility to the customer.

Payment terms on fire protection part sales to customers range from 30 days to 75 days.

The Company acquired Vaporsens in early 2020, which specializes in nanofiber chemical sensing research and development.

Vaporsens is primarily involved with research and development of technology related to nanofibers sensing a variety of chemicals and/or compounds.

In 2020 the Company unveiled an innovative lighting technology for medical applications that was co-developed with Mayo Clinic.

This new lighting concept represents the collaboration of a global, high-technology electronics company with a world leader in health care.

The Company's new intelligent lighting system combines ambient room lighting with camera-controlled, adaptive task lighting to optimize illumination for surgical and patient-care environments.

The Company's acquired Vaporsens in 2020, which specializes in nanofiber chemical sensing research and development, is primarily involved with research and development of technology related to nanofiber, sensing a variety of chemicals and/or compounds.

The Company's Medical segment includes as innovative lighting technology for medical applications that was co-developed with Mayo Clinic.

This lighting concept represents the collaboration of a global, high-technology electronics company with a world leader in health care.

The Company's 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.

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.

The Company continues to further develop and work on the intelligent medical lighting system in order to assess system performance and work toward obtaining necessary approvals.

In November 2023, the Company acquired certain technology assets from eSight for approximately $ 18.9 million in cash, in addition to the 20 % equity the Company previously held, as well as an earn out provision.

1 unchanged sentence

Refer to Note 1 1 , "Acquisitions" , for further information.

In November 2024, the Company acquired GalvanEyes, LLC, which is the managing partner and 50 % owner of the BioCenturion joint venture with Eyelock, a subsidiary of VOXX.

Aftermarket Electronics

As previously disclosed, VOXX was acquired on April 1, 2025 and operates in the automotive, consumer electronics, and biometrics industries.

VOXX distributes and markets certain automotive products that are not manufactured by VOXX and are sold in the automotive aftermarket sector, including:

automotive security, vehicle access, and remote start modules and systems;

mobile multi-media infotainment products and rear-seat entertainment products, including overhead, seat-back, and headrest systems;

rear observation and collision avoidance systems/blind spot sensors/automotive sensing and camera systems/driver distraction products;

distribution of satellite radios, including plug and play models and direct connect models;

cruise control systems;

heated seats;

security and shock sensors;

and harnesses.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

aftermarket electronic products are manufactured by the Company.

Transfer of control and revenue recognition occurs when the Company ships the product from the distribution facility to the customer.

Refer to Note 11, "Acquisitions" , for further information.

Consumer Electronics

VOXX also distributes and markets consumer electronic products and accessories, including:

wireless and Bluetooth ® speakers;

A/V receivers;

on-ear and in-ear headphones;

wired, wireless, and Bluetooth headphones and ear buds;

solar power systems and solar accessories;

solar lights;

High-Definition Television antennas ("HDTV");

High-Definition Multimedia Interface ("HDMI") accessories;

fiber optic accessories;

battery storages;

satellite dishes;

low noise converters;

multiswitches;

remote controls;

home electronic accessories, such as cabling, power cords, mice, keyboards, gaming accessories, and other connectivity products;

power supply systems and charging products;

and set-top boxes.

These consumer electronic products and accessories are not manufactured by the Company.

Transfer of control and revenue recognition occurs when the Company ships the product from the distribution facility to the customer.

Refer to Note 11, "Acquisitions" , for further information.

In November 2024, the Company acquired GalvanEyes, LLC ("GalvanEyes"), which is the managing partner and 50 % owner of the BioCenturion LLC ("BioCenturion") joint venture with EyeLock LLC ("EyeLock"), a subsidiary of VOXX.

BioCenturion specializes in creating and deploying authentication solutions to help clients secure their worlds, optimize their workload, and organize their data through customized biometric solutions.

The Company's acquisition of VOXX resulted in the Company obtaining all remaining access to the EyeLock technology.

In July 2025, The Company acquired BioConnect Inc.

("BioConnect"), a multi-modal biometric authentication platform provider for access control.

Refer to Note 1 1 , "Acquisitions" , for further information.

(11) ACQUISITIONS

On July 1, 2025, in the ordinary course of business, the Company completed its acquisition of BioConnect, for a purchase price of $ 13.0 million, subject to adjustment for working capital plus related transaction fees and expenses.

BioConnect is a leader in biometric authentication solutions, providing a multi-modal authentication platform for security and access control.

The Company intends to utilize the acquisition to expand its reach in the biometric industry.

The acquisition was accounted for under the acquisition method of accounting pursuant to ASC 805, and accordingly, the results of operations and cash flows for BioConnect have been included in the Company's Consolidated Financial Statements since July 1, 2025.

BioConnect's results of operations are included within the Company's Biometrics operating segment, which is presented within its Other reportable segment.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(12) ACQUISITIONS

The following summarizes the preliminary allocation of the BioConnect purchase price based on the fair value of the assets acquired and liabilities assumed, as of July 1, 2025:

July 1, 2025 Measurement Period Adjustments July 1, 2025 (as adjusted)

Total Consideration:

Cash paid $ 12,996,275 $ — $ 12,996,275

cash acquired ( 113,545 ) — ( 113,545 )

Total transaction consideration, net $ 12,882,730 $ — $ 12,882,730

Preliminary Allocation:

Assets acquired

Accounts receivable $ 1,836,809 — $ 1,836,809

Inventory 1,176,471 — 1,176,471

Prepaid expenses and other current assets 111,143 — 111,143

Property, plant, and equipment 63,866 — 63,866

Trade names and trademarks 882,353 — 882,353

Developed technology 6,617,647 ( 1,102,941 ) 5,514,706

Customer relationships 1,764,706 — 1,764,706

Goodwill 3,399,491 429,743 3,829,234

Deferred tax asset

— 673,198 673,198

Total assets acquired, excluding cash 15,852,486 — 15,852,486

Liabilities assumed:

Accounts payable 603,234 — 603,234

Accrued expenses and other current liabilities 369,074 — 369,074

Other liabilities 1,997,448 — 1,997,448

Total liabilities assumed 2,969,756 — 2,969,756

Net assets acquired, excluding cash $ 12,882,730 $ — $ 12,882,730

The preliminary fair values of the assets acquired were estimated with the assistance of a third-party valuation expert.

The purchase price allocation above is preliminary.

The Company is in the process of refining the valuation of acquired assets and assumed liabilities, including net working capital and intangible assets, and expects to finalize the purchase price allocation no later than one year after the acquisition date, which is July 1, 2026, in accordance with applicable guidance.

Finalization of the valuation of assets acquired during the measurement period could result in significant changes in the amounts recorded for the acquisition date fair value of the same.

The Company recorded net measurement period adjustments increasing goodwill $ 0.4 million during the year ended December 31, 2025 relating primarily to the revised fair value estimates of developed technology and deferred tax assets.

The goodwill recognized in this acquisition is primarily attributable to the assembled workforce and expected synergies from the integration of the acquired business.

All of the goodwill acquired in connection with the BioConnect acquisition has been allocated to the Company's biometrics business.

None of the goodwill from the BioConnect acquisitions is deductible for tax purposes.

Net sales attributable to BioConnect in the Company's Consolidated Statement of Income for the year ended December 31, 2025, were $ 4.5 million.

The net loss attributable to BioConnect for the year ended December 31, 2025, was $ 0.2 million.

During the year ended December 31, 2025, the Company incurred $ 0.4 million in acquisition costs related to the BioConnect acquisition, which has been expensed as incurred in the "Selling, general & administrative" section of its Consolidated Statement of Income.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

VOXX International Corporation

On April 1, 2025 (the "Closing Date"), the Company completed its acquisition of VOXX pursuant to the previously announced Merger Agreement.

Pursuant to the terms and conditions set forth in the Merger Agreement, the Company acquired all of the issued and outstanding shares of VOXX common stock not already owned by the Company for a purchase price of $ 7.50 per share, resulting in VOXX becoming a wholly owned subsidiary of the Company as of the Closing Date.

Cash consideration totaling $ 148.3 million was paid by the Company on the Closing Date using cash on hand.

The acquisition was accounted for under the acquisition method of accounting pursuant to ASC 805, and accordingly, the results of operations and cash flows for VOXX have been included in the Company's Consolidated Financial Statements since the Closing Date.

Prior to obtaining a controlling interest in VOXX, the Company owned 6,463,808 shares of VOXX Class A Common Stock, or approximately 29 %, and accounted for this investment as an equity method investment, as the Company had the ability to exercise significant influence, but not control, over VOXX (see Note 1, " Summary of Significant Accounting and Reporting Policies - Investments" ).

The acquisition transaction was accounted for as a business combination achieved in stages, or a step-acquisition, pursuant to ASC 805 and, as such, the Company was required to remeasure its preexisting equity interest in VOXX immediately prior to the completion of the acquisition to its estimated fair value of $ 48.5 million using the $ 7.50 per share acquisition price to determine the fair value of the equity investment.

As the Company previously recorded changes in fair value of the equity method investment in Investment (loss) income, net, in the Consolidated Statements of Income each reporting period, the fair value of the investment on the Closing Date was equal to the fair value of the investment on March 31, 2025, the date immediately prior to the acquisition, and no additional gain or loss was recorded on the Closing Date.

VOXX is a leading manufacturer and distributor of automotive OEM and aftermarket electronics, and consumer technologies for the global markets, as well as premium audio solutions through world-renowned brands such as Klipsch ® , Onkyo ® , and Integra ® .

The merger also included EyeLock ® , a majority-owned subsidiary of VOXX, which holds iris biometric technology through its 50 % ownership interest in the BioCenturion joint venture.

This additional interest in BioCenturion was acquired by the Company in a separate transaction as discussed below.

The acquisition of VOXX is a strategic addition to the Company's portfolio of products, as VOXX's product lines will both compliment the Company's existing businesses and help the Company continue to expand in the consumer technology and connected home space.

The Company has also gained all access to the EyeLock ® iris biometric technology, which will provide further product applications in the Company's existing automotive, aerospace, and medical markets.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following summarizes the preliminary allocation of the purchase price based on the fair value of the assets acquired and liabilities assumed, as of the Closing Date.

The fair value of the Class A Common Stock acquired through this step acquisition is included in the totals presented below:

April 1, 2025 Measurement Period Adjustments April 1, 2025 (as adjusted)

Total Consideration:

Cash paid $ 148,256,998 $ — $ 148,256,998

cash acquired ( 9,077,136 ) — ( 9,077,136 )

Total cash paid, net 139,179,862 — 139,179,862

Fair value of previously held investment in VOXX 48,478,560 — 48,478,560

Total transaction consideration, net $ 187,658,422 $ — $ 187,658,422

Preliminary Allocation:

Assets acquired

Accounts receivable $ 56,719,726 $ — $ 56,719,726

Inventory 96,718,000 — 96,718,000

Prepaid expenses and other current assets 20,294,973 136,567 20,431,540

Income tax recoverable 5,243,038 ( 962,335 ) 4,280,703

Property, plant, and equipment 44,977,000 — 44,977,000

Equity investment 19,000,000 — 19,000,000

Deferred tax asset 32,537,099 3,173,300 35,710,399

Goodwill — 12,713,758 12,713,758

Operating lease, right of use assets 5,404,163 — 5,404,163

Other assets 3,445,075 — 3,445,075

Total assets acquired, excluding cash 284,339,074 15,061,290 299,400,364

Liabilities assumed:

Accounts payable 31,347,556 ( 251,301 ) 31,096,255

Accrued expenses and other current liabilities 51,772,746 14,922,113 66,694,859

Income taxes payable 684,033 390,478 1,074,511

Debt 3,909,290 — 3,909,290

Other tax liabilities 791,593 — 791,593

Operating lease liabilities 3,435,604 — 3,435,604

Other liabilities 1,260,830 — 1,260,830

Total liabilities assumed 93,201,652 15,061,290 108,262,942

Redeemable and non-redeemable non-controlling interests in consolidated subsidiaries 3,479,000 — 3,479,000

Net assets acquired, excluding cash $ 187,658,422 $ — $ 187,658,422

The preliminary fair values of the assets acquired were estimated with the assistance of a third-party valuation expert.

The purchase price allocation above is preliminary.

The Company is in the process of refining the valuation of acquired assets and assumed liabilities, including net working capital, real property, equity method investments, and non-controlling interests, and expects to finalize the purchase price allocation no later than one year after the acquisition date, which is April 1, 2026, in accordance with applicable guidance.

Finalization of the valuation of acquired assets and liabilities assumed during the

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

measurement period could result in significant changes in the amounts recorded for the acquisition date fair value of the same.

The Company recorded net measurement period adjustments increasing goodwill $ 12.7 million during the year ended December 31, 2025, relating primarily to the revised fair value estimates of liabilities for certain legal contingencies, employee compensation, royalties payable, and income taxes.

The goodwill recognized in this acquisition was attributable to the assembled workforce, expected synergies, and expanded market opportunities, none of which qualify for recognition as a separate intangible asset.

All of the goodwill acquired in connection with the VOXX acquisition has been allocated to the Company's Premium Audio Products business.

$ 2.9 million of the goodwill recognized in the VOXX acquisition is deductible for tax purposes.

Net sales attributable to VOXX in the Company's Consolidated Statement of Income for the year ended December 31, 2025 were $ 267.2 million.

Net income attributable to VOXX for the year ended December 31, 2025 was $ 6.1 million.

During the years ended December 31, 2025 and 2024, the Company incurred $ 3.4 million and $ 1.9 million, respectively, in acquisition costs related to the VOXX acquisition, which has been expensed as incurred in the "Selling, general & administrative" section of its Consolidated Statements of Income.

VOXX's results of operations are included in the Consolidated Financial Statements of the Company within the Automotive, Premium Audio, and Other reportable segments, as appropriate.

The non-controlling interests included in the net assets acquired in the transaction were comprised of a redeemable non-controlling interest in VOXX's Onkyo subsidiary, and a non-redeemable non-controlling interest in its EyeLock® subsidiary.

In conjunction with VOXX's acquisition of Onkyo, a joint venture was formed between VOXX's wholly-owned Premium Audio Company ("PAC") subsidiary and its partner Sharp Corporation ("Sharp").

PAC owns 77.2 % of the joint venture and has an 85.1 % voting interest, and Sharp owns 22.8 % of the joint venture and has a 14.9 % voting interest.

The joint venture agreement between PAC and Sharp contains a put/call option, whereby Sharp has the right to put its interest in the joint venture back to VOXX and VOXX has the right to call Sharp’s ownership interest in the joint venture at any time after the approval of Onkyo’s annual financial statements for the year ending February 28, 2025, at a purchase price based on a formula as defined in the joint venture agreement.

As of December 31, 2025, the put/call option has not been exercised by either party.

The Onkyo non-controlling interest has been classified as redeemable non-controlling interest outside of equity on the accompanying Consolidated Balance Sheet as the exercise of the put/call option is not within VOXX’s control.

The following table provides the rollforward of the redeemable non-controlling interest for the year ended December 31, 2025:

Redeemable Non-controlling Interest

Balance at January 1, 2025 $ —

Acquisition of redeemable non-controlling interest at fair value on April 1, 2025 2,823,000

Net loss attributable to non-controlling interest ( 103,591 )

Comprehensive loss attributable to non-controlling interest 488,224

Foreign currency translation ( 105,420 )

Balance at December 31, 2025 3,102,213

As of April 1, 2025, the net assets acquired in the VOXX transaction also included VOXX's non-redeemable non-controlling interest in its EyeLock® subsidiary.

In August 2025, the Company acquired the remaining equity interest in EyeLock® from its minority owners for cash consideration totaling $ 0.1 million.

In November 2024, the Company acquired GalvanEyes, which is the managing partner and 50 % owner of the BioCenturion joint venture with Eyelock, a subsidiary of VOXX.

The Company paid $ 2.9 million in cash, as well as an earnout over the next fifteen calendar years, not to exceed $ 15 million in the aggregate, for which the acquisition date fair value was determined to be $ 1.5 million.

The earnout is based on adjusted earnings before interest and taxes.

The Company accounted for the acquisition under the provisions of ASC 805 and consolidated GalvanEyes and the joint venture BioCenturion in the Company's Consolidated Financial Statements at December 31, 2024, in accordance with ASC 810, " Consolidation ." The valuation process was completed during the fourth quarter of 2025.

For the years ended December 31, 2025 and

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2024, approximately $ 1.7 million and less than $ 0.2 million of combined revenue, respectively, and $ 2.9 million and $ 0.4 million of combined net loss, respectively, of the businesses of GalvanEyes and BioCenturion are included in the Company's Consolidated Statements of Income.

Total goodwill recognized in this acquisition of $ 4.2 million is primarily attributable to the assembled workforce and expected synergies from the integration of the acquired business.

All of the goodwill acquired in connection with the GalvanEyes acquisition has been allocated to the Company's biometrics business.

At December 31, 2024, the Company had $ 4.1 million in non-controlling interest related to BioCenturion.

In conjunction with the acquisition of VOXX on April 1, 2025, the Company acquired VOXX's interest in BioCenturion through its majority ownership of Eyelock for cash consideration of $ 4.1 million.

Prior to the acquisition of this additional equity interest, the Company's 50 % interest in BioCenturion was accounted for as a variable interest entity for which Gentex was the primary beneficiary, and was consolidated within the Company's financial statements, with the remaining 50 % interest of BioCenturion presented within non-controlling interest.

In November 2023, the Company acquired certain technology assets from eSight for approximately $ 18.9 million in cash, the assumption of a $ 9.4 million promissory note given in exchange for the 20 % equity the Company previously held, as well as an earn out provision over a ten year period.

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The technology acquired from eSight provides advanced and versatile low-vision smart glasses for those with visual impairments and is compatible with more than 20 eye conditions including Macular Degeneration, Diabetic Retinopathy, and Stargardt disease.

These assets will be classified within the Company's Other segment.

The Company accounted for the acquisition under the provisions of FASB ASC Topic 805, Business Combinations .

eSight's results of operations are included in the financial statements of the Company within its Other reporting segment.

The Company accounted for the acquisition under the provisions of ASC 805.

The valuation process was completed during the third quarter of 2024.

Approximately $ 1.4 million of revenue of the business of eSight was included in the Company's consolidated statement of income and comprehensive income for the year ended December 31, 2024.

Approximately $ 1.3 million and $ 1.4 million of revenue of the business of eSight was included in the Company's Consolidated Statement of Income and Comprehensive Income for the years ended December 31, 2025 and 2024, respectively.

The following table summarizes the fair values of the assets acquired, and the liabilities assumed, as of the acquisition date of November 2, 2023:

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Personal Property 75,000

Right of Use Asset (Lease) 116,562

Operating lease, right of use assets

eSight Technology 12,000,000

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Total Liabilities $ 12,116,562

In November 2024, the Company acquired GalvanEyes, LLC, ("GalvanEyes") which is the managing partner and 50 % owner of the BioCenturion joint venture with Eyelock, a subsidiary of VOXX.

The earnout is based on adjusted earnings before interest and taxes.

The Company is accounting for the acquisition under the provisions of FASB ASC Topic 805, Business Combinations .

The Company is still in the process of verifying data and finalizing information related to the valuation and recording of identifiable intangible assets, net working capital, contingent liabilities, noncontrolling interest, and the resulting effects on the amount of recorded goodwill.

The Company expects to finalize these matters within the measurement period, which is currently expected to remain open through the third quarter of 2025.

The Company has consolidated GalvanEyes and the joint venture BioCenturion within the Company's Consolidated Balance Sheets as of December 31, 2024 in accordance with ASC 810, Consolidation, and has recognized $ 4.1 million in noncontrolling interest related to this transaction.

Less than $ 0.2 million of revenue and less than $ 0.4 million net loss of the business of GalvanEyes and BioCenturion was included in the Company's consolidated statement of income and comprehensive income for the year ended December 31, 2024.

GENTEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

On December 17, 2024, as previously disclosed, the Company entered into a definitive agreement and plan of merger for the Company to acquire VOXX in an all-cash transaction.

Under the terms of the agreement, the Company will acquire all the issued and outstanding shares of VOXX common stock not already owned by the Company for a purchase price of $ 7.50 per share.

The transaction is subject to approval of VOXX’s stockholders, certain regulatory approvals and other customary closing conditions, and is expected to close in the first quarter of 2025.

In 2024, the Company incurred $ 1.9 million in acquisition costs related to the GalvanEyes and VOXX acquisitions, which has been expensed as incurred in the "Selling, general & administrative" section of its Consolidated Statements of Income.

EXHIBIT INDEX

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Stock Purchase Agreement by and among Gentex Corporation, Avalon Park International LLC and Avalon Park Group Holding AG, dated as of October 4, 2023, filed as exhibit to Registrant's Report on Form 10-K filed February 22, 2024.

I nsider trading policies and procedures

Insider trading policies and procedures

21 List of Company Subsidiaries

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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 9A. Controls and Procedures