GENTEX CORPGNTX
GENTEX CORP Goodwill & Intangibles Disclosure
GOODWILL AND INTANGIBLE ASSETS
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 | ||||||||||
| 16,542,992 | 4,228,000 | |||||||||||||
| Impairments | — | (3,664,704) | ||||||||||||
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 | $ | — | $ | — | ||||||||||
| 12,713,758 | — | |||||||||||||
| Impairments | — | — | ||||||||||||
End of the period (1) | $ | 12,713,758 | $ | — | ||||||||||
Other | ||||||||||||||
| Beginning of the period | $ | 30,959,405 | $ | 30,396,109 | ||||||||||
| 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
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 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 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:
| Other Intangible Assets | Gross | Accumulated Amortization | Net | Assumed Useful Life | ||||||||||
HomeLink® Trade Names and Trademarks | $ | 52,000,000 | $ | — | $ | 52,000,000 | Indefinite | |||||||
HomeLink® Technology | 180,000,000 | (180,000,000) | — | 12 years | ||||||||||
| Existing Customer Platforms | 43,000,000 | (43,000,000) | — | 10 years | ||||||||||
| Exclusive Licensing Agreement | 96,000,000 | — | 96,000,000 | Indefinite | ||||||||||
| BioCenturion Trade Names and Trademarks | 640,000 | (74,667) | 565,333 | 10 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 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 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 | ||||||||
As of December 31, 2024:
| Other Intangible Assets | Gross | Accumulated Amortization | Net | Assumed Useful Life | ||||||||||
HomeLink® Trade Names and Trademarks | $ | 52,000,000 | $ | — | $ | 52,000,000 | Indefinite | |||||||
HomeLink® Technology | 180,000,000 | (168,750,000) | 11,250,000 | 12 years | ||||||||||
| Existing Customer Platforms | 43,000,000 | (43,000,000) | — | 10 years | ||||||||||
| Exclusive Licensing Agreement | 96,000,000 | — | 96,000,000 | Indefinite | ||||||||||
| 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 | ||||||||||
| 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 | ||||||||||
| 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 | ||||||||
Accumulated amortization on patents and intangible assets was approximately $256.0 million and $241.4 million at December 31, 2025 and 2024, respectively. 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.
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; $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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 21, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 23, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.