| Goodwill and Other Intangible Assets |
Goodwill and Other Intangible Assets Goodwill represents the cost of an acquisition in excess of the fair values assigned to identifiable net assets acquired. The change in the carrying value of Goodwill by segment is as follows:
| | | | | | | Amount | | Automotive Products | | | Beginning balance as of January 1, 2026 | $ | 309,709,522 | | | Period activity | — | | | | | | | | | Balance as of March 31, 2026 (1) | $ | 309,709,522 | | | | | | | | | | | Premium Audio Products | | | Beginning balance as of January 1, 2026 | $ | 12,713,758 | | | | | | Acquisitions (including measurement period adjustments) (see Note 16) | 3,765,220 | | | | | Balance as of March 31, 2026 (1) | $ | 16,478,978 | | | | | | | | | | | Other | | | Beginning balance as of January 1, 2026 | $ | 34,788,639 | | | | | | | | | Foreign currency adjustment | (52,832) | | Balance as of March 31, 2026 | $ | 34,735,807 | | | Gross carrying value at March 31, 2026 | $ | 38,400,511 | | | Accumulated impairment charges | (3,664,704) | | | Net carrying value at March 31, 2026 | $ | 34,735,807 | | | | | Total Goodwill, net | $ | 360,924,307 | | | (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. |
In addition to annual impairment testing, which is performed as of the first day of the Company's fourth quarter, the Company continuously monitors for events and circumstances that could negatively impact the key assumptions in determining fair value of goodwill or other intangible assets, thus resulting in the need for interim impairment testing, including: long-term revenue growth projections; profitability; discount rates; recent market valuations from transactions by comparable companies; volatility in the Company's market capitalization; and general industry, market, and macroeconomic conditions. During the first quarter of 2026, as a result of costs to develop the Company's In-Process Research and Development ("In Process R&D") continuing to exceed original estimates, as well as delays in the expected timing of commercialization of the related technology, management approved and began executing a plan to cease operations at the facility where its Vaporsens In-Process R&D activities were conducted. This plan included the termination of substantially all employees associated with those activities. As a result, the Company discontinued further development of the underlying technology and shifted its strategy to the potential sale of the related assets. These actions represented a significant adverse change in the extent and manner in which the In-Process R&D was expected to be used and in its projected future cash flows, indicating that the carrying value of the asset may not be recoverable. Accordingly, the Company recorded an impairment charge of $2.8 million during the three months ended March 31, 2026, to reduce the carrying amount of the asset to its estimated fair value. The estimated fair value was determined based on the Company's estimate of the expected selling price of the asset, taking into consideration available market information and indicative third-party interest, as applicable. Except as set forth, the Company noted no other events or circumstances indicating the need for interim impairment testing of its goodwill or other intangible assets during the first quarter of 2026. The Company's patents and intangible assets and related change in carrying values are set forth in the tables below, including the Vaporsens In-Process R & D, which has been previously disclosed. As of March 31, 2026: | | | | | | | | | | | | | | | | Other Intangible Assets | Gross | Accumulated Amortization | Net | Assumed Useful Life | | Gentex Patents | $ | 39,939,006 | | $ | (28,955,094) | | $ | 10,983,912 | | Various | | | | | | | Other Intangible Assets | | | | | 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 LLC ("BioCenturion") Trade Names and Trademarks | 640,000 | | (90,667) | | 549,333 | | 10 years | | BioCenturion Developed Technology | 2,300,000 | | (271,528) | | 2,028,472 | | 12 years | | eSight Developed Technology | 12,000,000 | | (2,416,667) | | 9,583,333 | | 12 years | | eSight Trade Names and Trademarks | 870,000 | | (175,208) | | 694,792 | | 12 years | | BioConnect Trade Names and Trademarks | 861,454 | | (56,169) | | 805,285 | | 12 years | | BioConnect Developed Technology | 5,392,068 | | (351,578) | | 5,040,490 | | 12 years | | BioConnect Customer Relationships | 1,722,909 | | (112,338) | | 1,610,571 | | 10 years | | Vaporsens In-Process R&D | 3,000,000 | | — | | 3,000,000 | | Indefinite | | Argil Developed Technology | 6,278,132 | | (261,589) | | 6,016,543 | | 12 years | | Air-Craftglass Developed Technology | 1,507,778 | | (157,060) | | 1,350,718 | | 12 years | | Guardian Trade Names | 1,300,000 | | (189,583) | | 1,110,417 | | 12 years | | Guardian Developed Technology | 6,800,000 | | (991,667) | | 5,808,333 | | 12 years | | Total Other Intangible Assets | $ | 413,672,341 | | $ | (228,074,054) | | $ | 185,598,287 | | | | | | | | | Total Patents & Other Intangible Assets | $ | 453,611,347 | | $ | (257,029,148) | | $ | 196,582,199 | | |
As of December 31, 2025: | | | | | | | | | | | | | | | | Other Intangible Assets | Gross | Accumulated Amortization | Net | Assumed Useful Life | | Gentex Patents | $ | 39,769,415 | | $ | (28,758,462) | | $ | 11,010,953 | | Various | | | | | | | Other Intangible Assets | | | | | 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 Intangible Assets | $ | 416,583,931 | | $ | (227,242,544) | | $ | 189,341,387 | | | | | | | | | Total Patents & Other Intangible Assets | $ | 456,353,346 | | $ | (256,001,006) | | $ | 200,352,340 | | |
Amortization expense of patents and intangible assets was approximately $1.2 million during the three months ended March 31, 2026, compared to approximately $4.6 million during the three months ended March 31, 2025. Excluding the impact of any future acquisitions, the Company estimates amortization expense to be approximately $3.5 million for the remainder of the year ending December 31, 2026, $5 million for each of the years ending December 31, 2027, and December 31, 2028, respectively, and $4 million for each of the years ended December 31, 2029, and December 31, 2030, respectively.
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