Gentex Corp

For the quarterly period ended March 31, 2026 or

For the transition period from to Commission File Number : 0-10235 GENTEX CORPORATION (Exact name of registrant as specified in its charter) Michigan 38-2030505 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

600 N. Centennial Zeeland Michigan 49464 (Address of principal executive offices) (Zip Code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes: ☐ No: þ APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes: ☐ No: o APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Shares Outstanding, April 24, 2026 Common Stock, $.06 Par Value 212,951,848

GENTEX CORPORATION AND SUBSIDIARIES For the Three Months Ended March 31, 2026 FORM 10-Q Index Part I - Financial Information Page Item 1. Unaudited Condensed Consolidated Financial Statements 3 Unaudited Condensed Consolidated Balance Sheets 3 Unaudited Condensed Consolidated Statements of Income 4 Unaudited Condensed Consolidated Statements of Comprehensive Income 5 Unaudited Condensed Consolidated Statements of Shareholders' Investment 6 Unaudited Condensed Consolidated Statements of Cash Flows 7 Notes to Unaudited Condensed Consolidated Financial Statements 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 3. Quantitative and Qualitative Disclosures About Market Risk 39 Item 4. Controls and Procedures 39

Part II - Other Information Item 1. L egal Proceedings 41 Item 1A. Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 6. Exhibits 41 Signature s 41 Exhibit Index 43

PART I - FINANCIAL INFORMATION Item 1. Unaudited Condensed Consolidated Financial Statements.

GENTEX CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS As of March 31, 2026 and December 31, 2025 March 31, 2026 (Unaudited) December 31, 2025 (Note) ASSETS CURRENT ASSETS Cash and cash equivalents $ 164,761,633 $ 145,645,715 Short-term investments 10,285,838 5,386,566 Accounts receivable, net 419,468,925 368,517,569 Inventories, net 523,509,606 516,253,617 Prepaid expenses and other 90,166,999 92,631,001 Total current assets 1,208,193,001 1,128,434,468 PLANT AND EQUIPMENT - NET 786,333,204 790,935,378 OTHER ASSETS Goodwill 360,924,307 357,211,919 Long-term investments 270,092,847 272,975,939 Intangible assets, net 185,598,287 189,341,387 Deferred tax asset 109,448,931 108,338,592 Patents and other assets, net 77,045,617 81,355,151 Total other assets 1,003,109,989 1,009,222,988 TOTAL ASSETS $ 2,997,636,194 $ 2,928,592,834 LIABILITIES AND SHAREHOLDERS' INVESTMENT CURRENT LIABILITIES Accounts payable $ 276,649,198 $ 248,983,498 Short-term debt 3,840,654 3,795,925 Accrued liabilities 164,089,408 134,763,546 Total current liabilities 444,579,260 387,542,969 OTHER NON-CURRENT LIABILITIES 46,510,151 49,209,006

DEFERRED INCOME TAXES 940,127 908,922 TOTAL LIABILITIES 492,029,538 437,660,897 REDEEMABLE NON-CONTROLLING INTEREST 3,021,490 3,102,213 SHAREHOLDERS' INVESTMENT Common stock 12,778,795 12,926,701 Additional paid-in capital 1,007,716,711 1,008,589,267 Retained earnings 1,480,867,060 1,466,046,002 Accumulated other comprehensive income 1,222,600 267,754 TOTAL SHAREHOLDERS' INVESTMENT 2,502,585,166 2,487,829,724 Non-controlling Interest - - TOTAL SHAREHOLDERS' INVESTMENT 2,502,585,166 2,487,829,724 TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND SHAREHOLDERS' INVESTMENT $ 2,997,636,194 $ 2,928,592,834

Note: The Condensed Consolidated Balance Sheet at December 31, 2025 has been derived from the audited Consolidated Financial Statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. 3

GENTEX CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME For the Three Months Ended March 31, 2026 and 2025 Three Months Ended March 31, 2026 2025 NET SALES $ 675,443,125 $ 576,773,090 COST OF GOODS SOLD 446,816,212 385,039,503 Gross profit 228,626,913 191,733,587 OPERATING EXPENSES: Engineering, research and development 51,652,619 45,924,364 Selling, general & administrative 49,791,834 29,933,005 Impairment charges (Note 3) 2,800,000 - Severance expense 722,541 2,889,112 Total operating expenses 104,966,994 78,746,481 Income from operations 123,659,919 112,987,106 OTHER (LOSS) INCOME Investment (loss) income, net ( 87,371 ) 4,874,855 Other, net ( 5,524,986 ) ( 4,234,379 ) Total other (loss) income, net ( 5,612,357 ) 640,476 INCOME BEFORE PROVISION FOR INCOME TAXES 118,047,562 113,627,582 PROVISION FOR INCOME TAXES 19,626,503 18,753,537 NET INCOME $ 98,421,059 $ 94,874,045 Less: Net loss attributable to non-controlling interests ( 34,084 ) - NET INCOME ATTRIBUTABLE TO GENTEX CORPORATION $ 98,455,143 $ 94,874,045 EARNINGS PER SHARE ATTRIBUTABLE TO GENTEX CORPORATION: (1) Basic $ 0.46 $ 0.42 Diluted $ 0.46 $ 0.42 Cash Dividends Declared per Share $ 0.120 $ 0.120 (1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards.

GENTEX CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Three Months Ended March 31, 2026 and 2025 Three Months Ended March 31, 2026 2025 Net income from consolidated operations $ 98,421,059 $ 94,874,045 Other comprehensive income before tax: Foreign currency translation adjustments 1,745,052 ( 345,230 ) Unrealized losses on derivatives ( 186,436 ) - Unrealized (losses) gains on debt securities, net ( 813,826 ) 2,182,847 Other comprehensive income, before tax 744,790 1,837,617 Income tax impact related to components of other comprehensive income ( 210,056 ) 458,398 Other comprehensive income, net of tax 954,846 1,379,219 Comprehensive income from consolidated operations $ 99,375,905 $ 96,253,264 Net loss attributable to non-controlling interests ( 34,084 ) - Comprehensive income attributable to Gentex Corporation $ 99,409,989 $ 96,253,264

GENTEX CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT For the Three Months Ended March 31, 2026 and 2025 Common Stock Shares Common Stock Amount Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Total Equity Attributable to Noncontrolling Interests Total Shareholders' Investment BALANCE AS OF JANUARY 1, 2026 215,445,024 12,926,701 1,008,589,267 1,466,046,002 267,754 2,487,829,724 $ - $ 2,487,829,724 Issuance of common stock from stock plan transactions 787,593 47,256 2,056,531 - - 2,103,787 - 2,103,787 Repurchases of common stock ( 3,252,696 ) ( 195,162 ) ( 13,336,052 ) ( 58,076,711 ) - ( 71,607,925 ) - ( 71,607,925 ) Stock-based compensation expense related to stock options, employee stock purchases and restricted stock - - 10,406,965 - - 10,406,965 - 10,406,965 Dividends declared ($ 0.12 per share) - - - ( 25,557,374 ) - ( 25,557,374 ) - ( 25,557,374 )

(1) Net income (loss) excludes net loss attributable to redeemable non-controlling interest of $ 34,084 for the three months ended March 31, 2026 (see Note 16 ). 6

GENTEX CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2026 and 2025 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net income from consolidated operations $ 98,421,059 $ 94,874,045 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 25,656,252 25,509,069 Gain on disposal of assets ( 18,375 ) ( 24,367 ) Loss on disposal of assets 7,524 - Gain on sale of investments and technology investment income ( 1,090,014 ) ( 787,579 ) Loss on sale of investments and technology investment losses 3,665,560 3,274,941 Reserve for credit losses 2,211,597 - Deferred income taxes ( 3,944,932 ) ( 927,401 ) Stock-based compensation expense related to employee stock options, employee stock purchases and restricted stock 10,406,965 8,671,763 Impairment charges - intangible assets 2,800,000 - Impairment charges - investments 2,739,466 - Change in operating assets and liabilities: Accounts receivable, net ( 50,951,356 ) ( 35,280,995 ) Inventories ( 7,255,989 ) 27,562,638 Prepaid expenses and other 5,958,594 9,056,108 Accounts payable 21,070,064 ( 3,809,528 ) Accrued liabilities, excluding dividends declared 27,406,814 20,386,827 Net cash provided by operating activities 137,083,229 148,505,521 CASH FLOWS USED FOR INVESTING ACTIVITIES: Activity in investments: Sales proceeds 492,475 48,810,102 Purchases ( 3,145,703 ) ( 12,180,407 ) Purchase of equity method investments ( 5,491,789 ) - Plant and equipment additions ( 17,042,162 ) ( 36,722,401 ) Proceeds from sale of plant and equipment 70,262 53,110 Loans to technology investment partners ( 1,334,424 ) - Decrease (increase) in other assets 877,306 ( 5,061,949 ) Net cash used for investing activities ( 25,574,035 ) ( 5,101,545 ) CASH FLOWS USED FOR FINANCING ACTIVITIES:

Issuance of common stock from stock plan transactions 2,103,787 4,933,702 Cash dividends paid ( 25,853,186 ) ( 27,264,150 ) Repurchases of common stock ( 68,643,877 ) ( 67,833,696 ) Net cash used for financing activities ( 92,393,276 ) ( 90,164,144 ) NET INCREASE IN CASH, CASH EQUIVALENTS, and RESTRICTED CASH 19,115,918 53,239,832 CASH AND CASH EQUIVALENTS, beginning of period 145,645,715 233,318,766 CASH AND CASH EQUIVALENTS, end of period $ 164,761,633 $ 286,558,598

Three Months Ended March 31, SUPPLEMENTAL CASH FLOW DATA 2026 2025 Non-cash investing and financing activities: Change in property and equipment in accounts payable and accrued expenses and other current liabilities $ ( 2,890,402 ) $ 9,778,725

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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 November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging - Hedge Accounting Improvements (Topic 815) , which amends certain aspects of the hedge accounting guidance to better align financial reporting with the economics of an entity's risk management activities. ASU 2025-09 is effective for annual and interim periods beginning after December 15, 2026. Early adoption is permitted and is effective on a prospective basis. 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.

(3) 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 -

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. 9

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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.

(4) Investments Available for sale securities The Company follows the provisions of Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures , for its financial assets and liabilities, and for its non-financial assets and liabilities subject to fair value measurements. ASC 820 provides a framework for measuring the fair value of assets and liabilities. This framework is intended to provide increased consistency in how fair value determinations are made under various existing accounting standards that permit, or in some cases, require estimates of fair-market value. This standard also expanded financial statement disclosure requirements with respect to a company's use of fair-value measurements, including the effect of such measurements on earnings. The cost of securities sold is based on the specific identification method. The Company determines the fair value of its asset-backed securities, municipal bonds, and corporate bonds by utilizing monthly valuation statements that are provided by its broker. The broker determines the investment valuation by utilizing the bid price in the market and also refers to third party sources to validate valuations, and as such are classified as Level 2 assets. The Company's certificates of deposit are classified as available for sale and are considered as Level 1 assets. These investments are carried at cost, which approximates fair value. 11

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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 International Corporation ("VOXX") on April 1, 2025 (see Note 16 ) 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: RV's; buses; 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. The balance of the Company's investment in ASA was $ 20.5 million and $ 20.0 million as of March 31, 2026 and December 31, 2025, respectively, and included in Long-term investments on the accompanying Unaudited Condensed Consolidated Balance Sheets. Technology Investments The Company also periodically makes strategic investments in the non-marketable debt or equity securities of other non-consolidated third parties ("Technology Investments"). Such Technology Investments totaled $ 146.2 million as of March 31, 2026, and are recorded in long-term investments on the accompanying Unaudited Condensed Consolidated Balance Sheet. Such Technology Investments totaled approximately $ 146.6 million as of December 31, 2025, of which $ 144.9 million and $ 1.7 million are included in long-term investments and short-term investments, respectively, on the accompanying Unaudited Condensed Consolidated Balance Sheets. 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) income, net, in the Company's accompanying Unaudited Condensed Consolidated Statements of Income. All other Technology Investments that the Company holds are primarily accounted for under the measurement alternative of ASC 321. Under the measurement alternative, the carrying value is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. During the three months ended March 31, 2026, the Company recognized a loss of $ 1.7 million within Other, net, related to warrants held in one of the Company's technology investments that expired unexercised during the quarter. During the same period, the Company recorded an other-than-temporary impairment charge of $ 2.7 million related to one of its technology investments, which is included in Investment (loss) income, net, on the accompanying Unaudited Condensed Consolidated Statement of Income. During the first quarter of 2026, the Company identified indicators of impairment related the investment, including a sustained deterioration in the entity's operating results and financial condition, as well as the execution of a forbearance agreement associated with outstanding loans from the Company to the investee totaling approximately $ 5.0 million (exclusive of credit reserves) as of March 31, 2026. Based on these factors, the Company determined that the decline in fair value of its investment was other-than-temporary. The Company concluded that the estimated fair value of its equity interest was negligible, as the investee's enterprise value was not expected to be sufficient to satisfy the Company's outstanding loan exposure. Accordingly, the Company recorded a full impairment charge to reduce the carrying amount of the investment to zero. 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, and as such 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 Unaudited Condensed Consolidated Balance Sheets 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 life 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 in the Company's Unaudit