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Investments
 6 Months Ended
Jun. 30, 2024
Investments [Abstract]  
Investments 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 government securities, 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.
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. The VOXX shares held by the Company are publicly traded and have a readily determinable fair market value and are considered Level 1 assets. As of June 30, 2024, the Company holds a total of 3,311,308 shares of VOXX. The investment is 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. During the three and six months ended June 30, 2024, the Company recorded $16.6 million and $23.8 million, respectively, of mark to market adjustments in investment income.

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 $146.2 million as of June 30, 2024, of which $142.7 million and $3.5 million are recorded in long-term investments and short-term investments, respectively, 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, respectively, on the 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 do 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 consolidated statement 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.

Assets or liabilities that have recurring fair value measurements are shown below as of June 30, 2024 and December 31, 2023:
As of June 30, 2024:
Fair Value Measurements at Reporting Date Using
Total as of
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Observable
Inputs
Significant
Unobservable
Inputs
Description
June 30, 2024(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$260,241,951 $260,241,951 $— $— 
Short-Term Investments:
Certificate of Deposit995,838 995,838 — — 
Government Securities4,591,123 — 4,591,123 — 
Municipal Bonds5,079,264 — 5,079,264 — 
Other1,401,088 1,401,088 — — 
Long-Term Investments:
Asset Backed Securities40,725,036 — 40,725,036 — 
Corporate Bonds62,832,820 — 62,832,820 — 
Government Securities8,380,081 — 8,380,081 — 
Municipal Bonds43,932,270 — 43,932,270 — 
Common Stock10,463,734 10,463,734 — — 
Total$438,643,205 $273,102,611 $165,540,594 $— 
As of December 31, 2023:
Fair Value Measurements at Reporting Date Using
Total as of
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Observable
Inputs
Significant
Unobservable
Inputs
Description
December 31, 2023(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$226,435,019 $226,435,019 $— $— 
Short-Term Investments:
Certificate of Deposit994,013 994,013 — — 
Corporate Bonds1,943,886 — 1,943,886 — 
Government Securities4,759,507 — 4,759,507 — 
Municipal Bonds1,726,658 — 1,726,658 — 
Other1,465,388 1,465,388 — — 
Long-Term Investments:
Asset-backed Securities27,146,504 — 27,146,504 — 
Certificate of Deposit748,358 748,358 — — 
Corporate Bonds65,404,340 — 65,404,340 — 
Governmental Securities6,227,129 — 6,227,129 — 
Municipal Bonds56,336,921 — 56,336,921 
Common Stock18,610,519 18,610,519 — — 
Total$411,798,242 $248,253,297 $163,544,945 $— 

The amortized cost, unrealized gains and losses, and market value of investment securities are shown as of June 30, 2024 and December 31, 2023:

As of June 30, 2024:
Unrealized
Cost
Gains
Losses
Market Value
Short-Term Investments:
Certificate of Deposit$1,000,000 $— $(4,162)$995,838 
Government Securities4,608,148 — (17,025)4,591,123 
Municipal Bonds5,137,053 — (57,789)5,079,264 
Other1,401,088 — — 1,401,088 
Long-Term Investments:
Asset Backed Securities40,635,021 343,922 (253,907)40,725,036 
Corporate Bonds63,561,430 203,037 (931,647)62,832,820 
Government Securities8,434,018 17,187 (71,124)8,380,081 
Municipal Bonds45,668,584 216,797 (1,953,111)43,932,270 
Total$170,445,342 $780,943 $(3,288,765)$167,937,520 
As of December 31, 2023:    
Unrealized
CostGainsLossesMarket Value
Short-Term Investments:
Certificate of Deposit$1,000,000 $— $(5,987)$994,013 
Corporate Bonds1,976,195 — (32,309)1,943,886 
Government Securities4,754,495 21,141 (16,129)4,759,507 
Municipal Bonds1,749,038 — (22,380)1,726,658 
Other1,465,388 — — 1,465,388 
Long-Term Investments:
Asset-backed Securities26,923,803 331,847 (109,146)27,146,504 
Certificate of Deposit750,000 (1,642)748,358 
Corporate Bonds66,214,398 748,471 (1,558,529)65,404,340 
Government Securities6,217,774 10,675 (1,320)6,227,129 
Municipal Bonds58,261,615 811,128 (2,735,822)56,336,921 
Common Stock17,324,886 1,328,446 (42,813)18,610,519 
Total$186,637,592 $3,251,708 $(4,526,077)$185,363,223 

Unrealized losses on available-for-sale securities as of June 30, 2024, are as follows:
Aggregate Unrealized LossesAggregate Fair Value of Investments
Loss duration of less than one year$455,438 $58,239,483 
Loss duration of greater than one year2,833,327 62,929,099 
       Total
$3,288,765 $121,168,582 

Unrealized losses on available-for-sale securities as of December 31, 2023, are as follows:
Aggregate Unrealized Losses
Aggregate Fair Value of Investments
Loss duration of less than one year$126,074 $13,449,592 
Loss duration of greater than one year4,400,003 76,966,258 
       Total
$4,526,077 $90,415,850 

Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The guidance modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. The Company utilized the guidance provided by ASC 326 to determine whether any of the available-for-sale debt securities held by the Company were impaired. No investments were considered to be impaired during the periods presented. The Company has the intention and current ability to hold its debt investments until any amortized cost basis has been recovered.

Fixed income securities as of June 30, 2024 have contractual maturities as follows:
Due within one year
$10,666,225 
Due between one and five years
89,477,474 
Due over five years
66,392,732 
$166,536,431