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Investments
 6 Months Ended
Jun. 30, 2025
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 December 31, 2024, the Company held a total of 6,463,808 shares of VOXX International Corporation ("VOXX") Class A Common Stock. The VOXX shares held by the Company as of December 31, 2024 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 Unaudited Condensed Consolidated Statements of Income prior to April 1, 2025. The Company recorded a gain of $0.8 million during the six months ended June 30, 2025, and losses of $16.6 million and $23.8 million during the three and six months ended June 30, 2024, respectively, within Investment (loss) income, net, in the accompanying Unaudited Condensed Consolidated Statements of Income related to its VOXX investment.
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 16).
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 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. 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 June 30, 2025, was $19.0 million.

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 approximately $159.2 million as of June 30, 2025, of which $147.0 million and $12.2 million are recorded in long-term investments and short-term investments, respectively, on the Unaudited Condensed Consolidated Balance Sheet. Such Technology Investments totaled approximately $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 Condensed 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) 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 and six months ended June 30, 2025, the Company recorded an other-than-temporary impairment charge of $6.2 million related to its investment in Green Marbles LLC within Investment (loss) income, net, on the accompanying Unaudited Condensed Consolidated Statement of Income. The Company determined that a triggering event had taken place during the second quarter of 2025, as a result of a deterioration in financial performance of the investee, requiring the Company to perform an impairment analysis of this equity method investment at June 30, 2025. The fair value of the investment was estimated using a discounted cash flow model. The Company's assumptions in estimating fair value 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 the equity method investment was below the carrying value at June 30, 2025, and does not expect the fair value to recover under current conditions.

Assets or liabilities that have recurring fair value measurements are shown below as of June 30, 2025 and December 31, 2024.
As of June 30, 2025:
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, 2025(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$119,774,840 $119,774,840 $— $— 
Short-Term Investments:
Asset-backed Securities2,923,883 — 2,923,883 — 
Corporate Bonds5,176,539 — 5,176,539 — 
Other966,611 966,611 — — 
Long-Term Investments:
Asset-backed Securities33,119,852 — 33,119,852 — 
Corporate Bonds42,859,454 — 42,859,454 — 
Municipal Bonds25,035,317 — 25,035,317 — 
Total$229,856,496 $120,741,451 $109,115,045 $— 
As of December 31, 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
December 31, 2024(Level 1)(Level 2)(Level 3)
Cash & Cash Equivalents$233,318,766 $233,318,766 $— $— 
Short-Term Investments:
Asset-backed Securities2,851,933 — 2,851,933 — 
Certificate of Deposit751,728 751,728 — — 
Corporate Bonds3,971,200 — 3,971,200 — 
Government Securities3,982,275 — 3,982,275 — 
Municipal Bonds3,386,500 — 3,386,500 — 
Other1,400,176 1,400,176 — — 
Long-Term Investments:
Asset-backed Securities41,766,104 — 41,766,104 — 
Corporate Bonds54,537,517 — 54,537,517 — 
Governmental Securities6,199,535 — 6,199,535 — 
Municipal Bonds39,458,318 — 39,458,318 
VOXX Common Stock47,702,903 47,702,903 — — 
Total$439,326,955 $283,173,573 $156,153,382 $— 

The amortized cost, unrealized gains and losses, and market value of investment securities are shown below as of June 30, 2025 and December 31, 2024.

As of June 30, 2025:
Unrealized
Cost
Gains
Losses
Market Value
Short-Term Investments:
Asset-backed Securities$2,834,713 $89,170 $— $2,923,883 
Corporate Bonds5,152,845 23,694 — 5,176,539 
Other966,611 — — 966,611 
Long-Term Investments:
Asset-backed Securities32,113,870 1,076,012 (70,030)33,119,852 
Corporate Bonds42,281,982 1,477,570 (900,098)42,859,454 
Municipal Bonds24,648,500 619,137 (232,320)25,035,317 
Total$107,998,521 $3,285,583 $(1,202,448)$110,081,656 
As of December 31, 2024:    
Unrealized
CostGainsLossesMarket Value
Short-Term Investments:
Asset-Backed Securities$2,834,713 $17,220 $— $2,851,933 
Certificate of Deposit750,000 1,728 — 751,728 
Corporate Bonds4,013,735 — (42,535)3,971,200 
Government Securities3,981,161 1,114 — 3,982,275 
Municipal Bonds3,400,019 472 (13,991)3,386,500 
Other1,400,176 — — 1,400,176 
Long-Term Investments:
Asset-backed Securities41,372,112 620,756 (226,764)41,766,104 
Corporate Bonds54,552,964 355,627 (371,074)54,537,517 
Government Securities6,206,437 13,124 (20,026)6,199,535 
Municipal Bonds40,542,837 209,564 (1,294,083)39,458,318 
VOXX Common Stock48,774,886 7,502,949 (8,574,932)47,702,903 
Total$207,829,040 $8,722,554 $(10,543,405)$206,008,189 

Unrealized losses on available-for-sale securities as of June 30, 2025, are as follows:
Aggregate Unrealized LossesAggregate Fair Value of Investments
Loss duration of less than one year$888,851 $5,969,691 
Loss duration of greater than one year313,597 7,586,624 
       Total
$1,202,448 $13,556,315 

Unrealized losses on available-for-sale securities as of December 31, 2024, are as follows:
Aggregate Unrealized Losses
Aggregate Fair Value of Investments
Loss duration of less than one year$587,357 $46,365,022 
Loss duration of greater than one year1,381,116 32,602,844 
       Total
$1,968,473 $78,967,866 

The Company utilizes the guidance provided by ASC 326 - Financial Instruments - Credit Losses, which provides an accounting model for purchased financial assets with credit deterioration since their origination, to determine whether any of the available-for-sale debt securities held by the Company are impaired. No such 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, 2025 have contractual maturities as follows:
Due within one year
$8,100,422 
Due between one and five years
47,315,213 
Due over five years
53,699,410 
$109,115,045