[X]
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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A.
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Full title of the plan and the address of the plan, if different from that of the issuer named below:
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B.
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Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
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Page
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Report of Independent Registered Public Accounting Firm
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Financial Statements
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Statements of Net Assets Available for Benefits as of December 31, 2022 and 2021
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Statement of Changes in Net Assets Available for Benefits for the year ended December 31, 2022
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Notes to Financial Statements
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Supplemental Schedule
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Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2022
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Exhibit
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Exhibit 23.1 Consent of Independent Registered Public Accounting Firm – Coulter & Justus, P.C
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Statements of Net Assets Available for Benefits
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December 31, 2022 and 2021
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2022
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2021
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Assets:
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Non-interest bearing cash
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$
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57,311
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$
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52,952
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Investments, at fair value
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57,932,210
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67,946,602
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Notes receivable from participants
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1,429,370
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1,674,855
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Participants' contribution receivable
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183,744
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139,750
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Company contribution receivable
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205,582
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179,956
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Other receivable
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2,808
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2,146
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Total Assets
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59,811,025
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69,996,261
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Liabilities:
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Excess contributions payable
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234,564
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32,779
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Net assets available for benefits
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$
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59,576,461
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$
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69,963,482
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Statement of Changes in Net Assets Available for Benefits
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Year Ended December 31, 2022
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Additions:
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Investment income:
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Interest and dividends
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$
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956,229
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Net depreciation in fair value of investments
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(9,032,248
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)
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Net investment loss
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(8,076,019
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)
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Interest on notes receivable from participants
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67,403
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Contributions from participants
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6,164,329
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Rollovers from participants
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509,134
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Contributions from Company
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1,985,150
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Total additions
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649,997
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Deductions:
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Participants' benefits
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10,795,574
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Administrative fees
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241,444
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Total deductions
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11,037,018
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Net decrease in net assets available for benefits
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(10,387,021
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)
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Net assets available for benefits at beginning of year
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69,963,482
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Net assets available for benefits at end of year
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$
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59,576,461
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Summary of Significant Accounting Policies
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(a)
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Basis of Presentation
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(b)
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Investments and Investment Income
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(c)
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Notes Receivable from Participants
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(d)
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Events Occurring after Report Date
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(2)
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Description of the Plan
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(a)
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General
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(b)
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Contributions
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(c)
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Participant Accounts
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(d)
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Notes Receivable from Participants
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(e)
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Payment of Benefits
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(f)
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Hardship Withdrawals
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(g)
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Vesting
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(h)
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Forfeited Accounts
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(i)
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Excess Contributions Payable
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(j)
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Administrative Expenses
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(k)
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Plan Termination
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(3)
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Transactions with Parties-In-Interest
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(4)
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Fair Value Measurements
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Level 1
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-
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Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the
Plan has the ability to access.
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Level 2
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-
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Inputs to the valuation methodology include:
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-
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Quoted prices for similar assets or liabilities in active markets;
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-
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Quoted prices for identical or similar assets or liabilities in inactive markets;
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-
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Inputs other than quoted prices that are observable for the asset or liability; and
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-
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Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
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-
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If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full
term of the asset or liability.
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Level 3
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-
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Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
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(i)
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Cash: Valued at its outstanding balance as reported by the Trustee.
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(ii)
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Mutual funds: Valued at the net asset value (NAV) of shares held by the Plan at year-end, based on closing prices reported on the active market on which the individual securities are traded.
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(iii)
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Unitized stock fund: The Unitized CVTI Fund is comprised of Covenant Logistics Group, Inc., common stock and cash. The common stock is carried at fair value based on the closing price as reported on the
active market. Investments in the fund are stated at estimated fair values, which have been determined based on unit values. Unit values are determined by dividing the fund’s net assets at fair value by its units outstanding at the
valuation dates. The unit values of the fund were $16.50 and $12.79 on December 31, 2022 and 2021, respectively.
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Fair value Measurements as of
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December 31, 2022
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Total
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Level 1
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Level 2
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Level 3
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Cash
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$
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64,162
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$
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64,162
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$
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-
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$
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-
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Mutual funds
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48,091,591
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48,091,591
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-
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-
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Unitized CVTI fund
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2,995,664
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-
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2,995,664
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-
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Total assets in the fair value hierarchy
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51,151,417
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$
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48,155,753
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$
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2,995,664
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$
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-
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Investments measured at NAV as a practical expedient (a)
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6,780,793
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Total investments at fair value
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$
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57,932,210
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Fair value Measurements as of
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December 31, 2021
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Total
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Level 1
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Level 2
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Level 3
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Cash
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$
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33,308
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$
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33,308
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$
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-
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$
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-
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Mutual funds
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58,240,224
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58,240,224
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-
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-
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Unitized CVTI fund
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5,537,276
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-
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5,537,276
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-
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Total assets in the fair value hierarchy
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63,810,808
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$
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58,273,532
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$
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5,537,276
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$
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-
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Investments measured at NAV as a practical expedient (a)
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4,135,794
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Total investments at fair value
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$
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67,946,602
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(a) Certain investments are measured at NAV as a practical expedient to estimate fair value and, therefore, have not been classified in the fair value hierarchy. The fair value amounts presented in this table
are intended to permit reconciliation of the fair value hierarchy to the line items presented in the statements of net assets available for benefits.
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Description
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Fair Value
December 31, 2022
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Fair Value
December 31, 2021
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Unfunded Commitments
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Redemption Frequency
(if Currently Eligible)
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Redemption Notice Period
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Collective Trust Fund
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$
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6,780,793
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$
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4,135,794
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N/A
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Daily
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None
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(5)
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Income Tax Status
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(6)
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Risks and Uncertainties
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(7)
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Subsequent Events
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EIN 88-0320154 Plan No. 001
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Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
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December 31, 2022
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(a)
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(b)
Identity of Issuer, Borrower, Lessor or Similar Party |
(c)
Description of Investment, Including Maturity Date, Rate of Interest, Par or Maturity Value |
(e)
Current Value |
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*
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State Street Bank & Trust Co.
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Cash Reserve Account
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$
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121,473
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*
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Covenant Logistics Group, Inc. and State Street Bank & Trust Co.
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Unitized CVTI Fund
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2,995,664
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Putnam
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Putnam Stable Value (25)
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4,380,163
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Wilmington Trust
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ClearBridge Large Cap Growth R2
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1,470,411
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SEI
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Congress Mid Cap Growth
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429,757
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SEI
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Schroeder International Alpha Trust H1
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500,462
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Collective Trust Fund Total
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6,780,793
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American Funds
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American Funds 2010 Trgt Date Retire R6
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598,472
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American Funds
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American Funds 2015 Trgt Date Retire R6
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443,928
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American Funds
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American Funds 2020 Trgt Date Retire R6
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1,884,035
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American Funds
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American Funds 2025 Trgt Date Retire R6
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7,171,318
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American Funds
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American Funds 2030 Trgt Date Retire R6
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8,500,500
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American Funds
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American Funds 2035 Trgt Date Retire R6
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4,877,666
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American Funds
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American Funds 2040 Trgt Date Retire R6
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4,622,639
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American Funds
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American Funds 2045 Trgt Date Retire R6
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4,565,927
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American Funds
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American Funds 2050 Trgt Date Retire R6
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2,604,941
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American Funds
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American Funds 2055 Trgt Date Retire R6
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2,468,884
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American Funds
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American Funds 2060 Trgt Date Retire R6
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1,148,211
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American Funds
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American Funds Capital World G/I R6
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294,338
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Dreyfus
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BNY Mellon Global Fixed income Y
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180,475
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Delaware
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Delaware Small Cap Value R6
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227,536
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Hartford
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Hartford Schroders Emerging Markets Equity Y
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292,615
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JP Morgan
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JPMorgan Mid Cap Value R6
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439,623
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Metropolitan West
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Metropolitan West Total Return Bond Plan
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290,260
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MFS
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MFS Value R6
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1,174,119
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Prudential
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PGIM High Yield R6
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391,928
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T. Rowe Price
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T. Rowe Price QM US Small-Cap Growth Equity I
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579,306
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Vanguard
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Van Guard 500 Index Adm
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3,078,756
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Vanguard
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Vanguard Mid Cap Index Adm
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905,707
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Vanguard
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Vanguard Small Cap Index Adm
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881,240
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Vanguard
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Vanguard Total Bond Market Index Adm
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237,706
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Vanguard
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Vanguard Total International Stock Index Adm
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231,461
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Mutual Funds Total
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48,091,591
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*
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Participant loans
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Notes Receivable with interest rates of 4.25% to 8.00% and 2023-2027 maturity dates
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1,429,370
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TOTAL
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$
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59,418,891
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COVENANT TRANSPORTATION GROUP 401(K) & PROFIT SHARING PLAN
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By:
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Covenant Transport, Inc.,
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Plan Administrator
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Dated: June 28, 2023
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By:
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/s/ M. Paul Bunn
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M. Paul Bunn,
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President, Chief Operating Officer, and Secretary on behalf of
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Covenant Transport, Inc.
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Exhibit Number
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Description of Exhibit
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Consent of Independent Registered Public Accounting Firm – Coulter & Justus, P.C.
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