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Investments | 9 Months Ended
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Sep. 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 for investment purposes. 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. On August 23, 2024, the Company entered into another Stock Purchase Agreement and acquired an additional 3,152,500 shares of Class A Common Stock on that date at $5 per share for investment purposes. The VOXX shares held by the Company are publicly traded and have a readily determinable fair market value and are considered Level 1 assets. The Company has the intention and current ability to hold the VOXX investment, and therefore has recorded the investment within Long-term Investments in the consolidated balance sheet. As of September 30, 2024, the Company holds a total of 6,463,808 shares of VOXX. As a result of the August 2024 purchase, the Company began accounting 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 are recorded in Investment income, net in the condensed consolidated statements of income. The Company recorded $14.9 million of gain during the three months ended September 30, 2024, and $9.0 million of loss during the nine months ended September 30, 2024 relating to mark to market adjustments in investment income related to VOXX. 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 $149.9 million as of September 30, 2024, of which $144.9 million and $5.0 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 income (loss), net in the Company's condensed 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 September 30, 2024 and December 31, 2023: As of September 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 | September 30, 2024 |  | (Level 1) |  | (Level 2) |  | (Level 3)
Cash & Cash Equivalents | $ | 179,639,743 |  |  | $ | 179,639,743 |  |  | $ | — |  |  | $ | — |
Short-Term Investments: |  |  |  |  |  |  |
Asset-backed Securities | 2,784,681 |  |  | — |  |  | 2,784,681 |  |  | — |
Certificate of Deposit | 752,133 |  |  | 752,133 |  |  | — |  |  | — |
Corporate Bonds | 3,960,920 |  |  | — |  |  | 3,960,920 |  |  | — |
Government Securities | 2,479,975 |  |  | — |  |  | 2,479,975 |  |  | — |
Municipal Bonds | 4,380,400 |  |  | — |  |  | 4,380,400 |  |  | — |
Other | 1,073,419 |  |  | 1,073,419 |  |  | — |  |  | — |
Long-Term Investments: |  |  |  |  |  |  |
Asset-backed Securities | 40,069,030 |  |  | — |  |  | 40,069,030 |  |  | — |
Corporate Bonds | 57,754,563 |  |  | — |  |  | 57,754,563 |  |  | — |
Government Securities | 1,671,215 |  |  | — |  |  | 1,671,215 |  |  | — |
Municipal Bonds | 41,083,645 |  |  | — |  |  | 41,083,645 |  |  | — |
Common Stock | 41,109,820 |  |  | 41,109,820 |  |  | — |  |  | — |
Total | $ | 376,759,544 |  |  | $ | 222,575,115 |  |  | $ | 154,184,429 |  |  | $ | — |
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 Deposit | 994,013 |  |  | 994,013 |  |  | — |  |  | — |
Corporate Bonds | 1,943,886 |  |  | — |  |  | 1,943,886 |  |  | — |
Government Securities | 4,759,507 |  |  | — |  |  | 4,759,507 |  |  | — |
Municipal Bonds | 1,726,658 |  |  | — |  |  | 1,726,658 |  |  | — |
Other | 1,465,388 |  |  | 1,465,388 |  |  | — |  |  | — |
Long-Term Investments: |  |  |  |  |  |  |
Asset-backed Securities | 27,146,504 |  |  | — |  |  | 27,146,504 |  |  | — |
Certificate of Deposit | 748,358 |  |  | 748,358 |  |  | — |  |  | — |
Corporate Bonds | 65,404,340 |  |  | — |  |  | 65,404,340 |  |  | — |
Governmental Securities | 6,227,129 |  |  | — |  |  | 6,227,129 |  |  | — |
Municipal Bonds | 56,336,921 |  |  | — |  |  | 56,336,921 |  |  |
Common Stock | 18,610,519 |  |  | 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 September 30, 2024 and December 31, 2023: As of September 30, 2024:
|  |  | Unrealized |  |
| Cost |  | Gains |  | Losses |  | Market Value
Short-Term Investments: |  |  |  |  |  |  |
Asset-backed Securities | 2,834,713 |  |  | — |  |  | (50,032) |  |  | 2,784,681 |
Certificate of Deposit | $ | 750,000 |  |  | $ | 2,133 |  |  | $ | — |  |  | $ | 752,133 |
Corporate Bonds | 4,019,696 |  |  | — |  |  | (58,776) |  |  | 3,960,920 |
Government Securities | 2,474,160 |  |  | 5,815 |  |  | — |  |  | 2,479,975 |
Municipal Bonds | 4,393,568 |  |  | 1,697 |  |  | (14,865) |  |  | 4,380,400 |
Other | 1,073,419 |  |  | — |  |  | — |  |  | 1,073,419 |
Long-Term Investments: |  |  |  |  |  |  |
Asset-backed Securities | 39,109,728 |  |  | 1,032,389 |  |  | (73,087) |  |  | 40,069,030 |
Corporate Bonds | 56,889,910 |  |  | 1,273,030 |  |  | (408,377) |  |  | 57,754,563 |
Government Securities | 1,603,846 |  |  | 67,369 |  |  | — |  |  | 1,671,215 |
Municipal Bonds | 41,175,200 |  |  | 918,479 |  |  | (1,010,034) |  |  | 41,083,645 |
Total | $ | 151,489,527 |  |  | $ | 3,300,912 |  |  | $ | (1,565,139) |  |  | $ | 153,225,300 |
As of December 31, 2023:
|  |  | Unrealized |  |
| Cost |  | Gains |  | Losses |  | Market Value
Short-Term Investments: |  |  |  |  |  |  |
Certificate of Deposit | $ | 1,000,000 |  |  | $ | — |  |  | $ | (5,987) |  |  | $ | 994,013 |
Corporate Bonds | 1,976,195 |  |  | — |  |  | (32,309) |  |  | 1,943,886 |
Government Securities | 4,754,495 |  |  | 21,141 |  |  | (16,129) |  |  | 4,759,507 |
Municipal Bonds | 1,749,038 |  |  | — |  |  | (22,380) |  |  | 1,726,658 |
Other | 1,465,388 |  |  | — |  |  | — |  |  | 1,465,388 |
Long-Term Investments: |  |  |  |  |  |  |
Asset-backed Securities | 26,923,803 |  |  | 331,847 |  |  | (109,146) |  |  | 27,146,504 |
Certificate of Deposit | 750,000 |  |  | — |  |  | (1,642) |  |  | 748,358 |
Corporate Bonds | 66,214,398 |  |  | 748,471 |  |  | (1,558,529) |  |  | 65,404,340 |
Government Securities | 6,217,774 |  |  | 10,675 |  |  | (1,320) |  |  | 6,227,129 |
Municipal Bonds | 58,261,615 |  |  | 811,128 |  |  | (2,735,822) |  |  | 56,336,921 |
Common Stock | 17,324,886 |  |  | 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 September 30, 2024, are as follows:
| Aggregate Unrealized Losses |  | Aggregate Fair Value of Investments
Loss duration of less than one year | $ | 80,165 |  |  | $ | 7,363,296 |
Loss duration of greater than one year | 1,535,006 |  |  | 46,320,380 |
Total | $ | 1,615,171 |  |  | $ | 53,683,676 |
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 year | 4,400,003 |  |  | 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 Instrument s. 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 September 30, 2024 have contractual maturities as follows:
Due within one year | $ | 14,358,108 |
Due between one and five years | 76,534,624 |
Due over five years | 64,043,830 |
| $ | 154,936,562 |

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- Definition The entire disclosure for investment. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 321 -Publisher FASB -URI https://asc.fasb.org/321/tableOfContent Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 325 -Publisher FASB -URI https://asc.fasb.org/325/tableOfContent + Details
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