Financial Performance - Fourth Quarter 2024 net income available to LGL Group common stockholders was $202,000, or $0.04 per diluted share, compared to $134,000, or $0.02 per diluted share in Q4 2023, reflecting an increase of 50%[4] - Fiscal Year 2024 net income available to LGL Group common stockholders was $432,000, or $0.08 per diluted share, up from $269,000, or $0.05 per diluted share in 2023, marking a 60.6% increase[6] - Net income from continuing operations for Q4 2024 was $228,000, a 42.5% increase from $160,000 in Q4 2023[29] - Net income attributable to LGL Group common stockholders for the fiscal year 2024 was $432,000, a 60.6% increase from $269,000 in 2023[31] Revenue Growth - Total revenues for Q4 2024 increased by $162,000 to $1,157,000 from $995,000 in Q4 2023, representing a growth of approximately 16.3%[6] - Total revenues for the fiscal year 2024 rose by $614,000 to $4,292,000 from $3,678,000 in 2023, an increase of approximately 16.7%[6] - Total revenues for Q4 2024 increased by 16.3% to $1,157,000 compared to $995,000 in Q4 2023[29] - The Electronic Instruments segment for the fiscal year 2024 reported a revenue increase of 28.8% to $2,226,000[31] - Electronic Instruments segment revenue rose by 46.4% to $653,000, while Merchant Investment segment revenue decreased by 6.4% to $306,000[29] Margins and Expenses - Gross margin for Q4 2024 improved to 60.0% from 54.9% in Q4 2023, driven by sales of higher margin products[5] - Total expenses for Q4 2024 increased by 36.9% to $912,000 compared to $666,000 in Q4 2023[29] Assets and Liabilities - Total assets increased to $43,145,000 in 2024 from $41,850,000 in 2023, reflecting a growth of 3.1%[27] - Total liabilities rose to $1,905,000 in 2024, up from $1,168,000 in 2023, marking a significant increase of 62.9%[27] Order Backlog and Cash Position - As of December 31, 2024, the order backlog was $336,000, an increase of $193,000 from $143,000 as of December 31, 2023[10] - Cash and cash equivalents and marketable securities totaled $41,602,000 as of December 31, 2024[6] Strategic Initiatives - LGL Group's acquisition of Morgan Group Holding Co. is expected to close in Q2 2025[14] - P3 Logistic Solutions, Inc. was selected as a partner in the DARPA Venture Horizons program to advance defense-related technologies[15] - The company is examining cost efficiencies, including the state of corporate domicile, to enhance operational performance[3] Income from Continuing Operations - Income from continuing operations before income taxes for the fiscal year 2024 was $699,000, an 8.2% increase from $646,000 in 2023[31]

Financial Position - As of December 31, 2024, LGL Group had cash and cash equivalents and marketable securities with a fair market value of approximately $41,602, of which $24,609 was held within the Merchant Investment business[16][34]. - The company recorded $1.9 million of non-controlling interests in LGL Systems on its consolidated balance sheets as of June 2023[59]. - The company had investments in cash and cash equivalents and marketable securities with a fair market value of $41,602 as of December 31, 2024[81]. - Cash provided by operating activities increased by $489, or 127.0%, from $385 in 2023 to $874 in 2024, reflecting improved operational efficiency[210]. - Cash and cash equivalents at the end of 2024 were $41,585, an increase of $874 from $40,711 at the end of 2023[209]. - Working capital increased by $646, or 1.6%, from $41,092 in 2023 to $41,738 in 2024, with a current ratio of 47.2 in 2024 compared to 87.7 in 2023[211]. - The company believes existing cash and cash equivalents, marketable securities, and cash generated from operations will provide sufficient liquidity for ongoing working capital and capital expenditure requirements for the next 12 months[213]. Business Strategy and Operations - LGL Group's business strategy focuses on growth through expanding new and existing operations across diversified industries, having acquired 32 businesses since 1985[14][16]. - The Company aims to maximize shareholder value by developing businesses and positioning them as independent entities[18]. - The Merchant Investment segment utilizes various structures to build shareholder value, including special purpose vehicles and fee-generating activities[25][33]. - LGL Group's strategy includes identifying and acquiring undervalued assets and businesses, often through the purchase of securities[33]. - The company intends to explore acquisitions to enhance or expand its business, but faces risks related to integration and management attention[123]. - The company is currently dependent on a single line of manufacturing business following the separation of MtronPTI on October 7, 2022, which poses risks if demand declines[112]. Revenue and Sales Performance - In 2024, total sales reached $2,226,000, with the top four customers accounting for 43.0% of revenue[44]. - International revenues increased to $962,000, representing 43.2% of total sales, up from 39.1% in 2023[49]. - The order backlog as of December 31, 2024, was $336,000, compared to $143,000 in 2023, indicating growth in future sales potential[51]. - Total revenues increased by $614, or 16.7%, from $3,678 in 2023 to $4,292 in 2024[190]. - Net sales rose by $498, or 28.8%, from $1,728 in 2023 to $2,226 in 2024, primarily due to additional contracts won within the Electronic Instruments segment[195]. - The two largest customers accounted for 13.9% and 11.7% of net sales in 2024, down from 23.1% and 13.7% in 2023, indicating a shift in customer concentration risk[121]. Investment and Market Risks - The company may face substantial negative impacts on sales and operating results if there is a loss or decrease in sales among one of its top customers[1]. - The company may encounter significant risks related to its Merchant Investment business, including potential losses from investments in special purpose vehicles (SPVs)[82]. - The Merchant Investment business may leverage its capital to achieve higher returns, but this also increases the risk of significant losses[95]. - Investments in non-U.S. securities expose the Merchant Investment business to currency exchange risks and other potential risks not typically associated with U.S. investments[105]. - Credit risk may arise from defaults by large institutions, potentially causing systemic risks that adversely affect financial intermediaries[106]. - The insolvency of prime brokers or custodian banks may result in the loss of a substantial portion of the Merchant Investment business's assets[106]. Financial Results and Expenses - The company reported net income of approximately $432 million for the year ended December 31, 2024, compared to $269 million in 2023, reflecting higher net sales and net investment income[116]. - Total expenses rose by $561, or 18.5%, from $3,032 in 2023 to $3,593 in 2024[192]. - Manufacturing cost of sales increased by $251, or 31.5%, from $796 in 2023 to $1,047 in 2024, primarily due to several contracts with higher cost products[196]. - Engineering, selling, and administrative expenses increased by $310, or 13.9%, from $2,236 in 2023 to $2,546 in 2024, attributed to higher salaries and benefits[196]. - Gross margin decreased by 90 basis points from 53.9% in 2023 to 53.0% in 2024, primarily due to lower margin contracts[192]. Regulatory and Compliance Risks - The company is subject to procurement regulations as a supplier to U.S. Government defense contractors, which may impact its business[1]. - Increased regulation, such as the Dodd-Frank Act, may impose additional burdens and costs on the Merchant Investment business[99][100]. - Future changes in environmental regulations may increase costs and decrease profitability, affecting manufacturing processes and product designs[139]. Cybersecurity and IT Risks - Cybersecurity risk management is based on the NIST framework, with tailored controls to protect the confidentiality, integrity, and availability of systems[163]. - The company relies on IT systems, and any disruption or security breach could adversely affect business operations and financial performance[141]. - Cyber incidents could disrupt operations and compromise confidential information, negatively impacting financial results and business relationships[142]. Market Conditions and Economic Factors - The company’s financial results may be adversely affected by macroeconomic fluctuations, including inflation and changing interest rates[1]. - Inflation in the U.S. decreased from 6.5% at the end of 2023 to 2.9% at the end of 2024, but is expected to remain elevated in 2025, potentially impacting manufacturing costs[110]. - The U.S. Federal Reserve decreased the federal funds rate three times in 2024, resulting in a range from 4.25% to 4.50% as of December 31, 2024, with expectations for further decreases in 2025[111]. Stock and Shareholder Information - Approximately 37.3% of the voting power of the outstanding shares is controlled by officers, directors, and 10% or greater stockholders as of March 14, 2025, which may affect management decisions[146]. - The company is classified as a "smaller reporting company," with a market value of less than $250 million as of June 30, 2023, leading to simplified disclosure requirements[154]. - The common stock price fluctuated between $6.58 and $5.05 from January 1, 2024, to December 31, 2024, indicating significant volatility due to limited trading volume[143]. - The warrants to purchase shares of common stock have an adjusted exercise price of $4.75 and may not have any value if the market price does not exceed this amount by the expiration date of November 16, 2025[148].

Core Points - The LGL Group, Inc. announced that the warrants to purchase shares of its common stock, granted on November 16, 2020, are now exercisable until November 16, 2025 [1][2] - The warrants became exercisable after the average volume weighted average price (VWAP) exceeded $6.65 for 30 consecutive trading days, which occurred on March 4, 2025 [2] - The company encourages warrant holders to review the original Warrant Agreement and FAQs available on their website for further details [3] Company Overview - The LGL Group, Inc. is a holding company involved in services, merchant investment, and manufacturing activities, with a focus on precision time and frequency instruments through its subsidiary, Precise Time and Frequency, LLC [4][6] - Founded in 2002, Precise Time and Frequency operates from a facility in Wakefield, Massachusetts, and is recognized as a global producer of industrial electronic instruments [4] - The company has a long history dating back to 1928, originally incorporated as Lynch Glass Machinery Company, and has evolved through various business operations in precision engineering and manufacturing [5][6]

Core Viewpoint - The LGL Group, Inc. reported mixed financial results for the third quarter and year-to-date 2024, with total revenues increasing but net income decreasing compared to the same periods in 2023 [2][3][4]. Financial Performance - Total revenues for Q3 2024 increased by $201,000 to $1,179,000, up 20.6% from $978,000 in Q3 2023 [2][20]. - Year-to-date revenues for 2024 rose by $452,000 to $3,135,000, reflecting a 16.8% increase from $2,683,000 in the same period of 2023 [3][23]. - Net income attributable to LGL Group common stockholders for Q3 2024 was $72,000, or $0.01 per diluted share, down from $108,000, or $0.02 per diluted share in Q3 2023 [4][18]. - Year-to-date net income increased to $230,000, or $0.04 per diluted share, compared to $135,000, or $0.03 per diluted share in 2023, marking a 70.4% increase [6][23]. Cost and Margin Analysis - Gross margin for Q3 2024 decreased to 43.4% from 55.5% in Q3 2023, primarily due to sales of lower-margin products [6][7]. - Year-to-date gross margin also declined to 50.0% from 53.6% in 2023, reflecting similar challenges [7]. Operational Insights - The order backlog as of September 30, 2024, was $505,000, significantly up from $143,000 at the end of 2023 and $313,000 a year earlier, indicating strong future demand [8]. - Cash and cash equivalents, along with marketable securities, totaled $41,618,000 as of September 30, 2024, showing a solid liquidity position [3][9]. Segment Performance - In Q3 2024, revenues from Electronic Instruments rose by 48.4% to $650,000, while Merchant Investment revenues increased by 10.8% to $318,000 [20]. - Corporate segment revenues decreased by 16.6% to $211,000 in Q3 2024 [20]. Expense Overview - Total expenses for Q3 2024 increased by 33.6% to $1,041,000, driven by higher manufacturing costs and increased engineering, selling, and administrative expenses [20][21]. - Manufacturing costs rose to $368,000 in Q3 2024 from $195,000 in Q3 2023, reflecting higher-cost product sales [4][20].

Revenue Growth - Total revenues increased by $201, or 20.6%, from $978,000 for Q3 2023 to $1,179,000 for Q3 2024, primarily driven by a $212, or 48.4%, increase in net sales [110]. - Net sales for the nine months ended September 30, 2024, increased by $291, or 22.7%, from $1,282,000 in 2023 to $1,573,000 in 2024, attributed to higher product shipments [116]. - For the three months ended September 30, 2024, net sales in the Electronic Instruments segment reached $650 million, reflecting a $212 million or 48.4% increase from $438 million in the same period of 2023 [123]. Investment Income - Net investment income rose by $551, or 54.2%, from $1,017,000 for the nine months ended September 30, 2023, to $1,568,000 for the same period in 2024, due to investments in higher yielding U.S. Treasury money market funds [116]. - Net investment income in the Merchant Investment segment for the three months ended September 30, 2024, was $318 million, a $31 million or 10.8% increase from $287 million in the same period of 2023 [128]. - For the nine months ended September 30, 2024, net investment income in the Merchant Investment segment was $922 million, a $380 million or 70.1% increase from $542 million in the same period of 2023 [130]. Expenses and Costs - Total expenses increased by $315, or 13.3%, from $2,366,000 for the nine months ended September 30, 2023, to $2,681,000 for the same period in 2024 [118]. - Manufacturing cost of sales for the nine months ended September 30, 2024, increased by $191, or 32.1%, from $595,000 in 2023 to $786,000 in 2024, consistent with revenue growth and sales of higher-cost products [118]. - Income from continuing operations before income taxes in the Electronic Instruments segment decreased by $26 million or 37.1%, from $70 million to $44 million, primarily due to an $173 million or 88.7% increase in manufacturing costs [124]. Profitability - Net income attributable to LGL Group common stockholders increased by $95, or 70.4%, from $135,000 for the nine months ended September 30, 2023, to $230,000 for the same period in 2024 [116]. - Income from continuing operations before income taxes increased by $137, or 43.2%, from $317,000 for the nine months ended September 30, 2023, to $454,000 for the same period in 2024 [118]. - Income from continuing operations before income taxes in the Merchant Investment segment increased by $5 million or 2.2%, from $223 million to $228 million [129]. Taxation - Income tax expense for the nine months ended September 30, 2024, increased by $28, or 21.2%, from $132,000 in 2023 to $160,000 in 2024, primarily due to the increase in income from continuing operations [120]. - Net income attributable to non-controlling interests increased by $42, or 190.9%, from $22,000 for the nine months ended September 30, 2023, to $64,000 for the same period in 2024, primarily due to the consolidation of LGL Systems [120]. Order Backlog - As of September 30, 2024, the order backlog increased to $505 million, a rise of $362 million or 253.1% from $143 million as of December 31, 2023 [121]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2024, were $41,602 million, compared to $40,711 million as of December 31, 2023 [139]. - Cash provided by operating activities for the period ended September 30, 2024, was $891 million, an increase from $454 million in the same period of 2023 [140]. - Current assets as of September 30, 2024, were $42,274, while current liabilities were $739, resulting in working capital of $41,535, an increase from $41,092 as of December 31, 2023 [142]. Dividends and Capital Policy - The company maintains a policy of not paying cash dividends, with no dividends paid since January 30, 1989, to support long-term growth objectives [145]. - Existing cash, cash equivalents, and marketable securities are expected to provide sufficient liquidity for ongoing working capital and capital expenditure requirements for the next 12 months [144]. Financial Controls and Legal Proceedings - The company’s disclosure controls and procedures were deemed effective as of September 30, 2024, following an evaluation by management [150]. - No changes in internal control over financial reporting were reported during the quarter ended September 30, 2024 [151]. - The company is not aware of any material pending legal proceedings, other than ordinary routine litigation incidental to its business [151].

Revenue Growth - Total revenues increased by $201,000 to $1,179,000 for Q3 2024 compared to $978,000 for Q3 2023, representing a growth of approximately 20.5%[2] - For the nine months ended September 30, 2024, total revenues increased by $452,000 to $3,135,000 from $2,683,000 in the same period of 2023, a growth of approximately 16.8%[3] - Total revenues for the quarter ended September 30, 2024, increased by 20.6% to $1,179,000 compared to $978,000 in the same quarter of 2023[23] - Electronic Instruments segment revenue rose by 48.4% to $650,000 from $438,000 year-over-year[23] - Merchant Investment segment revenue increased by 10.8% to $318,000 compared to $287,000 in the prior year[23] Net Income - Net income attributable to LGL Group common stockholders decreased to $72,000, or $0.01 per diluted share, down from $108,000, or $0.02 per diluted share in Q3 2023, reflecting a decline of 33.3%[4] - Net income for the nine months ended September 30, 2024, increased to $230,000, or $0.04 per diluted share, compared to $135,000, or $0.03 per diluted share in 2023, marking a growth of 70.4%[7] - Net income attributable to LGL Group common stockholders decreased by 33.3% to $72,000 from $108,000 year-over-year[22] - Net income from continuing operations increased by 58.9% to $294,000 compared to $185,000 in the previous year[26] Expenses - Total expenses for the quarter were $1,041,000, up 33.6% from $779,000 in the same quarter of 2023[23] - Manufacturing cost of sales increased to $368,000 in Q3 2024 from $195,000 in Q3 2023, driven by higher-cost product sales[4] - Engineering, selling, and administrative expenses rose to $673,000 in Q3 2024 from $584,000 in Q3 2023, attributed to changes in headcount and increased wages[4] Financial Position - Cash and cash equivalents and marketable securities totaled $41,618,000 as of September 30, 2024, reflecting a stable liquidity position[3] - Total current assets as of September 30, 2024, were $42,274,000, an increase from $41,566,000 at December 31, 2023[21] - Total liabilities increased to $1,482,000 from $1,168,000 at the end of the previous year[21] - Stockholders' equity rose to $41,003,000 from $40,682,000 at December 31, 2023[21] Order Backlog and Demand - As of September 30, 2024, the order backlog was $505,000, an increase of $362,000 from $143,000 as of December 31, 2023, indicating strong demand[10] Strategic Initiatives - The company is actively pursuing investment opportunities and has welcomed a new team member to drive strategy forward[3] Segment Performance - Income from continuing operations before income taxes for the Electronic Instruments segment was $44,000, down 37.1% from $70,000[22]

Core Viewpoint - LGL Group, Inc. will participate in the Sidoti September Virtual Investor Conference, presenting its management team and hosting one-on-one meetings with investors on September 18-19, 2024 [1][2]. Group 1: Company Overview - LGL Group, Inc. is a holding company involved in services, merchant investment, and manufacturing activities, with a focus on industrial electronic instruments and commercial products through its subsidiary, Precise Time and Frequency, LLC [4]. - The company has a long history dating back to 1917, originally established as Lynch Glass Machinery Company, and has evolved through various business operations in precision engineering and manufacturing [5][6]. Group 2: Business Strategy - LGL Group's business strategy emphasizes growth by expanding both new and existing operations across diversified industries [5]. - The company has been listed on the NYSE American since 1946, indicating a long-standing presence in the public markets [5][6]. Group 3: Event Details - The presentation at the Sidoti conference will commence at 9:15 am Eastern Time on September 18, 2024, and will be accessible via a live webinar [2]. - Registration for the event is free and open to all interested parties, not limited to Sidoti clients [2].

Core Viewpoint - The LGL Group, Inc. reported significant improvements in financial performance for the second quarter and the first half of 2024, with increases in revenues, net income, and gross margins compared to the same periods in 2023 [2][3][4]. Financial Performance - Total revenues for Q2 2024 increased by $347,000 to $1,068,000, up 48.1% from $721,000 in Q2 2023 [2][18]. - For the first half of 2024, total revenues rose by $251,000 to $1,956,000, a 14.7% increase from $1,705,000 in the same period of 2023 [3][19]. - Net income available to common stockholders for Q2 2024 was $137,000, or $0.02 per diluted share, compared to a net loss of $130,000, or ($0.02) per diluted share, in Q2 2023 [4][13]. - For the first half of 2024, net income available to common stockholders was $158,000, or $0.03 per diluted share, compared to $27,000, or $0.01 per diluted share, in the first half of 2023 [5][19]. Gross Margin - Gross margin for Q2 2024 increased to 59.7% from 48.4% in Q2 2023, attributed to higher sales of higher-margin products [5][6]. - For the first half of 2024, gross margin was 54.7%, up from 52.6% in the same period of 2023, reflecting increased sales of higher-margin products [6]. Backlog and Liquidity - As of June 30, 2024, the order backlog was $737,000, an increase of $594,000 from $143,000 as of December 31, 2023, and an increase of $413,000 from $324,000 as of June 30, 2023 [7]. - Cash and cash equivalents, along with marketable securities, totaled $41,092,000 as of June 30, 2024 [3][8]. Segment Performance - Revenues from the Electronic Instruments segment for Q2 2024 were $531,000, a 31.8% increase from $403,000 in Q2 2023 [18]. - The Merchant Investment segment reported revenues of $315,000 for Q2 2024, a significant increase as it had no revenues in Q2 2023 [18]. - Corporate revenues decreased by 30.2% to $222,000 in Q2 2024 from $318,000 in Q2 2023 [18].

Revenue Growth - Total revenues increased by $347,000 to $1,068,000 for Q2 2024 compared to $721,000 in Q2 2023, representing a 48.2% increase[2] - For the six months ended June 30, 2024, total revenues increased by $251,000 to $1,956,000 from $1,705,000 in the same period of 2023[2] - Total revenues for Q2 2024 reached $1,068,000, a 48.1% increase from $721,000 in Q2 2023[16] - For the first half of 2024, total revenues were $1,956,000, a 14.7% increase from $1,705,000 in the first half of 2023[18] Net Income and Profitability - Net income available to LGL Group common stockholders was $137,000, or $0.02 per diluted share, compared to a net loss of $130,000, or ($0.02) per diluted share in Q2 2023[3] - Net income attributable to LGL Group common stockholders was $137,000, compared to a loss of $130,000 in Q2 2023, representing a $267,000 improvement[16] - Net income for the first half of 2024 was $204,000, a significant increase of 655.6% from $27,000 in the first half of 2023[20] Gross Margin - Gross margin improved to 59.7% for Q2 2024, up from 48.4% in Q2 2023, driven by higher sales of higher margin products[4] - The gross margin for the six months ended June 30, 2024, was 54.7%, up from 52.6% in the same period of 2023[5] Order Backlog - As of June 30, 2024, the order backlog was $737,000, an increase of $594,000 from $143,000 as of December 31, 2023[6] Cash Position - Cash and cash equivalents and marketable securities totaled $41,092,000 as of June 30, 2024, reflecting a strong liquidity position[2] Segment Performance - Electronic Instruments segment revenue increased by 31.8% to $531,000 from $403,000 year-over-year[16] - Merchant Investment segment generated $315,000 in revenue, a new contribution as it had no revenue in the same quarter last year[16] - Electronic Instruments revenue for the first half of 2024 was $923,000, up 9.4% from $844,000 in the same period last year[18] Expenses - Total expenses decreased by 2.6% to $831,000 from $853,000 year-over-year[16] - Total expenses for the first half of 2024 increased by 3.3% to $1,640,000 from $1,587,000[19] Corporate Segment - The Corporate segment reported a loss of $74,000 in Q2 2024, an improvement of 51.9% from a loss of $154,000 in Q2 2023[16] Investment Opportunities - The company is actively pursuing investment opportunities to enhance shareholder value within its Merchant Investment segment[2]

Revenue and Sales Performance - Total revenues increased by $347, or 48.1%, from $721,000 for the three months ended June 30, 2023, to $1,068,000 for the same period in 2024[100]. - Net sales rose by $128, or 31.8%, from $403,000 in Q2 2023 to $531,000 in Q2 2024, primarily due to higher product shipments[100]. - Total revenues for the six months ended June 30, 2024, increased by $251, or 14.7%, from $1,705,000 in 2023 to $1,956,000 in 2024[107]. Investment Income - Net investment income surged by $263, or 95.6%, from $275,000 in Q2 2023 to $538,000 in Q2 2024, driven by investments in higher yielding U.S. Treasury money market funds[100]. - Net investment income for the six months ended June 30, 2024, rose by $564, or 119.2%, from $473,000 in 2023 to $1,037,000 in 2024[107]. - Net investment income for the three months ended June 30, 2024, was $315 million, reflecting the commencement of operations of Lynch Capital International, LLC in June 2023[118]. - For the six months ended June 30, 2024, net investment income was $604 million, also due to the commencement of operations of Lynch Capital International, LLC[119]. Expenses and Income - Total expenses decreased by $22, or 2.6%, from $853,000 for the three months ended June 30, 2023, to $831,000 for the same period in 2024[101]. - Total expenses for the six months ended June 30, 2024, increased by $53, or 3.3%, from $1,587,000 in 2023 to $1,640,000 in 2024[108]. - Income tax expense for the six months ended June 30, 2024, increased by $49, or 77.8%, from $63,000 in 2023 to $112,000 in 2024, primarily due to the increase in income from continuing operations[110]. - Net income attributable to LGL Group common stockholders increased by $267,000, from a loss of $130,000 in Q2 2023 to a profit of $137,000 in Q2 2024[99]. Order Backlog and Operations - As of June 30, 2024, the order backlog was $737 million, an increase of $594 million or 415.4% from $143 million as of December 31, 2023, and an increase of $413 million or 127.5% from $324 million as of June 30, 2023[112]. - Income from continuing operations before income taxes increased by $52 or 236.4% from $22 for the three months ended June 30, 2023, to $74 for the three months ended June 30, 2024, driven by a $128 million or 31.8% increase in net sales[115]. - For the six months ended June 30, 2024, income from continuing operations before income taxes decreased by $18 or 19.1% from $94 to $76, primarily due to a $79 million or 22.6% increase in engineering, selling, and administrative expenses[116]. Cash and Liquidity - Cash and cash equivalents as of June 30, 2024, were $41,074 thousand, compared to $40,711 thousand as of December 31, 2023[125]. - Cash provided by operating activities was $363 thousand for the six months ended June 30, 2024, compared to cash used in operating activities of $9 thousand for the same period in 2023, an increase of $372 thousand[127]. - Current assets increased to $42,003,000 as of June 30, 2024, compared to $41,566,000 on December 31, 2023[128]. - Working capital rose to $41,382,000 from $41,092,000 during the same period[128]. - Current ratio decreased to 67.6 from 87.7, indicating a tighter liquidity position[128]. - The company believes existing cash and cash equivalents will provide sufficient liquidity for the next 12 months[130]. Corporate Segment and Dividends - Total revenues for the corporate segment decreased by $432 thousand or 50.2% for the six months ended June 30, 2024, compared to the same period in 2023[123]. - Loss from continuing operations before income taxes for the six months ended June 30, 2024, was $(237) thousand, a decrease of $261 thousand or 1087.5% from $24 thousand for the same period in 2023[123]. - The company has not paid cash dividends since January 30, 1989, and none are expected in the foreseeable future[130]. Management and Strategy - Management continues to focus on efficiently managing working capital to generate the greatest returns[128]. - The company adheres to a long-term growth strategy, prioritizing investments for organic growth and potential acquisitions[130]. - There have been no material changes in contractual obligations as of June 30, 2024, compared to December 31, 2023[131]. - No quantitative and qualitative disclosures about market risk were applicable[133].