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].

Core Viewpoint - The LGL Group, Inc. reported a decline in total revenues and net income for the first quarter of 2024 compared to the same period in 2023, while highlighting improvements in order backlog and investment strategies [3][4]. Financial Performance - Total revenues decreased by $96,000 to $888,000 for Q1 2024 from $984,000 in Q1 2023, representing a decline of 9.8% [3][19]. - Net income attributable to LGL Group common stockholders was $21,000, or $0.00 per diluted share, down from $157,000, or $0.03 per diluted share, in Q1 2023, marking an 86.6% decrease [4][19]. - Income from continuing operations before income taxes decreased by $171,000 to $79,000 for Q1 2024 from $250,000 in Q1 2023, a decline of 68.4% [19]. Revenue Breakdown - Revenue from the Electronic Instruments segment decreased by $49,000 to $392,000, a decline of 11.1% compared to Q1 2023 [19]. - The Merchant Investment segment generated $289,000 in revenue, a new addition as it did not report revenue in the previous year [19]. - Corporate revenues fell by $336,000 to $207,000, a decrease of 61.9% compared to Q1 2023 [19]. Expenses and Margins - Total expenses increased by $75,000 to $809,000 in Q1 2024, a rise of 10.2% from $734,000 in Q1 2023 [19]. - Gross margin declined to 48.0% in Q1 2024 from 56.5% in Q1 2023, attributed to a lower margin product mix and higher labor costs [6]. Backlog and Liquidity - As of March 31, 2024, the order backlog increased by $198,000 to $341,000 from $143,000 as of December 31, 2023, indicating a positive trend in future sales [6]. - Current assets were reported at $41,687,000 as of March 31, 2024, compared to $41,566,000 as of December 31, 2023 [2][17]. Investment Strategy - The company is focusing on improving its order backlog and is actively seeking value-added investment opportunities, particularly in U.S. Treasury money market funds [3][5].

Financial Performance - First quarter 2024 net income attributable to LGL Group common stockholders was $21,000, or $0.00 per diluted share, a decrease from $157,000, or $0.03 per diluted share in Q1 2023[3] - Total revenues decreased by $96,000 to $888,000 for the three months ended March 31, 2024, compared to $984,000 for the same period in 2023, representing a decline of 9.8%[6] - Income from continuing operations before income taxes decreased by $171,000 to $79,000 for Q1 2024, down from $250,000 in Q1 2023, a decline of 68.4%[19] - Net income from continuing operations decreased by 76.8% to $43,000 in Q1 2024, down from $185,000 in Q1 2023[19] Margins and Expenses - Gross margin declined to 48.0% for Q1 2024, down from 56.5% in Q1 2023, due to a lower margin product mix and higher labor costs[4] - Engineering, selling, and administrative expenses increased to $605,000 in Q1 2024, up from $542,000 in Q1 2023, reflecting a rise of 11.6%[19] Order Backlog and Assets - As of March 31, 2024, the order backlog increased to $341,000, up from $143,000 as of December 31, 2023, indicating a growth of 138.5%[5] - Cash and cash equivalents and marketable securities totaled $40.9 million as of March 31, 2024, compared to $40.7 million at the end of 2023[6] - The company had total current assets of $41.7 million as of March 31, 2024, compared to $41.6 million at the end of 2023[17] Segment Performance - The Electronic Instruments segment reported revenues of $392,000, a decrease of 11.1% from $441,000 in Q1 2023[19]

For the transition period from ____________ to ____________ Commission File No. 001-00106 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate by check mark whether the registrant: (1) has filed all reports required ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to ______________________ Commission file number: 001-00106 The LGL Group, Inc. (Exact name of Registrant as Specified in Its Charter) Dela ...

Financial Performance - Total revenues for the electronic instruments segment were $438,000 for the three months ended September 30, 2023, representing a 27.3% increase from $344,000 for the same period in 2022[92] - The electronic instruments segment reported an operating income of $70,000 for the three months ended September 30, 2023, compared to an operating loss of $39,000 for the same period in 2022[95] - Net income attributable to LGL Group was $108,000 for the three months ended September 30, 2023, compared to losses of $1,459,000 for the same period in 2022[104] - Consolidated gross margin increased to 55.5% for the three months ended September 30, 2023, up from 41.0% for the same period in 2022, reflecting changes in product mix[93] Order Backlog - As of September 30, 2023, the order backlog for the electronic instruments segment was $313,000, a decrease of 13.1% from $360,000 at December 31, 2022, but an increase of 144.5% compared to $128,000 as of September 30, 2022[91] Cash and Investments - Cash and cash equivalents increased to $40,777,000 as of September 30, 2023, from $21,507,000 as of December 31, 2022[105] - Cash provided by investing activities for the nine months ended September 30, 2023 was $18,816,000, reflecting the sale of investments and a shift to U.S. Treasury money market funds[106] - The company aims to invest available cash and cash equivalents in liquid investments to enhance returns while assessing further acquisitions[107] - The company believes existing cash, cash equivalents, and marketable securities will provide sufficient liquidity for the next 12 months[107] Interest Income - The merchant investment segment reported $287,000 of interest income during the three months ended September 30, 2023, and $542,000 during the nine months ended September 30, 2023[96] - Corporate interest income was $257,000 for the three months ended September 30, 2023, compared to $52,000 for the same period in 2022, driven by higher interest rates[98] Tax and Expenses - The company recorded a tax expense of $69,000 for the three months ended September 30, 2023, compared to a tax benefit of $648,000 for the same period in 2022[101] Working Capital - As of September 30, 2023, consolidated working capital was $40,891,000, an increase from $38,753,000 as of December 31, 2022[107] - Current assets as of September 30, 2023, were $41,502,000, with current liabilities of $611,000, resulting in a current assets to current liabilities ratio of 67.92 to 1.00[107] Dividends - The company has not paid cash dividends since January 30, 1989, and none are expected to be paid in the foreseeable future[108] Economic Conditions - Inflation in the U.S. is expected to remain elevated, potentially impacting manufacturing costs and administrative expenses[112] - The U.S. Federal Reserve raised the federal funds rate a total of eleven times from 2022 to 2023, currently ranging from 5.25% to 5.50%[112] - Rising interest rates are anticipated to benefit the company due to a significant portion of its portfolio being invested in U.S. Treasury money market funds[112] - There are no material trends or uncertainties expected to significantly impact revenues or income, aside from national economic conditions[111] Acquisitions - The company continues to evaluate potential acquisitions and investments in operating businesses[107]

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File No. 001-00106 THE LGL GROUP, INC. (Exact Name of Registrant as Specified in Its Charter) Delawar ...

Financial Performance - Total revenues for the three months ended March 31, 2023, were $441,000, reflecting a 5.8% increase from $417,000 for the same period in 2022[84]. - Consolidated gross margin increased to 56.5% for the three months ended March 31, 2023, up from 42.0% for the same period in 2022[85]. - The company reported an operating loss of $309,000 for the three months ended March 31, 2023, an improvement from an operating loss of $847,000 for the same period in 2022[87]. - Net income was $157,000 for the three months ended March 31, 2023, compared to $169,000 for the same period in 2022[93]. Income and Expenses - Interest income was $198,000 for the three months ended March 31, 2023, compared to interest expense of $4,000 for the same period in 2022[88]. - Investment income increased to $345,000 for the three months ended March 31, 2023, compared to $45,000 for the same period in 2022[89]. - Total other income was $531,000 for the three months ended March 31, 2023, significantly up from $42,000 for the same period in 2022[90]. Order Backlog and Working Capital - As of March 31, 2023, the order backlog was $399,000, an increase of 10.8% from $360,000 at December 31, 2022, and an increase of 138.9% compared to $167,000 as of March 31, 2022[83]. - Consolidated working capital was $38.799 million as of March 31, 2023, compared to $38.753 million as of December 31, 2022[96]. Cash Position - Cash and cash equivalents as of March 31, 2023, were $21.5 million, slightly down from $21.507 million as of December 31, 2022[94].

Financial Position - As of December 31, 2022, LGL had cash and cash equivalents and marketable securities with a fair market value of approximately $38.1 million[18]. - As of December 31, 2022, the company had investments in cash and marketable securities with a fair market value of approximately $38.1 million[84]. - The company reported a net loss of approximately $2,992,000 for the year ended December 31, 2022, compared to a net income of $14,638,000 for 2021, indicating significant fluctuations in financial performance[122]. - The company recorded a tax benefit of $1,529,000 for 2022, compared to an expense of $3,472,000 for 2021, largely influenced by investment losses from marketable securities[207]. - Interest income, net for 2022 was $194,000, significantly higher than $1,000 for 2021, due to increased interest rates and cash proceeds from prior stock sales[198]. - The company has not paid cash dividends since January 30, 1989, and none are expected to be paid for the foreseeable future[179]. - The company has repurchased a total of 81,584 shares of common stock at a cost of $580,000 under its share repurchase program[178]. Business Operations - LGL's manufacturing subsidiary, PTF, focuses on high-performance frequency and time reference standards for applications including satellite communication and network synchronization[15]. - PTF offers a comprehensive portfolio of time and frequency instrumentation, including NTP servers and RF distribution amplifiers[15]. - The company aims to expand operations through opportunistic acquisitions and strategic partnerships[21]. - The company is currently dependent on a single line of manufacturing business following the Spin-Off of MtronPTI on October 7, 2022, which increases vulnerability to market demand changes[119]. - The company’s business is not seasonal, although shipment schedules may be affected by customer production schedules[47]. - The company has developed long-term real-time synchronization capability of less than 10 nanoseconds, with multiple systems delivered to date[34]. - The latest product developments target the rapidly growing Precision Time Protocol (PTP) market, utilizing Ethernet networks for accurate time and frequency reference signals[43]. - The company’s distribution amplifiers cover multiple signal types and are designed for cost-effective performance solutions, including options for remote monitoring[35]. Investment Strategy - LGL's investment strategy includes identifying undervalued companies and enhancing returns through management and operational changes[19]. - The company has a history of acquiring businesses, having acquired 32 companies and sold 11 since 1985[11]. - LGL's investment business includes various private investment funds, primarily not offered to outside investors[16]. - The company invested $3.35 million for a 20% ownership stake in LGL Systems Acquisition Holding Company, a SPAC focused on aerospace and defense[23]. - The company invested $6.1 million in LGL Systems Acquisition Holdings, LLC, which later completed a business combination with IronNet Cybersecurity, Inc.[86]. - The company plans to form new direct investment vehicles to replace SPACs, focusing on the manufacturing sector for growth opportunities[60]. Revenue and Customer Concentration - In 2022, the largest customer accounted for 18.9% and the second largest for 11.8% of total revenues, with the top seven customers contributing approximately 65% of total revenue[40]. - International revenues reached $460,000 in 2022, representing 27.8% of total consolidated revenues, an increase from $308,000 or 21.3% in 2021[45]. - The order backlog was $360,000 as of December 31, 2022, slightly up from $358,000 in 2021, indicating stable demand[48]. - The company's order backlog may not be indicative of future revenues, creating uncertainty in revenue projections[10]. - The majority of the company's revenues in 2022 and 2021 were derived from sales to manufacturers in the defense, aerospace, instrumentation, and industrial markets, which are cyclical and subject to fluctuations in demand[124]. Market and Economic Risks - The company may experience adverse effects from macroeconomic fluctuations, inflation, and rising interest rates[10]. - The company is subject to procurement regulations as a supplier to U.S. Government defense contractors, which could impact operations[10]. - The company may face significant risks related to its investment business, including potential losses from investments in special purpose acquisition companies (SPACs)[89]. - The company’s markets are highly competitive, and it may lose business to larger and better-financed competitors[10]. - The company may face substantial tax liabilities if the spin-off is determined to be taxable, affecting both the company and its stockholders[164]. - The spin-off may not achieve the expected strategic and financial benefits, potentially leading to adverse effects on the company's business and financial condition[163]. - The company faces challenges related to the COVID-19 pandemic, including higher raw material prices and disruptions in global supply chains, which may adversely affect operations and financial performance[118]. Financial Performance - Total revenues for 2022 were $1,655,000, an increase of $209,000, or 14.5%, from $1,446,000 in 2021, driven by strong performance in defense and communication markets[194]. - Consolidated gross margin for 2022 was 49.4%, down from 50.8% in 2021, impacted by inflationary cost pressures[194]. - The company reported an operating loss of $2,047,000 for 2022, an improvement from an operating loss of $3,521,000 in 2021[197]. - Net loss for 2022 was $2,992,000, compared to net income of $14,638,000 for 2021, primarily due to realized and unrealized losses on marketable securities[209]. - Unrealized gain on marketable securities for 2022 was $18,121,000, compared to a $22,949,000 unrealized loss in 2021[202]. Regulatory and Compliance - The company is required to comply with the Sarbanes-Oxley Act, which mandates effective internal control over financial reporting[146]. - The company is subject to environmental regulations that may increase costs and affect profitability, requiring potential changes in manufacturing processes[142]. - Cybersecurity risks could disrupt operations and negatively impact financial results, highlighting the importance of robust information security measures[145]. - The regulatory environment is subject to changes that could adversely affect the Investment business's operations and profitability[105]. Shareholder and Stock Information - As of March 31, 2023, officers, directors, and 10% or greater stockholders control approximately 37.5% of the voting power of the outstanding shares[150]. - The common stock price fluctuated significantly, with a high of $15.00 and a low of $3.94 from January 1, 2022, to December 31, 2022[149]. - The market for the common stock is limited, making it difficult for holders to sell shares without impacting the market price[149]. - The warrants to purchase shares of common stock have an adjusted exercise price of $4.75, with a trigger price for potential acceleration set at $6.65[155]. - The company has not opted out of the restrictions under Section 203 of the Delaware General Corporation Law, which could affect future mergers or acquisitions[154]. Risks Related to Investments - The Investment business may leverage capital to achieve higher returns, but this also increases the risk of significant losses[99]. - The use of short-term margin borrowings can lead to margin calls if the value of pledged securities declines[100]. - The Investment business may invest in distressed securities, which carry substantial financial and legal risks, potentially leading to total losses[108]. - Investments in non-U.S. securities expose the Investment business to additional risks, including currency exchange risks and political instability[110]. - The ability to hedge investments successfully is subject to numerous risks, including market fluctuations and the effectiveness of hedging strategies[106][107]. - The Investment business may engage in short-selling, which carries theoretically unlimited risk of loss due to price appreciation of the underlying security[112].