v3.26.1
Note 3 - Segment Information
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

3. Segment Information

 

Chief Operating Decision Maker

 

The Company's chief operating decision maker ("CODM") is the Chief Executive Officer.

 

Reportable Segments

 

The Company reports its results from operations consistent with the manner in which the CODM reviews the business to assess performance and allocation resources. As such, the Company reports its results in two business segments: Electronic Instruments and Merchant Investment. A brief description of each segment is below:

 

The Electronic Instruments segment includes all products manufactured and sold by PTF.

 

The Merchant Investment segment includes all activity produced by Lynch Capital International, LLC ("Lynch Capital").

 

The Company includes in Corporate the following corporate and business activities:

 

•

corporate level assets and financial obligations such as cash and cash equivalents invested in highly liquid U.S. Treasury money market funds and other marketable securities;

 

•

other items not allocated to or directly related to the Company's operating segments, including items such as deferred tax balances; and

 

•

intercompany eliminations.

 

Measure of Segment Profit or Loss and Segment Assets

 

The accounting policies used in both the Electronic Instruments and Merchant Investment segments are the same as those described in Note 2 – Summary of Significant Accounting Policies.

 

The CODM assess the performance of and decide how to allocate resources to each reporting segment based on Segment profit (loss), which is total revenues less Manufacturing cost of sales and Engineering, selling, and administrative. The CODM uses Segment profit (loss) to evaluate the overall profitability of the Electronic Instruments, Merchant Investment, and Corporate segments. Additionally, the CODM uses Segment profit (loss) to allocate resources in the annual budgeting and forecasting process. The CODM considers budget-to-actual variances when making decisions about allocating capital to each segment.

 

The measure of segment assets is reported on the Condensed Consolidated Balance Sheets as consolidated Total assets. The CODM uses Total assets of each segment to allocate overhead expenses incurred by the Corporate segment.

 

 

 

The following tables present LGL Group's operations by segment:

  

Three Months Ended March 31, 2026

  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Consolidated

Revenues:

                

Net sales

 $682  $—  $—  $682 

Net investment income

  —   223   166   389 

Net gains

  —   —   14   14 

Total revenues

  682   223   180   1,085 
                 

Less:

                

Manufacturing cost of sales

  334   —   —   334 

Engineering

  90   —   —   90 

Commissions

  25   —   —   25 

Sales and marketing

  63   —   —   63 

Accounting

  —   —   70   70 

Compensation

  58   —   813   871 

Corporate allocations (a)

  16   125   (141)  — 

Other segment items (b)

  79   —   338   417 

Engineering, selling and administrative

  331   125   1,080   1,536 

Total expenses

  665   125   1,080   1,870 

Segment profit (loss)

 $17  $98  $(900) $(785)
                 

Reconciliation of Segment profit (loss) to Income (loss) before income taxes

 

Adjustments and reconciling items

              — 

Loss before income taxes

          $(785)

 

  

Three Months Ended March 31, 2025

  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Consolidated

Revenues:

                

Net sales

 $498  $—  $—  $498 

Net investment income

  —   247   170   417 

Net gains

  —   —   3   3 

Total revenues

  498   247   173   918 
                 

Less:

                

Manufacturing cost of sales

  237   —   —   237 

Engineering

  57   —   —   57 

Commissions

  19   —   —   19 

Sales and marketing

  57   —   —   57 

Accounting

  —   —   75   75 

Compensation

  56   —   192   248 

Corporate allocations (a)

  11   93   (104)  — 

Other segment items (b)

  42   1   141   184 

Engineering, selling and administrative

  242   94   304   640 

Total expenses

  479   94   304   877 

Segment profit (loss)

 $19  $153  $(131) $41 
                 

Reconciliation of Segment profit (loss) to Income (loss) before income taxes

 

Adjustments and reconciling items

              — 

Income before income taxes

          $41 

(a)

The Electronic Instruments and Merchant Investment segments are allocated overhead expenses from the Corporate segment based on each segment's asset as a percentage of Total assets.

(b)

Other segment items for each reportable segment includes the following:

 Electronic Instruments - rent, amortization, professional service fees, and certain other overhead expenses.
 Merchant Investment - legal expense and certain other overhead expenses.
 Corporate - legal expense, insurance expense, filing fees, fees paid to M-tron Industries, Inc. under Amended and Restated Transitional Administrative and Management Services Agreement, expense reimbursements paid to / received from M-tron Industries, Inc., and certain other overhead expenses.

 

 

 

Other Segment Disclosures

 

The following tables presents other segment information by segment for the three months ended March 31, 2026 and 2025:

  

Three Months Ended March 31, 2026

  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Total

 

Adjustments and Reconciling Items

 

Consolidated

Interest revenue (a)

 $—  $223  $166  $389  $—  $389 

Amortization (b)

  6   —   —   6   —   6 

Other significant non-cash items

                        

Stock-based compensation (c)

  —   —   688   688   —   688 
                         

Capital expenditures

  —   —   —   —   —   — 

 

  

Three Months Ended March 31, 2025

  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Total

 

Adjustments and Reconciling Items

 

Consolidated

Interest revenue (a)

 $—  $247  $170  $417  $—  $417 

Amortization (b)

  6   —   —   6   —   6 

Other significant non-cash items

                        

Stock-based compensation (c)

  —   —   9   9   —   9 
                         

Capital expenditures

  —   —   —   —   —   — 

(a)

Interest revenue is included in Net investment income on the Condensed Consolidated Statements of Operations.

(b)

Amortization is included within the other segment expense captions. such as Manufacturing cost of sales, Engineering, or Other segment items.

(c)

Stock-based compensation is included within the Compensation expense caption.

 

The following tables present other segment information by segment as of  March 31, 2026 and December 31, 2025:

  

March 31, 2026

  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Total

 

Adjustments and Reconciling Items

 

Consolidated

Total assets

 $1,303  $25,991  $20,829  $48,123  $—  $48,123 

 

  

December 31, 2025

  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Total

 

Adjustments and Reconciling Items

 

Consolidated

Total assets

 $1,237  $25,768  $19,771  $46,776  $—  $46,776