v3.26.1
Note 3 - Segment Information
 6 Months Ended
Jun. 30, 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 allocate resources. As such, the Company reports its results in two reportable 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.

 

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 assesses the performance of and decides 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 June 30, 2026

  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Consolidated

Revenues:

                

Net sales

 $750  $—  $—  $750 

Net investment income

  —   239   173   412 

Net losses

  —   —   (9)  (9)

Total revenues

  750   239   164   1,153 
                 

Less:

                

Manufacturing cost of sales

  381   —   —   381 

Engineering

  77   —   —   77 

Commissions

  18   —   —   18 

Sales and marketing

  59   —   —   59 

Accounting

  —   —   99   99 

Compensation

  56   —   337   393 

Corporation allocations (a)

  12   168   (180)  — 

Other segment items (b)

  119   34   420   573 

Engineering, selling and administrative

  341   202   676   1,219 

Total expenses

  722   202   676   1,600 

Segment profit (loss)

 $28  $37  $(512) $(447)
                 

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

Adjustments and reconciling items

              — 

Loss before income taxes

          $(447)

 

  

Three Months Ended June 30, 2025

  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Consolidated

Revenues:

                

Net sales

 $491  $—  $—  $491 

Net investment income

  —   262   166   428 

Net gains

  —   —   5   5 

Total revenues

  491   262   171   924 
                 

Less:

                

Manufacturing cost of sales

  211   —   —   211 

Engineering

  57   —   —   57 

Commissions

  21   —   —   21 

Sales and marketing

  35   —   —   35 

Accounting

  —   —   50   50 

Compensation

  52   —   157   209 

Corporation allocations (a)

  11   93   (104)  — 

Other segment items (b)

  36   21   315   372 

Engineering, selling and administrative

  212   114   418   744 

Total expenses

  423   114   418   955 

Segment profit (loss)

 $68  $148  $(247) $(31)
                 

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

Adjustments and reconciling items

              — 

Loss before income taxes

          $(31)

(a)

The Electronic Instruments and Merchant Investment segments are allocated overhead expenses from the Corporate segment based on each segment's assets 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 the Amended and Restated Transitional Administrative and Management Services Agreement, expense reimbursements paid to / received from M-tron Industries, Inc., and certain other overhead expenses.

 

 

 

  

Six Months Ended June 30, 2026

 
  

Electronic Instruments

 

Merchant Investment

  

Corporate

  

Consolidated

 

Revenues:

                

Net sales

 $1,432  $—  $—  $1,432 

Net investment income

  —   462   339   801 

Net gains

  —   —   5   5 

Total revenues

  1,432   462   344   2,238 
                 

Less:

                

Manufacturing cost of sales

  715   —   —   715 

Engineering

  167   —   —   167 

Commissions

  43   —   —   43 

Sales and marketing

  122   —   —   122 

Accounting

  —   —   169   169 

Compensation

  114   —   1,150   1,264 

Corporation allocations (a)

  28   293   (321)  — 

Other segment items (b)

  198   34   758   990 

Engineering, selling and administrative

  672   327   1,756   2,755 

Total expenses

  1,387   327   1,756   3,470 

Segment profit (loss)

 $45  $135  $(1,412) $(1,232)
                 

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

Adjustments and reconciling items

              — 

Loss before income taxes

             $(1,232)

 

  

Six Months Ended June 30, 2025

  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Consolidated

Revenues:

                

Net sales

 $989  $—  $—  $989 

Net investment income

  —   509   336   845 

Net gains

  —   —   8   8 

Total revenues

  989   509   344   1,842 
                 

Less:

                

Manufacturing cost of sales

  448   —   —   448 

Engineering

  114   —   —   114 

Commissions

  40   —   —   40 

Sales and marketing

  92   —   —   92 

Accounting

  —   —   125   125 

Compensation

  108   —   349   457 

Corporation allocations (a)

  22   186   (208)  — 

Other segment items (b)

  78   22   456   556 

Engineering, selling and administrative

  454   208   722   1,384 

Total expenses

  902   208   722   1,832 

Segment profit (loss)

 $87  $301  $(378) $10 
                 

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

Adjustments and reconciling items

              — 

Income before income taxes

             $10 

(a)

The Electronic Instruments and Merchant Investment segments are allocated overhead expenses from the Corporate segment based on each segment's assets 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 the 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 present other segment information by segment for the periods indicated:

  

Three Months Ended June 30, 2026

  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Total

 

Adjustments and Reconciling Items

 

Consolidated

Interest revenue (a)

 $—  $239  $173  $412  $—  $412 

Amortization (b)

  5   —   —   5   —   5 

Other significant non-cash items:

                        

Stock-based compensation (c)

  —   —   160   160   —   160 
                         

Capital expenditures

  —   —   —   —   —   — 

 

  

Three Months Ended June 30, 2025

  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Total

 

Adjustments and Reconciling Items

 

Consolidated

Interest revenue (a)

 $—  $262  $166  $428  $—  $428 

Amortization (b)

  5   —   —   5   —   5 

Other significant non-cash items:

                        

Stock-based compensation (c)

  —   —   17   17   —   17 
                         

Capital expenditures

  —   —   —   —   —   — 

 

 

  

Six Months Ended June 30, 2026

 
  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Total

 

Adjustments and Reconciling Items

 

Consolidated

Interest revenue (a)

 $—  $462  $339  $801  $—  $801 

Amortization (b)

  11   —   —   11   —   11 

Other significant non-cash items:

                        

Stock-based compensation (c)

  —   —   848   848   —   848 
                         

Capital expenditures

  —   —   —   —   —   — 

 

  

Six Months Ended June 30, 2025

  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Total

 

Adjustments and Reconciling Items

 

Consolidated

Interest revenue (a)

 $—  $509  $336  $845  $—  $845 

Amortization (b)

  11   —   —   11   —   11 

Other significant non-cash items:

                        

Stock-based compensation (c)

  —   —   26   26   —   26 
                         

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 LGL Group's identifiable assets by segment as of  June 30, 2026 and December 31, 2025:

  

June 30, 2026

  

Electronic Instruments

 

Merchant Investment

 

Corporate

 

Total

 

Adjustments and Reconciling Items

 

Consolidated

Total assets

 $1,469  $28,196  $20,019  $49,684  $—  $49,684 

 

  

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