LGL GROUP INC Segments Disclosure

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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 reporting 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 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 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 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:

		Year Ended December 31, 2025
		Electronic Instruments				Merchant Investment				Corporate				Consolidated
Revenues:
Net sales		$	2,453			$	—			$	—			$	2,453
Net investment income			—				1,042				655				1,697
Net gains			—				—				19				19
Total revenues			2,453				1,042				674				4,169
Less:
Manufacturing cost of sales			1,155				—				—				1,155
Engineering			259				—				—				259
Commissions			70				—				—				70
Sales and marketing			194				—				—				194
Accounting			—				—				225				225
Compensation			245				—				505				750
Corporate allocations (a)			51				455				(506	)			—
Other segment items (b)			183				22				1,062				1,267
Engineering, selling and administrative			1,002				477				1,286				2,765
Total expenses			2,157				477				1,286				3,920
Segment profit (loss)		$	296			$	565			$	(612	)		$	249
Reconciliation of Segment profit (loss) to Income before income taxes
Adjustments and reconciling items															—
Income before income taxes														$	249

 

		Year Ended December 31, 2024
		Electronic Instruments				Merchant Investment				Corporate				Consolidated
Revenues:
Net sales		$	2,226			$	—			$	—			$	2,226
Net investment income			—				1,228				843				2,071
Net losses			—				—				(5	)			(5	)
Total revenues			2,226				1,228				838				4,292
Less:
Manufacturing cost of sales			1,047				—				—				1,047
Engineering			209				—				—				209
Commissions			112				—				—				112
Sales and marketing			185				—				—				185
Accounting			—				—				270				270
Compensation			243				—				779				1,022
Corporate allocations (a)			42				371				(413	)			—
Other segment items (b)			145				10				593				748
Engineering, selling and administrative			936				381				1,229				2,546
Total expenses			1,983				381				1,229				3,593
Segment profit (loss)		$	243			$	847			$	(391	)		$	699
Reconciliation of Segment profit (loss) to Income before income taxes
Adjustments and reconciling items															—
Income before income taxes														$	699

(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 MtronPTI under Amended and Restated Transitional Administrative and Management Services Agreement, expense reimbursements paid to or received from MtronPTI, and certain other overhead expenses.

 

 

 

Other Segment Disclosures

 

The following table presents other segment information by segment:

		As of and For Year Ended December 31, 2025
		Electronic Instruments				Merchant Investment				Corporate				Total				Adjustments and Reconciling Items				Consolidated
Interest revenue (a)		$	—			$	1,042			$	655			$	1,697			$	—			$	1,697
Amortization (b)			21				—				—				21				—				21
Other significant non-cash items:
Stock-based compensation (c)			—				—				61				61				—				61
Total assets			1,237				25,768				19,771				46,776				—				46,776
Capital expenditures			—				—				—				—				—				—

 

		As of and For Year Ended December 31, 2024
		Electronic Instruments				Merchant Investment				Corporate				Total				Adjustments and Reconciling Items				Consolidated
Interest revenue (a)		$	—			$	1,228			$	843			$	2,071			$	—			$	2,071
Amortization (b)			21				—				—				21				—				21
Other significant non-cash items:
Stock-based compensation (c)			—				—				36				36				—				36
Total assets			1,249				24,748				17,148				43,145				—				43,145
Capital expenditures			—				—				—				—				—				—

(a)	Interest revenue is included in Net investment income on the 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.