M-tron Industries, Inc. Segments Disclosure

3. Segment Information

 

Chief Operating Decision Maker

 

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

 

Reportable Segments

 

We report our results of operations consistent with the manner in which the CODM reviews the business to assess performance and allocate resources. As such, we report our results in a single reporting segment: Electronic Components.

 

The Electronic Components segment derives revenues from sales to customers of wide range of precision frequency control and spectrum control solutions, including, but not limited to, the following:

•

filters;

•

oscillators;

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crystal resonators; and

•

integrated microwave assemblies.

 

 

The accounting policies of the Electronic Components segment 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 the Electronic Components segment based on Segment gross profit (loss) as well as Net income, which is also reported on the Consolidated Statements of Operations as consolidated Net income. The CODM uses Segment gross profit to evaluate to evaluate the manufacturing costs of the Electronic Components segment’s products and to ensure those products are priced appropriately. The CODM uses Segment net income to evaluate income generated from segment assets in deciding whether to reinvest profits into the Electronic Components segment or into other parts of the entity, such as for capital expenditures or acquisitions. Additionally, the CODM uses net income to monitor budget versus actual results as well as in competitive analysis to Mtron's peers. The budget versus actuals and competitive analysis are used in assessing the performance of the Electronic Components segment.

 

The measure of segment assets is reported on the Consolidated Balance Sheets as consolidated Total assets.

 

The following table presents Mtron's operations for the Electronic Components segment for the years ended December 31, 2025 and 2024:

		Year Ended December 31,
		2025				2024
Revenues		$	54,417			$	49,012
Less:
Cost of goods sold			24,079				21,673
Manufacturing expenses			6,190				4,699
Segment gross profit		$	24,148			$	22,640
Less:
Research and development costs			3,161				2,809
Selling and commissions			4,046				3,486
General and administrative expenses			6,691				6,951
Income tax expense			2,507				2,139
Other segment items (a)			(704	)			(381	)
Segment net income		$	8,447			$	7,636
Reconciliation of Segment gross profit to Consolidated net income
Segment operating expenses, net			(13,857	)			(13,246	)
Other income			663				381
Income tax expense			(2,507	)			(2,139	)
Consolidated net income		$	8,447			$	7,636
Reconciliation of Segment net income to Consolidated net income
Adjustments and reconciling items			—				—
Consolidated net income		$	8,447			$	7,636

(a)	Other segment items includes the following:

•

Interest income

•

Income received under the Amended and Restated Transitional Administrative and Management Services Agreement with The LGL Group, Inc.

•

Foreign currency translation gains and losses

•

Other gains and losses

•

Other expense reimbursements paid to or received from The LGL Group, Inc.

 

 

 

Other Segment Disclosures

 

The following table presents other segment information for the Electronic Components segment as of and for the years ended December 31, 2025 and 2024:

		As of and For Year Ended December 31,
		2025				2024
Interest income		$	551			$	259
Interest expense			(12	)			(16	)
Depreciation			1,086				968
Amortization			—				5
Other significant non-cash items
Stock-based compensation			1,081				636
Total assets			68,383				36,560
Capital expenditures			2,551				1,898