The LGL Group, Inc. (LGL) 10-Q 11 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 10, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	LGL GROUP INC
Entity Central Index Key	61,004
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,675,465
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 2,158,000	$ 2,778,000
Marketable securities	3,813,000	2,770,000
Accounts receivable, net of allowances of $32 and $31, respectively	3,065,000	3,504,000
Inventories, net	4,082,000	3,638,000
Prepaid expenses and other current assets	207,000	200,000
Total Current Assets	13,325,000	12,890,000
Property, plant and equipment:
Land	633,000	633,000
Buildings and improvements	3,966,000	3,966,000
Machinery and equipment	16,877,000	16,849,000
Gross property, plant and equipment	21,476,000	21,448,000
Less: accumulated depreciation	(19,061,000)	(18,737,000)
Net property, plant, and equipment	2,415,000	2,711,000
Intangible assets, net	590,000	628,000
Deferred income taxes, net	196,000	214,000
Other assets, net	219,000	203,000
Total Assets	16,745,000	16,646,000
Current Liabilities:
Accounts payable	1,596,000	1,525,000
Accrued compensation and commissions	846,000	942,000
Other accrued expenses	224,000	288,000
Total Current Liabilities	2,666,000	2,755,000
Commitments and Contingencies (Note L)
Stockholders’ Equity
Common stock, $0.01 par value - 10,000,000 shares authorized; 2,757,049 shares issued and 2,675,465 shares outstanding at June 30, 2017 and December 31, 2016	27,000	27,000
Additional paid-in capital	29,188,000	29,173,000
Accumulated deficit	(14,595,000)	(14,726,000)
Treasury stock, 81,584 shares held in treasury at cost at June 30, 2017 and December 31, 2016	(580,000)	(580,000)
Accumulated other comprehensive income (loss)	39,000	(3,000)
Total Stockholders' Equity	14,079,000	13,891,000
Total Liabilities and Stockholders' Equity	$ 16,745,000	$ 16,646,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Accounts receivable, allowances	$ 32	$ 31
Stockholders’ Equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, shares issued (in shares)	2,757,049	2,757,049
Common stock, shares outstanding (in shares)	2,675,465	2,675,465
Treasury stock, (in shares)	81,584	81,584

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - Unaudited - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
REVENUES	$ 5,859	$ 5,231	$ 11,483	$ 9,987
Costs and expenses:
Manufacturing cost of sales	3,992	3,459	7,550	6,716
Engineering, selling and administrative	1,823	1,746	3,781	3,407
OPERATING INCOME (LOSS)	44	26	152	(136)
Other Income (Expense):
Interest expense, net	(5)	(7)	(11)	(13)
Other income (expense), net	6	(4)	18	38
Total Other Income (Expense)	1	(11)	7	25
INCOME (LOSS) BEFORE INCOME TAXES	45	15	159	(111)
Income tax (provision) benefit	(25)	1	(28)	1
NET INCOME (LOSS)	$ 20	$ 16	$ 131	$ (110)
Basic per share information:
Weighted average shares outstanding	2,675,465	2,665,434	2,675,465	2,665,434
Net income (loss)	$ 0.01	$ 0.01	$ 0.05	$ (0.04)
Diluted per share information:
Weighted average shares outstanding	2,687,774	2,665,434	2,688,127	2,665,434
Net income (loss)	$ 0.01	$ 0.01	$ 0.05	$ (0.04)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) - Unaudited - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
NET INCOME (LOSS)	$ 20	$ 16	$ 131	$ (110)
Other Comprehensive Income (Loss):
Unrealized gain (loss) on available-for-sale securities, net of taxes	21	(3)	42	(6)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	21	(3)	42	(6)
COMPREHENSIVE INCOME (LOSS)	$ 41	$ 13	$ 173	$ (116)

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Stockholder's Equity - Unaudited - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive (Loss) Income [Member]
Balance at Dec. 31, 2016	$ 13,891	$ 27	$ 29,173	$ (14,726)	$ (580)	$ (3)
Balance (in shares) at Dec. 31, 2016	2,675,465	2,675,465
NET INCOME (LOSS)	$ 131			131
Other comprehensive income	42					42
Stock-based compensation	15		15
Balance at Jun. 30, 2017	$ 14,079	$ 27	$ 29,188	$ (14,595)	$ (580)	$ 39
Balance (in shares) at Jun. 30, 2017	2,675,465	2,675,465

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
OPERATING ACTIVITIES
NET INCOME (LOSS)	$ 131	$ (110)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	325	369
Amortization of finite-lived intangible assets	38	32
Gain on disposal of assets		(36)
Stock-based compensation	15	(13)
Deferred income tax provision	18	0
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable, net	439	(531)
(Increase) decrease in inventories, net	(444)	69
(Increase) decrease in prepaid expenses and other assets	(23)	14
(Decrease) increase in accounts payable, accrued compensation and commissions and other accrued liabilities	(89)	249
Net cash provided by operating activities	410	43
INVESTING ACTIVITIES
Purchase of marketable securities	(1,002)	0
Capital expenditures	(28)	(76)
Other	0	43
Net cash used in investing activities	(1,030)	(33)
(Decrease) increase in cash and cash equivalents	(620)	10
Cash and cash equivalents at beginning of period	2,778	5,553
Cash and cash equivalents at end of period	2,158	5,563
Supplemental Disclosure:
Cash paid for interest	17	6
Cash paid for income taxes	$ 20	$ 27

Subsidiaries of the Registrant

Subsidiaries of the Registrant	6 Months Ended
	Jun. 30, 2017
Subsidiaries Of Registrant [Abstract]
Subsidiaries of the Registrant	A. Subsidiaries of the Registrant The LGL Group, Inc. (the "Company"), incorporated in 1928 under the laws of the State of Indiana and reincorporated under the laws of the State of Delaware in 2007, is a holding company with subsidiaries engaged in the designing, manufacturing and marketing of highly-engineered, high reliability frequency and spectrum control products As of June 30, 2017, the subsidiaries of the Company were as follows: Owned By The LGL Group, Inc. M-tron Industries, Inc. 100.0% Piezo Technology, Inc. 100.0% Piezo Technology India Private Ltd. 99.0% M-tron Asia, LLC 100.0% M-tron Industries, Ltd. 100.0% GC Opportunities Ltd. 100.0% M-tron Services, Ltd. 100.0% Precise Time and Frequency, LLC 100.0% Lynch Systems, Inc. 100.0% The Company operates through its two principal subsidiaries, M-tron Industries, Inc. (“MtronPTI”), which includes the operations of Piezo Technology, Inc. ("PTI") and M-tron Asia, LLC ("Mtron"), and Precise Time and Frequency, LLC ("PTF"), a subsidiary formed to hold the assets of Precise Time and Frequency, Inc. acquired September 2, 2016. Additionally, the Company operates in two identified segments. The first segment, the electronic components segment, is focused on the design and manufacture of highly-engineered, high reliability frequency and spectrum control products. These electronic components ensure reliability and security in aerospace and defense communications, low noise and base accuracy for laboratory instruments, and synchronous data transfers throughout the wireless and Internet infrastructure. The second segment, the electronic instruments segment, is focused on the design and manufacture of high performance Frequency and Time Reference Standards that form the basis for timing and synchronization in various applications.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	B. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2017. This interim information should be read in conjunction with the audited consolidated financial statements and related notes thereto set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission (the "SEC") on March 29, 2017, as amended. The accompanying unaudited condensed consolidated financial statements should also be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations contained in this Quarterly Report on Form 10-Q.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	C. Inventories Inventories are valued at the lower of cost or net realizable value using the FIFO (first-in, first-out) method. The Company reduces the value of its inventories to net realizable value market value when the net realizable value is believed to be less than the cost of the item. The inventory reserve for obsolescence as of June 30, 2017 and December 31, 2016 was $2,838,000 and $2,773,000, respectively. Inventories are comprised of the following (in thousands): June 30, 2017 December 31, 2016 Raw materials $ 1,586 $ 1,408 Work in process 1,498 1,306 Finished goods 998 924 Total Inventories, net $ 4,082 $ 3,638

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2017
Intangible Assets Net Excluding Goodwill [Abstract]
Intangible Assets	D. Intangible Assets Intangible assets are recorded at cost less accumulated amortization which is included in engineering, selling and administrative expenses in the accompanying unaudited condensed consolidated statements of operations. Amortization is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the assets, which range up to 10 years. The intangible assets consist of intellectual property and goodwill. The net carrying value of the amortizable intangible assets was $550,000 and $588,000 as of June 30, 2017 and December 31, 2016, respectively. Goodwill, which is not amortizable, was $40,000 as of June 30, 2017 and December 31, 2016. The estimated aggregate amortization expense for intangible assets, excluding goodwill, for the remaining portion of 2017 and each of the four succeeding years and thereafter is as follows (in thousands): 2017 $ 37 2018 75 2019 75 2020 75 2021 75 Thereafter 213 Total $ 550

CNB Loan

CNB Loan	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
CNB Loan	E. CNB Loan On September 30, 2016, MtronPTI renewed its Loan Agreement (the “CNB Loan Agreement”) with City National Bank of Florida (“City National”). The CNB Loan Agreement provides for a revolving line of credit in the amount of $3.0 million (the “CNB Revolver”), which bears interest at a variable rate equal to the 30-day London Interbank Offered Rate (“LIBOR”) plus 200 basis points to be set on the first day of each month, and expires on September 30, 2018. The CNB Loan Agreement also provides that MtronPTI will pay City National a fee equal to 0.75% per year on the daily unused amount. The Company's obligations under the CNB Loan Agreement are secured only by cash collateral and do not require any other liens. As of June 30, 2017 and December 31, 2016, there was no balance outstanding under the CNB Revolver and no associated restricted cash.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	F. Stock-Based Compensation The Company measures the cost of employee services in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the cost over the requisite service period, typically the vesting period. The Company estimates the fair value of stock options on the grant date using the Black-Scholes-Merton option-pricing model. The Black-Scholes-Merton option-pricing model requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. There is no expected dividend rate. Historical Company information was the basis for the expected volatility assumption as the Company believes that the historical volatility is indicative of expected volatility over the life of the option. The risk-free interest rate is based on the U.S. Treasury zero-coupon rates with a remaining term equal to the expected term of the option. Restricted stock awards are made at a value equal to the market price of the Company's common stock on the date of the grant. Compensation expense related to share-based compensation is recognized over the applicable vesting periods. As of June 30, 2017, there was approximately $51,000 of total unrecognized compensation expense related to unvested share-based compensation arrangements that will be recognized over a weighted average period of 2.1 years.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	G. Net Income (Loss) Per Share The Company computes net income (loss) per share in accordance with Accounting Standards Codification ("ASC") 260, Earnings Per Share For the three and six months ended June 30, 2017 and 2016, there were options to purchase 105,135 shares and 117,226 shares, respectively, of the Company's common stock and warrants to purchase 519,241 shares of common stock that were excluded from the diluted income (loss) per share computation because the impact of the assumed exercise of such stock options would have been anti-dilutive during the respective periods. The following table reconciles basic weighted average shares outstanding to diluted weighted average shares outstanding for the three and six months ended June 30, 2017 and 2016: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Weighted average shares outstanding - basic 2,675,465 2,665,434 2,675,465 2,665,434 Effect of diluted securities 12,309 — 12,662 — Weighted average shares outstanding - diluted 2,687,774 2,665,434 2,688,127 2,665,434

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2017
Stockholders Equity Note [Abstract]
Stockholders' Equity	H. Stockholders’ Equity On August 29, 2011, the Board authorized the Company to repurchase up to 100,000 shares of its common stock in accordance with applicable securities laws. This authorization increased the total number of shares authorized and available for repurchase under the Company's existing share repurchase program to 540,000 shares, at such times, amounts and prices as the Company shall deem appropriate. As of June 30, 2017, the Company had repurchased a total of 81,584 shares of common stock at a cost of $580,000, which shares are currently held in treasury. On August 6, 2013, the Company distributed warrants to purchase shares of the Company's common stock as a dividend to holders of the Company's common stock as of July 29, 2013, the record date for the dividend. Stockholders received five warrants for each share of the Company's common stock owned on the record date. When exercisable, 25 warrants will entitle the holder to purchase one share of the Company's common stock at an exercise price of $7.50 per share (subject to adjustment). The warrants are "European style warrants" and will only become exercisable on the earlier of (i) their expiration date, August 6, 2018, and (ii) such date that the 30-day volume weighted average price per share, or VWAP, of the Company's common stock is greater than or equal to $15.00 (subject to adjustment). Once the warrants become exercisable, they may be exercised in accordance with the terms of the warrant agreement between the Company and the warrant agent until their expiration at 5:00 p.m., Eastern Time, on the expiration date. The warrants are quoted on the over-the-counter market under the symbol "LGLPW."

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	I. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value guidance identifies three primary valuation techniques: the market approach, the income approach and the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts such as cash flows or earnings, to a single present amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to observable inputs such as quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The maximization of observable inputs and the minimization of the use of unobservable inputs are required. Classification within the fair value hierarchy is based upon the objectivity of the inputs that are significant to the valuation of an asset or liability as of the measurement date. The three levels within the fair value hierarchy are characterized as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Unobservable inputs for the asset or liability for which there is little, if any, market activity for the asset or liability at the measurement date. Unobservable inputs reflect the Company's own assumptions about what market participants would use to price the asset or liability. These inputs may include internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment. Assets To estimate the market value of its marketable securities, the Company obtains current market pricing from quoted market sources or uses pricing for identical securities. Assets measured at fair value on a recurring basis are summarized below (in thousands). Level 1 Level 2 Level 3 Total June 30, 2017 Marketable Securities (equity securities) $ 3,813 $ — $ — $ 3,813 Level 1 Level 2 Level 3 Total December 31, 2016 Marketable Securities (equity securities) $ 2,770 $ — $ — $ 2,770 U.S. Treasury securities (cash equivalents) $ 1,002 $ — $ — $ 1,002 There were no transfers from level 2 to level 3 during the periods presented. There were no level 2 or 3 assets as of June 30, 2017 or December 31, 2016. The Company also has assets that may be subject to measurement at fair value on a non-recurring basis, including goodwill and intangible assets, and other long-lived assets. There were no liabilities subject to fair value on a non-recurring or recurring basis as of June 30, 2017 and December 31, 2016. The Company reviews goodwill and the carrying value of long-lived assets at least annually or whenever events and circumstances indicate that the carrying amounts of the assets may not be recoverable. If it is determined that the assets are impaired, the carrying value would be reduced to estimated fair value.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segment Information	J. Segment Information The Company has two reportable business segments from operations: electronic components, which includes all products manufactured and sold by MtronPTI, and electronic instruments, which includes all products manufactured and sold by PTF. The Company's foreign operations in Hong Kong and India exist under MtronPTI. Operating income (loss) is equal to revenues less cost of sales and operating expenses, excluding investment income, interest expense, and income taxes. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) (in thousands) Revenues from Operations Electronic components $ 5,626 $ 5,231 $ 11,018 $ 9,987 Electronic instruments 233 — 465 — Total consolidated revenues $ 5,859 5,231 $ 11,483 9,987 Operating Income (Loss) from Operations Electronic components $ 391 $ 252 $ 807 $ 338 Electronic instruments 11 — 47 — Unallocated corporate expense (358 ) (226 ) (702 ) (474 ) Consolidated total operating income (loss) 44 26 152 (136 ) Interest expense, net (5 ) (7 ) (11 ) (13 ) Other income (expense), net 6 (4 ) 18 38 Total other income (expense) 1 (11 ) 7 25 Income (Loss) Before Income Taxes $ 45 $ 15 $ 159 $ (111 )

Foreign Revenues

Foreign Revenues	6 Months Ended
	Jun. 30, 2017
Revenues [Abstract]
Foreign Revenues	K. Domestic and Foreign Revenues For the three months ended June 30, 2017 and 2016, domestic revenues were $3,884,000 and $3,772,000, respectively, and foreign revenues were $1,975,000 and $1,459,000, respectively. For the six months ended June 30, 2017 and 2016, domestic revenues were $7,866,000 and $7,254,000, respectively, and foreign revenues were $3,617,000 and $2,733,000, respectively. Significant foreign revenues from operations (10% or more of foreign sales) were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) (in thousands) Malaysia $ 765 $ 782 $ 1,588 $ 1,508 India 334 1 410 3 All other foreign countries 876 676 1,619 1,222 Total foreign revenues $ 1,975 $ 1,459 $ 3,617 $ 2,733 Total domestic revenue $ 3,884 $ 3,772 $ 7,866 $ 7,254 The Company allocates its foreign revenue based on the customer's ship-to location.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	L. Commitments and Contingencies In the ordinary course of business, the Company and its subsidiaries may become defendants in certain product liability, patent infringement, worker claims and other litigation. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. The Company is not involved in any legal proceedings other than routine litigation arising in the normal course of business, none of which the Company believes will have a material adverse effect on the Company’s business, financial condition or results of operations.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	M. Related Party Transactions As of June 30, 2017 and December 31, 2016, approximately $3,763,000 and $2,714,000, respectively, was invested in a market neutral mutual fund which is included in marketable securities on the accompanying balance sheet. As of December 31, 2016, approximately $1,002,000 was also invested in a United States Treasury money market fund which is included in cash and cash equivalents on the accompanying balance sheet. Both the market neutral mutual fund and the United States Treasury money market fund are managed by a related entity (the "Fund Manager"), which is related through a common director. One of the Company's directors, who is also a 10% stockholder, currently serves as an executive officer of the Fund Manager. The fund transactions for the six months ended June 30, 2017 and for the year-ended December 31, 2016 were directed solely at the discretion of Company management.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	6 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Recently Issued Accounting Pronouncements	N. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective for fiscal years, and for interim periods within those years, beginning after December 15, 2017. Early application is permitted. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements. In March 2016, the Financial Accounting Standards Board (the "FASB") issued ASU 2016–09, "Compensation – Stock Compensation (Topic 718): Improvements to Employee Share–Based Payment Accounting" ("ASU 2016–09"). ASU 2016-9 simplifies the accounting for share–based payment award transactions including: income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The adoption of ASU 2016–09 did not In February 2016, the FASB issued ASU 2016–02, "Leases (Topic 842)." The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. The Company does not expect this standard to have a material impact on our consolidated financial statements because there are no material operating leases. In January 2016, the FASB issued ASU No. 2016–01, "Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825)" ("ASU 2016-01"). ASU No. 2016–01 revises the classification and measurement of investments in certain equity investments and the presentation of certain fair value changes for certain financial liabilities measured at fair value. ASU No. 2016–01 requires the change in fair value of many equity investments to be recognized in net income. ASU No. 2016–01 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. Adopting ASU No. 2016–01 may result in a cumulative effect adjustment to the Company's retained earnings as of the beginning of the year of adoption. The Company is currently evaluating the potential effects of adopting the provisions of ASU No. 2016–01. In November 2015, the FASB issued ASU No. 2015-17 "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," which simplifies the presentation of deferred income taxes. Under the new accounting standard, deferred tax assets and liabilities are required to be classified as noncurrent, eliminating the prior requirement to separate deferred tax assets and liabilities into current and noncurrent. The adoption of ASU 2015-17 did not have a material impact on our consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," ("ASU 2014-15") which provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company has adopted this guidance as of December 31, 2016 and it did not have a material impact on its financial statements. In May 2014, the FASB issued ASU No. 2014–09, "Revenue from Contracts with Customers ("ASU 2014-09")", also known as the "New Revenue Standard". This update is the result of a collaborative effort by the FASB and the International Accounting Standards Board to simplify revenue recognition guidance, remove inconsistencies in the application of revenue recognition, and to improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to receive for those goods or services. The New Revenue Standard is applied through the following five-step process: 1. Identify the contract(s) with a customer. 2. Identify the performance obligation in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. For a public entity, this update is effective for annual and interim reporting periods beginning after December 15, 2017 with early adoption permitted No other new accounting pronouncements issued or effective during the six months ended June 30, 2017 have had or are expected to have a material impact on the Company's consolidated financial statements.

Subsidiaries of the Registrant

Subsidiaries of the Registrant (Tables)	6 Months Ended
	Jun. 30, 2017
Subsidiaries Of Registrant [Abstract]
Subsidiaries of the Company	As of June 30, 2017, the subsidiaries of the Company were as follows: Owned By The LGL Group, Inc. M-tron Industries, Inc. 100.0% Piezo Technology, Inc. 100.0% Piezo Technology India Private Ltd. 99.0% M-tron Asia, LLC 100.0% M-tron Industries, Ltd. 100.0% GC Opportunities Ltd. 100.0% M-tron Services, Ltd. 100.0% Precise Time and Frequency, LLC 100.0% Lynch Systems, Inc. 100.0%

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories are comprised of the following (in thousands): June 30, 2017 December 31, 2016 Raw materials $ 1,586 $ 1,408 Work in process 1,498 1,306 Finished goods 998 924 Total Inventories, net $ 4,082 $ 3,638

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2017
Intangible Assets Net Excluding Goodwill [Abstract]
Future Amortization Expense for Intangible Assets Excluding Goodwill	The estimated aggregate amortization expense for intangible assets, excluding goodwill, for the remaining portion of 2017 and each of the four succeeding years and thereafter is as follows (in thousands): 2017 $ 37 2018 75 2019 75 2020 75 2021 75 Thereafter 213 Total $ 550

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Reconciliation of Basic to Diluted Weighted Average Shares Outstanding	The following table reconciles basic weighted average shares outstanding to diluted weighted average shares outstanding for the three and six months ended June 30, 2017 and 2016: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Weighted average shares outstanding - basic 2,675,465 2,665,434 2,675,465 2,665,434 Effect of diluted securities 12,309 — 12,662 — Weighted average shares outstanding - diluted 2,687,774 2,665,434 2,688,127 2,665,434

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Assets measured at fair value on recurring basis	Assets measured at fair value on a recurring basis are summarized below (in thousands). Level 1 Level 2 Level 3 Total June 30, 2017 Marketable Securities (equity securities) $ 3,813 $ — $ — $ 3,813 Level 1 Level 2 Level 3 Total December 31, 2016 Marketable Securities (equity securities) $ 2,770 $ — $ — $ 2,770 U.S. Treasury securities (cash equivalents) $ 1,002 $ — $ — $ 1,002

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Operating income (loss)	Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) (in thousands) Revenues from Operations Electronic components $ 5,626 $ 5,231 $ 11,018 $ 9,987 Electronic instruments 233 — 465 — Total consolidated revenues $ 5,859 5,231 $ 11,483 9,987 Operating Income (Loss) from Operations Electronic components $ 391 $ 252 $ 807 $ 338 Electronic instruments 11 — 47 — Unallocated corporate expense (358 ) (226 ) (702 ) (474 ) Consolidated total operating income (loss) 44 26 152 (136 ) Interest expense, net (5 ) (7 ) (11 ) (13 ) Other income (expense), net 6 (4 ) 18 38 Total other income (expense) 1 (11 ) 7 25 Income (Loss) Before Income Taxes $ 45 $ 15 $ 159 $ (111 )

Domestic and Foreign Revenues (

Domestic and Foreign Revenues (Tables)	6 Months Ended
	Jun. 30, 2017
Revenues [Abstract]
Significant foreign revenues from operations	For the three months ended June 30, 2017 and 2016, domestic revenues were $3,884,000 and $3,772,000, respectively, and foreign revenues were $1,975,000 and $1,459,000, respectively. For the six months ended June 30, 2017 and 2016, domestic revenues were $7,866,000 and $7,254,000, respectively, and foreign revenues were $3,617,000 and $2,733,000, respectively. Significant foreign revenues from operations (10% or more of foreign sales) were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) (in thousands) Malaysia $ 765 $ 782 $ 1,588 $ 1,508 India 334 1 410 3 All other foreign countries 876 676 1,619 1,222 Total foreign revenues $ 1,975 $ 1,459 $ 3,617 $ 2,733 Total domestic revenue $ 3,884 $ 3,772 $ 7,866 $ 7,254 The Company allocates its foreign revenue based on the customer's ship-to location.

Subsidiaries of the Registran29

Subsidiaries of the Registrant (Details)	6 Months Ended
	Jun. 30, 2017Segment
Subsidiaries Of Entity By Ownership Percentage [Abstract]
Number of operating segments	2
M-tron Industries, Inc. [Member]
Subsidiaries Of Entity By Ownership Percentage [Abstract]
Owned by The LGL Group, Inc.	100.00%
Piezo Technology, Inc. [Member]
Subsidiaries Of Entity By Ownership Percentage [Abstract]
Owned by The LGL Group, Inc.	100.00%
Piezo Technology India Private Ltd. [Member]
Subsidiaries Of Entity By Ownership Percentage [Abstract]
Owned by The LGL Group, Inc.	99.00%
M-tron Asia LLC [Member]
Subsidiaries Of Entity By Ownership Percentage [Abstract]
Owned by The LGL Group, Inc.	100.00%
M-tron Industries, Ltd. [Member]
Subsidiaries Of Entity By Ownership Percentage [Abstract]
Owned by The LGL Group, Inc.	100.00%
GC Opportunities Ltd. [Member]
Subsidiaries Of Entity By Ownership Percentage [Abstract]
Owned by The LGL Group, Inc.	100.00%
M-tron Services Ltd [Member]
Subsidiaries Of Entity By Ownership Percentage [Abstract]
Owned by The LGL Group, Inc.	100.00%
Precise Time and Frequenc, LLC [Member]
Subsidiaries Of Entity By Ownership Percentage [Abstract]
Owned by The LGL Group, Inc.	100.00%
Date of acquisition	Sep. 2, 2016
Lynch Systems, Inc. [Member]
Subsidiaries Of Entity By Ownership Percentage [Abstract]
Owned by The LGL Group, Inc.	100.00%

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Classification of inventories [Abstract]
Raw materials	$ 1,586,000	$ 1,408,000
Work in process	1,498,000	1,306,000
Finished goods	998,000	924,000
Total Inventories, net	4,082,000	3,638,000
Inventory reserve for obsolescence	$ 2,838,000	$ 2,773,000

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Intangible Assets [Abstract]
Intangible assets carrying value	$ 550,000	$ 588,000
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Goodwill	40,000	40,000
2,017	37,000
2,018	75,000
2,019	75,000
2,020	75,000
2,021	75,000
Thereafter	213,000
Total	$ 550,000	$ 588,000
Maximum [Member]
Intangible Assets [Abstract]
Estimated useful life	10 years

CNB Loan (Details)

CNB Loan (Details) - CNB Revolver [Member] - USD ($)	Sep. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Line of credit	$ 3,000,000
Debt instrument maturity date		Sep. 30, 2018
Percentage of commitment fee on unused capacity	0.75%
Line of credit facility amount outstanding		$ 0	$ 0
Line of credit facility associated restricted cash		$ 0	$ 0
30-day LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details)	6 Months Ended
	Jun. 30, 2017USD ($)
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Unrecognized compensation expense	$ 51,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 1 month 6 days

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Weighted average shares outstanding - basic	2,675,465	2,665,434	2,675,465	2,665,434
Effect of diluted securities	12,309	0	12,662	0
Weighted average shares outstanding - diluted	2,687,774	2,665,434	2,688,127	2,665,434
Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Securities excluded from the diluted earnings per share computation (in shares)	105,135	117,226	105,135	117,226
Warrant [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Securities excluded from the diluted earnings per share computation (in shares)	519,241	519,241	519,241	519,241

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Aug. 29, 2011
Stockholders Equity Note [Abstract]
Number of shares authorized and available for repurchase (in shares)	540,000		100,000
Treasury stock, shares (in shares)	81,584	81,584
Value of repurchased common stock	$ 580,000	$ 580,000
Dividend declaration date	Aug. 6, 2013
Dividend date of record	Jul. 29, 2013
Number of warrants received for each share of common stock (in shares)	5
Number of warrants that entitle holder to purchase one share of common stock (in shares)	25
Number of common shares callable by warrants (in shares)	1
Warrant exercise price (in dollars per share)	$ 7.50
Minimum volume weighted average price per share (in dollars per share)	$ 15

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value Assets Measured On Recurring Basis [Line Items]
Liabilities, fair value disclosure, non-recurring	$ 0	$ 0
Equity Securities [Member]
Fair Value Assets Measured On Recurring Basis [Line Items]
Fair value assets	3,813	2,770
U.S. Treasury Securities (Cash Equivalents) [Member]
Fair Value Assets Measured On Recurring Basis [Line Items]
Fair value assets		1,002
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member]
Fair Value Assets Measured On Recurring Basis [Line Items]
Fair value assets	3,813	2,770
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Securities (Cash Equivalents) [Member]
Fair Value Assets Measured On Recurring Basis [Line Items]
Fair value assets		1,002
Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member]
Fair Value Assets Measured On Recurring Basis [Line Items]
Fair value assets	0	0
Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Securities (Cash Equivalents) [Member]
Fair Value Assets Measured On Recurring Basis [Line Items]
Fair value assets		0
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member]
Fair Value Assets Measured On Recurring Basis [Line Items]
Fair value assets	$ 0	0
Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury Securities (Cash Equivalents) [Member]
Fair Value Assets Measured On Recurring Basis [Line Items]
Fair value assets		$ 0

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)Segment	Jun. 30, 2016USD ($)
Segment Reporting Information [Line Items]
Number of reportable business segments | Segment			2
Revenues from Operations
Revenues from operations	$ 5,859	$ 5,231	$ 11,483	$ 9,987
Operating Income (Loss) from Operations
Consolidated total operating income (loss)	44	26	152	(136)
Interest expense, net	(5)	(7)	(11)	(13)
Other income (expense), net	6	(4)	18	38
Total other income (expense)	1	(11)	7	25
Income (Loss) Before Income Taxes	45	15	159	(111)
Unallocated corporate expense [Member]
Operating Income (Loss) from Operations
Consolidated total operating income (loss)	(358)	(226)	(702)	(474)
Electronic components [Member]
Revenues from Operations
Revenues from operations	5,626	5,231	11,018	9,987
Electronic components [Member] | Reportable Segment [Member]
Operating Income (Loss) from Operations
Consolidated total operating income (loss)	391	$ 252	807	$ 338
Electronic instruments [Member]
Revenues from Operations
Revenues from operations	233		465
Electronic instruments [Member] | Reportable Segment [Member]
Operating Income (Loss) from Operations
Consolidated total operating income (loss)	$ 11		$ 47

Foreign Revenues (Details)

Foreign Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Entity Wide Revenue Major Customer [Line Items]
Revenues from operations	$ 5,859	$ 5,231	$ 11,483	$ 9,987
Domestic [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenues from operations	3,884	3,772	7,866	7,254
Foreign [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenues from operations	1,975	1,459	$ 3,617	2,733
Foreign [Member] | Sales Revenue, Segment [Member] | Customer Concentration Risk [Member]
Entity Wide Revenue Major Customer [Line Items]
Portion of foreign sales			10.00%
Malaysia [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenues from operations	765	782	$ 1,588	1,508
India [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenues from operations	334	1	410	3
All other foreign countries [Member]
Entity Wide Revenue Major Customer [Line Items]
Revenues from operations	$ 876	$ 676	$ 1,619	$ 1,222

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)Director	Dec. 31, 2016USD ($)
Related Party Transactions [Abstract]
Amount invested in Mutual Fund	$ 3,763	$ 2,714
Amount invested in United States Treasury money market funds		$ 1,002
Number of common directors | Director	1
Percentage of stockholders controlling a related party	10.00%	10.00%