Note 3 - Discontinued Operations

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3. Discontinued Operations

As noted in Note 1 - Basis of Presentation, on October 7, 2022, the Company completed the Separation of MPTI. In accordance with ASC Topic 205, Presentation of Financial Statements ("ASC 205"), Subtopic 20 - Discontinued Operations, the Company determined that MtronPTI’s business line met the conditions for a discontinued operation and is recorded as such in the Consolidated Financial Statements. The Company reports financial results for discontinued operations separately from continuing operations in order to distinguish the financial impact of the disposal transaction from ongoing operations.

In connection with the Separation, MtronPTI wrote off $4,439 of intercompany receivables due from LGL Group, which brought intercompany balances to zero.

For the year ended December 31, 2023, costs directly related to the Separation were $56. During the first quarter of 2023, MtronPTI agreed to share excess Separation Costs with LGL Group, thereby reducing the Separation Costs paid by the Company by $28. For the year ended December 31, 2022, costs directly related to the Separation were $638. During the fourth quarter of 2022, MtronPTI agreed to share excess Separation Costs with LGL Group, thereby reducing the Separation Costs paid by the Company by $219, resulting in net Separation Costs of $419. For the years ended  December 31, 2023 and 2022, Separation Costs were included within Income from discontinued operations, net of tax within the Consolidated Statements of Operations.

The following table summarizes the significant line items included in (Loss) income from discontinued operations, net of tax in the Consolidated Statements of Operations for the periods indicated:

	Year Ended December 31,
	2023			2022
Revenues:
Net sales	$	—		$	23,529
Total revenues		—			23,529
Expenses:
Manufacturing cost of sales		—			15,164
Engineering, selling and administrative		28			5,870
Total expenses		28			21,034
Operating (loss) income		(28	)		2,495
Interest expense, net		—			(6	)
Other expense, net		—			(44	)
(Loss) income from discontinued operations before income taxes		(28	)		2,445
Income tax provision		—			560
(Loss) income from discontinued operations, net of tax	$	(28	)	$	1,885

The cash flows related to discontinued operations have not been segregated and are included in the Consolidated Statements of Cash Flows for the year ended December 31, 2022. The following table summarizes depreciation and other significant operating non-cash items, capital expenditures and financing activities of discontinued operations for the period through October 6, 2022:

	Period through October 6, 2022
Depreciation	$	496
Amortization of finite-lived intangible assets		42
Stock-based compensation expense		26
Capital expenditures		(662	)