Note 3 - Segment Information

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Segment Reporting Disclosure [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 allocation resources. As such, the Company reports its results in two 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 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 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 assess 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 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 presents LGL Group's operations by segment:

	Three Months Ended March 31, 2025
	Electronic Instruments		Merchant Investment		Corporate			Consolidated
Revenues:
Net sales	$	498	$	—	$	—		$	498
Net investment income		—		247		170			417
Net gains (losses)		—		—		3			3
Total revenues		498		247		173			918
Less:
Manufacturing cost of sales		237		—		—			237
Engineering		57		—		—			57
Commissions		19		—		—			19
Sales and marketing		57		—		—			57
Accounting		—		—		75			75
Compensation		56		—		192			248
Corporate allocations (a)		11		93		(104	)		—
Other segment items (b)		42		1		141			184
Engineering, selling and administrative		242		94		304			640
Total expenses		479		94		304			877
Segment profit (loss)	$	19	$	153	$	(131	)	$	41
Reconciliation of Segment profit (loss) to Income (loss) from operations before income taxes
Adjustments and reconciling items									—
Income from operations before income taxes								$	41

	Three Months Ended March 31, 2024
	Electronic Instruments		Merchant Investment		Corporate			Consolidated
Revenues:
Net sales	$	392	$	—	$	—		$	392
Net investment income		—		289		210			499
Net (losses) gains		—		—		(3	)		(3	)
Total revenues		392		289		207			888
Less:
Manufacturing cost of sales		204		—		—			204
Engineering		39		—		—			39
Commissions		19		—		—			19
Sales and marketing		33		—		—			33
Accounting		—		—		156			156
Compensation		58		—		130			188
Corporate allocations (a)		9		49		(58	)		—
Other segment items (b)		28		—		142			170
Engineering, selling and administrative		186		49		370			605
Total expenses		390		49		370			809
Segment profit (loss)	$	2	$	240	$	(163	)	$	79
Reconciliation of Segment profit (loss) to Income (loss) from operations before income taxes
Adjustments and reconciling items									—
Income from operations before income taxes								$	79

^(a) The Electronic Instruments and Merchant Investment segments are allocated overhead expenses from the Corporate segment based on each segment's asset 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, and certain other overhead expenses.

Other Segment Disclosures

The following tables presents other segment information by segment for the three months ended March 31, 2025 and 2024:

	Three Months Ended March 31, 2025
	Electronic Instruments		Merchant Investment		Corporate		Total		Adjustments and Reconciling Items		Consolidated
Interest revenue (a)	$	—	$	247	$	170	$	417	$	—	$	417
Amortization (b)		6		—		—		6		—		6
Other significant non-cash items
Stock-based compensation (c)		—		—		9		9		—		9
Capital expenditures		—		—		—		—		—		—

	Three Months Ended March 31, 2024
	Electronic Instruments		Merchant Investment		Corporate		Total		Adjustments and Reconciling Items		Consolidated
Interest revenue (a)	$	—	$	289	$	210	$	499	$	—	$	499
Amortization (b)		5		—		—		5		—		5
Other significant non-cash items
Stock-based compensation (c)		—		—		9		9		—		9
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 other segment information by segment as of  March 31, 2025 and December 31, 2024:

	March 31, 2025
	Electronic Instruments		Merchant Investment		Corporate		Total		Adjustments and Reconciling Items		Consolidated
Total assets	$	998	$	24,993	$	17,311	$	43,302	$	—	$	43,302

	December 31, 2024
	Electronic Instruments		Merchant Investment		Corporate		Total		Adjustments and Reconciling Items		Consolidated
Total assets	$	1,249	$	24,748	$	17,148	$	43,145	$	—	$	43,145