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Note C - Related Party Transactions
6 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

C.     Related Party Transactions

 

Allocation of General Corporate Expenses

 

For purposes of preparing these Consolidated and Combined Financial Statements on a “carve-out” basis for periods prior to the Separation, we have allocated a portion of LGL Group’s corporate expenses, totaling $260,000 and $651,000 to the Company for the three and six months ended June 30, 2022, respectively, which are recorded within engineering, selling and administrative expenses on the Consolidated and Combined Statements of Operations. See Note B – Summary of Significant Accounting Policies for a discussion of the methodology used to allocate corporate-related costs for purposes of preparing these financial statements on a “carve-out” basis for the periods prior to the Separation.

 

Transactions with LGL Group, Inc.

 

MtronPTI and LGL Group have entered into an Amended and Restated Transitional Administrative and Management Services Agreement, which sets out the terms for services to be provided between the two companies post Separation. The current terms result in a net monthly payment of $4,000 per month from LGL Group to MtronPTI.

 

MtronPTI and LGL Group have agreed to share any excess Separation costs. Included in other income (expense), net on the Consolidated and Combined Statements of Operations is an amount of $28,000 which represents 50% of the excess Separation costs incurred for the three months ended March 31, 2023. There were no excess Separation costs during the second quarter of 2023.

 

At June 30, 2023 and December 31, 2022, there was a balance due from MtronPTI to LGL Group of $0 and $6,000, respectively, which is included within accounts payable on the Consolidated and Combined Balance Sheets.