10-Q/A

UNITED STATES

SECURITIES & EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended June 30, 2011
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File No. 1-106

THE LGL GROUP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	38-1799862
(State or Other Jurisdiction of	(I.R.S. Employer Identification No.)
Incorporation or Organization)
2525 Shader Rd., Orlando, Florida	32804
(Address of principal executive offices)	(Zip Code)
(407) 298-2000
(Registrant’s telephone number, including area code)
(Former name, former address, and former fiscal year if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x                      No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x                                No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer o                                                                           Accelerated filer o

Non-accelerated filer o                                                                           Smaller reporting company x

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o   No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class	Outstanding at August 11, 2011
Common Stock, $0.01 par value	2,617,260

Explanatory Note

The purpose of this Amendment No. 1 to the Quarterly Report on Form 10-Q of The LGL Group, Inc. for the quarterly period ended June 30, 2011, originally filed with the Securities and Exchange Commission on August 12, 2011 (the “Form 10-Q”), is solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL. Exhibit 101 was not properly included with the Form 10-Q when originally filed due to a technical issue.

No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

Item 6.                      Exhibits.

The following is a list of exhibits filed as part of this Form 10-Q:

Exhibit No.	Description
31.1	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certification of the Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2	Certification of the Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101.INS	XBRL Instance Document**
101.SCH	XBRL Taxonomy Extension Schema Document**
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document**
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document**
101.LAB	XBRL Taxonomy Extension Label Linkbase Document**
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document**

____________

* These exhibits were previously filed with the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011, originally filed with the Securities and Exchange Commission on August 12, 2011.

** Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed as part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 19434, as amended, and otherwise are not subject to liability under those sections.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	THE LGL GROUP, INC.
Date:            August 15, 2011	BY:	/s/ Gregory P. Anderson
		Gregory P. Anderson
		President and Chief Executive Officer (Principal Executive Officer)
Date:            August 15, 2011	BY:	/s/ R. LaDuane Clifton
		R. LaDuane Clifton
		Chief Accounting Officer (Principal Financial Officer)

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Condensed Consolidated Balance Sheets Parenthetical (USD $) In Thousands, except Share data	Jun. 30, 2011	Dec. 31, 2010
Condensed Consolidated Balance Sheets Parenthetical [Abstract]
Accounts receivable, allowances	$ 155	$ 161
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	10,000,000	10,000,000
Common stock, issued (in shares)	2,617,260	2,267,260
Common stock, outstanding (in shares)	2,617,260	2,267,260

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Condensed Consolidated Statements of Operations (USD $) In Thousands, except Share data	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Condensed Consolidated Statements of Operations [Abstract]
REVENUES	$ 9,646	$ 12,535	$ 18,666	$ 23,236
Manufacturing cost of sales	6,583	7,990	12,661	15,038
Engineering, selling and administrative	2,499	2,194	5,058	4,643
Total Cost and Expenses	9,082	10,184	17,719	19,681
OPERATING INCOME	564	2,351	947	3,555
Interest expense	(29)	(112)	(41)	(217)
Other income	5	36	14	31
Total Other Income (Expense)	(24)	(76)	(27)	(186)
INCOME BEFORE INCOME TAXES	540	2,275	920	3,369
Income tax provision	(194)	(98)	(333)	(126)
NET INCOME	$ 346	$ 2,177	$ 587	$ 3,243
Weighted average number of shares used in basic EPS calculation (in shares)	2,617,260	2,245,970	2,549,580	2,244,851
Weighted average number of shares used in diluted EPS calculation (in shares)	2,617,260	2,245,970	2,549,580	2,244,851
BASIC NET INCOME PER COMMON SHARE (in dollars per share)	$ 0.13	$ 0.97	$ 0.23	$ 1.44
DILUTED NET INCOME PER COMMON SHARE (in dollars per share)	$ 0.13	$ 0.97	$ 0.23	$ 1.44

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Document And Entity Information (USD $)	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Entity Registrant Name	LGL Group Inc
Entity Central Index Key	0000061004
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 18,652,319
Entity Common Stock, Shares Outstanding	2,617,260
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2011

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Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share

F.   Earnings Per Share

The Company computes earnings per share in accordance with ASC 260, Earnings Per Share (“ASC 260”).  Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period.  Diluted earnings per share adjusts basic earnings per share for the effects of stock options, non-participating restricted common stock, and other potentially dilutive financial instruments, only in the periods in which the effects are dilutive.  Shares of restricted stock granted to members of the Board of Directors as a portion of their director fees are deemed to be participating as defined by ASC 260 and therefore are included in the computation of basic earnings per share.

For the three and six months ended June 30, 2011, there were options to purchase 90,000 shares of common stock that were excluded from the diluted earnings per share computation because the impact of the assumed exercise of such stock options would have been anti-dilutive, based on the fact that their exercise price exceeded the market price of the common stock as of June 30, 2011.

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Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes [Abstract]

Income Taxes

K.   Income Taxes

The effective income tax rate for the six months ended June 30, 2011 was 36.2%, compared to an effective income tax rate of 3.6% for the six months ended June 30, 2010. The effective income tax rate for the six months ended June 30, 2010, was significantly lower due to the projected utilization of the Company’s net operating loss carryforwards, which were offset by the effect of the valuation allowance against those deferred tax assets, resulting in a reduction in the provision for income taxes recognized in that period. The valuation allowance against the Company’s deferred tax assets was released as of December 31, 2010. Beginning in the quarter ended March 31, 2011 and going forward, the Company, if it generates taxable income , will have a more normalized effective income tax rate, but does not expect to pay cash for federal income taxes until the remainder of its deferred tax assets related to net operating loss carryforwards have been utilized.

The Company provided a provision of ($194,000) for the three months ended June 30, 2011 for foreign and state income taxes and the expected utilization of a portion of the existing Federal and State net operating loss carryforwards. The Company provided a provision of ($98,000) for foreign and state income taxes for the three months ended June 30, 2010.

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Basis of Presentation

6 Months Ended

Jun. 30, 2011

Basis of Presentation [Abstract]

Basis of Presentation

B.   Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America 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 six months ended June 30, 2011, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2011.

For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

H.   Fair Value Measurements

The Company measures financial assets and liabilities at fair value in accordance with ASC 820, Fair Value Measurements and Disclosures (“ASC 820”).  These measurements involve various valuation techniques and assume that the transactions would occur between market participants in the most advantageous market for the Company.  The following is a summary of valuation techniques utilized by the Company for its significant financial assets and liabilities as of June 30, 2011 and December 31, 2010:

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.

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		June 30, 2011
	(in thousands)
Equity securities	$	49	$	--	$	--	$	49
U.S. Treasury securities	$	7,512	$	--	$	--	$	7,512

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		December 31, 2010
	(in thousands)
Equity securities	$	35	$	--	$	--	$	35
U.S. Treasury securities	$	949	$	--	$	--	$	949

Liabilities

To estimate the fair value of the swap liability on hedge contracts as of the measurement date, the Company obtains inputs other than quoted prices that are observable for the liability. Liabilities measured at fair value on a recurring basis are summarized below.

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		June 30, 2011
	(in thousands)
Interest rate swap	$	--	$	--	$	--	$	--

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		December 31, 2010
	(in thousands)
Interest rate swap	$	--	$	21	$	--	$	21

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Application of New Accounting Standards

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

Description Of New Accounting Pronouncements Not Yet Adopted

M.   Application of New Accounting Standards

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04, Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. Many of the amendments in this update change the wording used in the existing guidance to better align U.S. generally accepted accounting principles with International Financial Reporting Standards and to clarify the FASB’s intent on various aspects of the fair value guidance. This update is effective for us in our first quarter of 2012 and should be applied prospectively. The adoption of this new guidance will not have a significant impact on our consolidated financial statements.

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220), Presentation of Comprehensive Income, which requires companies to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This update eliminates the option to present the components of other comprehensive income as part of the statement of equity. This update is effective for us in our first quarter of 2012 and should be applied retrospectively. The adoption of this new guidance will not have a significant impact on our consolidated financial statements.

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Foreign Sales

6 Months Ended

Jun. 30, 2011

Foreign Sales [Abstract]

Foreign Sales

I.   Foreign Revenues

For the three and six months ended June 30, 2011 and 2010, foreign revenues were derived from the following countries:

	Three Months Ended June 30,
Foreign Revenues:	2011		2010
	(in thousands)
China	$	1,675	$	1,425
Malaysia		1,385		1,759
Thailand		420		264
Korea		400		48
Mexico		173		607
Singapore		122		371
All other foreign countries		957		883
Total foreign revenues	$	5,132	$	5,357

	Six Months Ended June 30,
Foreign Revenues:	2011		2010
	(in thousands)
Malaysia	$	2,998	$	3,304
China		2,952		2,788
Thailand		714		908
Singapore		606		475
Korea		572		109
Mexico		352		1,106
All other foreign countries		1,785		1,744
Total foreign revenues	$	9,979	$	10,434

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Other Comprehensive Income

6 Months Ended

Jun. 30, 2011

Other Comprehensive Income [Abstract]

Other Comprehensive Income

G.   Other Comprehensive Income (Loss)

Other comprehensive income (loss) includes the changes in fair value of investments classified as available-for-sale and the change in fair value of the derivative instrument designated as a cash flow hedge.

For the six months ended June 30, 2011, total comprehensive income was $648,000, comprising net income of $587,000 and change in accumulated other comprehensive loss of $61,000, compared to total comprehensive income of $3,300,000 in the six months ended June 30, 2010, comprising net income of $3,243,000 and change in accumulated other comprehensive loss of $57,000.

The components of accumulated other comprehensive income (loss), net of related taxes at June 30, 2011 and December 31, 2010, are as follows:

	June 30, 2011			December 31, 2010
	(in thousands)
Deferred loss on swap liability on hedge contracts	$	--		$	(21	)
Unrealized gain on available-for-sale securities		35			20
Other comprehensive income (tax effect)		(12	)		(37	)
Accumulated other comprehensive income (loss)	$	23		$	(38	)

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Condensed Consolidated Statement of Stockholder's Equity (USD $) In Thousands, except Share data	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
Balance at Dec. 31, 2010	$ 18,696	$ 22	$ 20,893	$ (2,181)	$ (38)
Balance (in shares) at Dec. 31, 2010	2,267,260	2,267,260
Net income for period	587			587
Other comprehensive income	61				61
Stock-based compensation	118		118
Issuance of new shares for capital offering	6,404	4	6,400
Issuance of new shares for capital offering (in shares)		350,000
Balance at Jun. 30, 2011	$ 25,866	$ 26	$ 27,411	$ (1,594)	$ 23
Balance (in shares) at Jun. 30, 2011	2,617,260	2,617,260

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Inventories

6 Months Ended

Jun. 30, 2011

Inventories [Abstract]

Inventories

C.   Inventories

Inventories are stated at the lower of cost or market value.  The Company reduces the value of its inventories to market value when the value is believed to be less than the cost of the item.

	June 30, 2011		December 31, 2010
	(in thousands)
Raw materials	$	3,432	$	2,685
Work in process		1,569		1,663
Finished goods		1,868		1,599
Total Inventories	$	6,869	$	5,947

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Long-Term Debt

6 Months Ended

Jun. 30, 2011

Long-Term Debt [Abstract]

Long-Term Debt

D.   Long-Term Debt

	June 30, 2011		December 31, 2010
Long-Term Debt:	(in thousands)
MtronPTI term loan with First National Bank of Omaha (“FNBO”) due January 24, 2013. The note bears interestat 30-day LIBOR plus 2.10%. Interest rate swap converted loan to a fixed rate, at 5.60% at June 30, 2011	$	--	$	669
MtronPTI term loan with J.P. Morgan Chase Bank, N.A.  (“Chase”) due January 31, 2013. The note bears interestat a fixed rate of 5.00%		536		--
Less: Current maturities		335		299
Long -Term Debt	$	201	$	370

On June 30, 2011, certain of the Company’s subsidiaries, together referred to as MtronPTI, entered into a loan agreement with Chase (the “Chase Loan Agreement”). The Chase Loan Agreement provides for the following credit facilities: (i) a revolving line of credit in the amount of $4,000,000, to be used solely for working capital needs (the “Chase Revolving Loan”), (ii) a commercial line of credit in the amount of $2,000,000, to be used solely for tangible capital expenditures and, at Chase’s sole discretion, business acquisitions (the “Chase Commercial Loan”), and (iii) a term loan in the amount of $536,000 (the “Chase Term Loan”). The Chase Revolving Loan bears interest at the greater of (x) Chase’s prime rate or (y) the one-month LIBOR rate plus 2.50% per annum (the “CB Rate”), with interest due and payable on a monthly basis and the outstanding principal balance plus all accrued but unpaid interest due and payable on June 30, 2013. The Chase Commercial Loan bears interest at the CB Rate, with interest due and payable on a monthly basis and the outstanding principal balance plus all accrued but unpaid interest due and payable on June 30, 2012. The Chase Term Loan bears interest at 5.00% per annum, with principal and interest due and payable in monthly installments of $29,500 and the outstanding principal balance, plus all accrued but unpaid interest due and payable on January 31, 2013.

All outstanding obligations of MtronPTI under the Chase Loan Agreement are collateralized by a first priority security interest in all of the assets of MtronPTI, excluding real property. Additionally, in connection with the Chase Loan Agreement, Piezo entered into a separate agreement with Chase providing that Piezo would not mortgage or otherwise encumber certain real property it owns in Florida while the credit facilities under the Chase Loan Agreement are outstanding.

The Chase Loan Agreement contains a variety of affirmative and negative covenants, including, but not limited to, financial covenants that MtronPTI maintain: (i) tangible net worth not less than the sum of $7,500,000, plus 50% of the net income earned by MtronPTI for the preceding six-month period at June 30, 2011, with the threshold amount continuing to increase at December 31st and June 30th of each year by 50% of the net income earned by MtronPTI for the preceding six months; (ii) net income of not less than $1,000,000 for the fiscal year-to-date period ending June 30, 2011, $1,500,000 for the fiscal year-to-date period ending September 30, 2011, and $2,000,000 for the fiscal year-to-date period ending December 31, 2011 and thereafter, provided that MtronPTI not experience two consecutive quarterly losses; and (iii) a debt service coverage ratio of not less than 1.25 to 1.00, tested at the end of every fiscal year.  At June 30, 2011, MtronPTI was in compliance with all covenants under the Chase Loan Agreement.

On October 14, 2004, MtronPTI entered into a loan agreement with FNBO that was amended and restated on July 30, 2010 (the “FNBO Loan Agreement”).  The FNBO Loan Agreement provided for a revolving credit facility of up to $4,000,000 as of June 30, 2011 (the “FNBO Revolving Loan”).  The principal balance of the FNBO Revolving Loan bore interest at 30-day LIBOR plus 3.25% (but in no event below 4.25%), with interest only payments due monthly and the final payment of principal and interest due on June 30, 2011.  There was also an unused commitment fee of 0.50% per annum, payable quarterly.  At June 30, 2011 and December 31, 2010, the amount outstanding under the FNBO Revolving Loan was $0 and the Company had $4,000,000 of available borrowing capacity.   The FNBO Loan Agreement also provided for a term loan in the original principal amount of $2,000,000 (the “FNBO Term Loan”), which bore interest at 30-day LIBOR plus 2.10% and, at June 30, 2011, had a remaining principal balance of approximately $596,000.  On June 30, 2011, the Company repaid the remaining principal balance under the FNBO Term Loan and terminated the FNBO Loan Agreement.

In connection with the FNBO Term Loan, MtronPTI entered into an interest rate swap agreement with FNBO from which it received periodic payments at the LIBOR Base Rate and made periodic payments at a fixed rate of 5.60% through the term of the FNBO Term Loan.  The Company had designated this swap as a cash flow hedge in accordance with Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging (“ASC 815”).  The fair value of the interest rate swap was ($14,000) at June 30, 2011 and ($21,000) at December 31, 2010, net of any tax effect.  The fair value of the interest rate swap at June 30, 2011, $14,000, has been recognized in earnings for the period ended June 30, 2011.  The interest rate swap agreement was terminated on June 30, 2011 in connection with the repayment of the FNBO Term Loan and the termination of the FNBO Loan Agreement.

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Related Party Transactions

6 Months Ended

Jun. 30, 2011

Related Party Transactions [Abstract]

Related Party Transactions

L.   Related Party Transactions

At June 30, 2011, the Company had $10,985,000 of cash and cash equivalents compared with $4,147,000 at December 31, 2010.  Of this amount, $7,512,000 at June 30, 2011, compared with $949,000 at December 31, 2010, is invested in United States Treasury money market funds for which an entity controlled by a 10% stockholder of the Company, and for which a director serves as Executive Vice President and Chief Financial Officer, serves as the investment manager. The fund transactions in 2011 and 2010 are directed at the discretion of Company management and carried out by the related party.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

E.   Stock Based Compensation

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 primary basis for the expected volatility assumption. The fair value of grants in prior years was calculated using historical volatility as the Company believes that the historical volatility over the life of the option is indicative of expected volatility in the future. 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. ASC 718, Stock Compensation, also requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Based on past history of actual performance, a zero forfeiture rate has been assumed.

On March 14, 2011, the Board of Directors granted options to purchase a total of 90,000 shares of the Company’s common stock to members of senior management and the Company’s Chairman of the Board. These stock options have an exercise price of $22.50 and vest as follows: 30% on the first anniversary of the grant date; an additional 30% on the second anniversary of the grant date; and the remaining 40% on the third anniversary of the grant date.  These stock options expire five years after the date of the grant.  Total stock compensation related expense for this grant for the six-month period ended June 30, 2011 was approximately $79,000. The unrecognized compensation expense related to these options of approximately $805,000 as of June 30, 2011 will be recognized over the vesting period.

Restricted stock awards are granted at a value equal to the market price of our common stock on the date of the grant. On December 15, 2010, the Board of Directors granted a total of 12,647 restricted shares to 14 employees of the Company. These shares vest as follows: 30% on the first anniversary of the grant date; an additional 30% on the second anniversary of the grant date; and the remaining 40% on the third anniversary of the grant date. Total stock compensation related expense for this grant for the six-month period ended June 30, 2011 was approximately $39,000. The unrecognized compensation expense related to these awards of approximately $200,000 as of June 30, 2011 will be recognized over the vesting period.

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Condensed Consolidated Statements of Cash Flows [Abstract]
Net income	$ 587	$ 3,243
Depreciation	336	309
Amortization of finite-lived intangible assets	72	72
Stock-based compensation	118	30
Deferred income tax provision	213	0
Decrease (increase) in accounts receivable	592	(2,215)
Increase in inventories	(922)	(1,076)
Increase in trade accounts payable, accrued liabilities and other liabilities	717	300
Decrease in other current assets	20	145
Net cash provided by operating activities	1,733	808
Capital expenditures	(1,166)	(168)
Net cash used in investing activities	1,166	168
Net repayments on note payable to bank	0	664
Proceeds from issuance of common stock	6,562	0
Payment of expenses related to the public offering	(158)	0
Proceeds from long-term debt	536	0
Repayments of long-term debt	(669)	(181)
Net cash provided by (used in) financing activities	6,271	(845)
Increase (decrease) in cash and cash equivalents	6,838	(205)
Cash and cash equivalents at beginning of period	4,147	3,816
Cash and cash equivalents at end of period	10,985	3,611
Cash paid for income taxes	35	0
Cash paid for interest	$ 31	$ 218

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Subsidiaries of the Registrant

6 Months Ended

Jun. 30, 2011

Subsidiaries of the Registrant [Abstract]

Subsidiaries of the Registrant

A.   Subsidiaries of the Registrant

The LGL Group, Inc. (the “Company”), formerly Lynch Corporation, 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 design, manufacture, and sale of standard and custom engineered electronic components.

As of June 30, 2011, the subsidiaries of the Company are as follows:

	Owned By LGL
M-tron Industries, Inc.		100.0	%
M-tron Industries, Ltd.		100.0	%
Piezo Technology, Inc.		100.0	%
Piezo Technology India Private Ltd.		99.0	%
Lynch Systems, Inc.		100.0	%

The Company operates through its principal subsidiary, M-tron Industries, Inc., which includes the operations of M-tron Industries, Ltd. (“Mtron”) and Piezo Technology, Inc. (“PTI”).  The combined operations of Mtron and PTI are referred to herein as “MtronPTI.” MtronPTI has operations in Orlando, Florida, Yankton, South Dakota and Noida, India.  In addition, MtronPTI has sales offices in Hong Kong and Shanghai, China. During 2007, the Company sold the operating assets of Lynch Systems, Inc., a subsidiary of the Company, to an unrelated third party.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

J.   Commitments and Contingencies

In the normal course of business, the Company and its subsidiaries may become defendants in certain product liability, worker claims and other litigation.  The Company and its subsidiaries have no litigation pending at this time.

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Subsequent Events

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

Schedule Of Subsequent Events

N.   Subsequent Events

On July 28, 2011, the Company sold certain real property located in Bainbridge, Georgia for $322,610, paid in the form of a promissory note, dated August 1, 2011, in the principal amount of $322,610, bearing interest at a rate of 7% per annum, with all interest and principal due and payable on August 1, 2013.  The real property was formerly used in connection with the operations of Lynch Systems, a subsidiary of the Company whose operating assets were sold in 2007.  The promissory note is secured by the real property sold, and if any portion of such real property is re-sold prior to the note’s maturity (any such re-sale subject to the Company’s written consent), the Company will receive 85% of the net proceeds from the transaction, up to the principal amount of the note and all accrued interest thereon.

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Condensed Consolidated Balance Sheets - Unaudited (USD $) In Thousands	Jun. 30, 2011	Dec. 31, 2010
Current Assets:
Cash and cash equivalents	$ 10,985	$ 4,147
Accounts receivable, less allowances of $155 and $161, respectively	5,190	5,782
Inventories	6,869	5,947
Deferred income taxes	1,295	1,295
Prepaid expenses and other current assets	310	317
Total Current Assets	24,649	17,488
Property, Plant and Equipment:
Land	672	668
Buildings and improvements	5,447	5,000
Machinery and equipment	14,633	13,918
Gross Property, Plant and Equipment	20,752	19,586
Less: accumulated depreciation	(16,094)	(15,758)
Net Property, Plant and Equipment	4,658	3,828
Deferred income taxes, net	1,842	2,055
Other assets, net	269	354
Total Assets	31,418	23,725
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	2,880	2,033
Accrued compensation and commissions expense	1,447	1,302
Other accrued expenses	689	1,025
Current maturities of long-term debt	335	299
Total Current Liabilities	5,351	4,659
Long-term debt, net of current portion	201	370
Total Liabilities	5,552	5,029
Commitments and Contingencies	0	0
Stockholders' Equity:
Common stock, $0.01 par value - 10,000,000 shares authorized; 2,617,260 and 2,267,260 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively	26	22
Additional paid-in capital	27,411	20,893
Accumulated deficit	(1,594)	(2,181)
Accumulated other comprehensive income (loss)	23	(38)
Total Stockholders' Equity	25,866	18,696
Total Liabilities and Stockholders' Equity	$ 31,418	$ 23,725