LGL Group Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>LGL Group Inc. reported a net income of $5.45 million and total assets of $5.43 million for FY2023, while divesting certain investments.</b>

AI Summary

LGL GROUP INC (LGL) filed a Annual Report (10-K) with the SEC on April 1, 2024. LGL Group Inc. reported net income of $5,454,639 for the fiscal year ended December 31, 2023. Total assets for LGL Group Inc. were $5,434,521 as of December 31, 2023. The company's retained earnings were $5,373,055 as of December 31, 2023. LGL Group Inc. had $81,584 in total debt as of December 31, 2023. During 2023, the company sold its investments in mutual funds managed by GAMCO Investors, Inc. and 198,250 shares of IronNet, Inc.

Why It Matters

For investors and stakeholders tracking LGL GROUP INC, this filing contains several important signals. The filing details the company's financial performance and position as of year-end 2023, providing key figures for investors and analysts. The sale of investments in GAMCO Investors, Inc. mutual funds and IronNet, Inc. shares indicates a strategic shift in the company's asset allocation.

Risk Assessment

Risk Level: low — LGL GROUP INC shows low risk based on this filing. The filing is a standard 10-K annual report with no immediate red flags, indicating a routine disclosure of financial information.

Analyst Insight

Review the detailed financial statements and management discussion to understand the drivers of net income and the impact of investment sales.

Financial Highlights

total Assets

5,434,521

total Debt

81,584

net Income

5,454,639

eps

0.01

Key Numbers

• 5,454,639 — Net Income (For the fiscal year ended December 31, 2023)
• 5,434,521 — Total Assets (As of December 31, 2023)
• 5,373,055 — Retained Earnings (As of December 31, 2023)
• 81,584 — Total Debt (As of December 31, 2023)
• 0.01 — Basic and diluted earnings per share (For the fiscal year ended December 31, 2023)

Key Players & Entities

• LGL GROUP INC (company) — FILER
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240401 (date) — FILED AS OF DATE
• 0000061004 (company) — CENTRAL INDEX KEY
• 3679 (industry) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (state) — STATE OF INCORPORATION
• ORLANDO (location) — CITY
• GAMCO Investors, Inc. (company) — investments in mutual funds

FAQ

Risk Factors

• Marketable Securities [medium — financial]: The company had investments in mutual funds managed by GAMCO Investors, Inc. and IronNet, Inc., which were sold during 2023.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K filing.
• 2024-04-01: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value LGL NYSE American Warran
• $4.76 — iates of the registrant, based upon the $4.76 per share closing price of the registra
• $40,733 — th a fair market value of approximately $40,733. Our approach is to establish long te
• $3.35 million — l "DFNS." In 2019, the Company invested $3.35 million in LGL Systems. LGL Systems held 20% of
• $23 million — right Corporation. 1986 Lynch issued $23 million of 8% convertible subordinated debentur
• $23,513 — with a fair value of $40,733, of which $23,513 was held within the Merchant Investment

Filing Documents

• lglg20231231_10k.htm (10-K) — 2358KB
• ex_641988.htm (EX-10.1A) — 28KB
• ex_641989.htm (EX-10.1B) — 42KB
• ex_646389.htm (EX-18.1) — 4KB
• ex_641987.htm (EX-19.1) — 70KB
• ex_572207.htm (EX-21.1) — 11KB
• ex_572208.htm (EX-23.1) — 3KB
• ex_614865.htm (EX-23.2) — 4KB
• ex_572209.htm (EX-31.1) — 13KB
• ex_572210.htm (EX-31.2) — 13KB
• ex_572211.htm (EX-32.1) — 5KB
• ex_572212.htm (EX-32.2) — 5KB
• ex_626409.htm (EX-97.1) — 20KB
• logo.jpg (GRAPHIC) — 6KB
• peo-neocapvsnetincome.jpg (GRAPHIC) — 31KB
• peo-neocapvstsr.jpg (GRAPHIC) — 28KB
• 0001437749-24-010393.txt (&nbsp;) — 10695KB
• lgl-20231231.xsd (EX-101.SCH) — 68KB
• lgl-20231231_cal.xml (EX-101.CAL) — 81KB
• lgl-20231231_def.xml (EX-101.DEF) — 490KB
• lgl-20231231_lab.xml (EX-101.LAB) — 414KB
• lgl-20231231_pre.xml (EX-101.PRE) — 532KB
• lglg20231231_10k_htm.xml (XML) — 1882KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments 20 Item 1C. Cybersecurity 21 Item 2.

Properties

Properties 21 Item 3.

Legal Proceedings

Legal Proceedings 21 Item 4. Mine Safety Disclosures 21 PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22 Item 6. Reserved 22 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 28 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 29 Item 9A.

Controls and Procedures

Controls and Procedures 29 Item 9B. Other Information 29 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 29 PART III Item 10. Directors, Executive Officers and Corporate Governance 30 Item 11.

Executive Compensation

Executive Compensation 35 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 39 Item 13. Certain Relationships and Related Transactions, and Director Independence 40 Item 14. Principal Accountant Fees and Services 41 PART IV Item 15. Exhibits and Financial Statement Schedules 42 Item 16. Form 10-K Summary 43

Signatures

Signatures 44 Consolidated Financial Information - The LGL Group, Inc. 45 Table of Contents PART I Cautionary Statement Concerning Forward-Looking Statements This annual report on Form 10-K (this "Report") and the Company's (as defined below) other communications and statements may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements about the Company's beliefs, plans, objectives, goals, expectations, estimates, projections and intentions. These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company's control. The words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "target," "goal," and similar expressions are intended to identify forward-looking statements. All forward-looking statements, by their nature, are subject to risks and uncertainties. The Company's actual future results may differ materially from those set forth in the Company's forward-looking statements. For information concerning these factors and related matters, see "Risk Factors" in Part I, Item 1A in this Report, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 in this Report. However, other factors besides those referenced could adversely affect the Company's results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any forward-looking statements made by the Company herein speak as of the date of this Report. The Company does not undertake to revise or update any forward-looking statement to reflect subsequent events or circumstances, except as required by applicable law. As a result, you should not place undue reliance on these forward-looking statements. Item 1

Business

Business For the purposes of this discussion, the terms "LGL," "LGL Group," the "Company," "we," "our," and "us" refer collectively to The LGL Group, Inc. and its subsidiaries. Unless otherwise stated, all dollar amounts are in thousands. General The LGL Group, Inc. is a holding company engaged in services, merchant investment and manufacturing business activities. Since 1985, the Company has acquired 32 businesses, sold 11, and spun off 3, culminating with the spin-off of M-tron Industries, Inc. in October 2022. The Company was incorporated in 1928 under the laws of the State of Indiana, and in 2007, the Company was reincorporated under the laws of the State of Delaware as The LGL Group, Inc. We maintain our executive offices at 2525 Shader Road, Orlando, Florida 32804. Our telephone number is (407) 298-2000. Our Internet address is www.lglgroup.com . Our common stock and warrants are traded on the NYSE American ("NYSE") under the symbols "LGL" and "LGL WS," respectively. LGL's business strategy is primarily focused on growth through expanding new and existing operations across diversified industries. The LGL Group Inc.'s engineering and design origins date back to the early part of the last century. In 1917, Lynch Glass Machinery Company, the predecessor of LGL, was formed, and emerged in the late 1920s as a successful manufacturer of glass-forming machinery. The Company was then renamed Lynch Corporation ("Lynch") and was incorporated in 1928 under the laws of the State of Indiana. In 1946, Lynch was listed on the 'New York Curb Exchange,' the predecessor to the NYSE American. The Company has had a long history of owning and operating various businesses in the precision engineering, manufacturing and services sectors. As a holding company, we believe that the cash flow and asset coverage from our subsidiaries will allow us to maintain a strong balance sheet and ample liquidity over time. We seek to invest available cash and cash equivalents and marketable

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View this 10-K filing on SEC EDGAR