| ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------------------------------------------------------------------------------------|

| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| Delaware                                                      |   | 38-1799862                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State or Other Jurisdiction ofIncorporation or Organization) |   | (I.R.S. EmployerIdentification No.) |

| 2525 Shader Road, Orlando, Florida       |   | 32804      |   |
|------------------------------------------|--------|------------|--------|
| (Address of Principal Executive Offices) |   | (Zip Code) |   |

| Title of each class           |   | Name of each exchange on which registered |
|-------------------------------|--------|-------------------------------------------|
| Common Stock, $0.01 Par Value |   | NYSE Amex                                 |

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|     |                                                                                                               | Page   |
|----------|--------------------------------------------------------------------------------------------------------------------|--------|
| PART I   |                                                                                                               |   |
| Item 1   | Business                                                                                                           | 1      |
| Item 1A  | Risk Factors                                                                                                       | 7      |
| Item 1B  | Unresolved Staff Comments                                                                                          | 14     |
| Item 2   | Properties                                                                                                         | 14     |
| Item 3   | Legal Proceedings                                                                                                  | 15     |
| Item 4   | (Removed and Reserved)                                                                                             | 15     |
| PART II  |                                                                                                               |   |
| Item 5   | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 16     |
| Item 6   | Selected Financial Data                                                                                            | 18     |
| Item 7   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 19     |
| Item 7A  | Quantitative and Qualitative Disclosures About Market Risk                                                         | 25     |
| Item 8   | Financial Statements and Supplementary Data                                                                        | 25     |
| Item 9   | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure                               | 25     |
| Item 9A  | Controls and Procedures                                                                                            | 26     |
| Item 9B  | Other Information                                                                                                  | 26     |
| PART III |                                                                                                               |   |
| Item 10  | Directors, Executive Officers and Corporate Governance                                                             | 27     |
| Item 11  | Executive Compensation                                                                                             | 30     |
| Item 12  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 34     |
| Item 13  | Certain Relationships and Related Transactions, and Director Independence                                          | 35     |
| Item 14  | Principal Accountant Fees and Services                                                                             | 36     |
| PART IV  |                                                                                                               |   |
| Item 15  | Exhibits and Financial Statement Schedules                                                                         | 38     |

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| ·   | Accuracy -- the frequency of the signal does not vary significantly when the product is subjected to a range of operating environments; and |
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| ·   | Stability -- the frequency of the signal does not vary significantly when the product is subjected to a range of operating environments; and |
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| ·   | Low electronic noise -- the signal does not add interfering signals that can degrade the performance of electronic systems. |
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| ·   | The diversion of our management’s attention from our existing business to integrate the operations and personnel of the acquired or combined business or joint venture;  |
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| ·   | Possible adverse effects on our operating results during the integration process;  |
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| ·   | Substantial acquisition related expenses, which would reduce our net income, if any, in future years;  |
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| ·   | The loss of key employees and customers as a result of changes in management; and  |
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| ·   | Our possible inability to achieve the intended objectives of the transaction |
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| ·   | General economic conditions affecting the availability of long-term or short-term credit facilities, the purchasing and payment patterns of our customers, or the requirements imposed by our suppliers; |
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| ·   | Economic conditions in our industry and in the industries that typically comprise our customers and suppliers; |
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| ·   | Changes in financial estimates or investment recommendations by securities analysts relating to our common stock; |
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| ·   | Loss of a major customer; |
|--------------------|---------------------------|

| ·   | Announcements by our or our competitors of significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments; and |
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| ·   | Changes in key personnel. |
|--------------------|---------------------------|

| ·   | Prohibiting our stockholders from fixing the number of directors; and |
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| ·   | Establishing advance notice requirements for stockholder proposals that can be acted on at stockholder meetings and nominations to our Board of Directors (the “Board”). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Fiscal Year 2011  |   | High   |   |   | Low    |
|-------------------|--------|--------|--------|--------|--------|
| First Quarter (1) |   | $      | 25.85  |   |   | $ | 12.93 |
|              |   |   |   |   |   |   |   |
| Fiscal Year 2010  |   | High   |   |   | Low    |
| First Quarter     |   | $      | 6.90   |   |   | $ | 3.29 |
| Second Quarter    |   |   | 14.20  |   |   |   | 5.55 |
| Third Quarter     |   |   | 23.79  |   |   |   | 10.19 |
| Fourth Quarter    |   |   | 34.71  |   |   |   | 17.05 |
|              |   |   |   |   |   |   |   |
| Fiscal Year 2009  |   | High   |   |   | Low    |
| First Quarter     |   | $      | 2.28   |   |   | $ | 1.18 |
| Second Quarter    |   |   | 4.50   |   |   |   | 1.70 |
| Third Quarter     |   |   | 3.97   |   |   |   | 2.59 |
| Fourth Quarter    |   |   | 3.75   |   |   |   | 2.30 |

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| Plan Category                                              |   | Number of securities to be issued upon exercise of outstanding options, warrants and rights(a) |   |   | Weighted-average exercise price of outstanding options, warrants and rights(b) |   |   | Number ofsecurities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) |
|------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity compensation plans approved by security holders (1) |   |                                                                                           | --     |   |                                                                           |   | --     |                                                                                                                                                |   |   | 476,441 |
|                                                       |   |                                                                                           |   |   |                                                                           |   |   |                                                                                                                                                |   |   |   |
| Equity compensation plans not approved by security holders |   |                                                                                           | --     |   |                                                                           |   | --     |                                                                                                                                                |   |   | -- |
| Total                                                      |   |                                                                                           | --     |   |                                                                           |   | --     |                                                                                                                                                |   |   | 476,441 |

| (1)   | Our 2001 Equity Incentive Plan was originally approved by our stockholders on May 2, 2002, and an amendment to the 2001 Equity Incentive Plan was approved by our stockholders on May 26, 2005.  600,000 shares of our common stock are authorized for issuance under the 2001 Equity Incentive Plan, as amended (the “2001 Equity Incentive Plan”).  No award may be granted under the 2001 Equity Incentive Plan after December 10, 2011, but awards previously granted may extend beyond that date. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Year ended December 31, (a) |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|
|                                                                                                                                                                                        (in thousands, except share and per share data) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2010                        |   |   | 2009 |   |   | 2008 |   |   | 2007 |   | 2006 |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                           | 46,656 |   |   | $ | 31,301 |   |   | $ | 40,179 |   |   | $ | 39,536 |   | $ | 41,549 |
| Operating income (loss) (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                        | 6,759 |   |   |   | (2,154 | ) |   |   | (810 | ) |   |   | (1,805 | ) |   | 1,356 |
| Income (loss) before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                        | 6,478 |   |   |   | (2,503 | ) |   |   | (1,155 | ) |   |   | (2,511 | ) |   | 732 |
| Benefit (provision) for income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                        | 2,945 |   |   |   | (19 | ) |   |   | (127 | ) |   |   | (135 | ) |   | 225 |
| Net income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                           | 9,423 |   |   | $ | (2,522 | ) |   | $ | (1,282 | ) |   | $ | (2,646 | ) | $ | 957 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares used in basic and diluted EPS calculation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                        | 2,248,180 |   |   |   | 2,200,010 |   |   |   | 2,174,173 |   |   |   | 2,158,120 |   |   | 2,154,702 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per common share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted net income (loss) per common share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                           | 4.19 |   |   | $ | (1.15 | ) |   | $ | (0.59 | ) |   | $ | (1.18 | ) | $ | 0.44 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | December 31, (a) |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|
|                                                                                                                                                                                    (in thousands) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2010             |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                | 4,147 |   |   | $ | 3,816 |   |   | $ | 5,325 |   |   | $ | 5,233 |   |   | $ | 4,429 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Working capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |             | 12,829 |   |   |   | 5,466 |   |   |   | 9,970 |   |   |   | 11,024 |   |   |   | 12,973 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             | 23,725 |   |   |   | 18,568 |   |   |   | 22,652 |   |   |   | 23,142 |   |   |   | 31,343 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total long-term debt (including current portion)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             | 669 |   |   |   | 3,289 |   |   |   | 4,057 |   |   |   | 4,454 |   |   |   | 5,127 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders' equity (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |             | 18,696 |   |   |   | 9,010 |   |   |   | 11,332 |   |   |   | 12,642 |   |   |   | 16,742 |

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| (a) | The data presented excludes the results of operations of Lynch Systems, Inc., as its operating assets were sold during 2007.  The operations of Lynch Systems, Inc. were discontinued in 2007. |
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| (b) | Operating income (loss) is revenues less operating expenses, which excludes investment income, interest expense, gain on sale of land and equipment, other income and taxes.  Included are asset impairment and restructuring charges and the gain on deconsolidation. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | No cash dividends have been declared during the periods presented. |
|-----|--------------------------------------------------------------------|

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| 2011  |   | $      | 299 |
|-------|--------|--------|-----|
| 2012  |   |   | 321 |
| 2013  |   |   | 49  |
| Total |   | $      | 669 |

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|   Name   |   Age |  Director Since | Offices and Positions Held With the Company, Business Experience and Principal Occupation For Last Five Years, and Directorships in Public Corporations and Investment Companies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------------|-----------------|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Marc Gabelli       | 43              | 2004                 | Chairman of the Board, The LGL Group, Inc. (September 2004 to present); Managing Director and President of GGCP, Inc. (1999 to present), a private corporation that makes investments for its own account; Managing Member of Commonwealth Management Partners LLC (2008 to present), which is the managing member of Venator Global LLC, which is the general partner of Venator Merchant Fund, LP, an investment management vehicle; Director of IFIT Group, a Zurich based financial services administration firm; and Director and Managing Partner of GAMA Funds Holdings GmbH.  Mr. Gabelli’s qualifications to serve include his extensive knowledge of the Company’s business and industry due to his longstanding service on the Board, as well as his financial expertise and leadership experience as an executive of various investment firms.                                                                                                                                                                    |
| Timothy Foufas     | 42              | 2007                 | Vice Chairman of the Board, The LGL Group, Inc. (2009 to present); Director, ICTC Group, Inc. (2010 to present), a rural local exchange carrier headquartered in Nome, ND; Managing Partner, Plato Foufas & Co. LLC (2005 to present), a financial services company; President, Levalon Properties LLC (2007 to present), a real estate property management company; Senior Vice President, Bayshore Management Co. LLC (2005 to 2006); Director of Investments, Liam Ventures Inc. (2000 to 2005), a private equity investment firm.  Mr. Foufas brings to the Board his management skills and expertise in financial, investment and real estate matters.                                                                                                                                                                                                                                                                                                                                                                           |
| Patrick J. Guarino | 68              | 2006                 | Vice Chairman of the Board, The LGL Group, Inc. (March 2010 to present); Managing Partner of August Properties LLC (2005 to present) a private investment company with real estate and securities holdings; Managing Partner of Independent Board Advisory Services, LLC (2002 to 2005), a corporate governance consulting firm; Retired Executive Vice President, Ultramar Diamond Shamrock Corporation (1996 to 2000), a New York Stock Exchange (“ NYSE”), Fortune 200, international petroleum refining and marketing company; Senior Vice President and General Counsel, Ultramar Corporation (1992 to 1996), a NYSE, Fortune 200, international petroleum and marketing company; Senior Vice President and General Counsel of Ultramar PLC, (1986 to 1992), a London Stock Exchange listed international, integrated oil company.  Mr. Guarino brings to the Board valuable knowledge of and fluency with legal and corporate governance matters, and the perspective of a former General Counsel of a public company.  |
| Michael Chiu       | 42              | 2010                 | Technology and business consultant (June 2010 to present); President and Chief Technology Officer, Trophos Energy (September 2008 to May 2010), a venture-backed bio-energy company; Business Unit Manager, Teradyne, Inc. (May 2005 to April 2007), a semiconductor automated test equipment supplier; Various roles in marketing, product development and engineering at Teradyne Inc. (1994 to April 2007).  Dr. Chiu holds a Ph.D. in engineering and an MBA, both from the Massachusetts Institute of Technology. He brings to the Board his experience in management and operations as well as background in product development, engineering and research.                                                                                                                                                                                                                                                                                                                                                                              |

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| Paul Kaminski     | 49 | 2010 | Chief Financial Officer, Wellspring Capital Management (December 2010 to present), a private equity firm focused on the middle market; Managing Director and Chief Financial Officer of Bruckmann, Rosser, Sherrill & Co. Management L.P. (December 1995 to present), the management company of a private equity fund based in New York, NY (December 1995 to December 2010); Founding Board Member of the Private Equity CFO Association in New York (2002 to present); Various roles within the transaction advisory services and audit practices, Coopers & Lybrand LLP (August 1984 to December 1995).  Mr. Kaminski shares with the Board his significant experience in accounting and is a certified public accountant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------------|----|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Hans Wunderl      | 59 | 2010 | Senior Vice President and Managing Director, Fico (February 2010 to present), a Dutch company that manufactures infrastructure equipment for the semiconductor industry ; Chief Operating Officer, The LGL Group, Inc. (February 2009 to January 2010); Chief Operating Officer, BE Semiconductor Industries N.V. (January 2004 to January 2008), a manufacturer of back-end microelectronic assembly equipment; Chief Executive Officer of Oerlikon Esec (September 2002 to December 2003), a global supplier of die and wire bonding equipment for the semiconductor industry; President – U.S. Operations, of ASM USA (August 1999 to September 2002), a supplier of semiconductor process equipment.  Mr. Wunderl shares with the Board his in-depth knowledge of the industry and experience in high technology development and marketing.                                                                                                                                                                                                                                                                                                                                                                                                    |
| Robert S. Zuccaro | 53 | 2010 | Executive Vice President and Chief Financial Officer, GAMCO Investors, Inc. (February 2011 to present), a publicly-traded registered  investment advisor and broker dealer; Managing Director and Chief Financial Officer, Commonwealth Management Partners LLLP (April 2009 to February 2011), a private investment management company and registered CT investment advisor; Executive Vice President and Chief Accounting Officer, National Financial Partners Corporation (July 2003 to December 2008), an independent financial services distribution company ; Vice President and Chief Financial Officer, GAMCO Investors, Inc., (May 1998 to July 2003); Vice President and Treasurer, Cybex International Inc. (August 1984 to December 1997), an international manufacturer and marketer of medical, rehabilitative and fitness products ; Director of Teton Advisors, Inc. (March 2010 to present), an investment advisor to certain mutual funds ; and Director of ICTC Group, Inc. (2010 to present), a rural local exchange carrier headquartered in Nome, ND.  Mr. Zuccaro brings to the Board his significant experience in financial services, publicly-held corporations and manufacturing operations, and is a certified public accountant. |

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| Name                | Age | Officers and Positions Held With the Company, Business Experience and Principal Occupation For Last Five Years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------------------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Gregory P. Anderson | 51  | President and Chief Executive Officer, The LGL Group, Inc. (July 2009 to present);  Vice President of Operations of  MtronPTI (December 2000 to June 2009), Chief Executive Officer and Chairman of the Board of Directors of The LGL Group, Inc.’s subsidiary, M-tron Industries, Ltd. (July 2009 to present); President and Chairman of the Board of The LGL Group, Inc.’s subsidiary, Piezo Technology, Inc. (July 2009 to present); and Chairman of the Board of the LGL Group, Inc.’s subsidiary, Piezo Technology India Private Ltd. (July 2009 to present).  |
| R. LaDuane Clifton  | 38  | Chief Accounting Officer, The LGL Group, Inc. (March 2010 to present); Member of Audit Committee of Community First Credit Union of Florida (September 2008 to July 2010); Corporate Controller of The LGL Group, Inc. (August 2009 to March 2010); Chief Financial Officer of a21, Inc. (August 2008 to August 2009); Corporate Controller of a21, Inc. (March 2007 to August 2008); Auditor at KPMG LLP (August 2004 to March 2007).                                                                                                                                                                         |

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| Name and Principal Position                                                                    | Year     | Salary($)      | Bonus($)   | Stock Awards($) | All OtherCompensation($)     | Total($)       |
|------------------------------------------------------------------------------------------------|----------|----------------|------------|-----------------|------------------------------|----------------|
| Gregory P. Anderson(1)        Chief Executive Officer  | 20102009 | 170,000150,888 | 34,000(2)- | 101,180(3)-     |    21,250(4)- | 326,430150,888 |
| R. LaDuane Clifton(5)Chief Accounting Officer                                                  | 2010     | 130,575        | 13,100(6)  | 52,101(7)       |    32,225(8)  | 228,001        |

| (1)   | Mr. Anderson has served as the Company’s Chief Executive Officer since July 2, 2009.  Previously, he served as the Vice President of Operations of MtronPTI from December 2000 to June 2009. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | On, July 21, 2010, the Company awarded Mr. Anderson a discretionary cash bonus of $34,000. |
|-----------------|--------------------------------------------------------------------------------------------|

| (3)   | On July 21, 2010, the Company granted Mr. Anderson 3,178 restricted shares of the Company’s common stock under the 2001 Equity Incentive Plan with a grant date fair value of $10.44 per share.  These shares vested immediately upon the date of the grant, but are not transferable until the termination of Mr. Anderson’s employment with the Company.  On December 15, 2010, the Company granted Mr. Anderson 3,598 restricted shares of the Company’s common stock under the 2001 Equity Incentive Plan with a grant date fair value of $18.90 per share.  These shares will 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. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Mr. Anderson received a one-time paid time-off (“PTO”) payout in the amount of $21,250. |
|-----------------|-----------------------------------------------------------------------------------------------------|

| (5)   | Mr. Clifton has served as the Company’s Chief Accounting Officer since March 2010.  He previously served as the Company’s Corporate Controller from August 2009 to March 2010. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | On July 21, 2010, the Company awarded Mr. Clifton a discretionary cash bonus of $13,100. |
|-----------------|------------------------------------------------------------------------------------------|

| (7)   | On July 21, 2010, the Company granted Mr. Clifton 1,225 restricted shares of the Company’s common stock under the 2001 Equity Incentive Plan with a grant date fair value of $10.44 per share.  These shares vested immediately upon the date of the grant, but are not transferable until the termination of Mr. Clifton’s employment with the Company.  On December 15, 2010, the Company granted Mr. Clifton 2,080 restricted shares of the Company’s common stock under the 2001 Equity Incentive Plan with a grant date fair value of $18.90 per share.  These shares will 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. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | Mr. Clifton was reimbursed for costs incurred in connection with relocating to the Company’s headquarters in Orlando, Florida in the amount of $29,706.  Mr. Clifton also received a one-time payout of PTO in the amount of $2,519. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name                | Number of shares or units of stock that have not vested(#) | Grant date value of restricted stock that has not vested($) |
|---------------------|------------------------------------------------------------|-------------------------------------------------------------|
| Gregory P. Anderson | 3,598                                                      | 68,000                                                      |
| R. LaDuane Clifton  | 2,080                                                      | 39,300                                                      |

| (1)   | On December 15, 2010, the Company granted Mr. Anderson 3,598 restricted shares of the Company’s common stock as a bonus payment for 2010 under the 2001 Equity Incentive Plan with a grant date fair value of $18.90.  The shares will 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. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | On December 15, 2010, the Company granted Mr. Clifton 2,080 restricted shares of the Company’s common stock as a bonus payment for 2010 under the 2001 Equity Incentive Plan with a grant date fair value of $18.90.  These shares will 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. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name                                | Fees Earned or Paid in Cash($) | Stock Awards($)(1)               | Total($) |
|-------------------------------------|--------------------------------|----------------------------------|----------|
| Marc Gabelli                        | 1(2)                           | 9,998                            | 9,999    |
| Michael Chiu(3)                | 9,750                          | 9,998                            | 19,748   |
| Timothy Foufas                      | 46,250                         | 9,998                            | 56,248   |
| Patrick J. Guarino                  | 49,750                         | 9,998                            | 59,748   |
| Jeremiah M. Healy(5)                | 28,500                         | --                               | 28,500   |
| Paul Kaminski(4)               | 11,250                         | 19,996                           | 31,246   |
| Anthony R. Pustorino(5)   | 28,750                         |   --    | 28,750   |
| Javier Romero(5)               | 18,750                         | --                               | 18,750   |
| Hans Wunderl(6)                | 24,250                         | 9,998                            | 34,248   |
| Robert S. Zuccaro(4)                | 13,000(7)                      | 9,998                            | 22,998   |

|         (1) | On December 15, 2010, the Company’s then-current directors received 529 shares of restricted common stock as 50% of their base compensation for fiscal 2011 ($10,000), except for Mr. Kaminski, who elected to receive a grant of 1,058 shares of restricted common stock as 100% of his base compensation for fiscal 2011 ($20,000).  The number of shares granted to each director was determined by dividing the dollar amount of base compensation paid in the form of the share grant by the closing price of the Company’s common stock on the grant date.  Such shares were granted under the 2001 Equity Incentive Plan, vested immediately on the grant date, and are transferable only if a director maintains a minimum ownership level of 1,000 shares of the Company’s common stock. |
|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Dr. Chiu was first elected to the Board on October 28, 2010. |
|--------|-----|--------------------------------------------------------------|

|   | (4) | Messrs. Kaminski and Zuccaro were first elected to the Board on October 6, 2010. |
|--------|-----|----------------------------------------------------------------------------------|

|         (5) | Messrs. Healy, Pustorino and Romero did not stand for re-election to the Board at the 2010 Annual Meeting held on December 15, 2010. |
|------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Mr. Wunderl was first elected to the Board on February 1, 2010. |
|--------|-----|-----------------------------------------------------------------|

|   | (7) | Does not include $4,000 paid by the Company to Commonwealth Management Partners LLLP, of which Mr. Zuccaro was the Managing Director and the Chief Financial Officer, for services provided by Mr. Zuccaro during 2010 prior to his election to the Board in October 2010. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Item 12. | Security Ownership Of Certain Beneficial Owners and Management and Related Stockholder Matters. |
|----------|-------------------------------------------------------------------------------------------------|

| ·   | Each person who is known by us to beneficially own 5% or more of our common stock; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | Each of our directors and named executive officers; and |
|--------------------|---------------------------------------------------------|

| ·   | All of our directors and executive officers, as a group. |
|--------------------|----------------------------------------------------------|

|                                                        | Common StockBeneficially Owned(1)                                                             |
|-------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
| Name and Address of Beneficial Owner                        | Shares                                                                                        | % |
| 5% or Greater Stockholders:                                 |                                                                                          |   |
|                                                        |                                                                                          |   |
| Mario J. Gabelli                                            | 344,977(2)                                                                                    | 13.2 |
| John V. Winfield                                            |       132,335(3)                                                          | 5.1  |
|                                                        |                                                                                          |   |
| Directors and Named Executive Officers:                     |                                                                                          |   |
|                                                        |                                                                                          |   |
| Marc Gabelli                                                | 363,906(4)                                                                                    | 13.9 |
| Gregory P. Anderson                                         |          6,776                                   | * |
| R. LaDuane Clifton                                          | 3,505                                                                                    |        * |
| Timothy Foufas                                              | 12,720                                                                                        | * |
| Patrick J. Guarino                                          | 12.720                                                                                        | * |
| Michael Chiu                                                | 529                                                                                           | * |
| Paul D. Kaminski                                            |             1,058                 | * |
| Hans Wunderl                                                |             2,998                 | * |
| Robert S. Zuccaro                                           |                529 | * |
|                                                        |                                                                                          |   |
| All executive officers and directors as a group (9 persons) |  402,741                                                                                 | 15.4 |
|                                                        |                                                                                          |   |

| (1) | The applicable percentage of ownership for each beneficial owner is based on 2,617,268 of Common Stock outstanding as of March 23, 2011.  Shares of Common Stock issuable upon exercise of options, warrants or other rights beneficially owned that are exercisable within 60 days are deemed outstanding for the purpose of computing the percentage ownership of the person holding such securities and rights and all executive officers and directors as a group. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes (i) 238,621 shares of Common Stock owned directly by Mario J. Gabelli; (ii) 96,756 shares owned by MJG-IV Limited Partnership, of which Mr. Gabelli is the general partner and has an approximate 5% interest; and (iii) 9,600 shares owned by GGCP, Inc., of which Mr. Gabelli is the chief executive officer.  Mr. Gabelli disclaims beneficial ownership of the shares owned by MJG-IV Limited Partnership and GGCP, Inc., except to the extent of his pecuniary interest therein.  Mr. Gabelli’s business address is 401 Theodore Fremd Avenue, Rye, New York 10580-1430.  Based on information in a Statement of Changes in Beneficial Ownership on Form 4 filed by Mr. Gabelli with the SEC on October 20, 2010. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes (i) 124,135 shares of Common Stock owned directly by Mr. Winfield and (ii) 8,200 shares of Common Stock owned by The InterGroup Corporation, of which Mr. Winfield is President, Chief Executive Officer and Chairman of the Board.  Mr. Winfield’s business address is 10940 Wilshire Blvd., Suite 2150, Los Angeles, CA 90024.  Based solely on information contained in a Schedule 13D filed with the SEC on April 30, 2010 by Mr. Winfield and The InterGroup Corporation. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes (i) 13,004 shares of Common Stock owned directly by Marc Gabelli; and (ii) 350,902 shares beneficially owned by Venator Merchant Fund L.P. (“Venator Fund”) and Venator Global, LLC (“Venator Global”).  Venator Global, which is the sole general partner of Venator Fund, is deemed to have beneficial ownership of the securities owned beneficially by Venator Fund.  Mr. Gabelli is the President and owner of Venator Global. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Any breach of the Director’s duty of loyalty to us or our stockholders; |
|--------------------|-------------------------------------------------------------------------------|

| ·   | Any act or omission not in good faith or that involves intentional misconduct or a knowing violation of law; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | Voting or assenting to unlawful stock purchases, redemptions or other distributions or payment of dividends; or |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Any transaction from which the Director derived an improper personal benefit. |
|--------------------|-------------------------------------------------------------------------------|

| ·   | We shall indemnify our directors, officers,  employees and other agents to the fullest extent permitted by the DGCL, subject to limited exceptions; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | We may advance expenses to our directors, officers,  employees and agents in connection with a legal proceeding upon receipt of an undertaking from such director, officer, employee or agent to repay such amount if it is ultimately determined that they were not entitled to be indemnified by us; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The indemnification and advancement of expenses provided in our by-laws does not limit us from providing any other indemnification or advancement of expenses; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The indemnification provided in our by-laws is not exclusive of any other rights to which those seeking indemnification may be entitled. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Report of Independent Registered Public Accounting Firm                                         |
|-------------------------------------------------------------------------------------------------|
| Consolidated Balance Sheets -- December 31, 2010 and 2009                                       |
| Consolidated Statements of Operations -- Years ended December 31, 2010 and 2009                 |
| Consolidated Statements of Stockholders’ Equity -- Years ended December 31, 2010 and 2009 |
| Consolidated Statements of Cash Flows -- Years ended December 31, 2010 and 2009                 |
| Notes to Consolidated Financial Statements                                                      |

| Exhibit No.                        | Description                                                                                                                                                                                                                                                                                                |
|------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                                                                                                                                                                                                                                                       |
| 3.1                                | Certificate of Incorporation of The LGL Group, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on August 31, 2007).                                                                                                                                 |
|                               |                                                                                                                                                                                                                                                                                                       |
| 3.2                                | The LGL Group, Inc. By-Laws (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on August 31, 2007).                                                                                                                                                         |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.1                               | The LGL Group, Inc. 401(k) Savings Plan (incorporated by reference to Exhibit 10(b) to the Company’s Annual Report on Form 10-K for the period ended December 31, 1995).                                                                                                                             |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.2                               | The LGL Group, Inc. 2001 Equity Incentive Plan adopted December 10, 2001 (incorporated by reference to Exhibit 4 to the Company’s Form S-8 Registration Statement filed on December 29, 2005.                                                                                                        |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.3                               | Amended and Restated Loan Agreement, dated as of June 30, 2010, by and among M-tron Industries, Inc., Piezo Technology, Inc. and First National Bank of Omaha (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated July 30, 2010).                           |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.4                          | First Amendment to Amended and Restated Loan Agreement by and among M-tron Industries, Inc., Piezo Technology, Inc. and First National Bank of Omaha, dated as of June 30, 2010 (incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated August 5, 2010). |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.5                               | Form of Amended and Restated Term Note made by  M-tron Industries, Inc. and Piezo Technology, Inc. for the benefit of  First National Bank of Omaha (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated September 16, 2009).            |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.6                               | Form of  First Amended and Restated Revolving Note made by M-tron Industries, Inc. and Piezo Technology, Inc. for the benefit of First National Bank of Omaha (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated August 5, 2010).                |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.7                               | Unconditional Guaranty, dated as of August 18, 2009, made by The LGL Group, Inc. for the benefit of First National Bank of Omaha (incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K dated August 25, 2009).                                                      |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.8                               | Employment Agreement, dated as of June 29, 2009, by and between The LGL Group, Inc. and Greg Anderson (incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on July 8, 2009).                                                                          |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.9                               | Form of Indemnification Agreement by and between The LGL Group, Inc. and its executive officers and directors.*                                                                                                                                                                                            |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.10                              | Form of Restricted Stock Agreement by and between The LGL Group, Inc. and each of its directors.*                                                                                                                                                                                                          |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.11                              | Form of Restricted Stock Agreement by and between The LGL Group, Inc. and each of its executive officers.*                                                                                                                                                                                                 |
|                               |                                                                                                                                                                                                                                                                                                       |
|      21.1      | Subsidiaries of The LGL Group, Inc.*                                                                                                                                                                                                                                                                       |
|                               |                                                                                                                                                                                                                                                                                                       |
|      23.1 | Consent of Independent Registered Public Accounting Firm – J.H. Cohn LLP.*                                                                                                                                                                                                                           |
|                               |                                                                                                                                                                                                                                                                                                       |
|      31.1      | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                   |
|                               |                                                                                                                                                                                                                                                                                                       |
|      31.2 | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                   |
|                               |                                                                                                                                                                                                                                                                                                       |
|      32.1      | Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                   |
|                               |                                                                                                                                                                                                                                                                                                       |
|      32.2      | Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                   |

|   | * filed herewith |
|--------|------------------|

----

|           |   | THE LGL GROUP, INC. |
|----------------|--------|---------------------|
|           |   |                |
|           |   |                |
| March 23, 2011 |   | By:                 | /s/ Gregory P. Anderson |
|           |   |                | Gregory P. Anderson |
|           |   |                | President and Chief Executive Officer(Principal Executive Officer) |
|           |   |                |   |

| SIGNATURE                     | CAPACITY                                     | DATE                                    |
|-------------------------------|----------------------------------------------|-----------------------------------------|
|                          |                                         |                                    |
| /s/ Gregory P. Anderson       | President and Chief Executive Officer        | March 23, 2011                          |
| GREGORY P. ANDERSON           | (Principal Executive Officer)                |                                    |
| /s/ R. LaDuane Clifton        |  Chief Accounting Officer               |      March 23, 2011 |
| R. LADUANE CLIFTON            | (Principal Financial and Accounting Officer) |                                    |
| /s/ Marc J. Gabelli           |  Chairman of the Board of Directors     | March 23, 2011                          |
| MARC J. GABELLI               | (Non-Executive)                              |                                    |
|   /s/ Timothy Foufas     | Director                                     | March 23, 2011                          |
| TIMOTHY FOUFAS                |                                         |                                    |
|   /s/ Patrick J. Guarino | Director                                     | March 23, 2011                          |
| PATRICK J. GUARINO            |                                         |                                    |
|   /s/ Michael Chiu       | Director                                     | March 23, 2011                          |
| MICHAEL CHIU                  |                                         |                                    |
|   /s/ Paul Kaminski      | Director                                     | March 23, 2011                          |
| PAUL KAMINSKI                 |                                         |                                    |
|   /s/ Hans Wunderl       | Director                                     | March 23, 2011                          |
| HANS WUNDERL                  |                                         |                                    |
|   /s/ Robert S. Zuccaro  | Director                                     |    March 23, 2011        |
| ROBERT S. ZUCCARO             |                                         |                                    |
|                          |                                         |                                    |

----

----

|                                                                                                                                                |   | December 31, |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|
| ASSETS                                                                                                                                              |   | 2010         |   |   | 2009 |
| Current Assets:                                                                                                                                     |   |         |   |   |   |
| Cash and cash equivalents (Note A)                                                                                                                  |   | $            | 4,147 |   |   | $ | 3,816 |
| Accounts receivable, less allowances of $161 and $259, respectively (Note A)                                                                        |   |         | 5,782 |   |   |   | 4,779 |
| Inventories (Note B)                                                                                                                                |   |         | 5,947 |   |   |   | 5,348 |
| Deferred income taxes (Notes A and F)                                                                                                               |   |         | 1,295 |   |   |   | -- |
| Prepaid expenses and other current assets                                                                                                           |   |         | 317 |   |   |   | 412 |
| Total Current Assets                                                                                                                                |   |         | 17,488 |   |   |   | 14,355 |
| Property, Plant and Equipment (Note A)                                                                                                              |   |         |   |   |   |   |   |
| Land                                                                                                                                                |   |         | 668 |   |   |   | 670 |
| Buildings and improvements                                                                                                                          |   |         | 5,000 |   |   |   | 4,856 |
| Machinery and equipment                                                                                                                             |   |         | 13,918 |   |   |   | 13,312 |
| Gross property, plant and equipment                                                                                                                 |   |         | 19,586 |   |   |   | 18,838 |
| Less: accumulated depreciation                                                                                                                      |   |         | (15,758 | ) |   |   | (15,113) |
| Net property, plant, and equipment                                                                                                                  |   |         | 3,828 |   |   |   | 3,725 |
| Deferred income taxes, net (Notes A and F)                                                                                                          |   |         | 2,055 |   |   |   | 111 |
| Other assets, net                                                                                                                                   |   |         | 354 |   |   |   | 377 |
| Total Assets                                                                                                                                        |   | $            | 23,725 |   |   | $ | 18,568 |
|                                                                                                                                                |   |         |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                          |   |         |   |   |   |   |   |
| Current Liabilities:                                                                                                                                |   |         |   |   |   |   |   |
| Note payable to bank (Note C)                                                                                                                       |   | $            | -- |   |   | $ | 1,696 |
| Accounts payable                                                                                                                                    |   |         | 2,033 |   |   |   | 2,333 |
| Accrued compensation and commissions expense                                                                                                        |   |         | 1,302 |   |   |   | 1,220 |
| Other accrued expenses                                                                                                                              |   |         | 1,025 |   |   |   | 1,020 |
| Current maturities of long-term debt (Note C)                                                                                                       |   |         | 299 |   |   |   | 2,620 |
| Total Current Liabilities                                                                                                                           |   |         | 4,659 |   |   |   | 8,889 |
| Long-term debt (Note C)                                                                                                                             |   |         | 370 |   |   |   | 669 |
| Total Liabilities                                                                                                                                   |   |         | 5,029 |   |   |   | 9,558 |
|                                                                                                                                                |   |         |   |   |   |   |   |
| Commitments and Contingencies                                                                                                                       |   |         |   |   |   |   |   |
|                                                                                                                                                |   |         |   |   |   |   |   |
| Stockholders' Equity                                                                                                                                |   |         |   |   |   |   |   |
| Common stock, $0.01 par value - 10,000,000 shares authorized; 2,267,260 and 2,227,684 shares issued and outstanding for 2010 and 2009, respectively |   |         | 22 |   |   |   | 22 |
| Additional paid-in capital                                                                                                                          |   |         | 20,893 |   |   |   | 20,708 |
| Accumulated deficit                                                                                                                                 |   |         | (2,181 | ) |   |   | (11,604) |
| Accumulated other comprehensive loss (Note G)                                                                                                       |   |         | (38 | ) |   |   | (116) |
| Total Stockholders' Equity                                                                                                                          |   |         | 18,696 |   |   |   | 9,010 |
| Total Liabilities and Stockholders' Equity                                                                                                          |   | $            | 23,725 |   |   | $ | 18,568 |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Years EndedDecember 31, |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2010                    |   |   | 2009 |
| REVENUES                                                                                                                                  |   | $                       | 46,656 |   |   | $ | 31,301 |
| Costs and expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                    |   |   |   |   |   |
| Manufacturing cost of sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                    | 30,306 |   |   |   | 23,876 |
| Engineering, selling and administrative                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    | 9,571 |   |   |   | 9,344 |
| Impairment loss on Lynch Systems’ assets                                                                                                           |   |                    | 20 |   |   |   | 235 |
| OPERATING INCOME (LOSS)                                                                                                                   |   |                    | 6,759 |   |   |   | (2,154) |
| Other income (expense):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    |   |   |   |   |   |
| Interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                    | (304 | ) |   |   | (405) |
| Other income, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                    | 23 |   |   |   | 56 |
| Total Other Income (Expense)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                    | (281 | ) |   |   | (349) |
| INCOME (LOSS) BEFORE INCOME TAXES                                                                                                         |   |                    | 6,478 |   |   |   | (2,503) |
| Income tax benefit (provision) (Note F)                                                                                                   |   |                    | 2,945 |   |   |   | (19) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                    |   |   |   |   |   |
| NET INCOME (LOSS)                                                                                                                         |   | $                       | 9,423 |   |   | $ | (2,522) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                    |   |   |   |   |   |
| Weighted average number of shares used in basic and diluted EPS calculation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                    | 2,248,180 |   |   |   | 2,200,010 |
| BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE (Note A)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                       | 4.19 |   |   | $ | (1.15) |

----

|                                                    |   | Shares of Common Stock Outstanding |      |   | Common Stock |   |   | Additional Paid-In Capital |   |   | Accumulated Deficit |   |   | Accumulated Other Comprehensive Loss |    |   | Treasury Stock |   |   | Total  |
|---------------------------------------------------------|--------|------------------------------------|-----------|--------|--------------|--------|--------|----------------------------|--------|--------|---------------------|--------|--------|--------------------------------------|---------|--------|----------------|--------|--------|--------|
| Balance at December 31, 2008                            |   |                               | 2,183,236 |   |         | $      | 22     |                       |   | $      | 20,728              |   |   | $                                    | (9,082  | )      |           | $      | (235   | )      |   | $ | (101 | ) |   | $ | 11,332 |
| Comprehensive loss:                                     |   |                               |      |   |         |   |   |                       |   |   |                |   |   |                                 |    |   |           |   |   |   |   |   |   |   |   |   |   |
| Net loss for year                                       |   |                               | --        |   |         |   | --     |                       |   |   | --                  |   |   |                                 | (2,522  | )      |           |   | --     |   |   |   | -- |   |   |   | (2,522) |
| Other comprehensive loss                                |   |                               | --        |   |         |   | --     |                       |   |   | --                  |   |   |                                 | --      |   |           |   | 119    |   |   |   | -- |   |   |   | 119 |
| Comprehensive loss                                      |   |                               |      |   |         |   |   |                       |   |   |                |   |   |                                 |    |   |           |   |   |   |   |   |   |   |   |   | (2,403) |
|     Stock-based compensation        |   |                               | 39,174    |   |         |   | --     |                       |   |   | 81                  |   |   |                                 | --      |   |           |   | --     |   |   |   | -- |   |   |   | 81 |
| Issuance of treasury shares for vested restricted stock |   |                               | 5,274     |   |         |   | --     |                       |   |   | (101                | )      |   |                                 | --      |   |           |   | --     |   |   |   | 101 |   |   |   | -- |
| Balance at December 31, 2009                            |   |                               | 2,227,684 |   |         |   | 22     |                       |   |   | 20,708              |   |   |                                 | (11,604 | )      |           |   | (116   | )      |   |   | -- |   |   |   | 9,010 |
| Comprehensive income:                                   |   |                               |      |   |         |   |   |                       |   |   |                |   |   |                                 |    |   |           |   |   |   |   |   |   |   |   |   |   |
| Net income for year                                     |   |                               | --        |   |         |   | --     |                       |   |   | --                  |   |   |                                 | 9,423   |   |           |   | --     |   |   |   | -- |   |   |   | 9,423 |
| Other comprehensive income                              |   |                               | --        |   |         |   | --     |                       |   |   | --                  |   |   |                                 | --      |   |           |   | 78     |   |   |   | -- |   |   |   | 78 |
| Comprehensive income                                    |   |                               |      |   |         |   |   |                       |   |   |                |   |   |                                 |    |   |           |   |   |   |   |   |   |   |   |   | 9,501 |
| Stock-based compensation                                |   |                               | 39,576    |   |         |   | --     |                       |   |   | 185                 |   |   |                                 | --      |   |           |   | --     |   |   |   | -- |   |   |   | 185 |
| Balance at December 31, 2010                            |   |                               | 2,267,260 |   |         | $      | 22     |                       |   | $      | 20,893              |   |   | $                                    | (2,181  | )      |           | $      | (38    | )      |   | $ | -- |   |   | $ | 18,696 |
|                                                    |   |                               |      |   |         |   |   |                       |   |   |                |   |   |                                 |    |   |           |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                      |   | Years EndedDecember 31, |
|---------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|
|                                                                                                                      |   | 2010                    |   |   | 2009 |
| OPERATING ACTIVITIES                                                                                                      |   |                    |   |   |   |
| Net income (loss)                                                                                                         |   | $                       | 9,423 |   |   | $ | (2,522) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                  |   |                    |   |   |   |   |   |
| Impairment loss on Lynch Systems’ assets                                                                            |   |                    | 20 |   |   |   | 235 |
| Depreciation                                                                                                              |   |                    | 645 |   |   |   | 878 |
| Amortization of finite-lived intangible assets and other assets                                                           |   |                    | 112 |   |   |   | 60 |
| Stock-based compensation                                                                                                  |   |                    | 185 |   |   |   | 81 |
| Deferred income tax benefit                                                                                               |   |                    | (3,276 | ) |   |   | -- |
| Changes in operating assets and liabilities:                                                                              |   |                    |   |   |   |   |   |
| Decrease (increase) in accounts receivable, net                                                                           |   |                    | (1,003 | ) |   |   | 1,704 |
| Decrease (increase) in inventories                                                                                        |   |                    | (599 | ) |   |   | 60 |
| Decrease (increase) in other current assets                                                                               |   |                    | 102 |   |   |   | (149) |
| Increase (decrease) in trade accounts payable, accrued compensation and commissions expense and other accrued liabilities |   |                    | (106 | ) |   |   | 290 |
| Net cash provided by operating activities                                                                                 |   |                    | 5,503 |   |   |   | 637 |
|                                                                                                                      |   |                    |   |   |   |   |   |
| INVESTING ACTIVITIES                                                                                                      |   |                    |   |   |   |   |   |
| Capital expenditures                                                                                                      |   |                    | (767 | ) |   |   | (325) |
| Net cash used in investing activities                                                                                     |   |                    | (767 | ) |   |   | (325) |
|                                                                                                                      |   |                    |   |   |   |   |   |
| FINANCING ACTIVITIES                                                                                                      |   |                    |   |   |   |   |   |
| Net repayments on note payable to bank                                                                                    |   |                    | (1,696 | ) |   |   | (1,053) |
| Deferred costs related to stock issuance                                                                                  |   |                    | (89 | ) |   |   | -- |
| Repayments of long-term debt                                                                                              |   |                    | (2,620 | ) |   |   | (768) |
| Net cash used in financing activities                                                                                     |   |                    | (4,405 | ) |   |   | (1,821) |
|                                                                                                                      |   |                    |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                                                          |   |                    | 331 |   |   |   | (1,509) |
| Cash and cash equivalents at beginning of year                                                                            |   |                    | 3,816 |   |   |   | 5,325 |
| Cash and cash equivalents at end of year                                                                                  |   | $                       | 4,147 |   |   | $ | 3,816 |

| Supplemental Disclosure:                                |   |   |   |   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|
| Cash paid for interest                                  |   | $      | 318    |   |   | $ | 399 |
| Cash paid for income taxes                              |   | $      | 78     |   |   | $ | 22 |
| Non-cash Financing Activity:                            |   |   |   |   |   |   |   |
| Issuance of treasury shares for vested restricted stock |   | $      | --     |   |   | $ | 101 |

----

|                                                   |   | Owned By TheLGL Group, Inc. |
|--------------------------------------------------------|--------|-----------------------------|
| M-tron Industries, Inc.                                |   |                        | 100.0% |
| M-tron Industries, Ltd.                                |   |                        | 100.0% |
| Piezo Technology, Inc.                                 |   |                        | 100.0% |
|     Piezo Technology India Private Ltd. |   |                        | 99.9% |
| Lynch Systems, Inc.                                    |   |                        | 100.0% |

----

|                             |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |   | December 31, 2010 |
|----------------------------------|--------|----------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-------------------------------------------|--------|--------|-------------------|
| Swap liability on hedge contract |   | $                                                              | --     |   |                                          | $      | 21     |                                      |   | $      | --                |   |   | $ | 21 |

|                              |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |   | December 31, 2009 |
|-----------------------------------|--------|----------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-------------------------------------------|--------|--------|-------------------|
| Swap liability on hedge contracts |   | $                                                              | --     |   |                                          | $      | 129    |                                      |   | $      | --                |   |   | $ | 129 |

----

----

| 2011                     |   | $      | 60  |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------|-----|
| 2012                     |   |   | 60  |
| 2013                     |   |   | 60  |
| 2014                     |   |   | 38  |
| 2015                     |   |   | 7   |
| Total                    |   | $      | 225 |

----

|                                        |   | Number of Stock Grants |    |   | Weighted Average Grant Date Fair Value per Share |   |   | Weighted Average Years Remaining |
|---------------------------------------------|--------|------------------------|---------|--------|--------------------------------------------------|--------|--------|----------------------------------|
| Outstanding non vested at December 31, 2008 |   |                   | 44,440  |   |                                             | $      | 1.80   |                             |   |   | 1.0 |
| Granted during 2009                         |   |                   | 25,320  |   |                                             |   | 3.16   |                             |   |   | 1.0 |
| Vested during 2009                          |   |                   | (44,448 | )      |                                             |   | 3.00   |                             |   |   | -- |
| Forfeited or expired during 2009            |   |                   | (9,495  | )      |                                             |   | --     |                             |   |   | -- |
| Outstanding non vested at December 31, 2009 |   |                   | 15,817  |   |                                             |   | 3.16   |                             |   |   | 1.0 |
| Granted during 2010                         |   |                   | 23,759  |   |                                             |   | 15.79  |                             |   |   | 3.0 |
| Vested during 2010                          |   |                   | (26,929 | )      |                                             |   | 14.30  |                             |   |   | -- |
| Forfeited or expired during 2010            |   |                   | --      |   |                                             |   | --     |                             |   |   | -- |
| Outstanding non vested at December 31, 2010 |   |                   | 12,647  |   |                                             | $      | 18.90  |                             |   |   | 3.0 |

----

|                             |   | 2010   |   |   | 2009   |
|----------------------------------|--------|--------|--------|--------|--------|
| Options to purchase common stock |   |   | --     |   |   |   | 20,000 |
| Totals                           |   |   | --     |   |   |   | 20,000 |

----

----

----

|              |   | December 31,   |
|-------------------|--------|----------------|
|              |   | 2010           |   |   | 2009 |
|              |   | (in thousands) |
| Raw materials     |   | $              | 2,685 |   |   | $ | 2,738 |
| Work in process   |   |           | 1,663 |   |   |   | 1,486 |
| Finished goods    |   |           | 1,599 |   |   |   | 1,124 |
| Total Inventories |   | $              | 5,947 |   |   | $ | 5,348 |

| C.   | Note Payable to Banks and Long-Term Debt |
|----------------|------------------------------------------|

|   | Note payable to banks and long-term debt is comprised of: |
|--------|-----------------------------------------------------------|

|                                                                                                                                                                                     |   | December 31,   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|
|                                                                                                                                                                                     |   | 2010           |   |   | 2009 |
|                                                                                                                                                                                     |   | (in thousands) |
| Notes Payable:                                                                                                                                                                           |   |           |
| MtronPTI revolving loan (First National Bank of Omaha (“FNBO”)) at 30-day LIBOR plus 3.25%, (4.25% at December 31, 2010), due June 30, 2011                                  |   | $              | -- |   |   | $ | 1,696 |
|                                                                                                                                                                                     |   |           |   |   |   |   |   |
| Long-Term Debt:                                                                                                                                                                          |   |           |   |   |   |   |   |
| RBC Centura Bank (“RBC”) term loan retired on September 30, 2010                                                                                                             |   | $              | -- |   |   | $ | 2,341 |
| MtronPTI term loan (FNBO) due January 24, 2013. The note bears interest at 30-day LIBOR plus 2.10%. Interest rate swap converts loan to a fixed rate, at 5.60% at December 31, 2010 |   |           | 669 |   |   |   | 948 |
|                                                                                                                                                                                     |   |           | 669 |   |   |   | 3,289 |
| Current maturities                                                                                                                                                                       |   |           | 299 |   |   |   | 2,620 |
| Long-Term Debt                                                                                                                                                                           |   | $              | 370 |   |   | $ | 669 |

----

| 2011  |   | $      | 299 |
|-------|--------|--------|-----|
| 2012  |   |   | 321 |
| 2013  |   |   | 49  |
| Total |   | $      | 669 |

----

| D.   | Related Party Transactions |
|-----------|----------------------------|

| E.   | Stock Option Plans |
|-----------|--------------------|

|                             |   | Number of Stock Options |     |   | Weighted Average Exercise price |   |   | Weighted Average Years Remaining |
|----------------------------------|--------|-------------------------|----------|--------|---------------------------------|--------|--------|----------------------------------|
| Outstanding at December 31, 2008 |   |                    | 200,000  |   |                            | $      | 17.07  |                             |   |   | 0.8 |
| Granted during 2009              |   |                    | --       |   |                            |   | --     |                             |   |   | -- |
| Exercised during 2009            |   |                    | --       |   |                            |   | --     |                             |   |   | -- |
| Forfeited or expired during 2009 |   |                    | (180,000 | )      |                            |   | 17.50  |                             |   |   | -- |
| Outstanding at December 31, 2009 |   |                    | 20,000   |   |                            |   | 13.17  |                             |   |   | 0.4 |
| Granted during 2010              |   |                    | --       |   |                            |   | --     |                             |   |   | -- |
| Exercised during 2010            |   |                    | --       |   |                            |   | --     |                             |   |   | -- |
| Forfeited or expired during 2010 |   |                    | (20,000  | )      |                            |   | 13.17  |                             |   |   | -- |
| Outstanding at December 31, 2010 |   |                    | --       |   |                            | $      | --     |                             |   |   | -- |
| Exercisable at December 31, 2010 |   |                    | --       |   |                            | $      | --     |                             |   |   | -- |
| Vested at December 31, 2010      |   |                    | --       |   |                            | $      | --     |                             |   |   | -- |

----

|                                                                                                                                                                                                                                                                                                                                                                                  |   | December 31, 2010 |   |   | December 31, 2009 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|-------------------|
|                                                                                                                                                                                                                                                                                                                                                                                  |   | Deferred Tax      |   |   | Deferred Tax      |
|                                                                                                                                                                                                                                                                                                                                                                                  |   | Asset             |   |   | Liability         |   |   | Asset |   |   | Liability |
|                                                                                                                                                                                                                                                                                                                                                                                  |   | (in thousands)    |
| Inventory reserve                                                                        |   | $                 | 945    |   |              | $ | -- |   |   | $ | 1,357 |   |   | $ | -- |
| Fixed assets                                                                             |   |              | --     |   |              |   | 151 |   |   |   | -- |   |   |   | 192 |
| Other reserves and accruals                                                              |   |              | 350    |   |              |   | -- |   |   |   | 532 |   |   |   | -- |
| Undistributed foreign earnings                                                           |   |              | --     |   |              |   | 723 |   |   |   | -- |   |   |   | 549 |
| Other                                                                                    |   |              | --     |   |              |   | 81 |   |   |   | -- |   |   |   | 104 |
| Tax credit carry-forwards                                                                |   |              | 1,516  |   |              |   | -- |   |   |   | 1,450 |   |   |   | -- |
| Federal tax loss carry-forwards                                                          |   |              | 1,335  |   |              |   | -- |   |   |   | 2,827 |   |   |   | -- |
| State tax loss carry-forwards                                                            |   |              | 422    |   |              |   | -- |   |   |   | 377 |   |   |   | -- |
| Total deferred income taxes                                                              |   |              | 4,568  |   |              | $ | 955 |   |   |   | 6,543 |   |   | $ | 845 |
| Valuation allowance                                                                      |   |              | (263   | )      |              |   |   |   |   |   | (5,587 | ) |   |   |   |
| Net deferred tax assets                                                                  |   | $                 | 4,305  |   |              |   |   |   |   | $ | 956 |   |   |   |   |

----

|            |   | 2010           |   |   | 2009   |
|-----------------|--------|----------------|--------|--------|--------|
|            |   | (in thousands) |
| Current:        |   |           |   |   |   |
| Federal         |   | $              | --     |   |   | $ | (16 |
| State and local |   |           | 65     |   |   |   | -- |
| Foreign         |   |           | 266    |   |   |   | 35 |
| Total Current   |   |           | 331    |   |   |   | 19 |
|            |   |           |   |   |   |   |   |
| Deferred:       |   |           |   |   |   |   |   |
| Federal         |   |           | (2,960 | )      |   |   | -- |
| State and local |   |           | (316   | )      |   |   | -- |
| Total Deferred  |   |           | (3,276 | )      |   |   | -- |
|            |   | $              | (2,945 | )      |   | $ | 19 |

|                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2010           |   |   | 2009   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (in thousands) |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           |   |   |   |
| Tax (benefit) provision at expected statutory rate                                                                                                                                                                                                                                                                                                                                                                      |   | $              | 2,203  |   |   | $ | (851) |
| State taxes, net of federal benefit                                                               |   |           | 112    |   |   |   | (91) |
| Permanent differences                                                                             |   |           | 4      |   |   |   | 8 |
| Credits                                                                                                                                                                                                                                                                                                                                                                                                                 |   |           | (73    | )      |   |   | -- |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                   |   |           | 133    |   |   |   | (213) |
| Valuation allowance                                                                               |   |           | (5,324 | )      |   |   | 1,166 |
| (Benefit) provision for income taxes                                                                                                                                                                                                                                                                                                                                                                                    |   | $              | (2,945 | )      |   | $ | 19 |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | December 31,   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2010           |   |   | 2009 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (in thousands) |
| Balance beginning of year                                                                            |   | $              | (116 | ) |   | $ | (235) |
| Deferred gain on swap liability on hedge contracts                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |           | 107 |   |   |   | 106 |
| Unrealized gain on available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |           | 8 |   |   |   | 13 |
| Other comprehensive income (tax effect)                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |           | (37 | ) |   |   | -- |
| Balance end of year                                                                                  |   | $              | (38 | ) |   | $ | (116) |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | December 31,   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2010           |   |   | 2009 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (in thousands) |
| Deferred loss on swap liability on hedge contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $              | (21 | ) |   | $ | (129) |
| Unrealized gain on available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |           | 20 |   |   |   | 13 |
| Other comprehensive income (tax effect)                                                                            |   |           | (37 | ) |   |   | -- |
| Accumulated other comprehensive loss                                                                               |   | $              | (38 | ) |   | $ | (116) |

|   | Rent Expense |
|--------|--------------|

----

|                                                                                |   | Years Ended December 31, |
|-------------------------------------------------------------------------------------|--------|--------------------------|
|                                                                                |   | 2010                     |   |   | 2009 |
|                                                                                |   | (in thousands)           |
| Revenues from Operations                                                            |   |                     |   |   |   |
| Frequency control devices – USA                                               |   | $                        | 25,212 |   |   | $ | 15,522 |
| Frequency control devices – Foreign                                           |   |                     | 21,444 |   |   |   | 15,779 |
| Total consolidated revenues                                                         |   | $                        | 46,656 |   |   | $ | 31,301 |
|                                                                                |   |                     |   |   |   |   |   |
| Operating Income (Loss) from Operations                                             |   |                     |   |   |   |   |   |
| Frequency control devices                                                           |   | $                        | 8,455 |   |   | $ | 59 |
| Unallocated corporate expense                                                       |   |                     | (1,676 | ) |   |   | (1,978) |
| Impairment loss on Lynch Systems’ assets                                      |   |                     | (20 | ) |   |   | (235) |
| Consolidated total operating income (loss)                                          |   |                     | 6,759 |   |   |   | (2,154) |
| Interest expense                                                                    |   |                     | (304 | ) |   |   | (405) |
| Other income                                                                        |   |                     | 23 |   |   |   | 56 |
| Other loss                                                                          |   |                     | (281 | ) |   |   | (349) |
| Income (Loss) Before Income Taxes                                                   |   | $                        | 6,478 |   |   | $ | (2,503) |
|                                                                                |   |                     |   |   |   |   |   |
| Capital Expenditures                                                                |   |                     |   |   |   |   |   |
| Frequency control devices                                                           |   | $                        | 768 |   |   | $ | 325 |
|                                                                                |   |                     |   |   |   |   |   |
| Total Assets                                                                        |   |                     |   |   |   |   |   |
| Frequency control devices                                                           |   | $                        | 17,928 |   |   | $ | 16,921 |
| General corporate                                                                   |   |                     | 5,498 |   |   |   | 1,310 |
| Total assets from discontinued operations and Lynch Systems’ remaining assets |   |                     | 299 |   |   |   | 337 |
| Consolidated total assets                                                           |   | $                        | 23,725 |   |   | $ | 18,568 |

----

|                                    |   | Years Ended December 31, |
|-----------------------------------------|--------|--------------------------|
|                                    |   | 2010                     |   |   | 2009 |
|                                    |   | (in thousands)           |
| Frequency Control Devices - Significant |   |                     |   |   |   |
| Foreign Revenues:                       |   |                     |   |   |   |
| Malaysia                                |   | $                        | 6,416 |   |   | $ | 4,415 |
| China                                   |   |                     | 6,098 |   |   |   | 3,681 |
| Thailand                                |   |                     | 2,842 |   |   |   | 1,029 |
| Mexico                                  |   |                     | 2,194 |   |   |   | 1,510 |
| All other foreign countries             |   |                     | 3,894 |   |   |   | 5,144 |
| Total foreign revenues                  |   | $                        | 21,444 |   |   | $ | 15,779 |

----

| Exhibit No.                        | Description                                                                                                                                                                                                                                                                                                |
|------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                                                                                                                                                                                                                                                       |
| 3.1                                | Certificate of Incorporation of The LGL Group, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on August 31, 2007).                                                                                                                                 |
|                               |                                                                                                                                                                                                                                                                                                       |
| 3.2                                | The LGL Group, Inc. By-Laws (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on August 31, 2007).                                                                                                                                                         |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.1                               | The LGL Group, Inc. 401(k) Savings Plan (incorporated by reference to Exhibit 10(b) to the Company’s Annual Report on Form 10-K for the period ended December 31, 1995).                                                                                                                             |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.2                               | The LGL Group, Inc. 2001 Equity Incentive Plan adopted December 10, 2001 (incorporated by reference to Exhibit 4 to the Company’s Form S-8 Registration Statement filed on December 29, 2005.                                                                                                        |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.3                               | Amended and Restated Loan Agreement, dated as of June 30, 2010, by and among M-tron Industries, Inc., Piezo Technology, Inc. and First National Bank of Omaha (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated July 30, 2010).                           |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.4                          | First Amendment to Amended and Restated Loan Agreement by and among M-tron Industries, Inc., Piezo Technology, Inc. and First National Bank of Omaha, dated as of June 30, 2010 (incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated August 5, 2010). |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.5                               | Form of Amended and Restated Term Note made by M-tron Industries, Inc. and Piezo Technology, Inc. for the benefit of First National Bank of Omaha (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated September 16, 2009).                                  |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.6                               | Form of First Amended and Restated Revolving Note made by M-tron Industries, Inc. and Piezo Technology, Inc. for the benefit of First National Bank of Omaha (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated August 5, 2010).                           |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.7                               | Unconditional Guaranty, dated as of August 18, 2009,  made by The LGL Group, Inc. for the benefit of First National Bank of Omaha (incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K dated August 25, 2009).                                           |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.8                               | Employment Agreement, dated as of June 29, 2009, by and between The LGL Group, Inc. and Greg Anderson (incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on July 8, 2009).                                                                          |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.9                               | Form of Indemnification Agreement by and between The LGL Group, Inc. and its executive officers and directors.*                                                                                                                                                                                       |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.10                              | Form of Restricted Stock Agreement by and between The LGL Group, Inc. and each of its directors.*                                                                                                                                                                                                          |
|                               |                                                                                                                                                                                                                                                                                                       |
| 10.11                              | Form of Restricted Stock Agreement by and between The LGL Group, Inc. and each of its executive officers.*                                                                                                                                                                                                 |
|                               |                                                                                                                                                                                                                                                                                                       |
|      21.1      | Subsidiaries of The LGL Group, Inc.*                                                                                                                                                                                                                                                                       |
|                               |                                                                                                                                                                                                                                                                                                       |
|      23.1 | Consent of Independent Registered Public Accounting Firm – J.H. Cohn LLP.*                                                                                                                                                                                                                           |
|                               |                                                                                                                                                                                                                                                                                                       |
|      31.1 | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                   |
|                               |                                                                                                                                                                                                                                                                                                       |

----

|       31.2 | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* |
|------------------------------------------|----------------------------------------------------------------------------------------------------------|
|                                     |                                                                                                     |
|       32.1      | Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |
|                                     |                                                                                                     |
|       32.2      | Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |
|                                     |                                                                                                     |
|                                     |                                                                                                     |

|   | * filed herewith |
|--------|------------------|