| (Mark One) |                                                                                     |
|------------|------------------------------------------------------------------------------------------|
| x          | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|       |                                                                                     |
|       | For the quarterly period ended September 30, 2010                                   |
| OR         |
| o          | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

----

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

----

| Class                        |   | Outstanding at November 12, 2010 |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|
| Common Stock, $0.01 par value                                                                                                                   |   | 2,250,373                        |

----

| PART I.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | FINANCIAL INFORMATION                                                                                                                                           |                |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Financial Statements (Unaudited)                                                                                                                                |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |     Condensed Consolidated Balance Sheets:                                                                                                  |  1             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         As of September 30, 2010                                                                           |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         As of December 31, 2009                                                                            |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |     Condensed Consolidated Statements of Operations:                                                                         |  3             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         Three months ended September 30, 2010 and 2009                                                     |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         Nine months ended September 30, 2010 and 2009                                                      |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |     Condensed Consolidated Statements of Cash Flows:                                                                    |  4             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         Nine months ended September 30, 2010 and 2009                                                      |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |     Condensed Consolidated Statement of Stockholders’ Equity:                                                          |  5        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |             –         Nine months ended September 30, 2010 |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |     Notes to Condensed Consolidated Financial Statements:                                                |   6  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                     | 15                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     Quantitative and Qualitative Disclosure About Market Risk                                                                |  21            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     Controls and Procedures                                                                                                            |  21            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
| PART II.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | OTHER INFORMATION                                                                                                                                               |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     Legal Proceedings                                                                                                        |  22            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
| Item 1A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |     Risk Factors                                                                                                        |  22            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     Unregistered Sales of Equity Securities and Use of Proceeds                                               |  22            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     Defaults Upon Senior Securities                                                                           |  22            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     (Removed and Reserved)                                                                                                        |  22            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
| Item 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     Other Information                                                                     |  22            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                            |                |
| Item 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     Exhibits                                                                                                                 |  23            |
| SIGNATURES                                                                                                                          |       24                                                                                                                               |

----

|                                                             |   | September 30, 2010 |    |   | December 31,2009 (A) |   |
|-----------------------------------------------------------------------|--------|--------------------|---------|--------|----------------------|--------|
| ASSETS                                                                |   |               |    |   |                 |   |
| Current Assets:                                                       |   |               |    |   |                 |   |
| Cash and cash equivalents                                             |   | $                  | 2,255   |   |                 | $      | 3,816 |   |
| Accounts receivable, less allowances of $131 and $259, respectively   |   |               | 6,666   |   |                 |   | 4,779 |   |
| Inventories                                                           |   |               | 6,694   |   |                 |   | 5,348 |   |
| Prepaid expenses and other current assets                             |   |               | 293     |   |                 |   | 412 |   |
| Total current assets                                                  |   |               | 15,908  |   |                 |   | 14,355 |   |
| Property, plant and equipment:                                        |   |               |    |   |                 |   |   |   |
| Land                                                                  |   |               | 668     |   |                 |   | 670 |   |
| Buildings and improvements                                            |   |               | 4,915   |   |                 |   | 4,856 |   |
| Machinery and equipment                                               |   |               | 13,575  |   |                 |   | 13,312 |   |
| Gross property, plant and equipment                                   |   |               | 19,158  |   |                 |   | 18,838 |   |
| Less: accumulated depreciation                                        |   |               | (15,586 | )      |                 |   | (15,113 | ) |
|       Net property, plant and equipment |   |               | 3,572   |   |                 |   | 3,725 |   |
| Deferred income taxes, net                                            |   |               | 111     |   |                 |   | 111 |   |
| Other assets                                                          |   |               | 287     |   |                 |   | 377 |   |
| Total assets                                                          |   | $                  | 19,878  |   |                 | $      | 18,568 |   |

----

|                                                                                                                                                                     |   | September 30, 2010 |   |   | December 31,2009 (A) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|----------------------|--------|
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                    |   |               |   |   |                 |   |
| Current Liabilities:                                                                                                                                                          |   |               |   |   |                 |   |
| Note payable to bank                                                                                                                                                          |   | $                  | --     |   |                 | $      | 1,696 |   |
| Accounts payable                                                                                                                                                              |   |               | 2,446  |   |                 |   | 2,333 |   |
| Accrued compensation and commissions expense                                                                                                                                  |   |               | 1,231  |   |                 |   | 1,220 |   |
| Other accrued expenses                                                                                                                                                        |   |               | 1,033  |   |                 |   | 1,020 |   |
| Current maturities of long-term debt                                                                                                                                          |   |               | 294    |   |                 |   | 2,620 |   |
| Total current liabilities                                                                                                                                                     |   |               | 5,004  |   |                 |   | 8,889 |   |
| Long-term debt, net of current portion                                                                                                                                        |   |               | 446    |   |                 |   | 669 |   |
| Total liabilities                                                                                                                                                             |   |               | 5,450  |   |                 |   | 9,558 |   |
|                                                                                                                                                                          |   |               |   |   |                 |   |   |   |
| Commitments and Contingencies                                                                                                                                                 |   |               |   |   |                 |   |   |   |
|                                                                                                                                                                          |   |               |   |   |                 |   |   |   |
| Stockholders’ Equity:                                                                                                                                                   |   |               |   |   |                 |   |   |   |
| Common stock, $0.01 par value - 10,000,000 shares authorized; 2,250,373 and 2,227,684 shares issued and outstanding at September 30, 2010 and December 31, 2009, respectively |   |               | 22     |   |                 |   | 22 |   |
| Additional paid-in capital                                                                                                                                                    |   |               | 20,799 |   |                 |   | 20,708 |   |
| Accumulated deficit                                                                                                                                                           |   |               | (6,383 | )      |                 |   | (11,604 | ) |
| Accumulated other comprehensive loss                                                                                                                                          |   |               | (10    | )      |                 |   | (116 | ) |
| Total stockholders’ equity                                                                                                                                              |   |               | 14,428 |   |                 |   | 9,010 |   |
| Total liabilities and stockholders’ equity                                                                                                                              |   | $                  | 19,878 |   |                 | $      | 18,568 |   |

| (A)   | The Condensed Consolidated Balance Sheet as of December 31, 2009 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                  |   | Three MonthsEnded September 30,                       |      |   | Nine MonthsEnded September 30,                        |   |
|------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|-----------|--------|-------------------------------------------------------|--------|
|                                                                                                       |   |          2010 |      |   |          2009 |   |   |          2010 |   |   |          2009 |   |
|                                                                                                       |   |                                                  |      |   |                                                  |   |   |   |   |   |   |   |
| REVENUES                                                                                                   |   | $                                                     | 12,397    |   |                                                  | $      | 7,321 |   |   | $ | 35,633 |   |   | $ | 22,099 |   |
| Cost and expenses:                                                                                         |   |                                                  |      |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Manufacturing cost of sales                                                                                |   |                                                  | 7,741     |   |                                                  |   | 5,879 |   |   |   | 22,779 |   |   |   | 17,623 |   |
| Engineering, selling and administrative                                                                    |   |                                                  | 2,465     |   |                                                  |   | 2,287 |   |   |   | 7,108 |   |   |   | 7,173 |   |
| Total Cost and Expenses                                                                                    |   |                                                  | 10,206    |   |                                                  |   | 8,166 |   |   |   | 29,887 |   |   |   | 24,796 |   |
| OPERATING INCOME (LOSS)                                                                                    |   |                                                  | 2,191     |   |                                                  |   | (845 | ) |   |   | 5,746 |   |   |   | (2,697 | ) |
| Other income (expense):                                                                                    |   |                                                  |      |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                           |   |                                                  | (71       | )      |                                                  |   | (103 | ) |   |   | (288 | ) |   |   | (286 | ) |
| Other income (expense)                                                                                     |   |                                                  | (53       | )      |                                                  |   | 2 |   |   |   | (22 | ) |   |   | 49 |   |
|    Total Other (Expense)                                                                    |   |                                                  | (124      | )      |                                                  |   | (101 | ) |   |   | (310 | ) |   |   | (237 | ) |
| INCOME (LOSS) BEFORE INCOME TAXES                                                                          |   |                                                  | 2,067     |   |                                                  |   | (946 | ) |   |   | 5,436 |   |   |   | (2,934 | ) |
| Income tax (provision) benefit                                                                             |   |                                                  | (89       | )      |                                                  |   | (5 | ) |   |   | (215 | ) |   |   | 37 |   |
|                                                                                                       |   |                                                  |      |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS)                                                                                          |   | $                                                     | 1,978     |   |                                                  | $      | (951 | ) |   | $ | 5,221 |   |   | $ | (2,897 | ) |
|                                                                                                       |   |                                                  |      |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares used in basic and diluted net income (loss) per common share calculation |   |                                                  | 2,249,416 |   |                                                  |   | 2,205,460 |   |   |   | 2,246,390 |   |   |   | 2,194,429 |   |
|                                                                                                       |   |                                                  |      |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE                                                       |   | $                                                     | 0.88      |   |                                                  | $      | (0.43 | ) |   | $ | 2.32 |   |   | $ | (1.32 | ) |

|   |   |
|--------|--------|

----

|                                                                                                                                   |   | Nine Months EndedSeptember 30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                                                        |   | 2010                           |   |   | 2009 |   |
|                                                                                                                                        |   |                           |   |   |   |   |
| OPERATING ACTIVITIES                                                                                                                        |   |                           |   |   |   |   |
| Net income (loss)                                                                                                                           |   | $                              | 5,221  |   |   | $ | (2,897 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                                    |   |                           |   |   |   |   |   |   |
| Depreciation                                                                                                                                |   |                           | 493    |   |   |   | 765 |   |
| Amortization of finite-lived intangible assets                                                                                              |   |                           | 90     |   |   |   | 30 |   |
| Stock-based compensation                                                                                                                    |   |                           | 91     |   |   |   | 60 |   |
| Changes in operating assets and liabilities:                                                                                                |   |                           |   |   |   |   |   |   |
|    Decrease (increase) in accounts receivable                                                                                |   |                           | (1,887 | ) |   |   | 2,213 |   |
|    Decrease (increase) in inventories                                                                                        |   |                           | (1,346 | ) |   |   | 640 |   |
|    Increase in other current assets                                                                                          |   |                           | 119    |   |   |   | 20 |   |
|    Increase (decrease) in trade accounts payable, accrued compensation and commissions expense and other accrued liabilities |   |                           | 243    |   |   |   | (235 | ) |
| Net cash provided by operating activities                                                                                                   |   |                           | 3,024  |   |   |   | 596 |   |
|                                                                                                                                        |   |                           |   |   |   |   |   |   |
| INVESTING ACTIVITIES                                                                                                                        |   |                           |   |   |   |   |   |   |
| Capital expenditures                                                                                                                        |   |                           | (340   | ) |   |   | (289 | ) |
| Net cash used in investing activities                                                                                                       |   |                           | (340   | ) |   |   | (289 | ) |
|                                                                                                                                        |   |                           |   |   |   |   |   |   |
| FINANCING ACTIVITIES                                                                                                                        |   |                           |   |   |   |   |   |   |
| Net repayments on note payable to bank                                                                                                      |   |                           | (1,696 | ) |   |   | (386 | ) |
| Repayments of long-term debt                                                                                                                |   |                           | (2,549 | ) |   |   | (687 | ) |
| Net cash used in financing activities                                                                                                       |   |                           | (4,245 | ) |   |   | (1,073 | ) |
|                                                                                                                                        |   |                           |   |   |   |   |   |   |
| Decrease in cash and cash equivalents                                                                                                       |   |                           | (1,561 | ) |   |   | (766 | ) |
| Cash and cash equivalents at beginning of period                                                                                            |   |                           | 3,816  |   |   |   | 5,325 |   |
| Cash and cash equivalents at end of period                                                                                                  |   | $                              | 2,255  |   |   | $ | 4,559 |   |
|                                                                                                                                        |   |                           |   |   |   |   |   |   |
|   Supplemental Disclosure:                                                                                                        |   |                           |   |   |   |   |   |   |
|       Cash paid for interest                                                                                  |   | $                              | 293    |   |   | $ | 270 |   |
|       Cash paid for income taxes                                                                              |   | $                              | 1      |   |   | $ | -- |   |
| Non-cash Financing Transactions:                                                                                                            |   |                           |   |   |   |   |   |   |
|  Issuance of treasury shares for restricted stock                                                                                      |   | $                              | --     |   |   | $ | 101 |   |

----

|                                        |   | Shares ofCommon StockOutstanding |      |   | CommonStock |   |   | AdditionalPaid-InCapital |   |   | Accumulated Deficit |   |   | Accumulated Other Comprehensive Loss |    | Total  |
|---------------------------------------------|--------|----------------------------------|-----------|--------|-------------|--------|--------|--------------------------|--------|--------|---------------------|--------|--------|--------------------------------------|---------|--------|
| Balance at January 1, 2010                  |   |                             | 2,227,684 |   |        | $      | 22     |                     |   | $      | 20,708              |   |   | $                                    | (11,604 | )      |   | $ | (116 | ) | $ | 9,010 |
| Comprehensive income:                       |   |                             |      |   |        |   |   |                     |   |   |                |   |   |                                 |    |   |   |   |   |   |   |   |
| Net income for period                       |   |                             | --        |   |        |   | --     |                     |   |   | --                  |   |   |                                 | 5,221   |   |   |   | -- |   |   | 5,221 |
| Other comprehensive income                  |   |                             | --        |   |        |   | --     |                     |   |   | --                  |   |   |                                 | --      |   |   |   | 106 |   |   | 106 |
| Comprehensive income                        |   |                             |      |   |        |   |   |                     |   |   |                |   |   |                                 |    |   |   |   |   |   |   | 5,327 |
|                                        |   |                             |      |   |        |   |   |                     |   |   |                |   |   |                                 |    |   |   |   |   |   |   |   |
| Issuance of new shares for restricted stock |   |                             | 22,689    |   |        |   | --     |                     |   |   | 91                  |   |   |                                 | --      |   |   |   | -- |   |   | 91 |
| Balance at September 30, 2010               |   |                             | 2,250,373 |   |        | $      | 22     |                     |   | $      | 20,799              |   |   | $                                    | (6,383  | )      |   | $ | (10 | ) | $ | 14,428 |

----

| A.   | Organization |
|----------------|--------------|

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

| B.   | Basis of Presentation |
|----------------|-----------------------|

----

| C.   | Inventories |
|----------------|-------------|

|         |   | September 30,2010 |   |   | December 31,2009 |   |
|-------------------|--------|-------------------|--------|--------|------------------|--------|
|              |   | (in thousands)    |   |
| Raw materials     |   | $                 | 2,749  |   |             | $      | 2,738 |   |
| Work in process   |   |              | 2,123  |   |             |   | 1,486 |   |
| Finished goods    |   |              | 1,822  |   |             |   | 1,124 |   |
| Total Inventories |   | $                 | 6,694  |   |             | $      | 5,348 |   |

----

| D.   | Notes Payable to Banks and Long-Term Debt |
|----------------|-------------------------------------------|

|                                                                                                                                                                                      |   | September 30, 2010 |   |   | December 31,2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
| Notes Payable:                                                                                                                                                                            |   | (in thousands)     |   |
| MtronPTI revolving loan (First National Bank of Omaha (“FNBO”)) at 30-day LIBOR plus 3.25%, (3.51% at September 30, 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 September 30, 2010 |   |               | 740    |   |             |   | 948 |   |
|                                                                                                                                                                                      |   |               | 740    |   |             |   | 3,289 |   |
| Current maturities                                                                                                                                                                        |   |               | 294    |   |             |   | 2,620 |   |
| Long -Term Debt                                                                                                                                                                           |   | $                  | 446    |   |             | $      | 669 |   |
|                                                                                                                                                                                      |   |               |   |   |             |   |   |   |

----

----

| E.   | Stock Based Compensation |
|----------------|--------------------------|

| F.   | Earnings (Loss) Per Share |
|----------------|---------------------------|

| G.   | Other Comprehensive Income (Loss) |
|----------------|-----------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Nine Months EndedSeptember 30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2010                           |   |   | 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (in thousands)                 |   |
| Balance beginning of period                                                                                                 |   | $                              | (116   | ) |   | $ | (235 | ) |
| Deferred gain on swap liability on hedge contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                           | 102    |   |   |   | 72 |   |
| Unrealized gain on available-for-sale securities                                                                            |   |                           | 4      |   |   |   | 10 |   |
| Balance end of period                                                                                                                           |   | $                              | (10    | ) |   | $ | (153 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | September 30,2010 |   |   | December 31, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (in thousands)    |   |
| Deferred loss on swap liability on hedge contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                 | (27    | )      |              | $      | (129 | ) |
| Unrealized gain on available-for-sale securities                                                                            |   |              | 17     |   |              |   | 13 |   |
| Accumulated other comprehensive loss                                                                                                            |   | $                 | (10    | )      |              | $      | (116 | ) |

| H.   | Fair Value Measurements |
|----------------|-------------------------|

|                  |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |   | TotalSeptember 30, 2010 |   |
|-----------------------|--------|----------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-------------------------------------------|--------|--------|-------------------------|--------|
|                  |   | (in thousands)                                                 |   |
| Marketable securities |   | $                                                              | 32     |   |                                          | $      | --     |                                      |   | $      | --                      |   |   | $ | 32 |   |

----

|                              |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |   | TotalSeptember 30, 2010 |   |
|-----------------------------------|--------|----------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-------------------------------------------|--------|--------|-------------------------|--------|
|                              |   | (in thousands)                                                 |   |
| Swap liability on hedge contracts |   | $                                                              | --     |   |                                          | $      | 27     |                                      |   | $      | --                      |   |   | $ | 27 |   |

| I.   | Foreign Revenues |
|----------------|------------------|

|                                                 |   | Three Months EndedSeptember 30, |   |
|------------------------------------------------------|--------|---------------------------------|--------|
| Foreign Revenues:                                    |   | 2010                            |   |   | 2009 |   |
|                                                 |   | (in thousands)                  |   |
| China                                                |   | $                               | 1,714  |   |   | $ | 1,006 |   |
| Malaysia                                             |   |                            | 1,568  |   |   |   | 1,102 |   |
| Thailand                                             |   |                            | 983    |   |   |   | 251 |   |
| Mexico                                               |   |                            | 697    |   |   |   | 446 |   |
| Singapore                                            |   |                            | 177    |   |   |   | 230 |   |
| Taiwan                                               |   |                            | 77     |   |   |   | 118 |   |
| France                                               |   |                            | 63     |   |   |   | 92 |   |
| All other foreign countries                          |   |                            | 445    |   |   |   | 520 |   |
|      Total foreign revenues |   | $                               | 5,724  |   |   | $ | 3,765 |   |

|                                                 |   | Nine Months EndedSeptember 30, |   |
|------------------------------------------------------|--------|--------------------------------|--------|
| Foreign Revenues:                                    |   | 2010                           |   |   | 2009 |   |
|                                                 |   | (in thousands)                 |   |
| China                                                |   | $                              | 4,502  |   |   | $ | 2,538 |   |
| Malaysia                                             |   |                           | 4,872  |   |   |   | 2,945 |   |
| Thailand                                             |   |                           | 1,891  |   |   |   | 712 |   |
| Mexico                                               |   |                           | 1,803  |   |   |   | 1,192 |   |
| Singapore                                            |   |                           | 652    |   |   |   | 1,072 |   |
| Taiwan                                               |   |                           | 366    |   |   |   | 182 |   |
| France                                               |   |                           | 400    |   |   |   | 400 |   |
| All other foreign countries                          |   |                           | 1,672  |   |   |   | 1,931 |   |
|      Total foreign revenues |   | $                              | 16,158 |   |   | $ | 10,972 |   |

----

| J.   | Commitments and Contingencies |
|----------------|-------------------------------|

| K.   | Income Taxes |
|----------------|--------------|

| L.   |  Related Party Transactions |
|----------------|----------------------------------|

----

| M.   | Subsequent  Events |
|----------------|------------------------------|

----

----

----

----

----

----

----

----

----

| Exhibit No. |  Description                                                                                            |
|-------------|--------------------------------------------------------------------------------------------------------------|
|        |                                                                                                         |
| 31.1        | Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* |
| 31.2        | Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* |
| 32.1        | Certification of the Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |
| 32.2        | Certification of the Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |

|   | * Filed herewith |
|--------|------------------|

----

|   | SIGNATURES |
|--------|------------|

|                                                                                           |   | THE LGL GROUP, INC. |
|------------------------------------------------------------------------------------------------|--------|---------------------|
|                                                                                           |   |                |
|                                                                                           |   |                |
| Date:            November 15, 2010 |   | By:                 |  /s/ Gregory P. Anderson |
|                                                                                           |   |                | Gregory P. Anderson |
|                                                                                           |   |                | President and Chief Executive Officer(Principal Executive Officer) |
|                                                                                           |   |                |   |
|                                                                                           |   |                |   |
| Date:            November 15, 2010 |   | By:                 |  /s/ R. LaDuane Clifton |
|                                                                                           |   |                | R. LaDuane Clifton |
|                                                                                           |   |                | Chief Accounting Officer(Principal Financial Officer) |

----

| Exhibit No. |  Description                                                                                            |
|-------------|--------------------------------------------------------------------------------------------------------------|
|        |                                                                                                         |
| 31.1        | Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* |
| 31.2        | Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* |
| 32.1        | Certification of the Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |
| 32.2        | Certification of the Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |

|   | * Filed herewith |
|--------|------------------|