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

| 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 August 11, 2011 |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|
| Common Stock, $0.01 par value                                                                                                                   |   |  2,617,260                |

----

| PART I.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Financial Statements (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Condensed Consolidated Balance Sheets:                                                                                                                              |   |   | 1      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         As of June 30, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         As of December 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Condensed Consolidated Statements of Operations:                                                                                                                    |   |   | 3      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         Three months ended June 30, 2011 and 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         Six months ended June 30, 2011 and 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Condensed Consolidated Statement of Stockholders’ Equity:                                                                                                     |   |   | 4      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | – Six months ended June 30, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Condensed Consolidated Statements of Cash Flows:                                                                                                                    |   |   | 5      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         Six months ended June 30, 2011 and 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Notes to Condensed Consolidated Financial Statements:                                                                                                               |   |   | 6      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Management’s Discussion and Analysis of Financial Condition and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Results of Operations                                                                                                                                                                   |   |   | 14     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
| 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                                                                                                                                                            |   |   | 22     |   |
| SIGNATURES                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 23     |   |

----

|                                                                    |   | June 30, 2011 |                                          |   | December 31,2010 (A) |   |
|------------------------------------------------------------------------------|--------|---------------|-----------------------------------------------|--------|----------------------|--------|
| ASSETS                                                                       |   |          |                                          |   |                 |   |
| Current Assets:                                                              |   |          |                                          |   |                 |   |
| Cash and cash equivalents                                                    |   | $             | 10,985                                        |   |                 | $      | 4,147 |   |
| Accounts receivable, less allowances of $155 and $161, respectively          |   |          | 5,190                                         |   |                 |   | 5,782 |   |
| Inventories                                                                  |   |          | 6,869                                         |   |                 |   | 5,947 |   |
| Deferred income taxes                                                        |   |          | 1,295                                         |   |                 |   | 1,295 |   |
| Prepaid expenses and other current assets                                    |   |          |        310 |   |                 |   |        317 |   |
|  Total Current Assets                                                   |   |          |       24,649    |   |                 |   |        17,488 |   |
| Property, Plant and Equipment:                                               |   |          |                                          |   |                 |   |   |   |
| Land                                                                         |   |          | 672                                           |   |                 |   |        668 |   |
| Buildings and improvements                                                   |   |          | 5,447                                         |   |                 |   |        5,000 |   |
| Machinery and equipment                                                      |   |          |       14,633    |   |                 |   |        13,918 |   |
| Gross property, plant and equipment                                          |   |          | 20,752                                        |   |                 |   |         19,586 |   |
| Less: accumulated depreciation                                               |   |          |        (16,094  | )      |                 |   |         (15,758 | ) |
|         Net property, plant and equipment |   |          | 4,658                                         |   |                 |   | 3,828 |   |
|     Deferred income taxes, net                                |   |          | 1,842                                         |   |                 |   |         2,055 |   |
|     Other assets, net                                         |   |          |        269 |   |                 |   | 354 |   |
|   Total Assets                                                     |   | $             | 31,418                                        |   |                 | $      | 23,725 |   |

----

|                                                                                                                                                                |   | June 30, 2011 |   |   | December 31,2010 (A) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|----------------------|--------|
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                               |   |          |   |   |                 |   |
| Current Liabilities:                                                                                                                                                     |   |          |   |   |                 |   |
| Accounts payable                                                                                                                                                         |   | $             | 2,880  |   |                 | $      | 2,033 |   |
| Accrued compensation and commissions expense                                                                                                                             |   |          | 1,447  |   |                 |   | 1,302 |   |
| Other accrued expenses                                                                                                                                                   |   |          | 689    |   |                 |   | 1,025 |   |
| Current maturities of long-term debt                                                                                                                                     |   |          | 335    |   |                 |   | 299 |   |
| Total Current Liabilities                                                                                                                                                |   |          | 5,351  |   |                 |   | 4,659 |   |
| Long-term debt, net of current portion                                                                                                                                   |   |          | 201    |   |                 |   | 370 |   |
| Total Liabilities                                                                                                                                                        |   |          | 5,552  |   |                 |   | 5,029 |   |
|                                                                                                                                                                     |   |          |   |   |                 |   |   |   |
| Commitments and Contingencies                                                                                                                                            |   |          |   |   |                 |   |   |   |
|                                                                                                                                                                     |   |          |   |   |                 |   |   |   |
| Stockholders’ Equity:                                                                                                                                              |   |          |   |   |                 |   |   |   |
| Common stock, $0.01 par value - 10,000,000 shares authorized; 2,617,260 and 2,267,260 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively |   |          | 26     |   |                 |   | 22 |   |
| Additional paid-in capital                                                                                                                                               |   |          | 27,411 |   |                 |   | 20,893 |   |
| Accumulated deficit                                                                                                                                                      |   |          | (1,594 | )      |                 |   | (2,181 | ) |
| Accumulated other comprehensive income (loss)                                                                                                                            |   |          | 23     |   |                 |   | (38 | ) |
| Total Stockholders’ Equity                                                                                                                                         |   |          | 25,866 |   |                 |   | 18,696 |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                         |   | $             | 31,418 |   |                 | $      | 23,725 |   |

| (A)   | The Condensed Consolidated Balance Sheet as of December 31, 2010 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 June 30,                                        |      |   | Six MonthsEnded June 30, |   |
|------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|-----------|--------|--------------------------|--------|
|                                                                                                 |   |            2011 |      |   | 2010                     |   |   | 2011 |   |   | 2010 |   |
|                                                                                                 |   |                                                              |      |   |                     |   |   |   |   |   |   |   |
| REVENUES                                                                                             |   | $                                                                 | 9,646     |   |                     | $      | 12,535 |   |   | $ | 18,666 |   |   | $ | 23,236 |   |
| Cost and expenses:                                                                                   |   |                                                              |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Manufacturing cost of sales                                                                          |   |                                                              | 6,583     |   |                     |   | 7,990 |   |   |   | 12,661 |   |   |   | 15,038 |   |
| Engineering, selling and administrative                                                              |   |                                                              | 2,499     |   |                     |   | 2,194 |   |   |   | 5,058 |   |   |   | 4,643 |   |
|   Total Cost and Expenses                                                                  |   |                                                              | 9,082     |   |                     |   | 10,184 |   |   |   | 17,719 |   |   |   | 19,681 |   |
| OPERATING INCOME                                                                                     |   |                                                              | 564       |   |                     |   | 2,351 |   |   |   | 947 |   |   |   | 3,555 |   |
| Other income (expense):                                                                              |   |                                                              |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                     |   |                                                              | (29       | )      |                     |   | (112 | ) |   |   | (41 | ) |   |   | (217 | ) |
| Other income                                                                                         |   |                                                              | 5         |   |                     |   | 36 |   |   |   | 14 |   |   |   | 31 |   |
|      Total Other Income (Expense)                                           |   |                                                              | (24       | )      |                     |   | (76 | ) |   |   | (27 | ) |   |   | (186 | ) |
| INCOME BEFORE INCOME TAXES                                                                           |   |                                                              | 540       |   |                     |   | 2,275 |   |   |   | 920 |   |   |   | 3,369 |   |
|     Income tax provision                                                         |   |                                                              | (194      | )      |                     |   | (98 | ) |   |   | (333 | ) |   |   | (126 | ) |
|                                                                                                 |   |                                                              |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME                                                                                           |   | $                                                                 | 346       |   |                     | $      | 2,177 |   |   | $ | 587 |   |   | $ | 3,243 |   |
|                                                                                                 |   |                                                              |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares used in basic and diluted net income per common share calculation. |   |                                                              | 2,617,260 |   |                     |   | 2,245,970 |   |   |   | 2,549,580 |   |   |   | 2,244,851 |   |
|                                                                                                 |   |                                                              |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| BASIC AND DILUTED NET INCOME PER COMMON SHARE                                                        |   | $                                                                 | 0.13      |   |                     | $      | 0.97 |   |   | $ | 0.23 |   |   | $ | 1.44 |   |

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

----

|                                        |   | Shares of Common Stock Outstanding |      |   | Common Stock |   |   | Additional Paid-In Capital |   |   | Accumulated Deficit |   |   | Accumulated Other ComprehensiveIncome (Loss) |   |   | Treasury Stock |   |   | Total  |   |
|---------------------------------------------|--------|------------------------------------|-----------|--------|--------------|--------|--------|----------------------------|--------|--------|---------------------|--------|--------|----------------------------------------------|--------|--------|----------------|--------|--------|--------|--------|
| Balance at December 31, 2010                |   |                               | 2,267,260 |   |         | $      | 22     |                       |   | $      | 20,893              |   |   | $                                            | (2,181 | )      |           | $      | (38    | )      |   | $ | -- |   |   | $ | 18,696 |   |
| Comprehensive income:                       |   |                               |      |   |         |   |   |                       |   |   |                |   |   |                                         |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Net income for period                       |   |                               | --        |   |         |   | --     |                       |   |   | --                  |   |   |                                         | 587    |   |           |   | --     |   |   |   | -- |   |   |   | 587 |   |
| Other comprehensive income                  |   |                               | --        |   |         |   | --     |                       |   |   | --                  |   |   |                                         | --     |   |           |   | 61     |   |   |   | -- |   |   |   | 61 |   |
| Comprehensive income                        |   |                               |      |   |         |   |   |                       |   |   |                |   |   |                                         |   |   |           |   |   |   |   |   |   |   |   |   | 648 |   |
| Stock-based compensation                    |   |                               | --        |   |         |   | --     |                       |   |   | 118                 |   |   |                                         | --     |   |           |   | --     |   |   |   | -- |   |   |   | 118 |   |
| Issuance of new shares for capital offering |   |                               | 350,000   |   |         |   | 4      |                       |   |   | 6,400               |   |   |                                         | --     |   |           |   | --     |   |   |   | -- |   |   |   | 6,404 |   |
| Balance at June 30, 2011                    |   |                               | 2,617,260 |   |         | $      | 26     |                       |   | $      | 27,411              |   |   | $                                            | (1,594 | )      |           | $      | 23     |   |   | $ | -- |   |   | $ | 25,866 |   |

----

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

----

| A.   | Subsidiaries of the Registrant |
|----------------|--------------------------------|

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

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

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

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

| D.   | Long-Term Debt |
|----------------|----------------|

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

----

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

----

| F.   | Earnings Per Share |
|----------------|--------------------|

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

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

| 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) |   |   | June 30, 2011 |   |
|--------------------------|--------|---------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|------------------------------------------|--------|--------|---------------|--------|
|                     |   | (in thousands)                                                |   |
| Equity securities        |   | $                                                             | 49     |   |                                         | $      | --     |                                     |   | $      | --            |   |   | $ | 49 |   |
| U.S. Treasury securities |   | $                                                             | 7,512  |   |                                         | $      | --     |                                     |   | $      | --            |   |   | $ | 7,512 |   |

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

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

----

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

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

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

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

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

----

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

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

| M.   | Application of New Accounting Standards |
|----------------|-----------------------------------------|

| N.   | Subsequent Events |
|----------------|-------------------|

----

----

|   | Consolidated Revenues and Gross Margin |
|--------|----------------------------------------|

----

|   | Operating Income |
|--------|------------------|

|   | Interest expense |
|--------|------------------|

|   | Net Income |
|--------|------------|

|   | Consolidated Revenues and Gross Margin |
|--------|----------------------------------------|

----

|   | Interest expense |
|--------|------------------|

|   | Income Taxes |
|--------|--------------|

|   | Net Income |
|--------|------------|

----

----

----

| ·   | persuasive evidence that an arrangement exists; |
|--------------------|-------------------------------------------------|

| ·   | delivery has occurred; |
|--------------------|------------------------|

| ·   | the seller’s price to the buyer is fixed and determinable; and |
|--------------------|----------------------------------------------------------------------|

| ·   | collectability is reasonably assured. |
|--------------------|---------------------------------------|

| ·   | seller’s price to the buyer is fixed or determinable at the date of sale; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | buyer has paid the seller, or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the product; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | buyer’s obligation to the seller would not be changed in the event of theft or physical destruction or damage of the product; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | buyer acquiring the product for resale has economic substance apart from that provided by the seller; |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | seller does not have obligations for future performance; and |
|--------------------|--------------------------------------------------------------|

| ·   | the amount of future returns can be reasonably estimated. |
|--------------------|-----------------------------------------------------------|

----

----

----

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

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

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

----

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

|                                                                                         |   | THE LGL GROUP, INC. |
|----------------------------------------------------------------------------------------------|--------|---------------------|
|                                                                                         |   |                |
|                                                                                         |   |                |
| Date:            August 12, 2011 |   | BY:                 | /s/ Gregory P. Anderson |
|                                                                                         |   |                | Gregory P. Anderson |
|                                                                                         |   |                | President and Chief Executive Officer(Principal Executive Officer) |
|                                                                                         |   |                |   |
|                                                                                         |   |                |   |
| Date:            August 12, 2011 |   | BY:                 | /s/ R. LaDuane Clifton |
|                                                                                         |   |                | R. LaDuane Clifton |
|                                                                                         |   |                | Chief Accounting Officer(Principal Financial Officer) |

----