| (Mark One) |                                                                                     |
|------------|------------------------------------------------------------------------------------------|
| x          | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|       |                                                                                     |
|       | For the quarterly period ended September 30, 2009                                   |
| 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) |

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| Class       |   | Outstanding at November 19, 2009 |
|-------------------------------------------|--------|----------------------------------|
| Common Stock, $0.01 par value             |   | 2,216,572                        |

----

| PART I.  | FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |     |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
| Item 1.  | Financial Statements (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
|     | Condensed Consolidated Balance Sheets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  1  |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
|     | –   September 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
|     | –   December 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
|     | Condensed Consolidated Statements of Operations:                                                                                                                    |  3  |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
|     | –   Three months ended September 30, 2009 and 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
|     | –   Nine months ended September 30, 2009 and 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
|     | Condensed Consolidated Statement of Stockholders’ Equity:                                                                                                     |  4  |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
|     | –   Nine months ended September 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
|     | Condensed Consolidated Statements of Cash Flows:                                                                                                                    |  5  |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
|     | –    Nine months ended September 30, 2009 and 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
|     | 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                                                                                                           |  20 |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
| Item 4T. | Controls and Procedures                                                                                                                                             |  20 |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
| PART II. | OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
| Item 1.  | Legal Proceedings                                                                                                                                                   |  21 |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
| Item 1A. | Risk Factors                                                                                                                                                        |  21 |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                         |  22 |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
| Item 3.  | Defaults Upon Senior Securities                                                                                                                                     |  22 |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
| Item 4.  | Submission of Matters to a Vote of Security Holders                                                                                                                 |  22 |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
| Item 5.  | Other Information                                                                                                                                                   |  22 |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |
| Item 6.  | Exhibits                                                                                                                                                            |     |

----

|                                                             |   | September 30, 2009 |    |   | December 31,2008 (A) |   |
|-----------------------------------------------------------------------|--------|--------------------|---------|--------|----------------------|--------|
| ASSETS                                                                |   |               |    |   |                 |   |
| Current Assets:                                                       |   |               |    |   |                 |   |
| Cash and cash equivalents                                             |   | $                  | 4,559   |   |                 | $      | 5,325 |   |
| Investment - marketable security                                      |   |               | 24      |   |                 |   | 14 |   |
| Accounts receivable, less allowances of $106 and $158, respectively   |   |               | 4,270   |   |                 |   | 6,483 |   |
| Inventories                                                           |   |               | 4,521   |   |                 |   | 5,121 |   |
| Prepaid expenses and other current assets                             |   |               | 334     |   |                 |   | 400 |   |
| Total Current Assets                                                  |   |               | 13,708  |   |                 |   | 17,343 |   |
| Property, Plant and Equipment:                                        |   |               |    |   |                 |   |   |   |
| Land                                                                  |   |               | 693     |   |                 |   | 693 |   |
| Buildings and improvements                                            |   |               | 5,062   |   |                 |   | 5,048 |   |
| Machinery and equipment                                               |   |               | 13,234  |   |                 |   | 12,901 |   |
| Gross Property, Plant and Equipment                                   |   |               | 18,989  |   |                 |   | 18,642 |   |
| Less: Accumulated Depreciation                                        |   |               | (14,952 | )      |                 |   | (14,129 | ) |
|       Net Property, Plant and Equipment |   |               | 4,037   |   |                 |   | 4,513 |   |
| Deferred Income Taxes                                                 |   |               | 111     |   |                 |   | 111 |   |
| Other Assets                                                          |   |               | 404     |   |                 |   | 398 |   |
| Total Assets                                                          |   | $                  | 18,260  |   |                 | $      | 22,365 |   |

----

|                                                                                                                                                                                                                |   | September 30, 2009 |    |   | December 31,2008 (A) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|----------------------|--------|
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                               |   |               |    |   |                 |   |
| Current Liabilities:                                                                                                                                                                                                     |   |               |    |   |                 |   |
| Note payable to bank                                                                                                                                                                                                     |   | $                  | 2,363   |   |                 | $      | 2,749 |   |
| Accounts payable                                                                                                                                                                                                         |   |               | 1,770   |   |                 |   | 2,093 |   |
| Accrued expenses                                                                                                                                                                                                         |   |               | 2,427   |   |                 |   | 2,421 |   |
| Current maturities of long-term debt                                                                                                                                                                                     |   |               | 361     |   |                 |   | 397 |   |
| Total Current Liabilities                                                                                                                                                                                                |   |               | 6,921   |   |                 |   | 7,660 |   |
| Long-term debt                                                                                                                                                                                                           |   |               | 3,009   |   |                 |   | 3,660 |   |
| Total Liabilities                                                                                                                                                                                                        |   |               | 9,930   |   |                 |   | 11,320 |   |
|                                                                                                                                                                                                                     |   |               |    |   |                 |   |   |   |
| Stockholders’ Equity:                                                                                                                                                                                              |   |               |    |   |                 |   |   |   |
| Common stock, $0.01 par value - 10,000,000 shares authorized; 2,216,572 and 2,188,510 shares issued at September 30, 2009, and December 31, 2008, respectively; 2,216,572 and 2,183,236 shares outstanding, respectively |   |               | 22      |   |                 |   | 22 |   |
| Additional paid-in capital                                                                                                                                                                                               |   |               | 20,687  |   |                 |   | 20,728 |   |
| Accumulated deficit                                                                                                                                                                                                      |   |               | (12,226 | )      |                 |   | (9,369 | ) |
| Accumulated other comprehensive loss                                                                                                                                                                                     |   |               | (153    | )      |                 |   | (235 | ) |
| Treasury stock, at cost, of 0 and 5,274 shares at September 30, 2009, and December 31, 2008, respectively                                                                                                                |   |               | -       |   |                 |   | (101 | ) |
| Total Stockholders’ Equity                                                                                                                                                                                         |   |               | 8,330   |   |                 |   | 11,045 |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                                                                         |   | $                  | 18,260  |   |                 | $      | 22,365 |   |

| (A)   | The Condensed Consolidated Balance Sheet at December 31, 2008, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                      |   | Three MonthsEnded September 30, |      |   | Nine MonthsEnded September 30, |   |
|------------------------------------------------|--------|---------------------------------|-----------|--------|--------------------------------|--------|
|                                           |   | 2009                            |      |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
|                                           |   |                            |      |   |                           |   |   |   |   |   |   |   |
| REVENUES                                       |   | $                               | 7,321     |   |                           | $      | 10,248 |   |   | $ | 22,099 |   |   | $ | 30,181 |   |
| Cost and expenses:                             |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Manufacturing cost of sales                    |   |                            | 5,891     |   |                           |   | 7,627 |   |   |   | 17,583 |   |   |   | 22,325 |   |
| Engineering, selling and administrative        |   |                            | 2,287     |   |                           |   | 2,714 |   |   |   | 7,173 |   |   |   | 8,799 |   |
| OPERATING LOSS                                 |   |                            | (857      | )      |                           |   | (93 | ) |   |   | (2,657 | ) |   |   | (943 | ) |
| Other income (expense):                        |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                          |   |                            | (103      | )      |                           |   | (79 | ) |   |   | (281 | ) |   |   | (208 | ) |
| Other income (expense)                         |   |                            | 2         |   |                           |   | 227 |   |   |   | 44 |   |   |   | 149 |   |
|    Total Other Income (Expense) |   |                            | (101      | )      |                           |   | 148 |   |   |   | (237 | ) |   |   | (59 | ) |
| INCOME (LOSS) BEFORE INCOME TAXES              |   |                            | (958      | )      |                           |   | 55 |   |   |   | (2,894 | ) |   |   | (1,002 | ) |
| Benefit (Provision) for income taxes           |   |                            | (5        | )      |                           |   | (84 | ) |   |   | 37 |   |   |   | (190 | ) |
|                                           |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS                                       |   | $                               | (963      | )      |                           | $      | (29 | ) |   | $ | (2,857 | ) |   | $ | (1,192 | ) |
|                                           |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding.           |   |                            | 2,205,460 |   |                           |   | 2,176,555 |   |   |   | 2,194,429 |   |   |   | 2,172,090 |   |
|                                           |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| BASIC AND DILUTED NET LOSS PER SHARE           |   | $                               | (0.44     | )      |                           | $      | (0.01 | ) |   | $ | (1.30 | ) |   | $ | (0.55 | ) |

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

----

|                                                    |   | Shares ofCommon StockOutstanding |      |   | CommonStock |   |   | AdditionalPaid-InCapital |   |   | Accumulated Deficit |   |   | Accumulated Other Comprehensive Loss |    |   | Treasury Stock |   |   | Total  |   |   |
|---------------------------------------------------------|--------|----------------------------------|-----------|--------|-------------|--------|--------|--------------------------|--------|--------|---------------------|--------|--------|--------------------------------------|---------|--------|----------------|--------|--------|--------|--------|--------|
| Balance at January 1, 2009                              |   |                             | 2,183,236 |   |        | $      | 22     |                     |   | $      | 20,728              |   |   | $                                    | (9,369  | )      |           | $      | (235   | )      |   | $      | (101 | ) |   | $ | 11,045 |   |
| Comprehensive loss:                                     |   |                             |      |   |        |   |   |                     |   |   |                |   |   |                                 |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss for period                                     |   |                             | --        |   |        |   | --     |                     |   |   | --                  |   |   |                                 | (2,857  | )      |           |   | --     |   |   |   | -- |   |   |   | (2,857 | ) |
| Other comprehensive income                              |   |                             | --        |   |        |   | --     |                     |   |   | --                  |   |   |                                 | --      |   |           |   | 82     |   |   |   | -- |   |   |   | 82 |   |
| Comprehensive loss                                      |   |                             |      |   |        |   |   |                     |   |   |                |   |   |                                 |    |   |           |   |   |   |   |   |   |   |   |   | (2,775 | ) |
|                                                    |   |                             |      |   |        |   |   |                     |   |   |                |   |   |                                 |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock based compensation                                |   |                             | --        |   |        |   | --     |                     |   |   | 60                  |   |   |                                 | --      |   |           |   | --     |   |   |   | -- |   |   |   | 60 |   |
| Issuance of treasury shares for vested restricted stock |   |                             | 5,274     |   |        |   | --     |                     |   |   | (101                | )      |   |                                 | --      |   |           |   | --     |   |   |   | 101 |   |   |   | -- |   |
| Issuance of new shares for vested restricted stock      |   |                             | 28,062    |   |        |   | --     |                     |   |   | --                  |   |   |                                 | --      |   |           |   | --     |   |   |   | -- |   |   |   | -- |   |
| Balance at September 30, 2009                           |   |                             | 2,216,572 |   |        | $      | 22     |                     |   | $      | 20,687              |   |   | $                                    | (12,226 | )      |           | $      | (153   | )      |   | $      | -- |   |   | $ | 8,330 |   |
|                                                    |   |                             |      |   |        |   |   |                     |   |   |                |   |   |                                 |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                 |   | Nine Months EndedSeptember 30, |   |
|-------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                      |   | 2009                           |   |   | 2008 |   |
|                                                                                      |   |                           |   |   |   |   |
| OPERATING ACTIVITIES                                                                      |   |                           |   |   |   |   |
| Net loss                                                                                  |   | $                              | (2,857 | ) |   | $ | (1,192 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |   |                           |   |   |   |   |   |   |
| Depreciation                                                                              |   |                           | 765    |   |   |   | 771 |   |
| Stock based compensation                                                                  |   |                           | 60     |   |   |   | 94 |   |
| Amortization of finite-lived intangible assets                                            |   |                           | 30     |   |   |   | 56 |   |
| Gain on sale of equipment                                                                 |   |                           | -      |   |   |   | (255 | ) |
| Changes in operating assets and liabilities:                                              |   |                           |   |   |   |   |   |   |
|    Accounts receivable                                                     |   |                           | 2,213  |   |   |   | 317 |   |
|     Inventories                                                       |   |                           | 600    |   |   |   | (547 | ) |
|     Accounts payable and accrued liabilities                          |   |                           | (192   | ) |   |   | 380 |   |
|     Other assets/liabilities                                          |   |                           | (23    | ) |   |   | 32 |   |
| Net cash provided by (used in) operating activities                                       |   |                           | 596    |   |   |   | (344 | ) |
|                                                                                      |   |                           |   |   |   |   |   |   |
| INVESTING ACTIVITIES                                                                      |   |                           |   |   |   |   |   |   |
| Proceeds from sale of equipment                                                           |   |                           | -      |   |   |   | 255 |   |
| Capital expenditures                                                                      |   |                           | (289   | ) |   |   | (284 | ) |
| Net cash used in investing activities                                                     |   |                           | (289   | ) |   |   | (29 | ) |
|                                                                                      |   |                           |   |   |   |   |   |   |
| FINANCING ACTIVITIES                                                                      |   |                           |   |   |   |   |   |   |
| Net (repayments) borrowings on note payable to bank                                       |   |                           | (386   | ) |   |   | 1,039 |   |
| Repayments of long-term debt                                                              |   |                           | (687   | ) |   |   | (295 | ) |
| Net cash (used in) provided by financing activities                                       |   |                           | (1,073 | ) |   |   | 744 |   |
|                                                                                      |   |                           |   |   |   |   |   |   |
| Increase (Decrease) in cash and cash equivalents                                          |   |                           | (766   | ) |   |   | 371 |   |
| Cash and cash equivalents at beginning of period                                          |   |                           | 5,325  |   |   |   | 5,233 |   |
| Cash and cash equivalents at end of period                                                |   | $                              | 4,559  |   |   | $ | 5,604 |   |
|                                                                                      |   |                           |   |   |   |   |   |   |
|   Supplemental Disclosure:                                                      |   |                           |   |   |   |   |   |   |
| Cash paid for interest                                                                    |   | $                              | 270    |   |   | $ | 290 |   |
| Cash paid for income taxes                                                                |   | $                              | --     |   |   | $ | 21 |   |
| Non-cash Financing Transactions:                                                          |   |                           |   |   |   |   |   |   |
| Issuance of treasury shares for vested restricted stock                                   |   | $                              | 101    |   |   | $ | 252 |   |

----

| 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.                                                                               |   |         | 99.9   | % |
| Lynch Systems, Inc.                                                                                                                                                                                          |   |         | 100.0  | % |

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

|               |   | Cost           |   |   | GrossUnrealized Gain |   |   | FairValue |   |
|--------------------|--------|----------------|--------|--------|----------------------|--------|--------|-----------|--------|
|               |   | (in thousands) |   |
| September 30, 2009 |   | $              | 14     |   |                 | $      | 10     |      |   | $ | 24 |   |
| December 31, 2008  |   | $              | 14     |   |                 | $      | --     |      |   | $ | 14 |   |

----

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

|         |   | September 30,2009 |   |   | December 31,2008 |   |
|-------------------|--------|-------------------|--------|--------|------------------|--------|
|              |   | (in thousands)    |   |
| Raw materials     |   | $                 | 2,224  |   |             | $      | 2,576 |   |
| Work in process   |   |              | 1,505  |   |             |   | 1,440 |   |
| Finished goods    |   |              | 792    |   |             |   | 1,105 |   |
| Total Inventories |   | $                 | 4,521  |   |             | $      | 5,121 |   |

----

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

|                                                                                                                                                                                                                                         |   | September 30, 2009 |   |   | December 31,2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
| Notes Payable:                                                                                                                                                                                                                               |   | (in thousands)     |   |
| MtronPTI revolving loan (First National Bank of Omaha (“FNBO”)) at 30-day LIBOR plus 4.75% (5.00% at September 30, 2009), due June 30, 2010                                                                                      |   | $                  | 2,363  |   |             | $      | 2,749 |   |
|                                                                                                                                                                                                                                         |   |               |   |   |             |   |   |   |
| Long-Term Debt:                                                                                                                                                                                                                              |   |               |   |   |             |   |   |   |
| MtronPTI term loan (RBC Centura Bank (“RBC”)) due October 1, 2010.  The note bears interest at LIBOR Base Rate plus 2.75%.  Interest rate swap converts loan to a fixed rate, at 7.51% at September 30, 2009 |   | $                  | 2,356  |   |             | $      | 2,817 |   |
| MtronPTI term loan (FNBO) due January 24, 2013.  The note bears interest at 30-day LIBOR plus 2.10%. Interest rate swap converts loan to a fixed rate, at 5.60% at September 30, 2009.                                             |   |               | 1,014  |   |             |   | 1,187 |   |
| Rice University Promissory Note at a fixed interest rate of 4.50%, due August 2009                                                                                                                                                           |   |               | -      |   |             |   | 53 |   |
|                                                                                                                                                                                                                                         |   |               | 3,370  |   |             |   | 4,057 |   |
| Current maturities                                                                                                                                                                                                                           |   |               | 361    |   |             |   | 397 |   |
| Long -Term Debt                                                                                                                                                                                                                              |   | $                  | 3,009  |   |             | $      | 3,660 |   |

----

----

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

| F.   | Loss Per Share |
|----------------|----------------|

|                             |   | Three Months EndedSeptember 30, |    |   | Nine Months EndedSeptember 30, |   |
|----------------------------------|--------|---------------------------------|---------|--------|--------------------------------|--------|
|                             |   | 2009                            |    |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
| Options to purchase common stock |   |                            | 200,000 |   |                           |   | 200,000 |   |   |   | 200,000 |   |   |   | 200,000 |   |
| Unvested restricted stock        |   |                            | 11,104  |   |                           |   | 2,881 |   |   |   | 11,104 |   |   |   | 2,881 |   |
| Totals                           |   |                            | 211,104 |   |                           |   | 202,881 |   |   |   | 211,104 |   |   |   | 202,881 |   |

| G.   | Other Comprehensive Loss |
|----------------|--------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Nine Months EndedSeptember 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2009                           |   |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | (in thousands)                 |   |
| Balance beginning of period                                                                            |   | $                              | (235   | ) |   | $ | (101 | ) |
| Deferred gain on swap liability on hedge contracts                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           | 72     |   |   |   | (4 | ) |
| Unrealized gain (loss) on available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                           | 10     |   |   |   | (27 | ) |
| Balance end of period                                                                                                      |   | $                              | (153   | ) |   | $ | (132 | ) |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | September 30,2009 |   |   | December 31, 2008 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (in thousands)    |   |
| Deferred loss on swap liability on hedge contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                 | (163   | )      |              | $      | (235 | ) |
| Unrealized gain on available-for-sale securities                                                                            |   |              | 10     |   |              |   | -- |   |
| Accumulated other comprehensive loss                                                                                                            |   | $                 | (153   | )      |              | $      | (235 | ) |

| 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) |   |   | September 30, 2009 |   |
|---------------------|--------|----------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-------------------------------------------|--------|--------|--------------------|--------|
|                |   | (in thousands)                                                 |   |
| Marketable security |   | $                                                              | 24     |   |                                          | $      | --     |                                      |   | $      | --                 |   |   | $ | 24 |   |

|                              |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |   | September 30, 2009 |   |
|-----------------------------------|--------|----------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-------------------------------------------|--------|--------|--------------------|--------|
|                              |   | (in thousands)                                                 |   |
| Swap liability on hedge contracts |   | $                                                              | --     |   |                                          | $      | 163    |                                      |   | $      | --                 |   |   | $ | 163 |   |

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| I.   | Foreign Sales |
|----------------|---------------|

|                                                 |   | Three Months EndedSeptember 30, |   |
|------------------------------------------------------|--------|---------------------------------|--------|
| Foreign Revenues:                                    |   | 2009                            |   |   | 2008 |   |
|                                                 |   | (in thousands)                  |   |
| Malaysia                                             |   | $                               | 1,102  |   |   | $ | 1,497 |   |
| China                                                |   |                            | 1,006  |   |   |   | 1,644 |   |
| Mexico                                               |   |                            | 446    |   |   |   | 678 |   |
| Thailand                                             |   |                            | 251    |   |   |   | 508 |   |
| Singapore                                            |   |                            | 230    |   |   |   | 452 |   |
| Canada                                               |   |                            | 92     |   |   |   | 181 |   |
| France                                               |   |                            | 92     |   |   |   | 131 |   |
| All other foreign countries                          |   |                            | 546    |   |   |   | 683 |   |
|      Total foreign revenues |   | $                               | 3,765  |   |   | $ | 5,774 |   |

|                                                 |   | Nine Months EndedSeptember 30, |   |
|------------------------------------------------------|--------|--------------------------------|--------|
| Foreign Revenues:                                    |   | 2009                           |   |   | 2008 |   |
|                                                 |   | (in thousands)                 |   |
| Malaysia                                             |   | $                              | 2,945  |   |   | $ | 4,793 |   |
| China                                                |   |                           | 2,538  |   |   |   | 4,208 |   |
| Mexico                                               |   |                           | 1,192  |   |   |   | 1,519 |   |
| Singapore                                            |   |                           | 1,072  |   |   |   | 915 |   |
| Thailand                                             |   |                           | 712    |   |   |   | 1,556 |   |
| France                                               |   |                           | 400    |   |   |   | 240 |   |
| Canada                                               |   |                           | 237    |   |   |   | 1,013 |   |
| All other foreign countries                          |   |                           | 1,876  |   |   |   | 2,639 |   |
|      Total foreign revenues |   | $                              | 10,972 |   |   | $ | 16,883 |   |

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

----

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

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

| M.   | New Accounting Pronouncements |
|----------------|-------------------------------|

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

----

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

|   | Operating Loss |
|--------|----------------|

----

|   | Other Income (Expense) |
|--------|------------------------|

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

|   | Net Loss |
|--------|----------|

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

----

|   | Operating Loss |
|--------|----------------|

|   | Other Income (Expenses) |
|--------|-------------------------|

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

----

|   | Net Loss |
|--------|----------|

|   | Liquidity and Capital Resources |
|--------|---------------------------------|

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----

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| 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. |

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|                                                                                           |   | THE LGL GROUP, INC. |
|------------------------------------------------------------------------------------------------|--------|---------------------|
|                                                                                           |   |                |
|                                                                                           |   |                |
| Date:            November 23, 2009 |   | BY:                 | /s/ Greg Anderson |
|                                                                                           |   |                | Greg Anderson |
|                                                                                           |   |                | President and Chief Executive Officer(Principal Executive Officer) |
|                                                                                           |   |                |   |
|                                                                                           |   |                |   |
| Date:            November 23, 2009 |   | BY:                 | /s/ Harold D. Castle |
|                                                                                           |   |                | Harold D. Castle |
|                                                                                           |   |                | Chief Financial Officer(Principal Financial Officer) |

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| 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. |

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