| (Mark One) |                                                                                     |
|------------|------------------------------------------------------------------------------------------|
| x          | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|       |                                                                                     |
|       | For the quarterly period ended March 31, 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 May 13, 2011  |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|
| Common Stock, $0.01 par value                                                                                                                   |   |     2,617,260 |

| PART I.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                             |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Financial Statements (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Condensed Consolidated Balance Sheets:                                                                                                                               | 1                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         March 31, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         December 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Condensed Consolidated Statements of Operations:                                                                                                                     | 3                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         Three months ended March 31, 2011 and 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Condensed Consolidated Statements of Stockholders’ Equity:                                                                                                     | 4                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         Three months ended March 31, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Condensed Consolidated Statements of Cash Flows:                                                                                                                     | 5                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | –         Three months ended March 31, 2011 and 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Notes to Condensed Consolidated Financial Statements:                                                                                                                | 6                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |             12  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Quantitative and Qualitative Disclosure About Market Risk                                                                                                            | 15                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Controls and Procedures                                                                                                                                              | 15                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
| PART II.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Legal Proceedings                                                                                                                                                    | 16                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
| Item 1A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Risk Factors                                                                                                                                                         | 16                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                          | 16                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Defaults Upon Senior Securities                                                                                                                                      | 16                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (Removed and Reserved)                                                                                                                                               | 16                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
| Item 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Other Information                                                                                                                                                    | 16                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
| Item 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Exhibits                                                                                                                                                             | 17                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                             |
| SIGNATURES                                                                                                                          | 18                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | March 31, 2011 |    |   | December 31, 2010 (A) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-----------------------|--------|
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           |    |   |                  |   |
| Current Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |           |    |   |                  |   |
| Cash and cash equivalents                                                                                                       |   | $              | 11,052  |   |                  | $      | 4,147 |   |
| Accounts receivable, less allowances of $148 and $161, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           | 4,801   |   |                  |   | 5,782 |   |
| Inventories                                                                                                                     |   |           | 6,285   |   |                  |   | 5,947 |   |
| Deferred income taxes                                                                                                           |   |           | 1,295   |   |                  |   | 1,295 |   |
| Prepaid expenses and other current assets                                                                                       |   |           | 405     |   |                  |   | 317 |   |
| Total Current Assets                                                                                                                                     |   |           | 23,838  |   |                  |   | 17,488 |   |
| Property, Plant and Equipment:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |           |    |   |                  |   |   |   |
| Land                                                                                                                            |   |           | 672     |   |                  |   | 668 |   |
| Buildings and improvements                                                                                                      |   |           | 5,121   |   |                  |   | 5,000 |   |
| Machinery and equipment                                                                                                         |   |           | 14,362  |   |                  |   | 13,918 |   |
| Gross Property, Plant and Equipment                                                                                             |   |           | 20,155  |   |                  |   | 19,586 |   |
| Less: accumulated depreciation                                                                                                  |   |           | (15,926 | )      |                  |   | (15,758 | ) |
| Net Property, Plant and Equipment                                                                                               |   |           | 4,229   |   |                  |   | 3,828 |   |
| Deferred income taxes, net                                                                                                      |   |           | 1,962   |   |                  |   | 2,055 |   |
| Other assets                                                                                                                    |   |           | 248     |   |                  |   | 354 |   |
| Total Assets                                                                                                                                             |   | $              | 30,277  |   |                  | $      | 23,725 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | March 31, 2011 |   |   | December 31, 2010 (A) |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-----------------------|--------|
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |           |   |   |                  |   |
| Current Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |           |   |   |                  |   |
| Accounts payable                                                                                                                   |   | $              | 2,402  |   |                  | $      | 2,033 |   |
| Accrued compensation and commissions expense                                                                                       |   |           | 1,178  |   |                  |   | 1,302 |   |
| Other accrued expenses                                                                                                             |   |           | 703    |   |                  |   | 1,025 |   |
| Current maturities of long-term debt                                                                                               |   |           | 305    |   |                  |   | 299 |   |
| Total Current Liabilities                                                                                                                                   |   |           | 4,588  |   |                  |   | 4,659 |   |
| Long-term debt                                                                                                 |   |           | 291    |   |                  |   | 370 |   |
| Total Liabilities                                                                                                                                           |   |           | 4,879  |   |                  |   | 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 March 31, 2011 and December 31, 2010, respectively                                                                                                                                                                                                                                                                                                                                                                                                  |   |           | 26     |   |                  |   | 22 |   |
| Additional paid-in capital                                                                                                         |   |           | 27,327 |   |                  |   | 20,893 |   |
| Accumulated deficit                                                                                                                |   |           | (1,940 | )      |                  |   | (2,181 | ) |
| Accumulated other comprehensive loss                                                                                               |   |           | (15    | )      |                  |   | (38 | ) |
| Total Stockholders’ Equity                                                                                                                            |   |           | 25,398 |   |                  |   | 18,696 |   |
| Total Liabilities and Stockholders’ Equity                                                                                                            |   | $              | 30,277 |   |                  | $      | 23,725 |   |

| (A)   | The Condensed Consolidated Balance Sheet at 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 Months EndedMarch 31, |      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2011                        |      |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                        |      |   |   |   |
| REVENUES                                                                                                                |   | $                           | 9,020     |   |   | $ | 10,701 |   |
| Cost and expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                        |      |   |   |   |   |   |
| Manufacturing cost of sales                                                                                                                 |   |                        | 6,078     |   |   |   | 7,048 |   |
| Engineering, selling and administrative                                                                                                     |   |                        | 2,559     |   |   |   | 2,449 |   |
| Total Cost and Expenses                                                                                                                                              |   |                        | 8,637     |   |   |   | 9,497 |   |
| OPERATING INCOME                                                                                                        |   |                        | 383       |   |   |   | 1,204 |   |
| Other income (expense):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                        |      |   |   |   |   |   |
| Interest expense                                                                                                                            |   |                        | (12       | ) |   |   | (105 | ) |
| Other income (expense)                                                                                                                      |   |                        | 9         |   |   |   | (5 | ) |
| Total Other Expense                                                                                                                                                  |   |                        | (3        | ) |   |   | (110 | ) |
| INCOME BEFORE INCOME TAXES                                                                                              |   |                        | 380       |   |   |   | 1,094 |   |
| Income tax provision                                                                                                                        |   |                        | (139      | ) |   |   | (28 | ) |
| NET INCOME                                                                                                              |   | $                           | 241       |   |   | $ | 1,066 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                        |      |   |   |   |   |   |
| Weighted average number of shares used in basic EPS calculation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                        | 2,481,149 |   |   |   | 2,227,684 |   |
| Weighted average number of shares used in diluted EPS calculation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                        | 2,481,149 |   |   |   | 2,238,931 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                        |      |   |   |   |   |   |
| BASIC NET INCOME PER COMMON SHARE                                                                                       |   | $                           | 0.10      |   |   | $ | 0.48 |   |
| DILUTED NET INCOME PER COMMON SHARE                                                                                     |   | $                           | 0.10      |   |   | $ | 0.48 |   |

|   | See accompanying Notes to Condensed Consolidated Financial Statements. |
|--------|------------------------------------------------------------------------|

----

|                                        |   | Shares of Common Stock Outstanding |      |   | Common Stock |   |   | Additional Paid-In Capital |   |   | Accumulated Deficit |   |   | Accumulated Other ComprehensiveLoss |   |   | 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                       |   |                               | --        |   |         |   | --     |                       |   |   | --                  |   |   |                                | 241    |   |           |   | --     |   |   |   | -- |   |   |   | 241 |   |
| Other comprehensive income                  |   |                               | --        |   |         |   | --     |                       |   |   | --                  |   |   |                                | --     |   |           |   | 23     |   |   |   | -- |   |   |   | 23 |   |
| Comprehensive income                        |   |                               |      |   |         |   |   |                       |   |   |                |   |   |                                |   |   |           |   |   |   |   |   |   |   |   |   | 264 |   |
| Stock-based compensation                    |   |                               | --        |   |         |   | --     |                       |   |   | 34                  |   |   |                                | --     |   |           |   | --     |   |   |   | -- |   |   |   | 34 |   |
| Issuance of new shares for capital offering |   |                               | 350,000   |   |         |   | 4      |                       |   |   | 6,400               |   |   |                                | --     |   |           |   | --     |   |   |   | -- |   |   |   | 6,404 |   |
| Balance at March 31, 2011                   |   |                               | 2,617,260 |   |         | $      | 26     |                       |   | $      | 27,327              |   |   | $                                   | (1,940 | )      |           | $      | (15    | )      |   | $ | -- |   |   | $ | 25,398 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Three Months EndedMarch 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2011                        |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                        |   |   |   |   |
| OPERATING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                        |   |   |   |   |
| Net income                                                                                                                                            |   | $                           | 241    |   |   | $ | 1,066 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                        |   |   |   |   |   |   |
| Depreciation                                                                                                                                                              |   |                        | 168    |   |   |   | 153 |   |
| Amortization of finite-lived intangible assets                                                                                                                            |   |                        | 36     |   |   |   | 36 |   |
| Stock-based compensation                                                                                                                                                  |   |                        | 34     |   |   |   | 15 |   |
| Deferred income tax provision                                                                                                                                             |   |                        | 93     |   |   |   | -- |   |
| Changes in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                        |   |   |   |   |   |   |
| Decrease (increase) in accounts receivable                                                                                                                                |   |                        | 981    |   |   |   | (1,154 | ) |
| Increase in inventories                                                                                                                                                   |   |                        | (338   | ) |   |   | (1,288 | ) |
| (Increase) decrease in trade accounts payable and accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        | (54    | ) |   |   | 1,125 |   |
| (Increase) decrease in other assets                                                                                                                                       |   |                        | (18    | ) |   |   | 78 |   |
| Net cash provided by operating activities                                                                                                             |   |                        | 1,143  |   |   |   | 31 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                        |   |   |   |   |   |   |
| INVESTING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                        |   |   |   |   |   |   |
| Capital expenditures                                                                                                                                  |   |                        | (569   | ) |   |   | (56 | ) |
| Net cash used in investing activities                                                                                                                 |   |                        | (569   | ) |   |   | (56 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                        |   |   |   |   |   |   |
| FINANCING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                        |   |   |   |   |   |   |
| Net borrowings on note payable to bank                                                                                                                |   |                        | --     |   |   |   | 276 |   |
| Proceeds from issuance of common stock                                                                                                                |   |                        | 6,562  |   |   |   | -- |   |
| Payment of expenses related to the public offering                                                                                                    |   |                        | (158)  |   |   |   | -- |   |
| Repayments of long-term debt                                                                                                                          |   |                        | (73    | ) |   |   | (90 | ) |
| Net cash provided by financing activities                                                                                                             |   |                        | 6,331  |   |   |   | 186 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                        |   |   |   |   |   |   |
| Increase in cash and cash equivalents                                                                                                                 |   |                        | 6,905  |   |   |   | 161 |   |
| Cash and cash equivalents at beginning of period                                                                                                      |   |                        | 4,147  |   |   |   | 3,816 |   |
| Cash and cash equivalents at end of period                                                                                                            |   | $                           | 11,052 |   |   | $ | 3,977 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                        |   |   |   |   |   |   |
| Supplemental Disclosure:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                        |   |   |   |   |   |   |
| Cash paid for income taxes                                                                                                                                                |   | $                           | 35     |   |   | $ | -- |   |
| Cash paid for interest                                                                                                                                                    |   | $                           | 9      |   |   | $ | 105 |   |

----

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

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | March 31, 2011 |   |   | December 31, 2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (in thousands) |   |
| Raw materials                                                                             |   | $              | 2,743  |   |              | $      | 2,685 |   |
| Work in process                                                                           |   |           | 1,576  |   |              |   | 1,663 |   |
| Finished goods                                                                            |   |           | 1,966  |   |              |   | 1,599 |   |
| Total inventories                                                                                             |   | $              | 6,285  |   |              | $      | 5,947 |   |

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | March 31, 2011 |   |   | December 31, 2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | (in thousands) |   |
| Long-Term Debt:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |           |   |
| 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 converts loan to a fixed rate, at 5.60% at March 31, 2011                                                                                                                                                                                                                                                                                                                                         |   | $              | 596    |   |              | $      | 669 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |           |   |   |              |   |   |   |
| Current maturities                                                                                          |   |           | 305    |   |              |   | 299 |   |
| Total Long-Term Debt                                                                                                                 |   | $              | 291    |   |              | $      | 370 |   |

----

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

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

----

| G.   | Other Comprehensive Income |
|----------------|----------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Three Months EndedMarch 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2011                        |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (in thousands)              |   |
| Balance beginning of period                                                                           |   | $                           | (38    | ) |   | $ | (116 | ) |
| Deferred gain on swap liability on hedge contracts                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                        | 5      |   |   |   | 27 |   |
| Unrealized gain on available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                        | 18     |   |   |   | -- |   |
| Balance end of period                                                                                 |   | $                           | (15    | ) |   | $ | (89 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | March 31, 2011 |   |   | December 31, 2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
| Accumulated Other Comprehensive Loss:                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | (in thousands) |   |
| Deferred loss on swap liability on hedge contracts                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $              | (16    | )      |              | $      | (21 | ) |
| Unrealized gain on available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           | 39     |   |              |   | 20 |   |
| Other comprehensive income (tax effect)                                                                        |   |           | (38    | )      |              |   | (37 | ) |
| Total Accumulated Other Comprehensive Loss                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $              | (15    | )      |              | $      | (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) |   |   | March 31, 2011 |   |
|--------------------------|--------|---------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|------------------------------------------|--------|--------|----------------|--------|
|                     |   |                                                          |   |   |                                         |   |   |                                     |   |   |           |   |
| Equity securities        |   | $                                                             | 53     |   |                                         | $      | --     |                                     |   | $      | --             |   |   | $ | 53 |   |
| 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 |   |
|--------------------------|--------|---------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|------------------------------------------|--------|--------|-------------------|--------|
|                     |   |                                                          |   |   |                                         |   |   |                                     |   |   |              |   |
| 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) |   |   | March 31, 2011 |   |
|--------------------|--------|---------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|------------------------------------------|--------|--------|----------------|--------|
|               |   |                                                          |   |   |                                         |   |   |                                     |   |   |           |   |
| Interest rate swap |   | $                                                             | --     |   |                                         | $      | 16     |                                     |   | $      | --             |   |   | $ | 16 |   |

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

----

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

|                        |   | Three Months EndedMarch 31, |   |
|-----------------------------|--------|-----------------------------|--------|
|                        |   | 2011                        |   |   | 2010 |   |
| Foreign Revenues:           |   | (in thousands)              |   |
| Malaysia                    |   | $                           | 1,613  |   |   | $ | 1,545 |   |
| China                       |   |                        | 1,277  |   |   |   | 1,363 |   |
| Singapore                   |   |                        | 484    |   |   |   | 104 |   |
| Thailand                    |   |                        | 294    |   |   |   | 644 |   |
| Mexico                      |   |                        | 179    |   |   |   | 499 |   |
| Korea                       |   |                        | 172    |   |   |   | 61 |   |
| Canada                      |   |                        | 125    |   |   |   | 59 |   |
| All other foreign countries |   |                        | 703    |   |   |   | 802 |   |
| Total foreign revenues      |   | $                           | 4,847  |   |   | $ | 5,077 |   |

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

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

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

----

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

----

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

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

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

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

----

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

----

----

----

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

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

----

|                                                                                      |   | THE LGL GROUP, INC. |
|-------------------------------------------------------------------------------------------|--------|---------------------|
|                                                                                      |   |                |
|                                                                                      |   |                |
| Date:            May 16, 2011 |   | By:                 | /s/ Gregory P. Anderson |
|                                                                                      |   |                | Gregory P. Anderson |
|                                                                                      |   |                | President and Chief Executive Officer(Principal Executive Officer) |
|                                                                                      |   |                |   |
|                                                                                      |   |                |   |
| Date:            May 16, 2011 |   | By:                 | /s/ R. LaDuane Clifton |
|                                                                                      |   |                | R. LaDuane Clifton |
|                                                                                      |   |                | Chief Accounting Officer(Principal Financial and Accounting Officer) |