| THE      LGL GROUP, INC.                                   |
|------------------------------------------------------------|
| (Exact      name of registrant as specified in itscharter) |

| Delaware                                                            | 38-1799862                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |

| 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) |

| Large      accelerated filer  ̈                                                  | Accelerated      filer  ̈    |
|--------------------------------------------------------------------------------------|----------------------------------|
|                                                                                 |                             |
| Non-accelerated      filer  ̈ (Do      not check if a smaller reporting company) | Smaller      reporting company x |

| Class                         |   | Outstanding at August 11,    2008 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|
| Common      Stock, $0.01 par value                                                                                                                    |   | 2,176,216                         |

----

Index

INDEX

| PART I.  | FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| Item 1.  | Condensed Consolidated Financial Statements      (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|     | Condensed Consolidated Balance      Sheets:                                                                                                                        | 3      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|     | –         June      30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|     | –         December      31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|     | Condensed Consolidated Statements of      Operations:                                                                                                              | 5      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|     | –         Three      months ended June 30, 2008 and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|     | –         Six      months ended June 30, 2008 and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|     | Condensed Consolidated Statements of      Stockholders’ Equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 6      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|     | –         Six      months ended June 30, 2008 and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|     | Condensed Consolidated Statements of Cash      Flows:                                                                                                              | 7      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|     | –         Six      months ended June 30, 2008 and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|     | Notes to Condensed Consolidated Financial      Statements:                                                                                                         | 8      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition      and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|     | Results of      Operations                                                                                                                                                             | 14     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| Item 3.  | Quantitative and Qualitative Disclosure About Market      Risk                                                                                                     | 18     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| Item 4T. | Controls and      Procedures                                                                                                                                       | 18     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| PART II. | OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| Item 1.  | Legal      Proceedings                                                                                                                                             | 20     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| Item 1A. | Risk      Factors                                                                                                                                                  | 20     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| Item 4.  | Submission of Matters to a Vote of Security      Holders                                                                                                           | 20     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| Item 6.  | Exhibits                                                                                                                                                           | 21     |

----

Index

PART 

Item 

THE

|                                                                       |   | June      30,2008 |    |   | December      31,2007      (A) |   |
|----------------------------------------------------------------------------|--------|-------------------|---------|--------|--------------------------------|--------|
| ASSETS                                                                     |   |              |    |   |                           |   |
| Current      Assets:                                                       |   |              |    |   |                           |   |
| Cash      and cash equivalents                                             |   | $                 | 4,904   |   |                           | $      | 5,233 |   |
| Investments      - marketable securities                                   |   |              | 33      |   |                           |   | 48 |   |
| Accounts      receivable, less allowances of $517 and $415, respectively   |   |              | 6,026   |   |                           |   | 6,382 |   |
| Inventories                                                                |   |              | 5,462   |   |                           |   | 5,181 |   |
| Prepaid      expenses and other current assets                             |   |              | 193     |   |                           |   | 381 |   |
|       Assets      of Discontinued Operations |   |              | 4       |   |                           |   | 5 |   |
| Total      Current Assets                                                  |   |              | 16,622  |   |                           |   | 17,230 |   |
| Property,      Plant and Equipment:                                        |   |              |    |   |                           |   |   |   |
| Land                                                                       |   |              | 698     |   |                           |   | 698 |   |
| Buildings      and improvements                                            |   |              | 5,028   |   |                           |   | 5,020 |   |
| Machinery      and equipment                                               |   |              | 12,586  |   |                           |   | 12,541 |   |
| Gross      Property, Plant and Equipment                                   |   |              | 18,312  |   |                           |   | 18,259 |   |
| Less:      Accumulated Depreciation                                        |   |              | (13,676 | )      |                           |   | (13,196 | ) |
|       Net      Property, Plant and Equipment |   |              | 4,636   |   |                           |   | 5,063 |   |
| Deferred      Income Taxes                                                 |   |              | 111     |   |                           |   | 111 |   |
| Other      Assets                                                          |   |              | 435     |   |                           |   | 472 |   |
| Total      Assets                                                          |   | $                 | 21,804  |   |                           | $      | 22,876 |   |

----

Index

|                                                                                                                                                           |   | June      30,2008 |   |   | December      31,2007      (A) |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|--------------------------------|--------|
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                                                |   |              |   |   |                           |   |
| Current      Liabilities:                                                                                                                                      |   |              |   |   |                           |   |
| Note      payable to bank                                                                                                                                      |   | $                 | 1,346  |   |                           | $      | 1,035 |   |
| Trade      accounts payable                                                                                                                                    |   |              | 2,506  |   |                           |   | 2,535 |   |
| Accrued      compensation expense                                                                                                                              |   |              | 1,572  |   |                           |   | 1,481 |   |
| Accrued      professional fees                                                                                                                                 |   |              | 16     |   |                           |   | 51 |   |
| Swap      liability on hedge contracts                                                                                                                         |   |              | 78     |   |                           |   | 80 |   |
|          Other accrued expenses                                                                                                                 |   |              | 589    |   |                           |   | 640 |   |
| Current      maturities of long-term debt                                                                                                                      |   |              | 409    |   |                           |   | 419 |   |
| Liabilities      of Discontinued Operations                                                                                                                    |   |              | 177    |   |                           |   | 231 |   |
| Total      Current Liabilities                                                                                                                                 |   |              | 6,693  |   |                           |   | 6,472 |   |
| Long-term      debt                                                                                                                                            |   |              | 3,852  |   |                           |   | 4,035 |   |
| Total      Liabilities                                                                                                                                         |   |              | 10,545 |   |                           |   | 10,507 |   |
|                                                                                                                                                           |   |              |   |   |                           |   |   |   |
| Commitments      and Contingencies                                                                                                                             |   |              |   |   |                           |   |   |   |
|                                                                                                                                                           |   |              |   |   |                           |   |   |   |
| Stockholders’      Equity:                                                                                                                               |   |              |   |   |                           |   |   |   |
| Common      stock, $0.01 par value - 10,000,000 shares authorized; 2,188,510 shares      issued; 2,176,216 and 2,167,202 shares outstanding,      respectively |   |              | 22     |   |                           |   | 22 |   |
| Additional      paid-in capital                                                                                                                                |   |              | 20,815 |   |                           |   | 20,921 |   |
| Accumulated      deficit                                                                                                                                       |   |              | (9,229 | )      |                           |   | (8,066 | ) |
| Accumulated      other comprehensive loss                                                                                                                      |   |              | (114   | )      |                           |   | (101 | ) |
| Treasury      stock, at cost, 12,294 and 21,308 shares, respectively                                                                                           |   |              | (235   | )      |                           |   | (407 | ) |
| Total      Stockholders’ Equity                                                                                                                          |   |              | 11,259 |   |                           |   | 12,369 |   |
| Total      Liabilities and Stockholders’ Equity                                                                                                          |   | $                 | 21,804 |   |                           | $      | 22,876 |   |

| (A) | The      Condensed Consolidated Balance Sheet at December 31, 2007 has been derived      from the audited 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

THE 

|                                                               |   | Three      MonthsEnded      June 30, |      |   | Six      MonthsEnded      June 30, |   |
|--------------------------------------------------------------------|--------|--------------------------------------|-----------|--------|------------------------------------|--------|
|                                                               |   | 2008                                 |      |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
|                                                               |   |                                 |      |   |                               |   |   |   |   |   |   |   |
| REVENUES                                                           |   | $                                    | 10,150    |   |                               | $      | 10,014 |   |   | $ | 19,933 |   |   | $ | 19,391 |   |
| Cost      and expenses:                                            |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Manufacturing      cost of sales                                   |   |                                 | 7,544     |   |                               |   | 7,476 |   |   |   | 14,698 |   |   |   | 14,892 |   |
| Engineering,      selling and administrative                       |   |                                 | 3,000     |   |                               |   | 2,674 |   |   |   | 6,085 |   |   |   | 5,325 |   |
| Impairment      loss on Lynch Systems’ assets                |   |                                 | --        |   |                               |   | 905 |   |   |   | -- |   |   |   | 905 |   |
| OPERATING      LOSS                                                |   |                                 | (394      | )      |                               |   | (1,041 | ) |   |   | (850 | ) |   |   | (1,731 | ) |
| Other      income (expense):                                       |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Investment      income                                             |   |                                 | --        |   |                               |   | -- |   |   |   | -- |   |   |   | 1,526 |   |
| Interest      expense                                              |   |                                 | (66       | )      |                               |   | (91 | ) |   |   | (129 | ) |   |   | (180 | ) |
| Gain      on sale of land                                          |   |                                 | --        |   |                               |   | 88 |   |   |   | -- |   |   |   | 88 |   |
| Other      expense                                                 |   |                                 | (41       | )      |                               |   | (202 | ) |   |   | (73 | ) |   |   | (39 | ) |
|    Total      Other Income (Expense)                |   |                                 | (107      | )      |                               |   | (205 | ) |   |   | (202 | ) |   |   | 1,395 |   |
| LOSS      FROM CONTINUING OPERATIONS BEFORE INCOME TAXES           |   |                                 | (501      | )      |                               |   | (1,246 | ) |   |   | (1,052 | ) |   |   | (336 | ) |
| Benefit      (Provision) for income taxes                          |   |                                 | (57       | )      |                               |   | 108 |   |   |   | (106 | ) |   |   | 50 |   |
| LOSS FROM      CONTINUING OPERATIONS                               |   |                                 | (558      | )      |                               |   | (1,138 | ) |   |   | (1,158 | ) |   |   | (286 | ) |
|                                                               |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued      Operations:                                      |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from Discontinued Operations                             |   |                                 | (15       | )      |                               |   | (803 | ) |   |   | (5 | ) |   |   | (1,007 | ) |
| Loss      on sale of Lynch Systems                                 |   |                                 | --        |   |                               |   | (982 | ) |   |   | -- |   |   |   | (982 | ) |
| Loss      from discontinued operations                             |   |                                 | (15       | )      |                               |   | (1,785 | ) |   |   | (5 | ) |   |   | (1,989 | ) |
|                                                               |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| NET      LOSS                                                      |   | $                                    | (573      | )      |                               | $      | (2,923 | ) |   | $ | (1,163 | ) |   | $ | (2,275 | ) |
|                                                               |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding, basic and diluted        |   |                                 | 2,172,052 |   |                               |   | 2,154,702 |   |   |   | 2,169,820 |   |   |   | 2,154,702 |   |
|                                                               |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      AND DILUTED LOSS PER SHARE FROM CONTINUING OPERATIONS   |   | $                                    | (0.26     | )      |                               | $      | (0.53 | ) |   | $ | (0.54 | ) |   | $ | (0.13 | ) |
|                                                               |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      AND DILUTED LOSS PER SHARE FROM DISCONTINUED OPERATIONS |   | $                                    | (0.01     | )      |                               | $      | (0.83 | ) |   | $ | (0.00 | ) |   | $ | (0.93 | ) |
|                                                               |   |                                 |      |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      AND DILUTED NET LOSS PER SHARE                          |   | $                                    | (0.27     | )      |                               | $      | (1.36 | ) |   | $ | (0.54 | ) |   | $ | (1.06 | ) |

----

Index

THE 

|                                                         |   | Shares      ofCommon      StockOutstanding |      |   | CommonStock |   |     | AdditionalPaid-InCapital |   |   | Accumulated      Deficit |   |   | Accumulated      Other Comprehensive Income (Loss) |     |   | Treasury      Stock |   |     | Total  |   |
|--------------------------------------------------------------|--------|--------------------------------------------|-----------|--------|-------------|--------|----------|--------------------------|--------|--------|--------------------------|--------|--------|----------------------------------------------------|----------|--------|---------------------|--------|----------|--------|--------|
| Balance      at January 1, 2007                              |   |                                       | 2,154,702 |   |        | $      | 22       |                     |   | $      | 21,081                   |   |   | $                                                  | (5,512   | )      |                | $      | 1,790    |   |   | $ | (646 | ) |   | $ | 16,735 |   |
| Comprehensive      loss:                                     |   |                                       |      |   |        |   |     |                     |   |   |                     |   |   |                                               |     |   |                |   |     |   |   |   |   |   |   |   |   |   |
| Net      loss for period                                     |   |                                       | --        |   |        |   | --       |                     |   |   | --                       |   |   |                                               | (2,275   | )      |                |   | --       |   |   |   | -- |   |   |   | (2,275 | ) |
| Other      comprehensive loss                                |   |                                       | --        |   |        |   | --       |                     |   |   | --                       |   |   |                                               | --       |   |                |   | (1,775   | )      |   |   | -- |   |   |   | (1,775 | ) |
| Comprehensive      loss                                      |   |                                       | --   |   |        |   | --  |                     |   |   | --                  |   |   |                                               | --  |   |                |   | --  |   |   |   | --  |   |   |   | (4,050 | ) |
| Stock      based compensation                                |   |                                       | --        |   |        |   | --       |                     |   |   | 49                       |   |   |                                               | --       |   |                |   | --       |   |   |   | -- |   |   |   | 49 |   |
| Balance      at June 30, 2007                                |   |                                       | 2,154,702 |   |        | $      | 22       |                     |   | $      | 21,130                   |   |   | $                                                  | (7,787   | )      |                | $      | 15       |   |   | $ | (646 | ) |   | $ | 12,734 |   |
|                                                         |   |                                       |      |   |        |   |     |                     |   |   |                     |   |   |                                               |     |   |                |   |     |   |   |   |   |   |   |   |   |   |
|                                                         |   |                                       |      |   |        |   |     |                     |   |   |                     |   |   |                                               |     |   |                |   |     |   |   |   |   |   |   |   |   |   |
| Balance      at January 1, 2008                              |   |                                       | 2,167,202 |   |        | $      | 22       |                     |   | $      | 20,921                   |   |   | $                                                  | (8,066   | )      |                | $      | (101     | )      |   | $ | (407 | ) |   | $ | 12,369 |   |
| Comprehensive      loss:                                     |   |                                       |      |   |        |   |     |                     |   |   |                     |   |   |                                               |     |   |                |   |     |   |   |   |   |   |   |   |   |   |
| Net      loss for period                                     |   |                                       | --        |   |        |   | --       |                     |   |   | --                  |   |   |                                               | (1,163   | )      |                |   | --       |   |   |   | --  |   |   |   | (1,163 | ) |
| Other      comprehensive loss                                |   |                                       | --        |   |        |   | --       |                     |   |   | --                  |   |   |                                               | --       |   |                |   | (13      | )      |   |   | --  |   |   |   | (13 | ) |
| Comprehensive      loss                                      |   |                                       | --   |   |        |   | --  |                     |   |   | --                  |   |   |                                               | --  |   |                |   | --  |   |   |   | --  |   |   |   | (1,176 | ) |
| Stock      based compensation                                |   |                                       | --        |   |        |   | --       |                     |   |   | 66                       |   |   |                                               | --       |   |                |   | --       |   |   |   | --  |   |   |   | 66 |   |
| Issuance      of treasury shares for vested restricted stock |   |                                       | 9,014     |   |        |   | --       |                     |   |   | (172                     | )      |   |                                               | --       |   |                |   | --       |   |   |   | 172 |   |   |   | -- |   |
| Balance      at June 30, 2008                                |   |                                       | 2,176,216 |   |        | $      | 22       |                     |   | $      | 20,815                   |   |   | $                                                  | (9,229   | )      |                | $      | (114     | )      |   | $ | (235 | ) |   | $ | 11,259 |   |

----

Index

THE

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Six      Months EndedJune      30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2008                               |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                               |   |   |   |   |
| OPERATING      ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                               |   |   |   |   |
| Net      loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                  | (1,163 | ) |   | $ | (2,275 | ) |
| Adjustments      to reconcile net loss to net cash used in operating      activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                               |   |   |   |   |   |   |
| Impairment      on Lynch Systems’      assets                                                                                                    |   |                               | --     |   |   |   | 905 |   |
| Loss      on sale of Lynch      Systems                                                                                                                |   |                               | --     |   |   |   | 982 |   |
| Depreciation                                                                                                                                           |   |                               | 516    |   |   |   | 517 |   |
| Stock      based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                               | 66     |   |   |   | 49 |   |
| Amortization      of finite-lived intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                               | 30     |   |   |   | 44 |   |
| Gain      on sale of land                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                               | --     |   |   |   | (88 | ) |
| Gain      realized on sale of marketable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                               | --     |   |   |   | (1,526 | ) |
| Changes      in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                               |   |   |   |   |   |   |
|    Receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                               | 356    |   |   |   | 103 |   |
|     Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                               | (281   | ) |   |   | 933 |   |
|     Accounts      payable and accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                               | (27    | ) |   |   | (1,286 | ) |
|     Other      assets/liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                               | 198    |   |   |   | (6 | ) |
| Net cash used in operating      activities of continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                               | (305   | ) |   |   | (1,648 | ) |
|   Net      cash (used in) provided by operating activities of discontinued      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                               | (53    | ) |   |   | 420 |   |
|   Net      cash used in operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                               | (358   | ) |   |   | (1,228 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                               |   |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                               |   |   |   |   |   |   |
| Capital      expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                               | (89    | ) |   |   | (59 | ) |
| Restricted      cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                               | --     |   |   |   | 19 |   |
| Proceeds      from sale of marketable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                               | --     |   |   |   | 2,292 |   |
| Proceeds      from sale of land                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                               | --     |   |   |   | 171 |   |
| Net      cash (used in) provided by investing activities of continuing      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                               | (89    | ) |   |   | 2,423 |   |
| Net      cash used in investing activities of discontinued    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                               | --     |   |   |   | 722 |   |
| Net      cash (used in) provided by investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                               | (89    | ) |   |   | 3,145 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                               |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                               |   |   |   |   |   |   |
| Net      borrowings on note payable to bank                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                               | 311    |   |   |   | 805 |   |
| Repayments      of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                               | (193   | ) |   |   | (611 | ) |
| Net      cash provided by financing activities of continuing    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                               | 118    |   |   |   | 194 |   |
| Net      cash used in financing activities of discontinued    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                               | --     |   |   |   | (900 | ) |
| Net      cash provided by (used in) financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                               | 118    |   |   |   | (706 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                               |   |   |   |   |   |   |
| Increase      (decrease) in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                               | (329   | ) |   |   | 1,211 |   |
| Cash      and cash equivalents at beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                               | 5,233  |   |   |   | 4,429 |   |
| Cash      and cash equivalents at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                                  | 4,904  |   |   | $ | 5,640 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                               |   |   |   |   |   |   |
| Supplemental      Disclosure:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                               |   |   |   |   |   |   |
| Cash      paid for interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                                  | 199    |   |   | $ | 176 |   |
| Cash      paid for income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                                  | 308    |   |   | $ | 46 |   |
| Non-cash      Financing Transactions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                               |   |   |   |   |   |   |
| Issuance      of treasury shares for vested restricted      stock                                                                                                          |   | $                                  | 172    |   |   | $ | -- |   |

----

Index

THE 

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

|   |   | Owned ByLGL |
|--------|--------|-------------|

| 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. | Investments |
|----|-------------|

|                   |   | Cost   |   |   | GrossUnrealized (Loss) |   |   | FairValue |   |
|------------------------|--------|--------|--------|--------|-----------------------------|--------|--------|-----------|--------|
|                   |   |   |   |   |                        |   |   |      |   |
| June      30, 2008     |   | $      | 68     |   |                        | $      | (35    | )         |   | $ | 33 |   |
| December      31, 2007 |   | $      | 68     |   |                        | $      | (20    | )         |   | $ | 48 |   |

----

Index

| D. | Inventories |
|----|-------------|

|                   |   | June      30,2008   |   |   | December      31,2007 |   |
|------------------------|--------|---------------------|--------|--------|-----------------------|--------|
|                   |   | (in      thousands) |   |
| Raw      materials     |   | $                   | 2,550  |   |                  | $      | 2,306 |   |
| Work      in process   |   |                | 1,621  |   |                  |   | 1,498 |   |
| Finished      goods    |   |                | 1,291  |   |                  |   | 1,377 |   |
| Total      Inventories |   | $                   | 5,462  |   |                  | $      | 5,181 |   |

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

|                                                                                                                                                                                                                                                   |   | June      30, 2008  |   |   | December      31,2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|-----------------------|--------|
| Note      Payable:                                                                                                                                                                                                                                     |   | (in      thousands) |   |
| MtronPTI      revolving loan (First National Bank of Omaha (“FNBO”)) at 30-day LIBOR      plus 2.1% (4.56% at June 30, 2008), due June 2009                                                                                                |   | $                   | 1,346  |   |                  | $      | 1,035 |   |
|                                                                                                                                                                                                                                                   |   |                |   |   |                  |   |   |   |
| Long-Term      Debt:                                                                                                                                                                                                                                   |   |                |   |   |                  |   |   |   |
| MtronPTI      term loan (RBC Centura Bank (“RBC”)) due October 2010.  The note      bears interest at LIBOR Base Rate plus 2.75%.  Interest rate      swap converts loan to a fixed rate, at 7.51% at June 30,    2008 |   | $                   | 2,856  |   |                  | $      | 2,894 |   |
| MtronPTI      term loan (FNBO) at 30-day LIBOR plus 2.1%. Interest rate swap converts      loan to a fixed rate, at 5.60% at June 30, 2008, due January      2013                                                                                      |   |                | 1,310  |   |                  |   | 1,430 |   |
| Rice      University Promissory Note at a fixed interest rate of 4.5%, due August      2009                                                                                                                                                            |   |                | 95     |   |                  |   | 130 |   |
|                                                                                                                                                                                                                                                   |   |                | 4,261  |   |                  |   | 4,454 |   |
| Current      maturities                                                                                                                                                                                                                                |   |                | (409   | )      |                  |   | (419 | ) |
| Long      -Term Debt                                                                                                                                                                                                                                   |   | $                   | 3,852  |   |                  | $      | 4,035 |   |

----

Index

| F. | Stock      Based Compensation |
|----|-------------------------------|

----

Index

| G. | Loss      Per Share |
|----|---------------------|

|                                  |   | Three      Months EndedJune      30, |    |   | Six      Months EndedJune      30, |   |
|---------------------------------------|--------|--------------------------------------|---------|--------|------------------------------------|--------|
|                                  |   | 2008                                 |    |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
| Options      to purchase common stock |   |                                 | 200,000 |   |                               |   | 200,000 |   |   |   | 200,000 |   |   |   | 200,000 |   |
| Unvested      restricted stock        |   |                                 | 7,754   |   |                               |   | 30,000 |   |   |   | 7,754 |   |   |   | 30,000 |   |
| Total                                 |   |                                 | 207,754 |   |                               |   | 230,000 |   |   |   | 207,754 |   |   |   | 230,000 |   |

| H. | Other      Comprehensive Loss |
|----|-------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Six      Months EndedJune      30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2008                               |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (in      thousands)                |   |
| Balance      beginning of      period                                                                            |   | $                                  | (101   | ) |   | $ | 1,790 |   |
| Deferred      gain on swap liability on hedge contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                               | 2      |   |   |   | 16 |   |
| Unrealized      loss on available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                               | (15    | ) |   |   | (265 | ) |
| Reclassification      adjustment for gains included in net income                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                               | --     |   |   |   | (1,526 | ) |
| Balance      end of      period                                                                                                      |   | $                                  | (114   | ) |   | $ | 15 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | June      30, 2008  |   |   | December      31, 2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | (in      thousands) |   |
| Deferred      loss on swap liability on hedge contracts                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                   | (79    | )      |                   | $      | (78 | ) |
| Unrealized      loss on available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                | (35    | )      |                   |   | (23 | ) |
| Accumulated      other comprehensive      loss                                                                        |   | $                   | (114   | )      |                   | $      | (101 | ) |

| I. | Fair      Value Measurements |
|----|------------------------------|

----

Index

|                       |   | Quoted      Prices in Active Markets for Identical Assets (Level    1) |   |   | Significant      Other Observable Inputs (Level 2) |   |   | Significant      Unobservable Inputs (Level 3) |   |   | June      30, 2008 |   |
|----------------------------|--------|------------------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|--------------------|--------|
| Marketable      securities |   | $                                                                      | 33     |   |                                               | $      | --     |                                           |   | $      | --                 |   |   | $ | 33 |   |

|                                   |   | Quoted      Prices in Active Markets for Identical Assets (Level    1) |   |   | Significant      Other Observable Inputs (Level 2) |   |   | Significant      Unobservable Inputs (Level 3) |   |   | June      30, 2008 |   |
|----------------------------------------|--------|------------------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|--------------------|--------|
| Swap      liability on hedge contracts |   | $                                                                      | --     |   |                                               | $      | (78    | )                                              |   | $      | --                 |   |   | $ | (78 | ) |

| J. | Significant      Foreign Sales |
|----|--------------------------------|

|                                                      |   | Three      Months Ended June 30, |   |
|-----------------------------------------------------------|--------|----------------------------------|--------|
| Foreign      Revenues:                                    |   | 2008                             |   |   | 2007 |   |
| Malaysia                                                  |   | $                                | 1,709  |   |   | $ | 818 |   |
| China                                                     |   |                             | 1,523  |   |   |   | 1,086 |   |
| Thailand                                                  |   |                             | 625    |   |   |   | 760 |   |
| Mexico                                                    |   |                             | 411    |   |   |   | 741 |   |
| Canada                                                    |   |                             | 314    |   |   |   | 701 |   |
| All      other foreign countries                          |   |                             | 1,146  |   |   |   | 1,257 |   |
|      Total      foreign revenues |   | $                                | 5,728  |   |   | $ | 5,363 |   |

|                                                      |   | Six      Months Ended June 30, |   |
|-----------------------------------------------------------|--------|--------------------------------|--------|
| Foreign      Revenues:                                    |   | 2008                           |   |   | 2007 |   |
| Malaysia                                                  |   | $                              | 3,296  |   |   | $ | 1,465 |   |
| China                                                     |   |                           | 2,564  |   |   |   | 1,863 |   |
| Thailand                                                  |   |                           | 1,048  |   |   |   | 1,355 |   |
| Mexico                                                    |   |                           | 841    |   |   |   | 1,346 |   |
| Canada                                                    |   |                           | 832    |   |   |   | 1,061 |   |
| All      other foreign countries                          |   |                           | 2,528  |   |   |   | 2,319 |   |
|      Total      foreign revenues |   | $                              | 11,109 |   |   | $ | 9,409 |   |

----

Index

| K. | Discontinued      Operations |
|----|------------------------------|

| L. | Commitments      and Contingencies |
|----|------------------------------------|

| M. | Income      Taxes |
|----|-------------------|

| N. | Related      Party Transactions |
|----|---------------------------------|

----

Index

Item 

----

Index

----

Index

----

Index

----

Index

Item

Item 

----

Index

----

Index

PART 

Item 

Item 

Item 

|                      |   | Shares      For: |      |   | Shares      Withheld: |   |
|---------------------------|--------|------------------|-----------|--------|-----------------------|--------|
| Marc      Gabelli         |   |             | 1,668,086 |   |                  |   | 266,770 |   |
| Timothy      Foufas       |   |             | 1,668,086 |   |                  |   | 266,770 |   |
| E.      Val Cerutti       |   |             | 1,668,085 |   |                  |   | 266,771 |   |
| Peter      DaPuzzo        |   |             | 1,668,085 |   |                  |   | 266,771 |   |
| Avrum      Gray           |   |             | 1,666,751 |   |                  |   | 268,105 |   |
| Patrick      J. Guarino   |   |             | 1,668,086 |   |                  |   | 266,770 |   |
| Jeremiah      Healy       |   |             | 1,493,411 |   |                  |   | 441,445 |   |
| Kuni      Nakamura        |   |             | 1,668,086 |   |                  |   | 266,770 |   |
| Anthony      J. Pustorino |   |             | 1,668,085 |   |                  |   | 266,771 |   |
| Javier      Romero        |   |             | 1,668,086 |   |                  |   | 266,770 |   |

|     |   | Shares |      |
|----------|--------|--------|-----------|
| For:     |   |   | 1,931,466 |   |
| Against: |   |   | 870       |   |
| Abstain: |   |   | 2,520     |   |

----

Index

Item 

| Exhibit      No. |  Description                                                                                                 |
|------------------|-------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                              |
| 31(a)*           | Certification      by Principal Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. |
| 31(b)*           | Certification      by Principal Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. |
| 32(a)*           | Certification      by Principal Executive Officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002. |
| 32(b)*           | Certification      by Principal Financial Officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002. |

----

Index

|                                        |   | THE      LGL GROUP, INC. |
|---------------------------------------------|--------|--------------------------|
|                                        |   |                     |
|                                        |   |                     |
| Date:   August      14, 2008 |   | BY:                      | /s/      Robert Zylstra |
|                                        |   |                     | Robert      Zylstra |
|                                        |   |                     | President      and Chief Executive Officer(Principal      Executive Officer) |
|                                        |   |                     |   |
|                                        |   |                     |   |
| Date:   August      14, 2008 |   | BY:                      | /s/      Harold D. Castle |
|                                        |   |                     | Harold      D. Castle |
|                                        |   |                     | Chief      Financial Officer(Principal      Financial Officer) |