0001902314 M-tron Industries, Inc. false --12-31 Q2 2024 163 141 0.01 0.01 5,000,000 5,000,000 0 0 0.01 0.01 25,000,000 25,000,000 2,808,579 2,808,579 2,786,321 2,786,321 4 4 8 0 0 0 0 0 12 24 0 0 0 http://fasb.org/us-gaap/2024#SecuredOvernightFinancingRateSofrMember 0 10 10 10 false false false false 00019023142024-01-012024-06-30 xbrli:shares 00019023142024-07-31 thunderdome:item iso4217:USD 00019023142024-04-012024-06-30 00019023142023-04-012023-06-30 00019023142023-01-012023-06-30 iso4217:USDxbrli:shares 00019023142024-06-30 00019023142023-12-31 0001902314us-gaap:PreferredStockMember2024-03-31 0001902314us-gaap:CommonStockMember2024-03-31 0001902314us-gaap:AdditionalPaidInCapitalMember2024-03-31 0001902314us-gaap:RetainedEarningsMember2024-03-31 00019023142024-03-31 0001902314us-gaap:PreferredStockMember2024-04-012024-06-30 0001902314us-gaap:CommonStockMember2024-04-012024-06-30 0001902314us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-30 0001902314us-gaap:RetainedEarningsMember2024-04-012024-06-30 0001902314us-gaap:PreferredStockMember2024-06-30 0001902314us-gaap:CommonStockMember2024-06-30 0001902314us-gaap:AdditionalPaidInCapitalMember2024-06-30 0001902314us-gaap:RetainedEarningsMember2024-06-30 0001902314us-gaap:PreferredStockMember2023-03-31 0001902314us-gaap:CommonStockMember2023-03-31 0001902314us-gaap:AdditionalPaidInCapitalMember2023-03-31 0001902314us-gaap:RetainedEarningsMember2023-03-31 00019023142023-03-31 0001902314us-gaap:PreferredStockMember2023-04-012023-06-30 0001902314us-gaap:CommonStockMember2023-04-012023-06-30 0001902314us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-30 0001902314us-gaap:RetainedEarningsMember2023-04-012023-06-30 0001902314us-gaap:PreferredStockMember2023-06-30 0001902314us-gaap:CommonStockMember2023-06-30 0001902314us-gaap:AdditionalPaidInCapitalMember2023-06-30 0001902314us-gaap:RetainedEarningsMember2023-06-30 00019023142023-06-30 0001902314us-gaap:PreferredStockMember2023-12-31 0001902314us-gaap:CommonStockMember2023-12-31 0001902314us-gaap:AdditionalPaidInCapitalMember2023-12-31 0001902314us-gaap:RetainedEarningsMember2023-12-31 0001902314us-gaap:PreferredStockMember2024-01-012024-06-30 0001902314us-gaap:CommonStockMember2024-01-012024-06-30 0001902314us-gaap:AdditionalPaidInCapitalMember2024-01-012024-06-30 0001902314us-gaap:RetainedEarningsMember2024-01-012024-06-30 0001902314us-gaap:PreferredStockMember2022-12-31 0001902314us-gaap:CommonStockMember2022-12-31 0001902314us-gaap:AdditionalPaidInCapitalMember2022-12-31 0001902314us-gaap:RetainedEarningsMember2022-12-31 00019023142022-12-31 0001902314us-gaap:PreferredStockMember2023-01-012023-06-30 0001902314us-gaap:CommonStockMember2023-01-012023-06-30 0001902314us-gaap:AdditionalPaidInCapitalMember2023-01-012023-06-30 0001902314us-gaap:RetainedEarningsMember2023-01-012023-06-30 0001902314us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMembermpti:LargestCustomerMember2024-04-012024-06-30 xbrli:pure 0001902314us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMembermpti:SecondLargestCustomerMember2024-04-012024-06-30 0001902314us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMembermpti:LargestCustomerMember2023-04-012023-06-30 0001902314us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMembermpti:SecondLargestCustomerMember2023-04-012023-06-30 0001902314us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMembermpti:LargestCustomerMember2024-01-012024-06-30 0001902314us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMembermpti:SecondLargestCustomerMember2024-01-012024-06-30 0001902314us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMembermpti:LargestCustomerMember2023-01-012023-06-30 0001902314us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMembermpti:SecondLargestCustomerMember2023-01-012023-06-30 0001902314us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-06-30 0001902314us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMembermpti:FourLargestCustomersMember2024-01-012024-06-30 0001902314us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-12-31 0001902314us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMembermpti:FourLargestCustomersMember2023-01-012023-12-31 0001902314mpti:GamcoInvestorsMember2024-04-012024-06-30 0001902314mpti:GamcoInvestorsMember2023-04-012023-06-30 0001902314mpti:LGLGroupIncMember2024-04-012024-06-30 0001902314mpti:LGLGroupIncMember2023-04-012023-06-30 0001902314us-gaap:RelatedPartyMember2024-04-012024-06-30 0001902314us-gaap:RelatedPartyMember2023-04-012023-06-30 0001902314mpti:GamcoInvestorsMember2024-01-012024-06-30 0001902314mpti:GamcoInvestorsMember2023-01-012023-06-30 0001902314mpti:LGLGroupIncMember2024-01-012024-06-30 0001902314mpti:LGLGroupIncMember2023-01-012023-06-30 0001902314us-gaap:RelatedPartyMember2024-01-012024-06-30 0001902314us-gaap:RelatedPartyMember2023-01-012023-06-30 0001902314mpti:GamcoInvestorsMember2024-06-30 0001902314mpti:GamcoInvestorsMember2023-06-30 0001902314mpti:LGLGroupIncMember2024-06-30 0001902314mpti:LGLGroupIncMember2023-06-30 0001902314us-gaap:RelatedPartyMember2024-06-30 0001902314us-gaap:RelatedPartyMember2023-06-30 0001902314mpti:GamcoInvestorsMember2023-12-31 0001902314mpti:LGLGroupIncMember2022-10-072022-10-07 0001902314mpti:AmendedAndRestatedTransitionalAdministrativeAndManagementServicesAgreementMembermpti:LGLGroupIncMember2024-06-30 0001902314mpti:AmendedAndRestatedTransitionalAdministrativeAndManagementServicesAgreementMembermpti:LGLGroupIncMember2024-04-012024-06-30 0001902314mpti:AmendedAndRestatedTransitionalAdministrativeAndManagementServicesAgreementMembermpti:LGLGroupIncMember2023-04-012023-06-30 0001902314mpti:AmendedAndRestatedTransitionalAdministrativeAndManagementServicesAgreementMembermpti:LGLGroupIncMember2024-01-012024-06-30 0001902314mpti:AmendedAndRestatedTransitionalAdministrativeAndManagementServicesAgreementMembermpti:LGLGroupIncMember2023-01-012023-06-30 0001902314mpti:SeparationCostsMembermpti:LGLGroupIncMember2024-04-012024-06-30 0001902314mpti:SeparationCostsMembermpti:LGLGroupIncMember2023-04-012023-06-30 0001902314mpti:SeparationCostsMembermpti:LGLGroupIncMember2024-01-012024-06-30 0001902314mpti:SeparationCostsMembermpti:LGLGroupIncMember2023-01-012023-06-30 0001902314us-gaap:RevolvingCreditFacilityMembermpti:FifthThirdBankNationalAssociationMember2022-06-15 00019023142022-06-152022-06-15 0001902314us-gaap:RevolvingCreditFacilityMembermpti:FifthThirdBankNationalAssociationMember2022-06-152022-06-15 0001902314us-gaap:RevolvingCreditFacilityMembermpti:FifthThirdBankNationalAssociationMember2024-06-30 0001902314us-gaap:RevolvingCreditFacilityMembermpti:FifthThirdBankNationalAssociationMember2023-12-31 0001902314mpti:CommonStockIssuedMember2023-12-31 0001902314us-gaap:TreasuryStockCommonMember2023-12-31 0001902314mpti:CommonStockOutstandingMember2023-12-31 0001902314mpti:CommonStockIssuedMember2022-12-31 0001902314us-gaap:TreasuryStockCommonMember2022-12-31 0001902314mpti:CommonStockOutstandingMember2022-12-31 0001902314mpti:CommonStockIssuedMember2024-01-012024-06-30 0001902314us-gaap:TreasuryStockCommonMember2024-01-012024-06-30 0001902314mpti:CommonStockOutstandingMember2024-01-012024-06-30 0001902314mpti:CommonStockIssuedMember2023-01-012023-12-31 0001902314us-gaap:TreasuryStockCommonMember2023-01-012023-12-31 0001902314mpti:CommonStockOutstandingMember2023-01-012023-12-31 0001902314mpti:CommonStockIssuedMember2024-06-30 0001902314us-gaap:TreasuryStockCommonMember2024-06-30 0001902314mpti:CommonStockOutstandingMember2024-06-30 0001902314us-gaap:IntellectualPropertyMember2024-06-30 0001902314us-gaap:IntellectualPropertyMember2023-12-31 0001902314us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembersrt:MinimumMemberus-gaap:NonUsMember2024-04-012024-06-30 0001902314us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembersrt:MinimumMemberus-gaap:NonUsMember2023-04-012023-06-30 0001902314us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembersrt:MinimumMemberus-gaap:NonUsMember2024-01-012024-06-30 0001902314us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMembersrt:MinimumMemberus-gaap:NonUsMember2023-01-012023-06-30 0001902314country:MY2024-04-012024-06-30 0001902314country:MY2023-04-012023-06-30 0001902314country:MY2024-01-012024-06-30 0001902314country:MY2023-01-012023-06-30 0001902314country:AU2024-04-012024-06-30 0001902314country:AU2023-04-012023-06-30 0001902314country:AU2024-01-012024-06-30 0001902314country:AU2023-01-012023-06-30 0001902314country:GR2024-04-012024-06-30 0001902314country:GR2023-04-012023-06-30 0001902314country:GR2024-01-012024-06-30 0001902314country:GR2023-01-012023-06-30 0001902314country:HU2024-04-012024-06-30 0001902314country:HU2023-04-012023-06-30 0001902314country:HU2024-01-012024-06-30 0001902314country:HU2023-01-012023-06-30 0001902314mpti:AllOtherForeignCountriesMember2024-04-012024-06-30 0001902314mpti:AllOtherForeignCountriesMember2023-04-012023-06-30 0001902314mpti:AllOtherForeignCountriesMember2024-01-012024-06-30 0001902314mpti:AllOtherForeignCountriesMember2023-01-012023-06-30 0001902314us-gaap:NonUsMember2024-04-012024-06-30 0001902314us-gaap:NonUsMember2023-04-012023-06-30 0001902314us-gaap:NonUsMember2024-01-012024-06-30 0001902314us-gaap:NonUsMember2023-01-012023-06-30 0001902314country:US2024-04-012024-06-30 0001902314country:US2023-04-012023-06-30 0001902314country:US2024-01-012024-06-30 0001902314country:US2023-01-012023-06-30
 

Table of Contents



 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


FORM 10-Q

 

         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

 

OR

 

         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ____________ to ____________

 


Commission File No. 001-41391


mtronlogosmall.jpg

M-tron Industries, Inc.

(Exact Name of Registrant as Specified in Its Charter)


Delaware

46-0457944

(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

(Registrants telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.01

 

MPTI

 

NYSE American

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

   

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No  ☒

As of July 31, 2024, the registrant had 2,808,579 shares of common stock, $0.01 par value per share, outstanding.

 



 

M-tron Industries, Inc.

 

Form 10-Q for the Period Ended June 30, 2024

 

Table of Contents

 

              Page

PART I.

 

FINANCIAL INFORMATION

   
         

Item 1.

 

Financial Statements (Unaudited)

  2
      Condensed Consolidated Statements of Operations   2
      Condensed Consolidated Balance Sheets   3
      Condensed Consolidated Statements of Equity   4
      Condensed Consolidated Statements of Cash Flows   6
      Notes to Condensed Consolidated Financial Statements   7
        1. Background and Description of Business   7
        2. Summary of Significant Accounting Policies   7
        3. Related Party Transactions   9
        4. Income Taxes   10
        5. Revolving Credit Agreement   10
        6. Stockholders' Equity   10
        7. Earnings per Share ("EPS")   11
        8. Commitments and Contingencies   11
        9 Other Financial Statement Information   11
        10. Domestic and Foreign Revenues   12
        11. Subsequent Events   12
               

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

13

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

18

Item 4.

 

Controls and Procedures

 

18

               

PART II.

 

OTHER INFORMATION

   
         

Item 1.

 

Legal Proceedings

 

19

Item 5.   Other Information   19

Item 6.

 

Exhibits

 

19

               
    Signatures    

    

 

 

Cautionary Note Concerning Forward-Looking Statements

 

Certain statements contained in this Quarterly Report on Form 10-Q of M-tron Industries, Inc. ("MtronPTI" or the "Company") and the Company's other communications and statements, other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends for all such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable by law. Such statements include, in particular, statements about the Company's beliefs, plans, objectives, goals, expectations, estimates, projections and intentions. These statements are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company's control. The words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "target," "goal," and similar expressions are intended to identify forward-looking statements. All forward-looking statements, by their nature, are subject to risks and uncertainties. Therefore, such statements are not intended to be a guarantee of the Company's performance in future periods. The Company's actual future results may differ materially from those set forth in the Company's forward-looking statements. For information concerning these factors and related matters, see "Risk Factors" in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission ("SEC") on March 25, 2024. However, other factors besides those referenced could adversely affect the Company's results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any forward-looking statements made by the Company herein speak as of the date of this Quarterly Report on Form 10-Q. The Company does not undertake to update any forward-looking statement, except as required by law. As a result, you should not place undue reliance on these forward-looking statements.

 

 

 

 

PART I

 

FINANCIAL INFORMATION

 

Item 1.

Financial Statements

 

M-tron Industries, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

 

  

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except share data)

 

2024

 

2023

 

2024

 

2023

Revenues

 $11,808  $10,140  $22,993  $19,507 

Costs and expenses:

                

Manufacturing cost of sales

  6,307   5,921   12,713   12,092 

Engineering, selling and administrative

  3,394   2,654   6,384   5,089 

Total costs and expenses

  9,701   8,575   19,097   17,181 

Operating income

  2,107   1,565   3,896   2,326 

Other income (expense):

                

Interest income (expense), net

  44   (5)  76   (7)

Other (expense) income, net

  (5)  22   37   (18)

Total other income (expense), net

  39   17   113   (25)

Income before income taxes

  2,146   1,582   4,009   2,301 

Income tax expense

  402   305   779   471 

Net income

 $1,744  $1,277  $3,230  $1,830 
                 

Income per common share:

                

Basic

 $0.64  $0.47  $1.19  $0.68 

Diluted

 $0.63  $0.47  $1.16  $0.68 
                 

Weighted average shares outstanding:

                

Basic

  2,728,599   2,697,696   2,723,293   2,688,065 

Diluted

  2,779,802   2,711,266   2,783,739   2,709,578 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

 

 

M-tron Industries, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 

(in thousands, except share data)

 

June 30, 2024

 

December 31, 2023

Assets:

        

Current assets:

        

Cash and cash equivalents

 $6,501  $3,913 

Accounts receivable, net of reserves of $163 and $141, respectively

  5,180   4,802 

Inventories, net

  9,341   8,884 

Prepaid expenses and other current assets

  640   588 

Total current assets

  21,662   18,187 

Property, plant and equipment, net

  4,687   4,131 

Right-of-use lease asset

  43   97 

Intangible assets, net

  40   45 

Deferred income tax asset

  1,943   1,835 

Other assets

  7   10 

Total assets

 $28,382  $24,305 
         

Liabilities:

        

Current liabilities:

        

Accounts payable

 $1,442  $1,300 

Accrued compensation and commissions

  2,286   2,196 

Other accrued expenses

  985   611 

Income taxes payable

     277 

Total current liabilities

  4,713   4,384 

Long-term lease liability

  9   26 

Total liabilities

  4,722   4,410 
         

Commitments and Contingencies (Note 8)

          
         

Stockholders' equity:

        

Preferred stock ($0.01 par value; 5,000,000 shares authorized, none issued)

      

Common stock ($0.01 par value; 25,000,000 shares authorized; 2,808,579 and 2,786,321 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively)

  27   27 

Additional paid-in capital

  16,702   16,167 

Retained earnings

  6,931   3,701 

Total stockholders' equity

  23,660   19,895 

Total liabilities and stockholders' equity

 $28,382  $24,305 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

 

 

 

M-tron Industries, Inc.

Condensed Consolidated Statements of Equity

(Unaudited)

 

(in thousands)

 

Preferred Stock

 

Common Stock

 

Additional Paid-in Capital

 

Retained Earnings

 

Total Equity

Balance at March 31, 2024

 $  $27  $16,501  $5,187  $21,715 

Net income

           1,744   1,744 

Adjustment to The LGL Group, Inc. transfer

               

Stock-based compensation expense

        201      201 

Exercise of stock options

               

Forfeiture of shares to pay taxes

               

Balance at June 30, 2024

 $  $27  $16,702  $6,931  $23,660 

 

 

(in thousands)

 

Preferred Stock

 

Common Stock

 

Additional Paid-in Capital

 

Retained Earnings

 

Total Equity

Balance at March 31, 2023

 $  $27  $13,954  $765  $14,746 

Net income

           1,277   1,277 

Adjustment to The LGL Group, Inc. transfer

               

Stock-based compensation expense

        140      140 

Exercise of stock options

               

Forfeiture of shares to pay taxes

        (82)     (82)

Balance at June 30, 2023

 $  $27  $14,012  $2,042  $16,081 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

 

 

 

M-tron Industries, Inc.

Condensed Consolidated Statements of Equity

(Unaudited)

 

(in thousands)

 

Preferred Stock

 

Common Stock

 

Additional Paid-in Capital

 

Retained Earnings

 

Total Equity

Balance at December 31, 2023

 $  $27  $16,167  $3,701  $19,895 

Net income

           3,230   3,230 

Adjustment to The LGL Group, Inc. transfer

               

Stock-based compensation expense

        408      408 

Exercise of stock options

        127      127 

Forfeiture of shares to pay taxes

               

Balance at June 30, 2024

 $  $27  $16,702  $6,931  $23,660 

 

 

(in thousands)

 

Preferred Stock

 

Common Stock

 

Additional Paid-in Capital

 

Retained Earnings

 

Total Equity

Balance at December 31, 2022

 $  $27  $14,102  $212  $14,341 

Net income

           1,830   1,830 

Adjustment to The LGL Group, Inc. transfer

        (219)     (219)

Stock-based compensation expense

        211      211 

Exercise of stock options

               

Forfeiture of shares to pay taxes

        (82)     (82)

Balance at June 30, 2023

 $  $27  $14,012  $2,042  $16,081 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

 

 

 

M-tron Industries, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

  

Six Months Ended June 30,

(in thousands, except share data)

 

2024

 

2023

Cash flows from operating activities:

        

Net income

 $3,230  $1,830 

Adjustments to reconcile net income to net cash provided by operating activities:

        

Noncash revenues, expenses, gains and losses included in income:

        

Depreciation

  439   385 

Amortization of finite-lived intangible assets

  5   27 

Stock-based compensation expense

  408   211 

Deferred income tax provision

  (108)  20 

Changes in operating assets and liabilities:

        

Increase in accounts receivable, net

  (378)  (548)

Increase in inventories, net

  (457)  (1,195)

(Increase) decrease in prepaid expenses and other assets

  (49)  349 

Decrease (increase) in accounts payable, accrued compensation and commissions expense and other

  366   (300)

Total adjustments

  226   (1,051)

Net cash provided by operating activities

  3,456   779 

Cash flows from investing activities:

        

Capital expenditures

  (995)  (302)

Net cash used in investing activities

  (995)  (302)

Cash flows from financing activities:

        

Forfeiture of shares to pay taxes

     (82)

Proceeds from stock option exercise

  127    

Net cash provided by (used in) financing activities

  127   (82)

Increase in cash and cash equivalents

  2,588   395 

Cash and cash equivalents at beginning of period

  3,913   926 

Cash and cash equivalents at end of period

 $6,501  $1,321 
         

Supplemental Disclosure:

        

Cash paid for interest

 $5  $7 

Cash paid for income taxes

 $1,275  $97 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

 

 

6

M-tron Industries, Inc.
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in thousands, unless otherwise stated)

 

1.     Background and Description of Business

 

Originally founded in 1965, M-tron Industries, Inc. (the "Company," "MtronPTI," "we," "us," or "our") is engaged in the designing, manufacturing and marketing of highly engineered, high reliability frequency and spectrum control products used to control the frequency or timing of signals in electronic circuits in various applications. MtronPTI’s primary markets are defense, aerospace, space, and avionics.

 

Our component-level devices and modules are used extensively in electronic systems for applications in commercial and military defense, aerospace, satellites, down-hole drilling, medical devices, instrumentation, industrial devices and in infrastructure equipment for the telecommunications and network equipment industries. As an engineering-centric company, MtronPTI provides close support to the customer throughout its products' entire life cycle, including product design, prototyping, production and subsequent product upgrades and maintenance. This collaborative approach has resulted in the development and growth of long-standing business relationships with its blue-chip customer base.

 

The Company offers a wide range of precision frequency control and spectrum control solutions including: radio frequency, microwave and millimeter wave filters; cavity, crystal, ceramic, lumped element and switched filters; high performance and high frequency oven-controlled crystal oscillators ("OCXO"), integrated phase-locked loops OCXOs, temperature-compensated crystal oscillators, voltage-controlled crystal oscillators, low jitter and harsh environment oscillators; crystal resonators, Integrated Microwave Assemblies ("IMA"); and state-of-the-art solid state power amplifier products.

 

The Company has manufacturing facilities in Orlando, Florida; Yankton, South Dakota; and Noida, India. The Company also has a sales office in Hong Kong. All of MtronPTI’s production facilities are International Organization for Standardization ("ISO") 9001:2015 certified (the international standard for creating a quality management system) and Restriction of Hazardous Substances ("RoHS") compliant. In addition, its U.S. production facilities in Orlando and Yankton are International Traffic in Arms Regulations ("ITAR") registered and International Aerospace Quality Group AS9100 Rev D certified and our Yankton production facility is Military Standard ("MIL-STD")-790 certified.

 

We maintain our executive offices at 2525 Shader Road, Orlando, Florida 32804. Our telephone number is (407) 298-2000. Our Internet address is www.mtronpti.com. Our common stock is traded on the NYSE American under the symbol "MPTI".

 

 

2.     Summary of Significant Accounting Policies

 

During the three and six months ended June 30, 2024, there were no material changes to our significant accounting policies included in our Annual Report on Form 10-K for the year ended  December 31, 2023 (the "2023 Annual Report") filed with the Securities and Exchange Commission (the "SEC") on March 25, 2024. For additional information, refer to Note B to the audited Consolidated and Combined Financial Statements in the 2023 Annual Report.

 

Basis of Presentation

 

These unaudited Condensed Consolidated Financial Statements do not include all disclosures that are normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and should be read in conjunction with the audited Consolidated and Combined Financial Statements and the related notes included in the 2023 Annual Report. The consolidated financial information as of  December 31, 2023 included herein has been derived from the audited Consolidated and Combined Financial Statements in the 2023 Annual Report.

 

In the opinion of management, these Condensed Consolidated Financial Statements contain all adjustments (consisting of normal recurring adjustments, including eliminations of material intercompany accounts and transactions) considered necessary for a fair statement of the results presented herein. Operating results for the three months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024.

 

Use of Estimates

 

The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

 

 

7

M-tron Industries, Inc.
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in thousands, unless otherwise stated)

 

Research and Development Costs

 

Research and development costs are charged to operations as incurred. For the three and six months ended June 30, 2024, research and development costs were approximately $682 and $1,315, respectively. For the three and six months ended June 30, 2023, research and development costs were approximately $535 and $1,064. Such costs are included within Engineering, selling and administrative expenses on the Condensed Consolidated Statements of Operations.

 

Concentration Risks

 

For the three months ended June 30, 2024, the Company's largest and second largest customers accounted for $4,452, or 37.7%, and $2,216, or 18.8%, of the Company's Revenues, respectively. For the three months ended June 30, 2023, the Company's largest and second largest customers accounted for $2,723, or 26.9%, and $1,662, or 16.4%, of the Company’s Revenues, respectively.

 

For the six months ended June 30, 2024, the Company's largest and second largest customers accounted for $9,327, or 40.6%, and $4,419, or 19.2%, of the Company's Revenues, respectively. For the six months ended June 30, 2023, the Company's largest and second largest customers accounted for $5,057, or 25.9%, and $2,671, or 13.7%, of the Company's Revenues, respectively.

 

A significant portion of the Company's accounts receivable is concentrated with a relatively small number of customers. As of  June 30, 2024, the Company's four largest customers accounted for approximately $2,972, or 55.6%, of gross accounts receivable. As of December 31, 2023, four of the Company's largest customers accounted for approximately $3,774, or 76.4%, of gross accounts receivable. The Company carefully evaluates the creditworthiness of its customers in deciding to extend credit. As a result, the Company has experienced very low historical bad debt expense and believes the related risk to be minimal.

 

Impairments of Long-Lived Assets

 

Long-lived assets, including intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Long-lived assets are grouped with other assets to the lowest level to which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Management assesses the recoverability of the carrying cost of the assets based on a review of projected undiscounted cash flows. If an asset is held for sale, management reviews its estimated fair value less cost to sell. Fair value is determined using pertinent market information, including appraisals or broker's estimates, and/or projected discounted cash flows. In the event an impairment loss is identified, it is recognized based on the amount by which the carrying value exceeds the estimated fair value of the long-lived asset.

 

We performed an assessment to determine if there were any indicators of impairment as of  June 30, 2024 and December 31, 2023. We concluded that, while there were events and circumstances in the macro-environment that did impact us, we did not experience any entity-specific indicators of asset impairment and no triggering events occurred.

 

Future Application of Accounting Standards

 

Segment Reporting

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), to address improvements to reportable segment disclosures. The standard primarily requires the following disclosure on an annual and interim basis: (i) significant segment expenses that are regularly provided to chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss; and (ii) other segment items and description of its composition. The standard also requires current annual disclosures about a reportable segment's profits or losses and assets to be disclosed in interim periods and the title and position of the CODM with an explanation of how the CODM uses the report measure(s) of segment profits or losses in assessing segment performance. The provisions of the standard are effective for public companies for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The standard is applied retrospectively to all prior periods presented. We are assessing the impact of this standard.

 

Income Taxes

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures" ("ASU 2023-09"). The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid. The provisions of the standard are effective for public companies for fiscal years beginning after December 15, 2024, with early adoption permitted. This standard applies prospectively; however, retrospective application is permitted. We are assessing the impact of this standard.

 

 

8

M-tron Industries, Inc.
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in thousands, unless otherwise stated)
 

3.     Related Party Transactions

 

In the normal course of business, the Company enters into various transactions with affiliated companies. Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operating decisions.

 

The following tables summarize income and expenses from transactions with related parties for the three and six months ended June 30, 2024 and 2023:

  

Three Months Ended June 30,

  

2024

 

2023

  

Income

 

Expense

 

Income

 

Expense

GAMCO Investors, Inc.

 $45  $  $  $ 

The LGL Group, Inc.

  12   27   12    

Total

 $57  $27  $12  $ 

 

  

Six Months Ended June 30,

  

2024

 

2023

  

Income

 

Expense

 

Income

 

Expense

GAMCO Investors, Inc.

 $79  $  $  $ 

The LGL Group, Inc.

  24   53   24   28 

Total

 $103  $53  $24  $28 

 

The following table summarizes assets and liabilities with related parties as of  June 30, 2024 and December 31, 2023:

  

June 30, 2024

 

December 31, 2023

  

Assets

 

Liabilities

 

Assets

 

Liabilities

GAMCO Investors, Inc.

 $4,844  $  $2,765  $ 

The LGL Group, Inc.

  74          

Total

 $4,918  $  $2,765  $ 

 

The material agreements whereby the Company generates revenues and expenses with affiliated entities are discussed below:

 

Investment Activity with GAMCO Investors, Inc.

 

Certain balances are held and invested in U.S. Treasury funds managed or advised by GAMCO Investors, Inc. or one of its subsidiaries (collectively, "GAMCO" or the "Fund Manager"), which is related to the Company through certain of our shareholders. For the three and six months ended June 30, 2024, the Company paid the Fund Manager a fund management fee of approximately 8 basis points annually of the asset balances under management. For the three and six months ended June 30, 2023, the Company did not pay the Fund Manager a fund management fee as no assets were under management. The fund management fees are not paid directly by the Company and are deducted prior to the fund striking its net asset value ("NAV").

 

As of  June 30, 2024 and December 31, 2023, the balance with the Fund Manager was $4,844 and $2,765, respectively, all of which was classified within Cash and cash equivalents on the Condensed Consolidated Balance Sheets.

 

For the three and six months ended June 30, 2024, the Company earned income on its investments with the Fund Manager totaling $45 and $79, respectively, all of which was included in Interest income on the Condensed Consolidated Statements of Operations.

 

For the three and six months ended June 30, 2023, the Company did not earn any income on its investments with the Fund Manager.

 

Transactions with The LGL Group, Inc.

 

Transitional Administrative and Management Services Agreement

On October 7, 2022, the separation of the MtronPTI business from The LGL Group, Inc. ("LGL Group") was completed (the "Separation") and the Company became an independent, publicly traded company trading on the NYSE American under the stock symbol "MPTI." The Separation was completed through LGL Group's distribution (the "Distribution") of 100% of the shares of the Company's common stock to holders of LGL Group's common stock as of the close of business on September 30, 2022, the record date for the Distribution. 

 

MtronPTI and The LGL Group, Inc. ("LGL Group") entered into an Amended and Restated Transitional Administrative and Management Services Agreement ("MtronPTI TSA"), which sets out the terms for services to be provided between the two companies post Separation. The current terms result in a net monthly payment of $4 per month from LGL Group to MtronPTI.

 

For the three months ended June 30, 2024 and 2023, LGL Group paid the Company $12 under the terms of the MtronPTI TSA, which were recorded in Other income (expense), net on the Condensed Consolidated Statements of Operations. For the six months ended June 30, 2024 and 2023, LGL Group paid the Company $24 under the terms of the MtronPTI TSA, which were recorded in Other income (expense), net on the Condensed Consolidated Statements of Operations.

 

 

9

M-tron Industries, Inc.
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in thousands, unless otherwise stated)

 

Tax Indemnity and Sharing Agreement

MtronPTI and LGL Group entered into a Tax Indemnity and Sharing Agreement ("MtronPTI Tax Agreement"), which sets out the terms for which party would be responsible for taxes imposed on LGL Group if the Distribution, together with certain related transactions, were to fail to qualify as a tax-free transaction under Internal Revenue Code ("IRC") Sections 355 and 368(a)(1)(D) if such failure were the result of actions taken after the Distribution by MtronPTI or LGL Group.

 

For the three and six months ended June 30, 2024 and 2023, no taxes related to the Distribution have been recorded in the Condensed Consolidated Financial Statements.

 

Other Transactions

MtronPTI and LGL Group agreed to share the salaries and benefits related to certain employees incurred by LGL Group. For the three and six months ended June 30, 2024, the Company reimbursed LGL Group $27 and $53, respectively, of the salaries and benefits of certain employees, which represents 50% of those costs and were recorded in Engineering, selling and administrative on the Condensed Consolidated Statements of Operations.

 

 

4.     Income Taxes

 

The Company’s quarterly provision for income taxes is measured using an annual effective tax rate, adjusted for discrete items within the period presented. To determine the annual effective tax rate, the Company estimates both the total income (loss) before income taxes for the full year and the jurisdictions in which that income (loss) is subject to tax. The actual effective tax rate for the full year may differ from these estimates if income (loss) before income taxes is greater than or less than what was estimated or if the allocation of income (loss) to jurisdictions in which it is taxed is different from the estimated allocations.

 

The effective tax rate for the three months ended June 30, 2024 and 2023 was 18.7% and 19.3%, respectively. The effective tax rate for the six months ended June 30, 2024 and 2023 was 19.4% and 20.5%, respectively. Differences between the Company’s effective income tax rate and the U.S. federal statutory rate of 21.0% are primarily due to the impact of research and development credits, permanent differences, and state taxes.

 

 

5.     Revolving Credit Agreement

 

On June 15, 2022, MtronPTI entered into a loan agreement (the “Loan Agreement”) for a revolving line of credit with Fifth Third Bank, National Association (“Fifth Third Bank”), for up to $5,000 bearing interest at the Secured Overnight Financing Rate (“SOFR”) plus a margin of 2.25%, with a SOFR floor of 0.00%. The Loan Agreement has a maturity date of June 15, 2025 and contains various affirmative and negative covenants that are customary for lines of credit and transactions of this type, including limitations on the incurrence of debt and liabilities, as well as financial reporting requirements. The Loan Agreement also imposes certain financial covenants based on Debt Service Coverage Ratio, Current Ratio, and the Ratio of Total Liabilities to Total Net Worth (as such terms are defined in the Loan Agreement). All loans pursuant to the Loan Agreement will be secured by a continuing and unconditional first priority security interest in and to any and all property of the Company.

 

As of  June 30, 2024 and December 31, 2023, there were no outstanding borrowings under the revolving line of credit with Fifth Third Bank.

 

 

6.     Stockholders' Equity

 

Shares Outstanding

 

The following table presents a rollforward of outstanding shares for the periods indicated:

  

Six Months Ended June 30, 2024

 

Year Ended December 31, 2023

  

Common Stock Issued

 

Held in Treasury

 

Common Stock Outstanding

 

Common Stock Issued

 

Held in Treasury

 

Common Stock Outstanding

Shares, beginning of period

  2,786,321      2,786,321   2,725,670      2,725,670 

Stock-based compensation

  12,548      12,548   69,597      69,597 

Exercise of stock options

  9,710      9,710          

Shares withheld for income taxes

           (8,946)     (8,946)

Shares, end of period

  2,808,579      2,808,579   2,786,321      2,786,321 

 

 

10

M-tron Industries, Inc.
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in thousands, unless otherwise stated)
 

7.     Earnings per Share ("EPS")

 

The following table presents a reconciliation of Net income and shares used in calculating basic and diluted net income per common share for the periods indicated:

  

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except share data)

 

2024

 

2023

 

2024

 

2023

Numerator for EPS:

                

Net income

 $1,744  $1,277  $3,230  $1,830 
                 

Denominator for EPS:

                

Weighted average shares outstanding - basic

  2,728,599   2,697,696   2,723,293   2,688,065 

Dilutive effects:

                

Stock options

        107    

Restricted stock

  51,203   13,570   60,339   21,513 

Weighted average shares outstanding - diluted

  2,779,802   2,711,266   2,783,739   2,709,578 
                 

Income per common share:

                

Basic

 $0.64  $0.47  $1.19  $0.68 

Diluted

 $0.63  $0.47  $1.16  $0.68 

 

 

8.     Commitments and Contingencies

 

In the ordinary course of business, the Company and its subsidiaries may become defendants in certain product liability, patent infringement, worker claims and other litigation. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. The Company has no legal accrual for contingencies as of June 30, 2024.

 

 

9.     Other Financial Statement Information

 

Inventories, Net

 

Inventories are valued at the lower of cost or net realizable value using the first-in, first-out ("FIFO") method. The Company reduces the value of its inventories to net realizable value when the net realizable value is believed to be less than the cost of the item.

 

The components of inventory as of  June 30, 2024 and December 31, 2023 are summarized below:

  

June 30, 2024

 

December 31, 2023

Raw materials

 $4,504  $4,368 

Work in process

  4,484   4,150 

Finished goods

  1,756   1,634 

Total gross inventory

  10,744   10,152 

Reserve for excess and obsolete inventory

  (1,403)  (1,268)

Inventories, net

 $9,341  $8,884 

 

Property, Plant and Equipment, Net

 

The components of property, plant and equipment as of  June 30, 2024 and December 31, 2023 are summarized below:

  

June 30, 2024

 

December 31, 2023

Land

 $536  $536 

Buildings and improvements

  5,321   5,216 

Machinery and equipment

  20,936   20,046 

Gross property, plant and equipment

  26,793   25,798 

Less: Accumulated depreciation

  (22,106)  (21,667)

Property, plant and equipment, net

 $4,687  $4,131 

 

 

11

M-tron Industries, Inc.
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in thousands, unless otherwise stated)

 

Intangible Assets, Net

 

The components of intangible assets as of  June 30, 2024 and December 31, 2023 are summarized below:

  

June 30, 2024

 

December 31, 2023

Intellectual property

 $1,226  $1,226 

Goodwill

  40   40 

Gross intangible assets

  1,266   1,266 

Less: Accumulated amortization

  (1,226)  (1,221)

Intangible assets, net

 $40  $45 

 

 

10.     Domestic and Foreign Revenues

     

Significant foreign revenues from operations (10% or more of foreign sales) for the three and six months ended June 30, 2024 and 2023 were as follows:

  

Three Months Ended June 30,

 

Six Months Ended June 30,

  

2024

 

2023

 

2024

 

2023

Malaysia

 $1,426  $1,581  $2,308  $3,160 

Australia

  645   386   1,419   593 

Greece

     264   388   408 

Hungary

           496 

All other foreign countries

  712   865   1,338   1,582 

Total foreign revenues

 $2,783  $3,096  $5,453  $6,239 

Total domestic revenues

 $9,025  $7,044  $17,540  $13,268 

 

The Company allocates its foreign revenue based on the customer's ship-to location.

 

 

11.     Subsequent Events

 

The Company has evaluated events and transactions that occurred after the balance sheet date through the date that the consolidated financial statements were issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the consolidated financial statements.

 

 

 
12

 

Item 2.

Managements Discussion and Analysis of Financial Condition and Results of Operations

 

The following discussion and analysis of the Company's financial condition and results of operations should be read in conjunction with the accompanying unaudited Condensed Consolidated Financial Statements, the notes thereto and the other unaudited financial data included in this Quarterly Report on Form 10-Q. The following discussion should also be read in conjunction with the audited Consolidated and Combined Financial Statements and the notes thereto, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”) on March 25, 2024. The terms the “Company,” “MtronPTI,” “MPTI,” “we,” “our” or “us” refer to M-tron Industries, Inc. and unless otherwise defined herein, capitalized terms used herein shall have the same meanings as set forth in our Condensed Consolidated Financial Statements and the notes thereto.

 

Unless otherwise stated, all dollar amounts are in thousands.

 

In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. See the Cautionary Note Concerning Forward-Looking Statements included in this Quarterly Report on Form 10-Q.

 

Overview

 

MtronPTI is engaged in the designing, manufacturing and marketing of highly-engineered, high reliability frequency and spectrum control products used to control the frequency or timing of signals in electronic circuits in various applications. MtronPTI’s primary markets are defense, aerospace, space, and avionics.

 

The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Company and all of its majority-owned subsidiaries.

 

Trends and Uncertainties

 

We are not aware of any material trends or uncertainties, other than national economic conditions affecting our industry generally, that may reasonably be expected to have a material impact, favorable or unfavorable, on our revenues or income other than the one listed below and the risk factors disclosed in our Annual Report on Form 10-K, as filed with the SEC on March 25, 2024.

 

Inflation and Changing Interest Rates

 

Inflation in the United States decreased from 6.4% as of December 31, 2022 to 3.4% as of December 31, 2023, which is still above the U.S. Federal Reserve's long-term target of 2.0%. Through the date of this Quarterly Report on Form 10-Q, inflation has further decreased to 3.0%. Although inflation is expected to continue to decrease in 2024, the continued higher inflationary conditions may have an adverse impact on our Manufacturing cost of sales along with Engineering, selling and administrative expenses, as these costs could increase at a rate higher than our revenue. The U.S. Federal Reserve raised the federal funds rate a total of four times throughout 2023, resulting in a range from 5.25% to 5.50% as of December 31, 2023. Through the date of this Quarterly Report on Form 10-Q, the Federal Reserve has maintained the federal funds rate in the same range as of December 31, 2023. It is expected that the U.S. Federal Reserve will continue to hold the federal funds rate steady or start to decrease it during 2024 to, among other things, control inflation; however, the timing of any such decrease remains unclear. As a result, we have increased the prices we charge our customers.

 

 

 

Results of Operations

 

Three months ended June 30, 2024 compared to three months ended June 30, 2023

The following table presents our Condensed Consolidated Statements of Operations for the periods indicated:

   

Three Months Ended June 30,

               

(in thousands)

 

2024

 

2023

 

$ Change

 

% Change

Revenues

  $ 11,808     $ 10,140     $ 1,668       16.4 %

Costs and expenses:

                               

Manufacturing cost of sales

    6,307       5,921       386       6.5 %

Engineering, selling and administrative

    3,394       2,654       740       27.9 %

Total costs and expenses

    9,701       8,575       1,126       13.1 %

Operating income

    2,107       1,565       542       34.6 %

Other income (expense):

                               

Interest income (expense), net

    44       (5 )     49       980.0 %

Other (expense) income, net

    (5 )     22       (27 )     -122.7 %

Total other income (expense), net

    39       17       22       129.4 %

Income before income taxes

    2,146       1,582       564       35.7 %

Income tax expense

    402       305       97       31.8 %

Net income

  $ 1,744     $ 1,277     $ 467       36.6 %

 

Total Revenues

Total revenues increased $1,668, or 16.4%, from $10,140 for the three months ended June 30, 2023 to $11,808 for the three months ended June 30, 2024 primarily due to continued strong defense program product and solution shipments.

 

Total Costs and Expenses

Total costs and expenses increased $1,126, or 13.1%, from $8,575 for the three months ended June 30, 2023 to $9,701 for the three months ended June 30, 2024. The increase is primarily due to a $740, or 27.9%, increase in Engineering, selling and administrative from $2,654 for the three months ended June 30, 2023 to $3,394 for the three months ended June 30, 2024 from higher research and development investment, higher sales commissions related to an increase in revenues, and an increase in administrative and corporate expenses consistent with the overall growth in the business.

 

Gross Margin

Gross margin (Revenues less Manufacturing cost of sales as a percentage of Revenues) increased 498 basis points from 41.6% for the three months ended June 30, 2023 to 46.6% for the three months ended June 30, 2024 reflecting higher revenues, improved production efficiencies due to previous investments, and an improved product mix to higher margin products.

 

Total Other Income (Expense), Net

Total Other income (expense), net increased $22, or 129.4%, from $17 for the three months ended June 30, 2023 to $39 for the three months ended June 30, 2024. The increase was primarily due to a $49, or 980.0%, increase in Interest income (expense), net from ($5) for the three months ended June 30, 2023 to $44 for the three months ended June 30, 2024 from higher interest income earned on investments in money market mutual funds. The increase was partially offset by a $27, or 122.7%, decrease in Other income (expense), net from $22 for the three months ended June 30, 2023 to ($5) for the three months ended June 30, 2024 primarily due to unfavorable currency movements.

 

Income Tax Expense

Income tax expense increased $97, or 31.8%, from $305 for the three months ended June 30, 2023 to $402 for the three months ended June 30, 2024 primarily due to the increase in Income before income taxes driven by the increase in revenues discussed above.

 

 

 

Six months ended June 30, 2024 compared to six months ended June 30, 2023

The following table presents our Condensed Consolidated Statements of Operations for the periods indicated:

   

Six Months Ended June 30,

               

(in thousands)

 

2024

 

2023

 

$ Change

 

% Change

Revenues

  $ 22,993     $ 19,507     $ 3,486       17.9 %

Costs and expenses:

                               

Manufacturing cost of sales

    12,713       12,092       621       5.1 %

Engineering, selling and administrative

    6,384       5,089       1,295       25.4 %

Total costs and expenses

    19,097       17,181       1,916       11.2 %

Operating income

    3,896       2,326       1,570       67.5 %

Other income (expense):

                               

Interest income (expense), net

    76       (7 )     83       1185.7 %

Other income (expense), net

    37       (18 )     55       305.6 %

Total other income (expense), net

    113       (25 )     138       552.0 %

Income before income taxes

    4,009       2,301       1,708       74.2 %

Income tax expense

    779       471       308       65.4 %

Net income

  $ 3,230     $ 1,830     $ 1,400       76.5 %

 

Total Revenues

Total revenues increased $3,486, or 17.9%, from $19,507 for the six months ended June 30, 2023 to $22,993 for the six months ended June 30, 2024 primarily due to continued strong defense program product and solution shipments.

 

Total Costs and Expenses

Total costs and expenses increased $1,916, or 11.2%, from $17,181 for the six months ended June 30, 2023 to $19,097 for the six months ended June 30, 2024. The increase is primarily due to a $1,295, or 25.4%, increase in Engineering, selling and administrative from $5,089 for the six months ended June 30, 2023 to $6,384 for the six months ended June 30, 2024 from higher research and development investment, higher sales commissions related to an increase in revenues, and an increase in administrative and corporate expenses consistent with the overall growth in the business.

 

Gross Margin

Gross margin (Revenues less Manufacturing cost of sales as a percentage of Revenues) increased 670 basis points from 38.0% for the six months ended June 30, 2023 to 44.7% for the six months ended June 30, 2024 reflecting higher revenues, improved production efficiencies due to previous investments, and an improved product mix to higher margin products.

 

Total Other Income (Expense), Net

Total Other income (expense), net increased $138, or 552.0%, from ($25) for the six months ended June 30, 2023 to $113 for the six months ended June 30, 2024.  The following items contributed to the overall increase:

 

a $83, or 1185.7%, increase in Interest income (expense), net from ($7) for the six months ended June 30, 2023 to $76 for the six months ended June 30, 2024 primarily due to interest income earned on investments in money market mutual funds.

 

a $55, or 305.6%, increase in Other income (expense), net from ($18) for the six months ended June 30, 2023 to $37 for the six months ended June 30, 2024 primarily due to favorable currency movements.

 

Income Tax Expense

Income tax expense increased $308, or 65.4%, from $471 for the six months ended June 30, 2023 to $779 for the six months ended June 30, 2024 primarily due to the increase in Income before income taxes driven by the increase in revenues discussed above.

 

Backlog

 

As of June 30, 2024, our order backlog was $45,322, a decrease of $2,509, or 5.2%, from $47,831 as of December 31, 2023 and a decrease of $6,269, or 12.2%, from $51,591 as of June 30, 2023. The decrease in backlog from December 31, 2023 reflects increased revenues along with the variability of our order intake due to the size and timing of large program-related orders.

 

 

 

Non-GAAP Financial Measures

 

To supplement our Condensed Consolidated Financial Statements presented on a GAAP basis, the Company presents its financial condition and results of operations in the way it believes will be most meaningful and representative of its business results. Some of the measurements the Company uses are "Non-GAAP financial measures" under SEC rules and regulations. The non-GAAP financial measures the Company presents are listed below and may not be comparable to similarly-named measures reported by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net earnings or diluted earnings per share prepared in accordance with GAAP.

 

The Company uses the following operating performance measure because the Company believes it provides both management and investors with a more complete understanding of the underlying operational results and trends and our marketplace performance:

 

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") is derived by excluding the items set forth below from Income before income taxes. Excluded items include the following:

 

Interest income

 

Interest expense

 

Depreciation

 

Amortization

 

Non-cash stock-based compensation

 

Other discrete items that might have a significant impact on comparable GAAP measures and could distort the evaluation of our normal operating performance.

 

Reconciliation of GAAP Income Before Income Taxes to Non-GAAP Adjusted EBITDA

The following table presents a reconciliation of income before income taxes to Adjusted EBITDA, a non-GAAP measure:

   

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except share data)

 

2024

 

2023

 

2024

 

2023

Income before income taxes

  $ 2,146     $ 1,582     $ 4,009     $ 2,301  

Adjustments:

                               

Interest expense (income)

    (44 )     5       (76 )     7  

Depreciation

    220       190       439       385  

Amortization

          14       5       27  

Total adjustments

    176       209       368       419  

EBITDA

    2,322       1,791       4,377       2,720  

Non-cash stock compensation

    201       140       408       211  

Excess Spin-off costs

                      28  

Adjusted EBITDA

  $ 2,523     $ 1,931     $ 4,785     $ 2,959  
                                 

Adjusted EBITDA per common share:

                               

Basic

  $ 0.92     $ 0.72     $ 1.76     $ 1.10  

Diluted

  $ 0.91     $ 0.71     $ 1.72     $ 1.09  
                                 

Weighted average shares outstanding:

                               

Basic

    2,728,599       2,697,696       2,723,293       2,688,065  

Diluted

    2,779,802       2,711,266       2,783,739       2,709,578  

 

Three months ended June 30, 2024 compared to three months ended June 30, 2023

Adjusted EBITDA increased $592 from $1,931 for the three months ended June 30, 2023 to $2,523 for the three months ended June 30, 2024 primarily due to increased gross margins; continued containment of operating expenses other than strategic investments in research and development, resulting in higher income before taxes; higher depreciation; and higher stock-based compensation partially offset by higher interest income.

 

Six months ended June 30, 2024 compared to six months ended June 30, 2023

Adjusted EBITDA increased $1,826 from $2,959 for the six months ended June 30, 2023 to $4,785 for the six months ended June 30, 2024 primarily due to increased gross margins; continued containment of operating expenses other than strategic investments in research and development, resulting in higher income before taxes; higher depreciation; and higher stock-based compensation partially offset by higher interest income.

 

 

 

Liquidity and Capital Resources

 

Overview

Liquidity refers to our ability to access sufficient sources of cash to meet the requirements of our operating, investing and financing activities.

 

Capital refers to our long-term financial resources available to support business operations and future growth.

 

Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of the business, timing of cash flows, general economic conditions and access to the capital markets and the other sources of liquidity and capital described herein.

 

As of June 30, 2024 and December 31, 2023, Cash and cash equivalents were $6,501 and $3,913, respectively.

 

Cash Flow Activity

The following table presents the cash flow activity for the periods indicated:

   

As of June 30,

(in thousands)

 

2024

 

2023

Cash and cash equivalents, beginning of period

  $ 3,913     $ 926  

Cash provided by operating activities

    3,456       779  

Cash used in investing activities

    (995 )     (302 )

Cash provided by financing activities

    127       (82 )

Net change in cash and cash equivalents

    2,588       395  

Cash and cash equivalents, end of period

  $ 6,501     $ 1,321  

 

Operating Activities

Cash provided by operating activities was $3,456 for the six months ended June 30, 2024 compared to cash provided by operating activities of $779 for the six months ended June 30, 2023, an increase of $2,677, primarily due to the following:

 

Net income increased $1,400 from $1,830 for the six months ended June 30, 2023 to $3,230 for the six months ended June 30, 2024.

 

Stock-based compensation increased $197 from $211 for the six months ended June 30, 2023 to $408 for the six months ended June 30, 2024.

 

Net change in operating assets and liabilities increased $1,176 from ($1,694) for the six months ended June 30, 2023 to ($518) for the six months ended June 30, 2024.

 

Our working capital metrics and ratios were as follows:

(in thousands)

 

June 30, 2024

 

December 31, 2023

Current assets

  $ 21,662     $ 18,187  

Less: Current liabilities

    4,713       4,384  

Working capital

  $ 16,949     $ 13,803  
                 

Current ratio

    4.6       4.1  

 

Management continues to focus on efficiently managing working capital requirements to match operating activity levels and will seek to deploy the Company’s working capital where it will generate the greatest returns.

 

Investing Activities

Cash used in investing activities was $995 for the six months ended June 30, 2024 compared to cash used in investing activities of $302 for the six months ended June 30, 2023, an increase of $693, primarily due to the purchase of equipment to support growth, next generation product development, and operational efficiencies during the six months ended June 30, 2024.

 

Financing Activities

Cash provided by financing activities was $127 for the six months ended June 30, 2024 compared to cash used in financing activities of $82 for the six months ended June 30, 2023, an increase of $209, primarily due to the exercise of stock options by an executive officer.

 

 

 

Capital Resources

 

We believe that existing cash and cash equivalents, marketable securities and cash generated from operations will provide sufficient liquidity to meet our ongoing working capital and capital expenditure requirements for the next 12 months from the date of this filing. At various times throughout the year and as of June 30, 2024 and December 31, 2023, some deposits held at financial institutions were in excess of federally insured limits. The Company has not experienced any losses related to these balances.

 

Our Board of Directors has adhered to a practice of not paying cash dividends. This policy takes into account our long-term growth objectives, including our anticipated investments for organic growth, potential acquisitions and stockholders' desire for capital appreciation of their holdings.

 

Revolving Line of Credit

 

On June 15, 2022, the Company entered into a loan agreement (the “Loan Agreement”) for a revolving line of credit with Fifth Third Bank, National Association ("Fifth Third Bank"), for up to $5,000 bearing interest at the Secured Overnight Financing Rate ("SOFR") plus a margin of 2.25%, with a SOFR floor of 0.00%. The Loan Agreement has a maturity date of June 15, 2025 and contains various affirmative and negative covenants that are customary for lines of credit and transactions of this type, including limitations on the incurrence of debt and liabilities, as well as financial reporting requirements. The Loan Agreement also imposes certain financial covenants based on Debt Service Coverage Ratio, Current Ratio, and the Ratio of Total Liabilities to Total Net Worth (as such terms are defined in the Loan Agreement). All loans pursuant to the Loan Agreement are secured by a continuing and unconditional first priority security interest in and to any and all property of the Company.

 

As of June 30, 2024 and December 31, 2023, there were no outstanding borrowings under the revolving line of credit with Fifth Third Bank.

 

Critical Accounting Estimates

 

The preparation of financial statements in conformity with U.S. GAAP requires management to adopt accounting policies related to estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, management evaluates its accounting policies, estimates and judgments, including those related to income taxes and inventories. Management bases its estimates and judgments on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

 

There have been no material changes to the critical accounting estimates disclosed in our Annual Report on Form 10-K, as filed with the SEC on March 25, 2024.

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable.

 

Item 4.

Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures 

 

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934, as amended (the "Exchange Act") is recorded, processed, summarized and reported within the time periods specified in the rules and forms, and that such information is accumulated and communicated to us, including our Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

As required by Rules 13a-15(b) and 15d-15(b) of the Exchange Act, an evaluation as of June 30, 2024 was conducted under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures, as of June 30, 2024, were effective.

 

Changes in Internal Control Over Financial Reporting

 

There were no changes in the Company’s internal control over financial reporting during the quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

 

PART II

 

OTHER INFORMATION

 

Item 1.

Legal Proceedings

 

In the ordinary course of business, we may become subject to litigation or claims. We are not aware of any material pending legal proceedings, other than ordinary routine litigation incidental to our business, to which we or any of our subsidiaries are a party or to which our or their properties are subject.

 

 

Item 5.

Other Information

 

During the three months ended June 30, 2024, none of our directors or officers, as defined in Section 16 of the Exchange Act, adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408 of Regulation S-K of the Exchange Act.

 

 

Item 6.

Exhibits

 

The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024 (and are numbered in accordance with Item 601 of Regulation S-K):

 

Exhibit No.

 

Description

2.1

 

Amended and Restated Separation and Distribution Agreement by and between The LGL Group, Inc. and M-tron Industries, Inc. (incorporated by reference to Exhibit 2.1 to Amendment No. 4 to the Company’s Registration Statement on Form 10 filed with the SEC on August 19, 2022)

     

3.1

 

Amended and Restated Certificate of Incorporation of M-tron Industries, Inc. (incorporated by reference to Exhibit 3.1 to Amendment No. 3 to the Company’s Registration Statement on Form 10 filed with the SEC on August 3, 2022)

     

3.2

 

Amended and Restated Bylaws of M-tron Industries, Inc. (incorporated by reference to Exhibit 3.2 to Amendment No. 3 to the Company’s Registration Statement on Form 10 filed with the SEC on August 3, 2022)

     

4.1

 

Amended and Restated 2022 Incentive Plan of M-tron Industries, Inc. (incorporated by reference to Exhibit 4.1 to Amendment No. 4 to the Company’s Registration Statement on Form 10 filed with the SEC on August 19, 2022)

     

31.1*

 

Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

     

31.2*

 

Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

     

32.1**

 

Certification of the Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

     

32.2**

 

Certification of the Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

     

101.INS*

 

Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

     

101.SCH*

 

Inline XBRL Taxonomy Extension Schema Document

     

101.CAL*

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document

     

101.DEF*

 

Inline XBRL Taxonomy Extension Definition Linkbase Document

     

101.LAB*

 

Inline XBRL Taxonomy Extension Label Linkbase Document

     

101.PRE*

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document

     

104*

 

The cover page for the Company’s Quarterly Report on Form 10-Q has been formatted in Inline XBRL and contained in Exhibit 101

 

* Filed herewith

 

** In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

   

M-TRON INDUSTRIES, INC.

    (Registrant)
     

Date:          August 14, 2024

 

By:

/s/ Michael J. Ferrantino, Jr.

     

Michael J. Ferrantino, Jr.

     

Chief Executive Officer

(Principal Executive Officer)

       
       

Date:          August 14, 2024

 

By:

/s/ Linda M. Biles

     

Linda M. Biles

     

Executive Vice President - Finance

(Principal Financial Officer)

 

20

EXHIBIT 31.1

 

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Michael J. Ferrantino, Jr., certify that:

 

1.

I have reviewed this quarterly report on Form 10-Q of M-tron Industries, Inc. for the quarterly period ended June 30, 2024;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

August 14, 2024

/s/ Michael J. Ferrantino, Jr.

 

Name:

Michael J. Ferrantino, Jr.

 

Title:

Chief Executive Officer

(Principal Executive Officer)

 

 

EXHIBIT 31.2

 

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Linda M. Biles, certify that:

 

1.

I have reviewed this quarterly report on Form 10-Q of M-tron Industries, Inc. for the quarterly period ended June 30, 2024;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

August 14, 2024

/s/ Linda M. Biles

 

Name:

Linda M. Biles

 

Title:

Executive Vice President - Finance

(Principal Financial Officer)

 

 

EXHIBIT 32.1

 

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the quarterly report of M-tron Industries, Inc. (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael J. Ferrantino, Jr., Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

 

 

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

 

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

August 14, 2024

/s/ Michael J. Ferrantino, Jr.

 

Name:

Michael J. Ferrantino, Jr.

 

Title:

Chief Executive Officer

(Principal Executive Officer)

 

 

EXHIBIT 32.2

 

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the quarterly report of M-tron Industries, Inc. (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Linda M. Biles, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

 

 

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

 

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

August 14, 2024

/s/ Linda M. Biles

 

Name:

Linda M. Biles

 

Title:

Executive Vice President - Finance

(Principal Financial Officer)

 

 
v3.24.2.u1
Document And Entity Information - shares
6 Months Ended
Jun. 30, 2024
Jul. 31, 2024
Document Information [Line Items]    
Entity Central Index Key 0001902314  
Entity Registrant Name M-tron Industries, Inc.  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2024  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2024  
Document Transition Report false  
Entity File Number 001-41391  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 46-0457944  
Entity Address, Address Line One 2525 Shader Rd.  
Entity Address, City or Town Orlando  
Entity Address, State or Province FL  
Entity Address, Postal Zip Code 32804  
City Area Code 407  
Local Phone Number 298-2000  
Title of 12(b) Security Common Stock, par value $0.01  
Trading Symbol MPTI  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   2,808,579
v3.24.2.u1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Revenues $ 11,808 $ 10,140 $ 22,993 $ 19,507
Costs and expenses:        
Manufacturing cost of sales 6,307 5,921 12,713 12,092
Engineering, selling and administrative 3,394 2,654 6,384 5,089
Total costs and expenses 9,701 8,575 19,097 17,181
Operating income 2,107 1,565 3,896 2,326
Other income (expense):        
Interest income (expense), net 44 (5) 76 (7)
Other (expense) income, net (5) 22 37 (18)
Total other income (expense), net 39 17 113 (25)
Income before income taxes 2,146 1,582 4,009 2,301
Income tax expense 402 305 779 471
Net income $ 1,744 $ 1,277 $ 3,230 $ 1,830
Income per common share:        
Basic (in dollars per share) $ 0.64 $ 0.47 $ 1.19 $ 0.68
Diluted (in dollars per share) $ 0.63 $ 0.47 $ 1.16 $ 0.68
Weighted average shares outstanding:        
Basic (in shares) 2,728,599 2,697,696 2,723,293 2,688,065
Diluted (in shares) 2,779,802 2,711,266 2,783,739 2,709,578
v3.24.2.u1
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Cash and cash equivalents $ 6,501 $ 3,913
Accounts receivable, net of reserves of $163 and $141, respectively 5,180 4,802
Inventories, net 9,341 8,884
Prepaid expenses and other current assets 640 588
Total current assets 21,662 18,187
Property, plant and equipment, net 4,687 4,131
Right-of-use lease asset 43 97
Intangible assets, net 40 45
Deferred income tax asset 1,943 1,835
Other assets 7 10
Total assets 28,382 24,305
Current liabilities:    
Accounts payable 1,442 1,300
Accrued compensation and commissions 2,286 2,196
Other accrued expenses 985 611
Income taxes payable 0 277
Total current liabilities 4,713 4,384
Long-term lease liability 9 26
Total liabilities 4,722 4,410
Commitments and Contingencies (Note 8)
Stockholders' equity:    
Preferred stock ($0.01 par value; 5,000,000 shares authorized, none issued) 0 0
Common stock ($0.01 par value; 25,000,000 shares authorized; 2,808,579 and 2,786,321 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively) 27 27
Additional paid-in capital 16,702 16,167
Retained earnings 6,931 3,701
Total stockholders' equity 23,660 19,895
Total liabilities and stockholders' equity $ 28,382 $ 24,305
v3.24.2.u1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Accounts receivable, reserves $ 163 $ 141
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 5,000,000 5,000,000
Preferred stock, shares issued (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 25,000,000 25,000,000
Common stock, shares issued (in shares) 2,808,579 2,786,321
Common stock, shares outstanding (in shares) 2,808,579 2,786,321
v3.24.2.u1
Condensed Consolidated Statements of Stockholders Equity (Unaudited) - USD ($)
$ in Thousands
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total
Balance at Dec. 31, 2022 $ 0 $ 27 $ 14,102 $ 212 $ 14,341
Net income 0 0 0 1,830 1,830
Adjustment to The LGL Group, Inc. transfer 0 0 (219) 0 (219)
Stock-based compensation expense 0 0 211 0 211
Exercise of stock options 0 0 0 0 0
Forfeiture of shares to pay taxes 0 0 (82) 0 (82)
Balance at Jun. 30, 2023 0 27 14,012 2,042 16,081
Balance at Mar. 31, 2023 0 27 13,954 765 14,746
Net income 0 0 0 1,277 1,277
Adjustment to The LGL Group, Inc. transfer 0 0 0 0 0
Stock-based compensation expense 0 0 140 0 140
Exercise of stock options 0 0 0 0 0
Forfeiture of shares to pay taxes 0 0 (82) 0 (82)
Balance at Jun. 30, 2023 0 27 14,012 2,042 16,081
Balance at Dec. 31, 2023 0 27 16,167 3,701 19,895
Net income 0 0 0 3,230 3,230
Adjustment to The LGL Group, Inc. transfer 0 0 0 0 0
Stock-based compensation expense 0 0 408 0 408
Exercise of stock options 0 0 127 0 127
Forfeiture of shares to pay taxes 0 0 0 0 0
Balance at Jun. 30, 2024 0 27 16,702 6,931 23,660
Balance at Mar. 31, 2024 0 27 16,501 5,187 21,715
Net income 0 0 0 1,744 1,744
Adjustment to The LGL Group, Inc. transfer 0 0 0 0 0
Stock-based compensation expense 0 0 201 0 201
Exercise of stock options 0 0 0 0 0
Forfeiture of shares to pay taxes 0 0 0 0 0
Balance at Jun. 30, 2024 $ 0 $ 27 $ 16,702 $ 6,931 $ 23,660
v3.24.2.u1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Cash flows from operating activities:    
Net income $ 3,230 $ 1,830
Depreciation 439 385
Amortization of finite-lived intangible assets 5 27
Stock-based compensation expense 408 211
Deferred income tax provision (108) 20
Changes in operating assets and liabilities:    
Increase in accounts receivable, net (378) (548)
Increase in inventories, net (457) (1,195)
(Increase) decrease in prepaid expenses and other assets (49) 349
Decrease (increase) in accounts payable, accrued compensation and commissions expense and other 366 (300)
Total adjustments 226 (1,051)
Net cash provided by operating activities 3,456 779
Cash flows from investing activities:    
Capital expenditures (995) (302)
Net cash used in investing activities (995) (302)
Cash flows from financing activities:    
Forfeiture of shares to pay taxes 0 (82)
Proceeds from stock option exercise 127 0
Net cash provided by (used in) financing activities 127 (82)
Increase in cash and cash equivalents 2,588 395
Cash and cash equivalents at beginning of period 3,913 926
Cash and cash equivalents at end of period 6,501 1,321
Supplemental Disclosure:    
Cash paid for interest 5 7
Cash paid for income taxes $ 1,275 $ 97
v3.24.2.u1
Note 1 - Background and Description of Business
6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

1.     Background and Description of Business

 

Originally founded in 1965, M-tron Industries, Inc. (the "Company," "MtronPTI," "we," "us," or "our") is engaged in the designing, manufacturing and marketing of highly engineered, high reliability frequency and spectrum control products used to control the frequency or timing of signals in electronic circuits in various applications. MtronPTI’s primary markets are defense, aerospace, space, and avionics.

 

Our component-level devices and modules are used extensively in electronic systems for applications in commercial and military defense, aerospace, satellites, down-hole drilling, medical devices, instrumentation, industrial devices and in infrastructure equipment for the telecommunications and network equipment industries. As an engineering-centric company, MtronPTI provides close support to the customer throughout its products' entire life cycle, including product design, prototyping, production and subsequent product upgrades and maintenance. This collaborative approach has resulted in the development and growth of long-standing business relationships with its blue-chip customer base.

 

The Company offers a wide range of precision frequency control and spectrum control solutions including: radio frequency, microwave and millimeter wave filters; cavity, crystal, ceramic, lumped element and switched filters; high performance and high frequency oven-controlled crystal oscillators ("OCXO"), integrated phase-locked loops OCXOs, temperature-compensated crystal oscillators, voltage-controlled crystal oscillators, low jitter and harsh environment oscillators; crystal resonators, Integrated Microwave Assemblies ("IMA"); and state-of-the-art solid state power amplifier products.

 

The Company has manufacturing facilities in Orlando, Florida; Yankton, South Dakota; and Noida, India. The Company also has a sales office in Hong Kong. All of MtronPTI’s production facilities are International Organization for Standardization ("ISO") 9001:2015 certified (the international standard for creating a quality management system) and Restriction of Hazardous Substances ("RoHS") compliant. In addition, its U.S. production facilities in Orlando and Yankton are International Traffic in Arms Regulations ("ITAR") registered and International Aerospace Quality Group AS9100 Rev D certified and our Yankton production facility is Military Standard ("MIL-STD")-790 certified.

 

We maintain our executive offices at 2525 Shader Road, Orlando, Florida 32804. Our telephone number is (407) 298-2000. Our Internet address is www.mtronpti.com. Our common stock is traded on the NYSE American under the symbol "MPTI".

v3.24.2.u1
Note 2 - Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Significant Accounting Policies [Text Block]

2.     Summary of Significant Accounting Policies

 

During the three and six months ended June 30, 2024, there were no material changes to our significant accounting policies included in our Annual Report on Form 10-K for the year ended  December 31, 2023 (the "2023 Annual Report") filed with the Securities and Exchange Commission (the "SEC") on March 25, 2024. For additional information, refer to Note B to the audited Consolidated and Combined Financial Statements in the 2023 Annual Report.

 

Basis of Presentation

 

These unaudited Condensed Consolidated Financial Statements do not include all disclosures that are normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and should be read in conjunction with the audited Consolidated and Combined Financial Statements and the related notes included in the 2023 Annual Report. The consolidated financial information as of  December 31, 2023 included herein has been derived from the audited Consolidated and Combined Financial Statements in the 2023 Annual Report.

 

In the opinion of management, these Condensed Consolidated Financial Statements contain all adjustments (consisting of normal recurring adjustments, including eliminations of material intercompany accounts and transactions) considered necessary for a fair statement of the results presented herein. Operating results for the three months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024.

 

Use of Estimates

 

The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

 

 

Research and Development Costs

 

Research and development costs are charged to operations as incurred. For the three and six months ended June 30, 2024, research and development costs were approximately $682 and $1,315, respectively. For the three and six months ended June 30, 2023, research and development costs were approximately $535 and $1,064. Such costs are included within Engineering, selling and administrative expenses on the Condensed Consolidated Statements of Operations.

 

Concentration Risks

 

For the three months ended June 30, 2024, the Company's largest and second largest customers accounted for $4,452, or 37.7%, and $2,216, or 18.8%, of the Company's Revenues, respectively. For the three months ended June 30, 2023, the Company's largest and second largest customers accounted for $2,723, or 26.9%, and $1,662, or 16.4%, of the Company’s Revenues, respectively.

 

For the six months ended June 30, 2024, the Company's largest and second largest customers accounted for $9,327, or 40.6%, and $4,419, or 19.2%, of the Company's Revenues, respectively. For the six months ended June 30, 2023, the Company's largest and second largest customers accounted for $5,057, or 25.9%, and $2,671, or 13.7%, of the Company's Revenues, respectively.

 

A significant portion of the Company's accounts receivable is concentrated with a relatively small number of customers. As of  June 30, 2024, the Company's four largest customers accounted for approximately $2,972, or 55.6%, of gross accounts receivable. As of December 31, 2023, four of the Company's largest customers accounted for approximately $3,774, or 76.4%, of gross accounts receivable. The Company carefully evaluates the creditworthiness of its customers in deciding to extend credit. As a result, the Company has experienced very low historical bad debt expense and believes the related risk to be minimal.

 

Impairments of Long-Lived Assets

 

Long-lived assets, including intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Long-lived assets are grouped with other assets to the lowest level to which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Management assesses the recoverability of the carrying cost of the assets based on a review of projected undiscounted cash flows. If an asset is held for sale, management reviews its estimated fair value less cost to sell. Fair value is determined using pertinent market information, including appraisals or broker's estimates, and/or projected discounted cash flows. In the event an impairment loss is identified, it is recognized based on the amount by which the carrying value exceeds the estimated fair value of the long-lived asset.

 

We performed an assessment to determine if there were any indicators of impairment as of  June 30, 2024 and December 31, 2023. We concluded that, while there were events and circumstances in the macro-environment that did impact us, we did not experience any entity-specific indicators of asset impairment and no triggering events occurred.

 

Future Application of Accounting Standards

 

Segment Reporting

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), to address improvements to reportable segment disclosures. The standard primarily requires the following disclosure on an annual and interim basis: (i) significant segment expenses that are regularly provided to chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss; and (ii) other segment items and description of its composition. The standard also requires current annual disclosures about a reportable segment's profits or losses and assets to be disclosed in interim periods and the title and position of the CODM with an explanation of how the CODM uses the report measure(s) of segment profits or losses in assessing segment performance. The provisions of the standard are effective for public companies for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The standard is applied retrospectively to all prior periods presented. We are assessing the impact of this standard.

 

Income Taxes

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures" ("ASU 2023-09"). The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid. The provisions of the standard are effective for public companies for fiscal years beginning after December 15, 2024, with early adoption permitted. This standard applies prospectively; however, retrospective application is permitted. We are assessing the impact of this standard.

 

v3.24.2.u1
Note 3 - Related Party Transactions
6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

3.     Related Party Transactions

 

In the normal course of business, the Company enters into various transactions with affiliated companies. Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operating decisions.

 

The following tables summarize income and expenses from transactions with related parties for the three and six months ended June 30, 2024 and 2023:

  

Three Months Ended June 30,

  

2024

 

2023

  

Income

 

Expense

 

Income

 

Expense

GAMCO Investors, Inc.

 $45  $  $  $ 

The LGL Group, Inc.

  12   27   12    

Total

 $57  $27  $12  $ 

 

  

Six Months Ended June 30,

  

2024

 

2023

  

Income

 

Expense

 

Income

 

Expense

GAMCO Investors, Inc.

 $79  $  $  $ 

The LGL Group, Inc.

  24   53   24   28 

Total

 $103  $53  $24  $28 

 

The following table summarizes assets and liabilities with related parties as of  June 30, 2024 and December 31, 2023:

  

June 30, 2024

 

December 31, 2023

  

Assets

 

Liabilities

 

Assets

 

Liabilities

GAMCO Investors, Inc.

 $4,844  $  $2,765  $ 

The LGL Group, Inc.

  74          

Total

 $4,918  $  $2,765  $ 

 

The material agreements whereby the Company generates revenues and expenses with affiliated entities are discussed below:

 

Investment Activity with GAMCO Investors, Inc.

 

Certain balances are held and invested in U.S. Treasury funds managed or advised by GAMCO Investors, Inc. or one of its subsidiaries (collectively, "GAMCO" or the "Fund Manager"), which is related to the Company through certain of our shareholders. For the three and six months ended June 30, 2024, the Company paid the Fund Manager a fund management fee of approximately 8 basis points annually of the asset balances under management. For the three and six months ended June 30, 2023, the Company did not pay the Fund Manager a fund management fee as no assets were under management. The fund management fees are not paid directly by the Company and are deducted prior to the fund striking its net asset value ("NAV").

 

As of  June 30, 2024 and December 31, 2023, the balance with the Fund Manager was $4,844 and $2,765, respectively, all of which was classified within Cash and cash equivalents on the Condensed Consolidated Balance Sheets.

 

For the three and six months ended June 30, 2024, the Company earned income on its investments with the Fund Manager totaling $45 and $79, respectively, all of which was included in Interest income on the Condensed Consolidated Statements of Operations.

 

For the three and six months ended June 30, 2023, the Company did not earn any income on its investments with the Fund Manager.

 

Transactions with The LGL Group, Inc.

 

Transitional Administrative and Management Services Agreement

On October 7, 2022, the separation of the MtronPTI business from The LGL Group, Inc. ("LGL Group") was completed (the "Separation") and the Company became an independent, publicly traded company trading on the NYSE American under the stock symbol "MPTI." The Separation was completed through LGL Group's distribution (the "Distribution") of 100% of the shares of the Company's common stock to holders of LGL Group's common stock as of the close of business on September 30, 2022, the record date for the Distribution. 

 

MtronPTI and The LGL Group, Inc. ("LGL Group") entered into an Amended and Restated Transitional Administrative and Management Services Agreement ("MtronPTI TSA"), which sets out the terms for services to be provided between the two companies post Separation. The current terms result in a net monthly payment of $4 per month from LGL Group to MtronPTI.

 

For the three months ended June 30, 2024 and 2023, LGL Group paid the Company $12 under the terms of the MtronPTI TSA, which were recorded in Other income (expense), net on the Condensed Consolidated Statements of Operations. For the six months ended June 30, 2024 and 2023, LGL Group paid the Company $24 under the terms of the MtronPTI TSA, which were recorded in Other income (expense), net on the Condensed Consolidated Statements of Operations.

 

 

Tax Indemnity and Sharing Agreement

MtronPTI and LGL Group entered into a Tax Indemnity and Sharing Agreement ("MtronPTI Tax Agreement"), which sets out the terms for which party would be responsible for taxes imposed on LGL Group if the Distribution, together with certain related transactions, were to fail to qualify as a tax-free transaction under Internal Revenue Code ("IRC") Sections 355 and 368(a)(1)(D) if such failure were the result of actions taken after the Distribution by MtronPTI or LGL Group.

 

For the three and six months ended June 30, 2024 and 2023, no taxes related to the Distribution have been recorded in the Condensed Consolidated Financial Statements.

 

Other Transactions

MtronPTI and LGL Group agreed to share the salaries and benefits related to certain employees incurred by LGL Group. For the three and six months ended June 30, 2024, the Company reimbursed LGL Group $27 and $53, respectively, of the salaries and benefits of certain employees, which represents 50% of those costs and were recorded in Engineering, selling and administrative on the Condensed Consolidated Statements of Operations.

v3.24.2.u1
Note 4 - Income Taxes
6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

4.     Income Taxes

 

The Company’s quarterly provision for income taxes is measured using an annual effective tax rate, adjusted for discrete items within the period presented. To determine the annual effective tax rate, the Company estimates both the total income (loss) before income taxes for the full year and the jurisdictions in which that income (loss) is subject to tax. The actual effective tax rate for the full year may differ from these estimates if income (loss) before income taxes is greater than or less than what was estimated or if the allocation of income (loss) to jurisdictions in which it is taxed is different from the estimated allocations.

 

The effective tax rate for the three months ended June 30, 2024 and 2023 was 18.7% and 19.3%, respectively. The effective tax rate for the six months ended June 30, 2024 and 2023 was 19.4% and 20.5%, respectively. Differences between the Company’s effective income tax rate and the U.S. federal statutory rate of 21.0% are primarily due to the impact of research and development credits, permanent differences, and state taxes.

v3.24.2.u1
Note 5 - Revolving Credit Agreement
6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Debt Disclosure [Text Block]

5.     Revolving Credit Agreement

 

On June 15, 2022, MtronPTI entered into a loan agreement (the “Loan Agreement”) for a revolving line of credit with Fifth Third Bank, National Association (“Fifth Third Bank”), for up to $5,000 bearing interest at the Secured Overnight Financing Rate (“SOFR”) plus a margin of 2.25%, with a SOFR floor of 0.00%. The Loan Agreement has a maturity date of June 15, 2025 and contains various affirmative and negative covenants that are customary for lines of credit and transactions of this type, including limitations on the incurrence of debt and liabilities, as well as financial reporting requirements. The Loan Agreement also imposes certain financial covenants based on Debt Service Coverage Ratio, Current Ratio, and the Ratio of Total Liabilities to Total Net Worth (as such terms are defined in the Loan Agreement). All loans pursuant to the Loan Agreement will be secured by a continuing and unconditional first priority security interest in and to any and all property of the Company.

 

As of  June 30, 2024 and December 31, 2023, there were no outstanding borrowings under the revolving line of credit with Fifth Third Bank.

v3.24.2.u1
Note 6 - Stockholders' Equity
6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Shareholders' Equity and Share-Based Payments [Text Block]

6.     Stockholders' Equity

 

Shares Outstanding

 

The following table presents a rollforward of outstanding shares for the periods indicated:

  

Six Months Ended June 30, 2024

 

Year Ended December 31, 2023

  

Common Stock Issued

 

Held in Treasury

 

Common Stock Outstanding

 

Common Stock Issued

 

Held in Treasury

 

Common Stock Outstanding

Shares, beginning of period

  2,786,321      2,786,321   2,725,670      2,725,670 

Stock-based compensation

  12,548      12,548   69,597      69,597 

Exercise of stock options

  9,710      9,710          

Shares withheld for income taxes

           (8,946)     (8,946)

Shares, end of period

  2,808,579      2,808,579   2,786,321      2,786,321 

 

v3.24.2.u1
Note 7 - Earnings per Share ("EPS")
6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Earnings Per Share [Text Block]

7.     Earnings per Share ("EPS")

 

The following table presents a reconciliation of Net income and shares used in calculating basic and diluted net income per common share for the periods indicated:

  

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except share data)

 

2024

 

2023

 

2024

 

2023

Numerator for EPS:

                

Net income

 $1,744  $1,277  $3,230  $1,830 
                 

Denominator for EPS:

                

Weighted average shares outstanding - basic

  2,728,599   2,697,696   2,723,293   2,688,065 

Dilutive effects:

                

Stock options

        107    

Restricted stock

  51,203   13,570   60,339   21,513 

Weighted average shares outstanding - diluted

  2,779,802   2,711,266   2,783,739   2,709,578 
                 

Income per common share:

                

Basic

 $0.64  $0.47  $1.19  $0.68 

Diluted

 $0.63  $0.47  $1.16  $0.68 

 

v3.24.2.u1
Note 8 - Commitments and Contingencies
6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

8.     Commitments and Contingencies

 

In the ordinary course of business, the Company and its subsidiaries may become defendants in certain product liability, patent infringement, worker claims and other litigation. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. The Company has no legal accrual for contingencies as of June 30, 2024.

v3.24.2.u1
Note 9 - Other Financial Statement Information
6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Additional Financial Information Disclosure [Text Block]

9.     Other Financial Statement Information

 

Inventories, Net

 

Inventories are valued at the lower of cost or net realizable value using the first-in, first-out ("FIFO") method. The Company reduces the value of its inventories to net realizable value when the net realizable value is believed to be less than the cost of the item.

 

The components of inventory as of  June 30, 2024 and December 31, 2023 are summarized below:

  

June 30, 2024

 

December 31, 2023

Raw materials

 $4,504  $4,368 

Work in process

  4,484   4,150 

Finished goods

  1,756   1,634 

Total gross inventory

  10,744   10,152 

Reserve for excess and obsolete inventory

  (1,403)  (1,268)

Inventories, net

 $9,341  $8,884 

 

Property, Plant and Equipment, Net

 

The components of property, plant and equipment as of  June 30, 2024 and December 31, 2023 are summarized below:

  

June 30, 2024

 

December 31, 2023

Land

 $536  $536 

Buildings and improvements

  5,321   5,216 

Machinery and equipment

  20,936   20,046 

Gross property, plant and equipment

  26,793   25,798 

Less: Accumulated depreciation

  (22,106)  (21,667)

Property, plant and equipment, net

 $4,687  $4,131 

 

Intangible Assets, Net

 

The components of intangible assets as of  June 30, 2024 and December 31, 2023 are summarized below:

  

June 30, 2024

 

December 31, 2023

Intellectual property

 $1,226  $1,226 

Goodwill

  40   40 

Gross intangible assets

  1,266   1,266 

Less: Accumulated amortization

  (1,226)  (1,221)

Intangible assets, net

 $40  $45 

 

v3.24.2.u1
Note 10 - Domestic and Foreign Revenues
6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

10.     Domestic and Foreign Revenues

     

Significant foreign revenues from operations (10% or more of foreign sales) for the three and six months ended June 30, 2024 and 2023 were as follows:

  

Three Months Ended June 30,

 

Six Months Ended June 30,

  

2024

 

2023

 

2024

 

2023

Malaysia

 $1,426  $1,581  $2,308  $3,160 

Australia

  645   386   1,419   593 

Greece

     264   388   408 

Hungary

           496 

All other foreign countries

  712   865   1,338   1,582 

Total foreign revenues

 $2,783  $3,096  $5,453  $6,239 

Total domestic revenues

 $9,025  $7,044  $17,540  $13,268 

 

The Company allocates its foreign revenue based on the customer's ship-to location.

v3.24.2.u1
Note 11 - Subsequent Events
6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Subsequent Events [Text Block]

11.     Subsequent Events

 

The Company has evaluated events and transactions that occurred after the balance sheet date through the date that the consolidated financial statements were issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the consolidated financial statements.

v3.24.2.u1
Insider Trading Arrangements
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2024
Insider Trading Arr Line Items    
Material Terms of Trading Arrangement [Text Block]  

Item 5.

Other Information

 

During the three months ended June 30, 2024, none of our directors or officers, as defined in Section 16 of the Exchange Act, adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408 of Regulation S-K of the Exchange Act.

Rule 10b5-1 Arrangement Adopted [Flag] false  
Non-Rule 10b5-1 Arrangement Adopted [Flag] false  
Rule 10b5-1 Arrangement Terminated [Flag] false  
Non-Rule 10b5-1 Arrangement Terminated [Flag] false  
v3.24.2.u1
Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

 

These unaudited Condensed Consolidated Financial Statements do not include all disclosures that are normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and should be read in conjunction with the audited Consolidated and Combined Financial Statements and the related notes included in the 2023 Annual Report. The consolidated financial information as of  December 31, 2023 included herein has been derived from the audited Consolidated and Combined Financial Statements in the 2023 Annual Report.

 

In the opinion of management, these Condensed Consolidated Financial Statements contain all adjustments (consisting of normal recurring adjustments, including eliminations of material intercompany accounts and transactions) considered necessary for a fair statement of the results presented herein. Operating results for the three months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024.

 

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

 

The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

 

Research and Development Expense, Policy [Policy Text Block]

Research and Development Costs

 

Research and development costs are charged to operations as incurred. For the three and six months ended June 30, 2024, research and development costs were approximately $682 and $1,315, respectively. For the three and six months ended June 30, 2023, research and development costs were approximately $535 and $1,064. Such costs are included within Engineering, selling and administrative expenses on the Condensed Consolidated Statements of Operations.

 

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration Risks

 

For the three months ended June 30, 2024, the Company's largest and second largest customers accounted for $4,452, or 37.7%, and $2,216, or 18.8%, of the Company's Revenues, respectively. For the three months ended June 30, 2023, the Company's largest and second largest customers accounted for $2,723, or 26.9%, and $1,662, or 16.4%, of the Company’s Revenues, respectively.

 

For the six months ended June 30, 2024, the Company's largest and second largest customers accounted for $9,327, or 40.6%, and $4,419, or 19.2%, of the Company's Revenues, respectively. For the six months ended June 30, 2023, the Company's largest and second largest customers accounted for $5,057, or 25.9%, and $2,671, or 13.7%, of the Company's Revenues, respectively.

 

A significant portion of the Company's accounts receivable is concentrated with a relatively small number of customers. As of  June 30, 2024, the Company's four largest customers accounted for approximately $2,972, or 55.6%, of gross accounts receivable. As of December 31, 2023, four of the Company's largest customers accounted for approximately $3,774, or 76.4%, of gross accounts receivable. The Company carefully evaluates the creditworthiness of its customers in deciding to extend credit. As a result, the Company has experienced very low historical bad debt expense and believes the related risk to be minimal.

 

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairments of Long-Lived Assets

 

Long-lived assets, including intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Long-lived assets are grouped with other assets to the lowest level to which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Management assesses the recoverability of the carrying cost of the assets based on a review of projected undiscounted cash flows. If an asset is held for sale, management reviews its estimated fair value less cost to sell. Fair value is determined using pertinent market information, including appraisals or broker's estimates, and/or projected discounted cash flows. In the event an impairment loss is identified, it is recognized based on the amount by which the carrying value exceeds the estimated fair value of the long-lived asset.

 

We performed an assessment to determine if there were any indicators of impairment as of  June 30, 2024 and December 31, 2023. We concluded that, while there were events and circumstances in the macro-environment that did impact us, we did not experience any entity-specific indicators of asset impairment and no triggering events occurred.

 

New Accounting Pronouncements, Policy [Policy Text Block]

Future Application of Accounting Standards

 

Segment Reporting

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), to address improvements to reportable segment disclosures. The standard primarily requires the following disclosure on an annual and interim basis: (i) significant segment expenses that are regularly provided to chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss; and (ii) other segment items and description of its composition. The standard also requires current annual disclosures about a reportable segment's profits or losses and assets to be disclosed in interim periods and the title and position of the CODM with an explanation of how the CODM uses the report measure(s) of segment profits or losses in assessing segment performance. The provisions of the standard are effective for public companies for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The standard is applied retrospectively to all prior periods presented. We are assessing the impact of this standard.

 

Income Taxes

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures" ("ASU 2023-09"). The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid. The provisions of the standard are effective for public companies for fiscal years beginning after December 15, 2024, with early adoption permitted. This standard applies prospectively; however, retrospective application is permitted. We are assessing the impact of this standard.

 

v3.24.2.u1
Note 3 - Related Party Transactions (Tables)
6 Months Ended
Jun. 30, 2024
Notes Tables  
Schedule of Related Party Transactions [Table Text Block]
  

Three Months Ended June 30,

  

2024

 

2023

  

Income

 

Expense

 

Income

 

Expense

GAMCO Investors, Inc.

 $45  $  $  $ 

The LGL Group, Inc.

  12   27   12    

Total

 $57  $27  $12  $ 
  

Six Months Ended June 30,

  

2024

 

2023

  

Income

 

Expense

 

Income

 

Expense

GAMCO Investors, Inc.

 $79  $  $  $ 

The LGL Group, Inc.

  24   53   24   28 

Total

 $103  $53  $24  $28 
  

June 30, 2024

 

December 31, 2023

  

Assets

 

Liabilities

 

Assets

 

Liabilities

GAMCO Investors, Inc.

 $4,844  $  $2,765  $ 

The LGL Group, Inc.

  74          

Total

 $4,918  $  $2,765  $ 
v3.24.2.u1
Note 6 - Stockholders' Equity (Tables)
6 Months Ended
Jun. 30, 2024
Notes Tables  
Schedule of Stockholders Equity [Table Text Block]
  

Six Months Ended June 30, 2024

 

Year Ended December 31, 2023

  

Common Stock Issued

 

Held in Treasury

 

Common Stock Outstanding

 

Common Stock Issued

 

Held in Treasury

 

Common Stock Outstanding

Shares, beginning of period

  2,786,321      2,786,321   2,725,670      2,725,670 

Stock-based compensation

  12,548      12,548   69,597      69,597 

Exercise of stock options

  9,710      9,710          

Shares withheld for income taxes

           (8,946)     (8,946)

Shares, end of period

  2,808,579      2,808,579   2,786,321      2,786,321 
v3.24.2.u1
Note 7 - Earnings per Share ("EPS") (Tables)
6 Months Ended
Jun. 30, 2024
Notes Tables  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
  

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except share data)

 

2024

 

2023

 

2024

 

2023

Numerator for EPS:

                

Net income

 $1,744  $1,277  $3,230  $1,830 
                 

Denominator for EPS:

                

Weighted average shares outstanding - basic

  2,728,599   2,697,696   2,723,293   2,688,065 

Dilutive effects:

                

Stock options

        107    

Restricted stock

  51,203   13,570   60,339   21,513 

Weighted average shares outstanding - diluted

  2,779,802   2,711,266   2,783,739   2,709,578 
                 

Income per common share:

                

Basic

 $0.64  $0.47  $1.19  $0.68 

Diluted

 $0.63  $0.47  $1.16  $0.68 
v3.24.2.u1
Note 9 - Other Financial Statement Information (Tables)
6 Months Ended
Jun. 30, 2024
Notes Tables  
Schedule of Inventory, Current [Table Text Block]
  

June 30, 2024

 

December 31, 2023

Raw materials

 $4,504  $4,368 

Work in process

  4,484   4,150 

Finished goods

  1,756   1,634 

Total gross inventory

  10,744   10,152 

Reserve for excess and obsolete inventory

  (1,403)  (1,268)

Inventories, net

 $9,341  $8,884 
Property, Plant and Equipment [Table Text Block]
  

June 30, 2024

 

December 31, 2023

Land

 $536  $536 

Buildings and improvements

  5,321   5,216 

Machinery and equipment

  20,936   20,046 

Gross property, plant and equipment

  26,793   25,798 

Less: Accumulated depreciation

  (22,106)  (21,667)

Property, plant and equipment, net

 $4,687  $4,131 
Schedule of Finite-Lived Intangible Assets [Table Text Block]
  

June 30, 2024

 

December 31, 2023

Intellectual property

 $1,226  $1,226 

Goodwill

  40   40 

Gross intangible assets

  1,266   1,266 

Less: Accumulated amortization

  (1,226)  (1,221)

Intangible assets, net

 $40  $45 
v3.24.2.u1
Note 10 - Domestic and Foreign Revenues (Tables)
6 Months Ended
Jun. 30, 2024
Notes Tables  
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]
  

Three Months Ended June 30,

 

Six Months Ended June 30,

  

2024

 

2023

 

2024

 

2023

Malaysia

 $1,426  $1,581  $2,308  $3,160 

Australia

  645   386   1,419   593 

Greece

     264   388   408 

Hungary

           496 

All other foreign countries

  712   865   1,338   1,582 

Total foreign revenues

 $2,783  $3,096  $5,453  $6,239 

Total domestic revenues

 $9,025  $7,044  $17,540  $13,268 
v3.24.2.u1
Note 2 - Summary of Significant Accounting Policies (Details Textual)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
Research and Development Expense $ 682 $ 535 $ 1,315 $ 1,064  
Revenue from Contract with Customer, Excluding Assessed Tax 11,808 10,140 22,993 19,507  
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Largest Customer [Member]          
Revenue from Contract with Customer, Excluding Assessed Tax $ 4,452 $ 2,723 $ 9,327 $ 5,057  
Concentration Risk, Percentage 37.70% 26.90% 40.60% 25.90%  
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Second Largest Customer [Member]          
Revenue from Contract with Customer, Excluding Assessed Tax $ 2,216 $ 1,662 $ 4,419 $ 2,671  
Concentration Risk, Percentage 18.80% 16.40% 19.20% 13.70%  
Accounts Receivable [Member] | Customer Concentration Risk [Member]          
Number of Major Customers     4   4
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Four Largest Customers [Member]          
Revenue from Contract with Customer, Excluding Assessed Tax     $ 2,972   $ 3,774
Concentration Risk, Percentage     55.60%   76.40%
v3.24.2.u1
Note 3 - Related Party Transactions (Details Textual)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 07, 2022
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
Investment Expense Rate   0.08%   0.08%    
Payment for Management Fee   $ 0   $ 0    
Assets under Management, Carrying Amount   0   0    
Cash and Cash Equivalents, at Carrying Value   6,501   6,501   $ 3,913
Income Tax Expense (Benefit)   402 $ 305 779 $ 471  
Engineering, Selling and Administrative   3,394 2,654 6,384 5,089  
LGL Group Inc. [Member]            
Percentage of Distribution of Common Shares to Former Parents Stockholders 100.00%          
GAMCO Investors [Member]            
Cash and Cash Equivalents, at Carrying Value   4,844   4,844   $ 2,765
Investment Income, Interest   $ 45 0 $ 79 0  
LGL Group Inc. [Member]            
Number of Companies in Post Separation   2   2    
LGL Group Inc. [Member] | Amended and Restated Transitional Administrative and Management Services Agreement [Member]            
Related Party Transaction, Monthly Payment   $ 4   $ 4    
Related Party Transaction, Amounts of Transaction   12 12 24 24  
LGL Group Inc. [Member] | Separation Costs [Member]            
Income Tax Expense (Benefit)   0 $ 0 0 $ 0  
Engineering, Selling and Administrative   $ 27   $ 53    
Percentage of Spin Off Costs Excess of Budgeted Amount Included in Engineering, Selling and Administrative       50.00%    
v3.24.2.u1
Note 3 - Related Party Transactions - Related Party Transactions (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Assets, related party $ 28,382   $ 28,382   $ 24,305
Liabilities, related party 4,722   4,722   $ 4,410
GAMCO Investors [Member]          
income (loss) 45 $ 0 79 $ 0  
Expense, related party 0 0 0 0  
Assets, related party 4,844 2,765 4,844 2,765  
Liabilities, related party 0 0 0 0  
LGL Group Inc. [Member]          
income (loss) 12 12 24 24  
Expense, related party 27 0 53 28  
Assets, related party 74 0 74 0  
Liabilities, related party 0 0 0 0  
Related Party [Member]          
income (loss) 57 12 103 24  
Expense, related party 27 0 53 28  
Assets, related party 4,918 2,765 4,918 2,765  
Liabilities, related party $ 0 $ 0 $ 0 $ 0  
v3.24.2.u1
Note 4 - Income Taxes (Details Textual)
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Effective Income Tax Rate Reconciliation, Percent 18.70% 19.30% 19.40% 20.50%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 21.00%      
v3.24.2.u1
Note 5 - Revolving Credit Agreement (Details Textual) - USD ($)
$ in Thousands
Jun. 15, 2022
Jun. 30, 2024
Dec. 31, 2023
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] Secured Overnight Financing Rate (SOFR) [Member]    
Revolving Credit Facility [Member] | Fifth Third Bank, National Association [Member]      
Debt Instrument, Face Amount $ 5,000    
Debt Instrument, Basis Spread on Variable Rate 2.25%    
SOFR Floor 0.00%    
Long-Term Line of Credit   $ 0 $ 0
v3.24.2.u1
Note 6 - Stockholders' Equity - Rollforward of Outstanding Shares (Details) - shares
6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Common Stock, Issued [Member]    
Shares (in shares) 2,786,321 2,725,670
Stock-based compensation (in shares) 12,548 69,597
Exercise of stock options (in shares) 9,710 0
Shares withheld for income taxes (in shares) 0 (8,946)
Shares (in shares) 2,808,579 2,786,321
Treasury Stock, Common [Member]    
Shares, treasury (in shares) 0 0
Stock-based compensation (in shares) 0 0
Exercise of stock options (in shares) 0 0
Shares withheld for income taxes (in shares) 0 0
Shares, treasury (in shares) 0 0
Common Stock, Outstanding [Member]    
Shares (in shares) 2,786,321 2,725,670
Stock-based compensation (in shares) 12,548 69,597
Exercise of stock options (in shares) 9,710 0
Shares withheld for income taxes (in shares) 0 (8,946)
Shares (in shares) 2,808,579 2,786,321
v3.24.2.u1
Note 7 - Earnings per Share ("EPS") - Reconciliation of Net Income and Shares (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Net income $ 1,744 $ 1,277 $ 3,230 $ 1,830
Weighted average shares outstanding - basic (in shares) (2,728,599) (2,697,696) (2,723,293) (2,688,065)
Stock options (in shares) 0 0 (107) 0
Restricted stock (in shares) (51,203) (13,570) (60,339) (21,513)
Diluted (in shares) 2,779,802 2,711,266 2,783,739 2,709,578
Basic (in dollars per share) $ 0.64 $ 0.47 $ 1.19 $ 0.68
Diluted (in dollars per share) $ 0.63 $ 0.47 $ 1.16 $ 0.68
v3.24.2.u1
Note 9 - Other Financial Statement Information - Schedule of Inventories (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Raw materials $ 4,504 $ 4,368
Work in process 4,484 4,150
Finished goods 1,756 1,634
Total gross inventory 10,744 10,152
Reserve for excess and obsolete inventory (1,403) (1,268)
Inventories, net $ 9,341 $ 8,884
v3.24.2.u1
Note 9 - Other Financial Statement Information - Property, Plant, and Equipment (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Land $ 536 $ 536
Buildings and improvements 5,321 5,216
Machinery and equipment 20,936 20,046
Gross property, plant and equipment 26,793 25,798
Less: Accumulated depreciation (22,106) (21,667)
Property, plant and equipment, net $ 4,687 $ 4,131
v3.24.2.u1
Note 9 - Other Financial Statement Information - Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Gross intangible assets $ 1,266 $ 1,266
Goodwill 40 40
Less: Accumulated amortization (1,226) (1,221)
Intangible assets, net 40 45
Intellectual Property [Member]    
Gross intangible assets $ 1,226 $ 1,226
v3.24.2.u1
Note 10 - Domestic and Foreign Revenues (Details Textual)
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Geographic Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Minimum [Member] | Non-US [Member]        
Concentration Risk, Percentage 10.00% 10.00% 10.00% 10.00%
v3.24.2.u1
Note 10 - Domestic and Foreign Revenues - Revenues From Operations (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Revenues $ 11,808 $ 10,140 $ 22,993 $ 19,507
MALAYSIA        
Revenues 1,426 1,581 2,308 3,160
AUSTRALIA        
Revenues 645 386 1,419 593
GREECE        
Revenues 0 264 388 408
HUNGARY        
Revenues 0 0 0 496
All Other Foreign Countries [Member]        
Revenues 712 865 1,338 1,582
Non-US [Member]        
Revenues 2,783 3,096 5,453 6,239
UNITED STATES        
Revenues $ 9,025 $ 7,044 $ 17,540 $ 13,268

Mtron Industries (AMEX:MPTI)
過去 株価チャート
から 10 2024 まで 11 2024 Mtron Industriesのチャートをもっと見るにはこちらをクリック
Mtron Industries (AMEX:MPTI)
過去 株価チャート
から 11 2023 まで 11 2024 Mtron Industriesのチャートをもっと見るにはこちらをクリック