MPTI Mtron Industries Inc

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)

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

 

M-tron Industries, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

 

 

M-tron Industries, Inc.

Condensed Consolidated Statements of Equity

(Unaudited)

 

 

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

 

 

 

M-tron Industries, Inc.

Condensed Consolidated Statements of Equity

(Unaudited)

 

 

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

 

 

M-tron Industries, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

 

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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.

 

 

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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.

 

 

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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.

 

 

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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

 

 

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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

 

 

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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.

 

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Item 2.

Management’s 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)

 

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

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