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Subsequent Events
12 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events

N. Subsequent Events

ATM Program

On January 22, 2020, the Company entered into an Open Market Sale Agreement (the “Agreement”) with Jefferies LLC, as sales agent (“Jefferies”), pursuant to which the Company may offer and sell, from time to time, through Jefferies, shares of the Company’s common stock, par value $0.01 per share, having an aggregate offering price of up to $15,000,000 (the “Shares”).

The Company is not obligated to sell any Shares under the Agreement. Subject to the terms and conditions of the Agreement, Jefferies will use commercially reasonable efforts, consistent with its normal trading and sales practices and applicable laws and regulations, to sell Shares from time to time based upon the Company’s instructions, including any price, time or size limits specified by the Company, subject to certain limitations. Under the Agreement, Jefferies may sell the Shares by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended, including block transactions, sales made directly on the NYSE American or sales made into any other existing trading market of the Company’s common stock.

Shares sold under the Agreement will be issued pursuant to the shelf registration statement on Form S-3 (File No. 333-235767), filed by the Company with the SEC on December 31, 2019, which was declared effective on January 8, 2020. The Company filed a prospectus supplement with the SEC on January 23, 2020 in connection with the offer and sale of the common shares pursuant to the Agreement.

Through the date of this report, there have been 263,725 shares sold under this Agreement, at an average price per share of $13.65 and generating net proceeds of approximately $3,491,000.

Novel Coronavirus Outbreak

On March 11, 2020, the World Health Organization declared the novel coronavirus outbreak (“COVID-19”) a pandemic. COVID-19 could impact the Company’s operations, suppliers and/or customers in a significant way. Any disruptions to the Company’s operations, or those of our suppliers or customers, may adversely impact the Company’s revenues and operating results. COVID-19 could also adversely affect the economies and financial markets of many countries, including other countries in which the Company operates, with a resulting economic downturn that may affect demand for our products.

The extent to which COVID-19 impacts the Company’s results will depend on future developments, including new information which may emerge concerning the severity and global spread of COVID-19 and any governmental or state actions taken to contain its impact, which efforts are highly uncertain and cannot be predicted.

Our production facility in Orlando is situated in Orange County, whose mayor declared a stay-in-place order beginning March 26, 2020 at 11pm for two weeks. Our MtronPTI business within that production facility operates as a manufacturer within the defense and aerospace market and qualifies as an essential industry, not subject to general quarantine or stay-in-place orders.

Our production facility in Noida, India, has been impacted by the Indian government’s nationwide lockdown, beginning March 25, 2020 and expected to be in place for 21 days, and all production activities have ceased.

The company continues to assess the potential impact of COVID-19, which remains uncertain at this time.

Adverse Impact on Operating Unit Liquidity

Mtron Systems Holdings, LLC and Precise Time and Frequency, LLC do not have existing lines of credit in place. Current cash and liquidity may not be sufficient if there is a prolonged disruption of their operations (see discussion above), and such events could have a significant detrimental impact on the liquidity of our subsidiaries. It is unknown whether viable alternatives to access liquidity will be available, and/or if our subsidiaries, respectively, will qualify for prospective sources of liquidity. Such includes the possibility to draw capital from the parent LGL Group, Inc.

Global Financial Market Downturn

With the recent downturn in the financial markets, as a result of COVID-19 and other factors, our marketable securities have suffered losses totaling around $0.3 million, or approximately 5.5% as of the market close on March 27, 2020.