<SEC-DOCUMENT>0000921895-20-002878.txt : 20201112
<SEC-HEADER>0000921895-20-002878.hdr.sgml : 20201112
<ACCEPTANCE-DATETIME>20201112083845
ACCESSION NUMBER:		0000921895-20-002878
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20201112
DATE AS OF CHANGE:		20201112

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LGL GROUP INC
		CENTRAL INDEX KEY:			0000061004
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPONENTS, NEC [3679]
		IRS NUMBER:				381799862
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-249639
		FILM NUMBER:		201303702

	BUSINESS ADDRESS:	
		STREET 1:		2525 SHADER ROAD
		CITY:			ORLANDO
		STATE:			FL
		ZIP:			32804
		BUSINESS PHONE:		(407) 298-2000

	MAIL ADDRESS:	
		STREET 1:		2525 SHADER ROAD
		CITY:			ORLANDO
		STATE:			FL
		ZIP:			32804

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LYNCH CORP
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>form424b303725036_11102020.htm
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Filed Pursuant to Rule 424(b)(3)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Registration No. 333-249639</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B><IMG SRC="image_001.gif" ALT="" STYLE="height: 84px; width: 113px"></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>THE LGL GROUP, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">5,258,320 Warrants to Purchase Shares of Common
Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">1,051,664 Shares of Common Stock, $0.01 par
value per share</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We are distributing
at no cost to you, as a holder of our common stock, par value $0.01 per share, transferable warrants to purchase shares of our
common stock. If you own shares of our common stock on November 9, 2020, the record date, you will be entitled to receive one (1)
warrant for each share of common stock you own. When exercisable, five (5) warrants will entitle their holder to purchase one (1)
share of our common stock at an exercise price of $12.50 per share. The warrants are &ldquo;European style warrants&rdquo; and
will only become exercisable on the earlier of (i) the expiration date, November 16, 2025, and (ii) such date that the 30-day volume
weighted average price per share, or VWAP, of our common stock is greater than or equal to $17.50. Once the warrants become exercisable,
they may be exercised in accordance with the terms of the warrant agreement until their expiration at 5:00 p.m., Eastern Time,
on the expiration date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Our board of directors
is not making a recommendation regarding your exercise of the warrants. You should carefully consider whether to exercise them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We have applied
for listing the warrants on the NYSE American and expect trading to commence on or around November 16, 2020 under the symbol LGL
WS. Our common stock is traded on the NYSE American under the symbol LGL. The last reported sales price of our common stock on
the NYSE American on November 11, 2020, the last practicable date before the filing of this prospectus, was $9.82. We urge you
to obtain a current market price for the shares of our common stock before making any investment decision with respect to the warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Investing in our
securities involves risks. See &ldquo;Risk Factors&rdquo; beginning on page 3 of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><B>Neither the
Securities and Exchange Commission, any state securities commission, nor any other regulatory body has approved or disapproved
of these securities or determined if this prospectus is truthful and complete. Any representation to the contrary is a criminal
offense.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">The date of this prospectus is November
12, 2020.</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><A NAME="TableOfContents"></A><B>TABLE OF CONTENTS</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 92%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">PAGE</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 15.3pt; text-indent: -15.3pt"><A HREF="#PROSPECTUSSUMMARY">PROSPECTUS SUMMARY</A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><A HREF="#PROSPECTUSSUMMARY">1</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 5.4pt; padding-left: 15.3pt; text-indent: -15.3pt"><A HREF="#RISKFACTORS">RISK FACTORS</A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><A HREF="#RISKFACTORS">5</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 15.3pt; text-indent: -15.3pt"><A HREF="#FORWARDLOOKINGSTATEMENTS">FORWARD-LOOKING STATEMENTS</A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><A HREF="#FORWARDLOOKINGSTATEMENTS">19</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 5.4pt; padding-left: 15.3pt; text-indent: -15.3pt"><A HREF="#USEOFPROCEEDS">USE OF PROCEEDS</A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><A HREF="#USEOFPROCEEDS">19</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 15.3pt; text-indent: -15.3pt"><A HREF="#PLANOFDISTRIBUTION">PLAN OF DISTRIBUTION</A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><A HREF="#PLANOFDISTRIBUTION">20</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 5.4pt; padding-left: 15.3pt; text-indent: -15.3pt"><A HREF="#MARKETFORCOMMONEQUITYANDRELATEDSTOCKHOLDERMATTERS">MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><A HREF="#MARKETFORCOMMONEQUITYANDRELATEDSTOCKHOLDERMATTERS">20</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 15.3pt; text-indent: -15.3pt"><A HREF="#DESCRIPTIONOFCAPITALSTOCK">DESCRIPTION OF CAPITAL STOCK</A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><A HREF="#DESCRIPTIONOFCAPITALSTOCK">22</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 5.4pt; padding-left: 15.3pt; text-indent: -15.3pt"><A HREF="#DESCRIPTIONOFTHEWARRANTS">DESCRIPTION OF THE WARRANTS</A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><A HREF="#DESCRIPTIONOFTHEWARRANTS">24</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 15.3pt; text-indent: -15.3pt"><A HREF="#LEGALMATTERS">LEGAL MATTERS</A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><A HREF="#LEGALMATTERS">26</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 5.4pt; padding-left: 15.3pt; text-indent: -15.3pt"><A HREF="#EXPERTS">EXPERTS</A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><A HREF="#EXPERTS">27</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 15.3pt; text-indent: -15.3pt"><A HREF="#INCORPORATIONBYREFERENCE">INCORPORATION BY REFERENCE</A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><A HREF="#INCORPORATIONBYREFERENCE">27</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 5.4pt; padding-left: 15.3pt; text-indent: -15.3pt"><A HREF="#WHEREYOUCANFINDMOREINFORMATION">WHERE YOU CAN FIND MORE INFORMATION</A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><A HREF="#WHEREYOUCANFINDMOREINFORMATION">28</A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>About this Prospectus</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">This prospectus
is part of a Registration Statement on Form S-1 that we filed with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;).
It is important for you to read and consider all information contained in this prospectus in making your investment decision. You
should also read and consider the information contained in the documents identified under the headings &ldquo;Incorporation by
Reference&rdquo; and &ldquo;Where You Can Find More Information.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">You should rely
only on the information provided in this prospectus, including the information incorporated by reference. We have not authorized
anyone to provide you with different information. You should not assume that the information contained or incorporated by reference
in this prospectus is accurate as of any date other than as of the date of this prospectus, as the case may be, or in the case
of the documents incorporated by reference, the date of such documents regardless of the time of delivery of this prospectus or
any sale of our securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">This prospectus
does not constitute an offer to sell or a solicitation of an offer to buy securities in any jurisdiction where, or to any person
to whom, it is unlawful to make such offer or solicitation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Unless the context
otherwise requires, references to &ldquo;we,&rdquo; &ldquo;our&rdquo;, &ldquo;us,&rdquo; or the &ldquo;Company&rdquo; in this
prospectus refer to The LGL Group, Inc.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><A NAME="PROSPECTUSSUMMARY"></A><B>PROSPECTUS SUMMARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><I>This summary
highlights selected information contained elsewhere or incorporated by reference in this prospectus. This summary may not contain
all the information that you should consider before determining whether to invest in our securities. You should read the entire
prospectus carefully, including the information included in the &ldquo;Risk Factors&rdquo; section, as well as our consolidated
financial statements, notes to the consolidated financial statements and the other information incorporated by reference into this
prospectus, as well as the exhibits to the registration statement of which this prospectus is a part, before making an investment
decision.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>The Company</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>Overview</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We are a globally-positioned
producer of industrial and commercial products and services. We operate in two identified segments. Our electronic components segment
is currently focused on the design and manufacture of highly-engineered, high reliability frequency and spectrum control products.
These electronic components ensure reliability and security in aerospace and defense communications, low noise and base accuracy
for laboratory instruments, and synchronous data transfers throughout the wireless and Internet infrastructure. Our electronic
instruments segment is focused on the design and manufacture of high-performance Frequency and Time reference standards that form
the basis for timing and synchronization in various applications. The Company was incorporated in 1928 under the laws of the State
of Indiana, and in 2007, the Company was reincorporated under the laws of the State of Delaware as The LGL Group, Inc. We maintain
our executive offices at 2525 Shader Road, Orlando, Florida, 32804. Our telephone number is (407) 298-2000. Our Internet address
is www.lglgroup.com. The information contained on our website is not part of this prospectus. Our common stock is traded on the
NYSE American under the symbol LGL. We have applied for listing the warrants on the NYSE American and expect trading to commence
on or around November 16, 2020 under the symbol LGL WS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We operate through our
two principal subsidiaries, M-tron Industries, Inc. (together with its subsidiaries, &ldquo;MtronPTI&rdquo;), which has design
and manufacturing facilities in Orlando, Florida; Yankton, South Dakota; and Noida, India, and Precise Time and Frequency, LLC
(&ldquo;PTF&rdquo;), which has a design and manufacturing facility in Wakefield, Massachusetts. We also have local sales and customer
support offices in Sacramento, California; Austin, Texas; and Hong Kong.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our primary objective is
to create long-term growth with a market-based approach of designing and offering new products to our customers through both organic
research and development, and through strategic partnerships, joint ventures, acquisitions or mergers. We seek to leverage our
core strength as an engineering leader to expand client access, add new capabilities and continue to diversify our product offerings.
Our focus is on investments that will differentiate us, broaden our portfolio and lead toward higher levels of integration organically
and through joint venture, merger and acquisition opportunities. We believe that successful execution of this strategy will lead
to a transformation of our product portfolio towards longer product life cycles, better margins and improved competitive position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>Recent Developments</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><B>ATM Program.</B>
On January 22, 2020, the Company entered into an Open Market Sale Agreement (the &ldquo;Sales Agreement&rdquo;) with Jefferies
LLC, as sales agent (&ldquo;Jefferies&rdquo;), pursuant to which the Company may offer and sell, from time to time, in what is
deemed to be an &ldquo;at the market offering&rdquo; (&ldquo;ATM Offering&rdquo;) through Jefferies, shares of the Company&rsquo;s
common stock, par value $0.01 per share, having an aggregate offering price of up to $15,000,000 (the &ldquo;Shares&rdquo;). Shares
sold under the Sales Agreement are 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 Shares pursuant to the Sales Agreement.
During February and March of 2020, there were 263,725 shares sold under the Sales Agreement, at an average price per share of $13.65
and generating net proceeds of approximately $3,492,000 after brokerage charges of $108,000 were deducted and paid to Jefferies.
As required under the Sales Agreement, the Company obtained the prior consent of Jefferies in order to consummate this offering.
The Sales Agreement and ATM Offering remain in effect in accordance with their terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><B>COVID-19. </B>The
global outbreak of coronavirus (&ldquo;COVID-19&rdquo;) was declared a pandemic by the World Health Organization and a national
emergency by the U.S. government in March 2020 and has negatively impacted the U.S. and global economy, disrupted global supply
chains, resulted in significant travel and transport restrictions, including mandated closures and orders to &ldquo;shelter-in-place,&rdquo;
and created significant disruption of the financial markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">As a result of the
COVID-19 pandemic, the Company&rsquo;s operations in India were closed from March 23, 2020 and resumed limited operations on May
7, 2020 with a reduced level of staffing. By the end of June 2020, the Company&rsquo;s India facilities were fully staffed and
operating at normal capacity. Despite the second quarter revenue decrease associated with the foregoing suspension of operations
in India, the impact of the COVID-19 outbreak has not had a significant impact on the Company to date. Our updated 2020 annual
projection shows some decline, although also not significant. However, the ultimate effect on our future results could be significant
and will largely depend on future developments, which are highly uncertain and cannot be predicted, including new information which
may emerge concerning the severity of COVID-19, the success of actions taken to contain or treat COVID-19, and reactions by consumers,
companies, governmental entities and capital markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">In accordance with
the Department of Defense guidance issued in March 2020 designating the Defense Industrial Base as a critical infrastructure workforce,
our U.S. production facilities have continued to operate in support of essential products and services required to meet national
security commitments to the U.S. government and the U.S. military, however, facility closures or work slowdowns or temporary stoppages
have occurred and could occur in the future. In addition, other countries have different practices and policies that can affect
our international operations and the operations of our suppliers and customers. In some cases, our facilities are not operating
under full staffing as a result of COVID-19, which could have a longer-term impact. Customer visits and representative training
are being impacted by travel restrictions as a result of COVID-19, which could delay new design wins and future business with our
customers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The Company has
taken measures to protect the health and safety of our employees, work with our customers to minimize potential disruptions and
support our community in addressing the challenges posed by this global pandemic. The extent of the impact of the COVID-19 pandemic
on our operational and financial performance, including our ability to execute our contracts in the expected timeframe, will depend
on future developments, including the duration and spread of the pandemic and related actions taken by the U.S. government, state
and local government officials, and international governments to prevent disease spread, all of which are uncertain and cannot
be predicted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">An extended period
of global supply chain disruption caused by the response to COVID-19 could impact our ability to perform on our contracts. To date,
we have identified a number of suppliers that have potential delivery impacts due to COVID-19 and, if we are not able to implement
alternatives or other mitigations, contract deliveries could be adversely impacted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Delays in inspection,
acceptance and payment by our customers, many of whom are teleworking, could also affect our sales and cash flows. This is particularly
an issue with respect to classified work that is unable to be done remotely. Limitations on government operations can also impact
regulatory approvals such as export licenses that are needed for international sales and deliveries. In addition, we could experience
delays in new contract starts or awards of future work as well as the uncertain impact of contract modifications to respond to
the national emergency. Current limitations on travel to customers could impact both domestic and international orders. Government
funding priorities may change as a result of the costs of COVID-19. If significant portions of our workforce are unable to work
effectively, including because of illness, quarantines, absenteeism, government actions, facility closures, travel restrictions
or other restrictions in connection with the COVID-19 pandemic, our operations will be impacted. We may be unable to perform fully
on our contracts and our costs may increase as a result of the COVID-19 outbreak. These cost increases, including costs for employees
whose jobs cannot be performed remotely, may not be fully recoverable under our contracts, or adequately covered by insurance.
The impact of COVID-19 could worsen if there is an extended duration of any COVID-19 outbreak or a resurgence of COVID-19 infection
in affected regions after they have begun to experience improvement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The continued spread
of COVID-19 has also led to disruption and volatility in the global capital markets, which depending on future developments could
impact our capital resources and liquidity in the future. COVID-19 has also caused volatility in the equity capital markets. We
are monitoring the impacts of COVID-19 on the fair value of our assets. While we do not currently anticipate any material impairments
on our assets as a result of COVID-19, future changes in expectations for sales, earnings and cash flows related to intangible
assets, goodwill and other long-lived assets below our current projections could cause these assets to be impaired. While these
are our current assumptions, this is an emerging situation and these could change, which could affect our outlook.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>The Offering</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><I>Securities Distributed</I></TD>
    <TD STYLE="width: 66%; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: justify">We are distributing to the holders of our common stock on the record date, at no charge, one (1) warrant for each share of common stock owned.&nbsp;&nbsp;When exercisable, five (5) warrants will entitle their holder to purchase one (1) share of our common stock at the exercise price.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><I>Record Date</I></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt">November 9, 2020.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><I>Exercise Price</I></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt">$12.50.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><I>Exercise Period</I></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: justify">The warrants are &ldquo;European style warrants&rdquo; and will only become exercisable on the earlier of (i) the expiration date and (ii) such date that the 30-day volume weighted average price per share, or VWAP, of our common stock is greater than or equal to $17.50.&nbsp;&nbsp;Once the warrants become exercisable, they may be exercised in accordance with the terms of the warrant agreement until their expiration at 5:00 p.m., Eastern Time, on the expiration date.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><I>Expiration Date</I></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt">November 16, 2025.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><I>Transferability of Warrants; Listing</I></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: justify">The warrants may be sold, transferred or assigned, in whole or in part.&nbsp;&nbsp;We have applied for listing the Warrants on the NYSE American and expect trading to commence on or around November 16, 2020 under the symbol LGL WS.&nbsp;&nbsp;Our common stock is listed on the NYSE American under the symbol LGL. </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><I>Shares Outstanding After Exercise of Warrants</I></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: justify">5,213,320 shares of our common stock were outstanding as of October 15, 2020.&nbsp;&nbsp;If all of the warrants are exercised in full, there would be 6,264,984 shares of common stock outstanding.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><I>Use of Proceeds</I></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">The purpose of this distribution of warrants
        is to return a portion of the Company&rsquo;s future value to our stockholders in a cost-effective manner that gives all of our
        stockholders the opportunity to participate in the Company&rsquo;s growth.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">Assuming that all warrants are exercised,
        the net proceeds from the exercise of the warrants will be approximately $12.989 million, after deducting our estimated expenses
        related to this offering. We intend to use the net proceeds of warrant exercises for general corporate purposes.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><I>Warrant Agent</I></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt">Computershare Inc. and Computershare Trust Company, N.A.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><A NAME="RISKFACTORS"></A><B>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><I>You should carefully
consider the specific risks described below, the risk factors described in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2019, the risk factors described under the caption &ldquo;Risk Factors&rdquo; in any applicable prospectus supplement
and any risk factors set forth in our other filings with the SEC made pursuant to Sections 13(a), 13(c), 14, or 15(d) of the Exchange
Act, which are incorporated by reference herein, before making an investment decision. Each of the risks described below and in
these documents could materially and adversely affect our business, financial condition, results of operations and prospects, and
could result in a partial or complete loss of your investment. See &ldquo;Where You Can Find More Information.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>Risks Related to the Warrants and
Our Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>The warrants may not have any
value.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The warrants are
 &ldquo;European style warrants&rdquo; and will only become exercisable on the earlier of (i) the expiration date, November 16,
2025, and (ii) such date that the 30-day volume weighted average price per share, or VWAP, of our common stock is greater than
or equal to $17.50. Once the warrants become exercisable, they may be exercised in accordance with the terms of the warrant agreement
until their expiration at 5:00 p.m., Eastern Time, on the expiration date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The warrants have
an exercise price of $12.50 per share. This exercise price does not necessarily bear any relationship to established criteria for
valuation of our common stock, such as book value per share, cash flows, or earnings, and you should not consider this exercise
price as an indication of the current or future market price of our common stock. There can be no assurance that the market price
of our common stock will exceed $12.50 per share at any time on the expiration date of the warrants, November 16, 2025, or at any
other time the warrants may be exercised. If the warrants only become exercisable on the expiration date and the market price of
our common stock on such date does not exceed $12.50 per share, your warrants will be of no value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">There can be no
assurance that the 30-day VWAP of our common stock will be greater than or equal to $17.50 at any time prior to the expiration
date of the warrants, November 16, 2025. As a result, the warrants may become exercisable only on the expiration date. If the warrants
may be exercised only on the expiration date and you do not exercise your warrants on that date, your warrants will expire and
be of no value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">No warrants will
be exercisable unless at the time of exercise a prospectus relating to our common stock issuable upon exercise of the warrants
is current and the common stock has been registered or qualified or deemed to be exempt under the securities laws of the state
of residence of the holder of the warrants. Under the terms of the warrant agreement, we have agreed to meet these conditions and
use our best efforts to maintain a current prospectus relating to common stock issuable upon exercise of the warrants until the
expiration of the warrants. However, we cannot assure you that we will be able to do so, and if we do not maintain a current prospectus
related to the common stock issuable upon exercise of the warrants, holders will be unable to exercise their warrants and we will
not be required to settle any such warrant exercise. If the prospectus relating to the common stock issuable upon the exercise
of the warrants is not current or if the common stock is not qualified or exempt from qualification in the jurisdictions in which
the holders of the warrants reside, we will not be required to net cash settle or cash settle the warrant exercise, the warrants
may have no value, the market for the warrants may be limited and the warrants may expire worthless.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>An active trading market for our
warrants may not develop.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Prior to this offering,
there has been no public market for our warrants. We have applied for listing the warrants on the NYSE American and expect trading
to commence on or around November 16, 2020 under the symbol LGL WS. Even if the warrants are approved for listing on the NYSE American,
an active trading market for our warrants may not develop or be sustained. If an active market for our warrants does not develop,
it may be difficult for you to sell the warrants without depressing the market price for such securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>Holders of our warrants will have
no rights as a common stockholder until such holders exercise their warrants and acquire shares of our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Until warrant holders
acquire shares of our common stock upon exercise of the warrants, warrant holders will have no rights with respect to the shares
of our common stock underlying such warrants. Upon the acquisition of shares of our common stock upon exercise of the warrants,
the holders thereof will be entitled to exercise the rights of a common stockholder only as to matters for which the record date
for the matter occurs after the exercise date of the warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>Adjustments to the exercise price
of the warrants, or the number of shares of common stock for which the warrants are exercisable, following certain corporate events
may not fully compensate warrant holders for the value they would have received if they held the common stock underlying the warrants
at the time of such events.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Subject to certain
excluded transactions, the warrants provide for adjustments to the exercise price of the warrants following a number of corporate
events, including (i) our issuance of a stock dividend or the subdivision or combination of our common stock, (ii) our issuance
of rights, options or warrants to purchase our common stock for no consideration or for consideration at less than the market price
of the common stock immediately preceding the announcement date of the issuance, (iii) a distribution of capital stock of the Company
or any subsidiary other than our common stock, rights to acquire such capital stock, evidences of indebtedness or assets, (iv)
our issuance of a cash dividend on our common stock, (v) certain tender offers for our common stock by the Company or one or more
of our wholly-owned subsidiaries and (vi) adjustments in the discretion of our board of directors (the &ldquo;Board&rdquo;), subject
to certain notice requirements. The warrants also provide for adjustments to the number of shares of common stock for which the
warrants are exercisable following our issuance of a stock dividend or the subdivision or combination of our common stock. Any
adjustment made to the exercise price of the warrants or the number of shares of common stock for which the warrants are exercisable
following a corporate event in accordance with these provisions may not fully compensate warrant holders for the value they would
have received if they held the common stock underlying the warrants at the time of the event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>The prices of our common stock
have fluctuated considerably and are likely to remain volatile, in part due to the limited market for our securities.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">From January 1,
2020, through October 1, 2020, the high and low sales price for our common stock was $16.55 and $7.36, respectively. There is a
limited public market for our common stock, and we cannot provide assurances that a more active trading market will develop or
be sustained. As a result of low trading volume in our common stock, the purchase or sale of a relatively small number of securities
could result in significant price fluctuations and it may be difficult for holders to sell their securities without depressing
the market price for such securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Additionally, the
market prices of our common stock may continue to fluctuate significantly in response to a number of factors, some of which are
beyond our control, including the following:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">General economic conditions affecting the availability of long-term or short-term credit facilities,
the purchasing and payment patterns of our customers, or the requirements imposed by our suppliers;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Economic conditions in our industry and in the industries of our customers and suppliers (including
the impact of COVID-19);</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Changes in financial estimates or investment recommendations by securities analysts relating to
our common stock;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Market reaction to our reported financial results;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Loss of a major customer;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Announcements by us or our competitors of significant contracts, acquisitions, strategic partnerships,
joint ventures or capital commitments; and</TD></TR></TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Changes in key personnel.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>Our officers, directors and 10%
or greater stockholders have significant voting power and may vote their shares in a manner that is not in the best interest of
other stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Our officers, directors
and 10% or greater stockholders control approximately 36.5% of the voting power represented by our outstanding shares of common
stock as of June 30, 2020. If these stockholders act together, they may be able to exert significant control over our management
and affairs requiring stockholder approval, including approval of significant corporate transactions. This concentration of ownership
may have the effect of delaying or preventing a change in control and might adversely affect the market price of our common stock.
This concentration of ownership may not be in the best interests of all of our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>Provisions in our corporate charter
documents and under Delaware law could make an acquisition of the Company more difficult, which acquisition may be beneficial to
stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Provisions in our
certificate of incorporation and by-laws, as well as provisions of the General Provisions in our certificate of incorporation and
by-laws, as well as provisions of the General Corporation Law of the State of Delaware (&ldquo;DGCL&rdquo;), may discourage, delay
or prevent a merger, acquisition or other change in control of the Company, even if such a change in control would be beneficial
to our stockholders. These provisions include prohibiting our stockholders from fixing the number of directors, and establishing
advance notice requirements for stockholder proposals that can be acted on at stockholder meetings and nominations to the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Additionally, Section
203 of the DGCL prohibits a person who owns in excess of 15% of our outstanding voting stock from merging or combining with us
for a period of three years after the date of the transaction in which the person acquired in excess of 15% of our outstanding
voting stock, unless the merger or combination is approved in a prescribed manner. We have not opted out of the restrictions under
Section 203, as permitted under DGCL.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>Risks Related to Our Business and
Industry</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>We are dependent on a single line
of business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Prior to our September
2016 acquisition of PTF, we were engaged only in the design, manufacture and marketing of standard and custom-engineered electronic
components that are used primarily to control the frequency or timing of signals in electronic circuits. Although our acquisition
of PTF added an additional product line of electronic instruments that includes highly engineered products for the generation of
time and frequency references for synchronization and control, until we see significant growth from the PTF electronic instruments
product line or develop or acquire additional product lines we will remain dependent on our electronic components line of business.
Virtually all of our 2019 and 2018 revenues came from sales of electronic components, which consist of packaged quartz crystals,
oscillator modules, electronic filters and integrated modules. We expect that this product line will continue to account for substantially
all of our revenues in 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Given our reliance
on this single line of business, any decline in demand for this product line or failure to achieve continued market acceptance
of existing and new versions of this product line may harm our business and our financial condition. Additionally, unfavorable
market conditions affecting this line of business would likely have a disproportionate impact on us in comparison with certain
competitors, who have more diversified operations and multiple lines of business. Should this line of business fail to generate
sufficient sales to support ongoing operations, there can be no assurance that we will be able to develop alternate business lines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>Our operating results vary significantly
from period to period.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We experience fluctuations
in our operating results. Some of the principal factors that contribute to these fluctuations include: changes in demand for our
products; our effectiveness in managing manufacturing processes, costs and inventory; our effectiveness in engineering and qualifying
new product designs with our OEM customers and in managing the risks associated with offering those new products into production;
changes in the cost and availability of raw materials, which often occur in the electronics manufacturing industry and which affect
our margins and our ability to meet delivery schedules; macroeconomic and served industry conditions; and events that may affect
our production capabilities, such as labor conditions and political instability. In addition, due to the prevailing economic climate
and competitive differences between the various market segments which we serve, the mix of sales between our communications, networking,
aerospace, defense, industrial and instrumentation market segments may affect our operating results from period to period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">For the years ended
December 31, 2019 and 2018 and the six month period ended June 30, 2020, we had net income of approximately $7,016,000 (including
a $3,107,000 tax benefit), $1,405,000, and $438,000, respectively. Our revenues are derived primarily from MtronPTI, whose future
rate of growth and profitability are highly dependent on the development and growth of demand for our products in the communications,
networking, aerospace, defense, instrumentation and industrial markets, which are cyclical. We cannot be certain whether we will
generate sufficient revenues or sufficiently manage expenses to sustain profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>We have a large customer that
accounts for a significant portion of our revenues, and the loss of this customer, or decrease in its demand for our products,
could have a material adverse effect on our results.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">In 2019, our largest
customer, an electronics contract manufacturing company, accounted for $5,522,000, or 17.3%, of the Company's total revenues compared
to $4,436,000, or 17.8%, in 2018. In 2019, the Company&rsquo;s second largest customer, a defense contract manufacturer, accounted
for $3,187,000, or 10.0%, of the Company's total revenues compared to $1,617,000, or 7.2%, in 2018. During the six months ended
June 30, 2020, our largest customer and second largest customer represented $2,750,000, or 17.5%, and $2,639,000, or 16.8%, of
the Company's total revenues, respectively. The loss of either of these customers, or a decrease in their demand for our products,
could have a material adverse effect on our results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>A relatively small number of customers
account for a significant portion of our accounts receivable, and the insolvency of any of these customers could have a material
adverse impact on our liquidity.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">As of June 30, 2020,
four of our largest customers accounted for approximately $1,708,000, or 37%, of accounts receivable. As of December 31, 2019,
four of our largest customers accounted for approximately $1,841,000, or 40%, of accounts receivable. As of December 31, 2018,
four of our largest customers accounted for approximately $1,043,000, or 30%, of accounts receivable. The insolvency of any of
these customers could have a material adverse impact on our liquidity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"><B><I>Our order backlog may not be
indicative of future revenues.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Our order backlog
is comprised of orders that are subject to specific production release, orders under written contracts, oral and written orders
from customers with which we have had long-standing relationships and written purchase orders from sales representatives. Our customers
may order products from multiple sources to ensure timely delivery when backlog is particularly long and may cancel or defer orders
without significant penalty. They also may cancel orders when business is weak and inventories are excessive. As a result, we cannot
provide assurances as to the portion of backlog orders to be filled in a given year, and our order backlog as of any particular
date may not be representative of actual revenues for any subsequent period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"><B><I>We are a holding company and,
therefore, are dependent upon the operations of our subsidiaries to meet our obligations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We are a holding
company that transacts business through our operating subsidiaries.&nbsp;Our primary assets are cash and cash equivalents, marketable
securities, the shares of our operating subsidiaries and intercompany loans.&nbsp;Should our cash and cash equivalents be depleted,
our ability to meet our operating requirements and to make other payments will depend on the surplus and earnings of our subsidiaries
and their ability to pay dividends or to advance or repay funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"><B><I>Our future rate of growth and
profitability are highly dependent on the development and growth of the communications, networking, aerospace, defense, instrumentation
and industrial markets, which are cyclical.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">In 2019 and 2018,
the majority of our revenues were derived from sales to manufacturers of equipment for the defense, aerospace, instrumentation
and industrial markets for frequency and spectrum control devices, including indirect sales through distributors and contract manufacturers.
During 2020, we expect a significant portion of our revenues to continue to be derived from sales to these manufacturers. Often
OEMs and other service providers within these markets have experienced periods of capacity shortage and periods of excess capacity,
as well as periods of either high or low demand for their products. In periods of excess capacity or low demand, purchases of capital
equipment may be curtailed, including equipment that incorporates our products. A reduction in demand for the manufacture and purchase
of equipment for these markets, whether due to cyclical, macroeconomic or other factors, or due to our reduced ability to compete
based on cost or technical factors, could substantially reduce our net sales and operating results and adversely affect our financial
condition. Moreover, if these markets fail to grow as expected, we may be unable to maintain or grow our revenues. The multiple
variables which affect the communications, networking, aerospace, defense, instrumentation and industrial markets for our products,
as well as the number of parties involved in the supply chain and manufacturing process, can impact inventory levels and lead to
supply chain inefficiencies. As a result of these complexities, we have limited visibility to forecast revenue projections accurately
for the near and medium-term timeframes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"><B><I>The market share of our customers
in the communications, networking, aerospace, defense, instrumentation and industrial markets may change over time, reducing the
potential value of our relationships with our existing customer base.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We have developed
long-term relationships with our existing customers, including pricing contracts, custom designs and approved vendor status.&nbsp;If
these customers lose market share to other equipment manufacturers in the communications, networking, aerospace, defense, instrumentation
and industrial markets with whom we do not have similar relationships, our ability to maintain revenue, margin or operating performance
may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"><B><I>We may make acquisitions that
are not successful, or we may fail to integrate acquired businesses into our operations properly.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We intend to continue
exploring opportunities to buy other businesses or technologies that could complement, enhance, or expand our current business
or product lines, or that might otherwise offer us growth opportunities.&nbsp;We may have difficulty finding such opportunities
or, if such opportunities are identified, we may not be able to complete such transactions for reasons including a failure to secure
necessary financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Any transactions
that we are able to identify and complete may involve a number of risks, including:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The diversion of our management&#8217;s attention from the management of our existing business
to the integration of the operations and personnel of the acquired or combined business or joint venture;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Material business risks not identified in due diligence;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Possible adverse effects on our operating results during the integration process;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Substantial acquisition-related expenses, which would reduce our net income, if any, in future
years;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The loss of key employees and customers as a result of changes in management; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Our possible inability to achieve the intended objectives of the transaction.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">In addition, we
may not be able to integrate, operate, maintain or manage, successfully or profitably, our newly acquired operations or employees.
We may not be able to maintain uniform standards, controls, policies and procedures, and this may lead to operational inefficiencies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Any of these difficulties
could have a material adverse effect on our business, financial condition, results of operations and cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"><B><I>If we are unable to introduce
innovative products, demand for our products may decrease.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Our future operating
results are dependent on our ability to develop, introduce and market innovative products continually, to modify existing products,
to respond to technological change and to customize some of our products to meet customer requirements. There are numerous risks
inherent in this process, including the risks that we will be unable to anticipate the direction of technological change or that
we will be unable to develop and market new products and applications in a timely or cost-effective manner to satisfy customer
demand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"><B><I>Our markets are highly competitive,
and we may lose business to larger and better-financed competitors.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Our markets are
highly competitive worldwide, with low transportation costs and few import barriers. We compete principally on the basis of product
quality and reliability, availability, customer service, technological innovation, timely delivery and price. Within the industries
in which we compete, competition has become increasingly concentrated and global in recent years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Many of our major
competitors, some of which are larger than us, and potential competitors have substantially greater financial resources and more
extensive engineering, manufacturing, marketing and customer support capabilities. If we are unable to successfully compete against
current and future competitors, our operating results will be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"><B><I>Our success depends on our ability
to retain key management and technical personnel and attracting, retaining and training new technical personnel.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Our future growth
and success will depend in large part upon our ability to recruit highly-skilled technical personnel, including engineers, and
to retain our existing management and technical personnel. The labor markets in which we operate are highly competitive and some
of our operations are not located in highly populated areas. As a result, we may not be able to recruit and retain key personnel.
Our failure to hire, retain or adequately train key personnel could have a negative impact on our performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><B><I>We purchase certain key components
and raw materials from single or limited sources and could lose sales if these sources fail to fulfill our needs</I></B><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">&nbsp;</FONT><B><I>for
any reason, including the inability to obtain these key components or raw materials due to the recent novel coronavirus (COVID-19)
outbreak.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in">If single-source
components or key raw materials were to become unavailable on satisfactory terms, and we could not obtain comparable replacement
components or raw materials from other sources in a timely manner, our business, results of operations and financial condition
could be harmed. On occasion, one or more of the components used in our products have become unavailable, resulting in unanticipated
redesign and related delays in shipments. Recently, the coronavirus outbreak has caused a global pandemic that has disrupted supply
chains and the ability to obtain components and raw materials around the world for all companies, including us. We cannot give
assurance that we will be able to obtain the necessary components and raw materials necessary to conduct our business during the
coronavirus pandemic, and we also cannot give assurance that similar delays will not occur in the future. In addition, our suppliers
may be impacted by compliance with environmental regulations including RoHS and Waste Electrical and Electronic Equipment (&ldquo;WEEE&rdquo;),
which could disrupt the supply of components or raw materials or cause additional costs for us to implement new components or raw
materials into our manufacturing processes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>As a supplier to U.S. Government defense contractors, we are
subject to a number of procurement regulations and other requirements and could be adversely affected by changes in regulations
or any negative findings from a U.S. Government audit or investigation.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">A number of our
customers are U.S. Government contractors. As one of their suppliers, we must comply with significant procurement regulations and
other requirements. We also maintain registration under the International Traffic in Arms Regulations for all of our production
facilities. One of those production facilities must comply with additional requirements and regulations for its production processes
and for selected personnel in order to maintain the security of classified information. These requirements, although customary
within these markets, increase our performance and compliance costs. If any of these various requirements change, our costs of
complying with them could increase and reduce our operating margins.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We operate in a
highly regulated environment and are routinely audited and reviewed by the U.S.&nbsp;Government and its agencies such as the Defense
Contract Audit Agency and Defense Contract Management Agency. These agencies review our performance under our contracts, our cost
structure and our compliance with applicable laws, regulations, and standards, as well as the adequacy of, and our compliance with,
our internal control systems and policies. Systems that are subject to review include our purchasing systems, billing systems,
property management and control systems, cost estimating systems, compensation systems and management information systems.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Any costs found
to be improperly allocated to a specific contract will not be reimbursed or must be refunded if already reimbursed. If an audit
uncovers improper or illegal activities, we may be subject to civil and criminal penalties and administrative sanctions, which
may include termination of contracts, forfeiture of profits, suspension of payments, fines and suspension, or prohibition from
doing business as a supplier to contractors who sell products and services to the U.S.&nbsp;Government. In addition, our reputation
could be adversely affected if allegations of impropriety were made against us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">From time to time,
we may also be subject to U.S.&nbsp;Government investigations relating to our or our customers&rsquo; operations and products,
and are expected to perform in compliance with a vast array of federal laws, including the Truth in Negotiations Act, the False
Claims Act, the International Traffic in Arms Regulations promulgated under the Arms Export Control Act, and the Foreign Corrupt
Practices Act. We or our customers may be subject to reductions of the value of contracts, contract modifications or termination,
and the assessment of penalties and fines, which could negatively impact our results of operations and financial condition, or
result in a diminution in revenue from our customers, if we or our customers are found to have violated the law or are indicted
or convicted for violations of federal laws related to government security regulations, employment practices or protection of the
environment, or are found not to have acted responsibly as defined by the law. Such convictions could also result in suspension
or debarment from serving as a supplier to government contractors for some period of time. Such convictions or actions could have
a material adverse effect on us and our operating results. The costs of cooperating or complying with such audits or investigations
may also adversely impact our financial results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><B><I>Our products are complex and may
contain errors or design flaws, which could be costly to correct.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">When we release
new products, or new versions of existing products, they may contain undetected or unresolved errors or defects. The vast majority
of our products are custom-designed for requirements of specific OEM systems. The expected business life of these products ranges
from less than one year to more than 10 years depending on the application. Some of the customizations are modest changes to existing
product designs while others are major product redesigns or new product platforms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Despite testing,
errors or defects may be found in new products or upgrades after the commencement of commercial shipments.&nbsp;Undetected errors
and design flaws have occurred in the past and could occur in the future.&nbsp;These errors could result in delays, loss of market
acceptance and sales, diversion of development resources, damage to the Company's reputation, product liability claims and legal
action by its&nbsp;customers and third parties, failure to attract new customers and increased service costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"><B><I>Communications and network infrastructure
equipment manufacturers increasingly rely upon contract manufacturers, thereby diminishing our ability to sell our products directly
to those equipment manufacturers.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">There is a continuing
trend among communications and network infrastructure equipment manufacturers to outsource the manufacturing of their equipment
or components. As a result, our ability to persuade these OEMs to utilize our products in customer designs could be reduced and,
in the absence of a manufacturer&rsquo;s specification of our products, the prices that we can charge for them may be subject to
greater competition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"><B><I>Future changes in our environmental
liability and compliance obligations may increase costs and decrease profitability.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Our present and
past manufacturing operations, products, and/or product packaging are subject to environmental laws and regulations governing air
emissions, wastewater discharges, and the handling, disposal and remediation of hazardous substances, wastes and other chemicals.
In addition, more stringent environmental regulations may be enacted in the future, and we cannot presently determine the modifications,
if any, in our operations that any future regulations might require, or the cost of compliance that would be associated with these
regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Environmental laws
and regulations may cause us to change our manufacturing processes, redesign some of our products, and change components to eliminate
some substances in our products in order to be able to continue to offer them for sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify"><B><I>We have significant international
operations and sales to customers outside of the United States that subject us to certain business, economic and political risks.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We have office and
manufacturing space in Noida, India, and a sales office in Hong Kong. Additionally, foreign revenues (primarily to Malaysia) for
the years ended December 31, 2019 and December 31, 2018 and the six month period ended June 30, 2020 accounted for 26.6%, 24.9%,
and 26.1% of our consolidated revenues for the respective periods. We anticipate that sales to customers located outside of the
United States will continue to be a significant part of our revenues for the foreseeable future. Our international operations and
sales to customers outside of the United States subject our operating results and financial condition to certain business, economic,
political, health, regulatory and other risks, including but not limited to:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Political and economic instability in countries in which our products are manufactured and sold;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Expropriation or the imposition of government controls;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Responsibility to comply with anti-bribery laws such as the U.S. Foreign Corrupt Practices Act
and similar anti-bribery laws in other jurisdictions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Sanctions or restrictions on trade imposed by the United States government;</TD></TR></TABLE>

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Export license requirements;</TD></TR></TABLE>

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Trade restrictions;</TD></TR></TABLE>

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Currency controls or fluctuations in exchange rates;</TD></TR></TABLE>

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">High levels of inflation or deflation;</TD></TR></TABLE>

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Difficulty in staffing and managing non-U.S. operations;</TD></TR></TABLE>

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Greater difficulty in collecting accounts receivable and longer payment cycles;</TD></TR></TABLE>

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Changes in labor conditions and difficulties in staffing and managing international operations;</TD></TR></TABLE>

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">The impact of the current coronavirus outbreak; and</TD></TR></TABLE>

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Limitations on insurance coverage against geopolitical risks, natural disasters and business operations.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Additionally, to
date, very few of our international revenue and cost obligations have been denominated in foreign currencies. As a result, changes
in the value of the United States dollar relative to foreign currencies may affect our competitiveness in foreign markets. We do
not currently engage in foreign currency hedging activities but may do so in the future to the extent that we incur a significant
amount of foreign-currency denominated liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>We rely on information technology
systems to conduct our business, and disruption, failure or security breaches of these systems could adversely affect our business
and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-align: justify; text-indent: 0.5in">We rely on information
technology (&ldquo;IT&rdquo;) systems in order to achieve our business objectives. We also rely upon industry accepted security
measures and technology to securely maintain confidential information maintained on our IT systems. However, our portfolio of hardware
and software products, solutions and services and our enterprise IT systems may be vulnerable to damage or disruption caused by
circumstances beyond our control such as catastrophic events, power outages, natural disasters, computer system or network failures,
computer viruses, cyber-attacks or other malicious software programs. The failure or disruption of our IT systems to perform as
anticipated for any reason could disrupt our business and result in decreased performance, significant remediation costs, transaction
errors, loss of data, processing inefficiencies, downtime, litigation and the loss of suppliers or customers. A significant disruption
or failure could have a material adverse effect on our business operations, financial performance and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>Cybersecurity risks and cyber
incidents may adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential
information, and/or damage to our business relationships, all of which could negatively impact our financial results.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">A cyber incident
is considered to be any adverse event that threatens the confidentiality, integrity or availability of our information resources.
These incidents may be an intentional attack or an unintentional event and could involve gaining unauthorized access to our information
systems for purposes of misappropriating assets, stealing confidential information, corrupting data or causing operational disruption.
The result of these incidents may include disrupted operations, misstated or unreliable financial data, liability for stolen assets
or information, increased cybersecurity protection and insurance costs, litigation and damage to our tenant and investor relationships.
As our reliance on technology increases, so will the risks posed to our information systems, both internal and those we outsource.
There is no guarantee that any processes, procedures and internal controls we have implemented or will implement will prevent cyber
intrusions, which could have a negative impact on our financial results, operations, business relationships or confidential information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>If we
fail to correct any material weakness that we identify in our internal control over financial reporting or otherwise fail to maintain
effective internal control over financial reporting, we may not be able to report our financial results accurately and timely,
in which case our business may be harmed, investors may lose confidence in the accuracy and completeness of our financial reports
and the price of our common stock may decline.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt; background-color: white">Our
management is responsible for establishing and maintaining adequate internal control over financial reporting and for evaluating
and reporting on our system of internal control. Our internal control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with GAAP. We are required to comply with the Sarbanes-Oxley Act and other rules that govern public companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 24.5pt; background-color: white">If
we identify material weaknesses in our internal control over financial reporting in the future, if we cannot comply with the requirements
of the Sarbanes-Oxley Act in a timely manner or attest that our internal control over financial reporting is effective, or if our
independent registered public accounting firm cannot express an opinion as to the effectiveness of our internal control over financial
reporting when required, we may not be able to report our financial results accurately and timely. As a result, investors, counterparties
and consumers may lose confidence in the accuracy and completeness of our financial reports. Accordingly, access to capital markets
and perceptions of our creditworthiness could be adversely affected, and the market price of our common stock could decline. In
addition, we could become subject to investigations by the stock exchange on which our securities are listed, the SEC or other
regulatory authorities, which could require additional financial and management resources. These events could have a material and
adverse effect on our business, operating results, financial condition and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>The Company has made a material investment in a special purpose
acquisition company that may not be successful. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The Company has
invested $3.35 million in LGL Systems Acquisition Holding Company, LLC, who serves as the sponsor (the &ldquo;Sponsor&rdquo;) of
LGL Systems Acquisition Corp., a special purpose acquisition company, commonly referred to as a &ldquo;SPAC&rdquo;, or blank check
company, formed for the purpose of effecting a business combination in the aerospace, defense and communications industries (the
 &ldquo;SPAC&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The Sponsor holds
20% of the shares in the SPAC along with 5,200,000 warrants at a strike price of $11.50. On November 7, 2019, the SPAC raised $172.5
million through the sale of 17.25 million shares and was listed as a publicly traded company on the NASDAQ Capital Market under
the ticker symbol &lsquo;DFNS&rsquo;. The initial public offering (the &ldquo;IPO&rdquo;) closed on November 12, 2019. Prior to
and immediately following the IPO, the Sponsor held 4,312,500 shares of the SPAC, which are restricted and non-tradable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If the SPAC is able
to complete a business combination it could be material to the Company. If the SPAC does not complete a business combination within
24 months from the closing of the SPAC&rsquo;s initial public offering, the proceeds from the sale of the private warrants will
be used to fund the redemption of the shares sold in the SPAC&rsquo;s initial public offering (subject to the requirements of applicable
law), and the private warrants will expire worthless. There is no assurance that the SPAC will be successful in completing a business
combination or that any business combination will be successful. The Company can lose its entire investment in the SPAC if a business
combination is not completed within 24 months or if the business combination is not successful, which may adversely impact the
Company&rsquo;s stockholder value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>The ongoing effects of the COVID-19
pandemic and associated global economic disruption and uncertainty have affected, and may further affect, our business, results
of operations and financial condition.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in">As previously indicated
in our Annual Report on Form 10-K for the year ended December 31, 2019, our results of operations are affected by certain economic
factors, including the closure of our facilities located in Noida, India on March 23, 2020.&nbsp;&nbsp;This facility resumed limited
operations on May 7, 2020 and was in full operation at the end of June 2020. The broader implications of the COVID-19 pandemic
on our results of operations and overall financial performance remain uncertain as well as&nbsp;the extent to which it will affect
our revenues and earnings. Although we believe we have sufficient liquidity and capital resources to effectively continue operations
for the foreseeable future, continued deterioration of worldwide credit and financial markets may limit our ability to raise capital
and financing may not be available to us in sufficient amounts, on acceptable terms, or at all. If we are unable to access sufficient
capital on acceptable terms, our business could be adversely impacted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in">In an effort to protect
the health and safety of our employees, we implemented various measures to reduce the impact of COVID-19 across our organization,
while also working to maintain business continuity. Consistent with government guidelines and mandates, these initiatives included
the adoption of social distancing policies, work-at-home arrangements, and suspending employee travel. Currently, while a few of
our administrative employees are working remotely from home in an effort to reduce the spread of the virus, most of our employees
are unable to work from home as we are primarily a manufacturer of products for the defense and aerospace industries and our employees
work must be performed within a controlled environment. A decline in the health and safety of our employees, including key employees,
or material disruptions to their ability to work either remotely or at one of our manufacturing facilities, could negatively affect
our ability to operate our business normally and have a material adverse impact on our results of operations or financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in">To the extent that
the COVID-19 virus continues to spread and affect the employee base or operations of our materials providers, disruptions in or
the inability to provide materials to us could negatively impact our business operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><A NAME="FORWARDLOOKINGSTATEMENTS"></A><B>FORWARD-LOOKING STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Information included
or incorporated by reference in this prospectus may contain forward-looking statements. Forward-looking statements, which involve
assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words &ldquo;may,&rdquo;
 &ldquo;should,&rdquo; &ldquo;expect,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;estimate,&rdquo; &ldquo;believe,&rdquo; &ldquo;intend&rdquo;
or the negative of these words or other variations on these words or comparable terminology, as they relate to future periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Examples of forward-looking
statements include, but are not limited to, statements we make regarding the Company&rsquo;s efforts to grow revenue, the Company&rsquo;s
expectations regarding fulfillment of backlog, the results of introduction of a new product line, future benefits to operating
margins and the adequacy of the Company&rsquo;s cash resources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Forward-looking
statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions.
As forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances
that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements.
They are neither statements of historical fact nor guarantees of assurances of future performance. Important factors that could
cause actual results to differ materially from those in the forward-looking statements include national and global economic, business,
competitive, market and regulatory conditions and the factors described under &ldquo;Risk Factors&rdquo; in this prospectus, in
our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Reports on Form 10-Q for the quarters ended
March 31, 2020 and June 30, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Further, we do not
undertake any obligation to publicly update any forward-looking statements. As a result, you should not place undue reliance on
these forward-looking statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><A NAME="USEOFPROCEEDS"></A><FONT STYLE="text-transform: uppercase"><B>Use
of Proceeds</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We will not receive
any proceeds from the distribution of the warrants. Assuming that all warrants are exercised, the net proceeds from the exercise
of the warrants will be approximately $12.989 million, after deducting our estimated expenses related to this offering including
legal, accounting, listing, and exercise fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We intend to use
the net proceeds from this offering for general corporate purposes, which may include working capital, general and administrative
expenses, capital expenditures and implementation of our strategic priorities. Pending the application of the net proceeds, we
may invest the proceeds in short-term, interest bearing, investment-grade marketable securities or money market obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><A NAME="PLANOFDISTRIBUTION"></A><B>PLAN OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">As soon as practicable
after the record date for the dividend, we will distribute the warrants to individuals who owned shares of our common stock on
the record date. If the warrants become exercisable as outlined in the section &ldquo;Description of Warrants &ndash; Exercisability,&rdquo;
the warrant agent will notify The Depository Trust Company, New York, New York, known as DTC, and mail to each warrant holder exercise
forms detailing the terms and procedure for exercise of the warrants. As warrants are exercised, the warrant agent will deliver
the shares of our common stock issued upon exercise of the warrants to stockholders and forward the proceeds from the warrant exercises
to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">To the extent that
our directors and officers held shares of our common stock as of the record date, they will receive the warrants. Our directors
and officers may also sell some or all of their warrants or their shares upon exercise of such warrants. This prospectus covers
any such sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We have agreed to
pay the warrant agent and transfer agent customary fees plus certain expenses in connection with the warrants. We have not employed
any brokers, dealers or underwriters in connection with the distribution of the warrants or any exercise or resale of the warrants.</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><A NAME="MARKETFORCOMMONEQUITYANDRELATEDSTOCKHOLDERMATTERS"></A><B>MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>Market for Common Equity</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Our common stock
is traded on the NYSE American under the symbol LGL. We have applied for listing the warrants on the NYSE American and expect trading
to commence on or around November 16, 2020 under the symbol LGL WS. The last reported sales price of our common stock on the NYSE
American on November 11, 2020, the last practicable date before the filing of this prospectus, was $9.82.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Based upon information
furnished by our transfer agent, at November 11, 2020, we had 415 holders of record of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">5,213,320 shares
of our common stock were outstanding as of October 15, 2020. If all of the warrants are exercised in full, there would be 6,264,984
shares of common stock outstanding.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>Stock Repurchase Program</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">On August 29, 2011,
our Board authorized the Company to repurchase up to 100,000 shares of its common stock in accordance with applicable securities
laws. This authorization increased the total number of shares authorized and available for repurchase under the Company&rsquo;s
existing share repurchase program to 540,000 shares, at such times, amounts and prices as the Company shall deem appropriate. Subject
to certain safe harbor rules, the timing, amounts, and manner in which the Company can repurchase shares is tied to prevailing
trading volumes and other limitations, which includes a general limitation to 25% of the average daily trading volume based on
the most recent prior four weeks. As of June 30, 2020, the Company had repurchased a total of 81,584 shares of common stock under
this program at a cost of $580,000, which shares are currently held in treasury.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>ATM Program</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">On January 22, 2020,
the Company entered into the Sales Agreement with Jefferies, as sales agent, pursuant to which the Company may offer and sell,
from time to time, through Jefferies, the Shares having an aggregate offering price of up to $15,000,000. Shares sold under the
Sales Agreement are 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 Shares pursuant to the Sales Agreement. During February
and March of 2020, there were 263,725 shares sold under the Sales Agreement, at an average price per share of $13.65 and generating
net proceeds of approximately $3,492,000 after brokerage charges of $108,000 were deducted and paid to Jefferies. As required under
the Sales Agreement, the Company obtained the prior consent of Jefferies in order to consummate this offering. The Sales Agreement
and ATM Offering remain in effect in accordance with their terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>Dividend Policy</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Our Board 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 technology acquisitions or other strategic ventures, and stockholders&rsquo; desire for
capital appreciation of their holdings. In addition, the covenants under MtronPTI&rsquo;s credit facility effectively place certain
limitations on its ability to make certain payments to its parent, including but not limited to payments of dividends and other
distributions, which effectively could limit the Company&rsquo;s ability to pay cash dividends to stockholders. No cash dividends
have been paid to the Company&rsquo;s stockholders since January 30, 1989, and none are expected to be paid for the foreseeable
future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><A NAME="DESCRIPTIONOFCAPITALSTOCK"></A><B>DESCRIPTION OF CAPITAL STOCK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">This prospectus
describes the general terms of our common stock and other securities we may issue. For a more detailed description of these securities,
you should read the applicable provisions of Delaware law and our certificate of incorporation (&ldquo;Certificate of Incorporation&rdquo;)
and by-laws, as amended (the &ldquo;By-laws&rdquo;). When we offer to sell a particular series of these securities, we will describe
the specific terms of the series in an applicable prospectus or prospectus supplement. Accordingly, for a description of the terms
of any series of securities, you must refer to both the prospectus supplement relating to that series and the description of the
securities contained in this prospectus. To the extent the information contained in a prospectus supplement differs from this summary
description, you should rely on the information in the prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Under our Certificate
of Incorporation, the total number of shares of all classes of stock that we have authority to issue is 10,000,000, consisting
entirely of shares of our common stock. As of October 15, 2020, there were 5,213,320 shares of common stock outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The description
of our capital stock is qualified by reference to our Certificate of Incorporation and our By-laws, which are incorporated by reference
as exhibits into the Registration Statement of which this prospectus is part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Subject to the prior
rights of holders of all classes of stock at the time outstanding having prior rights as to dividends, the holders of common stock
are entitled to receive such dividends, if any, as may from time to time be declared by our Board of Directors out of funds legally
available therefor. Under our Certificate of Incorporation, holders of common stock are entitled to one vote per share, and are
entitled to vote upon such matters and in such manner as may be provided by law. Holders of common stock have no preemptive, conversion,
redemption or sinking fund rights. Subject to the prior rights of holders of all classes of stock at the time outstanding having
prior rights as to liquidation, holders of common stock, upon the liquidation, dissolution or winding up of the Company, are entitled
to share equally and ratably in the assets of the Company. The outstanding shares of common stock are, and the shares of common
stock to be offered hereby when issued will be, fully paid and non-assessable. The rights, preferences and privileges of holders
of common stock are subject to any series of preferred stock that the Company may authorize and issue in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>Anti-Takeover Effects of Certain
Provisions of Delaware Law and our Charter Documents</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We are subject to
the provisions of Section 203 of the Delaware General Corporation Law. Under Section 203, we would generally be prohibited from
engaging in any business combination with any interested stockholder for a period of three years following the time that this stockholder
became an interested stockholder unless:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">prior to such time, our board of directors approved either the business combination or the transaction
that resulted in the stockholder becoming an interested stockholder;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder,
the interested stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, subject to
exceptions; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">at or subsequent to such time, the business combination is approved by the board of directors and
authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least two-thirds
of the outstanding voting stock that is not owned by the interested stockholder.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Under Section 203,
a &ldquo;business combination&rdquo; includes:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">any merger or consolidation involving the corporation and the interested stockholder;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">any sale, lease, exchange, mortgage, pledge, transfer or other disposition of 10% or more of the
assets of the corporation involving the interested stockholders;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">any transaction that results in the issuance or transfer by the corporation of any stock of the
corporation to the interested stockholder, subject to limited exceptions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">any transaction involving the corporation that has the effect of increasing the proportionate share
of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">any receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges
or other financial benefits provided by or through the corporation.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">In general, Section
203 defines an interested stockholder as an entity or person beneficially owning 15% or more of outstanding voting stock and any
entity or person affiliated with or controlling or controlled by such entity or person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Our Certificate
of Incorporation and By-laws include a number of provisions that may discourage, delay or prevent a merger, acquisition or other
change in control of the Company, even if such a change in control would be beneficial to our stockholders. These provisions include
prohibiting our stockholders from fixing the number of directors, and establishing advance notice requirements for stockholder
proposals that can be acted on at stockholder meetings and nominations to the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>Transfer Agent and Registrar</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The transfer agent and
registrar for our common stock is Computershare.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><A NAME="DESCRIPTIONOFTHEWARRANTS"></A><FONT STYLE="text-transform: uppercase"><B>Description
of the Warrants</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><I>The material
terms and provisions of the warrants are summarized below. The warrants will be issued in registered form under a warrant agreement,
dated as of November 10, 2020, by and among the Company and Computershare Inc. and Computershare Trust Company, N.A., as warrant
agent, which is attached hereto as Exhibit 4.4. The following description is subject to, and qualified in its entirety by, the
warrant agreement. You should review a copy of the warrant agreement for a complete description of the terms and conditions applicable
to the warrants.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>Exercisability</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Five (5) warrants
entitle their registered holder to purchase one (1) share of our common stock at the exercise price then in effect. The warrants
are &ldquo;European style warrants&rdquo; and will only become exercisable on the earlier of (i) the expiration date, November
16, 2025, and (ii) such date that the 30-day volume weighted average price per share, or VWAP, of our common stock is greater than
or equal to $17.50 (as adjusted for stock splits, stock dividends, combinations, reclassifications and similar events). Once the
warrants become exercisable, they may be exercised in accordance with the terms of the warrant agreement until their expiration
at 5:00 p.m., Eastern Time, on the expiration date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We will monitor
the VWAP of our common stock. Within four business days after the first trading day after the issuance of the warrants on which
our common stock has an average VWAP for the 10 consecutive trading days immediately prior to such date that is greater than or
equal to $17.50, we will instruct the warrant agent to give all warrant holders notice that the warrants may become exercisable
on a date prior to the expiration date and to provide instructions on how to exercise warrants if and when they become exercisable.
We will issue a press release and file a Current Report on Form 8-K to notify the public if the warrants become exercisable because
the average VWAP for our common stock for 30 consecutive trading days is greater than or equal to $17.50 promptly, but no later
than three business days after the warrants become exercisable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If the warrants
become exercisable because the average VWAP for our common stock for 30 consecutive trading days is greater than or equal to $17.50,
and not less than six weeks prior to the expiration date, the warrant agent will notify DTC and mail to each warrant holder exercise
forms detailing the terms and procedure for exercise of the warrants. As warrants are exercised, the warrant agent will deliver
the shares of our common stock issued upon exercise of the warrants to stockholders and forward the proceeds from the warrant exercises
to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">No warrants will
be exercisable unless at the time of exercise a prospectus relating to our common stock issuable upon exercise of the warrants
is current and the common stock has been registered or qualified or deemed to be exempt under the securities laws of the state
of residence of the holder of the warrants. Under the terms of the warrant agreement, we have agreed to meet these conditions and
use our best efforts to maintain a current prospectus relating to common stock issuable upon exercise of the warrants until the
expiration of the warrants. However, we cannot assure you that we will be able to do so, and if we do not maintain a current prospectus
related to the common stock issuable upon exercise of the warrants, holders will be unable to exercise their warrants and we will
not be required to settle any such warrant exercise. If the prospectus relating to the common stock issuable upon the exercise
of the warrants is not current or if the common stock is not qualified or exempt from qualification in the jurisdictions in which
the holders of the warrants reside, we will not be required to net cash settle or cash settle the warrant exercise, the warrants
may have no value, the market for the warrants may be limited and the warrants may expire worthless.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>Exercise Price and Adjustments</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The warrants have
an initial exercise price of $12.50 per share. Subject to certain excluded transactions, the warrants provide for adjustments to
the exercise price of the warrants following a number of corporate events, including (i) our issuance of a stock dividend or the
subdivision or combination of our common stock, (ii) our issuance of rights, options or warrants to purchase our common stock for
no consideration or for consideration at less than the market price of the common stock immediately preceding the announcement
date of the issuance, (iii) a distribution of capital stock of the Company or any subsidiary other than our common stock, rights
to acquire such capital stock, evidences of indebtedness or assets, (iv) our issuance of a cash dividend on our common stock, (v)
certain tender offers for our common stock by the Company or one or more of our wholly-owned subsidiaries and (vi) adjustments
in the Board&rsquo;s discretion, subject to certain notice requirements. The warrants also provide for adjustments to the number
of shares of common stock for which the warrants are exercisable following our issuance of a stock dividend or the subdivision
or combination of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>Business Combination or Reclassification of Common
Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If, at any time
warrants are outstanding there is: (i) any business combination (as defined in the warrant agreement) or (ii) reclassifications
of our common stock (other than as contemplated above), the right to exercise a warrant for our common stock shall be converted
into the right to exercise a warrant to acquire the number of shares of stock or other securities or property (including cash)
that the common stock issuable (at the time of such business combination or reclassification) upon exercise of such warrant immediately
prior to such business combination or reclassification would have been entitled to receive upon consummation of such business combination
or reclassification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>Manner of Exercise</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The warrants will
be exercisable, at the option of each holder, in whole or in part by delivering to the warrant agent a duly executed exercise notice
accompanied by payment in full for the number of shares of our common stock purchased upon such exercise. The warrants are exercisable
for cash only.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>Transferability of Warrants; Listing</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The warrants will
be issued in registered form under a warrant agency agreement between the Company and Computershare Inc. and Computershare Trust
Company, N.A., as warrant agent. The warrants may be sold, transferred or assigned, in whole or in part. We have applied for listing
the warrants on the NYSE American and expect trading to commence on or around November 16, 2020 under the symbol LGL WS. The Company&rsquo;s
common stock is listed on the NYSE American under the symbol LGL.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>Fractional Shares</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Warrants may be
exercised only for whole numbers of shares of our common stock. Whenever any fraction of a share of common stock would otherwise
be required to be issued or distributed, the actual issuance or distribution made shall reflect a rounding of such fraction up
or down, as applicable, to the nearest whole share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><I>Rights as a Stockholder</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Until warrant holders
acquire shares of our common stock upon exercise of the warrants, warrant holders will have no rights with respect to the shares
of our common stock underlying such warrants. Upon the acquisition of shares of our common stock upon exercise of the warrants,
the holders thereof will be entitled to exercise the rights of a common stockholder only as to matters for which the record date
for the matter occurs after the exercise date of the warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><A NAME="LEGALMATTERS"></A><B>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The validity of
the securities being offered by this prospectus have been passed upon for us by Olshan Frome Wolosky LLP, New York, New York.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><A NAME="EXPERTS"></A><B>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The consolidated
financial statements of The LGL Group, Inc. as of December 31, 2019 and 2018 and for each of the years in the two-year period ended
December 31, 2019, incorporated in this prospectus by reference from The LGL Group, Inc.&rsquo;s Annual Report on Form 10-K for
the year ended December 31, 2019, have been audited by RSM US LLP, an independent registered public accounting firm, as stated
in their report thereon, which report expresses an unqualified opinion, incorporated herein by reference, and have been incorporated
in this prospectus and registration statement in reliance upon such report and upon the authority of such firm as experts in accounting
and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><A NAME="INCORPORATIONBYREFERENCE"></A><B>INCORPORATION BY REFERENCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The SEC allows us
to incorporate by reference information contained in documents we file with it, which means that we can disclose important information
to you by referring you to those documents already on file with the SEC that contain that information. The information incorporated
by reference is considered to be part of this prospectus, and later information that we file with the SEC will automatically update
and supersede this information. We incorporate by reference the documents listed below and any future information filed (rather
than furnished) with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange
Act&rdquo;), between the date of this prospectus and the termination of the offering of the securities covered by this prospectus,
provided, however, that we are not incorporating any information furnished under any of Item 2.02 or Item 7.01 of any Current Report
on Form 8-K (and exhibits filed on such form that are related to such items):</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC
on March 30, 2020; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2020, filed with the SEC
on May 14, 2020, and our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2020, filed with the SEC on August
12, 2020; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">our Current Reports on Form 8-K, filed with the SEC on January 23, 2020, February 21, 2020 (relating
to Items 5.01 and 9.01), February 26, 2020, March 31, 2020, April 20, 2020, May 15, 2020, July 6, 2020, August 27, 2020, October
27, 2020 and October 29, 2020; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the description of our common stock contained in our Current Report on Form 8-K filed with the
SEC on October 30, 2013, including any amendments thereto or reports filed for the purpose of updating such descriptions.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt"><A HREF="#TableOfContents">TABLE OF CONTENTS</A>&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><A NAME="WHEREYOUCANFINDMOREINFORMATION"></A><B>WHERE YOU CAN FIND MORE INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We file annual,
quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public
at the SEC&rsquo;s web site at http://www.sec.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Upon written or
oral request, we will provide at no cost to the requester a copy of all of the information that has been incorporated by reference
in this prospectus but not delivered with this prospectus. You may obtain copies of these documents from us, without charge (other
than exhibits, unless the exhibits are specifically incorporated by reference), by requesting them in writing or by telephone at
the following address:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">The LGL Group, Inc.<BR>
2525 Shader Road<BR>
Orlando, Florida 32804<BR>
(407) 298-2000<BR>
Attention: Corporate Secretary</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"></P>

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