LGL GROUP INC

2. Summary of Significant Accounting Policies

During thethree andsix months ended* June 30, 2024*, there wereno material changes to our significant accounting policies included in the2023 Annual Report.For additional information, refer to Note2* to the audited Consolidated Financial Statements in the2023 * Annual Report.

Use of Estimates

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

Impairment of Long-Lived Assets

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

We performed an assessment to determine if there were any indicators of impairment as a result of the operating conditions resulting as of the periods ended* June 30, 2024* and* December 31, 2023*. We concluded that, while there were events and circumstances in the macro-environment that did impact us, we didnot experience any entity-specific indicators of asset impairment andno triggering events occurred.

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Future Application of Accounting Standards

Segment Reporting

In* November 2023,the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU")2023-07, "Segment Reporting (Topic280*) - Improvements to Reportable Segment Disclosures" ("ASU2023-07"), to address improvements to reportable segment disclosures. The standard primarily requires the following disclosure on an annual and interim basis: (i) significant segment expenses that are regularly provided to chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss; and (ii) other segment items and description of its composition. The standard also requires current annual disclosures about a reportable segment's profits or losses and assets to be disclosed in interim periods and the title and position of the CODM with an explanation of how the CODM uses the report measure(s) of segment profits or losses in assessing segment performance. The provisions of the standard are effective for public companies for fiscal years beginning after* December 15, 2023,and interim periods within fiscal years beginning after December 15, 2024,*with early adoption permitted. The standard is applied retrospectively to all prior periods presented. We are assessing the impact of this standard.

Income Taxes

In* December 2023,the FASB issued ASU2023*-09, "Income Taxes (Topic740*) - Improvements to Income Tax Disclosures"* ("ASU2023-09"). The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid. The provisions of the standard are effective for public companies for fiscal years beginning after* December 15, 2024,*with early adoption permitted. This standard applies prospectively; however, retrospective application is permitted. We are assessing the impact of this standard.