UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K/A

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported):  August 8, 2023

MachTen, Inc.
(Exact Name of Registrant as Specified in Its Charter)

Delaware
  
000-56553
  
92-3979418
(State or other Jurisdiction of Incorporation)
  
(Commission File Number)
  
(IRS Employer Identification No.)

1516 Barlow Street, Suite D, Traverse City, MI
  
49686
(Address of Principal Executive Offices)
  
(Zip Code)

Registrant’s telephone number, including area code: (855) 642-4227

 
(Former name or former address if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the follow provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class
Trading Symbol
Name of each exchange on which registered
N/A
N/A
N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ☒

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

Introductory Note

As previously reported, on August 31, 2023, LICT Corporation (“LICT”) distributed to the holders of its common stock, by way of a pro rata dividend (the “Distribution”), 81% of the common stock of MachTen, Inc. (“MachTen” or the “Company”).  Prior to the Distribution and in contemplation thereof, on August 8, 2023, the Company entered into a Contribution Agreement with LICT, pursuant to which LICT contributed all the shares of its wholly-owned subsidiary, LMT Holding Corporation, a Delaware corporation (“LMT Holding”), and each of LMT Holding’s indirect wholly-owned operating subsidiaries which operate in Michigan providing regulated and unregulated internet access broadband and communications services, in exchange for (i) 3,172,407 shares of MachTen’s common stock and (ii) a cash dividend to be paid in the amount of $15 million (the “Contribution”).

This Amendment No. 1 to Form 8-K (this “Amendment”) amends and supplements the Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on August 14, 2023 (the “Original Form 8-K”) to (i) incorporate the information set forth under Item 1.01 of the Original Form 8-K into Item 2.01 hereof, and (ii) provide the unaudited pro forma financial information of the Company reflecting the performance of the Company’s businesses after giving effect to the Contribution, as required under Item 9.01 of Form 8-K. No other modifications to the Original Form 8-K are being made by this Amendment. This Amendment should be read in connection with the Original Form 8-K, which provides a more complete description of the Contribution.

Item 2.01
Completion of Acquisition or Disposition of Assets.

The information set forth in Item 1.01 of the Original Form 8-K and in the Introductory Note above is incorporated herein by reference.

Item 9.01.
Financial Statements and Exhibits.
 
  (b)
Pro Forma Financial Information

The following unaudited pro forma condensed combined financial statements of the Company reflecting the performance of the Company’s businesses after giving effect to the Contribution are attached hereto as Exhibit 99.1 and incorporated herein by reference:

  •
Unaudited pro forma condensed consolidated balance sheet as of June 30, 2023;

•
Unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2023; and

•
Notes to the unaudited pro forma condensed combined financial information.


(d)
Exhibits.

Exhibit
No.
Description
   
Unaudited Pro Forma Condensed Combined Financial Statements.
   
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)

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

 
MACHTEN, INC.
  
         
Dated: October 24, 2023
By:
 /s/ Stephen J. Moore
  
   
Name:
Stephen J. Moore
  
   
Title:
Interim Chief Financial Officer
  


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Exhibit 99.1

MACHTEN, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION

As previously reported, on August 31, 2023, LICT Corporation (“LICT”) distributed to the holders of its common stock, by way of a pro rata dividend (the “spin-off”), 81% of the common stock of MachTen, Inc. (“MachTen” or the “Company”).  Prior to the spin-off and in contemplation thereof, on August 8, 2023, the Company entered into a Contribution Agreement with LICT, pursuant to which LICT contributed all the shares of its wholly-owned subsidiary, LMT Holding Corporation, a Delaware corporation (“LMT Holding”), and each of LMT Holding’s indirect wholly-owned operating subsidiaries which operate in Michigan providing regulated and unregulated internet access broadband and communications services, in exchange for (i) 3,172,407 shares of MachTen’s common stock and (ii) a cash dividend in the amount of $15 million (the “Contribution”).

The accompanying pro forma condensed consolidated financial information was prepared in accordance with Article 11 of Regulation S-X under the Exchange Act and present the pro forma statement of operations and pro forma balance sheet of MAC based on the historical carve-out financial statements of LMT Holding after giving effect to the spin-off. The unaudited pro forma condensed consolidated financial statements have been prepared to reflect transaction accounting and autonomous entity adjustments to present the financial condition and results of operations as if we were a separate stand-alone entity. MAC had nominal assets and no liabilities, and conducted no operations prior to the date of this information statement. Therefore, we believe that a presentation of the historical results of MAC would not be meaningful. Accordingly, the following pro forma condensed consolidated financial information includes only the financial data of LMT Holding as of June 30, 2023.
 
The accompanying MAC pro forma financial statements are presented for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved if the transactions had been consummated for the periods presented or that will be achieved in the future. The pro forma financial statements do not reflect the costs of any integration activities or benefits that may result from realization of revenue growth or operational synergies expected to result from the transactions. The pro forma financial statements do not include management adjustments.
 
The unaudited pro forma balance sheet as of June 30, 2023 has been prepared giving effect to the spin-off as if this transaction had occurred as of June 30, 2023. The unaudited pro forma statement of operations for the six months ended June 30, 2023 has been prepared giving effect to the spin-off as if this transaction had occurred on January 1, 2023.
 
The unaudited pro forma balance sheet and the unaudited pro forma statement of operations for the six months ended June 30, 2023 have been prepared to reflect transaction accounting and autonomous entity adjustments to the Company’s historical consolidated financial statements to present the financial condition and results of operations as if we were a separate stand-alone entity.
 
In addition, throughout the periods presented in the pro forma financial statements, the operations of LMT Holding were conducted and accounted for as part of LICT using accounting conventions applicable to LMT Holding that could differ in the future. The audited historical carve-out consolidated financial statements and unaudited historical condensed consolidated financial statements of LMT Holding have been derived from LMT Holding accounting records and reflect certain allocations of expenses. All of the allocations and estimates in such financial statements are based on assumptions that LMT Holding management believes are reasonable. The historical condensed consolidated carve-out financial statements of the LMT Holding do not necessarily represent the financial position or results of operations of MAC had it been operated as a standalone company during the periods or at the dates presented.
 
We expect to enter into a Transitional Services Agreement with LICT under which limited services will be provided to us upon consummation of the transactions until the applicable term for each service has expired or has otherwise been terminated. We do not expect the cost of these services to be substantially different from expenses reflected in our historical financial statements. See “Ancillary Agreements” for further discussion of the Transitional Services Agreement.
 
The unaudited pro forma condensed consolidated financial information presented below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and LMT Holding’s historical annual consolidated carve-out financial statements and corresponding notes thereto included elsewhere in this information statement. The unaudited pro forma consolidated financial information reflects certain known impacts as a result of the Distribution to separate the Company from LICT.
 
This unaudited pro forma condensed consolidated financial information has been presented for informational purposes only and is not intended to reflect the results of operations or the financial position of LMT Holding which would have actually resulted had the spin-off been effected on the dates indicated. Furthermore, the unaudited pro forma condensed consolidated financial information is not necessarily indicative of the results of operations that may be achieved in the future.  They should be read in conjunction with the historical financial statements and notes thereto of LMT Holding.
 
------------

1
MachTen, Inc.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of June 30, 2023
(in thousands, except share and per share data)

   
LMT
(Historical)
    
Transaction Adjustments
          
Autonomous Entity Adjustments
          
Pro Forma
  
ASSETS
                                    
Current assets:
                                    
Cash and cash equivalents
  
$
2,443
    
$
15,000
      
A.
    
$
—
          
$
2,443
  
 
            
(15,000
)
    
B.
                        
Accounts receivable, less allowances for expected credit loss of $13 and $13 as of June 30, 2023 and December 31, 2022
    
923
      
—
              
—
            
923
  
Materials and supplies
    
2,033
      
—
              
—
            
2,033
  
Other current assets
    
537
      
—
              
—
            
537
  
Total current assets
    
5,936
      
——
              
—
            
5,936
  
Property, plant and equipment, net
    
22,051
      
—
              
—
            
22,051
  
Right-of-use assets, net
    
702
      
—
              
—
            
702
  
Goodwill
    
100
      
—
              
—
            
100
  
Other noncurrent assets
    
70
      
—
              
—
            
70
  
Total assets
  
$
28,859
    
$_ --
            
$
—
          
$
28,859
  
                                               
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                              
Current liabilities:
                                              
Trade accounts payable
  
$
531
    
$
—
            
$
—
          
$
531
  
Accrued liabilities
    
2,362
      
405
    
C. D.
      
22
      
E.
      
2,789
  
Current operating lease liability
    
77
      
—
              
—
              
77
  
Total current liabilities
    
2,970
      
405332
              
22
              
3.397
  
CoBank revolver
    
—
      
15,000
      
A.
      
—
              
15,000
  
Deferred income taxes
    
2,718
      
—
                              
2,718
  
Long term operating lease liability
    
671
      
—
              
—
              
671
  
Asset retirement obligation
    
142
      
—
              
—
              
142
  
Other noncurrent liabilities
    
26
      
—
              
—
              
26
  
Total liabilities
    
6,527
      
15,405
              
22
              
21,954
  
                                                 
Shareholders’ equity:
                                                
Additional paid-in capital
    
2,800
      
44
      
F.
      
—
              
2,844
  
Retained earnings
    
19,532
      
(15,449
)
    
B.
      
(22
)
    
E.
      
4,061
  
                                                 
Total shareholders’ equity
    
22,332
      
(15,405
)
            
(22
)
            
6,905
  
Total liabilities and shareholders’ equity
  
$
28,859
    
$
--
            
$
--
            
$
28,859
  

2
MachTen, Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the Six Months Ended June 30, 2023
     (in thousands, except per share data)

Income Statement Data
  
LMT
(Historical)
    
Transaction Adjustments
          
Autonomous Entity Adjustments
          
Pro Forma
  
Revenues
  
$
7,856
    
$
—
          
$
—
          
$
7,856
  
                                             
Operating Costs:
                                            
Cost of revenue, excluding depreciation
    
2,700
      
—
            
—
            
2,700
  
General and administrative
    
1,452
      
44
      
F.
      
30
      
E.
      
1,526
  
Depreciation
    
1,012
      
—
              
—
              
1,012
  
Total Costs and Expenses
    
5,164
      
44
              
30
              
5,238
  
                                                 
Operating profit
    
2,692
      
(44
)
            
(30
)
            
2,618
  
                                                 
Other Income
                                                
Interest Expense
    
—
      
(563
)
    
C.
      
—
              
(563
)
Investment income
    
33
      
—
              
—
              
33
  
Total Other Income
    
33
      
(563
)
            
—
              
(530
)
                                                 
Income before income taxes
    
2,725
      
(607
)
            
(30
)
            
2,0880
  
                                                 
(Provision) benefit for income taxes
  
$
(722
)
    
158
      
D.
      
8
      
D.
      
(556
)
                                                 
Net Income
  
$
2,003
    
$
(449
)
          
$
(22
)
          
$
1,532
  
                                                 
Net income per share:
  
$
20,030
                                    
$
15,320
  
                                                 
Weighted Average Common Shares Outstanding
    
100
                                      
100
  

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Notes.

A.
Reflects LMT Holding’s anticipated draw on its senior secured revolving credit facility of $20.0 million (“revolver”) with CoBank for $15.0 million.

B.
Reflects LMT Holding’s declared distribution to LICT of $15.0 million.

C.
Reflects the impact on interest expense related to the Company’s draw on its revolver, assuming an interest rate of 7.5%.

D.
Reflects the impact of the income tax effects of the pro forma adjustments using a blended federal and state statutory tax rate of 26.0% for the year ended June 30, 2023.

E.
In connection with the spin-off transaction, LMT will enter into the Transitional Services Agreement and pay LICT a fee of $5,000 per month for three months post-transaction.

F.
Reflects the stock compensation for restricted stock awards granted at the time of the spin-off transaction.


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