MachTen (MACT) 10-Q 28 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 24, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	000-56553
Entity Registrant Name	MachTen, Inc.
Entity Central Index Key	0001957783
Entity Tax Identification Number	92-3979418
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	1516 Barlow Street
Entity Address, Address Line Two	Suite D
Entity Address, City or Town	Traverse City
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	49686
City Area Code	(855)
Local Phone Number	642-4227
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,167,222

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 2,443	$ 1,202
Accounts receivable, less allowances for expected credit loss of $13 and $13 as of June 30, 2023 and December 31, 2022	923	868
Materials and supplies	2,033	1,408
Other current assets	537	507
Total current assets	5,936	3,985
Property, plant and equipment, net	22,051	20,818
Right-of-use assets, net	702	747
Goodwill	100	100
Other noncurrent assets	70	70
Total assets	28,859	25,720
Current liabilities:
Trade accounts payable	531	3,362
Accrued liabilities	2,362	1,157
Current operating lease liability	77	74
Total current liabilities	2,970	4,593
Deferred income taxes	2,718	2,726
Long term operating lease liability	671	710
Asset retirement obligation	142	136
Other noncurrent liabilities	26	26
Total liabilities	6,527	8,191
Shareholders’ equity:
Additional paid-in capital	2,800
Retained earnings	19,532	17,529
Total shareholders’ equity	22,332	17,529
Total liabilities and shareholders’ equity	$ 28,859	$ 25,720

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for expected credit loss	$ 13	$ 13

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ / shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenues	$ 3,985	$ 3,954	$ 7,856	$ 7,862
Operating Costs:
Cost of revenue, excluding depreciation	1,331	1,281	2,700	2,496
General and administrative	713	687	1,452	1,278
Depreciation	506	508	1,012	1,113
Total Costs and Expenses	2,550	2,476	5,164	4,887
Operating profit	1,435	1,478	2,692	2,975
Other Income
Investment income	16	1	33	1
Total Other Income	16	1	33	1
Income before income taxes	1,451	1,479	2,725	2,976
Provision for income taxes	(391)	(426)	(722)	(824)
Net Income	$ 1,060	$ 1,053	$ 2,003	$ 2,152
Net income per share:	$ 10,600	$ 10,530	$ 20,030	$ 21,520
Weighted-average shares outstanding:	100	100	100	100

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock	Retained Earnings	APIC	Total
Beginning balance, value at Dec. 31, 2021		$ 13,512		$ 13,512
Shares outstanding at Dec. 31, 2021	100
Net Income	$ 0	1,099	0	1,099
Distribution to LICT		(345)		(345)
Ending balance, value at Mar. 31, 2022		14,266		14,266
Shares outstanding at Mar. 31, 2022	100
Beginning balance, value at Dec. 31, 2021		13,512		13,512
Shares outstanding at Dec. 31, 2021	100
Net Income				2,152
Ending balance, value at Jun. 30, 2022		13,860		13,860
Shares outstanding at Jun. 30, 2022	100
Beginning balance, value at Mar. 31, 2022		14,266		14,266
Shares outstanding at Mar. 31, 2022	100
Net Income	$ 0	1,053	0	1,053
Distribution to LICT		(1,459)		(1,459)
Ending balance, value at Jun. 30, 2022		13,860		13,860
Shares outstanding at Jun. 30, 2022	100
Beginning balance, value at Dec. 31, 2022		17,529		17,529
Shares outstanding at Dec. 31, 2022	100
Net Income	$ 0	943	0	943
Contributions from LICT			2,100	2,100
Ending balance, value at Mar. 31, 2023		18,472	2,100	20,572
Shares outstanding at Mar. 31, 2023	100
Beginning balance, value at Dec. 31, 2022		17,529		17,529
Shares outstanding at Dec. 31, 2022	100
Net Income				2,003
Ending balance, value at Jun. 30, 2023		19,532	2,800	22,332
Shares outstanding at Jun. 30, 2023	100
Beginning balance, value at Mar. 31, 2023		18,472	2,100	20,572
Shares outstanding at Mar. 31, 2023	100
Net Income	$ 0	1,060	0	1,060
Contributions from LICT			700	700
Ending balance, value at Jun. 30, 2023		$ 19,532	$ 2,800	$ 22,332
Shares outstanding at Jun. 30, 2023	100

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,003	$ 2,152
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	1,012	1,113
Accretion of asset retirement obligation	6	6
Deferred income tax provision	(8)	(211)
Change in operating assets and liabilities:
Trade accounts receivable, net of allowances	(55)	410
Trade accounts payable and accrued liabilities	941	384
Operating lease right of use asset	45	(309)
Operating lease liability	(36)	260
Other assets and liabilities	(660)	(366)
Net cash provided by operating activities	3,248	3,439
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(4,495)	(943)
Other	(312)	(173)
Net cash used in in investing activities	(4,807)	(1,116)
CASH FLOWS FROM FINANCING ACTIVITIES:
Contributions from (Distribution to) LICT, net	2,800	(1,804)
Net cash provided by (used in) financing activities	2,800	(1,804)
Net increase in cash and cash equivalents	1,241	519
Cash and cash equivalents at beginning of period	1,202	1,027
Cash and cash equivalents at end of period	2,443	1,546
Supplemental Cash Flow Information
Cash paid for income taxes	$ 215	$ 245

Business Organization and Natur

Business Organization and Nature of Operations	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Organization and Nature of Operations	Note 1. Business Organization and Nature of Operations Except as otherwise indicated or unless the context otherwise requires, “MAC,” “we,” “us,” “our” and the “Company” refer to MachTen, Inc., a Delaware corporation, and its subsidiaries, which after giving effect to the Spin-Off (as defined below) will succeed to LMT Holding Corporation (“LMT Holding”) and its subsidiaries. All references to “LICT” are: (i) for periods prior to the Spin-Off, LICT Corporation, individually or together with its subsidiaries as the context may require; and (ii) for periods after the Spin-Off, LICT Corporation, excluding the LMT Holding and its subsidiaries, after giving effect to the Spin-Off. We are a newly formed Delaware corporation organized to be the holding company for LMT Holding Corporation (“LMT Holding”), and each of LMT Holding’s indirect wholly-owned operating subsidiaries, Upper Peninsula Telephone Company (“UPTC”), Michigan Central Broadband Company, LLC (“MCBC”), and Alpha Communications Limited, Inc. (“Alpha” and together with LMT Holding, UPTC and MCBC, the “Michigan Businesses”), which operate in Michigan providing regulated and unregulated internet access broadband and communications services including local telephone service, network access, transport, long-distance service, cable television, rural local exchange carrier (“RLEC”), and competitive local exchange carrier (“CLEC”) services. Our principal executive offices are located at 1516 Barlow Street, Suite D, Traverse City, MI 49686. In July 2023, the Board of Directors of LICT approved the spin-off (the “Separation” or the “Spin-Off”) of 81% of the shares of common stock of MachTen to holders of LICT’s common stock (the “Distribution”) as of 5:00 p.m. New York City time on July 31, 2023 (the “record date”). Prior to the Spin-Off, on August 8, 2023, LICT underwent an internal reorganization and contributed the Michigan Businesses to MachTen. We expect the Distribution to become effective on August 31, 2023, with each LICT stockholder receiving 150 shares of MachTen’s common stock for every one share of LICT common stock held at close of business on the record date and LICT retaining 19% of the outstanding stock of MachTen. The condensed consolidated financial statements included in this report, which have been prepared in contemplation of the Spin-Off, have been presented on a “carve-out” basis from LICT’s consolidated financial statements using the historical results of operations, cash flows, assets and liabilities attributable to the Michigan Businesses and include allocation of expenses from LICT for certain functions, including general corporate expenses related to information technology, operations, financial reporting, legal, regulatory and compliance and human resource activities, which may not be representative of the future costs we will incur as an independent public company. See Note 14 “Subsequent Events” for a further discussion on the Spin-Off.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Note 2. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared on a “carve-out” basis from LICT’s financial statements and represent the accounts of LMT Holding as of June 30, 2023 (prior to the consummation of the Spin-Off) LMT Holding The Company’s telephone subsidiaries are regulated by both the Federal Communications Commission (“FCC”) and the Michigan Public Service Commission (“MPSC”). The subsidiaries follow the accounting prescribed by the Uniform System of Accounts of the FCC, the MPSC, and regulated accounting practices. Where applicable, this regulated accounting recognizes the economic effects of rate regulation by recording costs and a return on investment as such amounts are recovered through rates authorized by regulatory authorities. Accordingly, the Company is required to depreciate telephone plant over useful lives prescribed by regulators that would otherwise be determined by management. Criteria that would give rise to the discontinuance of regulatory accounting practices include (1) increasing competition restricting the Company’s wireline businesses’ ability to establish prices to recover specific costs, and (2) significant changes in the manner in which rates are set by regulators from cost-based regulation to another form of regulation. The Company periodically reviews the applicability of regulatory accounting guidelines based on the developments in its current regulatory and competitive environments. The accompanying condensed consolidated carve-out financial statements of the Company and select expenses of LICT that are allocated to the Company, show the historical condensed consolidated carve-out financial position, results of operations, changes in shareholders’ equity and cash flows of the Company. These condensed consolidated carve-out financial statements have been derived from the accounting records of the Company on a carve-out basis and should be read in conjunction with the accompanying notes thereto. These unaudited condensed consolidated carve out financial statements do not purport to reflect what the results of operations, financial position, or cash flows would have been had the Company operated as a separate, stand-alone entity during the periods presented. These unaudited condensed consolidated carve out financial statements should be read in conjunction with the financial statements and notes included in our audited consolidated financial statements for the year ended December 31, 2022.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 3. Summary of Significant Accounting Policies Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries. As described in Note 6, “Related Party Transactions,” certain transactions between the Company and LICT have been included in these unaudited condensed consolidated financial statements. All other intercompany profits, transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets; the valuation of deferred tax assets; liabilities for income tax uncertainties; the application of regulated accounting practices such as reserves for National Exchange Carrier Association (“NECA”) revenues; asset retirement obligations; and other contingencies. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. Cash Equivalents Cash equivalents consist of U.S. Treasury money market funds with original maturities of three months or less when purchased. Concentration of Risks Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents, accounts payable and accrued liabilities. It is management’s opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. Because of the short maturity and capacity of prompt liquidation of such assets and liabilities, the fair values of these financial instruments approximate their carrying values. Management believes the financial risks associated with these financial instruments are minimal. Cash equivalents held in U.S. Treasury money market funds as of June 30, 2023 and December 31, 2022 totaled $ 1.9 0.7 500,000 250,000 Revenue USF/Various State Funds/NECA The Company received revenue from the Federal Universal Service Fund (“USF”), various state funds and NECA in excess of ten percent of consolidated revenue for the three months ended June 30, 2023 and 2022. The revenue received from these sources for each of the three months ended June 30, 2023 and 2022 were $ 2.5 62 62 5.0 63 4.9 63 Fair Value Measurement The Company follows the authoritative guidance of ASC 820, Fair Value Measurement, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the condensed consolidated financial statements on a recurring basis, and of nonfinancial assets and nonfinancial liabilities that are recognized or disclosed at fair value in the condensed consolidated financial statements on a nonrecurring basis or are presented only in disclosures. Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in inactive markets. Level 3 inputs are unobservable. Asset Retirement Obligations The Company’s asset retirement obligation (“ARO”) primarily represents the fair value of a liability that the Company will incur to restore leased locations to their pre-lease conditions. In the determination of fair value for an ARO, the Company uses various assumptions and judgments, including such factors as the existence of a legal obligation, estimated amounts and timing of settlements, discount and inflation rates. AROs are primarily recorded for the Company’s leased fiber, leased tower sites, pole attachments and submarine cable. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for expected credit losses is the Company’s best estimate of the amount of expected credit losses in the Company’s existing accounts receivable. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends, current and anticipated future economic conditions and reasonable and supportable information. Receivable balances are reviewed on an aged basis and account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is doubtful. Due to the dispersed geographic nature of the Company’s operations and the residential nature of its customers, no single customer, or identifiable group of customers, accounts for a significant amount of the Company’s receivable balances, other than from NECA or the Universal Service Administrative Company (“USAC”), as discussed in Revenue Recognition Materials and Supplies Materials and supplies are stated at cost and are not held for sale, but rather for purposes of supporting the Company’s business. Major components are fiber, copper, coax cable, routers and various electronics. Property, Plant and Equipment Property, plant and equipment are recorded at cost and include expenditures for additions and major improvements for the Company’s regulated telephone companies, including an allowance for funds used during construction where appropriate. Maintenance and repairs are charged to operations as incurred. Depreciation of telephone plant is computed on the straight-line method using class or overall group rates acceptable to regulatory authorities. This accounting recognizes the economic effects of rate regulation by recording costs and a return on investment, and as such, amounts are recovered through rates authorized by regulatory authorities. Accordingly, the Company is required to depreciate plant and equipment over the useful lives that would otherwise be determined by management. Depreciation of non-telephone property is computed on the straight-line method over the estimated useful lives of the assets. Buildings Machinery and Equipment Other Assets Minimum Maximum Depreciable lives for the Company’s telephone and non-telephone businesses, excluding land, range from 15 40 3 50 3 25 When a portion of the Company’s depreciable property, plant and equipment relating to its telephone operations business is retired, the gross carrying value of the assets is charged to accumulated depreciation, in accordance with regulated accounting procedures. Cost of removal and salvage, if any, are also charged to the accumulated depreciation account per the FCC rules. Goodwill On September 10, 2019, UPTC acquired selected assets and operations from Sunrise Communications, a Cable television provider in Northern Michigan resulting in the recognition of $ 0.1 There were no indicators of impairment to the Company’s goodwill and no impairment charges were recorded for the three and six months ended June 30, 2023 and 2022. Impairment of Long-Lived Assets Long-lived assets, such as property, plant, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset (or asset group) to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell, and depreciation ceases. There were no asset impairments recorded for the three and six months ended June 30, 2023 and 2022. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Revenue Recognition Certain revenue streams are measured according to ASC 606, Revenue from Contracts with Customers At contract inception, the Company assesses the goods and services to be provided to the customer and identifies the associated performance obligation. The Company considers all obligations, whether they are explicitly stated in the contract or are implied by customary business practices. The Company also has revenue that is accounted for in accordance with other guidance other than ASC 606, including revenue from regulated RLEC which is required to follow the Code of Federal Regulations (“CFR”) Title 47- Telecommunications Part 32 established by the FCC. See Note 9 “Revenue Recognition” for a discussion of our revenue recognition policies. Leases The Company recognizes leases in accordance with ASC 842, Leases ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. If a rate implicit in the lease is not known, the estimated incremental borrowing rate is utilized and is derived from information available at the lease commencement date to determine the present value of lease payments. To estimate the incremental borrowing rate, a risk-free rate plus incremental interest rate spread for collateralized debt is used and updated on an annual basis. Multiple incremental borrowing rates that correspond to term of the leases are used. Short-term leases primarily consist of month-to-month leases where either party has the option to cancel with less than one year’s notice, or for those leases where the agreement terms are not final. Expenses are recognized as incurred. Income Taxes The Company calculates its tax provision using the separate return method. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax effects attributable to differences between the condensed consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Accounting guidance concerning uncertain income tax positions requires the Company to recognize the effect of income tax positions only if those positions are more likely than not to be sustained. There were no uncertain tax positions to report as of June 30, 2023 and December 31, 2022. Recognized income tax positions are measured at the largest amount that is greater than 50% likely to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Earnings Per Share Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. The Company does not have any dilutive securities that would result in diluted earnings per share. Accounting Pronouncements ASU 2021-10 (Topic 832) In November 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-10 (Topic 832), which requires business entities to disclose information about certain government assistance they receive. The ASU is effective for annual reporting periods beginning after December 15, 2021. The Company adopted this ASU effective January 1, 2022. The Company receives Alternative Connect America Cost Model (“ACAM”) funding which is included in Revenues in the Condensed Consolidated Statements of Income at an amount of $ 2.2 4.4 0.3 0.2 0.6 0.4 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments: Credit Losses

Property, Plant and Equipment

Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Note 4. Property, Plant and Equipment Components of the Company’s property, plant and equipment and accumulated depreciation are as follows (in thousands): Property, Plant and Equipment - Schedule of Property, Plant and Equipment June 30, December 31, 2023 2022 (unaudited) Land Land $ 78 $ 78 Motor Vehicles Motor Vehicles 1,032 1,036 Buildings and leasehold improvements 2,881 2,881 Fiber Cable 36,334 35,813 Circuit and Switching Equipment 14,447 14,440 Other Other 2,585 2,550 Construction in progress Construction in Progress 9,096 7,416 66,453 64,214 Accumulated depreciation (44,402 ) (43,396 ) Total $ 22,051 $ 20,818 Depreciation expense for the three months ended June 30, 2023 and 2022 were $ 0.5 0.5 1.0 1.1

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Accrued Liabilities	Note 5. Accrued Liabilities As of June 30, 2023 and December 31, 2022, the accrued liabilities consisted of the following: Accrued Liabilities - Schedule of Accrued Liabilities June 30, December 31, 2023 2022 (unaudited) Accrued income taxes $ 1,411 $ 815 Accrued payroll and employee benefits 69 219 Accrued for other expenses 882 123 Total $ 2,362 $ 1,157

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Note 6. Related Party Transactions As of and for the six months ended June 30, 2023, LMT Holding LMT Holding LMT Holding As of and for the six months ended June 30, 2023, LMT Holding LMT Holding 0.2 0.4 LMT Holding 0.1 As of June 30, 2023 and December 31, 2022, LMT Holding 1.9 0.7 LMT Holding The Company also engages in monthly transactions with Western New Mexico Telephone Corporation, another subsidiary under LICT where the Company is charged a percentage of an LICT officer’s salary. The Company’s allocation has been less than $0.1 million for each of the three and six months ended June 30, 2023 and 2022 and is included in General and administrative expenses in the Condensed Consolidated Statements of Income.

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurement	Note 7. Fair Value Measurement Level 1 The Company has assets that are measured at fair value: U.S. Treasury money market funds, included in cash and cash equivalents in the accompanying condensed consolidated balance sheets, which are classified as Level 1 inputs because they are valued using quoted market prices. U.S. Treasury money market funds had a value of $ 1.9 0.7 Asset retirement obligations for the fair value of legal obligations associated with asset retirements and a corresponding increase in the carrying amount of the related long-lived asset in the period in which the obligations are incurred. In periods subsequent to initial measurement, the Company recognizes changes in the liability resulting from the passage of time and updates to the timing or the amount of the original estimates. Level 3 inputs are unobservable and used for the fair value calculation of asset retirement obligations. See Note 13 “Asset Retirement Obligation” for a discussion of the Company’s asset retirement obligations.

Employee Benefit Plans

Employee Benefit Plans	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Employee Benefit Plans	Note 8. Employee Benefit Plans UPTC maintains a defined contribution plan. Contributions under this plan, are based primarily on the financial performance of the business units and employee compensation. Total discretionary employer contribution expense related to these plans for each of the three and six months ended June 30, 2023 and 2022 was less than $0.1 million, which is included in the condensed consolidated Statements of Operations.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 9. Revenue Recognition Revenue Accounted for in Accordance with ASC 606 Local access revenue is accounted for under ASC 606 and comes from providing local telephone exchange services billed to end users in accordance with tariffs filed with the MPSC. Local access revenue is predominantly billed in advance and recognized as revenue when earned. Interstate and intrastate access revenues handled as “bill-and-keep” (see notes under Revenue Accounted for in Accordance with Other Guidance Broadband and related services, video, including cable modem, and certain other revenues, are accounted for under ASC 606, for which revenues are recognized as services are provided. Revenue Accounted for in Accordance with Other Guidance Regulated RLECs are required to follow CFR Title 47-Telecommunications Part 32 established by the FCC; therefore, Part 32 contains the Other Guidance which the Company’s RLECs follow. Certain revenues for regulated companies are derived from the Company’s cost for providing services. Revenue that is billed in arrears includes most intrastate and interstate network access services, nonrecurring local services, and long-distance services. The earned but unbilled portion of this revenue is recognized as revenue in the period that the services are provided. Revenues from intrastate access are based on tariffs approved by the MPSC and are subject to ASC 606 because they are handled on a bill-and-keep basis. Revenues from interstate access are either bill-and-keep or are derived from settlements with NECA or USAC. Intrastate USF, Interstate USF and Interstate settlement revenues are not accounted for under ASC 606. NECA was created by the FCC to administer interstate access rates and revenue pooling on behalf of small local exchange carriers who elect to participate in a pooling environment. The Company’s Both of the Company’s RLECs receive a fixed amount of USF support paid from USAC through NECA based on the FCC’s Alternative Connect America Cost Model (“A-CAM”) program. The A-CAM program provides revenue through 2028 based on a cost model, rather than company-specific costs. Carriers electing A-CAM are required to maintain voice and provide broadband service of at least 10/1 Mbps or 25/3 Mbps to a certain percentage of locations by the end of the support term in 2028, with deployment milestones along the way. A-CAM revenues for each of the three months ended June 30, 2023 and 2022 were 2.2 4.4 For all taxable revenue, the Company collects taxes from its customers on behalf of various governmental authorities and remits these taxes to the appropriate authorities. The collection of such taxes and fees is not recognized as revenue. Deferred revenue resulting from large non-regulated business installations or other non-regulated services are included in other liabilities and are amortized over the customer life. The following tables provide the Company’s revenue disaggregated on the basis of revenue source and products (in thousands): Revenue Recognition - Schedule of Disaggregation of Revenue For the Three Months Ended June 30, 2023 Accounted for Under ASC 606 Accounted for Under Other Guidance Total Revenue Regulated Revenue Local access $ 326 — $ 326 Interstate access and USF 314 2,349 2,663 Intrastate access and USF 18 — 18 Other 28 — 28 Total Regulated Revenue $ 686 2,349 $ 3,035 Non-Regulated Revenue Broadband and other services $ 779 — $ 779 Video 43 — 43 Other 128 — 128 Total Non-Regulated Revenue $ 950 — $ 950 Total Revenue $ 1,636 2,349 $ 3,985 For the Three Months Ended June 30, 2023 Revenue by type of recognition: Services transferred over time Transferred Over Time $ 1,600 Equipment and long-distance service transferred at a point in time Transferred at Point in Time 36 Total Revenue $ 1,636 For the Three Months Ended June 30, 2022 Accounted for Under ASC 606 Accounted for Under Other Guidance Total Revenue Regulated Revenue Local access $ 327 — $ 327 Interstate access and USF 290 2,336 2,626 Intrastate access and USF 23 68 91 Other 25 — 25 Total Regulated Revenue $ 665 2,404 $ 3,069 Non-Regulated Revenue Broadband and other services $ 725 — $ 725 Video 9 — 9 Other 151 — 151 Total Non-Regulated Revenue $ 885 — $ 885 Total Revenue $ 1,550 2,404 $ 3,954 For the Three Months Ended June 30, 2022 Revenue by type of recognition: Services transferred over time $ 1,505 Equipment and long-distance service transferred at a point in time 45 Total Revenue $ 1,550 For the Six Months Ended June 30, 2023 Accounted for Under ASC 606 Accounted for Under Other Guidance Total Revenue Regulated Revenue Local access $ 640 — $ 640 Interstate access and USF 623 4,671 5,294 Intrastate access and USF 37 — 37 Other 57 1 58 Total Regulated Revenue $ 1,357 4,672 $ 6,029 Non-Regulated Revenue Broadband and other services $ 1,499 — $ 1,499 Video 53 — 53 Other 275 — 275 Total Non-Regulated Revenue $ 1,827 — $ 1,827 Total Revenue $ 3,184 4,672 $ 7,856 For the Six Months Ended June 30, 2023 Revenue by type of recognition: Services transferred over time $ 3,109 Equipment and long-distance service transferred at a point in time 75 Total Revenue $ 3,184 For the Six Months Ended June 30, 2022 Accounted for Under ASC 606 Accounted for Under Other Guidance Total Revenue Regulated Revenue Local access $ 658 — $ 658 Interstate access and USF 587 4,668 5,255 Intrastate access and USF 45 137 182 Other 40 1 41 Total Regulated Revenue $ 1,330 4,806 $ 6,136 Non-Regulated Revenue Broadband and other services $ 1,410 — $ 1,410 Video 16 — 16 Other 300 — 300 Total Non-Regulated Revenue $ 1,726 — $ 1,726 Total Revenue $ 3,056 4,806 $ 7,862 For the Six Months Ended June 30, 2022 Revenue by type of recognition: Services transferred over time $ 2,969 Equipment and long-distance service transferred at a point in time 87 Total Revenue $ 3,056 Performance Obligations ASC 606, Revenue from Contracts with Customers, requires that the Company disclose the aggregate amount of the transaction price that is allocated to remaining performance obligations that are unsatisfied as of June 30, 2023. The guidance provides certain practical expedients that limit this requirement. The service revenue contracts of the Company meet the following practical expedients provided by ASC 606: (1) The performance obligation is part of a contract that has an original expected duration of one year or less and (2) Revenue is recognized from the satisfaction of the performance obligations in the amount billable to the customer in accordance with ASC 606-10-55-18. The Company has elected these practical expedients. Performance obligations related to our service revenue contracts are generally satisfied over time. For services transferred over time, revenue is recognized based on amounts invoiced to the customer as the Company has concluded that the invoice amount directly corresponds with the value of services provided to the customer. Management considers this a faithful depiction of the transfer of control as services are substantially the same and have the same pattern of transfer over the life of the contract. As such, revenue related to unsatisfied performance obligations that will be billed in future periods has not been disclosed. Transaction Price Allocated to Remaining Performance Obligations The aggregate amount of the transaction price allocated to the remaining performance obligations for contracts with customers that are unsatisfied, or partially unsatisfied, are accounted for in accordance with ASC 606. For equipment delivery, installation and configuration, and services, the performance obligation is expected to be satisfied within 12 months. For business broadband and other services, the performance obligation will be satisfied as the service is provided over the terms of the contracts, which typically range from one to five years. The Company’s agreements with its residential customers are typically originated on a month-to-month basis, or one to two-year contracts converting to a month-to-month basis after expiration, and no provision is made for future performance obligations. Contract Assets and Liabilities The Company incurs certain incremental costs to obtain contracts that it expects to recover. These costs consist primarily of sales commissions and other directly related incentive compensation payments related to customer contracts. Incremental costs of obtaining contracts for which the term is one year or less are expensed as incurred. The Company does not incur material contract fulfillment costs associated with is contracts with customers. The cost of the Company’s network and related equipment, and enhancements to the network required under customer contracts, is accounted for in accordance with ASC 360, Property, Plant and Equipment

Leases

Leases	6 Months Ended
	Jun. 30, 2023
Leases
Leases	Note 10. Leases The Company’s leases primarily consist of towers for wireless equipment and dark fiber. Lease terms may include options to extend or terminate the lease. Options to extend leases are included when, based on the individual lease and the Company’s business objectives at lease inception, it is reasonably certain they will be exercised. Leases with a term of 12 months or less are not recorded on the condensed consolidated balance sheets. The practical expedient was elected to combine the lease and non-lease components for all asset classes. The following table summarizes the components of lease expense for the three and six months ended June 30, 2023 and 2022 (in thousands): Leases - Schedule of Components of Lease Expense For the Three Months Ended June 30, 2023 2022 Operating lease cost $ 36 $ 37 Total Lease Cost $ 36 $ 37 For the Six Months Ended June 30, 2023 2022 Operating lease cost $ 72 $ 69 Total Lease Cost $ 72 $ 69 The weighted-average remaining lease term and the weighted-average discount rate for operating leases are as follows: June 30, December 31, 2023 2022 (unaudited) Weighted-average remaining lease term (in years) - operating leases 13.67 14 Weighted-average discount rate - operating leases 7.1 7.0 The following table provides a summary of minimum payments for operating leases (in thousands): Leases - Schedule of Future Minimum Payments for Operating Leases Year ending December 31, 2023 (6 months) $ 64 2024 129 2025 105 2026 67 2027 69 Thereafter 945 Total Obligation $ 1,379 Less: amount representing interest and discount (631 ) Present Value of Future Minimum Lease Payments $ 748 Less: current portion (77 ) Lease obligations, net of current portion $ 671 ROU assets were approximately $ 0.7 0.7

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11. Commitments and Contingencies Litigation The Company is involved from time to time in various legal proceedings, regulatory investigations, and claims arising in the normal conduct of business, which may include proceedings that are specific to the Company and others generally applicable to business practices within the industries in which the Company operates. A substantial legal liability or a significant regulatory action against the Company could have an adverse effect on the business, financial condition, and on the results of operations in a particular year. In August 2022, the Company filed a lawsuit with the Delta County Circuit Court for a temporary restraining order against Atlantic Engineering Group (“AEG”) and a former employee who was causing damage to the Company’s cables by converting the Company’s position on the electric poles and placing them in a position that was below the minimum clearance and in unserviceable locations. The Company won the motion and was granted the temporary restraining order. During the same month, the AEG filed a counter lawsuit claiming that the Company’s lawsuit was anti-competitive behavior in its nature. At this time the outcome of either claim cannot be determined and there is no amount associated with the counter claim and no amounts are accrued as of June 30, 2023. Connecting Michigan Communities 3.0 Grant On May 2, 2022, the Michigan Department of Technology, Management, and Budget (“DTMB”) announced UPTC was a successful recipient of a $2.0 million CMIC 3.0 broadband grant, which it applied for in January 2022, requiring a CapEx match of $2.0 million for a total project cost of $4.0 million. This project was accepted and is underway. For the six months ended June 30, 2023, the Company received $0.5 million of the CMIC 3.0 broadband grant.

Asset Retirement Obligations

Asset Retirement Obligations	6 Months Ended
	Jun. 30, 2023
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Note 12. Asset Retirement Obligations The Company is subject to asset retirement obligations associated with its leased fiber, leased tower sites, pole attachments and submarine cable. Asset retirement obligations generally include obligations to restore leased locations to their pre-lease conditions. The Company owns cable and wire and also leases property and towers used for housing equipment and fiber cable. These assets and leases often have removal or remediation requirements associated with them. For example, the Company’s cable, wire, and wireless equipment are often located on property that is not owned by the Company and are often subject to the provisions of easements, permits, or leasing arrangements. Pursuant to the terms of the permits, easements, or leasing arrangements, the Company is often required to remove these assets and return the property to its original condition at some defined date in the future. In 2023 and 2022, the Company performed a review of the assumptions and estimated costs related to asset retirement obligations. The results of the review are as follows. Asset Retirement Obligations - Schedule of Changes in Asset Retirement Obligations June 30, December 31, 2023 2022 (unaudited) Beginning Balance $ 136 $ 125 Accretion Expense 6 11 Ending Balance $ 142 $ 136

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Segment Information	Note 13. Segment Information We operate in the Telecommunications Segment and have no other significant business segments. The Telecommunications Segment consists of broadband, voice and video services delivered to the customer.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Note 14. Subsequent Events The Company has evaluated subsequent events through the date of issuance of August 28, 2023. Subsequent Event Spin-Off In July 2023, the Board of Directors of LICT approved the Spin-Off of 81% of the shares of common stock of MachTen to holders of LICT’s common stock as of 5:00 p.m. New York City time on July 31, 2023, the record date. Prior to the Spin-Off, on August 8, 2023, LICT undertook an internal reorganization and contributed the Michigan Businesses to MachTen. We expect the Distribution to become effective on August 31, 2023, with each LICT stockholder receiving 150 shares of MachTen’s common stock for every one share of LICT common stock held at close of business on the record date and LICT retaining 19% of the outstanding stock of MachTen.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries. As described in Note 6, “Related Party Transactions,” certain transactions between the Company and LICT have been included in these unaudited condensed consolidated financial statements. All other intercompany profits, transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets; the valuation of deferred tax assets; liabilities for income tax uncertainties; the application of regulated accounting practices such as reserves for National Exchange Carrier Association (“NECA”) revenues; asset retirement obligations; and other contingencies. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions.
Cash Equivalents	Cash Equivalents Cash equivalents consist of U.S. Treasury money market funds with original maturities of three months or less when purchased.
Concentration of Risks	Concentration of Risks Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents, accounts payable and accrued liabilities. It is management’s opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. Because of the short maturity and capacity of prompt liquidation of such assets and liabilities, the fair values of these financial instruments approximate their carrying values. Management believes the financial risks associated with these financial instruments are minimal. Cash equivalents held in U.S. Treasury money market funds as of June 30, 2023 and December 31, 2022 totaled $ 1.9 0.7 500,000 250,000 Revenue USF/Various State Funds/NECA The Company received revenue from the Federal Universal Service Fund (“USF”), various state funds and NECA in excess of ten percent of consolidated revenue for the three months ended June 30, 2023 and 2022. The revenue received from these sources for each of the three months ended June 30, 2023 and 2022 were $ 2.5 62 62 5.0 63 4.9 63
Fair Value Measurement	Fair Value Measurement The Company follows the authoritative guidance of ASC 820, Fair Value Measurement, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the condensed consolidated financial statements on a recurring basis, and of nonfinancial assets and nonfinancial liabilities that are recognized or disclosed at fair value in the condensed consolidated financial statements on a nonrecurring basis or are presented only in disclosures. Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in inactive markets. Level 3 inputs are unobservable.
Asset Retirement Obligations	Asset Retirement Obligations The Company’s asset retirement obligation (“ARO”) primarily represents the fair value of a liability that the Company will incur to restore leased locations to their pre-lease conditions. In the determination of fair value for an ARO, the Company uses various assumptions and judgments, including such factors as the existence of a legal obligation, estimated amounts and timing of settlements, discount and inflation rates. AROs are primarily recorded for the Company’s leased fiber, leased tower sites, pole attachments and submarine cable.
Accounts Receivable	Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for expected credit losses is the Company’s best estimate of the amount of expected credit losses in the Company’s existing accounts receivable. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends, current and anticipated future economic conditions and reasonable and supportable information. Receivable balances are reviewed on an aged basis and account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is doubtful. Due to the dispersed geographic nature of the Company’s operations and the residential nature of its customers, no single customer, or identifiable group of customers, accounts for a significant amount of the Company’s receivable balances, other than from NECA or the Universal Service Administrative Company (“USAC”), as discussed in Revenue Recognition
Materials and Supplies	Materials and Supplies Materials and supplies are stated at cost and are not held for sale, but rather for purposes of supporting the Company’s business. Major components are fiber, copper, coax cable, routers and various electronics.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment are recorded at cost and include expenditures for additions and major improvements for the Company’s regulated telephone companies, including an allowance for funds used during construction where appropriate. Maintenance and repairs are charged to operations as incurred. Depreciation of telephone plant is computed on the straight-line method using class or overall group rates acceptable to regulatory authorities. This accounting recognizes the economic effects of rate regulation by recording costs and a return on investment, and as such, amounts are recovered through rates authorized by regulatory authorities. Accordingly, the Company is required to depreciate plant and equipment over the useful lives that would otherwise be determined by management. Depreciation of non-telephone property is computed on the straight-line method over the estimated useful lives of the assets. Buildings Machinery and Equipment Other Assets Minimum Maximum Depreciable lives for the Company’s telephone and non-telephone businesses, excluding land, range from 15 40 3 50 3 25 When a portion of the Company’s depreciable property, plant and equipment relating to its telephone operations business is retired, the gross carrying value of the assets is charged to accumulated depreciation, in accordance with regulated accounting procedures. Cost of removal and salvage, if any, are also charged to the accumulated depreciation account per the FCC rules.
Goodwill	Goodwill On September 10, 2019, UPTC acquired selected assets and operations from Sunrise Communications, a Cable television provider in Northern Michigan resulting in the recognition of $ 0.1 There were no indicators of impairment to the Company’s goodwill and no impairment charges were recorded for the three and six months ended June 30, 2023 and 2022.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets, such as property, plant, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset (or asset group) to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell, and depreciation ceases. There were no asset impairments recorded for the three and six months ended June 30, 2023 and 2022.
Commitments and Contingencies	Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.
Revenue Recognition	Revenue Recognition Certain revenue streams are measured according to ASC 606, Revenue from Contracts with Customers At contract inception, the Company assesses the goods and services to be provided to the customer and identifies the associated performance obligation. The Company considers all obligations, whether they are explicitly stated in the contract or are implied by customary business practices. The Company also has revenue that is accounted for in accordance with other guidance other than ASC 606, including revenue from regulated RLEC which is required to follow the Code of Federal Regulations (“CFR”) Title 47- Telecommunications Part 32 established by the FCC. See Note 9 “Revenue Recognition” for a discussion of our revenue recognition policies.
Leases	Leases The Company recognizes leases in accordance with ASC 842, Leases ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. If a rate implicit in the lease is not known, the estimated incremental borrowing rate is utilized and is derived from information available at the lease commencement date to determine the present value of lease payments. To estimate the incremental borrowing rate, a risk-free rate plus incremental interest rate spread for collateralized debt is used and updated on an annual basis. Multiple incremental borrowing rates that correspond to term of the leases are used. Short-term leases primarily consist of month-to-month leases where either party has the option to cancel with less than one year’s notice, or for those leases where the agreement terms are not final. Expenses are recognized as incurred.
Income Taxes	Income Taxes The Company calculates its tax provision using the separate return method. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax effects attributable to differences between the condensed consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Accounting guidance concerning uncertain income tax positions requires the Company to recognize the effect of income tax positions only if those positions are more likely than not to be sustained. There were no uncertain tax positions to report as of June 30, 2023 and December 31, 2022. Recognized income tax positions are measured at the largest amount that is greater than 50% likely to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.
Earnings Per Share	Earnings Per Share Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. The Company does not have any dilutive securities that would result in diluted earnings per share.
Accounting Pronouncements	Accounting Pronouncements ASU 2021-10 (Topic 832) In November 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-10 (Topic 832), which requires business entities to disclose information about certain government assistance they receive. The ASU is effective for annual reporting periods beginning after December 15, 2021. The Company adopted this ASU effective January 1, 2022. The Company receives Alternative Connect America Cost Model (“ACAM”) funding which is included in Revenues in the Condensed Consolidated Statements of Income at an amount of $ 2.2 4.4 0.3 0.2 0.6 0.4 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments: Credit Losses

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment - Schedule of Property, Plant and Equipment	Components of the Company’s property, plant and equipment and accumulated depreciation are as follows (in thousands): Property, Plant and Equipment - Schedule of Property, Plant and Equipment June 30, December 31, 2023 2022 (unaudited) Land Land $ 78 $ 78 Motor Vehicles Motor Vehicles 1,032 1,036 Buildings and leasehold improvements 2,881 2,881 Fiber Cable 36,334 35,813 Circuit and Switching Equipment 14,447 14,440 Other Other 2,585 2,550 Construction in progress Construction in Progress 9,096 7,416 66,453 64,214 Accumulated depreciation (44,402 ) (43,396 ) Total $ 22,051 $ 20,818

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Accrued Liabilities - Schedule of Accrued Liabilities	As of June 30, 2023 and December 31, 2022, the accrued liabilities consisted of the following: Accrued Liabilities - Schedule of Accrued Liabilities June 30, December 31, 2023 2022 (unaudited) Accrued income taxes $ 1,411 $ 815 Accrued payroll and employee benefits 69 219 Accrued for other expenses 882 123 Total $ 2,362 $ 1,157

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue Recognition - Schedule of Disaggregation of Revenue	The following tables provide the Company’s revenue disaggregated on the basis of revenue source and products (in thousands): Revenue Recognition - Schedule of Disaggregation of Revenue For the Three Months Ended June 30, 2023 Accounted for Under ASC 606 Accounted for Under Other Guidance Total Revenue Regulated Revenue Local access $ 326 — $ 326 Interstate access and USF 314 2,349 2,663 Intrastate access and USF 18 — 18 Other 28 — 28 Total Regulated Revenue $ 686 2,349 $ 3,035 Non-Regulated Revenue Broadband and other services $ 779 — $ 779 Video 43 — 43 Other 128 — 128 Total Non-Regulated Revenue $ 950 — $ 950 Total Revenue $ 1,636 2,349 $ 3,985 For the Three Months Ended June 30, 2023 Revenue by type of recognition: Services transferred over time Transferred Over Time $ 1,600 Equipment and long-distance service transferred at a point in time Transferred at Point in Time 36 Total Revenue $ 1,636 For the Three Months Ended June 30, 2022 Accounted for Under ASC 606 Accounted for Under Other Guidance Total Revenue Regulated Revenue Local access $ 327 — $ 327 Interstate access and USF 290 2,336 2,626 Intrastate access and USF 23 68 91 Other 25 — 25 Total Regulated Revenue $ 665 2,404 $ 3,069 Non-Regulated Revenue Broadband and other services $ 725 — $ 725 Video 9 — 9 Other 151 — 151 Total Non-Regulated Revenue $ 885 — $ 885 Total Revenue $ 1,550 2,404 $ 3,954 For the Three Months Ended June 30, 2022 Revenue by type of recognition: Services transferred over time $ 1,505 Equipment and long-distance service transferred at a point in time 45 Total Revenue $ 1,550 For the Six Months Ended June 30, 2023 Accounted for Under ASC 606 Accounted for Under Other Guidance Total Revenue Regulated Revenue Local access $ 640 — $ 640 Interstate access and USF 623 4,671 5,294 Intrastate access and USF 37 — 37 Other 57 1 58 Total Regulated Revenue $ 1,357 4,672 $ 6,029 Non-Regulated Revenue Broadband and other services $ 1,499 — $ 1,499 Video 53 — 53 Other 275 — 275 Total Non-Regulated Revenue $ 1,827 — $ 1,827 Total Revenue $ 3,184 4,672 $ 7,856 For the Six Months Ended June 30, 2023 Revenue by type of recognition: Services transferred over time $ 3,109 Equipment and long-distance service transferred at a point in time 75 Total Revenue $ 3,184 For the Six Months Ended June 30, 2022 Accounted for Under ASC 606 Accounted for Under Other Guidance Total Revenue Regulated Revenue Local access $ 658 — $ 658 Interstate access and USF 587 4,668 5,255 Intrastate access and USF 45 137 182 Other 40 1 41 Total Regulated Revenue $ 1,330 4,806 $ 6,136 Non-Regulated Revenue Broadband and other services $ 1,410 — $ 1,410 Video 16 — 16 Other 300 — 300 Total Non-Regulated Revenue $ 1,726 — $ 1,726 Total Revenue $ 3,056 4,806 $ 7,862 For the Six Months Ended June 30, 2022 Revenue by type of recognition: Services transferred over time $ 2,969 Equipment and long-distance service transferred at a point in time 87 Total Revenue $ 3,056

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Leases
Leases - Schedule of Components of Lease Expense	The practical expedient was elected to combine the lease and non-lease components for all asset classes. The following table summarizes the components of lease expense for the three and six months ended June 30, 2023 and 2022 (in thousands): Leases - Schedule of Components of Lease Expense For the Three Months Ended June 30, 2023 2022 Operating lease cost $ 36 $ 37 Total Lease Cost $ 36 $ 37 For the Six Months Ended June 30, 2023 2022 Operating lease cost $ 72 $ 69 Total Lease Cost $ 72 $ 69 The weighted-average remaining lease term and the weighted-average discount rate for operating leases are as follows: June 30, December 31, 2023 2022 (unaudited) Weighted-average remaining lease term (in years) - operating leases 13.67 14 Weighted-average discount rate - operating leases 7.1 7.0
Leases - Schedule of Future Minimum Payments for Operating Leases	The following table provides a summary of minimum payments for operating leases (in thousands): Leases - Schedule of Future Minimum Payments for Operating Leases Year ending December 31, 2023 (6 months) $ 64 2024 129 2025 105 2026 67 2027 69 Thereafter 945 Total Obligation $ 1,379 Less: amount representing interest and discount (631 ) Present Value of Future Minimum Lease Payments $ 748 Less: current portion (77 ) Lease obligations, net of current portion $ 671

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	6 Months Ended
	Jun. 30, 2023
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations - Schedule of Changes in Asset Retirement Obligations	In 2023 and 2022, the Company performed a review of the assumptions and estimated costs related to asset retirement obligations. The results of the review are as follows. Asset Retirement Obligations - Schedule of Changes in Asset Retirement Obligations June 30, December 31, 2023 2022 (unaudited) Beginning Balance $ 136 $ 125 Accretion Expense 6 11 Ending Balance $ 142 $ 136

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Sep. 10, 2019
Product Information [Line Items]
U.S. Treasury money market funds	$ 1,900,000		$ 1,900,000		$ 700,000
Securities Investor Protection Corporation, insured amount	500,000		500,000
FDIC, insured amount	250,000		250,000
Revenue, government assistance	3,985,000	$ 3,954,000	7,856,000	$ 7,862,000
Goodwill	100,000		100,000		$ 100,000	$ 100,000
ASU 2021-10 (Topic 832) | Alternative Connect America Cost Model ("ACAM")
Product Information [Line Items]
Revenue, government assistance	2,200,000	2,200,000	4,400,000	4,400,000
ASU 2021-10 (Topic 832) | Connect America Fund - Intercarrier Compensation ("CAF-ICC")
Product Information [Line Items]
Revenue, government assistance	$ 300,000	200,000	$ 600,000	400,000
Buildings | Minimum
Product Information [Line Items]
Estimated useful life	15 years		15 years
Buildings | Maximum
Product Information [Line Items]
Estimated useful life	40 years		40 years
Machinery and Equipment | Minimum
Product Information [Line Items]
Estimated useful life	3 years		3 years
Machinery and Equipment | Maximum
Product Information [Line Items]
Estimated useful life	50 years		50 years
Other | Minimum
Product Information [Line Items]
Estimated useful life	3 years		3 years
Other | Maximum
Product Information [Line Items]
Estimated useful life	25 years		25 years
Revenue | USF/Various State Funds/NECA
Product Information [Line Items]
Revenue, government assistance	$ 2,500,000	$ 2,500,000	$ 5,000,000	$ 4,900,000
Percent of revenue	62%	62%	63%	63%

Property, Plant and Equipment -

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 66,453	$ 64,214
Accumulated depreciation	(44,402)	(43,396)
Total property, plant and equipment from continuing operations, net	22,051	20,818
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	78	78
Motor Vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,032	1,036
Buildings and Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,881	2,881
Fiber Cable
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	36,334	35,813
Circuit and Switching Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	14,447	14,440
Other Assets
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,585	2,550
Construction in Progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 9,096	$ 7,416

Property, Plant and Equipment_2

Property, Plant and Equipment (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 506	$ 508	$ 1,012	$ 1,113

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued income taxes	$ 1,411	$ 815
Accrued payroll and employee benefits	69	219
Accrued for other expenses	882	123
Total	$ 2,362	$ 1,157

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
U.S. Treasury money market funds	$ 1,900		$ 1,900		$ 700
Western New Mexico Telephone Corporation
Related Party Transaction [Line Items]
Related party transactions, description			The Company also engages in monthly transactions with Western New Mexico Telephone Corporation, another subsidiary under LICT where the Company is charged a percentage of an LICT officer’s salary. The Company’s allocation has been less than $0.1 million for each of the three and six months ended June 30, 2023 and 2022 and is included in General and administrative expenses in the Condensed Consolidated Statements of Income.
LMT Holding
Related Party Transaction [Line Items]
Management fees expense	200	$ 200	$ 400	$ 400
Internal director fees expense	100	$ 100	100	$ 100
U.S. Treasury money market funds	$ 1,900		$ 1,900		$ 700

Fair Value Measurement (Details

Fair Value Measurement (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Value of U.S. Treasury money market funds	$ 1,900	$ 700
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Value of U.S. Treasury money market funds	$ 1,900	$ 700

Employee Benefit Plans (Details

Employee Benefit Plans (Details Narrative)	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Defined contribution plan, general information	UPTC maintains a defined contribution plan. Contributions under this plan, are based primarily on the financial performance of the business units and employee compensation. Total discretionary employer contribution expense related to these plans for each of the three and six months ended June 30, 2023 and 2022 was less than $0.1 million, which is included in the condensed consolidated Statements of Operations.

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Regulated revenue	$ 3,035	$ 3,069	$ 6,029	$ 6,136
Non-Regulated revenue	950	885	1,827	1,726
Revenue	3,985	3,954	7,856	7,862
Accounted for Under Other Guidance
Disaggregation of Revenue [Line Items]
Regulated revenue	2,349	2,404	4,672	4,806
Non-Regulated revenue
Revenue	2,349	2,404	4,672	4,806
Local Access
Disaggregation of Revenue [Line Items]
Regulated revenue	326	327	640	658
Local Access | Accounted for Under Other Guidance
Disaggregation of Revenue [Line Items]
Regulated revenue
Interstate Access and USF
Disaggregation of Revenue [Line Items]
Regulated revenue	2,663	2,626	5,294	5,255
Interstate Access and USF | Accounted for Under Other Guidance
Disaggregation of Revenue [Line Items]
Regulated revenue	2,349	2,336	4,671	4,668
Intrastate Access and USF
Disaggregation of Revenue [Line Items]
Regulated revenue	18	91	37	182
Intrastate Access and USF | Accounted for Under Other Guidance
Disaggregation of Revenue [Line Items]
Regulated revenue		68		137
Other Regulated Revenue
Disaggregation of Revenue [Line Items]
Regulated revenue	28	25	58	41
Other Regulated Revenue | Accounted for Under Other Guidance
Disaggregation of Revenue [Line Items]
Regulated revenue			1	1
Broadband and Other Services
Disaggregation of Revenue [Line Items]
Non-Regulated revenue	779	725	1,499	1,410
Broadband and Other Services | Accounted for Under Other Guidance
Disaggregation of Revenue [Line Items]
Non-Regulated revenue
Video
Disaggregation of Revenue [Line Items]
Non-Regulated revenue	43	9	53	16
Video | Accounted for Under Other Guidance
Disaggregation of Revenue [Line Items]
Non-Regulated revenue
Other Non-Regulated Revenue
Disaggregation of Revenue [Line Items]
Non-Regulated revenue	128	151	275	300
Other Non-Regulated Revenue | Accounted for Under Other Guidance
Disaggregation of Revenue [Line Items]
Non-Regulated revenue
Accounted for Under ASC 606
Disaggregation of Revenue [Line Items]
Regulated revenue	686	665	1,357	1,330
Non-Regulated revenue	950	885	1,827	1,726
Revenue	1,636	1,550	3,184	3,056
Accounted for Under ASC 606 | Transferred Over Time
Disaggregation of Revenue [Line Items]
Revenue	1,600	1,505	3,109	2,969
Accounted for Under ASC 606 | Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Revenue	36	45	75	87
Accounted for Under ASC 606 | Local Access
Disaggregation of Revenue [Line Items]
Regulated revenue	326	327	640	658
Accounted for Under ASC 606 | Interstate Access and USF
Disaggregation of Revenue [Line Items]
Regulated revenue	314	290	623	587
Accounted for Under ASC 606 | Intrastate Access and USF
Disaggregation of Revenue [Line Items]
Regulated revenue	18	23	37	45
Accounted for Under ASC 606 | Other Regulated Revenue
Disaggregation of Revenue [Line Items]
Regulated revenue	28	25	57	40
Accounted for Under ASC 606 | Broadband and Other Services
Disaggregation of Revenue [Line Items]
Non-Regulated revenue	779	725	1,499	1,410
Accounted for Under ASC 606 | Video
Disaggregation of Revenue [Line Items]
Non-Regulated revenue	43	9	53	16
Accounted for Under ASC 606 | Other Non-Regulated Revenue
Disaggregation of Revenue [Line Items]
Non-Regulated revenue	$ 128	$ 151	$ 275	$ 300

Revenue Recognition (Details Na

Revenue Recognition (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue, government assistance	$ 3,985	$ 3,954	$ 7,856	$ 7,862
ASU 2021-10 (Topic 832) | Alternative Connect America Cost Model ("ACAM")
Revenue, government assistance	$ 2,200	$ 2,200	$ 4,400	$ 4,400

Leases - Schedule of Components

Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Leases
Operating lease cost	$ 36	$ 37	$ 72	$ 69
Total Lease Cost	$ 36	$ 37	$ 72	$ 69
Weighted-average remaining lease term (in years) - operating leases	13 years 8 months 1 day		13 years 8 months 1 day		14 years
Weighted-average discount rate - operating leases	7.10%		7.10%		7%

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Payments for Operating Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases
2023 (6 months)	$ 64
2024	129
2025	105
2026	67
2027	69
Thereafter	945
Total Obligation	1,379
Less: amount representing interest and discount	(631)
Present Value of Future Minimum Lease Payments	748
Less: current portion	(77)	$ (74)
Lease obligations, net of current portion	$ 671	$ 710

Leases (Details Narrative)

Leases (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases
Right-of-use assets, net	$ 702	$ 747

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - Michigan Department of Technology, Management, and Budget ("DTMB")	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Other Commitments [Line Items]
Commitment, description		On May 2, 2022, the Michigan Department of Technology, Management, and Budget (“DTMB”) announced UPTC was a successful recipient of a $2.0 million CMIC 3.0 broadband grant, which it applied for in January 2022, requiring a CapEx match of $2.0 million for a total project cost of $4.0 million. This project was accepted and is underway.
Commitment, description, additional information	For the six months ended June 30, 2023, the Company received $0.5 million of the CMIC 3.0 broadband grant.

Asset Retirement Obligations -

Asset Retirement Obligations - Schedule of Changes in Asset Retirement Obligations (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligation	$ 136	$ 125
Accretion expense	6	11
Asset retirement obligation	$ 142	$ 136

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event - Spin-Off	1 Months Ended
	Jul. 31, 2023
Subsequent Event [Line Items]
Subsequent event, description	In July 2023, the Board of Directors of LICT approved the Spin-Off of 81% of the shares of common stock of MachTen to holders of LICT’s common stock as of 5:00 p.m. New York City time on July 31, 2023, the record date. Prior to the Spin-Off, on August 8, 2023, LICT undertook an internal reorganization and contributed the Michigan Businesses to MachTen.
Subsequent event, description, additional information	We expect the Distribution to become effective on August 31, 2023, with each LICT stockholder receiving 150 shares of MachTen’s common stock for every one share of LICT common stock held at close of business on the record date and LICT retaining 19% of the outstanding stock of MachTen.