M-Tron Industries completed the spinoff of M-Tron Industries rights on 30 March 2026 to MPTI shareholders of record on 27 March 2026. M-Tron Industries shareholders received 1.0 MPTI-RT for each share of MPTI owned. M-Tron Industries rights began trading on 31 March 2026. Holders of the MPTI rights may redeem 5 rights to purchase one share of MPTI for $59.00 per share. The rights expire 15 April 2026.

Resolution:

The Form 424B2 filing with the SEC has the tax discussion of this spinoff. Form 424B2 can be found at the EDGAR site at this address: https://www.sec.gov/Archives/edgar/data/1902314/000143774926010183/mpti20260329c_424b2.htm#Taxes

MPTI shareholders have a choice for the cost basis allocation in this spinoff. One option discussed in the SEC filing is to assign a cost basis of zero to the rights. This option is available if the rights would have a cost basis of less than 15% of the total cost basis of MPTI before the spinoff. This would apply here as the author calculated the cost basis allocation to the rights to be 2.9% using the FMV of the rights and MPTI on the distribution date.

The other option is to allocate the cost basis in proportion to the FMV of the rights to the total FMV of the rights and MPTI shares after the spinoff.

Our accounting advisor, the author of these instructions, recommends giving the rights a cost basis of zero. This recommendation is due to the following:

• If the rights are allowed to expire, no gain or loss is realized. This is easier to enter if the cost basis is zero with total proceeds equal zero in a sell transaction.
• If a non-zero cost basis is given to the rights and they are allowed to expire, the cost basis of the rights must be added back to the cost basis of MPTI. This adds more work for the treasurer.

Also, the cost basis of the rights must be added to the new shares purchased by exercising the rights. This is much easier, if the cost basis of the rights is zero.

In summary, dealing with the expiration and exercise of the rights in the future is easier if the rights have a cost basis of zero.

NOTE:

The cost basis allocation is dependent on the prices used for both M-Tron Industries rights and M-Tron Industries in the cost basis allocation calculations, and in this case, the option choice of the shareholder. In our experience brokers tend to use the prices found in the guidance companies post on their websites including IRS form 8937. If available, our instructions will use the guidance in form 8937. If your broker does not use that guidance, or form 8937 is not publicly available, the cost basis of the companies involved as recorded in your accounting records and in your broker’s records may not match. This is not cause for concern. This is just due to the inexact nature of the tax code in this regard. Partnership tax returns have specific areas to reconcile these usually small differences. ICLUBcentral tax printer software automatically fills in these adjustments in the normal operation of the software using the data imported from your accounting records and that you enter from your 1099.

 The Spinoff Entry

Go to Accounting > Securities > Record spinoff of securities in myICLUB.com. If you are unfamiliar with spinoff transactions you can get help at this URL: https://www.myiclub.com/faq/article.aspx?id=54

Here is the information you need to complete the spinoff.

Step 1

• Date: 3/30/2026
• Parent Company : M-Tron Industries (MPTI)
• Number of daughter companies : 1

Step 2

Choose

• Remaining Basis Percentage: 100 (gives zero cost to the rights)
• Symbol of new company : MPTI-RT
• Shares received : (1.0 x # of MPTI shares owned)
  • Include fractional part, if any. For example, if you owned 100 MPTI shares, enter 100 (100 x 1.0)
• Price Per Share : 2.01   (first price found for MPTI-RT)                                  
• Cash received:  See your broker statement for cash-in-lieu received

 Click Submit to save the transaction and the spinoff has been entered.

NOTE 2:

If you wish for the rights to have a non-zero cost basis, use 97.1 as the Remaining Basis Percentage above. The author does not recommend this option.

The ticker symbol MPTI-RT is not included in the myICLUB ticker database. If entering a valuation while owning MPTI-RT, the price for MPTI-RT must be hand entered. Yahoo Finance does give MPTI-RT historical prices. This may not be a problem as the rights expire soon, on 15 April 2026. So, the rights may expire before your club’s next valuation date.