Financials

v3.7.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
Dec. 31, 2016
Dec. 31, 2015
Current assets:    
Cash $ 4,998,314 $ 2,555,151
Accounts receivable - net of allowance for bad debt of $387,976 and $375,750 for December 31, 2016 and December 31, 2015 95,069 136,842
Bonds posted with courts   1,748,311
Prepaid expenses and other current assets, net of discounts of $3,724 for December 31, 2016 and $3,414 for December 31, 2015 428,049 338,598
Total current assets 5,521,432 4,778,902
Other assets:    
Property and equipment, net of accumulated depreciation of $108,407 and $67,052 for December 31, 2016 and December 31, 2015 28,329 61,297
Intangible assets, net 12,314,628 25,457,639
Deferred tax assets   12,437,741
Other non current assets, net of discounts of $797 and $4,831 for December 31, 2016 and December 31, 2015 201,203 9,169
Goodwill 222,843 4,482,845
Total other assets 12,767,003 42,448,691
Total Assets 18,288,435 47,227,593
Current liabilities:    
Accounts payable and accrued expenses 7,217,078 6,534,825
Clouding IP earn out - current portion 81,930 33,646
Notes payable, net of discounts of $852,404 and $730,945 for December 31, 2016 and December 31, 2015 13,162,007 10,383,177
Total current liabilities 20,461,015 16,951,648
Long-term liabilities    
Notes Payable, net of discounts of $572,763 and $1,425,167 for December 31, 2016 and December 31, 2015 4,670,502 12,223,884
Clouding IP earn out 1,400,082 3,281,238
Deferred tax liability   1,044,997
Revenue share liability 1,000,000 1,000,000
Other long term liability 43,978 50,084
Total long-term liabilities 7,114,562 17,600,203
Total liabilities 27,575,577 34,551,851
Stockholders' Equity (Deficit):    
Common stock, $.0001 par value; 200,000,000 shares authorized: 18,552,472 and 14,867,141 at December 31, 2016 and December 31, 2015 1,877 1,487
Additional paid-in capital 49,877,689 43,217,513
Accumulated other comprehensive loss (1,060,390) (1,265,812)
Accumulated deficit (57,942,548) (29,277,524)
Total Marathon Patent Group stockholders' equity (deficit) (9,123,294) 12,675,742
Non-controlling Interests (163,848)  
Total Equity (Deficit) (9,287,142) 12,675,742
Total liabilities and stockholders' equity (deficit) 18,288,435 47,227,593
Series B preferred stock    
Stockholders' Equity (Deficit):    
Preferred stock Series B, $.0001 par value, 100,000,000 shares authorized: 782,004 issued and outstanding at December 31, 2016 and December 31, 2015 $ 78 $ 78

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v3.7.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
CONSOLIDATED STATEMENTS OF OPERATIONS    
Revenues $ 36,629,276 $ 18,977,794
Expenses    
Cost of revenues 19,064,473 16,603,792
Amortization of patents and website 7,453,004 10,825,164
Compensation and related taxes 5,483,031 5,419,252
Consulting fees 1,279,092 2,324,248
Professional fees 1,797,922 2,548,492
General and administrative 840,179 1,143,869
Goodwill impairment 4,336,307 0
Patent impairment 11,958,882 5,793,409
Total operating expenses 52,212,890 44,658,226
Operating loss from continuing operations (15,583,614) (25,680,432)
Other income (expenses)    
Other income (expense) (57,454) 170,706
Foreign exchange gain (loss) (367,847) (61,868)
Change in fair value adjustment of Clouding IP earn out 1,832,872 6,137,116
Interest income 4,353 1,068
Interest expense (3,140,375) (4,245,982)
Loss on debt extinguishment   (1,416,915)
Total other income (expenses) (1,728,451) 584,125
Loss before benefit for income taxes (17,312,065) (25,096,307)
Income tax benefit (expense) (11,516,807) 8,156,448
Net loss (28,828,872) (16,939,859)
Net loss attributable to non-controlling interests 163,848  
Net loss attributable to common shareholders $ (28,665,024) $ (16,939,859)
Loss per common share:    
Basic and fully diluted (in dollars per share) $ (1.89) $ (1.19)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:    
Basic and diluted (in shares) 15,178,056 14,208,787

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v3.7.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Cash flows from operating activities:    
Net loss $ (28,828,872) $ (16,939,859)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation 4,262 7,578
Amortization of patents and website 7,453,004 10,825,164
Provision for allowance for doubtful accounts 12,226 375,750
Deferred tax asset 12,437,741 (7,618,580)
Deferred tax liability (1,044,998) (660,455)
Impairment of intangible assets 11,958,882 5,793,409
Impairment of goodwill 4,336,307 0
Stock based compensation 1,817,344 2,490,175
Stock issued for services 136,000 1,245,834
Loss on debt extinguishment   1,416,915
Non-cash interest, discount, and financing costs 1,223,341 2,220,992
Change in fair value of Clouding earnout (1,832,872) (6,137,116)
Other non-cash adjustments 121,617 260,938
Changes in operating assets and liabilities    
Accounts receivable 29,547 (295,608)
Prepaid expenses and other assets (81,486) (116,791)
Bonds posted with courts 1,748,311 (45,915)
Accounts payable and accrued expenses 682,253 4,216,331
Net cash provided by (used in) operating activities 10,172,607 (2,961,238)
Cash flows from investing activities:    
Acquisition of patents (3,681,358)  
Purchase of property, equipment, and other intangible assets (8,388) (58,386)
Net cash used in investing activities (3,689,746) (58,386)
Cash flows from financing activities:    
Repayment of notes payable (5,379,103)  
Payment on MdR Escrow TLI   (50,000)
Cash received upon issuance of notes payable (net of issuance costs)   19,600,000
Cash received upon issuance of common stock (net of issuance costs) 4,654,130  
Cash received upon exercise of warrants 46,667 18,751
Repayment of convertible notes payable   (5,050,000)
Payments on note payable, net (375,805) (181,626)
Net cash provided (used in) by financing activities (4,007,890) 508,838
Effect of exchange rate changes on cash (31,808) (16,632)
Net increase (decrease) in cash 2,443,163 (2,527,418)
Cash at beginning of period 2,555,151 5,082,569
Cash at end of period 4,998,314 2,555,151
Cash paid for:    
Interest expense 1,917,304 1,982,140
Taxes paid 43,052 168,378
Loan fees   400,000
Cash invested in 3DNano 788,097  
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Common stock issued in conjunction with note payable   1,000,000
Warrant issued in conjunction with note payable   318,679
Revenue share liability incurred in conjunction with note payable   1,000,000
Common stock issued in conjunction with debt extinguishment   654,000
Includes officer loan 944,296  
Conversion of AP to notes payable   705,093
Medtech And Orthophoenix    
Cash flows from financing activities:    
Repayment of notes payable (2,953,779) (4,318,287)
Orthophoenix, LLC    
Cash flows from financing activities:    
Repayment of notes payable   (5,500,000)
Sarif Biomedical, LLC    
Cash flows from financing activities:    
Repayment of notes payable   (276,250)
IP Liquidity    
Cash flows from financing activities:    
Repayment of notes payable   (1,109,375)
Dynamic Advances, LLC    
Cash flows from financing activities:    
Payment on MdR Escrow TLI   (2,624,375)
Orthophoenix, LLC    
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Non-cash interest increase in debt assumed in an acquisition   $ 750,000
License | 3D Nano    
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Note payable issuance in conjunction with the acquisition 100,000  
GE | Patents    
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Note payable issuance in conjunction with the acquisition 944,296  
Seimens | Patents    
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Note payable issuance in conjunction with the acquisition $ 1,672,294  

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