Financials

v3.5.0.2
CONSOLIDATED BALANCE SHEETS - USD ($)
Sep. 30, 2016
Dec. 31, 2015
Current assets:    
Cash $ 1,294,950 $ 2,555,151
Accounts receivable - net of allowance for bad debt of $387,976 and $375,750 for September 30, 2016 and December 31, 2015 81,865 136,842
Bonds posted with courts 980,919 1,748,311
Prepaid expenses and other current assets, net of discounts of $2,483 for September 30, 2016 and $3,414 for December 31, 2015 153,388 338,598
Total current assets 2,511,122 4,778,902
Other assets:    
Property and equipment, net of accumulated depreciation of $98,347 and $67,052 for September 30, 2016 and December 31, 2015 38,389 61,297
Intangible assets, net of accumulated amortization of $16,438,642 and $15,557,353 for September 30, 2016 and December 31, 2015 19,551,678 25,457,639
Deferred tax assets 11,918,920 12,437,741
Other non current assets, net of discounts of $2,969 and $4,831 for September 30, 2016 and December 31, 2015 201,031 9,169
Goodwill 4,483,129 4,482,845
Total other assets 36,193,147 42,448,691
Total Assets 38,704,269 47,227,593
Current liabilities:    
Accounts payable and accrued expenses 6,054,015 6,534,825
Clouding IP earn out - current portion 110,100 33,646
Notes payable, net of discounts of $818,919 and $730,945 for September 30, 2016 and December 31, 2015 11,139,623 10,383,177
Total current liabilities 17,303,738 16,951,648
Long-term liabilities    
Notes payable, net of discount of $798,966 and $1,425,167 for September 30 , 2016 and December 31, 2015 6,456,740 12,223,884
Clouding IP earn out 1,082,586 3,281,238
Deferred tax liability 438,709 1,044,997
Revenue share liability 1,000,000 1,000,000
Other long term liability 45,763 50,084
Total long-term liabilities 9,023,798 17,600,203
Total Liabilities 26,327,536 34,551,851
Stockholders' Equity:    
Preferred stock Series B, $.0001 par value, 50,000,000 shares authorized: 782,004 issued and outstanding at September 30, 2016 and December 31, 2015 78 78
Common stock, $.0001 par value; 200,000,000 shares authorized; 15,047,141 and 14,867,141 at September 30, 2016 and December 31, 2015 1,505 1,487
Additional paid-in capital 44,901,535 43,217,513
Accumulated other comprehensive income (loss) (959,401) (1,265,812)
Accumulated deficit (31,539,066) (29,277,524)
Total Marathon Patent Group stockholders' equity 12,404,651 12,675,742
Noncontrolling Interests (27,918)  
Total Stockholders' Equity 12,376,733 12,675,742
Total liabilities and stockholders' equity $ 38,704,269 $ 47,227,593

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v3.5.0.2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME        
Revenues $ 43,113 $ 6,407,997 $ 36,452,551 $ 11,870,851
Expenses        
Cost of revenues 1,094,378 4,002,040 19,202,118 12,190,415
Amortization of patents and website 2,030,886 2,884,269 6,018,196 8,511,730
Compensation and related taxes 1,252,571 903,685 3,406,841 3,571,817
Consulting fees 257,420 643,702 903,032 1,869,326
Professional fees 432,496 882,213 1,336,201 2,230,748
General and administrative 183,771 177,494 612,284 681,951
Goodwill impairment 0 0 83,000 0
Patent impairment 5,531,383 0 6,525,273 766,498
Total Operating Expenses 10,782,905 9,493,403 38,086,945 29,822,485
Operating loss (10,739,792) (3,085,406) (1,634,394) (17,951,634)
Other income (expenses)        
Other expense (37,116) 6,646 (68,647) 14,085
Foreign exchange gain (loss) (175,850) (20,090) (238,073) (57,593)
Change in fair value adjustments of Clouding IP earn out 1,954,378 597,047 2,122,208 2,901,348
Interest Income 931 135 2,793 137
Interest expense (649,065) (1,078,615) (2,500,321) (3,587,238)
Loss on debt extinguishment   (654,000)   (654,000)
Total Other income (expenses) 1,093,278 (1,148,877) (682,040) (1,383,261)
Loss before (provision for) benefit from income taxes (9,646,514) (4,234,283) (2,316,434) (19,334,895)
(Provision for) benefit from income taxes 3,347,909 483,815 26,974 6,300,159
Net loss (6,298,605) (3,750,468) (2,289,460) (13,034,736)
Net loss attributable to noncontrolling interests 24,195   27,918  
Net loss attributable to Marathon Patent Group, Inc. common shareholders $ (6,274,410) $ (3,750,468) $ (2,261,542) $ (13,034,736)
Loss per common share:        
Basic and fully diluted $ (0.42) $ (0.26) $ (0.15) $ (0.92)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:        
Basic and fully diluted 15,047,141 14,376,118 14,944,852 14,094,891
Other comprehensive income (loss)        
Foreign currency translation adjustments $ 209,159 $ 45,628 $ 306,411 $ (584,706)

Source

v3.5.0.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Net income (loss) attributable to Marathon Patent Group, Inc. Common Shareholders $ (2,261,542) $ (13,034,736)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation 3,780 5,668
Amortization of patents and website 6,018,196 8,511,730
Allowance for doubtful accounts 12,226  
Deferred tax asset 531,757 (5,579,418)
Deferred tax liability (638,268) (709,280)
Impairment of intangible assets 6,525,273 766,498
Impairment of goodwill 83,000 0
Stock based compensation 1,541,615 1,961,505
Stock issued for services 136,000 1,084,834
Loss on debt extinguishment   654,000
Non-cash interest, discount, and financing costs 952,231 1,926,865
Change in fair value of Clouding earnout (2,122,198) (2,901,348)
Non-controlling interest (27,918)  
Other non-cash adjustments 96,996 (13,244)
Changes in operating assets and liabilities    
Accounts receivable 43,763 (2,109,984)
Prepaid expenses and other assets (6,652) 60,938
Bonds posted with courts 883,695  
Accounts payable and accrued expenses (557,832) 6,454,467
Net cash provided by (used in) operating activities 11,214,122 (2,921,505)
Cash flows from investing activities:    
Acquisition of patents (3,552,656)  
Purchase of property, equipment, and other intangible assets (8,387) (22,520)
Net cash provided by (used in) investing activities (3,561,043) (22,520)
Cash flows from financing activities:    
Payment on MdR Escrow TLI   (50,000)
Cash received upon issuance of notes payable (net of issuance costs)   19,600,000
Repayment of notes payable (5,379,105)  
Cash received upon exercise of warrants   18,751
Repayment of convertible notes payable   (5,050,000)
Payment on note payable (578,804) (42,500)
Net cash provided (used in) by financing activities (8,911,688) 1,266,251
Effect of exchange rate changes on cash (1,592) 4,044
Net decrease in cash (1,260,201) (1,673,730)
Cash at beginning of period 2,555,151 5,082,569
Cash at end of period 1,294,950 3,408,839
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for: Interest expense 1,391,567 1,660,372
Cash paid for: Taxes paid 36,218 54,437
Cash paid for: Loan fees   400,000
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
Note payable issuance in conjunction with the acquisition of GE patent 1,000,000  
Non-cash interest increase in debt assumed in the Orthophoenix acquisition   750,000
Common stock issued in conjunction with debt extinguishment   654,000
Note payable issuance in conjunction with the acquisition of BATO patent   10,000,000
Note payable issuance in conjunction with the acquisition of Siemens patents 1,755,635  
Note payable issuance in conjunction with the acquisition of 3Dnano License 200,000  
Conversion from AP to NP   705,093
Medtech And Orthophoenix    
Cash flows from financing activities:    
Repayment of notes payable $ (2,953,779) (4,200,000)
Orthophoenix, LLC    
Cash flows from financing activities:    
Repayment of notes payable   (5,000,000)
Sarif    
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    
Cash flows from financing activities:    
Repayment of notes payable   $ (2,624,375)

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