Financials

v3.7.0.1
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Current assets:    
Cash $ 1,095,721 $ 4,998,314
Accounts receivable - net of allowance for bad debt of $387,976 as of June 30, 2017 and December 31, 2016 116,336 95,069
Bonds posted with courts 375,603  
Note receivable 588,864 225,982
Prepaid expenses and other current assets, net of discounts of $2,659 for June 30, 2017 and $3,724 for December 31, 2016 128,718 202,067
Total current assets 2,305,242 5,521,432
Other assets:    
Property and equipment, net of accumulated depreciation of $128,718 and $108,407 for June 30, 2017 and December 31, 2016 12,213 28,329
Intangible assets, net of accumulated amortization of $12,691,608 and $11,323,185 for June 30, 2017 and December 31, 2016 11,358,722 12,314,628
Other non current assets, net of discounts of $0 for June 30, 2017 and $797 for December 31, 2016 200,000 201,203
Goodwill 224,353 222,843
Total other assets 11,795,288 12,767,003
Total Assets 14,100,530 18,288,435
Current liabilities:    
Accounts payable and accrued expenses 5,294,616 7,217,078
Clouding IP earn out - current portion 81,930 81,930
Notes payable, net of discounts of $503,572 for June 30, 2017 and $852,404 for December 31, 2016 5,622,173 13,162,007
Total current liabilities 10,998,719 20,461,015
Long-term liabilities    
Notes Payable, net of discount of $1,302,129 for June 30, 2017 and $57,763 for December 31, 2016 11,499,723 4,670,502
Clouding IP earn out 1,386,203 1,400,082
Revenue share liability 1,225,000 1,000,000
Other long term liability 39,853 43,978
Total long-term liabilities 14,150,779 7,114,562
Total liabilities 25,149,498 27,575,577
Stockholders' Deficit:    
Preferred stock Series B, $.0001 par value, 100,000,000 shares authorized: 782,004 issued and outstanding at June 30, 2017 and December 31, 2016 78 78
Common stock, $.0001 par value; 200,000,000 shares authorized; 23,257,472 at June 30, 2017 and 18,552,472 at December 31, 2016 2,326 1,856
Additional paid-in capital 53,950,993 49,877,710
Accumulated other comprehensive (loss) (933,245) (1,060,390)
Accumulated deficit (63,749,987) (57,942,548)
Total Marathon Patent Group Stockholders' Deficit (10,729,834) (9,123,294)
Non-controlling Interests (319,134) (163,848)
Total Equity (11,048,968) (9,287,142)
Total liabilities and stockholders' equity $ 14,100,530 $ 18,288,435

Source

v3.7.0.1
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME        
Revenues $ 368,800 $ 34,349,762 $ 446,937 $ 36,409,438
Expenses        
Cost of revenues 1,024,078 15,467,763 1,479,486 18,107,740
Amortization of patents and website 639,887 1,961,411 1,345,846 3,987,310
Compensation and related taxes 760,542 1,120,924 1,846,088 2,154,270
Consulting fees 85,580 364,836 56,801 645,612
Professional fees 645,144 498,212 1,070,830 903,705
General and administrative 142,281 223,130 386,286 428,513
Goodwill impairment 0 83,000 0 83,000
Patent impairment   620,696   993,890
Total operating expenses 3,297,512 20,339,972 6,185,337 27,304,040
Operating income (loss) from operations (2,928,712) 14,009,790 (5,738,400) 9,105,398
Other income (expenses)        
Other income (expenses) 913,357 (17,745) 898,532 (31,532)
Foreign exchange gain (loss) 102,913 (69,201) 17,050 (62,223)
Change in fair value adjustment of Clouding IP earn out   169,172 13,879 167,830
Warrant income (expense) 208,301   (4,907)  
Interest income 621 931 1,862 1,862
Interest expense (564,680) (844,407) (1,133,499) (1,851,256)
Total other income (expenses) 660,512 (761,250) (207,083) (1,775,319)
Loss before benefit for income taxes (2,268,200) 13,248,540 (5,945,483) 7,330,079
Income tax expense (17,242) (5,345,983) (17,242) (3,320,935)
Net income (loss) (2,285,442) 7,902,557 (5,962,725) 4,009,144
Net loss attributable to non-controlling interests 84,650 3,722 155,286 3,722
Net income (loss) attributable to common shareholders $ (2,200,792) $ 7,906,279 $ (5,807,439) $ 4,012,866
Income (loss) per common share:        
Basic (in dollars per share) $ (0.10) $ 0.53 $ (0.28) $ 0.27
Fully Diluted (in dollars per share) $ (0.10) $ 0.49 $ (0.28) $ 0.25
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:        
Basic (in shares) 22,566,648 14,994,697 20,822,791 14,980,919
Fully diluted (in shares) 22,566,648 16,031,564 20,822,791 16,017,786
Net loss $ (2,200,792) $ 7,906,279 $ (5,807,439) $ 4,012,866
Other Comprehensive Loss:        
Unrealized gain (loss) on foreign currency translation 126,062 (150,171) 127,144 97,256
Comprehensive loss (2,074,730) 7,756,108 (5,680,295) 4,110,122
Less: comprehensive income related to non-controlling interest 84,650 3,722 155,286 3,722
Comprehensive loss attributable to Marathon Patent Group, Inc. $ (1,990,080) $ 7,759,830 $ (5,525,009) $ 4,113,844

Source

v3.7.0.1
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash flows from operating activities:    
Net loss $ (5,807,439) $ 4,012,866
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation 948 2,710
Amortization of patents and website 1,345,846 3,987,310
Deferred tax asset   3,547,856
Deferred tax liability   (275,490)
Impairment of intangible assets   993,890
Impairment of goodwill 0 83,000
Stock based compensation 183,356 1,062,200
Stock issued for services   136,000
Non-cash interest, discount, and financing costs 59,607 664,182
Change in fair value of Clouding earn out (13,879) (167,830)
Allowance for doubtful accounts   12,226
Non-controlling interest (155,286) (3,722)
Other non-cash adjustments (120,703) (104,899)
Changes in operating assets and liabilities    
Accounts receivable (21,267) (2,718)
Bonds posted with courts (375,603) (518,455)
Prepaid expenses and other assets (289,533) 165,301
Other non current assets 1,203  
Accounts payable and accrued expenses (1,922,462) (469,660)
Net cash provided by (used in) operating activities (7,115,212) 13,124,767
Cash flows from investing activities:    
Acquisition of patents   (1,150,000)
Purchase of property, equipment, and other intangible assets (4,194) (6,291)
Net cash used in investing activities (4,194) (1,156,291)
Cash flows from financing activities:    
Cash received upon issuance of equity (net of issuance costs) 3,753,063  
Issuance of Warrants 137,334  
Payments on note payable, net (103,000) (437,070)
Net cash provided by (used in) by financing activities 3,212,397 (7,364,703)
Effect of exchange rate changes on cash 4,416 (145)
Net increase (decrease in) cash (3,902,593) 4,603,628
Cash at beginning of period 4,998,314 2,555,151
Cash at end of period 1,095,721 7,158,779
Cash paid for:    
Interest expense 456,917 1,187,074
Taxes paid 17,242 27,682
Cash invested in 3DNano   115,000
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Revenue share liability incurred in conjunction with note payable 225,000  
Warrant issued in conjunction with common stock issuance 257,957  
Note payable in conjunction with the acquisition of Munitech patents   1,750,000
Convertible debt warrant repricing   6,425
Medtech And Orthophoenix    
Cash flows from financing activities:    
Payments on notes payable   (2,953,779)
Fortress    
Cash flows from financing activities:    
Payments on notes payable   $ (3,973,854)
3D Nano    
Cash flows from financing activities:    
Payments on notes payable (100,000)  
Convertible notes payable 50,000  
Medtech Note    
Cash flows from financing activities:    
Proceeds from notes payable 600,000  
Seimens    
Cash flows from financing activities:    
Payments on notes payable (1,000,000)  
Vendor    
Cash flows from financing activities:    
Payments on notes payable $ (125,000)  

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