Financials

v3.7.0.1
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($)
Mar. 31, 2017
Dec. 31, 2016
Current assets:    
Cash $ 493,452 $ 4,998,314
Accounts receivable - net of allowance for bad debt of $387,976 for March 31, 2017 and December 31, 2016, respectively 103,397 95,069
Bonds posted with courts 351,647  
Note Receivable 588,864 225,982
Prepaid expenses and other current assets, net of discounts of $3,279 for March 31, 2017 and $3,724 for December 31, 2016 226,088 202,067
Total current assets 1,763,448 5,521,432
Other assets:    
Property and equipment, net of accumulated depreciation of $118,420 and $108,407 for March 31, 2017 and December 31, 2016 20,414 28,329
Intangible assets, net of accumulated amortization of $12,028,755 and $11,323,189 for March 31, 2017 and December 31, 2016 11,683,170 12,314,628
Other non current assets, net of discounts of $797 for March 31, 2017 and December 31, 2016, respectively 200,000 201,203
Goodwill 224,353 222,843
Total other assets 12,127,937 12,767,003
Total Assets 13,891,385 18,288,435
Current liabilities:    
Accounts payable and accrued expenses 6,117,663 7,217,078
Clouding IP earn out - current portion 81,930 81,930
Notes payable, net of discounts of $440,219 and $852,404 for March 31, 2017 and December 31, 2016 3,666,278 13,162,007
Total current liabilities 9,865,871 20,461,015
Long-term liabilities    
Notes Payable, net of discount of $572,763 and $57,763 for March 31, 2017 and December 31, 2016 12,685,536 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 255,400 43,978
Total long-term liabilities 15,552,139 7,114,562
Total liabilities 25,418,010 27,575,577
Stockholders' equity (deficit):    
Preferred stock Series B, $.0001 par value, 100,000,000 shares authorized: 782,004 issued and outstanding at March 31, 2017 and December 31, 2016 78 78
Common stock, $.0001 par value; 200,000,000 shares authorized; 19,302,472 and 18,552,472 issued at March 31, 2017 and December 31, 2016 2,627 1,877
Additional paid-in capital 51,313,656 49,877,689
Accumulated other comprehensive loss (1,059,308) (1,060,390)
Accumulated deficit (61,549,194) (57,942,548)
Total Marathon Patent Group stockholders' equity (deficit) (11,292,141) (9,123,294)
Noncontrolling Interests (234,484) (163,848)
Total stockholders' equity (deficit) (11,526,625) (9,287,142)
Total liabilities and stockholders' equity (deficit) $ 13,891,385 $ 18,288,435

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v3.7.0.1
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME    
Revenues $ 78,137 $ 2,059,676
Expenses    
Cost of revenues 451,762 2,639,976
Amortization of patents and website 705,958 2,025,899
Compensation and related taxes 1,085,546 1,033,346
Consulting fees (28,779) 280,776
Professional fees 425,686 405,493
General and administrative 247,652 217,010
Patent impairment   373,195
Total operating expenses 2,887,825 6,975,695
Operating loss (2,809,688) (4,916,019)
Other income (expenses)    
Other income (expense) (14,825) (2,159)
Foreign exchange gain (loss) (85,862) 6,978
Change in fair value adjustment of Clouding IP earn out 13,879 (1,342)
Warrant expense (213,208)  
Interest income 1,241 931
Interest expense (568,819) (1,006,850)
Total other expenses (867,594) (1,002,442)
Loss before benefit for income taxes (3,677,282) (5,918,461)
Income tax benefit   2,025,048
Net loss (3,677,282) (3,893,413)
Net (income) loss attributable to noncontrolling interests 70,636  
Net loss attributable to common shareholders $ (3,606,646) $ (3,893,413)
Loss per common share:    
Basic and fully diluted (in dollars per share) $ (0.19) $ (0.26)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:    
Basic and fully diluted (in shares) 19,059,559 14,967,141
Net loss attributable to common shareholders $ (3,606,646) $ (3,893,413)
Other comprehensive loss:    
Unrealized gain on foreign currency translation 1,083 247,427
Comprehensive loss (3,605,563) (3,645,986)
Less: comprehensive income related to non-controlling interest 70,636  
Comprehensive loss attributable to Marathon Patent Group, Inc. $ (3,534,927) $ (3,645,986)

Source

v3.7.0.1
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash flows from operating activities:    
Net loss $ (3,606,646) $ (3,893,413)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation 471 1,652
Amortization of patents and website 705,958 2,025,899
Deferred tax asset   (1,934,419)
Deferred tax liability   (76,463)
Impairment of intangible assets   373,195
Stock based compensation 41,424 550,436
Non-cash interest, discount, and financing costs 52,733 605,690
Change in fair value of Clouding earnout (13,879) 1,342
Non-controlling interest (70,636)  
Other non-cash adjustments 67,164 (33,607)
Changes in operating assets and liabilities:    
Accounts receivable (8,328) (15,275)
Bonds posted with courts (351,647) 359,960
Prepaid expenses and other assets (386,903) 192,352
Other non current assets 1,203 2,069
Accounts payable and accrued expenses (1,099,415) 1,953,751
Net cash provided by (used in) operating activities (4,668,501) 113,169
Cash flows from investing activities:    
Purchase of property, equipment, and other intangible assets (2,097) (2,097)
Net cash provided by (used in) investing activities (2,097) (2,097)
Cash flows from financing activities:    
Cash received upon issuance of common stock 1,262,865  
Issuance of Warrants 132,427  
Proceeds from Fortress note payable 4,500,000  
Payments on note payable, net (103,000)  
Net cash provided (used in) by financing activities 167,292 (1,248,440)
Effect of exchange rate changes on cash (1,556) 2,607
Net decrease in cash (4,504,862) (1,134,761)
Cash at beginning of period 4,998,314 2,555,151
Cash at end of period 493,452 1,420,390
Cash paid for:    
Interest expense 333,608 401,159
Taxes paid   7,999
Fortress    
Cash flows from financing activities:    
Payments on notes payable (4,500,000) (1,184,600)
Seimens    
Cash flows from financing activities:    
Payments on notes payable (1,000,000)  
3D Nano    
Cash flows from financing activities:    
Payments on notes payable (100,000)  
Vendor    
Cash flows from financing activities:    
Payments on notes payable $ (25,000) $ (63,840)

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