Financials

v3.10.0.1
Consolidated Condensed Balance Sheets - USD ($)
Jun. 30, 2018
Dec. 31, 2017
Current assets:    
Cash $ 4,232,611 $ 14,948,529
Digital currencies 385,275
Accounts receivable - net of allowance for bad debt of $387,976 for December 31, 2017 6,826
Prepaid expenses and other current assets 574,852 92,855
Total current assets 5,192,738 15,048,210
Other assets:    
Property and equipment, net of accumulated depreciation of $941,368 and $134,513 for June 30, 2018 and December 31, 2017, respectively 4,457,869 10,011
Intangible assets, net of accumulated amortization of $29,657 for June 30, 2018 1,180,343
Total other assets 5,638,212 10,011
TOTAL ASSETS 10,830,950 15,058,221
Current liabilities:    
Accounts payable and accrued expenses 1,953,693 1,961,784
Litigation liability 2,150,000
Warrant liability 190,719 1,794,396
Notes payable, net of discounts of $0 and $2,290,028 for June 30, 2018 and December 31, 2017, respectively 999,106 1,763,920
Total current liabilities 3,143,518 7,670,100
Total liabilities 3,143,518 7,670,100
Commitments and Contingencies
Stockholders' Equity:    
Preferred stock, $0.0001 par value, 50,000,000 shares authorized, 1,943 and 5,513 issued and outstanding at June 30, 2018 and December 31, 2017, respectively 1
Common stock, $0.0001 par value; 200,000,000 shares authorized; 23,577,940 and 12,477,781 issued and outstanding at June 30, 2018 and December 31, 2017, respectively 2,358 1,248
Additional paid-in capital 104,491,375 97,113,723
Accumulated other comprehensive loss (450,719) (450,734)
Accumulated deficit (96,355,582) (89,276,117)
Total stockholders' equity 7,687,432 7,388,121
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 10,830,950 $ 15,058,221

Source

v3.10.0.1
Consolidated Condensed Statements of Operations and Comprehensive Income (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Revenues        
Total revenues $ 688,502 $ 368,800 $ 928,469 $ 446,937
Operating costs and expenses        
Cost of revenue 931,630 1,024,078 1,199,339 1,479,486
Amortization of patents 639,887 1,345,846
Compensation and related taxes 252,853 760,542 665,971 1,846,088
Consulting fees 187,583 85,580 225,786 56,801
Professional fees 226,514 645,144 1,030,800 1,070,830
General and administrative 558,894 142,281 1,122,610 386,286
Realized loss on sale of digital currencies 3,710 5,220
Change in fair value of digital currencies 67,516 77,073
Break-up fee - issuance of shares to GBV 2,850,000 2,850,000
Total operating expenses 5,078,700 3,297,512 7,176,799 6,185,337
Operating loss (4,390,198) (2,928,712) (6,248,330) (5,738,400)
Other income (expenses)        
Other income (expenses) (18,909) 913,357 (16,455) 898,532
Foreign exchange gain (loss) (7,760) 102,913 (23,093) 17,050
Change in fair value adjustment of Clouding IP earn out 13,879
Change in fair value of warrant liability 94,629 208,301 1,547,886 (4,907)
Amortization of debt discount (345,256) (2,290,028)
Interest income 621 1,862
Interest expense (9,151) (564,680) (49,445) (1,133,499)
Loss before income taxes (4,676,645) (2,268,200) (7,079,465) (5,945,483)
Income tax expense (17,242) (17,242)
Net loss (4,676,645) (2,285,442) (7,079,465) (5,962,725)
Net loss attributable to non-controlling interests (84,650) (155,286)
Net loss attributable to common stockholders $ (4,676,645) $ (2,200,792) $ (7,079,465) $ (5,807,439)
Net loss per share, basic and diluted: $ (0.23) $ (0.39) $ (0.40) $ (1.12)
Weighted average shares outstanding, basic and diluted: 20,037,189 5,641,662 17,643,262 5,205,698
Net loss attributable to common stockholders $ (4,676,645) $ (2,200,792) $ (7,079,465) $ (5,807,439)
Other comprehensive income:        
Unrealized gain on foreign currency translation 126,062 15 127,144
Comprehensive loss attributable to Marathon Patent Group, Inc. (4,676,645) (2,074,730) (7,079,450) (5,680,295)
Cryptocurrency Mining Revenue [Member]        
Revenues        
Total revenues 661,917 861,499
Other Revenue [Member]        
Revenues        
Total revenues $ 26,585 $ 368,800 $ 66,970 $ 446,937

Source

v3.10.0.1
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (7,079,465) $ (5,807,439)
Adjustments to reconcile net loss to net cash (used in) operating activities:    
Depreciation 806,598 948
Amortization of patents and website 29,914 1,345,846
Realized loss on sale of digital currencies 5,220
Change in fair value of warrant liability (1,547,886)
Stock based compensation 457,382 183,356
Amortization of debt discount 2,290,028
Bad debt allowance 6,826
Non-cash interest, discount, and financing costs 59,607
Change in fair value of digital currency 77,073
Change in fair value of Clouding earnout (13,879)
Break-up fee - issuance of shares to GBV 2,850,000
Non-controlling interest (155,286)
Other non-cash adjustments (120,703)
Changes in operating assets and liabilities:    
Accounts receivables (21,267)
Digital currencies (861,499)
Litigation liability (2,150,000)
Bonds posted with courts (375,603)
Prepaid expenses and other assets (481,997) (289,533)
Other non current assets 1,203
Accounts payable and accrued expenses (7,345) (1,922,462)
Net cash used in operating activities (5,605,151) (7,115,212)
CASH FLOWS FROM INVESTING ACTIVITIES    
Acquisition of patents (250,000)
Purchase of property and equipment (5,254,713) (4,194)
Net cash used in investing activities (5,504,713) (4,194)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payment on note payable (1,328,000)
Proceeds from sale of digital currencies 393,931
Proceeds received on issuance of notes payable 650,000
Proceeds received on private placement 3,753,063
Proceeds received on exercise of warrants 137,334
Net cash provided by financing activities 393,931 3,212,397
Effect of foreign exchange rate changes 15 4,416
Net decrease in cash and cash equivalents (10,715,918) (3,902,593)
Cash and cash equivalents - beginning of period 14,948,529 4,998,314
Cash and cash equivalents - end of period 4,232,611 1,095,721
SUPPLEMENTAL CASH FLOW INFORMATION    
Cash paid for interest expense 456,917
Cash paid during the year for income taxes 17,242
Supplemental schedule of non-cash investing and financing activities:    
Common stock issued for acquisition of patents 960,000
Conversion of Series E Preferred Stock to common stock 357
Common stock issued for note conversion 3,055,588
Restricted stock issuance 44
Revenue share liability incurred in conjunction with note payable 225,000
Warrant issued in conjunction with common stock issuance 257,957
Warrants exercised into common shares $ 55,791

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