Financials

v3.10.0.1
Consolidated Condensed Balance Sheets - USD ($)
Sep. 30, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 3,188,780 $ 14,948,529
Accounts receivable - net of allowance for bad debt of $0 and $387,976 for September 30, 2018 and December 31, 2017, respectively 102,098 6,826
Prepaid expenses and other current assets 550,184 92,855
Total current assets 3,841,062 15,048,210
Other assets:    
Property and equipment, net of accumulated depreciation of $1,517,694 and $134,513 for September 30, 2018 and December 31, 2017, respectively 3,855,812 10,011
Intangible assets, net of accumulated amortization of $47,451 for September 30, 2018 1,162,549
Total other assets 5,018,361 10,011
TOTAL ASSETS 8,859,423 15,058,221
Current liabilities:    
Accounts payable and accrued expenses 1,329,165 1,961,784
Litigation liability 2,150,000
Warrant liability 145,124 1,794,396
Convertible notes payable, net of discounts of $2,290,028 for December 31, 2017 1,763,920
Total current liabilities 1,474,289 7,670,100
Long-term liabilities    
Convertible notes payable, net of discounts of $0 for September 30, 2018 999,106
Total long-term liabilities 999,106
Total liabilities 2,473,395 7,670,100
Commitments and Contingencies
Stockholders' Equity:    
Preferred stock, $0.0001 par value, 50,000,000 shares authorized, 0 and 5,513 issued and outstanding at September 30, 2018 and December 31, 2017, respectively 1
Common stock, $0.0001 par value; 200,000,000 shares authorized; 25,519,940 and 12,477,781 issued and outstanding at September 30, 2018 and December 31, 2017, respectively 2,552 1,248
Additional paid-in capital 104,530,234 97,113,723
Accumulated other comprehensive loss (450,719) (450,734)
Accumulated deficit (97,696,039) (89,276,117)
Total stockholders' equity 6,386,028 7,388,121
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 8,859,423 $ 15,058,221

Source

v3.10.0.1
Consolidated Condensed Statements of Operations and Comprehensive Income (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Revenues        
Total revenues $ 338,672 $ 162,713 $ 1,267,141 $ 609,650
Operating costs and expenses        
Cost of revenue 1,132,570 64,836 2,331,909 1,544,322
Amortization of patents 457,419 1,803,264
Compensation and related taxes 137,338 1,871,946 803,309 3,718,034
Consulting fees 347,500 133,018 573,286 189,819
Professional fees 126,446 616,125 1,157,246 1,686,955
General and administrative 89,859 213,130 1,212,469 599,416
Patent impairment 723,218 723,218
Break-up fee - issuance of shares to GBV 2,850,000
Total operating expenses 1,833,713 4,079,692 8,928,219 10,265,028
Operating loss (1,495,041) (3,916,979) (7,661,078) (9,655,378)
Other income (expenses)        
Other income 125,125 2,252,886 108,670 3,151,418
Foreign exchange gain (loss) (8,003) (480,240) (31,096) (463,191)
Loss on debt extinguishment (283,237) (283,237)
Loss on sale of company (1,519,875) (1,519,875)
Realized gain (loss) on sale of digital currencies 8,760 (73,533)
Change in fair value adjustment of Clouding IP earn out 754,321 768,200
Change in fair value of warrant liability 45,595 (1,909,879) 1,593,481 (1,914,786)
Amortization of debt discount (2,290,028)
Interest income 2,553 931 2,553 2,793
Interest expense (19,446) (1,283,223) (68,891) (2,416,722)
Loss before income taxes (1,340,457) (6,385,295) (8,419,922) (12,330,778)
Income tax expense (12,191) (29,433)
Net loss (1,340,457) (6,397,486) (8,419,922) (12,360,211)
Net loss attributable to non-controlling interests (280,000) (124,714)
Net loss attributable to common stockholders $ (1,340,457) $ (6,677,486) $ (8,419,922) $ (12,484,925)
Net loss per share, basic and diluted: $ (0.06) $ (1.06) $ (0.42) $ (2.24)
Weighted average shares outstanding, basic and diluted: 24,321,788 6,270,299 19,893,901 5,564,465
Net loss attributable to common stockholders $ (1,340,457) $ (6,677,486) $ (8,419,922) $ (12,484,925)
Other comprehensive income:        
Unrealized gain on foreign currency translation 482,622 15 609,768
Comprehensive loss attributable to Marathon Patent Group, Inc. (1,340,457) (6,194,864) (8,419,907) (11,875,157)
Cryptocurrency Mining Revenue [Member]        
Revenues        
Total revenues 338,672 1,200,171
Other Revenue [Member]        
Revenues        
Total revenues $ 162,713 $ 66,970 $ 609,650

Source

v3.10.0.1
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (8,419,922) $ (12,484,925)
Adjustments to reconcile net loss to net cash (used in) operating activities:    
Depreciation 1,405,147 1,248
Amortization of patents and website 48,222 1,803,264
Realized loss on sale of digital currencies 73,533
Change in fair value of warrant liability (1,593,481) 1,914,786
Impairment of intangible assets 704,678
Stock based compensation 496,435 1,523,187
Amortization of debt discount 2,290,028
Bad debt allowance 6,826
Non-cash interest, discount, and financing costs (4,397,381)
Change in fair value of Clouding earnout (768,200)
Break-up fee -issuance of shares to GBV 2,850,000
Non-controlling interest (27,435)
Other non-cash adjustments 182,024
Changes in operating assets and liabilities:    
Accounts receivables (102,098) (28,561)
Digital currencies (1,098,073)
Proceeds from sale of digital currencies 1,024,540
Litigation liability (2,150,000)
Prepaid expenses and other assets (457,329) (269,693)
Other non current assets 201,203
Accounts payable and accrued expenses (631,873) (5,262,242)
Net cash used in operating activities (6,258,045) (14,805,104)
CASH FLOWS FROM INVESTING ACTIVITIES    
Acquisition of patents (250,000)
Disposal of patents 2,771,757
Purchase of property and equipment (5,251,719) (6,291)
Net cash (used in) provided by investing activities (5,501,719) 2,765,466
CASH FLOWS FROM FINANCING ACTIVITIES    
Payment on note payable (2,741,286)
Proceeds received on issuance of notes payable 6,100,000
Proceeds received on private placement 5,158,906
Proceeds received on exercise of warrants 2,549,084
Net cash provided by financing activities 11,066,704
Effect of foreign exchange rate changes 15 16,509
Net decrease in cash and cash equivalents (11,759,749) (956,425)
Cash and cash equivalents - beginning of period 14,948,529 4,998,314
Cash and cash equivalents - end of period 3,188,780 4,041,889
SUPPLEMENTAL CASH FLOW INFORMATION    
Cash paid for interest expense 368,923
Cash paid during the year for income taxes 29,433
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 551
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

Source