Financials

v3.8.0.1
Consolidated Condensed Balance Sheets (Unaudited) - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Current assets:    
Cash $ 122,172 $ 4,998,314
Restricted Cash 3,919,718
Total cash 4,041,890 4,998,314
Accounts receivable - net of allowance for bad debt of $387,976 and $387,976 for September 30, 2017 and December 31, 2016 123,630 95,069
Note receivable 588,864 225,982
Prepaid expenses and other current assets, net of discounts of $2,659 for September 30, 2017 and $3,724 for December 31, 2016 108,878 202,067
Total current assets 4,863,262 5,521,432
Other assets:    
Property and equipment, net of accumulated depreciation of $133,224 and $108,407 for September 30, 2017 and December 31, 2016 9,803 28,329
Intangible assets, net of accumulated amortization of $12,813,915 and $11,323,185 for September 30, 2017 and December 31, 2016 7,590,213 12,314,628
Other non current assets, net of discounts of $797 for December 31, 2016 201,203
Goodwill 228,401 222,843
Total other assets 7,828,417 12,767,003
Total Assets 12,691,679 18,288,435
Current liabilities:    
Accounts payable and accrued expenses 1,954,836 7,217,078
Clouding IP earn out - current portion 32,637 81,930
Revenue share liability 1,225,000
Warrant liability 2,411,750
Notes payable, net of discounts of $5,837,363 and $852,404 for September 30, 2017 and December 31, 2016 15,582,156 13,162,007
Total current liabilities 21,206,379 20,461,015
Long-term liabilities    
Notes Payable, net of discount of $57,763 for December 31, 2016 4,670,502
Clouding IP earn out 681,175 1,400,082
Revenue share liability 1,000,000
Other long term liability 37,236 43,978
Total long-term liabilities 718,411 7,114,562
Total liabilities 21,924,790 27,575,577
Stockholders' Deficit:    
Preferred stock Series B, $.0001 par value, 50,000,000 shares authorized: 195,501 issued and outstanding at September 30, 2017 and December 31, 2016 78 78
Common stock, $.0001 par value; 200,000,000 shares authorized; 7,776,016 and 4,638,118 at September 30, 2017 and December 31, 2016 3,111 1,856
Additional paid-in capital 61,833,077 49,877,710
Accumulated other comprehensive income (loss) (450,623) (1,060,390)
Accumulated deficit (70,427,472) (57,942,548)
Total Marathon Patent Group stockholders' equity (9,041,829) (9,123,294)
Noncontrolling interests (191,282) (163,848)
Total deficit (9,233,111) (9,287,142)
Total liabilities and stockholders' deficit $ 12,691,679 $ 18,288,435

Source

v3.8.0.1
Consolidated Condensed Statements of Operations and Comprehensive Income (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Income Statement [Abstract]        
Revenues $ 162,713 $ 43,113 $ 609,650 $ 36,452,551
Expenses        
Cost of revenues 64,836 1,094,378 1,544,322 19,202,118
Amortization of patents and website 457,419 2,030,886 1,803,264 6,018,196
Compensation and related taxes 1,871,946 1,252,571 3,718,034 3,406,841
Consulting fees 133,018 257,420 189,819 903,032
Professional fees 616,125 432,496 1,686,955 1,336,201
General and administrative 213,130 183,771 599,416 612,284
Goodwill impairment 0 83,000 0 83,000
Patent impairment 723,218 5,531,383 723,218 6,525,273
Total operating expenses 4,079,092 10,782,905 10,265,028 38,086,945
Operating loss from continuing operations (3,916,979) (10,739,792) (9,655,378) (1,634,394)
Other income (expenses)        
Other income (expense) 2,252,886 (37,116) 3,151,418 (68,647)
Foreign exchange (loss) (480,240) (175,850) (463,191) (238,073)
Loss on debt extinguishment (283,237) (283,237)
Loss on sale of company (1,519,875) (1,519,875)
Change in fair value adjustment of Clouding IP earn out 754,321 1,954,378 768,200 2,122,208
Warrant income (expense) (1,909,879) (1,914,786)
Interest income 931 931 2,793 2,793
Interest expense (1,283,223) (649,065) (2,416,722) (2,500,321)
Total other income (expenses) (2,468,316) 1,093,278 (2,675,400) (682,040)
Loss from continuing operations before benefit for income taxes (6,385,295) (9,646,514) (12,330,778) (2,316,434)
Income tax benefit (expense) (12,191) 3,347,909 (29,433) 26,974
Net Income (loss) (6,397,486) (6,298,605) (12,360,211) (2,289,460)
Net income (loss) attributable to Noncontrolling interests (280,000) 24,195 (124,714) 27,918
Net (loss) attributable to common shareholders $ (6,677,486) $ (6,274,410) $ (12,484,925) $ (2,261,542)
Income (loss) per common share:        
Basic $ (1.06) $ (1.67) $ (2.24) $ (0.61)
Diluted
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:        
Basic 6,270,299 3,761,786 5,564,465 3,736,213
Net loss $ (6,677,486) $ (6,274,410) $ (12,484,925) $ (2,261,542)
Other comprehensive loss:        
Unrealized gain on foreign currency translation 482,622 209,159 609,768 306,411
Comprehensive loss (6,194,864) (6,065,251) (11,875,157) (1,955,131)
Less: comprehensive income (loss) related to non-controlling interest (280,000) 24,195 (124,714) 27,918
Comprehensive loss attributable to Marathon Patent Group, Inc. $ (6,474,864) $ (6,041,056) $ (11,999,871) $ (1,927,213)

Source

v3.8.0.1
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:    
Net loss $ (12,484,925) $ (2,261,542)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation 1,248 3,780
Amortization of patents and website 1,803,264 6,018,196
Deferred tax asset 531,757
Deferred tax liability (638,268)
Loss on sale of companies 1,519,875
Warrant liability
Impairment of intangible assets 704,678 6,525,273
Impairment of goodwill 0 83,000
Stock based compensation 1,523,187 1,541,615
Stock issued for services 136,000
Non-cash interest, discount, and financing costs (4,397,381) 952,231
Change in fair value of Clouding earnout (768,200) (2,122,198)
Allowance for doubtful accounts 12,226
Beneficial conversion feature 4,017,729
Noncontrolling interest (27,435) (27,918)
Other non-cash adjustments 182,024 96,996
Changes in operating assets and liabilities    
Accounts receivable (28,561) 43,763
Bonds posted with courts 883,695
Prepaid expenses and other assets (269,693) 6,652
Other non current assets 201,203
Accounts payable and accrued expenses (5,262,242) 557,832
Net cash and restricted cash provided by (used in) operating activities (14,805,103) 11,214,122
Cash flows from investing activities:    
Acquisition of patents (3,522,656)
Disposal of patents 2,771,757
Purchase of property, equipment, and other intangible assets (6,291) (8,387)
Net cash provided by (used in) investing activities 2,765,466 (3,561,043)
Cash flows from financing activities:    
Cash received upon issuance of equity (net of issuance costs) 5,158,906
Issuance of warrants 2,549,084
Issuance of convertible notes payable 5,500,000  
Payments on notes payable, net (103,000) (578,804)
Net cash provided (used in) by financing activities 11,066,704 (8,911,688)
Effect of exchange rate changes on cash 16,509 (1,592)
Net decrease in cash (956,424) (1,260,201)
Cash at beginning of period 4,998,314 2,555,151
Cash and restricted cash at end of period 4,041,890 1,294,950
Cash paid for:    
Interest expense 368,923 1,187,074
Taxes paid 29,433 27,682
Cash invested in 3D Nano 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 issued in conjunction with the acquisition of Munitech patents 1,755,635
Medtech and Orthophoenix [Member]    
Cash flows from financing activities:    
Payments on notes payable (2,953,779)
Fortress Note Payable [Member]    
Cash flows from financing activities:    
Payments on notes payable (63,286) (5,379,105)
3D Nano License Note Payable [Member]    
Cash flows from financing activities:    
Payments on notes payable (100,000)
Medtronic Note Payable [Member]    
Cash flows from financing activities:    
Payments on notes payable (600,000)
Proceeds from notes payable 600,000
Siemen's Notes Payable [Member]    
Cash flows from financing activities:    
Payments on notes payable (1,750,000)
Vendors Notes Payable [Member]    
Cash flows from financing activities:    
Payments on notes payable (125,000)
Munitech Patents [Member]    
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Note payable issued in conjunction with the acquisition of Munitech patents 1,755,635
SE Patent [Member]    
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Note payable issued in conjunction with the acquisition of Munitech patents 100,000
3D Nano License [Member]    
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Note payable issued in conjunction with the acquisition of Munitech patents $ 200,000

Source