Marathon Patent Group Surpasses $1.5 Million in Patent Settlement & Licensing Proceeds in Second Quarter
Company Currently Has 33 Active Lawsuits With 42 Different Defendants
ALEXANDRIA, VA -- (Marketwired) -- 08/15/13 -- Marathon Patent Group, Inc. (OTCBB: MARAD) ("Marathon"), a patent licensing company, announced today its financial results for the second quarter ended June 30, 2013 ("Q2 2013").
For Q2, 2013, the Company reported gross revenue of $1,524,979, as a result of three patent licensing and settlement agreements. Q2 2013 marks the first quarter the Company has reported significant licensing and settlement revenue. Included in the gross revenue amount is the value of certain patents received in settlement from a defendant.
Gross profit margin was approximately 50% during the quarter. Cost of revenues mainly consists of expenses incurred in connection with the Company's patent enforcement activities, such as legal fees, consulting costs, patent maintenance, royalty fees for acquired patents as well as the amortization of acquired patents.
As of June 30, 2013 the Company reported cash and cash equivalents of approximately $6.4 million.
Commenting on the announcement, Doug Croxall, Founder & CEO of Marathon Patent Group, stated, "Q2 2103 was Marathon's first full quarter of patent enforcement activity. We launched our first patent licensing campaign in March 2013 and we are pleased to have already generated over $1.5 million in settlements. During the second quarter, we launched two new licensing campaigns, Sampo and Relay IP. Since the start of the third quarter both of those licensing campaigns have produced revenue in the form of settlement and license agreements. The speed in which we have begun to monetize our patents speaks directly to both the quality of patents and our effectiveness of enforcement."
Mr. Croxall continued, "We have built a robust, highly scalable IP monetization platform that leverages our ability to manage multiple licensing campaigns while actively pursuing the acquisition of other patent portfolios. We have over $6 million in cash and no debt; this gives us a tremendous opportunity to continue to expand our portfolio while we work to monetize our existing portfolios via licensing campaigns."
Recent Company Highlights:
- In June, the Company completed a $6 Million financing, led by IPNav Capital, founded by Erich Spangenberg.
- In June, the Company's wholly-owned subsidiary, Relay IP, Inc., filed a patent infringement lawsuit in the United States District Court for the District of Delaware against 10 named defendants, including CBOE Holdings, Inc., The Nasdaq OMX Group, Inc., ActiveTick LLC, BATS Trading Inc., Lek Securities Corporation, Direct Edge ECN LLC and others.
- In June, July and August, the Company's wholly owned subsidiary, Sampo IP, LLC, entered into three separate license and settlement agreements with a leading technology companies. Marathon's Sampo IP, LLC subsidiary initiated its licensing campaign in March 2013.
- In July, the Company's wholly-owned subsidiary, CyberFone Systems, LLC, entered into two separate license and settlement agreements -- one with one of the largest mobile phone and telecommunications equipment manufacturers in the world; and, one with one of the largest payment terminal companies in the United States.
- In July, the Company's wholly-owned subsidiary, Relay IP, Inc., entered into a settlement and license agreement with a leading technology company. This first agreement for the Relay IP patent occurred within three months of the commencement of Relay IP's licensing campaign.
- In August, the Company's wholly-owned subsidiary, Relay IP, Inc., filed a patent infringement lawsuit against Cablevision Systems Corp.
For Q2 2013, operating expenses were approximately $1.6 million. Such operating expenses included non-cash expenses of approximately $822,000 relating to stock-based compensation to employees and consultants. Income available to common stockholders for Q2 2013 was ($810,499) or ($0.19) per diluted share. The weighted average number of fully diluted shares outstanding for Q2 2013 was 4,249,120.
At the end of Q2 2013, the Company had approximately $7.1 million in current assets, and no long-term debt. Shareholders' equity at June 30, 2013 increased to $11.3 million as compared to $3.9 million at December 31, 2012. As of August 14, 2013, there were approximately 5.3 million shares of common stock outstanding.
Marathon Patent Group:
Based in Alexandria, VA, Marathon Patent Group is a patent licensing company serving a wide range of patent owners from Fortune 500 companies to independent inventors. Marathon provides its clients advice and services that enable them to realize financial and strategic returns on their intellectual property rights. Marathon's operating subsidiaries acquire patent assets, partner with patent holders, and monetize patent portfolios through actively managed patent licensing campaigns. Marathon has maintained a close working relationship for the past 10 years with IPNav (www.ipnav.com), a global leader in full service patent monetization. To learn more about Marathon Patent Group, visit http://www.marathonpg.com/.
Forward Looking Statements:
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), not limited to Risk Factors relating to its patent business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
Investor Relations Contacts:
The Del Mar Consulting Group, Inc.
Robert B. Prag
Alex Partners, LLC
Source: Marathon Patent Group
Released August 15, 2013