● |
Revenues of $4.1 million, up 204% from the prior quarter
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●
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Year over year revenues up 47% compared to the three months ended March 31, 2014
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●
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Generated revenue from a total of thirteen (13) license agreements, across 25 different licensees
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●
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Cash of $9.5 million compared to $5.1 million at December 31, 2014
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●
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Net working capital improved by $11.5 million
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Currently have 19 portfolios covering 14 distinct technology areas, 15 in active licensing campaigns
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Added seasoned IP veterans Richard Chernicoff and Dirk Tyler to the board as independent directors
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● |
CONTACT INFORMATION
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Marathon Patent Group
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Jason Assad
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678-570-6791
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Jason@marathonpg.com
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MARATHON PATENT GROUP, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
March 31, 2015
|
December 31, 2014
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash
|
$ | 9,477,969 | $ | 5,082,569 | ||||
Accounts receivable - net
|
763,070 | 216,997 | ||||||
Bonds posted with courts
|
1,732,895 | 1,946,196 | ||||||
Prepaid expenses and other current assets
|
149,643 | 438,391 | ||||||
Total current assets
|
12,123,577 | 7,684,153 | ||||||
Other assets:
|
||||||||
Property and equipment, net
|
80,659 | 53,828 | ||||||
Intangible assets, net
|
40,157,085 | 43,363,832 | ||||||
Deferred tax assets
|
7,117,753 | 4,789,293 | ||||||
Goodwill
|
4,453,997 | 4,894,208 | ||||||
Total other assets
|
51,809,495 | 53,101,161 | ||||||
Total Assets
|
$ | 63,933,072 | $ | 60,785,314 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued expenses
|
$ | 5,195,719 | $ | 3,293,746 | ||||
Clouding IP earn out - current portion
|
2,092,000 | 2,092,000 | ||||||
Notes payable, net of discounts of $784,154 and $82,010 for 3/31/15 and 12/31/14
|
8,059,305 | 16,560,000 | ||||||
Total current liabilities
|
15,347,024 | 21,945,746 | ||||||
Long-term liabilities
|
||||||||
Notes Payable, net of discount of $1,818,185 and $64,925, for 3/31/15 and 12/31/14
|
17,486,300 | 5,403,065 | ||||||
Other non current liability
|
52,867 | - | ||||||
Deferred tax liability
|
1,392,557 | 1,823,884 | ||||||
Revenue Share Liability
|
1,000,000 | - | ||||||
Clouding IP earn out
|
7,360,000 | 7,360,000 | ||||||
Total long-term liabilities
|
27,291,724 | 14,586,949 | ||||||
Total liabilities
|
42,638,748 | 36,532,695 | ||||||
Stockholders' Equity:
|
||||||||
Preferred stock Series B, $.0001 par value, 50,000,000 shares authorized: 982,000 and 932,000 issued and outstanding at March 31, 2015 and December 31, 2014
|
98 | 93 | ||||||
Common stock, $.0001 par value, 200,000,000 shares authorized: 13,990,869 and 13,791,460 issued and outstanding at March 31, 2015 and December 31,2014
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1,399 | 1,379 | ||||||
Additional paid-in capital
|
39,750,659 | 36,977,169 | ||||||
Accumulated other comprehensive loss
|
(1,338,596 | ) | (388,357 | ) | ||||
Accumulated deficit
|
(17,119,236 | ) | (12,337,665 | ) | ||||
Total stockholders' equity
|
21,294,324 | 24,252,619 | ||||||
Total liabilities and stockholders' equity
|
$ | 63,933,072 | $ | 60,785,314 |
MARATHON PATENT GROUP, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||
For the
three months ended |
For the
three months ended |
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Revenue
|
$ | 4,093,869 | $ | 2,780,000 | ||||
Expenses
|
||||||||
Cost of revenues
|
4,328,165 | 1,110,579 | ||||||
Amortization of patents and website
|
2,598,461 | 453,647 | ||||||
Compensation and related taxes
|
1,581,074 | 729,987 | ||||||
Consulting fees
|
896,543 | 428,107 | ||||||
Professional fees
|
769,615 | 256,855 | ||||||
General and administrative
|
219,481 | 82,658 | ||||||
Total operating expenses
|
10,393,339 | 3,061,833 | ||||||
Operating loss
|
(6,299,470 | ) | (281,833 | ) | ||||
Other income (expenses)
|
||||||||
Foreign exchange gain/(loss)
|
(39,402 | ) | - | |||||
Interest income
|
2 | 227 | ||||||
Interest expense
|
(931,541 | ) | - | |||||
Total other income (expense)
|
(970,941 | ) | 227 | |||||
Loss before provision for income taxes
|
(7,270,411 | ) | (281,606 | ) | ||||
Income tax benefit
|
2,488,839 | - | ||||||
Net loss attributable to common shareholders
|
(4,781,571 | ) | (281,606 | ) | ||||
Loss per common share, basic and diluted:
|
$ | (0.34 | ) | $ | (0.03 | ) | ||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - Basic and Diluted
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13,868,811 | 10,979,186 |
MARATHON PATENT GROUP, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the
three months ended |
For the
three months ended |
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$ | (4,781,571 | ) | $ | (281,606 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
||||||||
Depreciation
|
1,869 | 1,417 | ||||||
Amortization of intangible assets and website
|
2,598,461 | 453,647 | ||||||
Non-cash equity compensation
|
685,753 | 680,627 | ||||||
Stock issued for services
|
750,334 | - | ||||||
Deferred tax liability
|
(161,984 | ) | - | |||||
Deferred tax asset
|
(2,335,116 | ) | - | |||||
Non-cash interest, discounts and financing costs
|
613,719 | - | ||||||
Other non-cash adjustments
|
83,148 | - | ||||||
Changes in operating assets and liabilities
|
||||||||
Accounts receivable
|
(546,101 | ) | (10,000 | ) | ||||
Prepaid expenses
|
26,248 | (8,015 | ) | |||||
Accounts payable and accrued expenses
|
1,920,185 | 964,297 | ||||||
Net cash provided by (used in) operating activities
|
(1,145,055 | ) | 1,800,367 | |||||
Cash flows from investing activities:
|
||||||||
Purchase of property, equipment and other intangible assets
|
(37,147 | ) | - | |||||
Net cash provided by (used in) investing activities
|
(37,147 | ) | - | |||||
|
||||||||
Cash flows from financing activities:
|
||||||||
|
||||||||
Payment on note payable in connection with the acquisition of IP Liquidity
|
(1,068,750 | ) | - | |||||
Payment on assumed note payable in connection with the acquisition of Orthophoenix
|
(3,750,000 | ) | - | |||||
Payment on note payable in connection with the acquisition of Dynamic Advances
|
(905,000 | ) | - | |||||
Payment on note payable in connection with the acquisition of Medtech and Orthophoenix
|
(3,000,000 | ) | - | |||||
Payment on note payable in connection with the acquisition of Sarif
|
(276,250 | ) | - | |||||
Repayment on convertible notes
|
(5,050,000 | ) | - | |||||
Cash received upon issuance of notes payable, net of $400,000 loan fee
|
19,600,000 | - | ||||||
Cash received upon exercise of warrants
|
18,750 | - | ||||||
Net cash provided by financing activities
|
5,568,750 | - | ||||||
Effect of exchange rate changes in cash
|
8,852 | - | ||||||
Net increase in cash
|
4,395,400 | 1,800,366 | ||||||
Cash at beginning of year
|
5,082,569 | 3,610,262 | ||||||
Cash at end of period
|
$ | 9,477,969 | $ | 5,410,628 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid for:
|
||||||||
Interest expense
|
$ | 317,821 | $ | - | ||||
Taxes Paid
|
$ | 8,260 | $ | - | ||||
Loan fees
|
$ | 400,000 | $ | - | ||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
Common stock issued in conjunction with notes payable
|
1,000,000 | - | ||||||
Warrants issued in conjunction with notes payable
|
318,679 | - | ||||||
Revenue share liability incurred in conjunction with notes payable
|
1,000,000 | - |
For the Three Months Ended March 31, 2015
|
For the Three Months Ended March 31, 2014
|
|||||||
Net loss attributable to Common Shareholders
|
(4,781,571 | ) | (281,606 | ) | ||||
Non-GAAP
|
||||||||
Amortization of intangible assets & depreciation
|
2,600,330 | 455,063 | ||||||
Equity-based compensation
|
1,459,083 | 680,627 | ||||||
Non-cash interest expense
|
613,719 | - | ||||||
Deferred tax benefit
|
(2,488,839 | ) | - | |||||
Other
|
(3,063 | ) | - | |||||
Non-GAAP profit (loss)
|
(2,600,341 | ) | 854,084 |
For the Three Months Ended March 31, 2015
|
For the Three Months Ended March 31, 2014
|
|||||||
Non-GAAP net income (loss)
|
$ | (2,600,341 | ) | $ | 854,084 | |||
Denominator
|
||||||||
Denomintor for basic and diluted loss per share
|
||||||||
(weighted-average shares)
|
13,868,811 | 10,979,186 | ||||||
Non-GAAP earnings (Loss) per common share, basic and diluted:
|
||||||||
Non-GAAP income (Loss)
|
$ | (0.19 | ) | $ | 0.08 |