U.S. markets closed
  • S&P Futures

    3,808.75
    -8.00 (-0.21%)
     
  • Dow Futures

    31,210.00
    -26.00 (-0.08%)
     
  • Nasdaq Futures

    12,632.00
    -49.75 (-0.39%)
     
  • Russell 2000 Futures

    2,196.40
    -9.40 (-0.43%)
     
  • Crude Oil

    61.27
    -0.01 (-0.02%)
     
  • Gold

    1,709.80
    -6.00 (-0.35%)
     
  • Silver

    26.16
    -0.23 (-0.88%)
     
  • EUR/USD

    1.2055
    -0.0012 (-0.10%)
     
  • 10-Yr Bond

    1.4700
    +0.0550 (+3.89%)
     
  • Vix

    26.67
    +2.57 (+10.66%)
     
  • GBP/USD

    1.3930
    -0.0022 (-0.16%)
     
  • USD/JPY

    107.0340
    +0.0320 (+0.03%)
     
  • BTC-USD

    51,202.32
    +2,869.54 (+5.94%)
     
  • CMC Crypto 200

    1,023.77
    +35.68 (+3.61%)
     
  • FTSE 100

    6,675.47
    +61.72 (+0.93%)
     
  • Nikkei 225

    29,220.27
    -338.83 (-1.15%)
     

Marathon Patent Group Announces 2020 Fiscal Third Quarter Financial Results

  • Oops!
    Something went wrong.
    Please try again later.
Marathon Patent Group, Inc.
·12 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Year Over Year Quarterly Revenues Increase 160%

  • Strengthened Balance Sheet with Current Cash of $27.1M

  • Since May 1, 2020, Company has Invested $72M to Grow Mining Operations

LAS VEGAS, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Marathon Patent Group, Inc. (NASDAQ:MARA) ("Marathon" or "Company"), the largest publicly traded Bitcoin self-mining company in North America, today announced its operating results for the three months and nine month periods ended September 30, 2020, as published in its Form 10-Q filed today with the Securities and Exchange Commission.

Recent Financial Highlights

  • Reported revenues of $835,184 and $1.7 million during the three and nine months ended September 30, 2020 as compared to $321,716 and $908,175 during the three and nine months ended September 30, 2019. For the three and nine months ended September 30, 2020, this represented an increase of $513,468 or 160% and an increase of $805,657 or 89% over the same period in 2019.

  • Operating loss was approximately $2.0 million and $4.9 million for the three and nine months ended September 30, 2020 and operating loss of $807,859 and $2.5 million for the three and nine months ended September 30, 2019.

  • Per share net loss was $(0.06) and $(0.28) per basic and diluted share for the three and nine months ended September 30, 2020 compared to $(0.12) and $(0.37) in the three and nine month periods ended September 30, 2019.

  • Cash used in operations was $1.4 million and $3.4 million during the three months and nine months ended September 30, 2020, respectively.

  • The Company had approximately $17.3 million of cash and cash equivalents as of September 30, 2020. Today, the Company has approximately $27.1 million of cash and cash equivalents.

Marathon’s Chief Financial Officer, Sim Salzman, commented, “We are pleased to announce sizeable year over year revenue growth of 160% and 89% respectively in the three and nine-month periods. During the quarter, the Company was able to enter into favorable purchase agreements with Bitmain that allowed for the material improvement in its current and future financial position. We look forward to continuing our aggressive growth trajectory, while taking advantage of recently executed long term agreements with fixed pricing regardless of increased bitcoin pricing.”

Recent Operational Highlights

  • Completed $6.9 Million upsized underwritten public offering of common stock

  • Purchased 700 next generation M31S+ ASIC Miners

  • Entered into a long-term purchase contract with Bitmain for the purchase of 10,500 next generation Antminer S-19 Pro ASIC Miners

  • Engaged Gateway to lead expanded investor relations program

  • Entered into joint venture with Beowolf Energy for 105-Megawatt bitcoin mining data center

  • Named Simeon Salzman as Chief Financial Officer

  • Purchased an additional 10,000 next generation Antminer S-19 Pro ASIC Miners

  • Materially strengthened balance sheet

Merrick Okamoto, Chief Executive Officer, stated, “Our third quarter represents the single most productive quarter in company history and since I took over the CEO role. While we reported record quarterly mining revenues, the majority of the fundamental improvements made to our business in the quarter are not represented in the current filing.

“With only 2,060 miners in operation in September when Bitcoin was trading at $10,000, the company generated $650,000 in Bitcoin revenue, our largest quarterly Bitcoin revenue in history. By the end of the 2nd quarter in 2021, we will have 23,560 miners deployed which equates to a greater than 1100% increase in mining capacity. At current Bitcoin prices, our deployment of new miners has the potential to produce more than an 11 fold increase in our monthly revenue as compared to our September 2020 revenue production.”

About Marathon Patent Group

Marathon is a digital asset technology company that mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets.

Investor Notice

Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under "Risk Factors" in Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2019. If any of these risks were to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline, and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. Lastly, with the current worldwide situation caused by COVID-19, there can be no assurances as to when we may see any recovery in the bitcoin market, and if so, whether any recovery might be significant.

Forward-Looking Statements

Statements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “should,” “expect,” “anticipate,” “estimate,” “continue,” or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading “Risk Factors” in the Company's Annual Reports on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.

Marathon Patent Group Company Contact:

Jason Assad
Telephone: 678-570-6791
Email: Jason@marathonpg.com

Marathon Patent Group Investor Contact:

Gateway Investor Relations
Matt Glover and Charlie Schumacher
Telephone: 949-574-3860
Email: MARA@gatewayir.com


MARATHON PATENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)

September 30,

December 31,

2020

2019

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

17,252,110

$

692,963

Digital currencies

451,889

1,141

Deposit

13,269,670

-

Prepaid expenses and other current assets

627,552

800,024

Total current assets

31,601,221

1,494,128

Other assets:

Property and equipment, net of accumulated depreciation and impairment charges of $7,507,970 and $6,157,786 for September 30, 2020 and December 31, 2019, respectively

4,682,293

3,754,969

Right-of-use assets

224,954

297,287

Intangible assets, net of accumulated amortization of $189,804 and $136,422 for September 30, 2020 and December 31, 2019, respectively

1,020,196

1,073,578

Total other assets

5,927,443

5,125,834

TOTAL ASSETS

$

37,528,664

$

6,619,962

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued expenses

$

1,010,188

$

1,238,197

Mining servers payable

-

513,700

Current portion of lease liability

93,197

87,959

Warrant liability

31,500

12,849

Total current liabilities

1,134,885

1,852,705

Long-term liabilities

Convertible notes payable

-

999,106

Note payable

62,500

-

Lease liability

44,361

120,479

Total long-term liabilities

106,861

1,119,585

Total liabilities

1,241,746

2,972,290

Commitments and Contingencies

Stockholders' Equity:

Preferred stock, $0.0001 par value, 50,000,000 shares authorized, no shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

-

-

Common stock, $0.0001 par value; 200,000,000 shares authorized; 38,962,432 and 8,458,781 issued and outstanding at September 30, 2020 and December 31, 2019, respectively

3,897

846

Additional paid-in capital

147,554,790

109,705,051

Accumulated other comprehensive loss

(450,719

)

(450,719

)

Accumulated deficit

(110,821,050

)

(105,607,506

)

Total stockholders’ equity

36,286,918

3,647,672

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

37,528,664

$

6,619,962

MARATHON PATENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)

For the Three Months Ended

For the Nine Months Ended

September 30,

September 30,

2020

2019

2020

2019

Revenues

Cryptocurrency mining revenue

$

835,184

$

321,716

$

1,713,832

$

908,175

Total revenues

835,184

321,716

1,713,832

908,175

Operating costs and expenses

Cost of revenue

1,636,046

478,811

3,529,770

1,486,039

Compensation and related taxes

614,604

409,609

1,908,741

1,224,900

Consulting fees

259,563

34,000

325,688

84,000

Professional fees

206,368

91,908

515,562

287,282

General and administrative

112,800

115,247

311,303

359,319

Total operating expenses

2,829,381

1,129,575

6,591,064

3,441,540

Operating loss

(1,994,197

)

(807,859

)

(4,877,232

)

(2,533,365

)

Other income (expenses)

Other income

7,983

300

114,391

181,195

Foreign exchange loss

-

-

-

(11,873

)

Loss on conversion of note

-

-

(364,832

)

-

Realized gain (loss) on sale of digital currencies

11,206

(11,236

)

15,466

13,208

Change in fair value of warrant liability

(21,875

)

68,551

(18,651

)

(7,753

)

Change in fair value of mining payable

-

-

(66,547

)

-

Interest income

2,466

8,428

4,845

30,802

Interest expense

-

(12,591

)

(20,984

)

(37,363

)

Total other (expenses) income

(220

)

53,452

(336,312

)

168,216

Loss before income taxes

$

(1,994,417

)

$

(754,407

)

$

(5,213,544

)

$

(2,365,149

)

Income tax expense

-

-

-

-

Net loss

$

(1,994,417

)

$

(754,407

)

$

(5,213,544

)

$

(2,365,149

)

Net loss per share, basic and diluted:

$

(0.06

)

$

(0.12

)

$

(0.28

)

$

(0.37

)

Weighted average shares outstanding, basic and diluted:

31,520,736

6,372,061

18,868,967

6,353,643

Net loss

$

(1,994,417

)

$

(754,407

)

$

(5,213,544

)

$

(2,365,149

)

Other comprehensive income:

Unrealized gain on foreign currency translation

-

-

-

-

Comprehensive loss attributable to Marathon Patent Group, Inc.

$

(1,994,417

)

$

(754,407

)

$

(5,213,544

)

$

(2,365,149

)

MARATHON PATENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

Preferred Stock

Common Stock

Additional Paid-in Capital

Accumulated Deficit

Accumulated Other Comprehensive Loss

Total Stockholders' Equity

Number

Amount

Number

Amount

Balance as of December 31, 2019

-

$

-

8,458,781

$

846

$

109,705,051

$

(105,607,506

)

$

(450,719

)

$

3,647,672

Stock based compensation

-

-

2,745,639

275

1,031,924

-

-

1,032,199

Issuance of common stock, net of offering costs/At-the-market offering

-

-

17,712,635

1,771

28,791,211

-

-

28,792,982

Common stock issued for purchase of mining servers

-

-

350,250

35

171,587

-

-

171,622

Common stock issued for note conversion

-

-

2,023,739

202

1,578,872

-

-

1,579,074

Issue common stock and warrant for cash

-

-

7,666,666

767

6,270,833

-

-

6,271,600

Warrant exercised for cash

-

-

4,722

1

5,312

-

-

5,313

Net loss

-

-

-

-

-

(5,213,544

)

-

(5,213,544

)

Balance as of September 30, 2020

-

$

-

38,962,432

$

3,897

$

147,554,790

$

(110,821,050

)

$

(450,719

)

$

36,286,918

Preferred Stock

Common Stock

Additional Paid-in Capital

Accumulated Deficit

Accumulated Other Comprehensive Income (Loss)

Total Stockholders' Equity

Number

Amount

Number

Amount

Balance as of June 30, 2020

-

$

-

24,526,302

$

2,453

$

118,933,134

$

(108,826,633

)

$

(450,719

)

$

9,658,235

Stock based compensation

-

-

-

-

360,211

-

-

360,211

Issuance of common stock, net of offering costs/At-the-market offering

-

-

6,764,742

676

21,985,300

-

-

21,985,976

Issue common stock and warrant for cash

-

-

7,666,666

767

6,270,833

-

-

6,271,600

Warrant exercised for cash

-

-

4,722

1

5,312

-

-

5,313

Net loss

-

-

-

-

-

(1,994,417

)

-

(1,994,417

)

Balance as of September 30, 2020

-

$

-

38,962,432

$

3,897

$

147,554,790

$

(110,821,050

)

$

(450,719

)

$

36,286,918

MARATHON PATENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)

For the Nine Months Ended

September 30,

2020

2019

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss

$

(5,213,544

)

$

(2,365,149

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation

1,797,959

412,083

Amortization of patents and website

53,382

53,382

Realized gain (loss) on sale of digital currencies

(15,466

)

(13,208

)

Change in fair value of warrant liability

18,651

7,753

Change in fair value of mining payable

66,547

-

Stock based compensation

1,032,199

620,030

Amortization of right-of-use assets

72,332

67,602

Changes in operating assets and liabilities:

Accounts receivables

-

-

Digital currencies

(1,713,832

)

(908,175

)

Lease liability

(70,880

)

(66,707

)

Prepaid expenses and other assets

172,472

154,930

Accounts payable and accrued expenses

351,960

(163,822

)

Net cash used in operating activities

(3,448,220

)

(2,201,281

)

CASH FLOWS FROM INVESTING ACTIVITIES

Sale of digital currencies

1,278,550

918,502

Purchase of property and equipment

(3,133,908

)

(5,224

)

Deposit for purchase of the miners

(13,269,670

)

-

Net cash (used in) provided by investing activities

(15,125,028

)

913,278

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds received on issuance of notes payable

62,500

-

Proceeds from issuance of common stock/At-the-market offering

29,756,736

83,453

Offering costs for the issuance of common stock/At-the-market offering

(963,754

)

(3,636

)

Proceeds from issuance of common stock and warrant, net

6,271,600

-

Proceeds received on exercise of warrants

5,313

-

Net cash provided by financing activities

35,132,395

79,817

Net increase (decrease) in cash and cash equivalents

16,559,147

(1,208,186

)

Cash and cash equivalents — beginning of period

692,963

2,551,171

Cash and cash equivalents — end of period

$

17,252,110

$

1,342,985

Supplemental schedule of non-cash investing and financing activities:

Par value adjustment due to reverse split

$

-

$

1

Common stock issued for purchase of mining servers

$

171,622

$

2,233,773

Mining servers payable

$

-

$

1,852,477

Reduction of share commitment for purchase of mining servers

$

408,625

$

-

Common stock issued for note conversion

$

1,579,074

$

-