LAS VEGAS, May 14, 2020 (GLOBE NEWSWIRE) -- Marathon Patent Group, Inc. (NASDAQ: MARA ) ("Marathon" or "Company"), today announced its operating results for the three months ended March 31, 2020. The Company anticipates filing its Form 10-Q with the Securities and Exchange Commission later today.

Summary of Operating Results for the Quarter Ended March 31, 2020

-- Reported revenues of $592,487 during the three months ended March 31, 2020 as compared to $230,694 during the three months ended March 31, 2019, an increase of 157% over the same period in 2019.

-- Operating loss was approximately $1.1 million (inclusive of non-cash expenses) for the quarter ended March 31, 2020 compared to an operating loss of approximately $1 million (inclusive of non-cash expenses) for the quarter ended March 31, 2019.

-- Per share net loss improved to $(0.12) per basic and diluted share for the quarter ended March 31, 2020 compared to $(0.16) the quarter ended March 31, 2019.

-- Net cash used in operating activities was approximately $1.1 million in the quarter ended March 31, 2020, compared to approximately $0.8 million for the first quarter in 2019.

-- The Company had approximately $0.5 million of cash and cash equivalents as of March 31, 2020. Subsequently, the company raised $5.5mm from our effective ATM, purchased $3mm of new mining equipment and has $2.3mm cash on hand.

Merrick Okamoto, Chief Executive Officer, stated, “While we are pleased to have seen improved financial performance in the quarter on a year over year basis, it is recent initiatives that we believe have positioned us for potential accelerated growth going forward. In the last week, we announced the purchase of 1,360 next generation miners. Our mining production will produce 2.8x the petahash of our previous miners and dramatically lower our breakeven costs.”

Okamoto continued, “The combined purchase is another step supporting the Company's recent strategic initiatives focused on expanding its bitcoin mining operations. Marathon anticipates that the 700 M30S+ miners will be deployed in June of 2020 and the S19 Pro’s in late July. When all 1,360 miners are fully deployed, Marathon estimates its aggregate operating hash rate will be approximately 129 petahash per second ("PH/s").”

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.

CONTACT INFORMATION

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

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

March 31, December 31, 2020 2019 - ------------ - - ------------ - (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 474,546 $ 692,963 Digital currencies 2,892 1,141 Accounts receivable - net of allowance for bad debt of $0 for March 31, 117,811 - 2020 Prepaid expenses and other current assets 908,348 800,024 - ------------ - - ------------ - Total current assets 1,503,597 1,494,128 Other assets: Property and equipment, net of accumulated depreciation and impairment charges of $6,220,792 and $6,157,786 for March 31, 2020 and December 31, 2,835,563 3,754,969 2019, respectively Right-of-use assets 273,173 297,287 Intangible assets, net of accumulated amortization of $154,216 and 1,055,784 1,073,578 $136,422 for March 31, 2020 and December 31, 2019, respectively Total other assets 4,164,520 5,125,834 - ------------ - - ------------ - TOTAL ASSETS $ 5,668,117 $ 6,619,962 - ------------ - - ------------ - LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued expenses $ 1,312,159 $ 1,238,197 Mining servers payable - 513,700 Current portion of lease liability 89,054 87,959 Warrant liability 3,062 12,849 Total current liabilities 1,404,275 1,852,705 Long-term liabilities Convertible notes payable 999,106 999,106 Lease liability 95,018 120,479 Total long-term liabilities 1,094,124 1,119,585 - ------------ - - ------------ - Total liabilities 2,498,399 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 March 31, 2020 and December 31, 2019, - - respectively Common stock, $0.0001 par value; 200,000,000 shares authorized; 9,212,106 and 8,458,781 issued and outstanding at March 31, 2020 and December 31, 922 846 2019, respectively Additional paid-in capital 110,284,952 109,705,051 Accumulated other comprehensive loss (450,719 ) (450,719 ) Accumulated deficit (106,665,437 ) (105,607,506 ) - ------------ - - ------------ - Total stockholders’ equity 3,169,718 3,647,672 - ------------ - - ------------ - TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,668,117 $ 6,619,962 - ------------ - - ------------ -

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

For the Three Months Ended March 31, ------------------------------ 2020 2019 - ---------- - - ---------- - Revenues Cryptocurrency mining revenue $ 592,487 $ 230,694 Total revenues 592,487 230,694 - ---------- - - ---------- - Operating costs and expenses Cost of revenue 1,153,241 508,640 Compensation and related taxes 233,657 486,687 Consulting fees 41,812 20,000 Professional fees 146,642 85,033 General and administrative 108,937 115,243 Total operating expenses 1,684,289 1,215,603 - ---------- - - ---------- - Operating loss (1,091,802 ) (984,909 ) Other income (expenses) Other income (expenses) 106,408 (9,437 ) Foreign exchange loss - (11,873 ) Realized loss on sale of digital currencies (4,222 ) (608 ) Change in fair value of warrant liability 9,787 (37,734 ) Change in fair value of mining payable (66,547 ) - Interest income 1,880 12,016 Interest expense (13,435 ) (12,317 ) - ---------- - - ---------- - Total other income (expenses) 33,871 (59,953 ) Loss before income taxes $ (1,057,931 ) $ (1,044,862 ) - ---------- - - ---------- - Income tax expense - - - ---------- - - ---------- - Net loss $ (1,057,931 ) $ (1,044,862 ) - ---------- - - ---------- - Net loss per share, basic and diluted: $ (0.12 ) $ (0.16 ) - ---------- - - ---------- - Weighted average shares outstanding, basic and diluted: 8,655,525 6,338,418 - ---------- - - ---------- - Net loss $ (1,057,931 ) $ (1,044,862 ) Other comprehensive income: Unrealized gain on foreign currency translation - - Comprehensive loss attributable to Marathon Patent Group, Inc. $ (1,057,931 ) $ (1,044,862 ) - ---------- - - ---------- -

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

Preferred Common Stock Stock Accumulated ----------- ---------------- Additional Accumulated Other Total Paid-in Deficit Comprehensive Stockholders' Number Amou Number Amount Capital Loss Equity nt ------ --- --------- ----- ------------- ---------------- ------------ -------------- Balance as of - $ - 8,458,781 $ 846 $ 109,705,051 $ (105,607,506 ) $ (450,719 ) $ 3,647,672 December 31, 2019 Stock based - - - - 23,238 - - 23,238 compensation Issuance of common stock, net of offering - - 403,075 41 385,076 - - 385,117 costs/At-the-market offering Common stock issued for purchase of - - 350,250 35 171,587 - - 171,622 mining servers Net loss - - - - - (1,057,931 ) - (1,057,931 ) Balance as of March - $ - 9,212,106 $ 922 $ 110,284,952 $ (106,665,437 ) $ (450,719 ) $ 3,169,718 31, 2020 ------ - - --------- - --- - ----------- - ------------ - - -------- - - ---------- -

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

For the Three Months Ended March 31, ------------------------------ 2020 2019 - ---------- - - ---------- - CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (1,057,931 ) $ (1,044,862 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 510,781 137,361 Amortization of patents and website 17,794 17,794 Realized loss on sale of digital currencies 4,222 608 Change in fair value of warrant liability (9,787 ) 37,734 Change in fair value of mining payable 66,547 - Stock based compensation 23,238 282,180 Amortization of right-of-use assets 24,114 21,795 Changes in operating assets and liabilities: Accounts receivables (117,811 ) - Digital currencies (474,676 ) (230,694 ) Lease liability (24,365 ) (21,441 ) Prepaid expenses and other assets (108,324 ) 55,364 Accounts payable and accrued expenses 73,961 (66,975 ) Net cash used in operating activities (1,072,237 ) (811,136 ) - ---------- - - ---------- - CASH FLOWS FROM INVESTING ACTIVITIES Sale of digital currencies 468,703 224,449 Net cash provided by investing activities 468,703 224,449 - ---------- - - ---------- - CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of common stock/At-the-market offering 401,891 - Offering costs for the issuance of common stock/At-the-market offering (16,774 ) - Net cash provided by financing activities 385,117 - - ---------- - - ---------- - Net decrease in cash and cash equivalents (218,417 ) (586,687 ) Cash and cash equivalents — beginning of period 692,963 2,551,171 Cash and cash equivalents — end of period $ 474,546 $ 1,964,484 - ---------- - - ---------- - 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 $ - - ---------- - - ---------- - Reduction of share commitment for purchase of mining servers $ 408,625 - ---------- - --------------

Copyright 2020 GlobeNewswire, Inc.

Recommended for you

Load comments