Replies to post #4475 on Marathon Digital Holdings Inc (MARA)

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COMPANY POSITIONED FOR GROWTH IN 2015

LOS ANGELES, CA -- (Marketwired) -- 03/26/15 -- Marathon Patent Group, Inc. (NASDAQ: MARA) ("Marathon"), a patent licensing company, announced today its 2014 year-end financial results. Highlights included:

2014 revenues of $21.4 million, up 526% from $3.4 million from the prior year.
Achieved 2014 Non-GAAP net income of $4.2 million, or $0.36 per common share, compared to a 2013 net loss of $(300,000), or $(0.03) per share.
Cash and cash equivalents of $5.1 million as of December 31, 2014, compared to $3.6 million as of December 31, 2013.
Acquired nine patent portfolios in active enforcement consisting of 260 patents during the year bringing total to 378.
Currently have 19 portfolios covering 14 distinct technology areas, 16 in active licensing campaigns compared to four at year-end 2013.
Twelve portfolios have generated revenue to date, up from three portfolios through the end of 2013.
Six portfolios have generated a net positive return in excess of their cost to acquire and enforce the portfolio.
Added seasoned IPNav veterans Rick Sanchez and Umesh Jani to the Marathon team.
Launched Opus Analytics patent analysis platform.
Commenting on the Company's 2014 financial results, Doug Croxall, Founder & Chief Executive Officer of Marathon, stated, "Marathon saw significant revenue growth in 2014. Revenues of $21.4 million were up 526% year-over-year. This increase in our top-line can be attributed to strong execution of our patent licensing campaigns and an increase in the number of patents and patent portfolios acquired during 2014."

"Since the beginning of the 2015, we have already had three Markman hearings covering 31 defendants. Throughout the remainder of 2015, our subsidiaries have an additional seven Markman hearings covering 25 defendants, along with nine trials covering 18 defendants. We believe the current Markman and trial schedule for 2015 has the potential to trigger significant revenue events," Mr. Croxall concluded.

2014 Year-End Results

Revenue increased by approximately $18 million, or 526%, to $21.4 million for the year ended December 31, 2014, compared to revenue of $3.4 million for the year ended December 31, 2013. The increase in revenues in 2014 versus 2013 resulted from existing patent portfolios reaching more advanced stages of enforcement as well as newly acquired portfolios already in an enforcement campaign.

For the year ended December 31, 2014, five subsidiaries of the Company generated approximately 88% of the Company's revenue whereas a single subsidiary of the Company generated approximately 62% of the revenue for the year ended December 31, 2013.

Direct costs of revenue for the years ended December 31, 2014 and December 31, 2013 amounted to $11,787,445 and $957,040, respectively. For the year ended December 31, 2014, this represented an increase of $10,992,905, or 1,132%. Direct costs of revenue include contingent legal fees, non-contingent legal fees, costs associated with patent enforcement and licensing advisors and in some cases, contingent payments to sellers of patents we have acquired.

We incurred other operating expenses of $15,823,752 and $6,136,784 for the years ended December 31, 2014 and December 31, 2013. This represented an increase of $9,686,968, or 158%, in 2014 versus 2013. These expenses primarily consisted of amortization of patents, general expenses, compensation to our officers, directors and employees, professional fees and consulting incurred in connection with the day-to-day operation of our business. Operating expenses for the years ended December 31, 2014 and December 31, 2013 include non-cash operating expenses totaling $10,996,155 and $3,157,778, respectively.

Amortization expenses were $5,528,280 and $1,038,505 for the years ended December 31, 2014 and December 31, 2013, respectively, an increase of $4,489,775 or 432%. The increase results from the significant number of patents and patent portfolios we added in 2014, during which the Company acquired ownership of or contractual rights to nine patent portfolios. When the Company acquires patents and patent rights, the Company capitalizes those assets and amortizes the costs over the remaining useful lives of the assets. All patent amortization expenses are non-cash expenses.

For the year ended December 31, 2014, net income per common share on a non-GAAP basis was $0.36 per common share versus a loss of $(0.03) per common share for the year ended December 31, 2013. The improvement in the non-GAAP earnings per common share can be attributed to a 526% growth in patent licensing revenue in 2014 versus 2013. Excluding direct costs of revenue, other cash operating expenses rose 63% from $2,979,006 to $4,857,597.

For the years ended December 31, 2014 and December 31, 2013, other general and administrative expenses were essentially flat, increasing $1,137, or 0%, from $545,475 from $544,338, respectively. General and administrative expenses reflect the other non-categorized operating costs of the Company and include expenses related to being a public company, rent, insurance, technology and other expenses incurred to support the operations of the Company. For the year ended December 31, 2014 versus 2013, the negligible increase in other general and administrative expenses, in conjunction with costs increases for the other non-direct operating expenses less than the growth in revenues, exemplifies the operating leverage the Company enjoys in its business.

Acquisition of Patents

In 2014 Marathon through its wholly-owned operating subsidiaries acquired the following portfolios:

Dynamic Advances, LLC (4 patents)
IP Liquidity Ventures, LLC (6 Patents)
Sarif Biomedical, LLC (5 Patents)
Selene Communication Technologies, LLC (3 Patents)
Clouding Corp. (70 Patents)
TLI Communications (6 Patents)
MedTech GmbH (4 Patents)
OrthoPhoenix (158 Patents)
TLIF (4 Patents)
Investor Conference Call

Marathon will host a corresponding conference call to discuss the results with Chief Executive Officer Doug Croxall and Chief Financial Officer Frank Knuettel II today, Thursday March 26th, at 4:30 PM ET/1:30 PM PT. To participate in the conference call, investors from the U.S. and Canada should dial [phone] ten minutes prior to the scheduled start time. International calls should dial [phone].

In addition, the call will be broadcast live over the Internet and can be accessed through the Investor Relations section of the Company's website at www.marathonpg.com. The broadcast will be archived online upon completion of the conference call. A telephonic replay of the conference call will also be available until 11:59 p.m. ET on Thursday, April 9, 2015 by dialing [phone] in the U.S. and Canada and [phone] internationally and entering the pin number: 13604574.