Marathon Patent Group Inc (NASDAQ:MARA) CFO On Q3 2017 Results

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Frank Knuettel, the CFO of Marathon Patent Group Inc (NASDAQ:MARA), expressed that looking back at their recently reported third quarter results, they booked revenue of around $163,000 for the quarter closed September 30, 2017, versus revenue of around $610,000 for the quarter closed September 30, 2016. They generated the revenue with notably reduced operating expenses and lower cost of revenues, which came at around 4.1 million for the quarter closed September 30, 2017, versus around 10.3 million for the quarter closed September 30, 2016.

The details

More important than the financial performance to the recent quarter, however, Marathon management instituted several key initiatives to reduce outstanding indebtedness and expenses. Included in these measures are the cancellation of the DBD obligation, lower staffing compensation, cancellation of the outstanding convertible debt linked with the debt issuance of October 2014, cancellation of the gas and oil portfolio indebtedness and the purchase of a major amount of company’s accounts payable at a discount.

The CFO of Marathon expressed that cancellation of the DBD dues was the most notable of these initiatives and comprise the cancellation of outstanding debt worth around 16 million and all revenue share dues. In return, the firm-assigned the DBD 3 of its portfolios and get the revenue share payable to company from those three portfolios after certain future cost and revenue thresholds are fulfilled.

As an outcome of the debt reduction initiatives, they were able to eliminate their historical financing debt from company’s balance sheet with the only outstanding debt being the convertible note worth $5.5 million. During the quarter, operating costs have reduced significantly with such expenses being phased in during Q4 2017. Marathon closed Q3 2017 with unrestricted cash amounting 0.1 million as well as restricted cash coming at 3.9 million versus unrestricted cash of 5 million as of the close of December 31, 2016.

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