ALEXANDRIA, VA--(Marketwired - Aug 15, 2013) - Marathon Patent Group, Inc. (OTCBB: MARAD) ("Marathon"), a patent licensing company, announced today its financial results for the second quarter ended June 30, 2013 ("Q2 2013").
For Q2, 2013, the Company reported gross revenue of $1,524,979, as a result of three patent licensing and settlement agreements. Q2 2013 marks the first quarter the Company has reported significant licensing and settlement revenue. Included in the gross revenue amount is the value of certain patents received in settlement from a defendant.
Gross profit margin was approximately 50% during the quarter. Cost of revenues mainly consists of expenses incurred in connection with the Company's patent enforcement activities, such as legal fees, consulting costs, patent maintenance, royalty fees for acquired patents as well as the amortization of acquired patents.
As of June 30, 2013 the Company reported cash and cash equivalents of approximately $6.4 million.
Commenting on the announcement, Doug Croxall, Founder & CEO of Marathon Patent Group, stated, "Q2 2103 was Marathon's first full quarter of patent enforcement activity. We launched our first patent licensing campaign in March 2013 and we are pleased to have already generated over $1.5 million in settlements. During the second quarter, we launched two new licensing campaigns, Sampo and Relay IP. Since the start of the third quarter both of those licensing campaigns have produced revenue in the form of settlement and license agreements. The speed in which we have begun to monetize our patents speaks directly to both the quality of patents and our effectiveness of enforcement."
Mr. Croxall continued, "We have built a robust, highly scalable IP monetization platform that leverages our ability to manage multiple licensing campaigns while actively pursuing the acquisition of other patent portfolios. We have over $6 million in cash and no debt; this gives us a tremendous opportunity to continue to expand our portfolio while we work to monetize our existing portfolios via licensing campaigns."
Recent Company Highlights:
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In June, the Company completed a $6 Million financing, led by IPNav Capital, founded by Erich Spangenberg.
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In June, the Company's wholly-owned subsidiary, Relay IP, Inc., filed a patent infringement lawsuit in the United States District Court for the District of Delaware against 10 named defendants, including CBOE Holdings, Inc., The Nasdaq OMX Group, Inc., ActiveTick LLC, BATS Trading Inc., Lek Securities Corporation, Direct Edge ECN LLC and others.
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In June, July and August, the Company's wholly owned subsidiary, Sampo IP, LLC, entered into three separate license and settlement agreements with a leading technology companies. Marathon's Sampo IP, LLC subsidiary initiated its licensing campaign in March 2013.
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In July, the Company's wholly-owned subsidiary, CyberFone Systems, LLC, entered into two separate license and settlement agreements -- one with one of the largest mobile phone and telecommunications equipment manufacturers in the world; and, one with one of the largest payment terminal companies in the United States.
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In July, the Company's wholly-owned subsidiary, Relay IP, Inc., entered into a settlement and license agreement with a leading technology company. This first agreement for the Relay IP patent occurred within three months of the commencement of Relay IP's licensing campaign.
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In August, the Company's wholly-owned subsidiary, Relay IP, Inc., filed a patent infringement lawsuit against Cablevision Systems Corp.