$MARA Operating Results for the Three Months Ended
Post# of 338542
(Total Views: 91)
Posted On: 11/20/2017 11:46:30 AM
$MARA Operating Results for the Three Months Ended September 30, 2017
Total revenue of $163 thousand and $43 thousand for the three months ended September 30, 2017 and September 30, 2016, respectively.
Operating loss was approximately $3.9 million (including non-cash expenses) for the three months ended September 30, 2017 compared to an operating loss of $10.7 million for the three months ended September 30, 2016.
Our GAAP net loss was $(1.06) per basic and diluted share for the three months ended September 30, 2017, with 6,270,299 (all share numbers reflect the one for four reverse split completed on October 30, 2017) weighted average basic and diluted shares outstanding as of September 30, 2017, compared to a GAAP loss of $(1.67) per weighted average basic and diluted share for the three months ended September 30, 2016, with 3,761,786 weighted average basic and diluted shares outstanding as of September 30, 2016, respectively.
On a per share basis, our Non-GAAP net loss was $(0.23) per basic and diluted share for the three months ended September 30, 2017, compared to a Non-GAAP loss of $(0.86) per basic and diluted share for the three months ended September 30, 2017, respectively.
From a strategic perspective, Marathon entered into a definitive purchase agreement to acquire 100% ownership of Global Bit Ventures Inc. (“GBV”), a digital asset technology company that mines cryptocurrencies. GBV has robust infrastructure in place with significant capability for expansion. The closing of the transaction is subject to obtaining requisite approvals. The Company intends to update investors more specifically on the transaction on November 27th, when we will be conducting an investor update conference call.
Conference Call
Marathon will host an investor update conference call to with Chief Executive Officer Doug Croxall and Chief Financial Officer Frank Knuettel II on Monday November 27, 2017 at 4:30 PM ET/1:30 PM PT. To participate in the conference call, investors from the U.S. and Canada should dial (877) 407-0792 ten minutes prior to the scheduled start time. International calls should dial (201) 689-8263.
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 Monday December 11, 2017 by dialing (844) 512-2921 in the U.S. and Canada and (412) 317-6671 internationally and entering the pin number: 13673885.
MARATHON PATENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
September 30, 2017 December 31, 2016
ASSETS
Current assets:
Cash $ 122,172 $ 4,998,314
Restricted Cash 3,919,718 -
Total cash 4,041,890 4,998,314
Accounts receivable - net of allowance for bad debt of $387,976 and $387,976 for September 30, 2017 and December 31, 2016 123,630 95,069
Note receivable 588,864 225,982
Prepaid expenses and other current assets, net of discounts of $2,659 for September 30, 2017 and $3,724 for December 31, 2016 108,878 202,067
Total current assets 4,863,262 5,521,432
Other assets:
Property and equipment, net of accumulated depreciation of $133,224 and $108,407 for September 30, 2017 and December 31, 2016 9,803 28,329
Intangible assets, net of accumulated amortization of $12,813,915 and $11,323,185 for September 30, 2017 and December 31, 2016 7,590,213 12,314,628
Other non current assets, net of discounts of $797 for December 31, 2016 - 201,203
Goodwill 228,401 222,843
Total other assets 7,828,417 12,767,003
Total Assets $ 12,691,679 $ 18,288,435
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 1,954,836 $ 7,217,078
Clouding IP earn out - current portion 32,637 81,930
Revenue share liability 1,225,000 -
Warrant liability 2,411,750 -
Notes payable, net of discounts of $5,837,363 and $852,404 for September 30, 2017 and December 31, 2016 15,582,156 13,162,007
21,206,379 20,461,015
Long-term liabilities
Notes Payable, net of discount of $57,763 for December 31, 2016 - 4,670,502
Clouding IP earn out 681,175 1,400,082
Revenue share liability - 1,000,000
Other long term liability 37,236 43,978
Total long-term liabilities 718,411 7,114,562
Total liabilities 21,924,790 27,575,577
Stockholders' Deficit:
Preferred stock Series B, $.0001 par value, 50,000,000 shares authorized: 195,501 issued and outstanding at September 30, 2017 and December 31, 2016 78 78
Common stock, $.0001 par value; 200,000,000 shares authorized; 7,776,016 and 4,638,118 at September 30, 2017 and December 31, 2016 3,111 1,856
Additional paid-in capital 61,833,077 49,877,710
Accumulated other comprehensive income (loss) (450,623 ) (1,060,390 )
Accumulated deficit (70,427,472 ) (57,942,548 )
Total Marathon Patent Group stockholders' equity (9,041,829 ) (9,123,294 )
Noncontrolling interests (191,282 ) (163,848 )
Total deficit (9,233,111 ) (9,287,142 )
Total liabilities and stockholders' deficit $ 12,691,679 $ 18,288,435
The accompanying notes are an integral part to these unaudited consolidated condensed financial statements.
MARATHON PATENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
For the Three
Months Ended
30-Sep-17 For the Three
Months Ended
30-Sep-16 For the Nine
Months Ended
30-Sep-17 For the Nine
Months Ended
30-Sep-16
Revenues $ 162,713 $ 43,113 $ 609,650 $ 36,452,551
Expenses
Cost of revenues 64,836 1,094,378 1,544,322 19,202,118
Amortization of patents and website 457,419 2,030,886 1,803,264 6,018,196
Compensation and related taxes 1,871,946 1,252,571 3,718,034 3,406,841
Consulting fees 133,018 257,420 189,819 903,032
Professional fees 616,125 432,496 1,686,955 1,336,201
General and administrative 213,130 183,771 599,416 612,284
Goodwill impairment - - - 83,000
Patent impairment 723,218 5,531,383 723,218 6,525,273
Total operating expenses 4,079,692 10,782,905 10,265,028 38,086,945
Operating loss from continuing operations (3,916,979 ) (10,739,792 ) (9,655,378 ) (1,634,394 )
Other income (expenses)
Other income (expense) 2,252,886 (37,116 ) 3,151,418 (68,647 )
Foreign exchange (loss) (480,240 ) (175,850 ) (463,191 ) (238,073 )
Loss on debt extinguishment (283,237 ) - (283,237 ) -
Loss on sale of company (1,519,875 ) - (1,519,875 ) -
Change in fair value adjustment of Clouding IP earn out 754,321 1,954,378 768,200 2,122,208
Warrant income (expense) (1,909,879 ) - (1,914,786 ) -
Interest income 931 931 2,793 2,793
Interest expense (1,283,223 ) (649,065 ) (2,416,722 ) (2,500,321 )
Total other income (expenses) (2,468,316 ) 1,093,278 (2,675,400 ) (682,040 )
Loss from continuing operations before benefit for income taxes (6,385,295 ) (9,646,514 ) (12,330,778 ) (2,316,434 )
Income tax benefit (expense) (12,191 ) 3,347,909 (29,433 ) 26,974
Net Income (loss) (6,397,486 ) (6,298,605 ) (12,360,211 ) (2,289,460 )
Net income (loss) attributable to Noncontrolling interests (280,000 ) 24,195 (124,714 ) 27,918
Net (loss) attributable to common shareholders $ (6,677,486 ) $ (6,274,410 ) $ (12,484,925 ) $ (2,261,542 )
Income (loss) per common share:
Basic $ (1.06 ) $ (1.67 ) $ (2.24 ) $ (0.61 )
Diluted
WEIGHTED AVERAGE
COMMON
SHARES OUTSTANDING:
Basic 6,270,299 3,761,786 5,564,465 3,736,213
Net loss $ (6,677,486 ) $ (6,274,410 ) $ (12,484,925 ) $ (2,261,542 )
Other comprehensive loss:
Unrealized gain on foreign currency translation 482,622 209,159 609,768 306,411
Comprehensive loss (6,194,864 ) (6,065,251 ) (11,875,157 ) (1,955,131 )
Less: comprehensive income (loss) related to non-controlling interest (280,000 ) 24,195 (124,714 ) 27,918
Comprehensive loss attributable to Marathon Patent Group, Inc. $ (6,474,864 ) $ (6,041,056 ) $ (11,999,871 ) $ (1,927,213 )
The accompanying notes are an integral part to these unaudited consolidated condensed financial statements.
MARATHON PATENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
For The
Nine Months
Ended
September 30,
2017 For The
Nine Months
Ended
September 30,
2016
Cash flows from operating activities:
Net loss $ (12,484,924 ) $ (2,261,542 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation 1,248 3,780
Amortization of patents and website 1,803,264 6,018,196
Deferred tax asset - 531,757
Deferred tax liability - (638,268 )
Loss on sale of companies - -
Warrant liability - -
Impairment of intangible assets 704,678 6,525,273
Impairment of goodwill - 83,000
Stock based compensation 1,523,187 1,541,615
Stock issued for services - 136,000
Non-cash interest, discount, and financing costs (4,397,381 ) 952,231
Change in fair value of Clouding earnout (768,200 ) (2,122,198 )
Allowance for doubtful accounts - 12,226
Beneficial conversion feature 4,017,729 -
Noncontrolling interest (27,435 ) (27,918 )
Other non-cash adjustments 182,024 96,996
Changes in operating assets and liabilities
Accounts receivable (28,561 ) 43,763
Bonds posted with courts - 883,695
Prepaid expenses and other assets (269,693 ) (6,652 )
Other non current assets 201,203 -
Accounts payable and accrued expenses (5,262,242 ) (557,832 )
Net cash and restricted cash provided by (used in) operating activities (14,805,103 ) 11,214,122
Cash flows from investing activities:
Acquisition of patents - (3,552,656 )
Disposal of patents 2,771,757 -
Purchase of property, equipment, and other intangible assets (6,291 ) (8,387 )
Net cash provided by (used in) investing activities 2,765,466 (3,561,043 )
Cash flows from financing activities:
Payment on note payable in connection with the acquisition of Medtech and Orthophoenix - (2,953,779 )
Payment on Fortress note payable (63,286 ) (5,379,105 )
Payment on 3D Nano license note payable (100,000 ) -
Cash received upon issuance of equity (net of issuance costs) 5,158,906 -
Issuance of warrants 2,549,084 -
Issuance of convertible notes payable 5,500,000
Medtronic note payable 600,000 -
Payment of Medtronic note payable (600,000 )
Payments on Seimens notes payable (1,750,000 ) -
Payments on notes payable to vendors (125,000 ) -
Payments on notes payable, net (103,000 ) (578,804 )
Net cash provided (used in) by financing activities 11,066,704 (8,911,688 )
Effect of exchange rate changes on cash 16,509 (1,592 )
Net decrease in cash (956,424 ) (1,260,201 )
Cash at beginning of period 4,998,314 2,555,151
Cash and restricted cash at end of period $ 4,041,890 $ 1,294,950
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for:
Interest expense $ 368,923 $ 1,187,074
Taxes paid $ 29,433 $ 27,682
Cash invested in 3D Nano $ - $ 115,000
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Revenue share liability incurred in conjunction with note payable $ 225,000 $ -
Warrant issued in conjunction with common stock issuance $ 257,957 $ -
Note payable issued in conjunction with the acquisition of Munitech patents $ - $ 1,755,635
Note payable issued in conjunction with the acquisition of GE patent - 1,000,000
Note payable issued in conjunction with the acquisition of 3D Nano License - 200,000
The accompanying notes are an integral part to these unaudited consolidated condensed financial statements.
Non-GAAP Reconciliation Non-GAAP Reconciliation
For the Quarter
Ended
September 30, 2017 For the Quarter
Ended
September 30, 2016 For the Nine Months
Ended
September 30, 2017 For the Nine Months
Ended
September 30, 2016
Net income (loss) attributable to Common Shareholders $ (6,677,486 ) $ (6,274,410 ) $ (12,484,925 ) $ (2,261,542 )
Non-GAAP
Amortization of intangible assets & depreciation 457,719 2,030,886 1,804,512 6,018,196
Equity-based compensation 1,371,480 478,819 1,554,835 1,677,616
Impairment of intangible assets 723,218 5,531,383 723,218 6,608,273
Change in the fair value of the clouding IP liability (754,320 ) (1,954,378 ) (768,199 ) (2,122,208 )
Loss on debt extinguishment 283,237 - 283,237 -
Loss on sale of companies 1,519,875 - 1,519,875 -
Warrant (Income) Expense, net 1,909,879 - 1,914,786 -
Non-cash Other (Income) expense, net (1,323,407 ) - (2,221,939 ) -
Non-cash interest expense 1,043,012 288,049 1,489,678 952,231
Deferred tax benefit - (3,347,909 ) - (26,974 )
Other (1,486 ) 12,468 (3,072 ) 28,488
Non-GAAP earnings (loss) $ (1,448,278 ) $ (3,235,092 ) $ (6,187,993 ) $ 10,874,080
The following table sets forth the computation of basic and diluted loss per share on a Non-GAAP basis:
Non-GAAP Reconciliation Non-GAAP Reconciliation
For the Quarter
Ended
September 30, 2017 For the Quarter
Ended
September 30, 2016 For the Nine Months
Ended
September 30, 2017 For the Nine Months
Ended
September 30, 2016
Non-GAAP net income (loss) $ (1,448,278 ) $ (3,235,092 ) $ (6,187,993 ) $ 10,874,080
Denominator
Weighted average common shares - Basic 6,270,299 3,761,785 5,564,464 3,736,213
Weighted average common shares - Diluted 6,270,299 3,761,785 5,564,464 3,996,067
Non-GAAP earnings (loss) per common share:
Non-GAAP earnings (loss) - Basic $ (0.23 ) $ (0.86 ) $ (1.11 ) $ 2.91
Non-GAAP earnings (loss) - Diluted NA NA NA 2.72
https://finance.yahoo.com/news/marathon-paten...00106.html
Total revenue of $163 thousand and $43 thousand for the three months ended September 30, 2017 and September 30, 2016, respectively.
Operating loss was approximately $3.9 million (including non-cash expenses) for the three months ended September 30, 2017 compared to an operating loss of $10.7 million for the three months ended September 30, 2016.
Our GAAP net loss was $(1.06) per basic and diluted share for the three months ended September 30, 2017, with 6,270,299 (all share numbers reflect the one for four reverse split completed on October 30, 2017) weighted average basic and diluted shares outstanding as of September 30, 2017, compared to a GAAP loss of $(1.67) per weighted average basic and diluted share for the three months ended September 30, 2016, with 3,761,786 weighted average basic and diluted shares outstanding as of September 30, 2016, respectively.
On a per share basis, our Non-GAAP net loss was $(0.23) per basic and diluted share for the three months ended September 30, 2017, compared to a Non-GAAP loss of $(0.86) per basic and diluted share for the three months ended September 30, 2017, respectively.
From a strategic perspective, Marathon entered into a definitive purchase agreement to acquire 100% ownership of Global Bit Ventures Inc. (“GBV”), a digital asset technology company that mines cryptocurrencies. GBV has robust infrastructure in place with significant capability for expansion. The closing of the transaction is subject to obtaining requisite approvals. The Company intends to update investors more specifically on the transaction on November 27th, when we will be conducting an investor update conference call.
Conference Call
Marathon will host an investor update conference call to with Chief Executive Officer Doug Croxall and Chief Financial Officer Frank Knuettel II on Monday November 27, 2017 at 4:30 PM ET/1:30 PM PT. To participate in the conference call, investors from the U.S. and Canada should dial (877) 407-0792 ten minutes prior to the scheduled start time. International calls should dial (201) 689-8263.
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 Monday December 11, 2017 by dialing (844) 512-2921 in the U.S. and Canada and (412) 317-6671 internationally and entering the pin number: 13673885.
MARATHON PATENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
September 30, 2017 December 31, 2016
ASSETS
Current assets:
Cash $ 122,172 $ 4,998,314
Restricted Cash 3,919,718 -
Total cash 4,041,890 4,998,314
Accounts receivable - net of allowance for bad debt of $387,976 and $387,976 for September 30, 2017 and December 31, 2016 123,630 95,069
Note receivable 588,864 225,982
Prepaid expenses and other current assets, net of discounts of $2,659 for September 30, 2017 and $3,724 for December 31, 2016 108,878 202,067
Total current assets 4,863,262 5,521,432
Other assets:
Property and equipment, net of accumulated depreciation of $133,224 and $108,407 for September 30, 2017 and December 31, 2016 9,803 28,329
Intangible assets, net of accumulated amortization of $12,813,915 and $11,323,185 for September 30, 2017 and December 31, 2016 7,590,213 12,314,628
Other non current assets, net of discounts of $797 for December 31, 2016 - 201,203
Goodwill 228,401 222,843
Total other assets 7,828,417 12,767,003
Total Assets $ 12,691,679 $ 18,288,435
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 1,954,836 $ 7,217,078
Clouding IP earn out - current portion 32,637 81,930
Revenue share liability 1,225,000 -
Warrant liability 2,411,750 -
Notes payable, net of discounts of $5,837,363 and $852,404 for September 30, 2017 and December 31, 2016 15,582,156 13,162,007
21,206,379 20,461,015
Long-term liabilities
Notes Payable, net of discount of $57,763 for December 31, 2016 - 4,670,502
Clouding IP earn out 681,175 1,400,082
Revenue share liability - 1,000,000
Other long term liability 37,236 43,978
Total long-term liabilities 718,411 7,114,562
Total liabilities 21,924,790 27,575,577
Stockholders' Deficit:
Preferred stock Series B, $.0001 par value, 50,000,000 shares authorized: 195,501 issued and outstanding at September 30, 2017 and December 31, 2016 78 78
Common stock, $.0001 par value; 200,000,000 shares authorized; 7,776,016 and 4,638,118 at September 30, 2017 and December 31, 2016 3,111 1,856
Additional paid-in capital 61,833,077 49,877,710
Accumulated other comprehensive income (loss) (450,623 ) (1,060,390 )
Accumulated deficit (70,427,472 ) (57,942,548 )
Total Marathon Patent Group stockholders' equity (9,041,829 ) (9,123,294 )
Noncontrolling interests (191,282 ) (163,848 )
Total deficit (9,233,111 ) (9,287,142 )
Total liabilities and stockholders' deficit $ 12,691,679 $ 18,288,435
The accompanying notes are an integral part to these unaudited consolidated condensed financial statements.
MARATHON PATENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
For the Three
Months Ended
30-Sep-17 For the Three
Months Ended
30-Sep-16 For the Nine
Months Ended
30-Sep-17 For the Nine
Months Ended
30-Sep-16
Revenues $ 162,713 $ 43,113 $ 609,650 $ 36,452,551
Expenses
Cost of revenues 64,836 1,094,378 1,544,322 19,202,118
Amortization of patents and website 457,419 2,030,886 1,803,264 6,018,196
Compensation and related taxes 1,871,946 1,252,571 3,718,034 3,406,841
Consulting fees 133,018 257,420 189,819 903,032
Professional fees 616,125 432,496 1,686,955 1,336,201
General and administrative 213,130 183,771 599,416 612,284
Goodwill impairment - - - 83,000
Patent impairment 723,218 5,531,383 723,218 6,525,273
Total operating expenses 4,079,692 10,782,905 10,265,028 38,086,945
Operating loss from continuing operations (3,916,979 ) (10,739,792 ) (9,655,378 ) (1,634,394 )
Other income (expenses)
Other income (expense) 2,252,886 (37,116 ) 3,151,418 (68,647 )
Foreign exchange (loss) (480,240 ) (175,850 ) (463,191 ) (238,073 )
Loss on debt extinguishment (283,237 ) - (283,237 ) -
Loss on sale of company (1,519,875 ) - (1,519,875 ) -
Change in fair value adjustment of Clouding IP earn out 754,321 1,954,378 768,200 2,122,208
Warrant income (expense) (1,909,879 ) - (1,914,786 ) -
Interest income 931 931 2,793 2,793
Interest expense (1,283,223 ) (649,065 ) (2,416,722 ) (2,500,321 )
Total other income (expenses) (2,468,316 ) 1,093,278 (2,675,400 ) (682,040 )
Loss from continuing operations before benefit for income taxes (6,385,295 ) (9,646,514 ) (12,330,778 ) (2,316,434 )
Income tax benefit (expense) (12,191 ) 3,347,909 (29,433 ) 26,974
Net Income (loss) (6,397,486 ) (6,298,605 ) (12,360,211 ) (2,289,460 )
Net income (loss) attributable to Noncontrolling interests (280,000 ) 24,195 (124,714 ) 27,918
Net (loss) attributable to common shareholders $ (6,677,486 ) $ (6,274,410 ) $ (12,484,925 ) $ (2,261,542 )
Income (loss) per common share:
Basic $ (1.06 ) $ (1.67 ) $ (2.24 ) $ (0.61 )
Diluted
WEIGHTED AVERAGE
COMMON
SHARES OUTSTANDING:
Basic 6,270,299 3,761,786 5,564,465 3,736,213
Net loss $ (6,677,486 ) $ (6,274,410 ) $ (12,484,925 ) $ (2,261,542 )
Other comprehensive loss:
Unrealized gain on foreign currency translation 482,622 209,159 609,768 306,411
Comprehensive loss (6,194,864 ) (6,065,251 ) (11,875,157 ) (1,955,131 )
Less: comprehensive income (loss) related to non-controlling interest (280,000 ) 24,195 (124,714 ) 27,918
Comprehensive loss attributable to Marathon Patent Group, Inc. $ (6,474,864 ) $ (6,041,056 ) $ (11,999,871 ) $ (1,927,213 )
The accompanying notes are an integral part to these unaudited consolidated condensed financial statements.
MARATHON PATENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
For The
Nine Months
Ended
September 30,
2017 For The
Nine Months
Ended
September 30,
2016
Cash flows from operating activities:
Net loss $ (12,484,924 ) $ (2,261,542 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation 1,248 3,780
Amortization of patents and website 1,803,264 6,018,196
Deferred tax asset - 531,757
Deferred tax liability - (638,268 )
Loss on sale of companies - -
Warrant liability - -
Impairment of intangible assets 704,678 6,525,273
Impairment of goodwill - 83,000
Stock based compensation 1,523,187 1,541,615
Stock issued for services - 136,000
Non-cash interest, discount, and financing costs (4,397,381 ) 952,231
Change in fair value of Clouding earnout (768,200 ) (2,122,198 )
Allowance for doubtful accounts - 12,226
Beneficial conversion feature 4,017,729 -
Noncontrolling interest (27,435 ) (27,918 )
Other non-cash adjustments 182,024 96,996
Changes in operating assets and liabilities
Accounts receivable (28,561 ) 43,763
Bonds posted with courts - 883,695
Prepaid expenses and other assets (269,693 ) (6,652 )
Other non current assets 201,203 -
Accounts payable and accrued expenses (5,262,242 ) (557,832 )
Net cash and restricted cash provided by (used in) operating activities (14,805,103 ) 11,214,122
Cash flows from investing activities:
Acquisition of patents - (3,552,656 )
Disposal of patents 2,771,757 -
Purchase of property, equipment, and other intangible assets (6,291 ) (8,387 )
Net cash provided by (used in) investing activities 2,765,466 (3,561,043 )
Cash flows from financing activities:
Payment on note payable in connection with the acquisition of Medtech and Orthophoenix - (2,953,779 )
Payment on Fortress note payable (63,286 ) (5,379,105 )
Payment on 3D Nano license note payable (100,000 ) -
Cash received upon issuance of equity (net of issuance costs) 5,158,906 -
Issuance of warrants 2,549,084 -
Issuance of convertible notes payable 5,500,000
Medtronic note payable 600,000 -
Payment of Medtronic note payable (600,000 )
Payments on Seimens notes payable (1,750,000 ) -
Payments on notes payable to vendors (125,000 ) -
Payments on notes payable, net (103,000 ) (578,804 )
Net cash provided (used in) by financing activities 11,066,704 (8,911,688 )
Effect of exchange rate changes on cash 16,509 (1,592 )
Net decrease in cash (956,424 ) (1,260,201 )
Cash at beginning of period 4,998,314 2,555,151
Cash and restricted cash at end of period $ 4,041,890 $ 1,294,950
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for:
Interest expense $ 368,923 $ 1,187,074
Taxes paid $ 29,433 $ 27,682
Cash invested in 3D Nano $ - $ 115,000
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Revenue share liability incurred in conjunction with note payable $ 225,000 $ -
Warrant issued in conjunction with common stock issuance $ 257,957 $ -
Note payable issued in conjunction with the acquisition of Munitech patents $ - $ 1,755,635
Note payable issued in conjunction with the acquisition of GE patent - 1,000,000
Note payable issued in conjunction with the acquisition of 3D Nano License - 200,000
The accompanying notes are an integral part to these unaudited consolidated condensed financial statements.
Non-GAAP Reconciliation Non-GAAP Reconciliation
For the Quarter
Ended
September 30, 2017 For the Quarter
Ended
September 30, 2016 For the Nine Months
Ended
September 30, 2017 For the Nine Months
Ended
September 30, 2016
Net income (loss) attributable to Common Shareholders $ (6,677,486 ) $ (6,274,410 ) $ (12,484,925 ) $ (2,261,542 )
Non-GAAP
Amortization of intangible assets & depreciation 457,719 2,030,886 1,804,512 6,018,196
Equity-based compensation 1,371,480 478,819 1,554,835 1,677,616
Impairment of intangible assets 723,218 5,531,383 723,218 6,608,273
Change in the fair value of the clouding IP liability (754,320 ) (1,954,378 ) (768,199 ) (2,122,208 )
Loss on debt extinguishment 283,237 - 283,237 -
Loss on sale of companies 1,519,875 - 1,519,875 -
Warrant (Income) Expense, net 1,909,879 - 1,914,786 -
Non-cash Other (Income) expense, net (1,323,407 ) - (2,221,939 ) -
Non-cash interest expense 1,043,012 288,049 1,489,678 952,231
Deferred tax benefit - (3,347,909 ) - (26,974 )
Other (1,486 ) 12,468 (3,072 ) 28,488
Non-GAAP earnings (loss) $ (1,448,278 ) $ (3,235,092 ) $ (6,187,993 ) $ 10,874,080
The following table sets forth the computation of basic and diluted loss per share on a Non-GAAP basis:
Non-GAAP Reconciliation Non-GAAP Reconciliation
For the Quarter
Ended
September 30, 2017 For the Quarter
Ended
September 30, 2016 For the Nine Months
Ended
September 30, 2017 For the Nine Months
Ended
September 30, 2016
Non-GAAP net income (loss) $ (1,448,278 ) $ (3,235,092 ) $ (6,187,993 ) $ 10,874,080
Denominator
Weighted average common shares - Basic 6,270,299 3,761,785 5,564,464 3,736,213
Weighted average common shares - Diluted 6,270,299 3,761,785 5,564,464 3,996,067
Non-GAAP earnings (loss) per common share:
Non-GAAP earnings (loss) - Basic $ (0.23 ) $ (0.86 ) $ (1.11 ) $ 2.91
Non-GAAP earnings (loss) - Diluted NA NA NA 2.72
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