Marathon Digital Holdings Quarterly report pursuant to sections 13 or 15(d)

Quarterly report pursuant to sections 13 or 15(d)

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2014

During June 2012, the Company decided to discontinue its exploration and potential development of uranium and vanadium minerals business and prior periods have been restated in the Company’s consolidated financial statements and related footnotes to conform to this presentation. Additionally, in November 2012, the Company decided to discontinue its real estate business and intends to sell and dispose its remaining real estate holdings during fiscal 2013. The Company is now engaged in the acquisition, development and monetization of intellectual property through both the prosecution and licensing of its own patent portfolio, the acquisition of additional intellectual property or partnering with others to defend and enforce their patent rights.

The remaining liabilities of discontinued operations are presented in the balance sheet under the caption “Liabilities of discontinued operation" and relates to the discontinued operations of the uranium and vanadium minerals business and real estate business. The carrying amounts of the major classes of the assets and liabilities are summarized as follows:

	March 31, 2014		December 31, 2013
Assets:
Assets of discontinued operations	$	-	$	-

Liabilities:
Accounts payables and accrued expenses	$	30,664	$	30,664
Liabilities of discontinued operations	$	30,664	$	30,664

The following table indicates selected financial data of the Company’s discontinued operations of its uranium and vanadium minerals business and real estate business.

	For the Three Months Ended March 31, 2014		For the Three Months Ended March 31, 2013
Revenues – real estate	$	-	$	986,951
Cost of sales- real estate		-		(817,483	)
Gross profit		-		169,468
Operating and other non-operating expenses		-		(60,688	)

Income from discontinued operations, net of tax	$	-	$	108,780