Annual report pursuant to section 13 and 15(d)

Consolidated Statements of Cash Flows

Consolidated Statements of Cash Flows (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Cash flows from operating activities:    
Net loss attributable to Marathon Patent Group, Inc. $ (3,450,335) $ (6,927,812)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 3,360   
Amortization of patents 1,038,505 8,773
Amortization of prepaid expense in connection with the issuance of common stock issued for prepaid services 269,086   
Stock based compensation on warrants 117,796 2,723,162
Stock based compensation on options granted 1,122,412 1,514,938
Stock based compensation on common stock issuances 609,980   
Common stock issued for services 59,620 198,287
Non-controlling interest    (10,496)
Non-cash revenue (1,700,000)   
Non-cash loss -securities available for sale 6,250   
Non-cash other (income) loss    (125,000)
Gain on sale of assets- securities available for sale (168,216)   
Realized loss - securities available for sale 38,819 112,500
Impairment of mineral rights    1,256,000
Impairment of assets of discontinued operations    30,248
Changes in operating assets and liabilities    
Accounts receivable 270,000   
Assets of discontinued operations - current portion 82,145 (62,145)
Prepaid expenses 29,571 (36,933)
Assets of discontinued operations - long term portion    3,915
Increase in other comprehensive income (6,250)   
Accounts payable and accrued expenses 697,787 53,159
Net cash used in operating activities (1,519,470) (1,261,404)
Cash flows from investing activities:    
Acquisition of mineral rights    (325,000)
Acquisition of patents (3,150,000) (500,000)
Note receivable - related party    (147,708)
Collection on note receivable - related party    147,708
Purchase of property and equipment (17,000)   
Proceeds received from the sale of marketable securities 129,397   
Sale of real estate property (discontinued operations) 1,052,320 576,477
Acquisition of real estate property    (1,366,627)
Acquisition of CyberFone Systems, LLC (cash portion) (1,000,000)   
Capitalized cost related to improvements of real estate property (discontinued operations) (16,750) (245,420)
Net cash used in investing activities (3,002,033) (1,860,570)
Cash flows from financing activities:    
Proceeds from the issuance of a note in connection with acquisition of patents 500,000   
Payment on note payable    (930,000)
Payment on note payable - related party    (152,974)
Payment on note payable in connection with the acquisition of patents (500,000)   
Payment in connection with the cancellation of stock and rescission agreement    (132,000)
Proceeds from disgorgement of former officer short swing profits   50,000
Proceeds from sale of common stock, net of issuance costs 5,777,596 6,511,965
Net cash provided by financing activities 5,777,596 5,346,991
Net increase in cash 1,256,093 2,225,017
Cash at beginning of period 2,354,169 129,152
Cash at end of period 3,610,262 2,354,169
Interest 1,075 153
Income taxes      
Issuance of common stock for advances payable    100,000
Assumption of prepaid assets upon exercise of option agreement    43,157
Assumption of accounts payable upon exercise of option agreement    30,664
Issuance of a note payable in connection with an option agreement    930,000
Issuance of common stock in connection with an option agreement    1,000
Common stock issued for acquisition of patents 718,500 925
Common stock issued in connection with the acquisition of Cyberfone Systems, LLC 2,280,000  
Common stock issued for prepaid services 441,247  
Acquisition of patents in connection with a non-cash settlement $ 1,700,000