Marathon Digital Holdings Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Stockholders' Equity (Deficit) (Tables)

Stockholders' Equity (Deficit) (Tables)

12 Months Ended

Dec. 31, 2017

Summary of the Company's Outstanding Stock Warrants and Changes During the Period

A summary of the status of the Company’s outstanding stock warrants and changes during the period then ended is as follows:

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Life
Balance at December 31, 2015		505,327		$	17.09		0.87
Granted		43,525		$	6.92		4.94
Cancelled		(426,499	)	$	12.88		—
Forfeited		—			—		—
Exercised		(5,834	)	$	8.00		—
Balance at December 31, 2016		116,519		$	15.18		3.25
Granted		7,941,374		$	1.70		5.02
Cancelled		(37,177	)	$	15.60		—
Forfeited		—			—		—
Exercised		(7,246,750	)	$	1.38		—
Balance at December 31, 2017		773,966		$	5.99		4.12

Warrants exercisable at December 31, 2017		773,966
Weighted average fair value of warrants granted during the period				$	1.70

Summary of Stock Options and Changes During the Period

A summary of the stock options as of December 31, 2017 and changes during the period are presented below:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Life
Balance at December 31, 2015		845,817		$	17.00		7.11
Granted		195,000		$	8.52		9.44
Cancelled		(93,464	)	$	23.20		—
Forfeited		(68,319	)	$	20.96		—
Exercised		—			—		—
Balance at December 31, 2016		879,034		$	17.84		6.79
Granted		—		$	—		—
Cancelled		—		$	—		—
Forfeited		(430,263	)	$	13.13		—
Exercised		—		$	—		—
Balance at December 31, 2017		448,771		$	15.50		6.23

Options Exercisable at December 31, 2017		433,667		$	15.52		6.16
Options expected to vest		15,104		$	14.56		8.18
Weighted average fair value of options granted during the period				$	—

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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