Marathon Patent Group, Inc. released its 2018 year-end financials on March 25, revealing just $2.6M in cash on hand as of December 31. Marathon’s 10-K also sheds new light on the NPE’s arrangements with Fortress Investment Group LLC, to which Marathon relinquished a portfolio of patents in 2017, including one now being litigated by Fortress against Amazon.
Marathon Patent Group, Inc. entered into a termination and release agreement on August 3 with Erich Spangenberg, whom it had hired in 2016 as its Director of Acquisitions, Licensing, and Strategy. Spangenberg’s departure came as Marathon was approaching an August 15 deadline, under which it was to repay Fortress Investment Group LLC $15.99M according to a debt restructuring plan signed in May. With Q1 revenue of just $78K, and with roughly $500K cash on hand going into Q2, it is not surprising that Marathon has now begun relinquishing patents to Fortress.
Per a recently signed debt restructuring plan, publicly traded NPE Marathon Patent Group, Inc. has three months to pay Fortress Investment Group LLC over $15M. With just around $500K cash on hand, Marathon—which on May 15 reported Q1 2017 revenue of just $78K—may be hard pressed to find the funds needed to meet that deadline.