Mara Holdings, Inc. · NASDAQ:MARA
Mara — Marathon Patent Group — Investor Presentation (December 2013)
28 slides from Mara's investor presentation, Dec 3, 2013
Slide 1: Investor Presentation December 2013
INVESTOR PRESENTATION DECEMBER 2013
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT ‘Safe Harbor This presentation and otter writen oF oral statements made from time to tine by rearesentatives of Marathon Patent Group (°MPG" or "Macatnon"} contain “Trward ooking statements” within tne meaning of Section 27A of the Secures Act of 1933, 35 amended, and Section 2
Slide 3: Marathon Overview
MARATHON OVERVIEW > Patent licensing company - Marathon acquires patents and Marathon monetizes patents Vv Marathon acquires patent assets, partners with patent holders, and monetizes patent assets through licensing campaigns > Source of patents: Fortune 500 companies to independent inventors > Diff
Slide 4: Patent Acquisition
PATENT ACQUISITION > Established deal flow — sources of patent opportunities > Analyzing deal flow > Process of acquisition > Typical terms/structure > Year-to-date invested $2.5 million (cash) in patent assets » Growth and diversification patent asset base > Success of patent acquisition is critica
Slide 5: Patent Monetization
PATENT MONETIZATION va Our process commences in due diligence Communicate with defendants / potential licensees as to the evident strength of our claims with a goal of reaching a settlement and license agreement A large pool of defendants / potential licensees (currently 62) provides for diversity o
Slide 6: Financial Model
FINANCIAL MODEL > Multiple assets provide opportunity for multiple revenue events > Currently have 7 portfolios within 7 wholly-owned operating subsidiaries > 62 active defendants within four different licensing campaigns > We believe that over the next 3 to 5 years our current patent asset base may
Slide 7: Potential Effect of Licensing Model
POTENTIAL EFFECT OF LICENSING MODEL Current Licensing Campaigns Time imber of Settlements and License Agreements Execut g Aggregate of Current Licensing Campaigns Time Number of Settlements and License Agreements Executed 242013 PROFERTY OF MARATHON PATENT GROUP, ING.
Slide 8: Milestones Reached
MILESTONES REACHED » Current business model commenced in November 2012 > Quarter ended 6/30/2013 (was the first quarter operating under the current business model) > Increased portfolio count from one to four > Increased defendant count from zero to 40 > Revenue grew from zero to $1.525 million (inc
Slide 9: Q3 2013 Operating Analysis
Q3 2013 OPERATING ANALYSIS FOR THE THREE FOR THE THREE MONTHS ENDED LESSNON-CASH MONTHS ENDED SEPT 30,2013 ADJUSTMENTS SEPT 30, 2013 (Unaudited) (Unaudited) (Cnaudited) Revenues $710,500 Ss $710,500 Cost of revenues 403.013 : 403,013 Gross profit (loss) 307,487 . 307,487 Expenses Amortization of pat
Slide 10: Legislative Activity
LEGISLATIVE ACTIVITY > AIA (America Invents Act) was signed into law September 16, 2011 > Currently eight proposed Bills announced, typically only one Bill will survive Vv Timing of House Bill; Timing of Senate Bill Vv Marathon supports effective and fair reform to address bad actors and bad behavio
Slide 11: Investor Highlights
INVESTOR HIGHLIGHTS > Experienced and proven team - strategic relationship with IPNav > Continuous supply of patent opportunities > Continued focus on acquisition of additional patent assets to continue and increase diversification of asset base » Highly scalable business model allows for concurrent
Slide 12: Marathon at a Glance
MARATHON AT A GLANCE Exchange/Ticker OTCBB: MARA Current price $5.75 Market Capitalization $31 Million Common Shares Outstanding 3 MM Fully Diluted Shares 9 MM ‘Avg. Daily Volume (3 month) = 32,000 Solid balance sheet (as of Q3 2013) (no debt) = $6 Million Cash 242013 PROFERTY OF MARATHON PATENT GRO
Slide 13: Appendix
APPENDIX 242013 PROPERTY OF MARATHON PATENT GROUP, INC
Slide 14: Current Subsidiaries
CURRENT SUBSIDIARIES > CyberFone > 10US. Patents, 1 US. Application and 27 foreign patents > Marathon’s CyberFone patent portfolio covers claims that provide the right to practice specific transactional data processing, telecommunications, network and database inventions, including financial transac
Slide 15: CyberFone
CYBERFONE > Acquired CyberFone patent portfolio in April 2013 > Key patent clalm(s): Covers transaction entry system into a database and form-based operating systems > Numerous named defendants remain n active lawsuits > Licensing campaign commenced by previous CyberFone portfolio owner in September
Slide 16: CyberFone Litigation Cycle
CYBERFONE LITIGATION CYCLE {cyberFone is reviewing new potential Ucensing campalgns | ‘COMPLAINT FLED BY US. DSTRICT COURT | rans coro sumaons PUANTIFF REPLIES TO (CyberFone is curently waiting for the ge ‘to deliver the dalm construction ruling | ‘LAM CONSTRUCTION (ARAN) HEARING JURY TRIAL TIMING V
Slide 17: Relay IP
RELAY IP. + Acquired Relay P patent portfolio in April 2013 from MOSAID and have executed two settlement and license agreements since commencement. ‘+ Key patent claims): Covers mult-casting and routing technologies ‘+ 2Snamed defendants in active lawsuit fled between §/3/13 ~ 6/14/13 in Delaware in
Slide 18: Relay IP Litigation Cycle
RELAY IP LITIGATION CYCLE Relay IPs replying to Defendant's initial ‘esponses tothe infringement complaints | COMPLAINT FLED BY US. DSTRICT COURT PLAINTIFF SERVES COPY OF SUMMONS | PUANTIFF REPLIES TO ‘CLAIM CONSTRUCTION (ARAN) HEARING JURY TRIAL TIMING VARIES BETWEEN ‘SUMMARY JUDGMENT ‘MOTIONS £6,
Slide 19: Sampo IP
SAMPO IP > Acquired Sampo patent portfolioin November 14, 2012 > Key patent clalm(s): Covers systems and methods of facilitating mult-party communications > Three settlement and license agreements since June 2013, > Achieved fist settlement within four months of commencing initial licensing campaign
Slide 20: Sampo IP Litigation Cycle
SAMPO IP LITIGATION CYCLE ‘Sampo filed two new complaint EDVA against Salesforce.com and Blackboard | ‘COMPLAINT FLED BY US. DSTRICT COURT PLAINTIFF SERVES COPY OF SUMMONS | PUANTIFF REPLIES TO RULE 26) MEETING OF COUNSEL vy i it DesENDANT ANSWERS \ COUNTERCLAIM DEPOSTIONS, DOCUMENT REQUESTS, REQUES
Slide 21: Vantage Point
VANTAGE POINT > Early Priority Dates; November 2, 1993, February 20, 1996 > The ‘750 patent covers a processor architecture that is implemented in nearly all modem-day mobile devices S Numerous Fortune 500 Companies have already licensed the portfolio including HP, IBM, AMD, ‘Sharp, and Toshiba & Th
Slide 22: Vantage Point Litigation Cycle
VANTAGE POINT LITIGATION CYCLE Vantage Point fled 27 Complaints in EDTX on November 1 25, 2013 : ‘COMPLAINT FLED BY US. DSTRICT COURT PLAINTIFF SERVES COPY OF SUMMONS | PUANTIFF REPLIES TO RULE 26) MEETING OF COUNSEL vy i it DesENDANT ANSWERS \ COUNTERCLAIM DEPOSTIONS, DOCUMENT REQUESTS, REQUESTS FO
Slide 23: CRFD Research
CRED RESEARCH > We believe that CRFD Research's wireless technology portfolio represents key enabling wireless technologies in two distinct areas. > We believe that the CRFD Research portfolio enables seamless synchronization of data between wireless devices, desktops, laptops, tablets, e-readers an
Slide 24: CRFD Research Litigation Cycle
CRED RESEARCH LITIGATION CYCLE CRFO Research Is assessing Initial Infringement complaints | ¥ ‘COMPLAINT FLED BY US. DSTRICT COURT PLAINTIFF SERVES COPY OF SUMMONS | PUANTIFF REPLIES TO RULE 26) MEETING OF COUNSEL vy i it DesENDANT ANSWERS \ COUNTERCLAIM DEPOSTIONS, DOCUMENT REQUESTS, REQUESTS FOR A
Slide 25: E2E Processing
E2E PROCESSING > Utility throughout the manufacturing industry including the car industry, retail/consumer products, ‘communications equipment, electronic component OEMs, or any other industry employing @ manufacturing process. v Claims cover the use of XML in an interactive process between a user a
Slide 26: E2E Processing Litigation Cycle
E2E PROCESSING LITIGATION CYCLE 2E Processing is assessing Initial infringement complaints | ¥ ‘COMPLAINT FLED BY US. DSTRICT COURT PLAINTIFF SERVES COPY OF SUMMONS | PUANTIFF REPLIES TO RULE 26) MEETING OF COUNSEL vy i it DesENDANT ANSWERS \ COUNTERCLAIM DEPOSTIONS, DOCUMENT REQUESTS, REQUESTS FOR
Slide 27: Management
MANAGEMENT. Doug Croxall = Previously the CEO & owner of LVL Patent Group, a patent enforcement entity (CEO & Chairman = Chairman and CEO of Firepond (NASDAQ: FIRE), a configuration software company with a patent portfolio enforced by IP Nav for $93 millon in gross revenues = Previously employed by
Slide 28: Contact Information
CONTACT INFORMATION ‘Company Conta Doug Croxall, CEO 703.232.1701 office doug@marathonpg.com Investor Contact: ‘The Del Mar Consulting Group, Inc. or Robert 8. Prag, President 858-794-9500 bprag@delmarconsulting.com Alex Partners, LLC Scott Wilfong, President 425-242-0891 scott@alexpartnersilccom 24
Marathon Patent Group — Investor Presentation (December 2013) on 6ix