Mara Holdings, Inc. · NASDAQ:MARA
Mara — Marathon Patent Group — Investor Presentation (September 2014)
15 slides from Mara's investor presentation, Sep 3, 2014
Slide 1: Marathon Patent Group Investor Presentation
MARATHON PATENT GROUP Investor Presentation September 2014 Copyright Marathon Patent Group®
Slide 2: Safe Harbor
yp Safe Harbor ‘This presentation and other written or oral statements made from time to time by representatives of Marathon Patent Group (‘MPG" or "Marathon" contain “forward-looking statements’ within the meaning of Section 27, of the Securities Act of 1933, as amended, and Section 218 of the Secu
Slide 3: Marathon - Overview
yp Marathon - Overview * Patent acquisition and monetization company that generates revenues through diverse patent licensing programs across Exchange/ NASDAQ: multiple industries Ticker: MARA + As of 8/15/14, Marathon subsidiaries collectively own 128 patents and contract rights for 10 patents Comm
Slide 4: Marathon's Business Model
yp Marathon’s Business Model > > Proprietary process for valuing patent assets Highly scalable hybrid model allows for concurrent multiple revenue streams without significant increases in overhead Eleven (11) subsidiaries with active enforcement campaigns — through 6/30/14, seven (7) subsidiaries ha
Slide 5: Diversification within the Asset Class
p Diversification within the Asset Class ‘Revenue Diversification Percentage of P Technol » Mobile Handset Technology — 27% > Multiple potential licensees — 87 defendants > Data Transaction Processing 27% > Automotive related technology’ ~ 15% > Marathon has one defendant currently > PBX Networks ~
Slide 6: Financial Performance: Non-GAAP
yp Financial Performance: Non-GAAP Profitability with Strong Balance Sheet Revenues $0.7M $1.2M $3.4M. $2.8M. $3.8M. cs ee (O.9M GLYM G25M G0HM G1L6M Non-GAAP Let Income (Loss) $0.1)M 0.3)M_ —($0.9)M_—$0.9M $1.2M Non-GAAP EPS ($0.02) ($0.07) ($0.16) $0.16 $0.21 Cash Balance $5.9M_ $3.6M. $3.6M. $5.4
Slide 7: Case Study — Dynamic Advances
y Case Study — Dynamic Advances Researchers at Rensselaer Polytechnic Institute (‘RPI’) in NY were granted US Patent 7.177.798 (‘798 patent) titled “Natural language interface using constrained intermediate dictionary of results” > — RPI sold exclusive license to Dynamic Advances (a private LLC) > R
Slide 8: Relationship with IPNav
yp Relationship with IPNav Acquisition Pipeline IPNav helps uncover patent acquisition opportunities for Marathon from a large and diverse group of sources New Revenue Stream Opus Analytics (subsidiary of Marathon) has exclusive license to sell subscriptions to Opus (proprietary patent analytics too
Slide 9: Opus Analytics: New Emerging Revenue Stream
p Opus Analytics: New Emerging Revenue Stream > Opus —IP analytics platform developed for IPNav > Launch date September 15th > 50/50 revenue split between Marathon and IPNav > Expected to generate consistent, regular Software as a Service (SaaS) revenue stream > — Target Market: finance, legal, and
Slide 10: Experienced Management Team with Track Record of Success
Experienced Management Team with Track Record of Success Doug Croxall - CEO & Chairman + Previously CEO & owner of LVL Patent Group, a patent enforcement entity + Chairman & CEO of Firepond (NASDAQ: FIRE), a configuration software company with a patent portfolio enforced by IPNav for approximately $
Slide 11: Popular Misconceptions about Patent Enforcement
Our Observations* PAEs (“Patent Assertion Entity”) negatively impact the economy and job growth and stifle innovation. PAEs “shake-down” defendants with frivolous suits. Patents are not “real assets” and therefore are not as valuable as real property. Pending regulatory issues are a threat to the bu
Slide 12: Perceived Investment Risks and Mitigants
yp Perceived Investment Risks and Mitigants — Our Observations* Perceived Risk Litigation risk and uncertainty of revenue timing Unfavorable regulatory environment Lumpy/inconsistent revenue stream Inadequate patent acquisition opportunities Key man risk due to few Marathon employees Less than 1% of
Slide 13: Investment Highlights
yp Investment Highlights > v v v vv vv _ Diversification within the asset class: Number of patent portfolios; Across varying industries; Covering multiple technology areas; Generating different frequency and amount of revenue, and; Stage at which Marathon invests / acquires the assets Proprietary pr
Slide 14: Appendix
Appendix
Slide 15: Non-GAAP Reconciliation
yp Non-GAAP Reconciliation INFORMATION AROUT NON-GAAP FINANCIAL MEASURES, As used herein, “GAAP* sofersoscsnuntigg principles generally accopted inthe United States Amerie To supplement our consoled nancial statement prepared and presented in cordance with GAAP, this poventation ii ‘eluding prorontd
Marathon Patent Group — Investor Presentation (September 2014) on 6ix