Even with increased revenues, Prosper is bleeding money at a faster pace this year than they were last year.
Q2 2010 - Loss before other income: $2,787,434
Q2 2011 - Loss before other income:
$2,837,5601H 2010 - Loss before other income: $5,534,960
1H 2011 - Loss before other income:
$5,934,838That is a burn rate of just under ~$1,000,000 per month.
Prosper currently (as of June 30th, 2011) has cash on hand of $16,741,388.
At the most recent burn rate, that gives Prosper about 17 months (since June 30th, 2011) of operating time. That gives them until some time around December of 2012. (Maybe December 21st, 2012?)
Total Accumulated Deficit: $54,288,541Prosper is paying (extrapolated from 1H numbers) ~$1.8million/yr more "Compensation and Benefits" in 2011 than 2010.
On January 26, 2011, the court issued a final statement of decision finding that Greenwich has a duty to defend the class action lawsuit, and requiring that Greenwich pay Prosper's past and future defense costs in the class action suit up to $2 million. As of June 30, 2011, Greenwich made payments to Prosper in the amount of $1,896,844 to reimburse Prosper for the defense costs it had already incurred in the class action suit. This reimbursement is reflected in Other Income in our Statement of Operations. Greenwich is required to reimburse Prosper for up to an additional $103,156 in defense costs for the class action suit going forward. Each such reimbursement will be due within 30 days of Prosper incurring any such costs and presenting the applicable invoice to Greenwich. Greenwich is also required to pay Prosper pre-judgment interest on the defense costs incurred by Prosper in the class action suit prior to the Court’s decision. The amount of this pre-judgment interest is $142,584.
So, Prosper's insurance is only required to pay Prosper up to $2,000,000 (+interest) in past and future costs against the class action and has already paid $1,896,844.
Prosper is about to have to start paying for the defense costs out of its own pockets again very soon. And things are only just starting with the class action.Edit: Nominating Thread to The Lobby.