Print

[Xenon481]

http://www.sec.gov/Archives/edgar/data/1416265/000114036113032671/form10q.htm

Q2 2009 - Loss before other income: $2,617,400
Q3 2009 - Loss before other income: $2,289,092
Q4 2009 - Loss before other income: $2,868,908
Q1 2010 - Loss before other income: $2,747,524
Q2 2010 - Loss before other income: $2,787,434
Q3 2010 - Loss before other income: $2,404,217
Q4 2010 - Loss before other income: $2,566,804
Q1 2011 - Loss before other income: $3,097,283
Q2 2011 - Loss before other income: $2,837,560
Q3 2011 - Loss before other income: $2,837,290
Q4 2011 - Loss before other income: $3,519,037
Q1 2012 - Loss before other income: $4,690,488
Q2 2012 - Loss before other income: $3,545,603
Q3 2012 - Loss before other income: $4,448,773
Q4 2012 - Loss before other income: $4,764,596
Q1 2013 - Loss before other income: $4,516,630
Q2 2013 - Loss before other income: $16,175,000 * and **

* = Prosper is recording the entire $10million settlement cost in Q2 of 2013.
** = Prosper's quarterly operating loss (not counting the $10million settlement) is over $6million which is ~30% higher than their previous record for a quarterly loss.


Prosper currently has (as of June 30th, 2013) a combined "Cash and Cash Equivalents" of $10,515,000, but this is before having made any payments for the Class Action Lawsuit settlement.

- Prosper Assets: $208,617,000
- Prosper Liabilities: $202,325,000 (including the $10million settlement)
------------------------------------------
- Prosper Net Worth: $6,292,000


- Compensation increased by ~$765k (~30%) between Q1 and Q2.
- Marketing increased by ~$2.3million (~147%) between Q1 and Q2.


Edit: OK for Lobby

[Xenon481]

With Prosper's current cash level and their current burn rate, they only have 1-2 more quarters until they will require yet another venture capital cash infusion.

[112233]

- Prosper Assets: $208,617,000
- Prosper Liabilities: $202,325,000 (including the $10million settlement)
------------------------------------------
- Prosper Net Worth: $6,292,000

it's worth noting there is 187M in both the the assets and liabilities for borrower notes. Im not an accountant but this changes the context of those numbers a bit.







   

[112233]

so does the fact they already put the 10M on the books imply a settlement was reached? ie, is it a common practice to account for settlements before they happen, and if they dont happen add a second entry to fix it?

[112233]

On July 19, 2013, PMI agreed to enter into a Stipulation and Agreement of Compromise, Settlement, and Release (the “Settlement”) related to the action captioned (plaintiffs), individually and on behalf of all others similarly situated, v. Prosper Marketplace, Inc., a Delaware Corporation, Christian Larsen, Ed Giedgowd, Kirk T. Inglis, Doug Fuller, James W. Breyer, Larry W. Cheng, Robert C. Kagle, and John and Jane Does 1-100, No. CGC-08-482329, which is currently pending in the Superior Court.  In exchange for a full release of the Claims as to all class members against all defendants, and subject to Court approval, PMI agreed to pay settlement consideration in the total amount of $10,000 according to the following schedule: (i) $2,000 within 10 days of entry of an order by the Court granting preliminary approval of the settlement (“Preliminary Approval”); (ii) $2,000 on the one-year anniversary of Preliminary Approval; (iii) $3,000 on the two-year anniversary of Preliminary Approval; and (iv) $3,000 on the three-year anniversary of Preliminary Approval. See Note 10 Commitments and Contingencies.

[Xenon481]

On July 19, 2013, PMI agreed to enter into a Stipulation and Agreement of Compromise, Settlement, and Release (the “Settlement”) related to the action captioned (plaintiffs), individually and on behalf of all others similarly situated, v. Prosper Marketplace, Inc., a Delaware Corporation, Christian Larsen, Ed Giedgowd, Kirk T. Inglis, Doug Fuller, James W. Breyer, Larry W. Cheng, Robert C. Kagle, and John and Jane Does 1-100, No. CGC-08-482329, which is currently pending in the Superior Court.  In exchange for a full release of the Claims as to all class members against all defendants, and subject to Court approval, PMI agreed to pay settlement consideration in the total amount of $10,000 according to the following schedule: (i) $2,000 within 10 days of entry of an order by the Court granting preliminary approval of the settlement (“Preliminary Approval”); (ii) $2,000 on the one-year anniversary of Preliminary Approval; (iii) $3,000 on the two-year anniversary of Preliminary Approval; and (iv) $3,000 on the three-year anniversary of Preliminary Approval. See Note 10 Commitments and Contingencies.

Note that these numbers are in units of thousands of dollars.

[NewHorizon]

poof

[cubbiesnextyr]

so does the fact they already put the 10M on the books imply a settlement was reached? ie, is it a common practice to account for settlements before they happen, and if they dont happen add a second entry to fix it?

GAAP standards say they have to book the liability for lawsuits against it once it becomes more likely than not that they plaintiff will win.  Since they're saying they'll do a settlement, it's pretty obvious that they now have a future liability of $10M, thus they must recognize the liability and cost now.

[Xenon481]

http://www.sec.gov/Archives/edgar/data/1416265/000141626513000582/ps8d08d23d2013.htm

Prosper just filed an 8-K with the SEC stating that their CFO (Kenneth Niewald) has resigned and will be replaced by Joshua P. Hachadourian.

[112233]

Only 4 months on the job

[yankeefan]

Only 4 months on the job

Slow learner.

[msava]

Are these guys getting golden parachutes?

[TotoMMB]

Only 4 months on the job

Slow learner.

Maybe Prosper didn't make any payments and the bill was sent to collections. He'll get paid, but only after service fees are taken out.   

[ccat]

I might be the slow learner here, but can someone explain why a venture capitalist group would put several million dollars into a company that was losing several million dollars every single quarter for the last 4 years (or more)?

The VC's bailed on most dot.com's when they didn't pan out, why is anyone sticking with this loser? What am I missing here?

[Ray Kremer]

Prosper Files 10-Q

You're welcome!