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[bamalucky]

Ok i'm done pasting..This is a huge document & i'm sure i missed more nuggets than i found.

[Urbi_et_Orbi]

Page 80

We believe that these provisions and agreements are necessary to attract and retain qualified persons as directors and officers.  To the extent these provisions permit us to indemnify our officers and directors for liabilities arising under the Securities Act, however, we have been informed by the SEC that such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

[onthefence]

Digital fingerprinting means things like taking note of the IP address a person uses when accessing prosper's web site, so one person can't just login over and over pretending to be 12 different people, each taking out a loan, like Victoria Crawford did.  Uh... Were those digital fingerprinting techniques in place when Victoria Crawford did her deed?

Digital fingerprinting could include other items such as:
* Cookies
* Location of IP address (or set of IP addresses)
* OS Version, Browser Version,

Here is an example of additional data they can pull up:
http://www.showipaddress.com

[bamalucky]

My biggest shock is 22% of loans were verified & 45% of those were canceled by PMI.

Doesn't anyone else see a need to verify 100% of loans?

[onthefence]

My biggest shock is 22% of loans were verified & 45% of those were canceled by PMI.

Doesn't anyone else see a need to verify 100% of loans?

Agreed.  Sure lenders could assume the risk of not verifying income & employment.  But if Prosper wants to continue to offer competitive interest rates, they need to keep defaults low.  I largely suspect that verification would be a huge step towards reducing fraud & defaults.

[Urbi_et_Orbi]

.  Intangible Assets and Promissory Note Payable

 

In 2006, Prosper paid a total of $603,659 to acquire “Prosper.com” domain name.

!!!!!!!!! 

Page F-14

[Mtnchick]

My biggest shock is 22% of loans were verified & 45% of those were canceled by PMI.

Doesn't anyone else see a need to verify 100% of loans?

Agreed.  Sure lenders could assume the risk of not verifying income & employment.  But if Prosper wants to continue to offer competitive interest rates, they need to keep defaults low.  I largely suspect that verification would be a huge step towards reducing fraud & defaults.

But it's not...their...money. They couldn't care less and have proven that. These numbers just add more verification to what we already knew: They weren't even in any way, shape or form thinking of the lenders. Period.

[bamalucky]

.  Intangible Assets and Promissory Note Payable

 

In 2006, Prosper paid a total of $603,659 to acquire “Prosper.com” domain name.

!!!!!!!!! 

Page F-14

Was all in stock though Urbi..They got it for free 

[onthefence]

Prosper 2.0 Notes.

Final maturity date/ Extension of maturity date
One year after the initial maturity date.  Each Note will mature on the initial maturity date, unless any principal or interest payments in respect of the corresponding borrower loan remain due and payable to Prosper upon the initial maturity date, in which case the maturity of the Note will be automatically extended to the final maturity date.  If there are any amounts under the corresponding borrower loan still due and owing to us after the final maturity date, we will have no further obligation to make payments on the Notes of the series even if we receive payments on the corresponding borrower loan after the final maturity date.

So 1 year after the maturity of the loan, if any funds a borrower pays prosper is pure gravy for them.  Given that Prosper is sitting on these loans & not selling them, this sounds like a major conflict of fiduciary interest.

[Urbi_et_Orbi]

The purchase price consisted of $320,000 cash, 26,483 shares of Prosper’s common stock valued at $0.50 per share (or $13,242) and a non-interest bearing promissory note of $380,000.  The note was discounted by $109,583 for a net payable of $270,417.  The promissory note is payable in annual installments of $20,000 due on the first, second, third, and fourth anniversary of the note and $300,000 due on the fifth anniversary of the note.  The discount on the note was calculated based on an imputed annual rate of 8% and is amortized to interest expense over the five year life of the loan.  Amortization of the discount on the note of $21,633 and $10,817 was recorded in the years ended 2007 and 2006, respectively.

[bamalucky]

The purchase price consisted of $320,000 cash, 26,483 shares of Prosper’s common stock valued at $0.50 per share (or $13,242) and a non-interest bearing promissory note of $380,000.  The note was discounted by $109,583 for a net payable of $270,417.  The promissory note is payable in annual installments of $20,000 due on the first, second, third, and fourth anniversary of the note and $300,000 due on the fifth anniversary of the note.  The discount on the note was calculated based on an imputed annual rate of 8% and is amortized to interest expense over the five year life of the loan.  Amortization of the discount on the note of $21,633 and $10,817 was recorded in the years ended 2007 and 2006, respectively.

Wow,i missed that part

[Mtnchick]

The purchase price consisted of $320,000 cash, 26,483 shares of Prosper’s common stock valued at $0.50 per share (or $13,242) and a non-interest bearing promissory note of $380,000.  The note was discounted by $109,583 for a net payable of $270,417.  The promissory note is payable in annual installments of $20,000 due on the first, second, third, and fourth anniversary of the note and $300,000 due on the fifth anniversary of the note.  The discount on the note was calculated based on an imputed annual rate of 8% and is amortized to interest expense over the five year life of the loan.  Amortization of the discount on the note of $21,633 and $10,817 was recorded in the years ended 2007 and 2006, respectively.

They could have bought a pr0n site for less and made some actual money 

But again, it wasn't their money - it was the VC's. They were spending like drunken sailors. Only we're the ones with the hangover

[Urbi_et_Orbi]

How is that behaving with a sense of fiduciary responsibility for a start-up?

[bamalucky]

How is that behaving with a sense of fiduciary responsibility for a start-up?

I wonder which pal owned that domain?

[Capital_Finance_Group]

My biggest shock is 22% of loans were verified & 45% of those were canceled by PMI.

Doesn't anyone else see a need to verify 100% of loans?

+1