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[CleanRivers]

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

Holy crap...that is an astonishing, shocking, and infuriating figure. 
If you were a factory manager, and 45% of the products you QC'd were faulty...how could you justify NOT checking every single product that went out the door? Heck, how could you justify not shutting down the line and looking for ways to structurally change the way you were going about business?

If I were to Report to the DEQ that our Product did not meet permit 45% of the time I would be in Jail.

[beerbud1]

Name and Principal PositionYear Salary($) Bonus($) Option Awards ($)(1)All Other Compensation  Totals
 
Christian A. Larsen, Chief Executive Officer 2007 $150,000 — — —                                       $  150,000
 
John Witchel, former Chief Technology Officer(2) 2007 $ 150,000 — — —                               $ 150,000
 
Edward A. Giedgowd, Corporate Secretary, General Counsel 2007 $ 175,000 $25,000 $11,971— $ 211,971
 
Kirk T. Inglis—Chief Financial Officer  2007 $ 180,000 — — —                                           $180,000   

(2) Mr. Witchel resigned as our Chief Technology Officer on July 31, 2008.

 

   

 

[beerbud1]

In March 2005, we awarded, for nominal value, an aggregate of 4,000,000 shares of common stock valued at $0.10 per share or $400,000, to our co-founders.  2,000,000 shares were issued to Christian A. Larsen, our Chief Executive Officer, and 2,000,000 shares were issued to John Witchel, our former Secretary and Chief Technology Officer.  1,000,000 shares were immediately vested and the remaining 3,000,000 shares were to vest over 3.5 years for services rendered.  The unvested shares were subject to a repurchase agreement if the founders leave Prosper, in which case we could elect to repurchase any unvested shares at the lesser price of $0.10 per share or the fair market value at the date service ceases.  As a result of Mr. Witchel’s departure on July 31, 2008, we repurchased the 75,000 unvested shares then held by Mr. Witchel for $7,500, or $0.10 per share.  All of Mr. Larsen’s shares were fully vested as of September 30, 2008.

[beerbud1]

well, I dont see anything in their financial statements that suggest they made any money on the float of lender's money. That was a hot issue once.

Investment income
 Interest and dividends   $108,360 for the three months ending September 30, 2008
 

[Mark12547]

well, I dont see anything in their financial statements that suggest they made any money on the float of lender's money. That was a hot issue once.

Investment income
 Interest and dividends   $108,360 for the three months ending September 30, 2008

It would just be speculating, but could it be interest that Prosper is earning on the venture capital?

Back in the old forums, I recall Prosper mentioning that Lenders' cash was commingled in some sort of trust account with FDIC insurance pass through, and for some reason the account couldn't earn interest. (PayPal does offer interest, if I recall correctly, only on funds that are shoved over to a money market fund, which doesn't have FDIC insurance.)

[112233]

well, I dont see anything in their financial statements that suggest they made any money on the float of lender's money. That was a hot issue once.

Investment income
 Interest and dividends   $108,360 for the three months ending September 30, 2008

they have about 20M of their own cash

[bamalucky]

Can the VC take what money is left back & leave Prosper broke?

[lhsbandnurd]

I don't think so. Prosper would have to "repurchase" the shares it "sold" to the VC firms. Of course, the VCs on the board might could force the issue.

[GLeaderAccountantsChoice]

Ira pointed out already that the notes, like LC, will now be unsecured obligations of PMI.  Scary stuff.

I'm noting that the statement of operations is quite bleak looking.  With 20 million in cash, no going concern issue was raised by the auditors as of 12/31/07.  My 'guess' after looking at the September 30, 2008 financials is that cash pile has dwindled and it appears that PMI is going to need quite the infusion of capital.  PMI also has additional regulatory requirements to deal with now that imply a financial burden, one that management would seemingly have loved (tried) to avoid, in addition to the pending lawsuits which could prove quite costly.  This could very well be the beginning of the end... 

[ira01]

Edward A. Giedgowd, Corporate Secretary, General Counsel 2007 $ 175,000 $25,000 $11,971— $ 211,971

Yeah, Prosper's legal department did such a bang up job that they paid the General Counsel a $25K bonus plus $12K in options???   

[mhs505]

Name and Principal PositionYear Salary($) Bonus($) Option Awards ($)(1)All Other Compensation  Totals
 
Christian A. Larsen, Chief Executive Officer 2007 $150,000 — — —                                       $  150,000
 
John Witchel, former Chief Technology Officer(2) 2007 $ 150,000 — — —                               $ 150,000
 
Edward A. Giedgowd, Corporate Secretary, General Counsel 2007 $ 175,000 $25,000 $11,971— $ 211,971
 
Kirk T. Inglis—Chief Financial Officer  2007 $ 180,000 — — —                                           $180,000   

(2) Mr. Witchel resigned as our Chief Technology Officer on July 31, 2008.

 

I am actually a little surprised that the numbers here are so low.   With the housing prices in SF, how do they afford to live "comfortably" there?

[ira01]

Name and Principal PositionYear Salary($) Bonus($) Option Awards ($)(1)All Other Compensation  Totals
 
Christian A. Larsen, Chief Executive Officer 2007 $150,000 — — —                                       $  150,000
 
John Witchel, former Chief Technology Officer(2) 2007 $ 150,000 — — —                               $ 150,000
 
Edward A. Giedgowd, Corporate Secretary, General Counsel 2007 $ 175,000 $25,000 $11,971— $ 211,971
 
Kirk T. Inglis—Chief Financial Officer  2007 $ 180,000 — — —                                           $180,000   

(2) Mr. Witchel resigned as our Chief Technology Officer on July 31, 2008.

I am actually a little surprised that the numbers here are so low.   With the housing prices in SF, how do they afford to live "comfortably" there?

Larsen's loaded, and Wichtel probably has money too.  And of course they each have a mountain of Prosper stock, which they were hoping would be worth bazillions after an IPO.

[Mtnchick]

Larsen's loaded, and Wichtel probably has money too.  And of course they each have a mountain of Prosper stock, which they were hoping would be worth bazillions after an IPO.

Let's not forget that it's rare you own a business and your salary is how much you actually make. Right now I'm making $100 a week and trust me, it's not even that cheap to live where I live

[GLeaderAccountantsChoice]

Larsen's loaded, and Wichtel probably has money too.  And of course they each have a mountain of Prosper stock, which they were hoping would be worth bazillions after an IPO.

Let's not forget that it's rare you own a business and your salary is how much you actually make. Right now I'm making $100 a week and trust me, it's not even that cheap to live where I live

  

[cubbiesnextyr]

Larsen's loaded, and Wichtel probably has money too.  And of course they each have a mountain of Prosper stock, which they were hoping would be worth bazillions after an IPO.

Let's not forget that it's rare you own a business and your salary is how much you actually make. Right now I'm making $100 a week and trust me, it's not even that cheap to live where I live

Your business structure and their business structure are very different.  It's the options that they hoped would be worth tons is what their true compensation is, just like when CEO's take a $1 salary, that doesn't include stock options.