Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 30, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Line Items] | |||
Entity Registrant Name | PROSPER MARKETPLACE INC | ||
Entity Central Index Key | 1416265 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $59,433,000 | ||
Entity Common Stock, Shares Outstanding | 14,869,215 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Prosper Funding LLC [Member] | |||
Document And Entity Information [Line Items] | |||
Entity Registrant Name | Prosper Funding LLC | ||
Entity Central Index Key | 1542574 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $0 | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and Cash Equivalents | $50,557 | $18,339 |
Restricted Cash | 81,300 | 49,824 |
Short Term Investments | 1,274 | 1,271 |
Accounts Receivable | 3,152 | 296 |
Loans Held for Sale, at Fair Value | 8,463 | 3,206 |
Borrower Loans, at Fair Value | 273,243 | 233,105 |
Property and Equipment, Net | 14,424 | 3,026 |
Prepaid and Other Assets | 7,745 | 1,192 |
Total Assets | 440,158 | 310,259 |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
Accounts Payable and Accrued Liabilities | 17,239 | 3,388 |
Payable to Investors | 64,494 | 38,025 |
Class Action Settlement Liability | 7,861 | 9,739 |
Notes, at Fair Value | 273,783 | 234,218 |
Repurchase Liability for Unvested Restricted Stock Awards | 1,010 | 559 |
Total Liabilities | 364,387 | 285,929 |
Commitments and Contingencies (see Note 12) | ||
Convertible Preferred Stock – $0.01 par value; 32,155,022 shares authorized; 30,699,957 issued and outstanding as of December 31, 2014. 27,274,068 shares authorized, issued and outstanding as of December 31, 2013, respectively. Aggregate liquidation preference of $160,952 and $96,172 as of December 31, 2014 and December 31, 2013, respectively. | 111,145 | 44,822 |
Stockholders' Equity (Deficit) | ||
Common Stock --$0.01 par value; 47,928,883 shares authorized; 14,448,700 shares issued and outstanding as of December 31, 2014; 41,487,465 shares authorized; 13,588,803 issued and outstanding as of December 31, 2013 | 102 | 75 |
Additional Paid-In Capital | 86,340 | 83,676 |
Less: Treasury Stock | -303 | -291 |
Accumulated Deficit | -121,513 | -103,952 |
Total Stockholders' Equity (Deficit) | -35,374 | -20,492 |
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | 440,158 | 310,259 |
Prosper Funding LLC [Member] | ||
ASSETS | ||
Cash and Cash Equivalents | 23,777 | 5,789 |
Restricted Cash | 73,103 | 46,650 |
Short Term Investments | 1,274 | 1,271 |
Loans Held for Sale, at Fair Value | 8,463 | 3,206 |
Borrower Loans, at Fair Value | 273,243 | 233,104 |
Property and Equipment, Net | 1,125 | 1,610 |
Other Assets | 3,120 | 443 |
Related Party Receivable | 1,135 | |
Total Assets | 385,240 | 292,073 |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
Accounts Payable and Accrued Liabilities | 1,357 | 405 |
Payable to Investors | 63,809 | 38,021 |
Notes, at Fair Value | 273,783 | 234,218 |
Related Party Payable | 205 | |
Total Liabilities | 338,949 | 272,849 |
Stockholders' Equity (Deficit) | ||
Member's Equity | 29,619 | 15,836 |
Accumulated Deficit | 16,672 | 3,388 |
Total Stockholders' Equity (Deficit) | 46,291 | 19,224 |
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | $385,240 | $292,073 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Convertible preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Convertible preferred stock, shares authorized (in shares) | 32,155,022 | 27,274,068 |
Convertible preferred stock, shares issued (in shares) | 30,699,957 | 27,274,068 |
Convertible preferred stock, shares outstanding (in shares) | 30,699,957 | 27,274,068 |
Convertible preferred stock, aggregate liquidation preference | $160,952 | $96,172 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 47,928,883 | 41,487,465 |
Common stock, shares issued (in shares) | 14,448,700 | 13,588,803 |
Common stock, shares outstanding (in shares) | 14,448,700 | 13,588,803 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 |
Operating Revenues | |
Transaction Fees, Net | $68,229 |
Servicing Fees, Net | 4,552 |
Other Revenues | 5,055 |
Total Operating Revenues | 77,836 |
Interest Income | |
Interest Income on Borrower Loans | 42,087 |
Interest Expense on Notes | -38,734 |
Net Interest Income | 3,353 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 128 |
Total Net Revenues | 81,317 |
Expenses | |
Origination and Servicing | 14,098 |
Sales and Marketing | 41,971 |
General and Administrative | 27,917 |
Total Expenses | 83,986 |
Net Income (Loss) | -2,669 |
Excess Return to Preferred Shareholders on Repurchase | -14,892 |
Net Loss Applicable to Common Shareholders | -17,561 |
Net Loss Per Share – Basic and Diluted | ($1.97) |
Weighted-Average Shares - Basic and Diluted Net Loss Per Share | 8,896,801 |
Prosper Funding LLC [Member] | |
Operating Revenues | |
Administration Fee Revenue – Related Party | 28,519 |
Servicing Fees, Net | 4,168 |
Other Revenues | 3,733 |
Total Operating Revenues | 36,420 |
Interest Income | |
Interest Income on Borrower Loans | 42,370 |
Interest Expense on Notes | -38,734 |
Net Interest Income | 3,636 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 209 |
Total Net Revenues | 40,265 |
Expenses | |
Servicing | 4,615 |
Administration Fee – Related Party | 21,860 |
General and Administrative | 506 |
Total Expenses | 26,981 |
Net Income (Loss) | $13,284 |
Consolidated_Statements_of_Con
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (USD $) | Total | Prosper Funding LLC [Member] | Restricted Stock | Convertible Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member] | Member's Equity [Member] |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Restricted Stock | USD ($) | Restricted Stock | USD ($) | USD ($) | Prosper Funding LLC [Member] | Prosper Funding LLC [Member] |
USD ($) | USD ($) | USD ($) | ||||||||||
Balance at Dec. 31, 2012 (Previously Stated [Member]) | $6,037 | $72 | $5 | ($291) | $83,150 | ($76,899) | ||||||
Balance (Adjustment [Member]) | -80,370 | 80,269 | -80,252 | -46 | ||||||||
Balance at Dec. 31, 2012 | -74,333 | 5 | -291 | |||||||||
Balance (in shares) at Dec. 31, 2012 (Previously Stated [Member]) | 7,195,813 | 482,938 | -182,264 | |||||||||
Balance (in shares) at Dec. 31, 2012 | -182,264 | |||||||||||
Net Income (Loss) | -4,170 | 239 | ||||||||||
Net Income (Loss) at Jan. 01, 2013 (Previously Stated [Member]) | -4,199 | 187 | ||||||||||
Net Income (Loss) (Adjustment [Member]) | 29 | 52 | ||||||||||
Balance at Mar. 31, 2013 | ||||||||||||
Balance at Dec. 31, 2012 (Previously Stated [Member]) | 6,037 | 72 | 5 | -291 | 83,150 | -76,899 | ||||||
Balance (Adjustment [Member]) | -80,370 | 80,269 | -80,252 | -46 | ||||||||
Balance at Dec. 31, 2012 | -74,333 | 5 | 80,341 | 5 | -291 | 2,898 | -76,945 | -205 | 210 | |||
Balance (in shares) at Dec. 31, 2012 (Previously Stated [Member]) | 7,195,813 | 482,938 | -182,264 | |||||||||
Balance (in shares) at Dec. 31, 2012 | 7,195,813 | 482,938 | -182,264 | |||||||||
Issuance of convertible preferred stock, new Series A, net of issuance costs | 19,840 | |||||||||||
Issuance of convertible preferred stock, new Series A, net of issuance costs (in shares) | 13,868,152 | |||||||||||
Issuance of convertible preferred stock Series A-1 | 51 | |||||||||||
Issuance of convertible preferred stock Series A-1 (in shares) | 5,117,182 | |||||||||||
Issuance of convertible preferred stock, new Series B, net of issuance costs | 24,931 | |||||||||||
Issuance of convertible preferred stock, new Series B, net of issuance costs (in shares) | 8,288,734 | |||||||||||
Conversion of Preferred Series A-F | 80,341 | -80,341 | 62 | 80,279 | ||||||||
Conversion of Preferred Series A-F (in shares) | -7,195,813 | 6,191,270 | ||||||||||
Exercise of vested stock options | 210 | 8 | 202 | |||||||||
Exercise of vested stock options (in shares) | 828,496 | |||||||||||
Exercise of nonvested stock options (in shares) | 6,499,463 | |||||||||||
Repurchase of stock (in shares) | -414,184 | |||||||||||
Exercise of common stock warrants (in shares) | 820 | |||||||||||
Restricted stock vested | 51 | 51 | ||||||||||
Stock-based compensation expense | 246 | 246 | ||||||||||
Net Income (Loss) | -27,007 | 3,593 | -27,007 | 3,593 | ||||||||
Net Income (Loss) at Jan. 01, 2013 (Previously Stated [Member]) | -27,181 | 3,623 | ||||||||||
Net Income (Loss) (Adjustment [Member]) | 174 | -30 | ||||||||||
Transfer of Assets from PMI | 5,649 | 5,649 | ||||||||||
Capital Infusion from Parent | 10,001 | 10,001 | ||||||||||
Transfer of Servicing Rights to Parent | -24 | -24 | ||||||||||
Balance at Dec. 31, 2013 (Previously Stated [Member]) | 24,117 | 19,494 | ||||||||||
Balance (Adjustment [Member]) | -44,609 | -270 | ||||||||||
Balance at Dec. 31, 2013 | -20,492 | 19,224 | 44,822 | 75 | -291 | 83,676 | -103,952 | 3,388 | 15,836 | |||
Balance (in shares) at Dec. 31, 2013 (Previously Stated [Member]) | 13,902,478 | |||||||||||
Balance (in shares) (Adjustment [Member]) | 13,588,803 | |||||||||||
Balance (in shares) at Dec. 31, 2013 | 27,274,068 | 13,588,803 | -182,264 | |||||||||
Balance at Sep. 30, 2013 | ||||||||||||
Net Income (Loss) | -2,329 | 1,641 | ||||||||||
Net Income (Loss) (Adjustment [Member]) | 35 | -38 | ||||||||||
Balance (Adjustment [Member]) | -44,609 | -270 | ||||||||||
Balance at Dec. 31, 2013 | -20,492 | 19,224 | -291 | |||||||||
Balance (in shares) (Adjustment [Member]) | 13,588,803 | |||||||||||
Balance (in shares) at Dec. 31, 2013 | -182,264 | |||||||||||
Balance at Dec. 31, 2013 (Previously Stated [Member]) | 24,117 | 19,494 | ||||||||||
Balance (in shares) at Dec. 31, 2013 (Previously Stated [Member]) | 13,902,478 | |||||||||||
Net Income (Loss) | -2,718 | 1,648 | ||||||||||
Net Income (Loss) at Jan. 01, 2014 (Previously Stated [Member]) | -2,166 | 2,088 | ||||||||||
Net Income (Loss) (Adjustment [Member]) | -552 | -440 | ||||||||||
Balance at Mar. 31, 2014 | ||||||||||||
Balance at Dec. 31, 2013 | -20,492 | 19,224 | 44,822 | 75 | -291 | 83,676 | -103,952 | 3,388 | 15,836 | |||
Balance (in shares) at Dec. 31, 2013 | 27,274,068 | 13,588,803 | -182,264 | |||||||||
Issuance Of Convertible Preferred Stock Series C'14, net of issuance costs | 69,958 | |||||||||||
Issuance Of Convertible Preferred Stock Series C'14, net of issuance costs (in shares) | 4,880,954 | |||||||||||
Exercise of vested stock options | 77 | 1 | 76 | |||||||||
Exercise of vested stock options (in shares) | 59,150 | |||||||||||
Exercise of nonvested stock options (in shares) | 865,717 | |||||||||||
Repurchase of stock | -14,892 | -12 | -3,635 | -12 | -14,892 | |||||||
Repurchase of stock (in shares) | -1,455,065 | -181,893 | -4,923 | |||||||||
Restricted stock vested | 345 | 25 | 320 | |||||||||
Exercise of warrants | 227 | 1 | 226 | |||||||||
Exercise of warrants (in shares) | 116,923 | |||||||||||
Stock-based compensation expense | 2,042 | 2,042 | ||||||||||
Net Income (Loss) | -2,669 | 13,284 | -2,669 | 13,284 | ||||||||
Capital Infusion from Parent | 15,000 | 15,000 | ||||||||||
Transfer of Servicing Rights to Parent | -1,217 | -1,217 | ||||||||||
Balance at Dec. 31, 2014 | ($35,374) | $46,291 | $111,145 | $102 | ($303) | $86,340 | ($121,513) | $16,672 | $29,619 | |||
Balance (in shares) at Dec. 31, 2014 | 30,699,957 | 14,448,700 | -187,187 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Cash Flows from Operating Activities: | |
Net Income (Loss) | ($2,669) |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | |
Change in Fair Value of Borrower Loans | 15,868 |
Change in Fair Value of Loans Held For Sale | -73 |
Change in Fair Value of Notes | -16,391 |
Depreciation and Amortization | 2,097 |
Change in Servicing Rights | -3,256 |
Stock-Based Compensation Expense | 2,042 |
Loss on Impairment of Property and Equipment | 322 |
Accretion of Class Action Settlement Liability | 122 |
Purchase of Loans Held for Sale at Fair Value | -1,416,809 |
Proceeds From Sales of Loans Held for Sale at Fair Value | 1,411,625 |
Changes in Operating Assets and Liabilities: | |
Restricted Cash Except for those Related to Investing Activities | -26,145 |
Accounts Receivable | -2,856 |
Prepaid and Other Assets | -2,840 |
Accounts Payable and Accrued Liabilities | 11,844 |
Class Action Settlement Liability | -2,000 |
Payable to Investors | 26,219 |
Net cash provided by (used in) Operating Activities | -2,900 |
Cash Flows from Investing Activities: | |
Purchase of Borrower Loans Held at Fair Value | -177,088 |
Principal Payments of Borrower Loans Held at Fair Value | 121,082 |
Purchases of Property and Equipment | -12,267 |
Maturities of Short Term Investments | 1,271 |
Purchases of Short Term Investments | -1,274 |
Changes in Restricted Cash Related to Investing Activities | -5,081 |
Net Cash Used in Investing Activities | -73,357 |
Cash Flows from Financing Activities: | |
Proceeds from Issuance of Notes Held at Fair Value | 176,865 |
Payment of Notes Held at Fair Value | -120,909 |
Proceeds from Issuance of Convertible Preferred Stock, Net | 69,958 |
Proceeds from Early Exercise of Stock Options | 814 |
Repurchase of Restricted Stock | -30 |
Proceeds from Exercise of Vested Stock Options | 77 |
Proceeds from Exercise of Common Stock Warrants | 227 |
Repurchase of Preferred Stock | -18,527 |
Net Cash Provided by Financing Activities | 108,475 |
Proceeds from Exercise of Vested Stock Options | 77 |
Net Increase (Decrease) in Cash and Cash Equivalents | 32,218 |
Cash and Cash Equivalents at Beginning of the Year | 18,339 |
Cash and Cash Equivalents at End of the Year | 50,557 |
Supplemental Disclosure of Cash Flow Information: | |
Cash Paid for Interest | 41,053 |
Non-Cash Investing Activity- Accrual for Property and Equipment, Net | 1,550 |
Prosper Funding LLC [Member] | |
Cash Flows from Operating Activities: | |
Net Income (Loss) | 13,284 |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | |
Change in Fair Value of Borrower Loans | 15,868 |
Change in Fair Value of Loans Held For Sale | -73 |
Change in Fair Value of Notes | -16,391 |
Depreciation and Amortization | 1,331 |
Change in Servicing Rights | -3,440 |
Purchase of Loans Held for Sale at Fair Value | -1,416,809 |
Proceeds From Sales of Loans Held for Sale at Fair Value | 1,411,625 |
Changes in Operating Assets and Liabilities: | |
Restricted Cash Except for those Related to Investing Activities | -26,145 |
Other Assets | 3 |
Accounts Payable and Accrued Liabilities | 495 |
Payable to Investors | 25,538 |
Net Related Party Payable | -1,340 |
Net cash provided by (used in) Operating Activities | 3,946 |
Cash Flows from Investing Activities: | |
Purchase of Borrower Loans Held at Fair Value | -177,088 |
Principal Payments of Borrower Loans Held at Fair Value | 121,081 |
Purchases of Property and Equipment | -846 |
Maturities of Short Term Investments | -1,274 |
Purchases of Short Term Investments | 1,271 |
Changes in Restricted Cash Related to Investing Activities | -58 |
Net Cash Used in Investing Activities | -56,914 |
Cash Flows from Financing Activities: | |
Proceeds from Issuance of Notes Held at Fair Value | 176,865 |
Payment of Notes Held at Fair Value | -120,909 |
Net Cash Provided by Financing Activities | 70,956 |
Member’s Equity Capital Infusion from Parent | 15,000 |
Net Increase (Decrease) in Cash and Cash Equivalents | 17,988 |
Cash and Cash Equivalents at Beginning of the Year | 5,789 |
Cash and Cash Equivalents at End of the Year | 23,777 |
Supplemental Disclosure of Cash Flow Information: | |
Cash Paid for Interest | 41,053 |
Non-Cash Financing Activity, Distribution to Parent | $1,228 |
Organization_and_Business
Organization and Business | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization and Business | 1 | Organization and Business |
Prosper Marketplace, Inc. (“Prosper”, “PMI” or “the Company”) was incorporated in the state of Delaware on March 22, 2005. Prosper developed a peer-to-peer online credit marketplace (the “marketplace”) and prior to February 1, 2013, owned the proprietary technology that made operation of the marketplace possible. Prior to February 1, 2013, PMI also operated the marketplace, facilitated the origination of unsecured, consumer loans by WebBank (“Borrower Loans”), an FDIC-insured, Utah-chartered industrial bank, through the marketplace and issued and sold borrower payment dependent notes corresponding to those Borrower Loans. | ||
The marketplace is designed to allow investor members to invest in borrower loans in an open transparent marketplace, with the aim of allowing both investor members and borrower members to profit financially as well as socially. The Company believes marketplace lending represents a new model of consumer lending, where individuals and institutions can earn the interest spread of a traditional consumer lender but must also assume the credit risk of a traditional consumer lender. | ||
A borrower member who wishes to obtain a Borrower Loan through the marketplace must post a Borrower Loan listing, on the marketplace. Listings are allocated to one of two investor member funding channels: (i) the first channel allows investor members to commit to purchase a participating interest in a Borrower Loan which is referred to as a Note, the payments of which are dependent on the payments made on the corresponding Borrower Loan (the “Note Channel”); and (ii) the second channel allows investor members to commit to purchase 100% of a Borrower Loan directly from the Company (the “Whole Loan Channel”). | ||
As of December 31, 2014, the marketplace is open to investors in 31 states and the District of Columbia. Additionally, as of December 31, 2014 the marketplace is open to borrowers in 46 states and the District of Columbia. Currently our marketplace is not offered internationally. | ||
On February 1, 2013, PMI transferred ownership of the marketplace, including all of the rights related to the operation of the marketplace, as well as all then-outstanding Borrower Loans, to its wholly-owned subsidiary, Prosper Funding LLC (“PFL” and, collectively with PMI, the “Company” or the “Registrants”). At that same time, PFL assumed all of PMI’s obligations with respect to all then-outstanding Notes. Since February 1, 2013, all Notes issued and sold through the marketplace are issued and sold by PFL. Pursuant to a Loan Account Program Agreement between PMI and WebBank, PMI manages the operation of the marketplace, as agent of WebBank, in connection with the submission of loan applications by potential borrowers, the making of related loans by WebBank and the funding of such Borrower Loans by WebBank. On February 1, 2013, PFL entered into an Administration Agreement with PMI in its capacity as licensee, corporate administrator, loan marketplace administrator and loan and note servicer, pursuant to which PMI provides certain back office support, loan marketplace administration and loan and note servicing to PFL. | ||
PFL formed Prosper Asset Holdings LLC (“PAH”) in November 2013 as a limited liability company with the sole equity member being PFL. PAH was formed to purchase Borrower Loans directly from PFL and sell the Borrower Loans to third parties. | ||
Prosper Funding LLC [Member] | ||
Organization and Business | 1 | Organization and Business |
Prosper Funding LLC (“PFL”) was formed in the state of Delaware in February 2012 as a limited liability company with the sole equity member being Prosper Marketplace, Inc. (“PMI”). | ||
PFL was formed by PMI to hold Borrower Loans and issue Notes through the marketplace. Although PFL is consolidated with PMI for accounting and tax purposes, PFL has been organized and is operated in a manner that is intended to minimize the likelihood that it would be substantively consolidated with PMI in a bankruptcy proceeding. PFL’s intention is to minimize the likelihood that its assets would be subject to claims by PMI’s creditors if PMI were to file for bankruptcy, as well as to minimize the likelihood that PFL will become subject to bankruptcy proceedings directly. PFL seeks to achieve this by placing certain restrictions on its activities and implementing certain formal procedures designed to expressly reinforce its status as a distinct corporate entity from PMI. | ||
On January 22, 2013, PMI entered into an Asset Transfer Agreement with PFL pursuant to which PMI transferred substantially all of its remaining assets to PFL, including (i) all outstanding Notes issued by PMI under the Indenture dated June 15, 2009 between PMI and Wells Fargo Bank, as trustee, (ii) all Borrower Loans held by PMI, (iii) all lender/borrower/group leader registration agreements related to such Notes or Borrower Loans, and (iv) all documents and information related to the foregoing, effective February 1, 2013. | ||
PFL commenced operations as of February 1, 2013 when PMI transferred ownership of the marketplace, including all of the rights related to the operation of the marketplace, to PFL. Since February 1, 2013, all Notes issued and sold through the marketplace are issued, sold and serviced by PFL. Pursuant to a Loan Account Program Agreement between PMI and WebBank, PMI manages the operation of the marketplace, as agent of WebBank, in connection with the submission of Borrower Loan applications by potential borrowers, the making of related Borrower Loans by WebBank and the funding of such Borrower Loans by WebBank. Pursuant to an Administration Agreement between PFL and PMI, PMI manages all other aspects of the marketplace on behalf of PFL. | ||
A borrower member who wishes to obtain a loan through the marketplace must post a loan listing, or listing, on the marketplace. PFL allocates listings to one of two investor member funding channels: (i) the first channel allows investor members to commit to purchase Notes, the payments of which are dependent on the payments made on the corresponding Borrower Loan (the “Note Channel”); and (ii) the second channel allows investor members to commit to purchase 100% of a Borrower Loan directly from the Company (the “Whole Loan Channel”). | ||
All loans requested and obtained through the marketplace are unsecured obligations of individual borrower members with a fixed interest rate and loan terms set at three or five years as of December 31, 2014. All loans made through the marketplace are funded by WebBank, an FDIC-insured, Utah chartered industrial bank. After funding a loan, WebBank sells the loan to PFL, without recourse to WebBank, in exchange for the principal amount of the loan. WebBank does not have any obligation to purchasers of the Notes. | ||
PFL’s marketplace is designed to allow investor members to invest in Borrower Loans in an open transparent marketplace, with the aim of allowing both investor members and borrower members to profit financially as well as socially. PFL believes marketplace lending represents a new model of consumer lending, where individuals and institutions can earn the interest spread of a traditional consumer lender but must also assume the credit risk of a traditional consumer lender. | ||
A borrower member who wishes to obtain a Borrower Loan through PFL’s marketplace must post a loan listing to the marketplace. Listings are allocated to one of two investor member funding channels: (i) the Note Channel, which allows investor members to commit to purchase a Note from PFL, the payments of which are dependent on the payments made on the corresponding Borrower Loan; and (ii) the Whole Loan Channel, which allows investor members to commit to purchase Borrower Loans in their entirety directly from PFL. | ||
As of December 31, 2014, PFL’s marketplace was open to investors in 31 states and the District of Columbia. Additionally, as of December 31, 2014 PFL’s marketplace was open to borrowers in 46 states and the District of Columbia. Currently, PFL’s marketplace is not offered internationally. | ||
PFL formed Prosper Asset Holdings LLC (“PAH”) in November 2013 as a limited liability company with the sole equity member being PFL. PAH was formed to purchase Borrower Loans directly from PFL and sell the Borrower Loans to third parties. | ||
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Summary of Significant Accounting Policies | 2 | Summary of Significant Accounting Policies | |||||||||||||||
Basis of Presentation | |||||||||||||||||
The accompanying consolidated financial statements include the accounts of Prosper Marketplace Inc. and its wholly owned subsidiary Prosper Funding LLC. All intercompany balances and transactions between PFL and PMI have been eliminated in consolidation. PMI and PFL’s financial statements have been prepared in accordance with U.S generally accepted accounting principles (U.S. GAAP). | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures, including contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates, judgments and assumptions include but are not limited to the following: valuation of Loans Held for Sale, Borrower Loans and associated Notes, valuation of servicing rights, valuation allowance on deferred tax assets, stock-based compensation expense, and contingent liabilities. Actual results could differ from those estimates, and those differences could be material. | |||||||||||||||||
Certain Risks | |||||||||||||||||
In the normal course of its business, the Company encounters two significant types of risk: credit and regulatory. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, and restricted cash. The Company places cash, cash equivalents, and restricted cash with high-quality financial institutions and is exposed to credit risk in the event of default by these institutions to the extent the amount recorded on the balance sheet exceeds federally insured amounts. The Company performs periodic evaluations of the relative credit standing of these financial institutions and has not sustained any credit losses from instruments held at these financial institutions. | |||||||||||||||||
To the extent that payments on Borrower Loans (including Borrower Loans that have been sold) are not made, interest income and/or servicing income will be reduced. A series of Notes corresponding to a particular Borrower Loan is wholly dependent on the repayment of such Borrower Loan. As a result, the Company does not bear the risk on such Borrower Loan. | |||||||||||||||||
The Company is subject to various regulatory requirements. The failure to appropriately identify and address these regulatory requirements could result in certain discretionary actions by regulators that could have a material effect on the Company’s consolidated financial position and results of operations (See Note 11—Commitments and Contingencies—Securities Law Compliance). | |||||||||||||||||
Reclassifications | |||||||||||||||||
During the year ended December 31, 2014, the Company changed the presentation of its revenues in the consolidated statement of operations. A new line called “Servicing Fees, Net” was created and the servicing fees related to Borrower Loans sold directly to third parties that were previously included in interest income were reclassified to this new line. Furthermore, the “Rebates and Promotions” line was removed, with the amounts in that line reclassified to the “Servicing Fees, Net” or “Transaction Fees, Net” or “Other Revenues” lines based on the underlying transactions. Also, the “Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net” was moved into the total revenues subtotal. The Company also changed the definitions used to classify expenses. Expenses were previously classified as cost of services, compensation and benefits, marketing and advertising, depreciation and amortization, professional services, facilities and maintenance, class action settlement, loss on impairment of fixed assets and other. The revised classification approach replaces the previous classifications with origination and servicing, sales and marketing, and general and administration. The changes had no impact to the total expenses or net income. Prior period amounts have been reclassified to conform to the current presentation. Lastly, the subtotals were realigned to reflect the new presentation. Management believes these changes make the income statement more useful for the readers of the financial statements and comparable with the Company’s competitors. | |||||||||||||||||
Consolidation of Variable Interest Entities | |||||||||||||||||
The determination of whether to consolidate a variable interest entity (“VIE”) in which we have a variable interest requires a significant amount of analysis and judgment whether we are the primary beneficiary of a VIE via a controlling financial interest in the VIE. A controlling financial interest in a VIE exists if we have both the power to direct the VIE’s activities that most significantly affect the VIE’s economic performance and a potentially significant economic interest in the VIE. The determination of whether an entity is a VIE considers factors, such as (i) whether the entity’s equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support or (ii) when a holder’s equity investment at risk lacks any of the following characteristics of a controlling financial interest: the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the entity’s success, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the legal entity. | |||||||||||||||||
As a result of the nature of the retained servicing rights on the sale of Borrower Loans, we are a variable interest holder in certain special purposes entities that purchase these Borrower Loans. For all of these entities we either do not have the power to direct the activities that most significantly affect the VIE’s economic performance or we do not have a potentially significant economic interest in the VIE. In no case are we the primary beneficiary and as a result none of these entities are consolidated on the Company’s consolidated financial statements. | |||||||||||||||||
Management regularly reviews and reconsiders its previous conclusions regarding the status of an entity as a VIE and whether we are required to consolidate such VIE in the consolidated financial statements. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents include various unrestricted deposits with highly rated financial institutions in checking accounts. | |||||||||||||||||
Restricted Cash | |||||||||||||||||
Restricted cash consists primarily of cash deposits and short term certificate of deposit accounts held as collateral as required for long term leases, loan funding and servicing activities, and cash that investors or the Company has on our marketplace that has not yet been invested in loans or disbursed to the investor. | |||||||||||||||||
Short Term Investments | |||||||||||||||||
Short term investments consists of certificates of deposit with a term greater than three months but less than a year that are held as collateral as required for loan funding and servicing activities. | |||||||||||||||||
Fair Value Measurement | |||||||||||||||||
The Company adopted Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC Topic 820”), which provides a framework for measuring the fair value of assets and liabilities. ASC Topic 820 also provides guidance regarding a fair value hierarchy, which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. ASC Topic 820 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. | |||||||||||||||||
ASC Topic 820 defines fair value in terms of the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||||||
The price used to measure the fair value is not adjusted for transaction costs. Under ASC Topic 820, the fair value measurement also assumes that the transaction to sell an asset occurs in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset. The principal market is the market in which the reporting entity would sell or transfer the asset with the greatest volume and level of activity for the asset. In determining the principal market for an asset or liability under ASC Topic 820, it is assumed that the reporting entity has access to the market as of the measurement date. If no market for the asset exists or if the reporting entity does not have access to the principal market, the reporting entity should use a hypothetical market. | |||||||||||||||||
Under ASC Topic 820, assets and liabilities carried at fair value on the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value: | |||||||||||||||||
Level 1 — The valuation is based on quoted prices in active markets for identical instruments. | |||||||||||||||||
Level 2 — The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | |||||||||||||||||
Level 3 — The valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar techniques, which incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation. | |||||||||||||||||
Fair values of assets or liabilities are determined based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of quoted prices and observable inputs and to minimize the use of unobservable inputs when measuring fair value. Various valuation techniques are utilized, depending on the nature of the financial instrument, including the use of market prices for identical or similar instruments, or discounted cash flow models. When possible, active and observable market data for identical or similar financial instruments are utilized. Alternatively, fair value is determined using assumptions that management believes a market participant would use in pricing the asset or liability. | |||||||||||||||||
Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Borrower Loans, Loans Held for Sale, Accounts Receivable, Accounts Payable and Accrued Liabilities, Payable to Investors and Notes. The estimated fair values of Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short term nature. | |||||||||||||||||
The following tables present the assets and liabilities measured at fair value on a recurring basis at December 31, 2014 and 2013 (in thousands): | |||||||||||||||||
31-Dec-14 | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Inputs | Inputs | Inputs | |||||||||||||||
Assets | |||||||||||||||||
Borrower Loans | $ | — | $ | — | $ | 273,243 | $ | 273,243 | |||||||||
Restricted Cash | 76,783 | 4,517 | — | 81,300 | |||||||||||||
Short Term Investments | — | 1,274 | — | 1,274 | |||||||||||||
Loans Held for Sale | — | — | 8,463 | 8,463 | |||||||||||||
Total Assets | 76,783 | 5,791 | 281,706 | 364,280 | |||||||||||||
Liabilities | |||||||||||||||||
Notes | $ | — | $ | — | $ | 273,783 | $ | 273,783 | |||||||||
31-Dec-13 | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Inputs | Inputs | Inputs | |||||||||||||||
Assets | |||||||||||||||||
Borrower Loans | $ | — | $ | — | $ | 233,105 | $ | 233,105 | |||||||||
Restricted Cash | 49,904 | 170 | 50,074 | ||||||||||||||
Short Term Investments | — | 1,271 | — | 1,271 | |||||||||||||
Loans Held for Sale | — | — | 3,206 | 3,206 | |||||||||||||
Total Assets | 49,904 | 1,441 | 236,311 | 287,656 | |||||||||||||
Liabilities | |||||||||||||||||
Notes | $ | — | $ | — | $ | 234,218 | 234,218 | ||||||||||
As observable market prices are not available for the Borrower Loans, Loans Held for Sale and Notes, or for similar assets and liabilities, Prosper believes the Borrower Loans, Loans Held for Sale and Notes should be considered Level 3 financial instruments under ASC Topic 820. In a hypothetical transaction as of the measurement date, Prosper believes that differences in the principal marketplace in which the Borrower Loans are originated and the principal marketplace in which Prosper might offer those loans may result in differences between the originated amount of the loans and their fair value as of the transaction date. For Borrower Loans and Loans Held for Sale, the fair value is estimated using discounted cash flow methodologies based upon valuation assumptions including prepayment speeds, default rates and discount rates based on the perceived credit risk within each credit grade. | |||||||||||||||||
The obligation to pay principal and interest on any series of Notes is equal to the loan payments, if any, that are received on the corresponding Borrower Loan, net of our servicing fee which is generally 1% of the outstanding balance. The fair value election for Notes and Borrower Loans allows both the assets and the related liabilities to receive similar accounting treatment for expected losses which is consistent with the subsequent cash flows to investors that are dependent upon borrower payments. As such, the fair value of a series of Notes is approximately equal to the fair value of the corresponding Borrower Loan, adjusted for the 1.0% servicing fee and the timing of loan purchase, note issuance and borrower payments subsequently disbursed to such Note holders. As a result, the valuation of the Notes uses the same methodology and assumptions as the Borrower Loans, except that the Notes incorporate the 1% servicing fee and any differences in timing in payments. Any unrealized gains or losses on the Borrower Loans and Notes for which the fair value option has been elected is recorded as a separate line item in the statement of operations. The effective interest rate associated with a group of Notes is less than the interest rate earned on the corresponding Borrower Loan due to the 1.0% servicing fee. See Note 4 for a roll-forward and further discussion of the significant assumptions used to value Borrower Loans and Notes. | |||||||||||||||||
Borrower Loans and Notes | |||||||||||||||||
Through the Note Channel, the Company purchases Borrower Loans from WebBank then issues Notes and purchases, and holds the Borrower Loans until maturity. The obligation to repay a series of Notes funded through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans and Notes funded through the Note Channel are carried on the Company’s consolidated balance sheets as assets and liabilities, respectively. The Company has adopted the provisions of ASC Topic 825, Financial Instruments (“ASC Topic 825”). ASC Topic 825 permits companies to choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the reader of the financial statements and it allows both the Borrower Loans and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. A specific allowance account is not recorded relating to the Borrower Loans in which the Company has elected the fair value option, but rather the Company estimates the fair value of such Borrower Loans and Notes using discounted cash flow methodologies adjusted for the expected prepayment, loss and recovery rates. The Borrower Loans are not derecognized when a corresponding Note is issued as the Company maintains the ability to sell the Borrower Loans without the approval of the holders of the corresponding Notes. | |||||||||||||||||
Loan Servicing Assets and Liabilities | |||||||||||||||||
The Company records servicing assets and liabilities at their estimated fair values if servicing rights are retained when the Company sells Borrower Loans to unrelated third-party buyers. The gain or loss on a loan sale is recorded in “Other Revenue” while the fair value of the servicing rights, which is based on the degree to which the contractual loan servicing fee is above or below an estimated market servicing fee is recorded in servicing assets or liabilities. Servicing assets and liabilities are recorded in “Prepaid and Other Assets” and “Accrued Expenses and Other Liabilities,” respectively, on the consolidated balance sheets. The initial fair value of servicing assets or liabilities are amortized in proportion to and over the period of estimated servicing income or loss and are reported in “Servicing Fees” on the consolidated statement of operations. | |||||||||||||||||
The Company uses a discounted cash flow model to estimate the fair value of the loan servicing assets or liabilities which considers the contractual projected servicing fee revenue that the Company earns on the Borrower Loans, estimated market servicing fees to service such loans, prepayment rates, default rates and the current principal balances of the Borrower Loans. | |||||||||||||||||
The Company periodically assesses servicing assets accounted for using the amortization method for impairment. For purposes of measuring impairment, the servicing assets are stratified based on predominant risk characteristics of the underlying serviced Borrower Loans. These risk characteristics include loan type, interest rate and term. Impairment, if any, represents the excess of amortized cost of an individual stratum over its estimated fair value and is recognized in current period earnings and the carrying value of the assets is adjusted through a valuation allowance. | |||||||||||||||||
Loans Held for Sale | |||||||||||||||||
Loans held for sale are comprised of Borrower Loans held for short durations and are recorded at fair value. The fair value is estimated using discounted cash flow methodologies based upon a set of valuation assumptions similar to those of other Borrower Loans, which are set forth in Note 2— Fair Value Measurement. The Company has adopted the provisions of ASC Topic 825. ASC Topic 825 permits companies to choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the reader of the financial statements and it allows for the Loans Held for Sale to be measured at fair value similar to Borrower Loans and Notes. The fair value election, with respect to an item, may not be revoked once an election is made. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment consists of computer equipment, office furniture and equipment, software purchased or developed for internal use and web site development costs. Property and equipment are stated at cost, less accumulated depreciation and amortization, and are computed using the straight-line method based upon estimated useful lives of the assets. Estimated useful lives of the assets as follows: | |||||||||||||||||
Furniture and fixtures | 7 years | ||||||||||||||||
Office equipment | 5 years | ||||||||||||||||
Computers and equipment | 3 years | ||||||||||||||||
Leasehold improvements | 5-8 years | ||||||||||||||||
Software and website development costs | 1-3 years | ||||||||||||||||
Internal use software costs and website development costs are accounted for, in accordance with ASC Topic 350-40, Internal Use Software, and ASC Topic 350-50, Website Development Costs. In accordance with ASC Topic 350-40 and 350-50, the costs to develop software for the website and other internal uses are capitalized when management has authorized and committed project funding, preliminary development efforts are successfully completed, and it is probable that the project will be completed and the software will be used as intended. Capitalized software and website development costs primarily include software licenses acquired, fees paid to outside consultants, and salaries and payroll related costs for employees directly involved in the development efforts. | |||||||||||||||||
Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed. Costs incurred for upgrades and enhancements that are considered to be probable to result in additional functionality are capitalized. Capitalized costs are included in property and equipment and amortized to expense using the straight-line method over their expected lives. Software and website development assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of software and website development assets to be held and used is measured by a comparison of the carrying amount of the asset group to the future net undiscounted cash flows expected to be generated by the asset group. If such software and website development assets are considered to be impaired, the impairment to be recognized is the excess of the carrying amount over the fair value of the software and website development asset group. | |||||||||||||||||
Payable to Investors | |||||||||||||||||
Payable to investors primarily represents our obligation to investors related to cash held in for the benefit account, payments-in-process received from investors. | |||||||||||||||||
Repurchase Liability for Unvested Restricted Stock Awards | |||||||||||||||||
Under the terms of the Company’s stock option plan certain options issued to employees can be exercised before they have vested. When this occurs the Company records a liability for the unvested portion of the exercise. If the employee’s employment is terminated before all of the shares become vested the Company may repurchase the unvested shares at the original exercise price. The liability is released into equity as the shares become vested. Early exercises of options are not deemed to be substantive exercises for accounting purpose and are excluded from the basic earnings per share calculation and treated as unexercised options shares for stock compensation purposes. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
Revenue primarily results from fees and net interest income earned. Fees include transaction fees paid by WebBank on origination of Borrower Loans and servicing fees paid by investors. We also have other smaller sources of revenue reported as other revenue, this includes referral fees and gains or losses on the sale of Borrower Loans. | |||||||||||||||||
Transaction Fees | |||||||||||||||||
The Company earns a transaction fee upon the successful origination of all Borrower Loans facilitated through Prosper’s marketplace. WebBank charges the borrower an origination fee and the Company receives payments from WebBank equal to the origination fee as compensation for the loan origination activities the Company performs on behalf of WebBank. The borrower receives an amount equal to the Borrower Loan amount net of the loan origination fee. The loan origination fee is determined by the term and credit grade of the Borrower Loan, and ranges from 1.00% to 5.00% of the original principal amount of such Borrower Loan. The Company records the transaction fee net of any fees paid to WebBank. Since the Company accounts for Borrower Loans and Loans held for sale at fair value, transaction fees are not deferred but are recognized at acquisition of the Borrower Loan, and direct costs to originate Borrower Loans are recorded as expenses as incurred. | |||||||||||||||||
Servicing Fees | |||||||||||||||||
Investors in whole loans typically pay the Company a servicing fee which is currently generally set at 1% per annum of the outstanding principal balance of the corresponding loan prior to applying the current payment. The servicing fee compensates the Company for the costs incurred in servicing the related Borrower Loan, including managing payments from borrowers, payments to investors and maintaining investors’ account portfolios. The Company records servicing fees from Borrower Loan holders as a component of operating revenue when received. The amortization of servicing rights is also included in servicing fees. | |||||||||||||||||
Interest Income on Borrower Loans, and Interest Expense on Notes | |||||||||||||||||
The Company recognizes interest income on Borrower Loans funded through the Note Channel and interest expense on the corresponding Notes using the accrual method based on the stated interest rate to the extent the Company believes it to be collectable. | |||||||||||||||||
Advertising Costs | |||||||||||||||||
Advertising costs are expensed when incurred and are included in sales and marketing expense in the accompanying consolidated statements of operations. The Company incurred advertising costs of $24.1 million, and $12.7 million for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
We determine the fair value of our stock options issued to employees on the date of grant using the Black-Scholes option pricing model, which is impacted by the fair value of our common stock, as well as changes in assumptions that include, but are not limited to, the expected common stock price volatility over the term of the option awards, the expected term of the awards, risk-free interest rates and the expected dividend yield. | |||||||||||||||||
We recognize compensation expense for our stock based awards on a straight-line basis over the period during which an employee is required to provide services in exchange for the award (the vesting period of the award). Stock-based compensation expense is recognized only for those awards expected to vest. We estimate future forfeitures at the date of grant and revise the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||||||
Compensation expense for stock options issued to nonemployees is calculated using the Black-Scholes option pricing model and is recorded over the requisite service period. | |||||||||||||||||
Income Taxes | |||||||||||||||||
The asset and liability method is used to account for income taxes as codified in ASC Topic 740, Income Taxes. Under this method, deferred income tax assets and liabilities are based on the differences between the financial statement carrying values and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. | |||||||||||||||||
The Company’s policy is to include interest and penalties related to gross unrecognized tax benefits within its provision for income taxes. U.S. Federal, California and other state income tax returns are filed. The Company is currently not undergoing any income tax examinations. Due to the net operating loss, generally all tax years remain open. | |||||||||||||||||
We recognize benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. | |||||||||||||||||
Comprehensive Income | |||||||||||||||||
There is no comprehensive income (loss) other than the net income (loss) disclosed in the condensed consolidated statements of operations. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In May 2014, as part of its ongoing efforts to assist in the convergence of U.S. GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers.” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The standard will be effective for the Company in the first quarter of fiscal 2017. Early adoption is not permitted. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. | |||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management of a company to evaluate whether there is substantial doubt about the company’s ability to continue as a going concern. This ASU is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods thereafter, with early adoption permitted. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. | |||||||||||||||||
In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for periods beginning after December 15, 2015 with early adoption permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements. | |||||||||||||||||
On January 1, 2015, we elected to adopt the fair value method to measure the servicing assets and liabilities for all classes subsequent to initial recognition. ASC-860-50-35-3e allows the subsequent adoption of the fair value method at the beginning of any fiscal year. The adoption of the fair value method for a particular class is irrevocable. Prior to January 1, 2015 we measured the servicing assets and liabilities using the amortized cost method. | |||||||||||||||||
Prosper Funding LLC [Member] | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Summary of Significant Accounting Policies | 2 | Significant Accounting Policies | |||||||||||||||
Basis of Presentation | |||||||||||||||||
PFL’s consolidated financial statements include the accounts of PFL and its wholly-owned subsidiary PAH. All intercompany balances and transactions between PFL and PAH have been eliminated in consolidation. PFL’s financial statements have been prepared in accordance with U.S generally accepted accounting principles (U.S. GAAP). | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of PFL’s consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates, judgments and assumptions include but are not limited to the following: valuation of Loans Held for Sale, Borrower Loans and associated Notes, valuation of servicing rights, repurchase and indemnification obligation, valuation allowance on deferred tax assets, and contingent liabilities. PFL bases its estimates on historical experience from all Borrower Loans, and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates, and those could be material. | |||||||||||||||||
Certain Risks | |||||||||||||||||
In the normal course of its business, PFL encounters two significant types of risk: credit and regulatory. Financial instruments that potentially subject PFL to significant concentrations of credit risk consist primarily of cash, cash equivalents and restricted cash. PFL places cash, cash equivalents and restricted cash with high-quality financial institutions and is exposed to credit risk in the event of default by these institutions to the extent the amount recorded on the balance sheet exceeds federally insured amounts. PFL also performs periodic evaluations of the relative credit standing of these financial institutions and has not sustained any credit losses from instruments held at these financial institutions. | |||||||||||||||||
To the extent that Borrower Loan (including Borrower Loans that have been sold) payments are not made, servicing income will be reduced. A group of Notes corresponding to a particular Borrower Loan is wholly dependent on the repayment of such Borrower Loan. As a result, PFL does not bear the risk on such Borrower Loan. | |||||||||||||||||
PFL is subject to various regulatory requirements. The failure to appropriately identify and address these regulatory requirements could result in certain discretionary actions by regulators that could have a material effect on PFL’s financial position and results of operations. | |||||||||||||||||
Reclassifications | |||||||||||||||||
During the year ended December 31, 2014, PFL changed the presentation of its revenues in the consolidated statement of operations. A new line called “Servicing Fees, Net” was created and the servicing fees related to Borrower Loans that have been sold that were previously included in interest income were reclassified to this new line. Also, the “Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net” was moved into the total revenues subtotal. The Company also changed the definitions used to classify expenses. Expenses were previously classified as cost of services, administration fee, depreciation and amortization, professional services and other operating expenses. The revised classification approach replaces the previous classifications with servicing, administration fee –related party, and general and administration. The changes had no impact to the total expenses or net income. Prior period amounts have been reclassified to conform to the current presentation. Management believes these changes make the income statement more useful for the readers of the financial statements and comparable with the Company’s competitors. | |||||||||||||||||
Consolidation of Variable Interest Entities | |||||||||||||||||
The determination of whether to consolidate a variable interest entity (“VIE”) in which we have a variable interest requires a significant amount of analysis and judgment whether we are the primary beneficiary of a VIE via a controlling financial interest in the VIE. A controlling financial interest in a VIE exists if we have both the power to direct the VIE’s activities that most significantly affect the VIE’s economic performance and a potentially significant economic interest in the VIE. The determination of whether an entity is a VIE considers factors, such as (i) whether the entity’s equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support or (ii) when a holder’s equity investment at risk lacks any of the following characteristics of a controlling financial interest: the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the entity’s success, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the legal entity. | |||||||||||||||||
As a result of the nature of the retained servicing rights on the sale of Borrower Loans, we are a variable interest holder in certain special purposes entities that purchase these Borrower Loans. For all of these entities we either do not have the power to direct the activities that most significantly affect the VIE’s economic performance or we do not have a potentially significant economic interest in the VIE. In no case are we the primary beneficiary and as a result none of these entities are consolidated on the Company’s consolidated financial statements. | |||||||||||||||||
Management regularly reviews and reconsiders its previous conclusions regarding the status of an entity as a VIE and whether we are required to consolidate such VIE in the consolidated financial statements. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash equivalents are recorded at cost, which approximates fair value. Such deposits periodically exceed amounts insured by the FDIC. | |||||||||||||||||
Restricted Cash | |||||||||||||||||
Restricted cash consists primarily of cash deposits and short term certificates of deposit held as collateral as required for loan funding and servicing activities, and cash that investors or the Company has on our platform that has not yet been invested in loans or disbursed to the investor. | |||||||||||||||||
Short Term Investments | |||||||||||||||||
Short term investments consists of certificates of deposit with a term greater than three months but less than a year that are held as collateral as required for loan funding and servicing activities. | |||||||||||||||||
Fair Value Measurement | |||||||||||||||||
PFL has adopted Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures (“ASC topic 820”), which provides guidance measuring the fiar value of assets and liabilities. ASC Topic 820 also provides a fair value hierarchy, which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. ASC Topic 820 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. | |||||||||||||||||
ASC Topic 820 defines fair value in terms of the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||||||
The price used to measure the fair value is not adjusted for transaction costs. Under ASC Topic 820, the fair value measurement also assumes that the transaction to sell an asset occurs in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset. The principal market is the market in which the reporting entity would sell or transfer the asset with the greatest volume and level of activity for the asset. In determining the principal market for an asset or liability under ASC Topic 820, it is assumed that the reporting entity has access to the market as of the measurement date. If no market for the asset exists or if the reporting entity does not have access to the principal market, the reporting entity should use a hypothetical market. | |||||||||||||||||
Under ASC Topic 820, assets and liabilities carried at fair value in the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value: | |||||||||||||||||
Level 1 — The valuation is based on quoted prices in active markets for identical instruments. | |||||||||||||||||
Level 2 — The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | |||||||||||||||||
Level 3 — The valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar techniques, which incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation. | |||||||||||||||||
Fair values of assets or liabilities are determined based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of quoted prices and observable inputs and to minimize the use of unobservable inputs when measuring fair value. Various valuation techniques are utilized, depending on the nature of the financial instrument, including the use of market prices for identical or similar instruments, or discounted cash flow models. When possible, active and observable market data for identical or similar financial instruments are utilized. Alternatively, fair value is determined using assumptions that management believes a market participant would use in pricing the asset or liability. | |||||||||||||||||
Financial instruments consist principally of cash and cash equivalents, restricted cash, Borrower Loans, accounts payable and accrued liabilities, and Notes. The estimated fair values of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities approximate their carrying values because of their short term nature. | |||||||||||||||||
The following tables present the assets and liabilities measured at fair value on a recurring basis at December 31, 2014 and 2013: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
31-Dec-14 | Inputs | Inputs | Inputs | Fair Value | |||||||||||||
Assets | |||||||||||||||||
Borrower Loans | $ | — | $ | — | $ | 273,243 | $ | 273,243 | |||||||||
Restricted Cash | 73,103 | — | — | 73,103 | |||||||||||||
Short Term Investments | — | 1,274 | — | 1,274 | |||||||||||||
Loans Held for Sale | — | — | 8,463 | 8,463 | |||||||||||||
Total Assets | 73,103 | 1,274 | 281,706 | 356,083 | |||||||||||||
Liabilities | |||||||||||||||||
Notes | $ | — | $ | — | $ | 273,783 | $ | 273,783 | |||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
31-Dec-13 | Inputs | Inputs | Inputs | Fair Value | |||||||||||||
Assets | |||||||||||||||||
Restricted Cash | $ | 46,900 | $ | — | $ | — | $ | 46,900 | |||||||||
Short Term Investments | — | 1,271 | — | 1,271 | |||||||||||||
Borrower Loans | — | — | 233,104 | 233,104 | |||||||||||||
Loans Held for Sale | — | — | 3,206 | 3,206 | |||||||||||||
Total Assets | 46,900 | 1,271 | 236,310 | 284,481 | |||||||||||||
Liabilities | |||||||||||||||||
Notes | $ | — | $ | — | $ | 234,218 | $ | 234,218 | |||||||||
As observable market prices are not available for the Borrower Loans, Loans Held for Sale and Notes, or for similar assets and liabilities, PFL believes the Borrower Loans, Loans Held for Sale and Notes should be considered Level 3 financial instruments under ASC Topic 820. In a hypothetical transaction as of the measurement date, PFL believes that differences in the principal marketplace in which the Borrower Loans are originated and the principal marketplace in which PFL might offer those loans may result in differences between the originated amount of the loans and their fair value as of the transaction date. For Borrower Loans and Loans Held for Sale, the fair value is estimated using discounted cash flow methodologies based upon valuation assumptions including prepayment speeds, default rates and discount rates based on the perceived credit risk within each credit grade. | |||||||||||||||||
The obligation to pay principal and interest on any Note is equal to the loan payments, if any, that are received on the corresponding Borrower Loan, net of our servicing fee which is generally 1.0%. The fair value election for Notes and Borrower Loans allows both the assets and the related liabilities to receive similar accounting treatment for expected losses which is consistent with the subsequent cash flows to lenders that are dependent upon borrower payments. As such, the fair value of a group of Notes is approximately equal to the fair value of the corresponding Borrower Loan, adjusted for the 1.0% servicing fee and the timing of borrower payments subsequently disbursed to such Note holders. As a result, the valuation of the Notes uses the same methodology and assumptions as the Borrower Loans, except that the Notes incorporates the 1% servicing fee and any differences in timing in payments. Any unrealized gains or losses on the Borrower Loans and Notes for which the fair value option has been elected is recorded as a separate line item in the statement of operations. The effective interest rate associated with a group of Notes is less than the interest rate earned on the corresponding Borrower Loan due to the 1.0% servicing fee. See Note 4 for a roll-forward and further discussion of the significant assumptions used to value Borrower Loans and Notes. | |||||||||||||||||
Borrower Loans and Notes | |||||||||||||||||
Through the Note Channel, the Company purchases Borrower Loans from WebBank then issues Notes and holds the Borrower Loans until maturity. The obligation to repay a series of Notes funded through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans and Notes funded through the Note Channel are carried on the Company’s consolidated balance sheets as assets and liabilities, respectively. The Company has adopted the provisions of ASC Topic 825, Financial Instruments (“ASC Topic 825”). ASC Topic 825 permits companies to choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the reader of the financial statements and it allows both the Borrower Loans and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. A specific allowance account is not recorded relating to the Borrower Loans in which the Company has elected the fair value option, but rather the Company estimates the fair value of such Borrower Loans and Notes using discounted cash flow methodologies adjusted for the expected payment, loss and recovery rates. The Borrower Loans are not derecognized when a corresponding Note is issued as the Company maintains the ability to sell the Borrower Loans without the approval of the holders in the corresponding Notes. | |||||||||||||||||
Loan Servicing Assets and Liabilities | |||||||||||||||||
The Company records servicing assets and liabilities at their estimated fair values if servicing rights are retained when the Company sells Borrower Loans to unrelated third-party buyers. The gain or loss on a loan sale is recorded in “Other Revenue” while the fair value of the servicing rights, which is based on the degree to which the contractual loan servicing fee is above or below an estimated market loan servicing fee is recorded in servicing assets or liabilities. Servicing assets and liabilities are recorded in “Prepaid and Other Assets” and “Accrued Expenses and Other Liabilities,” respectively, on the consolidated balance sheets. The initial fair value of servicing assets or liabilities are amortized in proportion to and over the period of estimated servicing income or loss and are reported in “Servicing Fees” on the consolidated statement of operations. | |||||||||||||||||
The Company uses a discounted cash flow model to estimate the fair value of the loan servicing assets or liabilities which considers the contractual projected servicing fee revenue that the Company earns on the loans, estimated market servicing fees to service such loans, prepayment rates, default rates and the current principal balances of the loans. | |||||||||||||||||
The Company periodically assesses servicing assets accounted for using the amortization method for impairment. For purposes of measuring impairment, the servicing assets are stratified based on predominant risk characteristics of the underlying serviced loans. These risk characteristics include loan type, interest rate and term. Impairment, if any, represents the excess of amortized cost of an individual stratum over its estimated fair value and is recognized in current period earnings and the carrying value of the assets is adjusted through a valuation allowance. | |||||||||||||||||
Loans Held for Sale | |||||||||||||||||
Loans held for sale are primarily comprised of Borrower Loans held for short durations and are recorded at fair value. The fair value is estimated using discounted cash flow methodologies based upon a set of valuation assumptions similar to those of other Borrower Loans, which are set forth in Note 2— Fair Value Measurement. The Company has adopted the provisions of ASC Topic 825. ASC Topic 825 permits companies to choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the reader of the financial statements and it allows for the Loans Held for Sale to be measured at fair value similar to Borrower Loans and Notes. The fair value election, with respect to an item, may not be revoked once an election is made. | |||||||||||||||||
Internal Use Software and Website Development | |||||||||||||||||
PFL accounts for internal use software costs, including website development costs, in accordance with ASC Topic 350-40, Internal Use Software and ASC Topic 350-50, Website Development Costs. In accordance with ASC Topic 350-40 and 350-50, the costs to develop software for the website and other internal uses are capitalized when management has authorized and committed project funding, preliminary development efforts are successfully completed, and it is probable that the project will be completed and the software will be used as intended. Capitalized software and website development costs primarily include software licenses acquired, fees paid to outside consultants, and salaries and payroll related costs for employees directly involved in the development efforts. | |||||||||||||||||
Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed. Costs incurred for upgrades and enhancements that are considered to be probable to result in additional functionality are capitalized. Capitalized costs are included in property and equipment and amortized to expense using the straight-line method over their expected lives which is generally one to three years. PFL evaluates its software assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of software and website development assets to be held and used is measured by a comparison of the carrying amount of the asset to the future net undiscounted cash flows expected to be generated by the asset. If such software and website development assets are considered to be impaired, the impairment to be recognized is the excess of the carrying amount over the fair value of the software and website development asset group. | |||||||||||||||||
Payable to Investors | |||||||||||||||||
Payable to investors primarily represents our obligation to investors related to cash held in the “for the benefit” or FBO account and payments-in-process received from investors. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
Revenue primarily results from fees and net interest earned. Fees consist of related part administrative fees and servicing fees paid by investors. We also have other smaller sources of revenue reported as other revenue this includes the gains or losses on whole loan sales. | |||||||||||||||||
Administration Agreement License Fees | |||||||||||||||||
PFL primarily generates revenues through license fees it earns through an Administration Agreement with PMI. The Administration Agreement contains a license granted by PFL to PMI that entitles PMI to use the platform for and in relation to: (i) PMI’s performance of its duties and obligations under the Administration Agreement relating to corporate administration, loan platform services, loan and note servicing and marketing, and (ii) PMI’s performance of its duties and obligations to WebBank in relation to loan origination and funding. The license fees are based on the number of listings that are posted to the platform. | |||||||||||||||||
Service Fees | |||||||||||||||||
Investors in whole loans typically pay the Company a servicing fee which is currently generally set at 1% per annum of the outstanding principal balance of the corresponding loan prior to applying the current payment. The servicing fee compensates the Company for the costs we incur in servicing the related loan, including managing payments from borrowers, payments to investors and maintaining investors’ account portfolios. Prosper records servicing fees paid by borrower loan holders as a component of operating revenue when received. The amortization of servicing rights is also included in servicing fees. | |||||||||||||||||
Interest Income on Borrower Loans and Interest Expense on Notes | |||||||||||||||||
PFL recognizes interest income on Borrower Loans funded through the Note Channel and interest expense on the corresponding Notes using the accrual method based on the stated interest rate to the extent PFL believes it to be collectable. | |||||||||||||||||
Comprehensive Income | |||||||||||||||||
There is no comprehensive income (loss) other than the net income (loss) disclosed in the condensed consolidated statements of operations. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In May 2014, as part of its ongoing efforts to assist in the convergence of U.S. GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers.” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The standard will be effective for the Company in the first quarter of fiscal 2017. Early adoption is not permitted. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. | |||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management of a company to evaluate whether there is substantial doubt about the company’s ability to continue as a going concern. This ASU is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods thereafter, with early adoption permitted. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. | |||||||||||||||||
In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for periods beginning after December 15, 2015 with early adoption permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements. | |||||||||||||||||
On January 1, 2015, we elected to adopt the fair value method to measure the servicing assets and liabilities for all classes subsequent to initial recognition. ASC-860-50-35-3e allows the subsequent adoption of the fair value method at the beginning of any fiscal year. The adoption of the fair value method for a particular class is irrevocable. Prior to January 1, 2015 we measured the servicing assets and liabilities using the amortized cost method. | |||||||||||||||||
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property and Equipment, Net | 3 | Property and Equipment, Net | |||||||
Property and equipment consist of the following (in thousand)s: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Property and equipment: | |||||||||
Computer equipment | $ | 3,824 | $ | 2,115 | |||||
Internal-use software and website development costs | 4,486 | 3,592 | |||||||
Office equipment and furniture | 1,904 | 39 | |||||||
Leasehold improvements | 5,274 | — | |||||||
Assets not yet placed in service | 4,361 | 651 | |||||||
Property and equipment | 19,849 | 6,397 | |||||||
Less accumulated depreciation and amortization | (5,425 | ) | (3,371 | ) | |||||
Total property and equipment, net | $ | 14,424 | $ | 3,026 | |||||
Depreciation expense for 2014 and 2013 was $2,097 thousand and $1,094 thousand, respectively. The Company capitalized internal-use software and website development costs in the amount of $846 thousand and $1,561 thousand for the years ended December 31, 2014 and 2013, respectively. The Company recorded internal-use software and website development impairment charges $322 thousand and $299 thousand for the years ended December 31, 2014 and 2013 respectively, as a result of our decision to discontinue several software and website development projects. | |||||||||
Prosper Funding LLC [Member] | |||||||||
Property and Equipment, Net | 3. Property and Equipment | ||||||||
Property and equipment consist of the following (in thousands) : | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Property and equipment: | |||||||||
Internal-use software and web site development costs | $ | 4,042 | $ | 3,217 | |||||
Property and equipment | 4,042 | 3,217 | |||||||
Less accumulated depreciation and amortization | (2,917 | ) | (1,607 | ) | |||||
Total property and equipment, net | $ | 1,125 | $ | 1,610 | |||||
Depreciation expense for 2014 and 2013 was $1,314 thousands and $nil, respectively. PFL capitalized internal-use software costs in the amount of $1,798 thousands and $671 thousands for the years ended December 31, 2014 and 2013, respectively. The Company recorded internal software impairment charges $17 thousands and $nil for the years ended December 31, 2014 and 2013 respectively, as a result of our decision to discontinue several software development projects. |
Borrower_Loans_Loans_Held_for_
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Borrower Loans, Loans Held for Sale and Notes Held at Fair Value | 4 | Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | |||||||||||||||||||||||
The fair value of the Borrower Loans and Notes funded through the Note Channel is estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The primary cash flow assumptions used to value such Borrower Loans and Notes include default rates derived from historical performance and discount rates applied to each credit grade based on the perceived credit risk of each credit grade. The obligation to pay principal and interest on any series of Notes is equal to the loan payments, if any, received on the corresponding Borrower Loan, net of the servicing fee. As such, the fair value of the Notes is approximately equal to the fair value of the Borrower Loans funded through the Note Channel, adjusted for the servicing fee and the timing of borrower payments subsequently disbursed to the Note holders. The effective interest rate associated with a series of Notes will be less than the interest rate earned on the corresponding Borrower Loan due to the servicing fee. | |||||||||||||||||||||||||
At December 31, 2014 and December 31, 2013, Borrower Loans, Notes and Loans Held for Sale (in thousands) were: | |||||||||||||||||||||||||
Borrower Loans | Notes | Loans Held for Sale | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Aggregate principal balance | $ | 268,598 | $ | 228,184 | $ | (272,269 | ) | $ | (232,093 | ) | $ | 8,295 | $ | 3,157 | |||||||||||
outstanding | |||||||||||||||||||||||||
Fair value adjustments | 4,645 | 4,921 | (1,514 | ) | (2,125 | ) | 168 | 49 | |||||||||||||||||
Fair value | $ | 273,243 | $ | 233,105 | $ | (273,783 | ) | $ | (234,218 | ) | $ | 8,463 | $ | 3,206 | |||||||||||
At December 31, 2013, Loans Held for Sale, Borrower Loans and underlying Notes had original terms between 12 months and 60 months, had monthly payments with fixed interest rates ranging from 5.65% to 35% and had various maturity dates through December 2018. At December 31, 2014, outstanding Borrower Loans and the underlying Notes had original maturities between 36 and 60 months, had monthly payments with fixed interest rates ranging from 5.77% to 33.04% and had various maturity dates through December 2019. | |||||||||||||||||||||||||
Key economic assumptions and the sensitivity of the current fair value to immediate adverse changes in those assumptions at December 31, 2014 for Loans Held for Sale, Borrower Loans and Notes funded through the Note Channel are presented in the following table (in thousands): | |||||||||||||||||||||||||
Borrower Loans / Loans Held for Sale | Notes | ||||||||||||||||||||||||
Discount rate assumption: | 5.25 | % | * | 5.25 | % | * | |||||||||||||||||||
Resulting fair value increase/(decrease) from: | |||||||||||||||||||||||||
100 basis point increase | $ | 278,212 | $ | 270,672 | |||||||||||||||||||||
200 basis point increase | 275,108 | 267,646 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point decrease | $ | 284,683 | $ | 276,983 | |||||||||||||||||||||
200 basis point decrease | 288,059 | 280,274 | |||||||||||||||||||||||
Default rate assumption: | 12.06 | % | * | 12.06 | % | * | |||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
Applying a 0.8 multiplier to default rate | $ | 288,507 | $ | 280,696 | |||||||||||||||||||||
Applying a 0.9 multiplier to default rate | 284,968 | 277,253 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
Applying a 1.1 multiplier to default rate | $ | 277,881 | $ | 270,357 | |||||||||||||||||||||
Applying a 1.2 multiplier to default rate | 274,443 | 267,012 | |||||||||||||||||||||||
* Represents weighted average assumptions considering all credit grades. | |||||||||||||||||||||||||
The changes in Level 3 assets measured at fair value on a recurring basis are as follows (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Borrower | Notes | Loans Held | Total | ||||||||||||||||||||||
Loans | for Sale | ||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 163,861 | $ | (164,840 | ) | $ | — | $ | (979 | ) | |||||||||||||||
Purchase of Loans/Issuance of Notes | 169,859 | (170,586 | ) | 184,807 | 184,080 | ||||||||||||||||||||
Principal repayments | (90,054 | ) | 89,681 | — | (373 | ) | |||||||||||||||||||
Borrower loans sold to third parties | — | — | (181,656 | ) | (181,656 | ) | |||||||||||||||||||
Change in fair value | (10,561 | ) | 11,527 | 55 | 1,021 | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 233,105 | $ | (234,218 | ) | $ | 3,206 | $ | 2,093 | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Borrower | Notes | Loans Held | Total | ||||||||||||||||||||||
Loans | for Sale | ||||||||||||||||||||||||
Balance at January 1, 2014 | $ | 233,105 | $ | (234,218 | ) | $ | 3,206 | $ | 2,093 | ||||||||||||||||
Purchase of Loans/Issuance of Notes | 177,088 | (176,865 | ) | 1,416,809 | 1,417,032 | ||||||||||||||||||||
Principal repayments | (121,082 | ) | 120,909 | — | (173 | ) | |||||||||||||||||||
Borrower loans sold to third parties | — | — | (1,411,625 | ) | (1,411,625 | ) | |||||||||||||||||||
Change in fair value | (15,868 | ) | 16,391 | 73 | 596 | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 273,243 | $ | (273,783 | ) | $ | 8,463 | $ | 7,923 | ||||||||||||||||
Changes in fair value of Borrower Loans include an increase in accrued interest receivable of $0.1 million and $0.4 million for the years ending December 31, 2014 and 2013 respectively. Changes in fair values of Notes the increase in interest payable represents $0.2 million and $0.05 million for the years ending December 31, 2014 and 2013 respectively. The changes in fair value would directly impact the change in fair value on Borrower Loans, Loans held for sale and Notes in the condensed consolidated statements of operations. Approximately $16.3 million and $15.9 million represents the aggregate adverse fair value adjustments that was recorded to charge off Borrower Loans during the years ending December 31, 2014 and 2013 respectively. | |||||||||||||||||||||||||
As December 31, 2014 the Borrower Loans that were 90 days or more delinquent, had an aggregate principal amount of $1.7 million and a fair value of $0.6 million. As December 31, 2013 the Borrower Loans that were 90 days or more delinquent, had an aggregate principal amount of $1.9 million and a fair value of $0.7 million. We place loans on non-accrual status when they are over 120 days due. As of December 31, 2014 and 2013, Borrower Loans in non-accrual status had a fair value of $nil. | |||||||||||||||||||||||||
Prosper Funding LLC [Member] | |||||||||||||||||||||||||
Borrower Loans, Loans Held for Sale and Notes Held at Fair Value | 4 | Borrower Loans, Loans Held For Sale and Notes Held at Fair Value | |||||||||||||||||||||||
The fair value of the Borrower Loans and Notes funded through the Note Channel is estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The primary cash flow assumptions used to value such Borrower Loans and Notes include default rates derived from historical performance and discount rates applied to each credit grade based on the perceived credit risk of each credit grade. The obligation to pay principal and interest on any series of Notes is equal to the loan payments, if any, received on the corresponding Borrower Loan, net of the servicing fee. As such, the fair value of the Notes is approximately equal to the fair value of the Borrower Loans funded through the Note Channel, adjusted for the servicing fee and the timing of borrower payments subsequently disbursed to the Note holders. The effective interest rate associated with a series of Notes will be less than the interest rate earned on the corresponding Borrower Loan due to the servicing fee. | |||||||||||||||||||||||||
At December 31, 2014 and December 31, 2013, borrower loans, notes and loans held for sale (in thousands) were: | |||||||||||||||||||||||||
Borrower Loans | Notes | Loans Held for Sale | |||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-14 | 31-Dec-13 | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Aggregate principal balance | $ | 268,598 | $ | 228,183 | $ | (272,269 | ) | $ | (232,093 | ) | $ | 8,295 | $ | 3,157 | |||||||||||
outstanding | |||||||||||||||||||||||||
Fair value adjustments | 4,645 | 4,921 | (1,514 | ) | (2,125 | ) | 168 | 49 | |||||||||||||||||
Fair value | $ | 273,243 | $ | 233,104 | $ | (273,783 | ) | $ | (234,218 | ) | $ | 8,463 | $ | 3,206 | |||||||||||
At December 31, 2013, loans underlying notes and certificates had original terms between 12 months and 60 months, had monthly payments with fixed interest rates ranging from 5.65% to 35% and had various maturity dates through December 2018. At December 31, 2014, outstanding loans underlying notes and certificates had original maturities between 36 and 60 months, had monthly payments with fixed interest rates ranging from 5.77% to 33.04% and had various maturity dates through December 2019. | |||||||||||||||||||||||||
Key economic assumptions and the sensitivity of the current fair value to immediate adverse changes in those assumptions at December 31, 2014 for Borrower Loans and Notes funded through the Note Channel are presented in the following table (in thousands): | |||||||||||||||||||||||||
Borrower | Notes | ||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Discount rate assumption: | 5.25 | % | * | 5.25 | % | * | |||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point increase | $ | 278,212 | $ | 270,672 | |||||||||||||||||||||
200 basis point increase | 275,108 | 267,646 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point decrease | $ | 284,683 | $ | 276,983 | |||||||||||||||||||||
200 basis point decrease | 288,059 | 280,274 | |||||||||||||||||||||||
Default rate assumption: | 12.06 | % | * | 12.06 | % | * | |||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
Applying a 0.8 multiplier to default rate | $ | 288,507 | $ | 280,696 | |||||||||||||||||||||
Applying a 0.9 multiplier to default rate | 284,968 | 277,253 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
Applying a 1.1 multiplier to default rate | $ | 277,881 | $ | 270,357 | |||||||||||||||||||||
Applying a 1.2 multiplier to default rate | 274,443 | 267,012 | |||||||||||||||||||||||
* Represents weighted average assumptions considering all credit grades. | |||||||||||||||||||||||||
The changes in Level 3 assets measured at fair value on a recurring basis are as follows (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Held for | |||||||||||||||||||||||||
Borrower Loans | Notes | Sale | Total | ||||||||||||||||||||||
Balance at January 1, 2013 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Assets transferred on February 1, 2013 | 167,376 | (167,758 | ) | — | (382 | ) | |||||||||||||||||||
Originations | 160,037 | (160,764 | ) | 184,807 | 184,080 | ||||||||||||||||||||
Principal repayments | (83,677 | ) | 82,924 | — | (753 | ) | |||||||||||||||||||
Borrower loans sold to third parties | — | — | (181,645 | ) | (181,645 | ) | |||||||||||||||||||
Change in fair value | (10,632 | ) | 11,380 | 44 | 792 | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 233,104 | $ | (234,218 | ) | $ | 3,206 | $ | 2,092 | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Held for | |||||||||||||||||||||||||
Borrower Loans | Notes | Sale | Total | ||||||||||||||||||||||
Balance at January 1, 2014 | $ | 233,104 | $ | (234,218 | ) | $ | 3,206 | $ | 2,092 | ||||||||||||||||
Originations | 177,088 | (176,865 | ) | 1,416,809 | 1,417,032 | ||||||||||||||||||||
Principal repayments | (121,081 | ) | 120,909 | — | (172 | ) | |||||||||||||||||||
Borrower loans sold to third parties | — | — | (1,411,625 | ) | (1,411,625 | ) | |||||||||||||||||||
Change in fair value | (15,868 | ) | 16,391 | 73 | 596 | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 273,243 | $ | (273,783 | ) | $ | 8,463 | $ | 7,923 | ||||||||||||||||
Of the change in fair values for Borrower Loans the increase in interest receivable represents $0.1 million and $0.3 million for the years ending December 31, 2014 and 2013 respectively. Of the change in fair values for Notes the increase in interest payable represents $0.2 million and $0.05 million for the years ending December 31, 2014 and 2013 respectively. The changes in fair value would directly impact the change in fair value on Borrower Loans, Loans held for sale, and Notes in the consolidated statements of operations. $16.3 million and $15.8 million in aggregate adverse fair value adjustments were recorded to charge off loans during the years ending December 31, 2014 and 2013 respectively. | |||||||||||||||||||||||||
As December 31, 2014 the Borrower Loans that were 90 days or more delinquent, had an aggregate principal amount of $1.5 million and a fair value of $0.14 million. As December 31, 2013 the Borrower Loans that were 90 days or more delinquent, had an aggregate principal amount of $1.9 million and a fair value of $0.7 million. As of December 31, 2014 and 2013, Borrower Loans in non-accrual status had a fair value of $nil. |
Loan_Servicing_Assets_and_Liab
Loan Servicing Assets and Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Loan Servicing Assets and Liabilities | 5 | Loan Servicing Assets and Liabilities | |||||||
The Company initially records servicing assets and liabilities at their estimated fair values when the Company sells Borrower loans in their entirety to unrelated third-party buyers. The initial fair value of such servicing assets or liabilities is amortized in proportion to and over the period of estimated servicing income or loss. The total gains recognized on the sale of such Borrower Loans were $4.0M and $0.3 million for the years ended December 31, 2014 and 2013 respectively. For the years ended December 31, 2014 and 2013 respectively no impairment was recorded. | |||||||||
At December 31, 2014, Borrower Loans that were facilitated and subsequently sold to unrelated third parties, but for which we retained servicing rights had a total outstanding principle balance of $1,358 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and maturity dates through December 2019. At December 31, 2013, Borrower Loans that were facilitated and subsequently sold but for which we retained servicing rights had a total outstanding principle balance of $170.2 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and maturity dates through December 2018. | |||||||||
Fair value | |||||||||
Discounted cash flow – Discounted cash flow valuation techniques generally consist of developing an estimate of future cash flows that are expected to occur over the life of a financial instrument and then discounting those cash flows at a rate of return that results in the fair value amount. | |||||||||
Significant unobservable inputs presented in the table below are those that the Company considers significant to the estimated fair values of the Level 3 servicing assets and liabilities. The following is a description of the significant unobservable inputs provided in the table. Prepayment of the loans does not materially change the fair value of servicing assets and liability. | |||||||||
Market servicing rate – The Company estimates adequate servicing compensation rates of what a market participant would earn to service the Borrower Loans that the Company sells to third parties. This rate is calculated on the outstanding principle balance on a per annum basis. The Company estimated these market servicing rates based on observable market rates for other loan types in the industry and bids from subservicing providers, adjusted for the unique loan attributes that are present in the specific loans that the Company sells and services and information from a backup service provider. | |||||||||
Discount rate – The discount rate is a rate of return used to discount future expected cash flows to arrive at a present value, which represents the fair value of the loan servicing rights. We used a range of discount rates for the servicing assets and liabilities based on comparable observed valuations of similar assets and publicly available disclosures related to servicing valuations, with comparability adjustments made to account for differences with the Company’s servicing assets. | |||||||||
Default Rate – The default rate presented is an annualized, average estimate considering all Borrower Loan categories, and represents an aggregate of conditional default rate curves for each credit grade or Borrower Loan category. Each point on a particular Borrower Loan category’s curve represents the percentage of principal expected to default per period based on the term and age of the underlying Borrower Loans. The assumption regarding defaults directly reduces servicing revenues because the amount of servicing revenues received is based on the amount of outstanding principal each period. In addition, defaults also reduce the expected terms of the Borrower Loans, which are used to project future servicing revenues. | |||||||||
Significant Unobservable Inputs | |||||||||
The following table presents quantitative information about the significant unobservable inputs used for our servicing asset/liability fair value measurements at December 31, 2014 and December 31, 2013: | |||||||||
Range | |||||||||
Unobservable Input | December 31, 2014 | December 31, 2013 | |||||||
Discount rate | 15% - 25% | 15% - 25% | |||||||
Default rate | 2.62% - 26.32% | 1.73% - 19.75% | |||||||
Market servicing rate | 0.625% -0.70% | 0.70% | |||||||
Loan Servicing Asset and Liabilities Activity: | |||||||||
The following tables present additional information about Level 3 servicing assets and liabilities being amortized for the year ended December 31, 2014 and 2013 (in thousands). | |||||||||
Servicing | Servicing | ||||||||
Assets | Liabilities | ||||||||
Amortized cost at January 1, 2013 | $ | — | $ | — | |||||
Additions | 496 | 177 | |||||||
Less: Amortization | (36 | ) | (10 | ) | |||||
Amortized cost at December 31, 2013 | $ | 460 | $ | 167 | |||||
Additions | 4,700 | 662 | |||||||
Less: Amortization | (997 | ) | (205 | ) | |||||
Amortized cost at December 31, 2014 | $ | 4,163 | $ | 624 | |||||
Fair Value at December 31, 2014 | $ | 4,708 | $ | 595 | |||||
Servicing Asset and Liability Fair Value Input Sensitivity: | |||||||||
The table below shows the estimated impact on our estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of December 31, 2014 (in thousands, except percentages). | |||||||||
Servicing | Servicing | ||||||||
Assets | Liabilities | ||||||||
Weighted average market servicing rate assumptions | 0.625 | % | 0.625 | % | |||||
Increase (decrease) in fair value | |||||||||
Market servicing rate increase to 0.65% | $ | (348 | ) | $ | 59 | ||||
Market servicing rate decrease to 0.60% | $ | 348 | $ | (59 | ) | ||||
Weighted average default assumptions | 13 | % | 13 | % | |||||
Increase (decrease) in fair value | |||||||||
Applying a 1.1 multiplier to default rate | $ | (88 | ) | $ | 1 | ||||
Applying a 0.9 multiplier to default rate | $ | 89 | $ | (1 | ) | ||||
Prosper Funding LLC [Member] | |||||||||
Loan Servicing Assets and Liabilities | 5 | Loan Servicing Assets and Liabilities | |||||||
The Company initially records servicing assets and liabilities at their estimated fair values when the Company sells whole loans to unrelated third-party whole loan buyers. The initial fair value of such servicing assets or liabilities is amortized in proportion to and over the period of estimated servicing income or loss. The total gains recognized on the sale of the whole loans were $4.0 million and $0.3 million for the years ended December 31, 2014 and 2013 respectively. For the years ended December 31, 2014 and 2013 respectively no impairment was recorded. | |||||||||
At December 31, 2014, loans that were facilitated and subsequently sold but for which we retained servicing rights had a total outstanding principle balance of $1,045 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and Maturity dates through December 2019. At December 31, 2013, loans that were facilitated and subsequently sold but for which we retained servicing rights had a total outstanding principle balance of $159.8 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and Maturity dates through December 2018. | |||||||||
Fair value | |||||||||
Discounted cash flow – Discounted cash flow valuation techniques generally consist of developing an estimate of future cash flows that are expected to occur over the life of a financial instrument and then discounting those cash flows at a rate of return that results in the fair value amount. | |||||||||
Significant unobservable inputs presented in the table below are those that the Company considers significant to the estimated fair values of the Level 3 servicing assets and liabilities. The following is a description of the significant unobservable inputs provided in the table. Prepayment of the loans does not materially change the fair value of servicing assets and liability. | |||||||||
Market servicing rate – The Company estimates adequate servicing compensation rates of what a market participant would earn to service the loans that the Company sells to third parties. This rate is calculated on the outstanding principle balance on a per annum basis. The Company estimated these market servicing rates based on observable market rates for other loan types in the industry and bids from subservicing providers, adjusted for the unique loan attributes that are present in the specific loans that the Company sells and services and information from a backup service provider. | |||||||||
Discount rate – The discount rate is a rate of return used to discount future expected cash flows to arrive at a present value, which represents the fair value of the loan servicing rights. We used a range of discount rates for the servicing assets and liabilities based on comparable observed valuations of similar assets and publicly available disclosures related to servicing valuations, with comparability adjustments made to account for differences with the Company’s servicing assets. | |||||||||
Default Rate – The default rate presented is an annualized, average estimate considering all loan categories, and represents an aggregate of conditional default rate curves for each credit grade or loan category. Each point on a particular loan category’s curve represents the percentage of principal expected to default per period based on the term and age of the underlying loans. The assumption regarding defaults directly reduces servicing revenues because the amount of servicing revenues received is based on the amount of outstanding principal each period. In addition, defaults also reduce the expected terms of the loans, which are used to project future servicing revenues. | |||||||||
Significant Unobservable Inputs | |||||||||
The following table presents quantitative information about the significant unobservable inputs used for our servicing asset/liability fair value measurements at December 31, 2014 and December 31, 2013: | |||||||||
Range | |||||||||
Unobservable Input | 31-Dec-14 | 31-Dec-13 | |||||||
Discount rate | 15% - 25% | 15% - 25% | |||||||
Default rate | 2.62% - 26.32% | 1.73% - 19.75% | |||||||
Market servicing rate | 0.625% -0.70% | 0.70% | |||||||
Loan Servicing Assets and Liabilities Activity: | |||||||||
The following tables present additional information about Level 3 servicing assets and liabilities being amortized for the years ended December 31, 2014 and 2013 (in thousands). | |||||||||
Servicing | Servicing | ||||||||
Assets | Liabilities | ||||||||
Amortized cost at January 1, 2013 | $ | — | $ | — | |||||
Additions | 496 | 177 | |||||||
Less: Transfers to PMI | (24 | ) | |||||||
Less: Amortization | (36 | ) | (10 | ) | |||||
Amortized cost at December 31, 2013 | $ | 436 | $ | 167 | |||||
Additions | 4,700 | 662 | |||||||
Less: Transfers to PMI | (1,221 | ) | |||||||
Less: Amortization | (799 | ) | (205 | ) | |||||
Amortized cost at December 31, 2014 | $ | 3,116 | $ | 624 | |||||
Fair Value at December 31, 2014 | $ | 3,515 | $ | 595 | |||||
Servicing Asset and Liability Fair Value Input Sensitivity: | |||||||||
The table below shows the estimated impact on our estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of December 31, 2014 (in thousands, except percentages). | |||||||||
Servicing | Servicing | ||||||||
Assets | Liabilities | ||||||||
Weighted average market servicing rate assumptions | 0.625 | % | 0.625 | % | |||||
Increase (decrease) in fair value | |||||||||
Servicing rate increase to 0.65% | $ | (260 | ) | $ | 59 | ||||
Servicing rate decrease to 0.60% | $ | 260 | $ | (59 | ) | ||||
Weighted average default assumptions | 10 | % | 10 | % | |||||
Increase (decrease) in fair value | |||||||||
Applying a 1.1 multiplier to default rate | $ | (66 | ) | $ | 1 | ||||
Applying a 0.9 multiplier to default rate | $ | 66 | $ | (1 | ) | ||||
Net_Loss_Per_Share
Net Loss Per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Net Loss Per Share | 6 | Net Loss Per Share | |||||||
Prosper computes net loss per share in accordance with ASC Topic 260, Earnings Per Share (“ASC Topic 260”). Under ASC Topic 260, basic net loss per share is computed by dividing net loss per share available to common stockholders by the weighted average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable. The weighted average number of shares and the loss per share reflect a 10-for-1 reverse stock split effected by the Company on October 29, 2013. | |||||||||
We compute Earnings per Share (“EPS”) using the two-class method. The two-class method allocates earnings that otherwise would have been available to common shareholders to holders of participating securities. We consider all series of our convertible preferred stock to be participating securities due to their rights to participate in dividends with common stock. As such, earnings allocated to these participating securities, which include participation rights in undistributed earnings, are subtracted from net income to determine total undistributed earnings to be allocated to common stockholders. All participating securities are excluded from basic weighted-average common shares outstanding. Prior to any conversion to common shares, each series of the Company’s convertible preferred stock was entitled to participate on an if converted basis in distributions, when and if declared by the board of directors, that were made to common stockholders and as a result these shares were considered participating securities. During the year ended December 31, 2014 and 2013, certain shares issued as a result of the early exercise of stock options, which are subject to a repurchase right by the Company, were entitled to receive non-forfeitable dividends during the vesting period and as a result were considered participating securities. | |||||||||
The adjustment from net income (loss) to net loss available to common shareholders represents the excess over the carrying value of such shares paid to certain preferred shareholders upon repurchase of their preferred shares as described below in Note 9 Convertible Preferred Stock and Stockholders’ Equity (Deficit). The weighted average shares used in calculating basic and diluted net loss per share excludes certain shares that are disclosed as outstanding shares in the Consolidated Balance Sheet and Consolidated Statement of Stockholders’ Equity because such shares are restricted as they were associated with options that were early exercised and continue to remain unvested. | |||||||||
Basic and diluted net loss per share was calculated as follows (net loss in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net loss available to common stockholders for basic and | $ | (17,561 | ) | $ | (27,007 | ) | |||
diluted EPS | |||||||||
Denominator: | |||||||||
Weighted average shares used in computing basic and | 8,896,801 | 6,596,827 | |||||||
diluted net loss per share | |||||||||
Basic and diluted net loss per share | $ | (1.97 | ) | $ | (4.09 | ) | |||
Due to losses attributable to Prosper’s common shareholders for each of the periods below, the following potentially dilutive shares are excluded from the diluted net loss per share calculation because they were anti-dilutive under the treasury stock method, in accordance with ASC Topic 260: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
(shares) | (shares) | ||||||||
Excluded securities: | |||||||||
Convertible preferred stock issued and outstanding | 30,699,957 | 27,274,068 | |||||||
Stock options issued and outstanding | 4,994,998 | 894,976 | |||||||
Unvested stock options exercised | 4,114,269 | 5,594,134 | |||||||
Warrants issued and outstanding | 176,887 | 218,810 | |||||||
Total common stock equivalents excluded from diluted | 39,986,111 | 33,981,988 | |||||||
net loss per common share computation | |||||||||
Convertible_Preferred_Stock_an
Convertible Preferred Stock and Stockholders' Equity (Deficit) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stockholders Equity Note [Abstract] | |||||||||||||||||
Convertible Preferred Stock and Stockholders' Equity (Deficit) | 7.Convertible Preferred Stock and Stockholders’ Equity (Deficit) | ||||||||||||||||
Convertible Preferred Stock | |||||||||||||||||
Under Prosper’s amended and restated certificate of incorporation, preferred stock is issuable in series, and the board of directors is authorized to determine the rights, preferences, and terms of each series. | |||||||||||||||||
In January 2013, the Company issued and sold 13,868,152 shares of new Series A (“New Series A”) preferred stock in a private placement at a purchase price of $1.44 per share for $19.8 million, net of issuance costs. In connection with that sale, the Company issued 5,117,182 shares at par value $0.01 per share of Series A-1 (“Series A-1”) convertible preferred stock to the holders of shares of the Company’s convertible preferred stock that was outstanding immediately prior to the sale (“Old Preferred Shares”) in consideration for such stockholders participating in the sale. In connection with the new Series A sale, Old Preferred Shares were converted into shares of common stock at a ratio of 1:1 if the holder of the Old Preferred Shares participated in the new Series A sale or at a 10:1 ratio if the holder of the Old Preferred Shares did not so participate. In addition, each such participating holder received a share of new Series A-1 convertible preferred stock for every dollar of liquidation preference associated with an Old Preferred Share held by such holder. Each share of Series A-1 preferred stock has a liquidation preference of $10.00 and converts into common stock at a ratio of 1,000,000:1. The Series A and Series A-1 convertible preferred stock were sold in reliance on the exemption from the registration requirements of the Securities Act set forth in Section 4(2) of the Securities Act and Regulation D promulgated thereunder regarding sales by an issuer not involving a public offering. | |||||||||||||||||
In September 2013, Prosper issued and sold 8,288,734 shares of new Series B (“New Series B”) convertible preferred stock in a private placement at a purchase price of $3.02 per share for approximately $24.9 million, net of issuance costs. The New Series B convertible preferred stock was sold in reliance on the exemption from the registration requirements of the Securities Act set forth in Section 4(2) of the Securities Act and Regulation D promulgated thereunder regarding sales by an issuer not involving a public offering. | |||||||||||||||||
In May 2014, the Company issued and sold 4,880,954 shares of new Series C (“New Series C”) convertible preferred stock in a private placement at a purchase price of $14.36 per share for approximately $69.9 million, net of issuance costs. . The Series C convertible preferred stock was sold in reliance on the exemption from the registration requirements of the Securities Act set forth in Section 4(2) of the Securities Act and Regulation D promulgated thereunder regarding sales by an issuer not involving a public offering. The purpose of the new Series C private placement was to raise funds for general corporate needs and for the tender offer discussed below. | |||||||||||||||||
On June 18, 2014, the Company issued a Tender Offer Statement to purchase up to 1,392,757 shares, in the aggregate, of its new Series A convertible preferred Stock and new Series B convertible preferred Stock, at a price equal to $14.36 per share. Upon closure of the tender offer on July 16, 2014, 156,508 shares of new Series A convertible preferred Stock and 1,133,558 share of new Series B convertible preferred Stock were purchased for an aggregate price of $18.5 million | |||||||||||||||||
The number of authorized, issued and outstanding shares, their par value and liquidation preference for each series of convertible preferred stock as of December 31, 2014 are disclosed in the table below: | |||||||||||||||||
Convertible Preferred Stock | Par Value | Authorized | Outstanding and Issued | Liquidation | |||||||||||||
shares as of | shares as of | Preference | |||||||||||||||
December 31, | December 31, | ($,000s) | |||||||||||||||
2014 | 2014 | ||||||||||||||||
New Series A | $ | 0.01 | 13,868,152 | 13,711,644 | $ | 19,774 | |||||||||||
Series A-1 | 0.01 | 5,117,182 | 4,952,183 | 49,522 | |||||||||||||
New Series B | 0.01 | 8,288,734 | 7,155,176 | 21,581 | |||||||||||||
New Series C | 0.01 | 4,880,954 | 4,880,954 | 70,075 | |||||||||||||
32,155,022 | 30,699,957 | $ | 160,952 | ||||||||||||||
The number of shares issued and outstanding reflect a 10-for-1 reverse stock split effected by the Company on October 29, 2013. | |||||||||||||||||
Dividends | |||||||||||||||||
Dividends on shares of the new Series A, new Series B and new Series C convertible preferred stock are payable only when, as, and if declared by the Board of Directors. No dividends will be paid with respect to the common stock until any declared dividends on the new Series A, new Series B and new Series C convertible preferred stock have been paid or set aside for payment to the new Series A, new Series B and new Series C convertible preferred stockholders. After payment of any such dividends, any additional dividends or distributions will be distributed among all holders of common stock and preferred stock in proportion to the number of shares of common stock that would be held by each such holder if all shares of preferred stock were converted to common stock at the then effective conversion rate. The Series A-1 convertible preferred shares have no dividend rights. To date, no dividends have been declared on any of the Company’s preferred stock or common stock, and there are no dividends in arrears at December 31, 2014. | |||||||||||||||||
Conversion | |||||||||||||||||
Under the terms of the Company’s amended and restated certificate of incorporation, the holders of preferred stock have the right to convert such preferred stock into common stock at any time. In addition, all preferred stock automatically converts into common stock (i) immediately prior to the closing of an Initial Public Offering (“IPO”) that values the Company at least at $750 million and that results in aggregate proceeds to the Company of at least $100 million or (ii) upon a written request from the holders of at least 60% of the voting power of the outstanding preferred stock (on an as-converted basis) including at least 14% of the voting power of the outstanding Series A-1 convertible preferred stock. In addition, if a holder of the new Series A convertible preferred stock has converted any of the new Series A convertible preferred stock, then all of such holder’s shares of Series A-1 convertible preferred stock also will be converted upon a liquidation event. In lieu of any fractional shares of common stock to which a holder would otherwise be entitled, the Company shall pay such holder cash in an amount equal to the fair market value of such fractional shares, as determined by the Board of Directors. At present, the new Series A, new Series B and the new Series C convertible preferred stock converts into the Company common stock at a 1:1 ratio while the Series A-1 convertible preferred stock converts into common stock at a 1,000,000:1 ratio. | |||||||||||||||||
Liquidation Rights | |||||||||||||||||
The Company’s convertible preferred stock has been classified as temporary equity on the accompanying balance sheets. The preferred stock is not redeemable; however, upon in the event of a voluntary or involuntary liquidation, dissolution, change in control or winding up of the Company, holders of the convertible preferred stock may have the right to receive its liquidation preference under the terms of the Company’s certificate of incorporation. | |||||||||||||||||
Each holder of new Series A, new Series B and new Series C convertible preferred stock is entitled to receive, on a pari passu basis, prior and in preference to any distribution of proceeds from a liquidation event to the holders of Series A-1 preferred stock or common stock, an amount per share for each share of new Series A, new Series B and new Series C convertible preferred stock equal to the sum of the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share. After the payment or setting aside for payment to the holders of new Series A, new Series B and new Series C convertible preferred stock, the holders of Series A-1 convertible preferred stock are entitled to receive, prior and in preference to any distribution of proceeds to the holders of common stock an amount per share for each such share of Series A-1 convertible preferred stock equal to the sum of the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share. After the payment or setting aside for payment to the holders of new Series A, new Series B, new Series C convertible preferred stock and Series A-1 preferred stock, the entire remaining proceeds legally available for distribution will be distributed pro rata to the holders of new Series A preferred stock and common stock in proportion to the number of shares of common stock held by them assuming the new Series A preferred stock has been converted into shares of common stock at the then effective conversion rate, provided that the maximum aggregate amount per share of new Series A convertible preferred stock which the holders of new Series A convertible preferred stock shall be entitled to receive is three times the original issue price for the new Series A convertible preferred stock. At present, the liquidation preferences are equal to $1.44 per share for the new Series A convertible preferred stock, $10.00 per share for the Series A-1 convertible preferred stock, $3.02 per share for the new Series B convertible preferred stock and $14.36 per share for the new Series C convertible preferred stock. | |||||||||||||||||
Voting | |||||||||||||||||
Each holder of shares of convertible preferred stock is entitled to the number of votes equal to the number of shares of common stock into which such shares of convertible preferred stock could be converted and has voting rights and powers equal to the voting rights and powers of the common stock. The holders of convertible preferred stock and the holders of common stock vote together as a single class (except with respect to certain matters that require separate votes or as required by law), and are entitled to notice of any stockholders’ meeting in accordance with the bylaws of the Company. | |||||||||||||||||
Common Stock | |||||||||||||||||
The Company, through its amended and restated certificate of incorporation, is the sole issuer of common stock and related options and warrants. On October 29, 2013, the Company amended and restated its certificate of incorporation to effect a 10-for-1 reverse stock split. On May 15, 2014, the Company amended and restated its certificate of incorporation to effect an increase in the number of authorized shares of stock. The total number of shares of stock which the Company has the authority to issue is 80,083,905, consisting of 47,928,883 shares of common stock, $0.01 par value per share, and 32,155,022 shares of preferred stock, $0.01 par value per share, 13,868,152 of which are designated as new Series A preferred stock, 5,117,182 of which are designated as Series A-1 preferred stock and 8,288,734 of which are designated new Series B preferred stock and 4,880,954 of which are designated as Series C preferred stock. As of December 31, 2014, 14,448,700 shares of common stock were issued and outstanding. As of December 31, 2013, 13,588,803 shares of common stock were issued and outstanding. Each holder of common stock is entitled to one vote for each share of common stock held. | |||||||||||||||||
Common Stock Issued upon Exercise of Stock Options | |||||||||||||||||
During the year ended December 31, 2014 and 2013, the Company issued 924,867 and 7,327,959 shares of common stock, respectively, upon the exercise of options for cash proceeds of $0.89 million and $0.86 million, respectively, of which 865,717 and 6,499,463 were unvested, respectively. Certain options are eligible for exercise prior to vesting. These unvested options may be exercised for restricted shares of common stock that have the same vesting schedule as the options. The Company records a liability for the exercise price paid upon the exercise of unvested options, which is reclassified to common stock and additional paid-in capital as the shares vest. Should the holder’s employment be terminated, the unvested restricted shares are subject to repurchase by the Company at an amount equal to the exercise price paid for such shares. At December 31, 2014 and 2013, there were 4,114,269 and 5,594,134 shares respectively of restricted stock outstanding that remain unvested and subject to the Company’s right of repurchase. | |||||||||||||||||
For the year ended December 31, 2014 and 2013, the Company repurchased 181,893 shares of restricted stock for $0.09 million and 414,130 shares of restricted stock for $0.02 million, respectively upon termination of employment of various employees. | |||||||||||||||||
Common Stock Issued upon Exercise of Warrants | |||||||||||||||||
For the year ended December 31, 2014 and 2013 the Company issued 116,923 and 820 shares of common stock upon the exercise of warrants, respectively for $1.95 per share and $0.10 per share respectively. | |||||||||||||||||
Stock_Option_Plan_and_Compensa
Stock Option Plan and Compensation | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||||||||||||||||
Stock Option Plan and Compensation | 8 | Stock Option Plan and Compensation | ||||||||||||||||||||
In 2005, the Company’s stockholders approved the adoption of the 2005 Stock Plan. On December 1, 2010, the Company’s stockholders approved the adoption of the Amended and Restated 2005 Stock Plan (the “Plan”). As of December 31, 2014 under the Plan, options to purchase up to 14,195,255 shares of common stock are reserved and may be granted to employees, directors, and consultants by the Board of Directors and stockholders to promote the success of the Company’s business. Options generally vest 25% one year from the vesting commencement date and 1/48th per month thereafter. In no event are options exercisable more than ten years after the date of grant. All share totals in this note reflects a 10-for-1 reverse stock split effected by the Company on October 29, 2013. | ||||||||||||||||||||||
At December 31, 2014, there were 1,488,494 stock options available for grant under the 2005 Plan. | ||||||||||||||||||||||
Early Exercised Stock Options | ||||||||||||||||||||||
With the approval of the Board, we allow certain employees and directors to exercise stock options granted under the 2005 Plan prior to vesting. The unvested shares are subject to a repurchase right held by the Company at the original exercise price. Early exercises of options are not deemed to be substantive exercises for accounting purposes and therefore, amounts received for early exercises are initially recorded in repurchase liability for unvested restricted stock awards. Such amounts are reclassified to common stock and additional paid-in capital as the underlying shares vest. The activity of options that were early exercised under the 2005 Plan follow for the years below: | ||||||||||||||||||||||
Early exercised | Weighted average | Weighted Average | Aggregate | |||||||||||||||||||
options, unvested | exercise price | Contractual Term | Intrinsic Value | |||||||||||||||||||
(in years) | (in thousands) | |||||||||||||||||||||
Balance as of January 1, 2013 | — | $ | — | |||||||||||||||||||
Exercise of non-vested stock options | 6,499,463 | 0.11 | ||||||||||||||||||||
Repurchase of restricted stock | (414,130 | ) | 0.21 | |||||||||||||||||||
Restricted stock vested | (491,199 | ) | 0.1 | |||||||||||||||||||
Balance as of December 31, 2013 | 5,594,134 | 0.12 | ||||||||||||||||||||
Exercise of non-vested stock options | 865,717 | 0.94 | ||||||||||||||||||||
Repurchase of restricted stock | (181,893 | ) | 0.1 | |||||||||||||||||||
Restricted stock vested | (2,165,689 | ) | 0.16 | |||||||||||||||||||
Balance as of December 31, 2014 | 4,112,269 | 0.25 | 2.23 | $ | 74,473 | |||||||||||||||||
Options expected to vest | 3,674,592 | $ | 0.25 | 2.23 | $ | 66,547 | ||||||||||||||||
Additional information regarding the unvested early exercised stock options outstanding as of December 31, 2014 is as follows: | ||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||
Range of | Number | Weighted –Avg. | Weighted –Avg. | |||||||||||||||||||
Exercise | Outstanding | Remaining Life | Exercise Price | |||||||||||||||||||
Prices | ||||||||||||||||||||||
$0.10 - $0.10 | 3,520,635 | 2.14 | $ | 0.1 | ||||||||||||||||||
0.57 - 0.57 | 528,495 | 2.64 | 0.57 | |||||||||||||||||||
5.65-5.65 | 63,139 | 2.59 | 5.65 | |||||||||||||||||||
$0.10 - $5.65 | 4,112,269 | 2.23 | $ | 0.25 | ||||||||||||||||||
Stock Option Activity | ||||||||||||||||||||||
Option activity under the 2005 Plan is summarized as follows for the years below: | ||||||||||||||||||||||
Options | Weighted- | Weighted Average | Aggregate | |||||||||||||||||||
Issued and | Average | Contractual Term | Intrinsic Value | |||||||||||||||||||
Outstanding | Exercise | (in years) | (in thousands) | |||||||||||||||||||
Price | ||||||||||||||||||||||
Balance as of January 1, 2013 | 1,173,816 | $ | 2.03 | |||||||||||||||||||
Options granted | 7,912,933 | 0.1 | ||||||||||||||||||||
Options exercised – vested | (828,496 | ) | 0.26 | |||||||||||||||||||
Options exercised – nonvested | (6,499,463 | ) | 0.1 | |||||||||||||||||||
Options forefeited | (863,814 | ) | 1.17 | |||||||||||||||||||
Balance as of December 31, 2013 | 894,976 | $ | 1.46 | |||||||||||||||||||
Options granted | 5,287,763 | 1.76 | ||||||||||||||||||||
Options exercised – vested | (59,150 | ) | 1.3 | |||||||||||||||||||
Options exercised – nonvested | (865,717 | ) | 0.94 | |||||||||||||||||||
Options forefeited | (262,874 | ) | 1.79 | |||||||||||||||||||
Balance as of December 31, 2014 | 4,994,998 | $ | 1.85 | 8.92 | $ | 81,219 | ||||||||||||||||
Options vested and expected to vest as of December 31, | 4,463,370 | 1.85 | 8.92 | $ | 72,574 | |||||||||||||||||
2014 | ||||||||||||||||||||||
Options vested and exercisable at December 31, 2014 | 3,921,049 | $ | 1.32 | 8.75 | $ | 65,834 | ||||||||||||||||
For the year ended December 31, 2014, we granted stock options to purchase 5,287,763 shares of common stock with a weighted average exercise price of $1.76 per share, a weighted average grant date fair value of $2.45 per share and an estimated aggregate fair value of approximately $13.0 million. Options to purchase 59,150 shares with total intrinsic value of $0.3 million were exercised during the year ended December 31, 2014. | ||||||||||||||||||||||
Other Information Regarding Stock Options | ||||||||||||||||||||||
Additional information regarding common stock options outstanding as of December 31, 2014 is as follows: | ||||||||||||||||||||||
Options Outstanding | Options Vested and Exercisable | |||||||||||||||||||||
Weighted – | Weighted – | Weighted - | ||||||||||||||||||||
Range of | Avg. | Avg. | Avg. | |||||||||||||||||||
Exercise | Number | Remaining | Exercise | Number | Exercise | |||||||||||||||||
Prices | Outstanding | Life | Price | Vested | Price | |||||||||||||||||
$ | 0.10 - $0.10 | 163,883 | 8.62 | $ | 0.1 | 70,784 | $ | 0.1 | ||||||||||||||
0.57 - 0.57 | 3,170,301 | 9.12 | 0.57 | 1,983,728 | 0.57 | |||||||||||||||||
1.20 - 1.20 | 133,334 | 6.71 | 1.2 | 121,874 | 1.2 | |||||||||||||||||
1.70 - 1.70 | 77,552 | 7.37 | 1.7 | 62,724 | 1.7 | |||||||||||||||||
2.00 - 2.00 | 287,933 | 5.56 | 2 | 287,869 | 2 | |||||||||||||||||
5.00 - 5.00 | 7,000 | 1.75 | 5 | 7,000 | 5 | |||||||||||||||||
5.60 - 5.60 | 18,250 | 4.71 | 5.6 | 18,250 | 5.6 | |||||||||||||||||
5.65 - 5.65 | 1,136,745 | 9.71 | 5.65 | 737 | 5.65 | |||||||||||||||||
$ | 0.10 - $5.65 | 4,994,998 | 8.92 | $ | 1.85 | 2,552,966 | $ | 0.83 | ||||||||||||||
The fair value of options granted to employees is estimated on the grant date using the Black-Scholes option valuation model. This valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation, including the fair value of the Company’s common stock, the expected term (the period of time that the options granted are expected to be outstanding), the volatility of the Company’s common stock, a risk-free interest rate, and expected dividends. Given the absence of a publicly traded market, the Company considered numerous objective and subjective factors to determine the fair value of our common stock at each grant date. These factors included, but were not limited to, (i) contemporaneous valuations of common stock performed by unrelated third-party specialists; (ii) the prices for our Preferred Stock sold to outside investors; (iii) the rights, preferences and privileges of our Preferred Stock relative to our common stock; (iv) the lack of marketability of our common stock; (v) developments in the business; (vi) secondary transactions of our common and preferred shares and (vii) the likelihood of achieving a liquidity event, such as an initial public offering or a merger or acquisition of the Company, given prevailing market conditions. The Company also estimates forfeitures of unvested stock options. To the extent actual forfeitures differ from the estimates, the difference will be recorded as a cumulative adjustment in the period estimates are revised. No compensation cost is recorded for options that do not vest. As the Company’s stock is not publically traded volatility for stock options is based on an average of the historical volatilities of the common stock of several entities with characteristics similar to those of the Company. The expected term assumptions were determined based on the vesting terms, exercise terms and contractual lives of the options using the simplified method. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. The Company uses an expected dividend yield of zero as it does not anticipate paying any dividends in the foreseeable future. Expected forfeitures are based on the Company’s historical experience. | ||||||||||||||||||||||
The fair value of the Company’s stock option awards for the year ended December 31, 2014 and 2013 was estimated at the date of grant using the Black-Scholes model with the following average assumptions: | ||||||||||||||||||||||
Year ended | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Volatility of common stock | 68.28 | % | 75.34 | % | ||||||||||||||||||
Risk-free interest rate | 1.79 | % | 1.78 | % | ||||||||||||||||||
Expected life | 5.7 years | 5.8 years | ||||||||||||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||||||||||||
Under the 2005 Stock Plan certain executive officers of the Company were granted performance-based stock options during 2014. The vesting of these performance-based stock options was contingent upon the achievement of certain revenue targets or target ratios of marketing expenditures to revenues for the year ended December 31, 2014. | ||||||||||||||||||||||
The fair value of the performance-based stock options was estimated on the date of grant using the Black-Scholes option valuation model. The Company used the following assumptions in measuring the fair value of these performance-based stock options: a 66% rate for expected volatility, 0% rate for expected dividends, 5.23 years for the expected term and a 1.66% risk-free rate. | ||||||||||||||||||||||
The Company granted 2,032,896 performance-based stock options with an exercise price of $0.57 per share during 2014. The contractual term of these options is 10 years. Since the performance targets were achieved, 1,924,896 performance-based stock options became fully vested and 108,000 performance-based stock options were forfeited on the termination of employment of an executive. The aggregate expense recognized during 2014 related to these performance-based stock options was $587 thousand. These shares are included in the stock option activity tables above. | ||||||||||||||||||||||
The following table presents the amount of stock-based compensation related to stock-based awards granted to employees recognized in the Company’s consolidated statements of operations during the periods presented (in thousands): | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Origination and Servicing | $ | 104 | $ | 16 | ||||||||||||||||||
Sales and Marketing | 767 | 24 | ||||||||||||||||||||
General and Administrative | 1,140 | 206 | ||||||||||||||||||||
Total stock based compensation | $ | 2,011 | $ | 246 | ||||||||||||||||||
During the year ended December 31, 2014 and 2013, the Company capitalized $21 thousand, and $23 thousand, respectively, of stock-based compensation as internal use software and website development costs. Management modified or accelerated the vesting terms for certain employee options, which resulted in an additional $0.6 million and $nil of stock-based compensation expense for the year ended December 31, 2014 and 2013, respectively. As of December 31, 2014, the unamortized stock-based compensation expense related to Prosper employees’ unvested stock-based awards was approximately $5.8 million, which will be recognized over the remaining weighted-average vesting period of approximately 3.4 years. | ||||||||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes | 9 | Income Taxes | |||||||
The Company did not have any current or deferred federal or state income tax expense for the years ended December 31, 2014 and 2013. The income tax expense (benefit) differed from the amount computed by applying the U.S. federal income tax rate of 34% to pretax loss as a result of the following: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Federal tax at statutory rate | 34 | % | 34 | % | |||||
State tax at statutory rate (net of federal benefit) | 1 | % | 2 | % | |||||
Permanent items | 31 | % | 0 | % | |||||
Stock compensation | (9 | )% | 0 | % | |||||
Change in valuation allowance | (66 | )% | (38 | )% | |||||
Credits and Reserves | 9 | % | (— | )% | |||||
Other | 0 | % | 2 | % | |||||
0 | % | 0 | % | ||||||
Temporary items that give rise to significant portions of deferred tax assets and liabilities (tax-effected) at December 31, 2014 and 2013 are as follows (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Net operating loss carry forwards | $ | 24,565 | $ | 24,626 | |||||
Research & other credits | 420 | 277 | |||||||
Fixed assets | 45 | 95 | |||||||
Settlement liability | 2,964 | 3,654 | |||||||
Stock compensation | 344 | 69 | |||||||
Accrued liabilities and other | 2,320 | 247 | |||||||
30,658 | 28,968 | ||||||||
Fair value of loans | (1,160 | ) | (1,078 | ) | |||||
Valuation allowance | (29,498 | ) | (27,890 | ) | |||||
Net deferred tax asset | $ | — | $ | — | |||||
The valuation allowance as of December 31, 2014, increased by $1.6 million to ($29.5) million from ($27.9 million in the prior fiscal year, an increase of 6%. Under ASC 740, Accounting for Income Taxes (“ASC Topic 704”), a valuation allowance must be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The amount of valuation allowance would be based upon management’s best estimate of the Company’s ability to realize the net deferred tax assets. A valuation allowance can subsequently be reversed when management believes that the assets are realizable on a more-likely-than-not basis. | |||||||||
The Company has determined that its net deferred tax asset did not satisfy the recognition criteria set forth in ASC Topic 740 and, accordingly, established a valuation allowance for 100 percent of the net deferred tax asset. Realization of the deferred tax assets is dependent upon future earnings, if any, the amount and timing of which are uncertain. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance of $29.5 million and $27.9 million for the year ended December 31, 2014 and 2013, respectively. | |||||||||
The Tax Reform Act of 1986 and similar California legislation impose substantial restrictions on the utilization of net operating losses and tax credits in the event of an “ownership change” of a corporation. Accordingly, the Company’s ability to utilize net operating losses and credit carryforwards may be limited in the future as the result of such an “ownership change.” | |||||||||
The Company files Federal and various state income tax returns. The Company has net operating loss carryforwards for both federal and state income tax purposes of approximately $69.5 million and $83.8 million respectively as of December 31, 2014, available to reduce future income subject to income taxes. The federal net operating loss carryforwards will begin to expire in 2025. The state net operating loss carryforwards will begin to expire in 2015. The Company also has federal and California research and development tax credits of approximately $nil and $450, respectively. The California research credits have no expiration date. | |||||||||
As of December 31, 2014, the Company’s federal and state tax returns for the years ended December 31, 2011 and December 31, 2010, respectively, through the current period are open to examination. In addition, all of the net operating losses and credits that may be used in future years are still subject to adjustment. | |||||||||
The following table summarizes the Company’s activity related to its unrecognized tax benefits (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Balance at January 1, | $ | 54,571 | $ | 219 | |||||
Increase related to current year tax position | — | — | |||||||
Increase related to tax position of prior years | — | 54,352 | |||||||
Balance at December 31, | $ | 54,571 | $ | 54,571 | |||||
A total of $54.6 million of the unrecognized tax benefits would affect the Company’s effective tax rate. The Company currently has a full valuation allowance against its U.S. net deferred tax assets which would impact the timing of the effective tax rate benefit should any of these uncertain tax positions be favorably settled in the future. | |||||||||
The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of December 31, 2014, the Company has not incurred any interest or penalties. | |||||||||
Prosper Funding LLC [Member] | |||||||||
Income Taxes | 6 | Income Taxes | |||||||
PFL incurred no income tax provision for the year ended December 31, 2014 and 2013. PFL is a US disregarded entity and the income and loss is included in the return of its parent, PMI. Since PMI is in a loss position, not currently subject to income taxes, and has fully reserved its deferred tax asset, the net effective tax rate for PFL is 0%. | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies | 10 | Commitments and Contingencies | |||
Future Minimum Lease Payments | |||||
During the period the Company signed new leases for the new corporate headquarters at 221 Main Street in San Francisco California and for the co-location facility. These are non-cancelable operating leases that expire in February 2023 and August 2015, respectively. The Company also signed a new lease for office space in Phoenix Arizona under an operating lease that expires in June 2022. | |||||
Future minimum rental payments under these leases as of December 31, 2014 are as follows (in thousands $) : | |||||
2015 | 2,425 | ||||
2016 | 3,755 | ||||
2017 | 3,866 | ||||
2018 | 3,977 | ||||
2019 | 4,093 | ||||
Thereafter | 13,091 | ||||
Total future operating lease obligations | $ | 31,207 | |||
Rental expense under operating lease arrangements was $2.0 million and $0.6 million for the years ended December 31, 2014 and 2013, respectively. | |||||
Operating Commitments | |||||
The Company amended and restated an agreement with WebBank, under which all Borrower Loans originated through the platform are made by WebBank under its bank charter. The arrangement allows for Borrower Loans to be offered to borrowers at uniform nationwide terms. The Company is required to pay the greater of a monthly minimum fee or a fee calculated based on a certain percentage of monthly Borrower Loan origination volume. The minimum annual fee for year ended December 31, 2015 is $1.4 million. | |||||
Loan Purchase Commitments | |||||
The Company has entered into an agreement with WebBank to purchase $16.7 million of borrower loans that WebBank is originating within the first two business days of fiscal 2015. | |||||
Repurchase and Indemnification Contingency | |||||
Under the terms of the loan purchase agreements between the Company and investor members that participate in the Whole Loan Channel, the Company may, in certain circumstances, become obligated to repurchase a Borrower Loan from an investor member. Generally, these circumstances include the occurrence of verifiable identity theft, the failure to properly follow loan listing or bidding protocols, or a violation of the applicable federal, state, or local lending laws. The fair value of the indemnification and repurchase obligation is estimated based on historical experience and the initial fair value is insignificant. The Company recognizes a liability for the repurchase and indemnification obligation when the Borrower Loans are issued. Indemnified or repurchased Borrower Loans associated with violations of federal, state, or local lending laws or verifiable identity theft are written off at the time of repurchase or at the time an indemnification payment is made. The maximum potential amount of future payments associated under this obligation is the outstanding balances of the borrower loans issued Whole Loan channels, which at December 31, 2014 is $1,358 million. The Company had accrued $171 thousand and $40 thousand as of December 31, 2014 and 2013 respectively in regard to this obligation. | |||||
Securities Law Compliance | |||||
From inception through October 16, 2008, the Company sold approximately $178.0 million of Borrower Loans to investor members through the old platform structure, whereby the Company assigned promissory notes directly to investor members. The Company did not register the offer and sale of the promissory notes corresponding to these Borrower Loans under the Securities Act or under the registration or qualification provisions of any state securities laws. The Company believes that the question of whether or not the operation of the platform during this period constituted an offer or sale of “securities” involved a complicated factual and legal analysis and was uncertain. If the sales of promissory notes offered through the platform during this period were viewed as a securities offering, the Company would have failed to comply with the registration and qualification requirements of federal and state laws. | |||||
The Company’s decision to restructure the platform and cease sales of promissory notes offered through the platform effective October 16, 2008 limited this contingent liability to the period covering its activities prior to October 16, 2008. | |||||
On April 21, 2009, the Company and the North American Securities Administrators Association (“NASAA”) reached agreement on the terms of a model consent order between the Company and the states in which PMI, under its initial platform structure, offered promissory notes for sale directly to investor members prior to November 2008. The agreement with NASAA contemplates payment by the Company of up to an aggregate of $1 million in penalties, which have been allocated among the states based on the Company’s promissory note sale transaction volume in each state prior to November 2008. A state that enters into a consent order receives its portion of the $1 million in exchange for its agreement to terminate, or refrain from initiating, any investigation of the Company’s promissory note sale activities prior to November 2008. Penalties are paid promptly after a state enters into a consent order. NASAA has recommended that each state enter into a consent order; however, no state is obliged to do so, and there is no deadline by which a state must make its decision. The Company is not required to pay any portion of the penalty to those states that do not elect to enter into a consent order. If a state does not enter into a consent order, it is free to pursue its own remedies against the Company, subject to any applicable statute of limitations. As of December 31, 2014, the Company has entered into consent orders with 34 states and has paid an aggregate of $0.47 million in penalties to those states. | |||||
As of December 31, 2014 and December 31, 2013, the Company had accrued approximately $0.25 million and $0.25 million, respectively, in connection with the contingent liability associated with the states that have not entered into consent orders, in accordance with ASC Topic 450, Contingencies. The methodology applied to estimate the accrual was to divide the $1 million maximum fee pro-rata by state, using the Company’s promissory note sales from inception through November 2008. A weighting was then applied by state to each state that has not entered into a consent order, assigning a likelihood that the penalty will be claimed. In estimating the probability of a claim being made by a state, the Company considered factors such as the standard terms of the consent orders; whether the state ever gave any indication of concern regarding the sale of promissory notes through the platform; the probability of a state electing not to enter into a consent order in order to pursue its own litigation against the Company; whether the penalty is sufficient to compensate a state for the cost of processing the settlement consent order; and finally the impact that current economic conditions have had on state governments. The Company will continue to evaluate this accrual and related assumptions as new information becomes known. | |||||
In 2008, plaintiffs filed a class action lawsuit against the Company and certain of its executive officers and directors in the Superior Court of California, County of San Francisco, California. The suit was brought on behalf of all promissory note purchasers on the platform from January 1, 2006 through October 14, 2008. The lawsuit alleged that the Company offered and sold unqualified and unregistered securities in violation of the California and federal securities laws. On July 19, 2013 solely to avoid the costs, risks and uncertainties inherent in litigation, and without admitting any liability or wrongdoing, the parties to the class action litigation agreed to enter into a settlement to resolve all claims related thereto (the “Settlement”). In connection with the Settlement, the Company agreed to pay an aggregate amount of $10 million into a settlement fund, split into four annual installments of $2 million in 2014, $2 million in 2015, $3 million in 2016 and $3 million in 2017. The Settlement received final approval in a final order and judgment entered by the Superior Court on April 16, 2014. Pursuant to the final order and judgment, the claims in the class action were dismissed, and at the effective time of the Settlement (June 16, 2014), the defendants will have been released by the plaintiffs from all claims that were or could have been asserted concerning the issues alleged in the class action lawsuit. The reserve for the class action settlement liability is $7.9 million in the condensed consolidated balance sheet as of December 31, 2014. | |||||
Prosper Funding LLC [Member] | |||||
Commitments and Contingencies | 7 | Commitments and Contingencies | |||
Operating Commitments | |||||
The Company amended and restated an agreement with WebBank, under which all Borrower Loans originated through the platform are made by WebBank under its bank charter. The arrangement allows for Borrower Loans to be offered to borrowers at uniform nationwide terms. The Company is required to pay the greater of a monthly minimum fee or a fee calculated based on a certain percentage of monthly Borrower Loan origination volume. The minimum annual fee for year ended December 31, 2015 is $1.4 million. | |||||
Loan Purchase Commitments | |||||
The Company has entered into an agreement with WebBank to purchase $16.7 million of borrower loans that WebBank is originating within the first two business days of fiscal 2015. | |||||
Repurchase and Indemnification Contingency | |||||
Under the terms of the loan purchase agreements between the Company and investor members that participate in the Whole Loan Channel, the Company may, in certain circumstances, become obligated to repurchase a Borrower Loan from an investor member. Generally, these circumstances include the occurrence of verifiable identity theft, the failure to properly follow loan listing or bidding protocols, or a violation of the applicable federal, state, or local lending laws. The fair value of the indemnification and repurchase obligation is estimated based on historical experience and the initial fair value is insignificant. The Company recognizes a liability for the repurchase and indemnification obligation when the Borrower Loans are issued. Indemnified or repurchased Borrower Loans associated with violations of federal, state, or local lending laws or verifiable identity theft are written off at the time of repurchase or at the time an indemnification payment is made. The maximum potential amount of future payments associated under this obligation is the outstanding balances of the borrower loans issued Whole Loan channels, which at December 31, 2014 is $1,358 million. The Company had accrued $171 thousand and $40 thousand as of December 31, 2014 and 2013 respectively in regard to this obligation. | |||||
Related_Parties
Related Parties | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Related Parties | 11 | Related Parties | |||||||||||||||
Since Prosper’s inception, it has engaged in various transactions with its directors, executive officers and holders of more than 10% of its voting securities, and immediate family members and other affiliates of its directors, executive officers and 10% stockholders. Prosper believes that all of the transactions described below were made on terms no less favorable to Prosper than could have been obtained from unaffiliated third parties. | |||||||||||||||||
Prosper’s executive officers, directors who are not executive officers and certain affiliates participate on Prosper’s marketplace by purchasing Notes. The aggregate amount of the Notes purchased and the income earned by parties deemed to be affiliates and related parties of Prosper as of December 31, 2014 and 2013 are summarized below (in thousands): | |||||||||||||||||
Aggregate Amount of | Interest Earned on | ||||||||||||||||
Related Party | Notes Purchased | Notes | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Executive officers and management | $ | 1,127 | $ | 1,096 | $ | 163 | $ | 12 | |||||||||
Directors | 42 | 727 | 10 | 52 | |||||||||||||
Total | $ | 1,169 | $ | 1,823 | $ | 173 | $ | 64 | |||||||||
Related Party | Notes balance as of December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Executive officers and management | $ | 1,614 | $ | 1,067 | |||||||||||||
Directors | 76 | 322 | |||||||||||||||
$ | 1,690 | $ | 1,389 | ||||||||||||||
Prosper has earned approximately $13 thousand and $1 thousand in servicing fee revenue related to these Notes for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||
Prosper Funding LLC [Member] | |||||||||||||||||
Related Parties | 8 | Related Parties | |||||||||||||||
Since PMI’s inception, it has engaged in various transactions with its directors, executive officers and holders of more than 10% of its voting securities, and immediate family members and other affiliates of its directors, executive officers and 10% stockholders. PFL believes that all of the transactions described below were made on terms no less favorable to PMI than could have been obtained from unaffiliated third parties. | |||||||||||||||||
PFL’s executive officers, directors who are not executive officers and certain affiliates participate on PFL’s lending platform by placing bids and purchasing Notes. The aggregate amount of the Notes and Borrower Loans purchased and the income earned by parties deemed to be affiliates and related parties of Prosper as of December 31, 2014 and 2013 are summarized below (in thousands): | |||||||||||||||||
Aggregate Amount of | |||||||||||||||||
Notes and Borrower | Interest Earned on | ||||||||||||||||
Loans | Notes and Borrower | ||||||||||||||||
Related Party | Purchased | Loans | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Executive officers and management | $ | 1,127 | $ | 1,170 | $ | 159 | $ | 1 | |||||||||
Directors | — | — | — | — | |||||||||||||
Total | $ | 1,127 | $ | 1,170 | $ | 159 | $ | 1 | |||||||||
Related Party | Loan balance as of December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Executive officers and management | $ | 1,614 | $ | 1,065 | |||||||||||||
Directors | — | — | |||||||||||||||
Total | $ | 1,614 | $ | 1,065 | |||||||||||||
PMI has earned approximately $13 thousand and $1 thousand in servicing fee revenue related to these Notes and Borrower Loans for the years ended December 31, 2014 and 2013, respectively. |
Postretirement_Benefit_Plans
Postretirement Benefit Plans | 12 Months Ended | |
Dec. 31, 2014 | ||
Compensation And Retirement Disclosure [Abstract] | ||
Postretirement Benefit Plans | 12 | Postretirement Benefit Plans |
The Company has a 401(k) plan that covers all employees meeting certain eligibility requirements. The 401(k) plan is designed to provide tax-deferred retirement benefits in accordance with the provisions of Section 401(k) of the Internal Revenue Code. Eligible employees may defer up to 90% of eligible compensation up to the annual maximum as determined by the Internal Revenue Service. The Company’s contributions to the plan are discretionary. During the years ended December 31, 2014 and 2013, the Company has contributed $0.38 million and $nil to the 401(k) plan. | ||
Significant_Concentrations
Significant Concentrations | 12 Months Ended | |
Dec. 31, 2014 | ||
Significant Concentrations | 13 | Significant Concentrations |
The Company is dependent on third party funding sources such as banks and investment funds to provide the funds to allow WebBank to originate Borrower Loans that the third party funding sources will later purchase. Of all Borrower Loans originated in the year ended December 31, 2014, 37%, 13% and 22% were purchased by three different parties. This compares to 31%, 16% and 4% for the year ended December 31, 2013. | ||
The Company receives all of its transaction fee revenue from WebBank. The transaction fee represents the origination fee that WebBank collects from the borrower when WebBank issues the Borrower Loan. The Company sets the rate of the origination fee for each individual Borrower Loan based on the term and credit grade of the Borrower Loan. | ||
Prosper Funding LLC [Member] | ||
Significant Concentrations | 9 | Significant Concentrations |
The Company is dependent on third party funding sources such as banks and investment funds to provide the funds to allow WebBank to originate loans that the third party funding sources will later purchase. Of all Borrower Loans originated in the year ended December 31, 2014, 37%, 13% and 22% were purchased by three different parties. This compares to 31%, 16% and 4% for the year ended December 31, 2013. | ||
Segments
Segments | 12 Months Ended | |
Dec. 31, 2014 | ||
Segment Reporting [Abstract] | ||
Segments | 14 | Segments |
Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. As such, we have a single reporting segment and operating unit structure. |
Prior_Period_Adjustments
Prior Period Adjustments | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||||
Prior Period Adjustments | 15 | Restatement of Consolidated Financial Statements | |||||||||||||||||||
Subsequent to the issuance of our consolidated financial statements for the year ended December 31, 2013 certain errors were discovered and the December 31, 2013 financial statements presented herein have been restated to correct these errors which are described below and summarized in the tables that follow. | |||||||||||||||||||||
Certain bank accounts were previously not recorded on the balance sheet as of December 31, 2013. The use of the cash in these bank accounts is restricted and may only be used by the Company to fund Borrower Loans, at Fair Value on which investors have bid. The cash in these bank accounts should have been recognized as restricted cash on our Balance Sheet and a related payable to investors should also have been recognized. This resulted in an understatement of restricted cash and Payable to Investors of approximately $35.6 million. | |||||||||||||||||||||
Additionally the Company discovered that certain fees that the Company pays to WebBank were incorrectly classified as expenses. Since WebBank is a customer of the Company and the Company earns transaction fees from WebBank any cash consideration paid to WebBank should be recorded as reduction of the transaction fees earned by the Company. This resulted in a $1.3 million overstatement of Transaction Fee revenues and Origination and Servicing expenses for the year ended December 31, 2013. | |||||||||||||||||||||
The Company also discovered that certain rebates offered on the sale of loans and Notes were incorrectly classified as Transaction Fee revenue and should have been classified as Other Revenue or Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes. This resulted in an understatement of transaction fee revenues of $1.1 million, an overstatement of Other Revenues and an Overstatement of the Change in Fair Values of Borrower Loans, Loans Held for Sale and Notes of $0.55 million. | |||||||||||||||||||||
The Company also discovered that Convertible Preferred Stock was incorrectly classified within permanent stockholders’ equity in its consolidated balance sheet as of December 31, 2013. Since the Convertible Preferred Stockholders are entitled to receive their liquidation preference upon a change-in-control transaction the Convertible Preferred Stock should be classified as temporary equity. This resulted in a $44.8 million reclassification of the Convertible Preferred Stock from permanent equity to temporary equity as of December 31, 2013. | |||||||||||||||||||||
Additionally, the Company discovered certain errors in its valuation of servicing assets and liabilities which resulted in an overstatement of net loan servicing rights and an understatement of the gain recognized on the sale of loans which was included in Other Revenues for the year ended December 31, 2013 by approximately $0.25 million. Furthermore, the Company inappropriately classified loan servicing rights in Borrower Loans Receivable at Fair Value. The Company corrected this error by reclassifying the gross serving assets of $0.4 million to Prepaid and Other Assets and recognized the servicing liabilities of $0.17 million in Accounts Payable and Other Liabilities. | |||||||||||||||||||||
The Company also discovered an error related to measurement of the Class Action Settlement Liability. Upon the court’s approval of the settlement during the quarter ended December 31, 2013, this liability became payable at fixed future dates and therefore the Company should have recognized the liability based on the present value of the future payments rather than the gross amount of such future payments. This error resulted in an overstatement of the Class Action Settlement Liability and the General and Administrative expense recognized as of and for the year ended December 31, 2013 of $0.26 million. | |||||||||||||||||||||
Additionally, the Company also discovered a misclassification related to the presentation of interest receivable and payable. Previously these two amounts were incorrectly netted against each other. These amounts should have been recorded gross and as a result Borrower Loans and Notes were understated by $1.9 million as of December 31, 2013. | |||||||||||||||||||||
The Company also discovered that the fair value of the Borrower Loans and Notes were understated as a result of inappropriately aggregating certain loans when determining the fair value of Borrower Loans and Notes. This resulted in an understatement of the Borrower loans of $4.8 million and the Notes of $4.6 million at December 31, 2013. | |||||||||||||||||||||
Additionally, the Company discovered that it had not recorded Notes issued on the correct date, resulting in an understatement of the Notes balance by $0.8 million and an overstatement of Payable to Investors by $0.8 million at December 31, 2013. | |||||||||||||||||||||
The Company also discovered errors related to capitalized internal use software and website development costs including an impairment of $0.24 million that was not recorded and assets were being amortized over a time period that exceed their useful life which understated amortization by $0.13 million. As a result Property and Equipment was overstated by $0.37 million at December 31, 2014. | |||||||||||||||||||||
Additionally the Company discovered errors related to timing of when payments were applied to Note balances. This resulted in an overstatement of the Note balances and an understatement of the Payable to Investors balance, both for $1.4 million at December 31, 2013. | |||||||||||||||||||||
In addition to the restatements described above, the Company has made other corrections, some of which were previously identified, but were not corrected because management had determined they were not material, individually or in the aggregate, to our consolidated financial statements. These corrections related to the fair value of loans held for investment, reclassification of certain loans from loans held for investment to Borrower Loans, amortization of prepaid assets, estimation of various accruals and a correction for vesting of options that were early exercised. The effect of correcting these errors for the fiscal year ended December 31, 2013 is summarized below. | |||||||||||||||||||||
Additionally, the Company has corrected certain disclosures, the most significant of which is the amount of the gross deferred tax asset related to our NOL carryforward and the amount of the related valuation allowance were overstated by $12.0 million as a result of certain transactions that occurred during the year end December 31, 2013 that limit our ability to carry forward net operating losses. | |||||||||||||||||||||
Lastly, the Company discovered the following errors within its Consolidated Statement of Cash Flows for the year ended December 31, 2013: | |||||||||||||||||||||
× | Changes in certain Restricted Cash balances related to investing activities were inappropriately classified as changes in cash flows from operating activities rather than changes in cash flows from investing activities. | ||||||||||||||||||||
× | Cash flows from the principal payments and proceeds from sale related to Borrower Loans held for sale were inappropriately classified within cash flows from investing activities rather than cash flows from operating activities. | ||||||||||||||||||||
× | A portion of the change in fair value of Borrower Loans and Notes was inappropriately reflected as a cash flow from investing and financing activities, respectively, rather than an adjustment to reconcile net income to net cash used in operating activities. | ||||||||||||||||||||
× | Other changes related to the correction of errors in the balance sheet and statement of operations as described above. | ||||||||||||||||||||
The aggregate impact of these errors were an understatement of cash flows from operating activities of $3.2 million; an overstatement of cash flows from investing activities of $19.0 million; and an $15.8 million understatement of cash flows from financing activities for the year ended December 31, 2013. | |||||||||||||||||||||
Finally, the Company corrected the number of outstanding common shares on the face of the balance sheet and in the Statements of Stockholders’ Equity as a result of an error in the calculation of restricted shares repurchased. The number of common shares outstanding at December 31, 2013 was previously stated as 13,902,478 and has been corrected to 13,588,803. The Company also corrected its calculation of basic and diluted earnings per share for the changes to net income and an error in the calculation of the weighted average shares which resulted in an understatement of the weighted average shares by 29,626 shares and overstates the net loss per share by $0.02 per share. | |||||||||||||||||||||
The following tables present the impact of these corrections on the 2013 consolidated financial statements (in thousands, expect per share values): | |||||||||||||||||||||
Consolidated Balance Sheet - December 31, 2013 | |||||||||||||||||||||
As previously | As | ||||||||||||||||||||
reported | Reclassifications | reclassified | Adjustments | As Restated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and Cash Equivalents | $ | 18,339 | $ | — | $ | 18,339 | $ | — | $ | 18,339 | |||||||||||
Restricted Cash | 15,473 | — | 15,473 | 34,351 | 49,824 | ||||||||||||||||
Short Term Investments | — | — | — | 1,271 | 1,271 | ||||||||||||||||
Accounts Receivable | 218 | — | 218 | 78 | 296 | ||||||||||||||||
Loans Held for Sale, at Fair Value | 3,917 | — | 3,917 | (711 | ) | 3,206 | |||||||||||||||
Borrower Loans, at Fair Value | 226,238 | — | 226,238 | 6,867 | 233,105 | ||||||||||||||||
Property and Equipment, Net | 3,396 | — | 3,396 | (370 | ) | 3,026 | |||||||||||||||
Prepaid and Other Assets | 708 | — | 708 | 484 | 1,192 | ||||||||||||||||
Total Assets | 268,289 | — | 268,289 | 41,970 | 310,259 | ||||||||||||||||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' | |||||||||||||||||||||
EQUITY (DEFICIT) | |||||||||||||||||||||
Accounts Payable and Accrued Liabilities | 6,737 | (3,690 | ) | 3,047 | 341 | 3,388 | |||||||||||||||
Payable to Investors | — | 2,480 | 2,480 | 35,545 | 38,025 | ||||||||||||||||
Class Action Settlement Liability | 10,000 | — | 10,000 | (261 | ) | 9,739 | |||||||||||||||
Notes, at Fair Value | 226,794 | 1,242 | 228,036 | 6,182 | 234,218 | ||||||||||||||||
Repurchase and Indemnification Obligation | 32 | (32 | ) | — | — | — | |||||||||||||||
Repurchase Liability for Unvested Restricted Stock Awards | 609 | — | 609 | (50 | ) | 559 | |||||||||||||||
Total Liabilities | 244,172 | — | 244,172 | 41,757 | 285,929 | ||||||||||||||||
Convertible Preferred Stock | — | — | — | 44,822 | 44,822 | ||||||||||||||||
Stockholders' Equity (Deficit) | |||||||||||||||||||||
Convertible Preferred Stock | 273 | — | 273 | (273 | ) | — | |||||||||||||||
Common Stock | 75 | — | 75 | — | 75 | ||||||||||||||||
Additional Paid-In Capital | 128,140 | — | 128,140 | (44,464 | ) | 83,676 | |||||||||||||||
Less: Treasury Stock | (291 | ) | — | (291 | ) | — | (291 | ) | |||||||||||||
Accumulated Deficit | (104,080 | ) | — | (104,080 | ) | 128 | (103,952 | ) | |||||||||||||
Total Stockholders' Equity (Deficit) | 24,117 | — | 24,117 | (44,609 | ) | (20,492 | ) | ||||||||||||||
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | $ | 268,289 | $ | — | $ | 268,289 | $ | 41,970 | $ | 310,259 | |||||||||||
Consolidated Statement of Operations – Year ended December 31, 2013 | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
Revenues | |||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||
Transaction Fees, Net | $ | 16,471 | $ | (1,094 | ) | $ | 15,377 | $ | (47 | ) | $ | 15,330 | |||||||||
Rebates and promotions | (1,534 | ) | 1,534 | — | — | — | |||||||||||||||
Servicing Fees, Net | — | (69 | ) | (69 | ) | 328 | 259 | ||||||||||||||
Other Revenues | — | 1,274 | 1,274 | (337 | ) | 937 | |||||||||||||||
Total Operating Revenues | 14,937 | 1,645 | 16,582 | (56 | ) | 16,526 | |||||||||||||||
Interest Income | |||||||||||||||||||||
Interest Income on Borrower Loans | 35,526 | (609 | ) | 34,917 | 78 | 34,995 | |||||||||||||||
Interest Expense on Notes | (33,072 | ) | 118 | (32,954 | ) | (367 | ) | (33,321 | ) | ||||||||||||
Net Interest Income | 2,454 | (491 | ) | 1,963 | (289 | ) | 1,674 | ||||||||||||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 877 | — | 877 | (696 | ) | 181 | |||||||||||||||
Total Net Revenues | 18,268 | 1,154 | 19,422 | (1,041 | ) | 18,381 | |||||||||||||||
Cost of Revenues | |||||||||||||||||||||
Cost of Services | (2,056 | ) | 2,056 | — | — | — | |||||||||||||||
Provision for repurchase and indemnification obligation | (118 | ) | 118 | — | — | — | |||||||||||||||
(2,174 | ) | 2,174 | — | — | — | ||||||||||||||||
Expenses | — | ||||||||||||||||||||
Compensation and benefits | 13,079 | (13,079 | ) | — | — | — | |||||||||||||||
Marketing and advertising | 14,851 | (14,851 | ) | — | — | — | |||||||||||||||
Depreciation and amortization | 961 | (961 | ) | — | — | — | |||||||||||||||
Professional services | 1,979 | (1,979 | ) | — | — | — | |||||||||||||||
Facilities and maintenance | 1,764 | (1,764 | ) | — | — | — | |||||||||||||||
Class action settlement | 10,000 | (10,000 | ) | — | — | — | |||||||||||||||
Loss on impairment | 62 | (62 | ) | — | — | — | |||||||||||||||
Other | 1,733 | (1,733 | ) | — | — | — | |||||||||||||||
Origination and Servicing | — | 7,465 | 7,465 | (1,081 | ) | 6,384 | |||||||||||||||
Sales and Marketing | — | 16,740 | 16,740 | (9 | ) | 16,731 | |||||||||||||||
General and Administrative | — | 22,398 | 22,398 | (125 | ) | 22,273 | |||||||||||||||
Total Expenses | 44,429 | 2,174 | 46,603 | (1,215 | ) | 45,388 | |||||||||||||||
Interest income | 3 | (3 | ) | — | — | — | |||||||||||||||
Other income | 1,151 | (1,151 | ) | — | — | — | |||||||||||||||
Net Loss | $ | (27,181 | ) | $ | — | $ | (27,181 | ) | $ | 174 | $ | (27,007 | ) | ||||||||
Consolidated Statement of Cash Flows – Year ended December 31, 2013 | |||||||||||||||||||||
As previously | |||||||||||||||||||||
reported | Adjustments | As Restated | |||||||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||||||
Net Loss | $ | (27,181 | ) | $ | 174 | $ | (27,007 | ) | |||||||||||||
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | |||||||||||||||||||||
Change in Fair Value of Borrower Loans Receivable | 4,856 | 5,705 | 10,561 | ||||||||||||||||||
Change in Fair Value of Loans Held For Sale | 1 | (56 | ) | (55 | ) | ||||||||||||||||
Change in Fair Value of Notes | (5,734 | ) | (5,793 | ) | (11,527 | ) | |||||||||||||||
Depreciation and Amortization | 961 | 133 | 1,094 | ||||||||||||||||||
Change in Servicing Rights | — | (329 | ) | (329 | ) | ||||||||||||||||
Stock-Based Compensation Expense | 229 | 17 | 246 | ||||||||||||||||||
Loss on Impairment of Property and Equipment | 62 | 237 | 299 | ||||||||||||||||||
Class Action Settlement Liability | 10,000 | (261 | ) | 9,739 | |||||||||||||||||
Purchases of loans held sale | — | (184,807 | ) | (184,807 | ) | ||||||||||||||||
Proceeds from the sale of loans held for sale | — | 181,656 | 181,656 | ||||||||||||||||||
Changes in Operating Assets and Liabilities: | |||||||||||||||||||||
Restricted Cash Except for those Related to Investing Activities | (9,524 | ) | (11,681 | ) | (21,205 | ) | |||||||||||||||
Accounts Receivable | (126 | ) | (130 | ) | (256 | ) | |||||||||||||||
Prepaid and Other Assets | (332 | ) | 12 | (320 | ) | ||||||||||||||||
Accounts Payable and Accrued Liabilities | 1,962 | (2,731 | ) | (769 | ) | ||||||||||||||||
Payable to Investors | — | 21,028 | 21,028 | ||||||||||||||||||
Net cash used in Operating Activities | (24,826 | ) | 3,174 | (21,652 | ) | ||||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||
Purchase of Borrower Loans Held at Fair Value | (341,176 | ) | 171,317 | (169,859 | ) | ||||||||||||||||
Principal Payments of Borrower Loans Held at Fair Value | 105,692 | (15,638 | ) | 90,054 | |||||||||||||||||
Proceeds from Sale of Borrower Loans Held at Fair Value | 171,290 | (171,290 | ) | — | |||||||||||||||||
Purchases of Property and Equipment | (2,889 | ) | 175 | (2,714 | ) | ||||||||||||||||
Maturities of Short Term Investments | 1,000 | 1,619 | 2,619 | ||||||||||||||||||
Purchases of Short Term Investments | — | (1,271 | ) | (1,271 | ) | ||||||||||||||||
Repayment of Loans Held for Investment at Fair Value | 143 | (143 | ) | — | |||||||||||||||||
Origination of Loans Held for Investment at Fair Value | (14,296 | ) | 14,296 | — | |||||||||||||||||
Proceeds from sale of Borrower Loans at Fair Value | 10,410 | (10,410 | ) | — | |||||||||||||||||
Changes in Restricted Cash Related to Investing Activities | — | (7,685 | ) | (7,685 | ) | ||||||||||||||||
Net Cash Used in Investing Activities | (69,826 | ) | (19,030 | ) | (88,856 | ) | |||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Proceeds from Issuance of Notes Held at Fair Value | 169,742 | 844 | 170,586 | ||||||||||||||||||
Payment of Notes Held at Fair Value | (104,692 | ) | 15,011 | (89,681 | ) | ||||||||||||||||
Proceeds from Issuance of Convertible Preferred Stock, Net | 44,822 | — | 44,822 | ||||||||||||||||||
Proceeds from Early Exercise of Stock Options | 650 | 44 | 694 | ||||||||||||||||||
Repurchase of Restricted Stock | (41 | ) | (45 | ) | (86 | ) | |||||||||||||||
Proceeds from Exercise of Vested Stock Options | 210 | 2 | 212 | ||||||||||||||||||
Net Cash Provided by Financing Activities | 110,691 | 15,856 | 126,547 | ||||||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 16,039 | — | 16,039 | ||||||||||||||||||
Cash and Cash Equivalents at Beginning of the Year | 2,300 | — | 2,300 | ||||||||||||||||||
Cash and Cash Equivalents at end of the year | $ | 18,339 | $ | 18,339 | |||||||||||||||||
Cash Paid for Interest | $ | — | $ | 35,027 | $ | 35,027 | |||||||||||||||
Non-Cash Investing Activity- Accrual for Property and Equipment, Net | $ | — | $ | 175 | $ | 175 | |||||||||||||||
Prosper Funding LLC [Member] | |||||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||||
Prior Period Adjustments | 10 | Prior Period Adjustments | |||||||||||||||||||
Subsequent to the issuance of our consolidated financial statements for the year ended December 31, 2013 certain errors were discovered and the December 31, 2013 balances presented herein have been restated to correct these errors. These errors are described below and in the tables that follow. | |||||||||||||||||||||
Certain bank accounts were previously not recorded on the balance sheet as of December 31, 2013. The use of the cash in these bank accounts is restricted and may only be used by the Company to fund Borrower Loans, at Fair Value on which investors have bid. The cash in these bank accounts should have been recognized as restricted cash on our Balance Sheet and a related Payable to Investors should also have been recognized. This resulted in an understatement of Restricted Cash and Payable to Investors of $35.6 million. | |||||||||||||||||||||
Additionally, the Company also discovered a misclassification related to the presentation of interest receivable and payable. Previously these two amounts were incorrectly netted against each other. These amounts should have been recorded gross and as a result Borrower Loans and Notes were both understated by $1.9 million. | |||||||||||||||||||||
The Company also discovered that the fair value of the Borrower Loans and Notes were understated as a result of inappropriately aggregating certain loans when determining the fair value of Borrower Loans and Notes. This resulted in an understatement of the Borrower loans of $4.8 million and the Notes of $4.6million at December 31, 2013. | |||||||||||||||||||||
Additionally, the Company discovered that it had not recorded Notes issued on the correct date, resulting in an understatement of the Notes balance by $0.8 million and an overstatement of investor payables by $0.8 million. | |||||||||||||||||||||
Additionally the Company discovered errors related to timing of when payments were applied to Note balances. This resulted in an overstatement of the Note balances and an understatement of the investor payable balance, both for $1.4 million at December 31, 2013 | |||||||||||||||||||||
Additionally, the Company discovered certain errors in its valuation of servicing assets and liabilities which resulted in an overstatement of net loan servicing rights and an understatement of the gain recognized on the sale of loans which was included in other revenues for the year ended December 31, 2013 by approximately $0.25 million. Furthermore, the Company inappropriately classified loan servicing rights in Borrower Loans Receivable at Fair Value. The Company corrected this error by reclassifying the gross serving assets of $0.4 million to Prepaid and Other Assets and recognized the servicing liabilities of $0.17 million in Accounts Payable and Other Liabilities. | |||||||||||||||||||||
In addition to the restatements described above, the Company has made other corrections, some of which were previously identified, but were not corrected because management had determined they were not material, individually or in the aggregate, to our consolidated financial statements. These corrections related to the fair value of loans held for investment, amortization of internal use software, reclassification of certain loans from loans held for investment to Borrower Loans and estimation of various accruals. The effect of correcting these errors for the fiscal year ended December 31, 2013 is summarized below. | |||||||||||||||||||||
Additionally, PFL discovered the following classification errors within its Condensed Consolidated Statement of Cash Flows for the year ended December 31, 2013: | |||||||||||||||||||||
× | Changes in certain Restricted Cash balances related to investing activities were inappropriately classified as changes in cash flows from operating activities rather than changes in cash flows from investing activities. | ||||||||||||||||||||
× | Cash flows from the principal payments and proceeds from sale related to Borrower Loans held for sale were inappropriately classified within cash flows from investing activities rather than cash flows from operating activities. | ||||||||||||||||||||
× | A portion of the change in fair value of Borrower Loans and Notes was inappropriately reflected as a cash flow from investing and financing activities, respectively, rather than an adjustment to reconcile net income to net cash used in operating activities. | ||||||||||||||||||||
× | Other changes related to the correction of errors in the balance sheet and statement of operations as described above. | ||||||||||||||||||||
The following tables present the impact of these corrections on the 2013 consolidated financial statements (in thousands, expect per share values): | |||||||||||||||||||||
Condensed Consolidated Balance Sheet - December 31, 2013 | |||||||||||||||||||||
As previously | As | ||||||||||||||||||||
reported | Reclassifications | Reclassified | Adjustments | As restated | |||||||||||||||||
Assets | |||||||||||||||||||||
Cash and Cash Equivalents | $ | 5,789 | $ | — | $ | 5,789 | $ | — | $ | 5,789 | |||||||||||
Restricted Cash | 12,299 | — | 12,299 | 34,351 | 46,650 | ||||||||||||||||
Short Term Investments | — | — | — | 1,271 | 1,271 | ||||||||||||||||
Loans Held for Sale, at Fair Value | 3,917 | — | 3,917 | (711 | ) | 3,206 | |||||||||||||||
Borrower Loans Receivable, at Fair Value | 226,238 | — | 226,238 | 6,866 | 233,104 | ||||||||||||||||
Property and Equipment, Net | 1,980 | — | 1,980 | (370 | ) | 1,610 | |||||||||||||||
Other Assets | 14 | — | 14 | 429 | 443 | ||||||||||||||||
Total Assets | 250,237 | — | 250,237 | 41,836 | 292,073 | ||||||||||||||||
Liabilities and Member's Equity | |||||||||||||||||||||
Accounts Payable and Accrued Liabilities | 3,712 | (3,690 | ) | 22 | 383 | 405 | |||||||||||||||
Payable to Investors | — | 2,480 | 2,480 | 35,541 | 38,021 | ||||||||||||||||
Notes, at Fair Value | 226,794 | 1,242 | 228,036 | 6,182 | 234,218 | ||||||||||||||||
Repurchase and Indemnification Obligation | 32 | (32 | ) | — | — | — | |||||||||||||||
Related Party Payable | 205 | — | 205 | — | 205 | ||||||||||||||||
Total Liabilities | 230,743 | — | 230,743 | 42,106 | 272,849 | ||||||||||||||||
Member's Equity | |||||||||||||||||||||
Member's Equity | 16,076 | — | 16,076 | (240 | ) | 15,836 | |||||||||||||||
Retained Earnings (Accumulated Deficit) | 3,418 | — | 3,418 | (30 | ) | 3,388 | |||||||||||||||
Total Member's Equity | 19,494 | — | 19,494 | (270 | ) | 19,224 | |||||||||||||||
Total Liabilities and Member's Equity | $ | 250,237 | $ | — | $ | 250,237 | $ | 41,836 | $ | 292,073 | |||||||||||
Consolidated Statement of Operations – Year ended December 31, 2013 | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
Revenues | |||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||
Administration Fee Revenue – Related Party | $ | 7,632 | $ | — | $ | 7,632 | $ | — | $ | 7,632 | |||||||||||
Servicing Income, Net | — | 397 | 397 | (25 | ) | 372 | |||||||||||||||
Other Revenues | — | 28 | 28 | 205 | 233 | ||||||||||||||||
Total Operating Revenues | 7,632 | 425 | 8,057 | 180 | 8,237 | ||||||||||||||||
Interest Income on Borrower Loans | 32,862 | (397 | ) | 32,465 | 140 | 32,605 | |||||||||||||||
Interest Expense on Notes | (30,564 | ) | — | (30,564 | ) | (192 | ) | (30,756 | ) | ||||||||||||
Net Interest Income | 2,298 | (397 | ) | 1,901 | (52 | ) | 1,849 | ||||||||||||||
Change in Fair Value on Borrower Loans, Loans Held for Sale and Notes, net | 877 | — | 877 | (28 | ) | 849 | |||||||||||||||
Total Net Revenues | 10,807 | (397 | ) | 10,835 | 100 | 10,935 | |||||||||||||||
Cost of Revenues | |||||||||||||||||||||
Cost of Services | (1,270 | ) | 1,270 | — | — | — | |||||||||||||||
Provision for repurchase and indemnification obligation | (83 | ) | 83 | — | — | — | |||||||||||||||
(1,353 | ) | 1,353 | — | — | — | ||||||||||||||||
Expenses | — | — | |||||||||||||||||||
Servicing | — | 1,891 | 1,891 | 131 | 2,022 | ||||||||||||||||
Administration Fee – Related Party | 5,053 | 5,053 | — | 5,053 | |||||||||||||||||
Depreciation and Amortization | 538 | (538 | ) | — | — | — | |||||||||||||||
Professional Services | 26 | (26 | ) | — | — | — | |||||||||||||||
Other Operating Expenses | 242 | (242 | ) | — | — | — | |||||||||||||||
General and Administration | — | 268 | 268 | (1 | ) | 267 | |||||||||||||||
Total Expenses | 5,859 | 1,353 | 7,212 | 130 | 7,342 | ||||||||||||||||
Other income | 28 | (28 | ) | — | — | — | |||||||||||||||
Total Net Income | $ | 3,623 | $ | — | $ | 3,623 | $ | (30 | ) | $ | 3,593 | ||||||||||
Condensed Consolidated Statements of Cash Flows – Year ended December 31, 2013 | |||||||||||||||||||||
As previously | |||||||||||||||||||||
reported | Adjustments | As restated | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net Income | $ | 3,623 | $ | (30 | ) | $ | 3,593 | ||||||||||||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: | |||||||||||||||||||||
Change in Fair Value of Notes | (5,734 | ) | (5,646 | ) | (11,380 | ) | |||||||||||||||
Change in Fair Value of Borrower Loans Receivable | 4,856 | 5,776 | 10,632 | ||||||||||||||||||
Change in Fair Value of Loans Held for Sale | 1 | (45 | ) | (44 | ) | ||||||||||||||||
Depreciation and Amortization | 538 | 133 | 671 | ||||||||||||||||||
Change in Servicing Rights | — | (292 | ) | (292 | ) | ||||||||||||||||
Purchase of loans held for at fair value | — | (184,807 | ) | (184,807 | ) | ||||||||||||||||
Proceeds from sales of Loans Held for Sale at fair value | — | 181,645 | 181,645 | ||||||||||||||||||
Changes in Operating Assets and Liabilities: | |||||||||||||||||||||
Restricted Cash | (8,155 | ) | (9,291 | ) | (17,446 | ) | |||||||||||||||
Other Assets | (13 | ) | 5 | (8 | ) | ||||||||||||||||
Accounts Payable and Accrued Liabilities | 2,924 | (2,817 | ) | 107 | |||||||||||||||||
Payable to Investors | — | 19,925 | 19,925 | ||||||||||||||||||
Net Related Party Payable | 205 | — | 205 | ||||||||||||||||||
Net Cash Used in Operating Activities | (1,755 | ) | 4,556 | 2,801 | |||||||||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||||||
Purchase of Borrower Loans Receivable Held at Fair Value | (331,353 | ) | 171,316 | (160,037 | ) | ||||||||||||||||
Principle Payment of Borrower Loans Receivable Held at Fair Value | 99,313 | (99,313 | ) | — | |||||||||||||||||
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | 171,290 | (87,613 | ) | 83,677 | |||||||||||||||||
Repayment of Loans Held for Investment at Fair Value | 143 | (143 | ) | — | |||||||||||||||||
Origination of Loans Held for Investment at Fair Value | (14,296 | ) | 14,296 | — | |||||||||||||||||
Proceeds from sale of Borrower Loans at Fair Value | 10,410 | (10,410 | ) | — | |||||||||||||||||
Purchases of Property and Equipment | (1,798 | ) | 1 | (1,797 | ) | ||||||||||||||||
Changes in Restricted Cash Related to Investing Activities | — | (8,576 | ) | (8,576 | ) | ||||||||||||||||
Net Cash Used in Investing Activities | (66,291 | ) | (20,442 | ) | (86,733 | ) | |||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Proceeds from Issuance of Notes Held at Fair Value | 159,921 | 843 | 160,764 | ||||||||||||||||||
Payment of Notes Held at Fair Value | (97,967 | ) | 15,043 | (82,924 | ) | ||||||||||||||||
Cash infusion from parent | 10,001 | — | 10,001 | ||||||||||||||||||
Net Cash Included in Transfer of Assets from Parent | 1,875 | — | 1,875 | ||||||||||||||||||
Net Cash Provided by Financing Activities | 73,830 | 15,886 | 89,716 | ||||||||||||||||||
Net Increase in Cash and Cash Equivalents | 5,784 | — | 5,784 | ||||||||||||||||||
Cash and Cash Equivalents at Beginning of the Period | 5 | — | 5 | ||||||||||||||||||
Cash and Cash Equivalents at End of the Period | 5,789 | — | 5,789 | ||||||||||||||||||
Supplemental Disclosure of Cash Flow Information: | |||||||||||||||||||||
Restricted Cash | 4,144 | 16,484 | 20,628 | ||||||||||||||||||
Short Term Investments | — | 1,271 | 1,271 | ||||||||||||||||||
Borrower Loans at Fair Value | 170,518 | (3,142 | ) | 167,376 | |||||||||||||||||
Property and Equipment, net | 721 | (237 | ) | 484 | |||||||||||||||||
Accrued Liabilities | (820 | ) | 689 | (131 | ) | ||||||||||||||||
Payable to Investors | — | (18,096 | ) | (18,096 | ) | ||||||||||||||||
Notes at Fair Value | (170,573 | ) | 2,815 | (167,758 | ) | ||||||||||||||||
Non-Cash Transfer | 3,990 | (216 | ) | 3,774 | |||||||||||||||||
Cash Transferred | 1,875 | — | 1,875 | ||||||||||||||||||
Total Transfer of Net Non-Cash Assets from PMI | 5,865 | (213 | ) | 5,649 | |||||||||||||||||
Cash Paid for Interest | — | 32,154 | 32,154 | ||||||||||||||||||
Non-Cash Financing Activity, Distribution to Parent | — | 24 | 24 | ||||||||||||||||||
Quarterly_Financial_Informatio
Quarterly Financial Information (unaudited) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information (unaudited) | 16 | Quarterly Financial Information (unaudited) | |||||||||||||||||||
Subsequent to the issuance of the condensed consolidated financial statements for the nine months ended September 30, 2014, the Company identified errors as described in Note 16 that affected the interim condensed financial statements as of and for all interim periods within the years ended December 31, 2014 and 2013. Accordingly, the previously issued condensed consolidated financial statements as and for the periods ended March 31, 2013, June 30, 2013, September 30, 2013, March 31, 2014, June 30, 2014 and September 30, 2014 are restated to correct for these errors that are described below and summarized in the tables that follow. | |||||||||||||||||||||
Certain bank accounts were previously not recorded on the balance sheets. The use of the cash in these bank accounts is restricted and may only be used by the Company to fund “Borrower Loans, at Fair Value” on which investors have bid. The cash in these bank accounts should have been recognized as restricted cash on our Balance Sheet and a related payable to investors should also have been recognized. This resulted in an understatement of restricted cash and payable to investors. | |||||||||||||||||||||
Additionally, the Company discovered that certain fees that the Company pays to WebBank were incorrectly classified as expenses. Since WebBank is a customer of the Company and the Company earns transaction fees from WebBank any cash consideration paid to WebBank should be recorded as a reduction of the transaction fees earned by the Company. This resulted in an overstatement of transaction fee revenues and origination and servicing expenses. | |||||||||||||||||||||
The Company also discovered that certain rebates offered on the sale of loans and Notes were incorrectly classified as transaction fee revenue and should have been classified as other revenue or change in fair value of borrower loans, loans held for sale and notes. This resulted in an understatement of transaction fee revenues, an overstatement of other revenues and an overstatement of change in fair values of borrower loans, loans held for sale and notes. | |||||||||||||||||||||
The Company also discovered that the Convertible Preferred Stock was incorrectly classified within permanent stockholders’ equity in its consolidated balance sheet for the interim periods described above. Since the Convertible Preferred Stockholders are entitled to receive their liquidation preference upon a change-in-control transaction the Convertible Preferred Stock should be classified as temporary equity. This resulted in a reclassification of the Convertible Preferred Stock from permanent equity to temporary equity of $19.9 million as of March 31, 2013 and June 30, 2013, $44.9 million as of September 30, 2013, December 31, 2013 and March 31, 2014, and $114.8 million as of June 30 2014. There was no impact as of September 30, 2014. | |||||||||||||||||||||
Additionally, the Company discovered certain errors in its valuation of servicing assets and liabilities which resulted in an overstatement of net loan servicing rights and an understatement of the gain recognized on the sale of loans which was included in other revenues. Furthermore, the Company inappropriately classified loan servicing rights in “Borrower Loans Receivable at Fair Value”. The Company corrected this error by reclassifying the gross serving assets to “Prepaid and Other Assets and recognized the servicing liabilities in “Accounts Payable and Other Liabilities. | |||||||||||||||||||||
The Company also discovered an error related to measurement of the Class Action Settlement Liability. Upon the courts preliminary approval of the settlement during the quarter ended December 31, 2013, this liability became payable at fixed future dates and therefore the Company should have recognized the liability based on the present value of the future payments rather than the gross amount of such future payments. This error resulted in an overstatement of the Class Action Settlement Liability and the Class Action Settlement expense recognized. | |||||||||||||||||||||
Additionally, the Company also discovered a misclassification related to the presentation of interest receivable and payable. Previously these two amounts were incorrectly netted against each other. These amounts should have been recorded gross and as a result Borrower Loans and Notes resulting both to be understated. | |||||||||||||||||||||
The Company also discovered that the fair value of the Borrower Loans and Notes were understated as a result of inappropriately aggregating certain loans when determining the fair value of Borrower Loans and Notes. This resulted in an understatement of the Borrower loans and the Notes. | |||||||||||||||||||||
Additionally, the Company discovered that it had not recorded Notes issued on the correct date, resulting in an understatement of the Notes balance and an overstatement of investor payables. | |||||||||||||||||||||
Additionally the Company discovered errors related to timing of when payments were applied to Note balances. This resulted in an overstatement of the Note balances and an understatement of the investor payable balance. | |||||||||||||||||||||
The Company also discovered errors related to internal use software and web site development costs including than an impairment that was not recorded and assets were being amortized over a time period that exceeded their useful life which understated amortization. As a result property and equipment was overstated. | |||||||||||||||||||||
In addition to the restatements described above, the Company has made other corrections, some of which were previously identified, but were not corrected because management had determined they were not material, individually or in the aggregate, to our consolidated financial statements. These corrections related to the fair value of loans held for investment, reclassification of certain loans from loans held for investment to Borrower Loans, amortization of prepaid assets, estimation of various accruals and a correction for vesting of options that were early exercised. | |||||||||||||||||||||
Lastly, the Company discovered the following classification errors within its Condensed Consolidated Statement of Cash Flows: | |||||||||||||||||||||
× | Changes in certain Restricted Cash balances related to investing activities were inappropriately classified as changes in cash flows from operating activities rather than changes in cash flows from investing activities. | ||||||||||||||||||||
× | Cash flows from the principal payments and proceeds from sale related to Borrower Loans held for sale were inappropriately classified within cash flows from investing activities rather than cash flows from operating activities. | ||||||||||||||||||||
× | A portion of the change in fair value of Borrower Loans and Notes was inappropriately reflected as a cash flow from investing and financing activities, respectively, rather than an adjustment to reconcile net income to net cash used in operating activities. | ||||||||||||||||||||
× | The proceeds from sale of borrower loans held at fair value were netted against purchase of borrower loans at fair value. | ||||||||||||||||||||
× | Other changes related to the correction of errors in the balance sheet and statement of operations as described above. | ||||||||||||||||||||
The following tables present the impact of these corrections and corrections of other immaterial errors on the interim periods in the fiscal years ended December 31, 2014 and 2013 (in $ thousands, expect per share values and number of shares): | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||||||||
Total Revenues | — | * | — | — | — | ||||||||||||||||
Operating Revenues | 25,129 | * | 25,129 | (920 | ) | 24,209 | |||||||||||||||
Cost of Revenues | — | * | — | — | — | ||||||||||||||||
Net Revenues | 26,043 | * | 26,043 | (918 | ) | 25,125 | |||||||||||||||
Total Expenses | 23,319 | * | 23,319 | (1,538 | ) | 21,781 | |||||||||||||||
Other Income (Expenses), Net | — | * | — | — | — | ||||||||||||||||
Net Income | 2,724 | * | 2,724 | 620 | 3,344 | ||||||||||||||||
Basic and Diluted Earnings (Loss) per Share | (1.31 | ) | * | (1.31 | ) | 0.07 | (1.24 | ) | |||||||||||||
Basic and Diluted Shares | 9,280,334 | * | 9,280,334 | — | 9,280,334 | ||||||||||||||||
*The presentation of revenues for the three months ended September 30, 2014 represents the current presentation so no reclassification is needed. | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended June 30, 2014 | |||||||||||||||||||||
Total Revenues | 17,285 | (17,285 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 16,371 | 16,371 | 1,016 | 17,387 | ||||||||||||||||
Cost of Revenues | 821 | (821 | ) | — | — | — | |||||||||||||||
Net Revenues | 16,464 | 913 | 17,377 | 916 | 18,293 | ||||||||||||||||
Total Expenses | 16,559 | 823 | 17,382 | 197 | 17,579 | ||||||||||||||||
Other Income (Expenses), Net | 92 | (92 | ) | — | — | — | |||||||||||||||
Net Income | (3 | ) | (2 | ) | (5 | ) | 719 | 714 | |||||||||||||
Basic and Diluted Earnings per Share | — | — | — | 0.08 | 0.08 | ||||||||||||||||
Basic and Diluted Shares | 9,155,199 | — | 9,155,199 | — | 9,155,199 | ||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||
Total Revenues | 9,876 | (9,876 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 9,265 | 9,265 | (36 | ) | 9,229 | |||||||||||||||
Cost of Revenues | 587 | (587 | ) | — | — | — | |||||||||||||||
Net Revenues | 9,289 | 886 | 10,175 | (196 | ) | 9,979 | |||||||||||||||
Total Expenses | 11,754 | 587 | 12,341 | 356 | 12,697 | ||||||||||||||||
Other Income (Expenses), Net | 299 | (299 | ) | — | — | — | |||||||||||||||
Net Loss | (2,166 | ) | — | (2,166 | ) | (552 | ) | (2,718 | ) | ||||||||||||
Basic and Diluted Earnings (Loss) per Share | (0.32 | ) | — | (0.32 | ) | (0.08 | ) | (0.40 | ) | ||||||||||||
Basic and Diluted Shares | 6,868,153 | — | 6,868,153 | — | 6,868,153 | ||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended December 31, 2013 | |||||||||||||||||||||
Total Revenues | * | * | — | — | — | ||||||||||||||||
Operating Revenues | * | * | 7,476 | (199 | ) | 7,277 | |||||||||||||||
Cost of Revenues | * | * | — | — | — | ||||||||||||||||
Net Revenues | * | * | 8,460 | (370 | ) | 8,090 | |||||||||||||||
Total Expenses | * | * | 10,824 | (405 | ) | 10,419 | |||||||||||||||
Other Income (Expenses), Net | * | * | — | — | — | ||||||||||||||||
Net Loss | * | * | (2,364 | ) | 35 | (2,329 | ) | ||||||||||||||
*The three months ending December 31, 2013 were not previously presented as we are a smaller reporting company. | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||
Total Revenues | 4,542 | (4,542 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 4,405 | 4,405 | 111 | 4,516 | ||||||||||||||||
Cost of Revenues | 450 | (450 | ) | — | — | ||||||||||||||||
Net Revenues | 4,092 | 862 | 4,954 | (185 | ) | 4,769 | |||||||||||||||
Total Expenses | 9,467 | 450 | 9,917 | (236 | ) | 9,681 | |||||||||||||||
Other Income (Expenses), Net | 412 | (412 | ) | — | — | — | |||||||||||||||
Net Loss | (4,963 | ) | — | (4,963 | ) | 51 | (4,912 | ) | |||||||||||||
Basic and Diluted Earnings (Loss) per Share | (0.72 | ) | — | (0.72 | ) | 0 | (0.72 | ) | |||||||||||||
Basic and Diluted Shares | 6,927,648 | — | 6,868,153 | — | 6,868,153 | ||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended June 30, 2013 | |||||||||||||||||||||
Total Revenues | 3,405 | (3,405 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 3,257 | 3,257 | 81 | 3,338 | ||||||||||||||||
Cost of Revenues | 550 | (550 | ) | — | — | — | |||||||||||||||
Net Revenues | 2,855 | 1,133 | 3,988 | (228 | ) | 3,760 | |||||||||||||||
Total Expenses | 19,030 | 611 | 19,641 | (286 | ) | 19,355 | |||||||||||||||
Other Income (Expenses), Net | 522 | (522 | ) | — | — | — | |||||||||||||||
Net Loss | (15,653 | ) | — | (15,653 | ) | 57 | (15,596 | ) | |||||||||||||
Basic and Diluted Earnings (Loss) per Share | (2.39 | ) | (0 | ) | (2.39 | ) | 0.01 | (2.38 | ) | ||||||||||||
Basic and Diluted Shares | 6,553,785 | — | 6,553,785 | — | 6,553,785 | ||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||
Total Revenues | 1,703 | (1,703 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 1,443 | 1,443 | (48 | ) | 1,395 | |||||||||||||||
Cost of Revenues | 609 | (609 | ) | — | — | — | |||||||||||||||
Net Revenues | 1,094 | 927 | 2,021 | (259 | ) | 1,762 | |||||||||||||||
Total Expenses | 5,610 | 610 | 6,220 | (288 | ) | 5,932 | |||||||||||||||
Other Income (Expenses), Net | 317 | (317 | ) | — | — | — | |||||||||||||||
Net Loss | (4,199 | ) | — | (4,199 | ) | 29 | (4,170 | ) | |||||||||||||
Basic and Diluted Earnings (Loss) per Share | (0.77 | ) | — | (0.77 | ) | 0.01 | (0.76 | ) | |||||||||||||
Basic and Diluted Shares | 5,480,850 | — | 5,480,850 | — | 5,480,850 | ||||||||||||||||
Prosper Funding LLC [Member] | |||||||||||||||||||||
Quarterly Financial Information (unaudited) | 11 | Quarterly Financial Information (unaudited) | |||||||||||||||||||
Subsequent to the issuance of the condensed consolidated financial statements for the nine months ended September 30, 2014, the Company identified errors as described in Note 16 that affected the interim condensed financial statements as of and for all interim periods within the years ended December 31, 2014 and 2013. Accordingly, the previously issued condensed consolidated financial statements as and for the periods ended March 31, 2013, June 30, 2013, September 30, 2013, March 31, 2014, June 30, 2014 and September 30, 2014 are restated to correct for these errors that are described below. | |||||||||||||||||||||
Certain bank accounts were previously not recorded on the balance sheets. The use of the cash in these bank accounts is restricted and may only be used by the Company to fund Borrower Loans, at Fair Value on which investors have bid. The cash in these bank accounts should have been recognized as Restricted Cash on our Balance Sheet and a related Payable to Investors should also have been recognized. This resulted in an understatement of restricted cash and payable to investors. | |||||||||||||||||||||
Additionally, the Company discovered certain errors in its valuation of servicing assets and liabilities which resulted in an overstatement of net loan servicing rights and an understatement of the gain recognized on the sale of loans which was included in other revenues. Furthermore, the Company inappropriately classified loan servicing rights in Borrower Loans Receivable at Fair Value. The Company corrected this error by reclassifying the gross serving assets to Prepaid and Other Assets and recognized the servicing liabilities in Accounts Payable and Other Liabilities. | |||||||||||||||||||||
The Company also discovered that the Administration Fee Related Party Expense was overstated and the Related Party Receivable was understated due to an error in the calculation of the fee. | |||||||||||||||||||||
Additionally, the Company also discovered a misclassification related to the presentation of interest receivable and payable. Previously these two amounts were incorrectly netted against each other. These amounts should have been recorded gross and as a result Borrower Loans and Notes resulting both to be understated. | |||||||||||||||||||||
The Company also discovered that the fair value of the Borrower Loans and Notes were understated as a result of inappropriately aggregating certain loans when determining the fair value of Borrower Loans and Notes. This resulted in an understatement of the Borrower loans and the Notes. | |||||||||||||||||||||
Additionally, the Company discovered that it had not recorded Notes issued on the correct date, resulting in an understatement of the Notes balance and an overstatement of investor payables. | |||||||||||||||||||||
Additionally the Company discovered errors related to timing of when payments were applied to Note balances. This resulted in an overstatement of the Note balances and an understatement of the investor payable balance. | |||||||||||||||||||||
The Company also discovered errors related to internal use software including an overstatement of assets transferred from PMI and assets were being amortized over a time period that exceeded their useful life which understated amortization. As a result Property and Equipment was overstated. | |||||||||||||||||||||
In addition to the restatements described above, the Company has made other corrections, some of which were previously identified, but were not corrected because management had determined they were not material, individually or in the aggregate, to our consolidated financial statements. These corrections related to the fair value of loans held for investment, reclassification of certain loans from loans held for investment to Borrower Loans, and estimation of various accruals and a correction for vesting of options that were early exercised. | |||||||||||||||||||||
Lastly, the Company discovered the following classification errors within its Condensed Consolidated Statement of Cash Flows: | |||||||||||||||||||||
× | Changes in certain Restricted Cash balances related to investing activities were inappropriately classified as changes in cash flows from operating activities rather than changes in cash flows from investing activities. | ||||||||||||||||||||
× | Cash flows from the principal payments and proceeds from sale related to Borrower Loans held for sale were inappropriately classified within cash flows from investing activities rather than cash flows from operating activities. | ||||||||||||||||||||
× | A portion of the change in fair value of Borrower Loans and Notes was inappropriately reflected as a cash flow from investing and financing activities, respectively, rather than an adjustment to reconcile net income to net cash used in operating activities. | ||||||||||||||||||||
Other changes related to the correction of errors in the balance sheet and statement of operations as described above. | |||||||||||||||||||||
The following tables present the impact of these corrections and corrections of other immaterial errors on the interim periods in the fiscal years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||||||||
Total Revenues | * | * | — | — | — | ||||||||||||||||
Operating Revenues | * | * | 10,783 | 284 | 11,067 | ||||||||||||||||
Cost of Revenues | * | * | — | — | — | ||||||||||||||||
Net Revenues | * | * | 11,716 | 346 | 12,062 | ||||||||||||||||
Total Expenses | * | * | 8,196 | (388 | ) | 7,808 | |||||||||||||||
Other Income | * | * | — | — | — | ||||||||||||||||
Net Income | * | * | 3,520 | 734 | 4,254 | ||||||||||||||||
*The revised revenue presentation was implemented for the three months ended September 30, 2014. | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended June 30, 2014 | |||||||||||||||||||||
Total Revenues | 7,766 | (7,766 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 6,852 | 6,852 | 1,428 | 8,280 | ||||||||||||||||
Cost of Revenues | 710 | (710 | ) | — | — | — | |||||||||||||||
Net Revenues | 7,056 | 802 | 7,858 | 1,430 | 9,288 | ||||||||||||||||
Total Expenses | 4,564 | 710 | 5,274 | 702 | 5,976 | ||||||||||||||||
Other Income | 92 | (92 | ) | — | — | — | |||||||||||||||
Net Income | 2,584 | — | 2,584 | 728 | 3,312 | ||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||
Total Revenues | 5,197 | (5,197 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 4,579 | 4,579 | 196 | 4,775 | ||||||||||||||||
Cost of Revenues | 459 | (459 | ) | — | — | — | |||||||||||||||
Net Revenues | 4,738 | 750 | 5,488 | 156 | 5,644 | ||||||||||||||||
Total Expenses | 2,941 | 459 | 3,400 | 596 | 3,996 | ||||||||||||||||
Other Income | 291 | (291 | ) | — | — | — | |||||||||||||||
Net Income | 2,088 | — | 2,088 | (440 | ) | 1,648 | |||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended December 31, 2013 | * | * | |||||||||||||||||||
Total Revenues | * | * | — | — | — | ||||||||||||||||
Operating Revenues | * | * | 3,859 | (50 | ) | 3,809 | |||||||||||||||
Cost of Revenues | * | * | — | — | — | ||||||||||||||||
Net Revenues | * | * | 4,797 | (14 | ) | 4,783 | |||||||||||||||
Total Expenses | * | * | 3,118 | 24 | 3,142 | ||||||||||||||||
Other Income | * | * | — | — | — | ||||||||||||||||
Net Income | * | * | 1,679 | (38 | ) | 1,641 | |||||||||||||||
*This period was not previously presented. | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||
Total Revenues | 2,646 | (2,646 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 2,131 | 2,131 | 157 | 2,288 | ||||||||||||||||
Cost of Revenues | 291 | (291 | ) | — | — | — | |||||||||||||||
Net Revenues | 2,355 | 324 | 2,679 | 97 | 2,776 | ||||||||||||||||
Total Expenses | 1,738 | 291 | 2,029 | 80 | 2,109 | ||||||||||||||||
Other Income | 33 | (33 | ) | — | — | — | |||||||||||||||
Net Income | 650 | — | 650 | 17 | 667 | ||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended June 30, 2013 | |||||||||||||||||||||
Total Revenues | 1,978 | (1,978 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 1,546 | 1,546 | (14 | ) | 1,532 | |||||||||||||||
Cost of Revenues | 388 | (388 | ) | — | — | — | |||||||||||||||
Net Revenues | 1,590 | 686 | 2,276 | (3 | ) | 2,273 | |||||||||||||||
Total Expenses | 810 | 388 | 1,198 | 29 | 1,227 | ||||||||||||||||
Other Income | 298 | (298 | ) | — | — | — | |||||||||||||||
Net Income | 1,078 | — | 1,078 | (32 | ) | 1,046 | |||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||
Total Revenues | 861 | (861 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 607 | 607 | — | 607 | ||||||||||||||||
Cost of Revenues | 324 | (324 | ) | — | — | — | |||||||||||||||
Net Revenues | 537 | 499 | 1,036 | 67 | 1,103 | ||||||||||||||||
Total Expenses | 525 | 324 | 849 | 15 | 864 | ||||||||||||||||
Other Income | 175 | (175 | ) | — | — | — | |||||||||||||||
Net Income | 187 | — | 187 | 52 | 239 | ||||||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Dec. 31, 2014 | ||
Subsequent Events [Abstract] | ||
Subsequent Events | 17 | Subsequent Events |
On January 23, 2015, the Company acquired American HealthCare Lending LLC for $21 million in cash. American HealthCare Lending LLC, a leading patient financing platform, gives its nationwide network of healthcare providers the ability to offer affordable payment options to consumers who would like to finance medical procedures at the point of service. This acquisition is an important part of our strategy to grow awareness and expand our product offerings and capabilities into new vertical markets. The initial accounting for this acquisition was not complete as of March 30, 2015. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Basis of Presentation | Basis of Presentation | ||||||||||||||||
The accompanying consolidated financial statements include the accounts of Prosper Marketplace Inc. and its wholly owned subsidiary Prosper Funding LLC. All intercompany balances and transactions between PFL and PMI have been eliminated in consolidation. PMI and PFL’s financial statements have been prepared in accordance with U.S generally accepted accounting principles (U.S. GAAP). | |||||||||||||||||
Use of Estimates | Use of Estimates | ||||||||||||||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures, including contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates, judgments and assumptions include but are not limited to the following: valuation of Loans Held for Sale, Borrower Loans and associated Notes, valuation of servicing rights, valuation allowance on deferred tax assets, stock-based compensation expense, and contingent liabilities. Actual results could differ from those estimates, and those differences could be material. | |||||||||||||||||
Certain Risks and Concentrations | Certain Risks | ||||||||||||||||
In the normal course of its business, the Company encounters two significant types of risk: credit and regulatory. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, and restricted cash. The Company places cash, cash equivalents, and restricted cash with high-quality financial institutions and is exposed to credit risk in the event of default by these institutions to the extent the amount recorded on the balance sheet exceeds federally insured amounts. The Company performs periodic evaluations of the relative credit standing of these financial institutions and has not sustained any credit losses from instruments held at these financial institutions. | |||||||||||||||||
To the extent that payments on Borrower Loans (including Borrower Loans that have been sold) are not made, interest income and/or servicing income will be reduced. A series of Notes corresponding to a particular Borrower Loan is wholly dependent on the repayment of such Borrower Loan. As a result, the Company does not bear the risk on such Borrower Loan. | |||||||||||||||||
The Company is subject to various regulatory requirements. The failure to appropriately identify and address these regulatory requirements could result in certain discretionary actions by regulators that could have a material effect on the Company’s consolidated financial position and results of operations (See Note 11—Commitments and Contingencies—Securities Law Compliance). | |||||||||||||||||
Reclassifications | Reclassifications | ||||||||||||||||
During the year ended December 31, 2014, the Company changed the presentation of its revenues in the consolidated statement of operations. A new line called “Servicing Fees, Net” was created and the servicing fees related to Borrower Loans sold directly to third parties that were previously included in interest income were reclassified to this new line. Furthermore, the “Rebates and Promotions” line was removed, with the amounts in that line reclassified to the “Servicing Fees, Net” or “Transaction Fees, Net” or “Other Revenues” lines based on the underlying transactions. Also, the “Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net” was moved into the total revenues subtotal. The Company also changed the definitions used to classify expenses. Expenses were previously classified as cost of services, compensation and benefits, marketing and advertising, depreciation and amortization, professional services, facilities and maintenance, class action settlement, loss on impairment of fixed assets and other. The revised classification approach replaces the previous classifications with origination and servicing, sales and marketing, and general and administration. The changes had no impact to the total expenses or net income. Prior period amounts have been reclassified to conform to the current presentation. Lastly, the subtotals were realigned to reflect the new presentation. Management believes these changes make the income statement more useful for the readers of the financial statements and comparable with the Company’s competitors. | |||||||||||||||||
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities | ||||||||||||||||
The determination of whether to consolidate a variable interest entity (“VIE”) in which we have a variable interest requires a significant amount of analysis and judgment whether we are the primary beneficiary of a VIE via a controlling financial interest in the VIE. A controlling financial interest in a VIE exists if we have both the power to direct the VIE’s activities that most significantly affect the VIE’s economic performance and a potentially significant economic interest in the VIE. The determination of whether an entity is a VIE considers factors, such as (i) whether the entity’s equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support or (ii) when a holder’s equity investment at risk lacks any of the following characteristics of a controlling financial interest: the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the entity’s success, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the legal entity. | |||||||||||||||||
As a result of the nature of the retained servicing rights on the sale of Borrower Loans, we are a variable interest holder in certain special purposes entities that purchase these Borrower Loans. For all of these entities we either do not have the power to direct the activities that most significantly affect the VIE’s economic performance or we do not have a potentially significant economic interest in the VIE. In no case are we the primary beneficiary and as a result none of these entities are consolidated on the Company’s consolidated financial statements. | |||||||||||||||||
Management regularly reviews and reconsiders its previous conclusions regarding the status of an entity as a VIE and whether we are required to consolidate such VIE in the consolidated financial statements. | |||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||||||
Cash and cash equivalents include various unrestricted deposits with highly rated financial institutions in checking accounts. | |||||||||||||||||
Restricted Cash | Restricted Cash | ||||||||||||||||
Restricted cash consists primarily of cash deposits and short term certificate of deposit accounts held as collateral as required for long term leases, loan funding and servicing activities, and cash that investors or the Company has on our marketplace that has not yet been invested in loans or disbursed to the investor. | |||||||||||||||||
Fair Value Measurement | Fair Value Measurement | ||||||||||||||||
The Company adopted Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC Topic 820”), which provides a framework for measuring the fair value of assets and liabilities. ASC Topic 820 also provides guidance regarding a fair value hierarchy, which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. ASC Topic 820 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. | |||||||||||||||||
ASC Topic 820 defines fair value in terms of the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||||||
The price used to measure the fair value is not adjusted for transaction costs. Under ASC Topic 820, the fair value measurement also assumes that the transaction to sell an asset occurs in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset. The principal market is the market in which the reporting entity would sell or transfer the asset with the greatest volume and level of activity for the asset. In determining the principal market for an asset or liability under ASC Topic 820, it is assumed that the reporting entity has access to the market as of the measurement date. If no market for the asset exists or if the reporting entity does not have access to the principal market, the reporting entity should use a hypothetical market. | |||||||||||||||||
Under ASC Topic 820, assets and liabilities carried at fair value on the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value: | |||||||||||||||||
Level 1 — The valuation is based on quoted prices in active markets for identical instruments. | |||||||||||||||||
Level 2 — The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | |||||||||||||||||
Level 3 — The valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar techniques, which incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation. | |||||||||||||||||
Fair values of assets or liabilities are determined based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of quoted prices and observable inputs and to minimize the use of unobservable inputs when measuring fair value. Various valuation techniques are utilized, depending on the nature of the financial instrument, including the use of market prices for identical or similar instruments, or discounted cash flow models. When possible, active and observable market data for identical or similar financial instruments are utilized. Alternatively, fair value is determined using assumptions that management believes a market participant would use in pricing the asset or liability. | |||||||||||||||||
Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Borrower Loans, Loans Held for Sale, Accounts Receivable, Accounts Payable and Accrued Liabilities, Payable to Investors and Notes. The estimated fair values of Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short term nature. | |||||||||||||||||
The following tables present the assets and liabilities measured at fair value on a recurring basis at December 31, 2014 and 2013 (in thousands): | |||||||||||||||||
31-Dec-14 | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Inputs | Inputs | Inputs | |||||||||||||||
Assets | |||||||||||||||||
Borrower Loans | $ | — | $ | — | $ | 273,243 | $ | 273,243 | |||||||||
Restricted Cash | 76,783 | 4,517 | — | 81,300 | |||||||||||||
Short Term Investments | — | 1,274 | — | 1,274 | |||||||||||||
Loans Held for Sale | — | — | 8,463 | 8,463 | |||||||||||||
Total Assets | 76,783 | 5,791 | 281,706 | 364,280 | |||||||||||||
Liabilities | |||||||||||||||||
Notes | $ | — | $ | — | $ | 273,783 | $ | 273,783 | |||||||||
31-Dec-13 | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Inputs | Inputs | Inputs | |||||||||||||||
Assets | |||||||||||||||||
Borrower Loans | $ | — | $ | — | $ | 233,105 | $ | 233,105 | |||||||||
Restricted Cash | 49,904 | 170 | 50,074 | ||||||||||||||
Short Term Investments | — | 1,271 | — | 1,271 | |||||||||||||
Loans Held for Sale | — | — | 3,206 | 3,206 | |||||||||||||
Total Assets | 49,904 | 1,441 | 236,311 | 287,656 | |||||||||||||
Liabilities | |||||||||||||||||
Notes | $ | — | $ | — | $ | 234,218 | 234,218 | ||||||||||
As observable market prices are not available for the Borrower Loans, Loans Held for Sale and Notes, or for similar assets and liabilities, Prosper believes the Borrower Loans, Loans Held for Sale and Notes should be considered Level 3 financial instruments under ASC Topic 820. In a hypothetical transaction as of the measurement date, Prosper believes that differences in the principal marketplace in which the Borrower Loans are originated and the principal marketplace in which Prosper might offer those loans may result in differences between the originated amount of the loans and their fair value as of the transaction date. For Borrower Loans and Loans Held for Sale, the fair value is estimated using discounted cash flow methodologies based upon valuation assumptions including prepayment speeds, default rates and discount rates based on the perceived credit risk within each credit grade. | |||||||||||||||||
The obligation to pay principal and interest on any series of Notes is equal to the loan payments, if any, that are received on the corresponding Borrower Loan, net of our servicing fee which is generally 1% of the outstanding balance. The fair value election for Notes and Borrower Loans allows both the assets and the related liabilities to receive similar accounting treatment for expected losses which is consistent with the subsequent cash flows to investors that are dependent upon borrower payments. As such, the fair value of a series of Notes is approximately equal to the fair value of the corresponding Borrower Loan, adjusted for the 1.0% servicing fee and the timing of loan purchase, note issuance and borrower payments subsequently disbursed to such Note holders. As a result, the valuation of the Notes uses the same methodology and assumptions as the Borrower Loans, except that the Notes incorporate the 1% servicing fee and any differences in timing in payments. Any unrealized gains or losses on the Borrower Loans and Notes for which the fair value option has been elected is recorded as a separate line item in the statement of operations. The effective interest rate associated with a group of Notes is less than the interest rate earned on the corresponding Borrower Loan due to the 1.0% servicing fee. See Note 4 for a roll-forward and further discussion of the significant assumptions used to value Borrower Loans and Notes. | |||||||||||||||||
Borrower Loans and Notes | Borrower Loans and Notes | ||||||||||||||||
Through the Note Channel, the Company purchases Borrower Loans from WebBank then issues Notes and purchases, and holds the Borrower Loans until maturity. The obligation to repay a series of Notes funded through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans and Notes funded through the Note Channel are carried on the Company’s consolidated balance sheets as assets and liabilities, respectively. The Company has adopted the provisions of ASC Topic 825, Financial Instruments (“ASC Topic 825”). ASC Topic 825 permits companies to choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the reader of the financial statements and it allows both the Borrower Loans and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. A specific allowance account is not recorded relating to the Borrower Loans in which the Company has elected the fair value option, but rather the Company estimates the fair value of such Borrower Loans and Notes using discounted cash flow methodologies adjusted for the expected prepayment, loss and recovery rates. The Borrower Loans are not derecognized when a corresponding Note is issued as the Company maintains the ability to sell the Borrower Loans without the approval of the holders of the corresponding Notes. | |||||||||||||||||
Loan Servicing Assets and Liabilities | Loan Servicing Assets and Liabilities | ||||||||||||||||
The Company records servicing assets and liabilities at their estimated fair values if servicing rights are retained when the Company sells Borrower Loans to unrelated third-party buyers. The gain or loss on a loan sale is recorded in “Other Revenue” while the fair value of the servicing rights, which is based on the degree to which the contractual loan servicing fee is above or below an estimated market servicing fee is recorded in servicing assets or liabilities. Servicing assets and liabilities are recorded in “Prepaid and Other Assets” and “Accrued Expenses and Other Liabilities,” respectively, on the consolidated balance sheets. The initial fair value of servicing assets or liabilities are amortized in proportion to and over the period of estimated servicing income or loss and are reported in “Servicing Fees” on the consolidated statement of operations. | |||||||||||||||||
The Company uses a discounted cash flow model to estimate the fair value of the loan servicing assets or liabilities which considers the contractual projected servicing fee revenue that the Company earns on the Borrower Loans, estimated market servicing fees to service such loans, prepayment rates, default rates and the current principal balances of the Borrower Loans. | |||||||||||||||||
The Company periodically assesses servicing assets accounted for using the amortization method for impairment. For purposes of measuring impairment, the servicing assets are stratified based on predominant risk characteristics of the underlying serviced Borrower Loans. These risk characteristics include loan type, interest rate and term. Impairment, if any, represents the excess of amortized cost of an individual stratum over its estimated fair value and is recognized in current period earnings and the carrying value of the assets is adjusted through a valuation allowance. | |||||||||||||||||
Loans Held for Sale | Loans Held for Sale | ||||||||||||||||
Loans held for sale are comprised of Borrower Loans held for short durations and are recorded at fair value. The fair value is estimated using discounted cash flow methodologies based upon a set of valuation assumptions similar to those of other Borrower Loans, which are set forth in Note 2— Fair Value Measurement. The Company has adopted the provisions of ASC Topic 825. ASC Topic 825 permits companies to choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the reader of the financial statements and it allows for the Loans Held for Sale to be measured at fair value similar to Borrower Loans and Notes. The fair value election, with respect to an item, may not be revoked once an election is made. | |||||||||||||||||
Property and Equipment | Property and Equipment | ||||||||||||||||
Property and equipment consists of computer equipment, office furniture and equipment, software purchased or developed for internal use and web site development costs. Property and equipment are stated at cost, less accumulated depreciation and amortization, and are computed using the straight-line method based upon estimated useful lives of the assets. Estimated useful lives of the assets as follows: | |||||||||||||||||
Furniture and fixtures | 7 years | ||||||||||||||||
Office equipment | 5 years | ||||||||||||||||
Computers and equipment | 3 years | ||||||||||||||||
Leasehold improvements | 5-8 years | ||||||||||||||||
Software and website development costs | 1-3 years | ||||||||||||||||
Internal use software costs and website development costs are accounted for, in accordance with ASC Topic 350-40, Internal Use Software, and ASC Topic 350-50, Website Development Costs. In accordance with ASC Topic 350-40 and 350-50, the costs to develop software for the website and other internal uses are capitalized when management has authorized and committed project funding, preliminary development efforts are successfully completed, and it is probable that the project will be completed and the software will be used as intended. Capitalized software and website development costs primarily include software licenses acquired, fees paid to outside consultants, and salaries and payroll related costs for employees directly involved in the development efforts. | |||||||||||||||||
Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed. Costs incurred for upgrades and enhancements that are considered to be probable to result in additional functionality are capitalized. Capitalized costs are included in property and equipment and amortized to expense using the straight-line method over their expected lives. Software and website development assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of software and website development assets to be held and used is measured by a comparison of the carrying amount of the asset group to the future net undiscounted cash flows expected to be generated by the asset group. If such software and website development assets are considered to be impaired, the impairment to be recognized is the excess of the carrying amount over the fair value of the software and website development asset group. | |||||||||||||||||
Repurchase Liability for Unvested Restricted Stock Awards | Repurchase Liability for Unvested Restricted Stock Awards | ||||||||||||||||
Under the terms of the Company’s stock option plan certain options issued to employees can be exercised before they have vested. When this occurs the Company records a liability for the unvested portion of the exercise. If the employee’s employment is terminated before all of the shares become vested the Company may repurchase the unvested shares at the original exercise price. The liability is released into equity as the shares become vested. Early exercises of options are not deemed to be substantive exercises for accounting purpose and are excluded from the basic earnings per share calculation and treated as unexercised options shares for stock compensation purposes. | |||||||||||||||||
Investors Payable | Payable to Investors | ||||||||||||||||
Payable to investors primarily represents our obligation to investors related to cash held in for the benefit account, payments-in-process received from investors. | |||||||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||||||
Revenue primarily results from fees and net interest income earned. Fees include transaction fees paid by WebBank on origination of Borrower Loans and servicing fees paid by investors. We also have other smaller sources of revenue reported as other revenue, this includes referral fees and gains or losses on the sale of Borrower Loans. | |||||||||||||||||
Transaction Fees | |||||||||||||||||
The Company earns a transaction fee upon the successful origination of all Borrower Loans facilitated through Prosper’s marketplace. WebBank charges the borrower an origination fee and the Company receives payments from WebBank equal to the origination fee as compensation for the loan origination activities the Company performs on behalf of WebBank. The borrower receives an amount equal to the Borrower Loan amount net of the loan origination fee. The loan origination fee is determined by the term and credit grade of the Borrower Loan, and ranges from 1.00% to 5.00% of the original principal amount of such Borrower Loan. The Company records the transaction fee net of any fees paid to WebBank. Since the Company accounts for Borrower Loans and Loans held for sale at fair value, transaction fees are not deferred but are recognized at acquisition of the Borrower Loan, and direct costs to originate Borrower Loans are recorded as expenses as incurred. | |||||||||||||||||
Servicing Fees | |||||||||||||||||
Investors in whole loans typically pay the Company a servicing fee which is currently generally set at 1% per annum of the outstanding principal balance of the corresponding loan prior to applying the current payment. The servicing fee compensates the Company for the costs incurred in servicing the related Borrower Loan, including managing payments from borrowers, payments to investors and maintaining investors’ account portfolios. The Company records servicing fees from Borrower Loan holders as a component of operating revenue when received. The amortization of servicing rights is also included in servicing fees. | |||||||||||||||||
Interest Income on Borrower Loans, and Interest Expense on Notes | |||||||||||||||||
The Company recognizes interest income on Borrower Loans funded through the Note Channel and interest expense on the corresponding Notes using the accrual method based on the stated interest rate to the extent the Company believes it to be collectable. | |||||||||||||||||
Advertising Costs | Advertising Costs | ||||||||||||||||
Advertising costs are expensed when incurred and are included in sales and marketing expense in the accompanying consolidated statements of operations. The Company incurred advertising costs of $24.1 million, and $12.7 million for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||||||
We determine the fair value of our stock options issued to employees on the date of grant using the Black-Scholes option pricing model, which is impacted by the fair value of our common stock, as well as changes in assumptions that include, but are not limited to, the expected common stock price volatility over the term of the option awards, the expected term of the awards, risk-free interest rates and the expected dividend yield. | |||||||||||||||||
We recognize compensation expense for our stock based awards on a straight-line basis over the period during which an employee is required to provide services in exchange for the award (the vesting period of the award). Stock-based compensation expense is recognized only for those awards expected to vest. We estimate future forfeitures at the date of grant and revise the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||||||
Compensation expense for stock options issued to nonemployees is calculated using the Black-Scholes option pricing model and is recorded over the requisite service period. | |||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||
The asset and liability method is used to account for income taxes as codified in ASC Topic 740, Income Taxes. Under this method, deferred income tax assets and liabilities are based on the differences between the financial statement carrying values and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. | |||||||||||||||||
The Company’s policy is to include interest and penalties related to gross unrecognized tax benefits within its provision for income taxes. U.S. Federal, California and other state income tax returns are filed. The Company is currently not undergoing any income tax examinations. Due to the net operating loss, generally all tax years remain open. | |||||||||||||||||
We recognize benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. | |||||||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||||||
There is no comprehensive income (loss) other than the net income (loss) disclosed in the condensed consolidated statements of operations. | |||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||||||
In May 2014, as part of its ongoing efforts to assist in the convergence of U.S. GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers.” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The standard will be effective for the Company in the first quarter of fiscal 2017. Early adoption is not permitted. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. | |||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management of a company to evaluate whether there is substantial doubt about the company’s ability to continue as a going concern. This ASU is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods thereafter, with early adoption permitted. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. | |||||||||||||||||
In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for periods beginning after December 15, 2015 with early adoption permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements. | |||||||||||||||||
On January 1, 2015, we elected to adopt the fair value method to measure the servicing assets and liabilities for all classes subsequent to initial recognition. ASC-860-50-35-3e allows the subsequent adoption of the fair value method at the beginning of any fiscal year. The adoption of the fair value method for a particular class is irrevocable. Prior to January 1, 2015 we measured the servicing assets and liabilities using the amortized cost method. | |||||||||||||||||
Short Term Investments | Short Term Investments | ||||||||||||||||
Short term investments consists of certificates of deposit with a term greater than three months but less than a year that are held as collateral as required for loan funding and servicing activities. | |||||||||||||||||
Prosper Funding LLC [Member] | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Basis of Presentation | Basis of Presentation | ||||||||||||||||
PFL’s consolidated financial statements include the accounts of PFL and its wholly-owned subsidiary PAH. All intercompany balances and transactions between PFL and PAH have been eliminated in consolidation. PFL’s financial statements have been prepared in accordance with U.S generally accepted accounting principles (U.S. GAAP). | |||||||||||||||||
Use of Estimates | Use of Estimates | ||||||||||||||||
The preparation of PFL’s consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates, judgments and assumptions include but are not limited to the following: valuation of Loans Held for Sale, Borrower Loans and associated Notes, valuation of servicing rights, repurchase and indemnification obligation, valuation allowance on deferred tax assets, and contingent liabilities. PFL bases its estimates on historical experience from all Borrower Loans, and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates, and those could be material. | |||||||||||||||||
Certain Risks and Concentrations | Certain Risks | ||||||||||||||||
In the normal course of its business, PFL encounters two significant types of risk: credit and regulatory. Financial instruments that potentially subject PFL to significant concentrations of credit risk consist primarily of cash, cash equivalents and restricted cash. PFL places cash, cash equivalents and restricted cash with high-quality financial institutions and is exposed to credit risk in the event of default by these institutions to the extent the amount recorded on the balance sheet exceeds federally insured amounts. PFL also performs periodic evaluations of the relative credit standing of these financial institutions and has not sustained any credit losses from instruments held at these financial institutions. | |||||||||||||||||
To the extent that Borrower Loan (including Borrower Loans that have been sold) payments are not made, servicing income will be reduced. A group of Notes corresponding to a particular Borrower Loan is wholly dependent on the repayment of such Borrower Loan. As a result, PFL does not bear the risk on such Borrower Loan. | |||||||||||||||||
PFL is subject to various regulatory requirements. The failure to appropriately identify and address these regulatory requirements could result in certain discretionary actions by regulators that could have a material effect on PFL’s financial position and results of operations. | |||||||||||||||||
Reclassifications | Reclassifications | ||||||||||||||||
During the year ended December 31, 2014, PFL changed the presentation of its revenues in the consolidated statement of operations. A new line called “Servicing Fees, Net” was created and the servicing fees related to Borrower Loans that have been sold that were previously included in interest income were reclassified to this new line. Also, the “Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net” was moved into the total revenues subtotal. The Company also changed the definitions used to classify expenses. Expenses were previously classified as cost of services, administration fee, depreciation and amortization, professional services and other operating expenses. The revised classification approach replaces the previous classifications with servicing, administration fee –related party, and general and administration. The changes had no impact to the total expenses or net income. Prior period amounts have been reclassified to conform to the current presentation. Management believes these changes make the income statement more useful for the readers of the financial statements and comparable with the Company’s competitors. | |||||||||||||||||
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities | ||||||||||||||||
The determination of whether to consolidate a variable interest entity (“VIE”) in which we have a variable interest requires a significant amount of analysis and judgment whether we are the primary beneficiary of a VIE via a controlling financial interest in the VIE. A controlling financial interest in a VIE exists if we have both the power to direct the VIE’s activities that most significantly affect the VIE’s economic performance and a potentially significant economic interest in the VIE. The determination of whether an entity is a VIE considers factors, such as (i) whether the entity’s equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support or (ii) when a holder’s equity investment at risk lacks any of the following characteristics of a controlling financial interest: the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the entity’s success, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the legal entity. | |||||||||||||||||
As a result of the nature of the retained servicing rights on the sale of Borrower Loans, we are a variable interest holder in certain special purposes entities that purchase these Borrower Loans. For all of these entities we either do not have the power to direct the activities that most significantly affect the VIE’s economic performance or we do not have a potentially significant economic interest in the VIE. In no case are we the primary beneficiary and as a result none of these entities are consolidated on the Company’s consolidated financial statements. | |||||||||||||||||
Management regularly reviews and reconsiders its previous conclusions regarding the status of an entity as a VIE and whether we are required to consolidate such VIE in the consolidated financial statements. | |||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||||||
Cash equivalents are recorded at cost, which approximates fair value. Such deposits periodically exceed amounts insured by the FDIC. | |||||||||||||||||
Restricted Cash | Restricted Cash | ||||||||||||||||
Restricted cash consists primarily of cash deposits and short term certificates of deposit held as collateral as required for loan funding and servicing activities, and cash that investors or the Company has on our platform that has not yet been invested in loans or disbursed to the investor. | |||||||||||||||||
Fair Value Measurement | Fair Value Measurement | ||||||||||||||||
PFL has adopted Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures (“ASC topic 820”), which provides guidance measuring the fiar value of assets and liabilities. ASC Topic 820 also provides a fair value hierarchy, which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. ASC Topic 820 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. | |||||||||||||||||
ASC Topic 820 defines fair value in terms of the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||||||
The price used to measure the fair value is not adjusted for transaction costs. Under ASC Topic 820, the fair value measurement also assumes that the transaction to sell an asset occurs in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset. The principal market is the market in which the reporting entity would sell or transfer the asset with the greatest volume and level of activity for the asset. In determining the principal market for an asset or liability under ASC Topic 820, it is assumed that the reporting entity has access to the market as of the measurement date. If no market for the asset exists or if the reporting entity does not have access to the principal market, the reporting entity should use a hypothetical market. | |||||||||||||||||
Under ASC Topic 820, assets and liabilities carried at fair value in the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value: | |||||||||||||||||
Level 1 — The valuation is based on quoted prices in active markets for identical instruments. | |||||||||||||||||
Level 2 — The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | |||||||||||||||||
Level 3 — The valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar techniques, which incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation. | |||||||||||||||||
Fair values of assets or liabilities are determined based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of quoted prices and observable inputs and to minimize the use of unobservable inputs when measuring fair value. Various valuation techniques are utilized, depending on the nature of the financial instrument, including the use of market prices for identical or similar instruments, or discounted cash flow models. When possible, active and observable market data for identical or similar financial instruments are utilized. Alternatively, fair value is determined using assumptions that management believes a market participant would use in pricing the asset or liability. | |||||||||||||||||
Financial instruments consist principally of cash and cash equivalents, restricted cash, Borrower Loans, accounts payable and accrued liabilities, and Notes. The estimated fair values of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities approximate their carrying values because of their short term nature. | |||||||||||||||||
The following tables present the assets and liabilities measured at fair value on a recurring basis at December 31, 2014 and 2013: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
31-Dec-14 | Inputs | Inputs | Inputs | Fair Value | |||||||||||||
Assets | |||||||||||||||||
Borrower Loans | $ | — | $ | — | $ | 273,243 | $ | 273,243 | |||||||||
Restricted Cash | 73,103 | — | — | 73,103 | |||||||||||||
Short Term Investments | — | 1,274 | — | 1,274 | |||||||||||||
Loans Held for Sale | — | — | 8,463 | 8,463 | |||||||||||||
Total Assets | 73,103 | 1,274 | 281,706 | 356,083 | |||||||||||||
Liabilities | |||||||||||||||||
Notes | $ | — | $ | — | $ | 273,783 | $ | 273,783 | |||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
31-Dec-13 | Inputs | Inputs | Inputs | Fair Value | |||||||||||||
Assets | |||||||||||||||||
Restricted Cash | $ | 46,900 | $ | — | $ | — | $ | 46,900 | |||||||||
Short Term Investments | — | 1,271 | — | 1,271 | |||||||||||||
Borrower Loans | — | — | 233,104 | 233,104 | |||||||||||||
Loans Held for Sale | — | — | 3,206 | 3,206 | |||||||||||||
Total Assets | 46,900 | 1,271 | 236,310 | 284,481 | |||||||||||||
Liabilities | |||||||||||||||||
Notes | $ | — | $ | — | $ | 234,218 | $ | 234,218 | |||||||||
As observable market prices are not available for the Borrower Loans, Loans Held for Sale and Notes, or for similar assets and liabilities, PFL believes the Borrower Loans, Loans Held for Sale and Notes should be considered Level 3 financial instruments under ASC Topic 820. In a hypothetical transaction as of the measurement date, PFL believes that differences in the principal marketplace in which the Borrower Loans are originated and the principal marketplace in which PFL might offer those loans may result in differences between the originated amount of the loans and their fair value as of the transaction date. For Borrower Loans and Loans Held for Sale, the fair value is estimated using discounted cash flow methodologies based upon valuation assumptions including prepayment speeds, default rates and discount rates based on the perceived credit risk within each credit grade. | |||||||||||||||||
The obligation to pay principal and interest on any Note is equal to the loan payments, if any, that are received on the corresponding Borrower Loan, net of our servicing fee which is generally 1.0%. The fair value election for Notes and Borrower Loans allows both the assets and the related liabilities to receive similar accounting treatment for expected losses which is consistent with the subsequent cash flows to lenders that are dependent upon borrower payments. As such, the fair value of a group of Notes is approximately equal to the fair value of the corresponding Borrower Loan, adjusted for the 1.0% servicing fee and the timing of borrower payments subsequently disbursed to such Note holders. As a result, the valuation of the Notes uses the same methodology and assumptions as the Borrower Loans, except that the Notes incorporates the 1% servicing fee and any differences in timing in payments. Any unrealized gains or losses on the Borrower Loans and Notes for which the fair value option has been elected is recorded as a separate line item in the statement of operations. The effective interest rate associated with a group of Notes is less than the interest rate earned on the corresponding Borrower Loan due to the 1.0% servicing fee. See Note 4 for a roll-forward and further discussion of the significant assumptions used to value Borrower Loans and Notes. | |||||||||||||||||
Borrower Loans and Notes | Borrower Loans and Notes | ||||||||||||||||
Through the Note Channel, the Company purchases Borrower Loans from WebBank then issues Notes and holds the Borrower Loans until maturity. The obligation to repay a series of Notes funded through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans and Notes funded through the Note Channel are carried on the Company’s consolidated balance sheets as assets and liabilities, respectively. The Company has adopted the provisions of ASC Topic 825, Financial Instruments (“ASC Topic 825”). ASC Topic 825 permits companies to choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the reader of the financial statements and it allows both the Borrower Loans and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. A specific allowance account is not recorded relating to the Borrower Loans in which the Company has elected the fair value option, but rather the Company estimates the fair value of such Borrower Loans and Notes using discounted cash flow methodologies adjusted for the expected payment, loss and recovery rates. The Borrower Loans are not derecognized when a corresponding Note is issued as the Company maintains the ability to sell the Borrower Loans without the approval of the holders in the corresponding Notes. | |||||||||||||||||
Loan Servicing Assets and Liabilities | Loan Servicing Assets and Liabilities | ||||||||||||||||
The Company records servicing assets and liabilities at their estimated fair values if servicing rights are retained when the Company sells Borrower Loans to unrelated third-party buyers. The gain or loss on a loan sale is recorded in “Other Revenue” while the fair value of the servicing rights, which is based on the degree to which the contractual loan servicing fee is above or below an estimated market loan servicing fee is recorded in servicing assets or liabilities. Servicing assets and liabilities are recorded in “Prepaid and Other Assets” and “Accrued Expenses and Other Liabilities,” respectively, on the consolidated balance sheets. The initial fair value of servicing assets or liabilities are amortized in proportion to and over the period of estimated servicing income or loss and are reported in “Servicing Fees” on the consolidated statement of operations. | |||||||||||||||||
The Company uses a discounted cash flow model to estimate the fair value of the loan servicing assets or liabilities which considers the contractual projected servicing fee revenue that the Company earns on the loans, estimated market servicing fees to service such loans, prepayment rates, default rates and the current principal balances of the loans. | |||||||||||||||||
The Company periodically assesses servicing assets accounted for using the amortization method for impairment. For purposes of measuring impairment, the servicing assets are stratified based on predominant risk characteristics of the underlying serviced loans. These risk characteristics include loan type, interest rate and term. Impairment, if any, represents the excess of amortized cost of an individual stratum over its estimated fair value and is recognized in current period earnings and the carrying value of the assets is adjusted through a valuation allowance. | |||||||||||||||||
Loans Held for Sale | Loans Held for Sale | ||||||||||||||||
Loans held for sale are primarily comprised of Borrower Loans held for short durations and are recorded at fair value. The fair value is estimated using discounted cash flow methodologies based upon a set of valuation assumptions similar to those of other Borrower Loans, which are set forth in Note 2— Fair Value Measurement. The Company has adopted the provisions of ASC Topic 825. ASC Topic 825 permits companies to choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the reader of the financial statements and it allows for the Loans Held for Sale to be measured at fair value similar to Borrower Loans and Notes. The fair value election, with respect to an item, may not be revoked once an election is made. | |||||||||||||||||
Investors Payable | Payable to Investors | ||||||||||||||||
Payable to investors primarily represents our obligation to investors related to cash held in the “for the benefit” or FBO account and payments-in-process received from investors. | |||||||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||||||
Revenue primarily results from fees and net interest earned. Fees consist of related part administrative fees and servicing fees paid by investors. We also have other smaller sources of revenue reported as other revenue this includes the gains or losses on whole loan sales. | |||||||||||||||||
Administration Agreement License Fees | |||||||||||||||||
PFL primarily generates revenues through license fees it earns through an Administration Agreement with PMI. The Administration Agreement contains a license granted by PFL to PMI that entitles PMI to use the platform for and in relation to: (i) PMI’s performance of its duties and obligations under the Administration Agreement relating to corporate administration, loan platform services, loan and note servicing and marketing, and (ii) PMI’s performance of its duties and obligations to WebBank in relation to loan origination and funding. The license fees are based on the number of listings that are posted to the platform. | |||||||||||||||||
Service Fees | |||||||||||||||||
Investors in whole loans typically pay the Company a servicing fee which is currently generally set at 1% per annum of the outstanding principal balance of the corresponding loan prior to applying the current payment. The servicing fee compensates the Company for the costs we incur in servicing the related loan, including managing payments from borrowers, payments to investors and maintaining investors’ account portfolios. Prosper records servicing fees paid by borrower loan holders as a component of operating revenue when received. The amortization of servicing rights is also included in servicing fees. | |||||||||||||||||
Interest Income on Borrower Loans and Interest Expense on Notes | |||||||||||||||||
PFL recognizes interest income on Borrower Loans funded through the Note Channel and interest expense on the corresponding Notes using the accrual method based on the stated interest rate to the extent PFL believes it to be collectable. | |||||||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||||||
There is no comprehensive income (loss) other than the net income (loss) disclosed in the condensed consolidated statements of operations. | |||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||||||
In May 2014, as part of its ongoing efforts to assist in the convergence of U.S. GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers.” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The standard will be effective for the Company in the first quarter of fiscal 2017. Early adoption is not permitted. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. | |||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management of a company to evaluate whether there is substantial doubt about the company’s ability to continue as a going concern. This ASU is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods thereafter, with early adoption permitted. The Company is currently assessing the potential impact on its financial statements from adopting this new guidance. | |||||||||||||||||
In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for periods beginning after December 15, 2015 with early adoption permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements. | |||||||||||||||||
On January 1, 2015, we elected to adopt the fair value method to measure the servicing assets and liabilities for all classes subsequent to initial recognition. ASC-860-50-35-3e allows the subsequent adoption of the fair value method at the beginning of any fiscal year. The adoption of the fair value method for a particular class is irrevocable. Prior to January 1, 2015 we measured the servicing assets and liabilities using the amortized cost method. | |||||||||||||||||
Short Term Investments | Short Term Investments | ||||||||||||||||
Short term investments consists of certificates of deposit with a term greater than three months but less than a year that are held as collateral as required for loan funding and servicing activities. | |||||||||||||||||
Internal Use Software and Website Development | Internal Use Software and Website Development | ||||||||||||||||
PFL accounts for internal use software costs, including website development costs, in accordance with ASC Topic 350-40, Internal Use Software and ASC Topic 350-50, Website Development Costs. In accordance with ASC Topic 350-40 and 350-50, the costs to develop software for the website and other internal uses are capitalized when management has authorized and committed project funding, preliminary development efforts are successfully completed, and it is probable that the project will be completed and the software will be used as intended. Capitalized software and website development costs primarily include software licenses acquired, fees paid to outside consultants, and salaries and payroll related costs for employees directly involved in the development efforts. | |||||||||||||||||
Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed. Costs incurred for upgrades and enhancements that are considered to be probable to result in additional functionality are capitalized. Capitalized costs are included in property and equipment and amortized to expense using the straight-line method over their expected lives which is generally one to three years. PFL evaluates its software assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of software and website development assets to be held and used is measured by a comparison of the carrying amount of the asset to the future net undiscounted cash flows expected to be generated by the asset. If such software and website development assets are considered to be impaired, the impairment to be recognized is the excess of the carrying amount over the fair value of the software and website development asset group. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the assets and liabilities measured at fair value on a recurring basis at December 31, 2014 and 2013 (in thousands): | ||||||||||||||||
31-Dec-14 | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Inputs | Inputs | Inputs | |||||||||||||||
Assets | |||||||||||||||||
Borrower Loans | $ | — | $ | — | $ | 273,243 | $ | 273,243 | |||||||||
Restricted Cash | 76,783 | 4,517 | — | 81,300 | |||||||||||||
Short Term Investments | — | 1,274 | — | 1,274 | |||||||||||||
Loans Held for Sale | — | — | 8,463 | 8,463 | |||||||||||||
Total Assets | 76,783 | 5,791 | 281,706 | 364,280 | |||||||||||||
Liabilities | |||||||||||||||||
Notes | $ | — | $ | — | $ | 273,783 | $ | 273,783 | |||||||||
31-Dec-13 | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Inputs | Inputs | Inputs | |||||||||||||||
Assets | |||||||||||||||||
Borrower Loans | $ | — | $ | — | $ | 233,105 | $ | 233,105 | |||||||||
Restricted Cash | 49,904 | 170 | 50,074 | ||||||||||||||
Short Term Investments | — | 1,271 | — | 1,271 | |||||||||||||
Loans Held for Sale | — | — | 3,206 | 3,206 | |||||||||||||
Total Assets | 49,904 | 1,441 | 236,311 | 287,656 | |||||||||||||
Liabilities | |||||||||||||||||
Notes | $ | — | $ | — | $ | 234,218 | 234,218 | ||||||||||
Estimated Useful Lives of Assets | Estimated useful lives of the assets as follows: | ||||||||||||||||
Furniture and fixtures | 7 years | ||||||||||||||||
Office equipment | 5 years | ||||||||||||||||
Computers and equipment | 3 years | ||||||||||||||||
Leasehold improvements | 5-8 years | ||||||||||||||||
Software and website development costs | 1-3 years | ||||||||||||||||
Prosper Funding LLC [Member] | |||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the assets and liabilities measured at fair value on a recurring basis at December 31, 2014 and 2013: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
31-Dec-14 | Inputs | Inputs | Inputs | Fair Value | |||||||||||||
Assets | |||||||||||||||||
Borrower Loans | $ | — | $ | — | $ | 273,243 | $ | 273,243 | |||||||||
Restricted Cash | 73,103 | — | — | 73,103 | |||||||||||||
Short Term Investments | — | 1,274 | — | 1,274 | |||||||||||||
Loans Held for Sale | — | — | 8,463 | 8,463 | |||||||||||||
Total Assets | 73,103 | 1,274 | 281,706 | 356,083 | |||||||||||||
Liabilities | |||||||||||||||||
Notes | $ | — | $ | — | $ | 273,783 | $ | 273,783 | |||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
31-Dec-13 | Inputs | Inputs | Inputs | Fair Value | |||||||||||||
Assets | |||||||||||||||||
Restricted Cash | $ | 46,900 | $ | — | $ | — | $ | 46,900 | |||||||||
Short Term Investments | — | 1,271 | — | 1,271 | |||||||||||||
Borrower Loans | — | — | 233,104 | 233,104 | |||||||||||||
Loans Held for Sale | — | — | 3,206 | 3,206 | |||||||||||||
Total Assets | 46,900 | 1,271 | 236,310 | 284,481 | |||||||||||||
Liabilities | |||||||||||||||||
Notes | $ | — | $ | — | $ | 234,218 | $ | 234,218 | |||||||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property and Equipment, Net | Property and equipment consist of the following (in thousand)s: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Property and equipment: | |||||||||
Computer equipment | $ | 3,824 | $ | 2,115 | |||||
Internal-use software and website development costs | 4,486 | 3,592 | |||||||
Office equipment and furniture | 1,904 | 39 | |||||||
Leasehold improvements | 5,274 | — | |||||||
Assets not yet placed in service | 4,361 | 651 | |||||||
Property and equipment | 19,849 | 6,397 | |||||||
Less accumulated depreciation and amortization | (5,425 | ) | (3,371 | ) | |||||
Total property and equipment, net | $ | 14,424 | $ | 3,026 | |||||
Prosper Funding LLC [Member] | |||||||||
Property and Equipment, Net | Property and equipment consist of the following (in thousands) : | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Property and equipment: | |||||||||
Internal-use software and web site development costs | $ | 4,042 | $ | 3,217 | |||||
Property and equipment | 4,042 | 3,217 | |||||||
Less accumulated depreciation and amortization | (2,917 | ) | (1,607 | ) | |||||
Total property and equipment, net | $ | 1,125 | $ | 1,610 | |||||
Borrower_Loans_Loans_Held_for_1
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Borrower Loans, Notes and Loans Held for Sale | At December 31, 2014 and December 31, 2013, Borrower Loans, Notes and Loans Held for Sale (in thousands) were: | ||||||||||||||||||||||||
Borrower Loans | Notes | Loans Held for Sale | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Aggregate principal balance | $ | 268,598 | $ | 228,184 | $ | (272,269 | ) | $ | (232,093 | ) | $ | 8,295 | $ | 3,157 | |||||||||||
outstanding | |||||||||||||||||||||||||
Fair value adjustments | 4,645 | 4,921 | (1,514 | ) | (2,125 | ) | 168 | 49 | |||||||||||||||||
Fair value | $ | 273,243 | $ | 233,105 | $ | (273,783 | ) | $ | (234,218 | ) | $ | 8,463 | $ | 3,206 | |||||||||||
At December 31, 2014 and December 31, 2013, borrower loans, notes and loans held for sale (in thousands) were: | |||||||||||||||||||||||||
Borrower Loans | Notes | Loans Held for Sale | |||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-14 | 31-Dec-13 | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Aggregate principal balance | $ | 268,598 | $ | 228,183 | $ | (272,269 | ) | $ | (232,093 | ) | $ | 8,295 | $ | 3,157 | |||||||||||
outstanding | |||||||||||||||||||||||||
Fair value adjustments | 4,645 | 4,921 | (1,514 | ) | (2,125 | ) | 168 | 49 | |||||||||||||||||
Fair value | $ | 273,243 | $ | 233,104 | $ | (273,783 | ) | $ | (234,218 | ) | $ | 8,463 | $ | 3,206 | |||||||||||
Fair Value Assumptions for Loans Held for Sale, Borrower Loans and Notes | Key economic assumptions and the sensitivity of the current fair value to immediate adverse changes in those assumptions at December 31, 2014 for Loans Held for Sale, Borrower Loans and Notes funded through the Note Channel are presented in the following table (in thousands): | ||||||||||||||||||||||||
Borrower Loans / Loans Held for Sale | Notes | ||||||||||||||||||||||||
Discount rate assumption: | 5.25 | % | * | 5.25 | % | * | |||||||||||||||||||
Resulting fair value increase/(decrease) from: | |||||||||||||||||||||||||
100 basis point increase | $ | 278,212 | $ | 270,672 | |||||||||||||||||||||
200 basis point increase | 275,108 | 267,646 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point decrease | $ | 284,683 | $ | 276,983 | |||||||||||||||||||||
200 basis point decrease | 288,059 | 280,274 | |||||||||||||||||||||||
Default rate assumption: | 12.06 | % | * | 12.06 | % | * | |||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
Applying a 0.8 multiplier to default rate | $ | 288,507 | $ | 280,696 | |||||||||||||||||||||
Applying a 0.9 multiplier to default rate | 284,968 | 277,253 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
Applying a 1.1 multiplier to default rate | $ | 277,881 | $ | 270,357 | |||||||||||||||||||||
Applying a 1.2 multiplier to default rate | 274,443 | 267,012 | |||||||||||||||||||||||
* Represents weighted average assumptions considering all credit grades. | |||||||||||||||||||||||||
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis | The changes in Level 3 assets measured at fair value on a recurring basis are as follows (in thousands): | ||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Borrower | Notes | Loans Held | Total | ||||||||||||||||||||||
Loans | for Sale | ||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 163,861 | $ | (164,840 | ) | $ | — | $ | (979 | ) | |||||||||||||||
Purchase of Loans/Issuance of Notes | 169,859 | (170,586 | ) | 184,807 | 184,080 | ||||||||||||||||||||
Principal repayments | (90,054 | ) | 89,681 | — | (373 | ) | |||||||||||||||||||
Borrower loans sold to third parties | — | — | (181,656 | ) | (181,656 | ) | |||||||||||||||||||
Change in fair value | (10,561 | ) | 11,527 | 55 | 1,021 | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 233,105 | $ | (234,218 | ) | $ | 3,206 | $ | 2,093 | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Borrower | Notes | Loans Held | Total | ||||||||||||||||||||||
Loans | for Sale | ||||||||||||||||||||||||
Balance at January 1, 2014 | $ | 233,105 | $ | (234,218 | ) | $ | 3,206 | $ | 2,093 | ||||||||||||||||
Purchase of Loans/Issuance of Notes | 177,088 | (176,865 | ) | 1,416,809 | 1,417,032 | ||||||||||||||||||||
Principal repayments | (121,082 | ) | 120,909 | — | (173 | ) | |||||||||||||||||||
Borrower loans sold to third parties | — | — | (1,411,625 | ) | (1,411,625 | ) | |||||||||||||||||||
Change in fair value | (15,868 | ) | 16,391 | 73 | 596 | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 273,243 | $ | (273,783 | ) | $ | 8,463 | $ | 7,923 | ||||||||||||||||
The changes in Level 3 assets measured at fair value on a recurring basis are as follows (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Held for | |||||||||||||||||||||||||
Borrower Loans | Notes | Sale | Total | ||||||||||||||||||||||
Balance at January 1, 2013 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Assets transferred on February 1, 2013 | 167,376 | (167,758 | ) | — | (382 | ) | |||||||||||||||||||
Originations | 160,037 | (160,764 | ) | 184,807 | 184,080 | ||||||||||||||||||||
Principal repayments | (83,677 | ) | 82,924 | — | (753 | ) | |||||||||||||||||||
Borrower loans sold to third parties | — | — | (181,645 | ) | (181,645 | ) | |||||||||||||||||||
Change in fair value | (10,632 | ) | 11,380 | 44 | 792 | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 233,104 | $ | (234,218 | ) | $ | 3,206 | $ | 2,092 | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Held for | |||||||||||||||||||||||||
Borrower Loans | Notes | Sale | Total | ||||||||||||||||||||||
Balance at January 1, 2014 | $ | 233,104 | $ | (234,218 | ) | $ | 3,206 | $ | 2,092 | ||||||||||||||||
Originations | 177,088 | (176,865 | ) | 1,416,809 | 1,417,032 | ||||||||||||||||||||
Principal repayments | (121,081 | ) | 120,909 | — | (172 | ) | |||||||||||||||||||
Borrower loans sold to third parties | — | — | (1,411,625 | ) | (1,411,625 | ) | |||||||||||||||||||
Change in fair value | (15,868 | ) | 16,391 | 73 | 596 | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 273,243 | $ | (273,783 | ) | $ | 8,463 | $ | 7,923 | ||||||||||||||||
Prosper Funding LLC [Member] | |||||||||||||||||||||||||
Fair Value Assumptions for Loans Held for Sale, Borrower Loans and Notes | Key economic assumptions and the sensitivity of the current fair value to immediate adverse changes in those assumptions at December 31, 2014 for Borrower Loans and Notes funded through the Note Channel are presented in the following table (in thousands): | ||||||||||||||||||||||||
Borrower | Notes | ||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Discount rate assumption: | 5.25 | % | * | 5.25 | % | * | |||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point increase | $ | 278,212 | $ | 270,672 | |||||||||||||||||||||
200 basis point increase | 275,108 | 267,646 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point decrease | $ | 284,683 | $ | 276,983 | |||||||||||||||||||||
200 basis point decrease | 288,059 | 280,274 | |||||||||||||||||||||||
Default rate assumption: | 12.06 | % | * | 12.06 | % | * | |||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
Applying a 0.8 multiplier to default rate | $ | 288,507 | $ | 280,696 | |||||||||||||||||||||
Applying a 0.9 multiplier to default rate | 284,968 | 277,253 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
Applying a 1.1 multiplier to default rate | $ | 277,881 | $ | 270,357 | |||||||||||||||||||||
Applying a 1.2 multiplier to default rate | 274,443 | 267,012 | |||||||||||||||||||||||
* Represents weighted average assumptions considering all credit grades. |
Loan_Servicing_Assets_and_Liab1
Loan Servicing Assets and Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Significant Unobservable Inputs | The following table presents quantitative information about the significant unobservable inputs used for our servicing asset/liability fair value measurements at December 31, 2014 and December 31, 2013: | ||||||||
Range | |||||||||
Unobservable Input | December 31, 2014 | December 31, 2013 | |||||||
Discount rate | 15% - 25% | 15% - 25% | |||||||
Default rate | 2.62% - 26.32% | 1.73% - 19.75% | |||||||
Market servicing rate | 0.625% -0.70% | 0.70% | |||||||
Schedule of Servicing Assets and Liabilities at Amortized Value | The following tables present additional information about Level 3 servicing assets and liabilities being amortized for the year ended December 31, 2014 and 2013 (in thousands). | ||||||||
Servicing | Servicing | ||||||||
Assets | Liabilities | ||||||||
Amortized cost at January 1, 2013 | $ | — | $ | — | |||||
Additions | 496 | 177 | |||||||
Less: Amortization | (36 | ) | (10 | ) | |||||
Amortized cost at December 31, 2013 | $ | 460 | $ | 167 | |||||
Additions | 4,700 | 662 | |||||||
Less: Amortization | (997 | ) | (205 | ) | |||||
Amortized cost at December 31, 2014 | $ | 4,163 | $ | 624 | |||||
Fair Value at December 31, 2014 | $ | 4,708 | $ | 595 | |||||
Schedule of Estimated Fair Value of Servicing Assets and Liabilities | The table below shows the estimated impact on our estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of December 31, 2014 (in thousands, except percentages). | ||||||||
Servicing | Servicing | ||||||||
Assets | Liabilities | ||||||||
Weighted average market servicing rate assumptions | 0.625 | % | 0.625 | % | |||||
Increase (decrease) in fair value | |||||||||
Market servicing rate increase to 0.65% | $ | (348 | ) | $ | 59 | ||||
Market servicing rate decrease to 0.60% | $ | 348 | $ | (59 | ) | ||||
Weighted average default assumptions | 13 | % | 13 | % | |||||
Increase (decrease) in fair value | |||||||||
Applying a 1.1 multiplier to default rate | $ | (88 | ) | $ | 1 | ||||
Applying a 0.9 multiplier to default rate | $ | 89 | $ | (1 | ) | ||||
Prosper Funding LLC [Member] | |||||||||
Significant Unobservable Inputs | The following table presents quantitative information about the significant unobservable inputs used for our servicing asset/liability fair value measurements at December 31, 2014 and December 31, 2013: | ||||||||
Range | |||||||||
Unobservable Input | 31-Dec-14 | 31-Dec-13 | |||||||
Discount rate | 15% - 25% | 15% - 25% | |||||||
Default rate | 2.62% - 26.32% | 1.73% - 19.75% | |||||||
Market servicing rate | 0.625% -0.70% | 0.70% | |||||||
Schedule of Servicing Assets and Liabilities at Amortized Value | The following tables present additional information about Level 3 servicing assets and liabilities being amortized for the years ended December 31, 2014 and 2013 (in thousands). | ||||||||
Servicing | Servicing | ||||||||
Assets | Liabilities | ||||||||
Amortized cost at January 1, 2013 | $ | — | $ | — | |||||
Additions | 496 | 177 | |||||||
Less: Transfers to PMI | (24 | ) | |||||||
Less: Amortization | (36 | ) | (10 | ) | |||||
Amortized cost at December 31, 2013 | $ | 436 | $ | 167 | |||||
Additions | 4,700 | 662 | |||||||
Less: Transfers to PMI | (1,221 | ) | |||||||
Less: Amortization | (799 | ) | (205 | ) | |||||
Amortized cost at December 31, 2014 | $ | 3,116 | $ | 624 | |||||
Fair Value at December 31, 2014 | $ | 3,515 | $ | 595 | |||||
Schedule of Estimated Fair Value of Servicing Assets and Liabilities | The table below shows the estimated impact on our estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of December 31, 2014 (in thousands, except percentages). | ||||||||
Servicing | Servicing | ||||||||
Assets | Liabilities | ||||||||
Weighted average market servicing rate assumptions | 0.625 | % | 0.625 | % | |||||
Increase (decrease) in fair value | |||||||||
Servicing rate increase to 0.65% | $ | (260 | ) | $ | 59 | ||||
Servicing rate decrease to 0.60% | $ | 260 | $ | (59 | ) | ||||
Weighted average default assumptions | 10 | % | 10 | % | |||||
Increase (decrease) in fair value | |||||||||
Applying a 1.1 multiplier to default rate | $ | (66 | ) | $ | 1 | ||||
Applying a 0.9 multiplier to default rate | $ | 66 | $ | (1 | ) | ||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Basic and Diluted Loss Per Share | Basic and diluted net loss per share was calculated as follows (net loss in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net loss available to common stockholders for basic and | $ | (17,561 | ) | $ | (27,007 | ) | |||
diluted EPS | |||||||||
Denominator: | |||||||||
Weighted average shares used in computing basic and | 8,896,801 | 6,596,827 | |||||||
diluted net loss per share | |||||||||
Basic and diluted net loss per share | $ | (1.97 | ) | $ | (4.09 | ) | |||
Dilutive Shares Excluded from the Diluted Net Loss Per Share Calculation | Due to losses attributable to Prosper’s common shareholders for each of the periods below, the following potentially dilutive shares are excluded from the diluted net loss per share calculation because they were anti-dilutive under the treasury stock method, in accordance with ASC Topic 260: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
(shares) | (shares) | ||||||||
Excluded securities: | |||||||||
Convertible preferred stock issued and outstanding | 30,699,957 | 27,274,068 | |||||||
Stock options issued and outstanding | 4,994,998 | 894,976 | |||||||
Unvested stock options exercised | 4,114,269 | 5,594,134 | |||||||
Warrants issued and outstanding | 176,887 | 218,810 | |||||||
Total common stock equivalents excluded from diluted | 39,986,111 | 33,981,988 | |||||||
net loss per common share computation | |||||||||
Convertible_Preferred_Stock_an1
Convertible Preferred Stock and Stockholders' Equity (Deficit) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stockholders Equity Note [Abstract] | |||||||||||||||||
Summary of Shares Authorized, Issued, Outstanding, Par Value and Liquidation Preference of Convertible Preferred Stock | The number of authorized, issued and outstanding shares, their par value and liquidation preference for each series of convertible preferred stock as of December 31, 2014 are disclosed in the table below: | ||||||||||||||||
Convertible Preferred Stock | Par Value | Authorized | Outstanding and Issued | Liquidation | |||||||||||||
shares as of | shares as of | Preference | |||||||||||||||
December 31, | December 31, | ($,000s) | |||||||||||||||
2014 | 2014 | ||||||||||||||||
New Series A | $ | 0.01 | 13,868,152 | 13,711,644 | $ | 19,774 | |||||||||||
Series A-1 | 0.01 | 5,117,182 | 4,952,183 | 49,522 | |||||||||||||
New Series B | 0.01 | 8,288,734 | 7,155,176 | 21,581 | |||||||||||||
New Series C | 0.01 | 4,880,954 | 4,880,954 | 70,075 | |||||||||||||
32,155,022 | 30,699,957 | $ | 160,952 | ||||||||||||||
Stock_Option_Plan_and_Compensa1
Stock Option Plan and Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||||||||||||||||
Schedule of Activity of Options that were Early Exercised under the Plan | The activity of options that were early exercised under the 2005 Plan follow for the years below: | |||||||||||||||||||||
Early exercised | Weighted average | Weighted Average | Aggregate | |||||||||||||||||||
options, unvested | exercise price | Contractual Term | Intrinsic Value | |||||||||||||||||||
(in years) | (in thousands) | |||||||||||||||||||||
Balance as of January 1, 2013 | — | $ | — | |||||||||||||||||||
Exercise of non-vested stock options | 6,499,463 | 0.11 | ||||||||||||||||||||
Repurchase of restricted stock | (414,130 | ) | 0.21 | |||||||||||||||||||
Restricted stock vested | (491,199 | ) | 0.1 | |||||||||||||||||||
Balance as of December 31, 2013 | 5,594,134 | 0.12 | ||||||||||||||||||||
Exercise of non-vested stock options | 865,717 | 0.94 | ||||||||||||||||||||
Repurchase of restricted stock | (181,893 | ) | 0.1 | |||||||||||||||||||
Restricted stock vested | (2,165,689 | ) | 0.16 | |||||||||||||||||||
Balance as of December 31, 2014 | 4,112,269 | 0.25 | 2.23 | $ | 74,473 | |||||||||||||||||
Options expected to vest | 3,674,592 | $ | 0.25 | 2.23 | $ | 66,547 | ||||||||||||||||
Additional Information Regarding the Unvested Early Exercised Stock Options Outstanding | Additional information regarding the unvested early exercised stock options outstanding as of December 31, 2014 is as follows: | |||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||
Range of | Number | Weighted –Avg. | Weighted –Avg. | |||||||||||||||||||
Exercise | Outstanding | Remaining Life | Exercise Price | |||||||||||||||||||
Prices | ||||||||||||||||||||||
$0.10 - $0.10 | 3,520,635 | 2.14 | $ | 0.1 | ||||||||||||||||||
0.57 - 0.57 | 528,495 | 2.64 | 0.57 | |||||||||||||||||||
5.65-5.65 | 63,139 | 2.59 | 5.65 | |||||||||||||||||||
$0.10 - $5.65 | 4,112,269 | 2.23 | $ | 0.25 | ||||||||||||||||||
Summarized Option Activity under Option Plan | Option activity under the 2005 Plan is summarized as follows for the years below: | |||||||||||||||||||||
Options | Weighted- | Weighted Average | Aggregate | |||||||||||||||||||
Issued and | Average | Contractual Term | Intrinsic Value | |||||||||||||||||||
Outstanding | Exercise | (in years) | (in thousands) | |||||||||||||||||||
Price | ||||||||||||||||||||||
Balance as of January 1, 2013 | 1,173,816 | $ | 2.03 | |||||||||||||||||||
Options granted | 7,912,933 | 0.1 | ||||||||||||||||||||
Options exercised – vested | (828,496 | ) | 0.26 | |||||||||||||||||||
Options exercised – nonvested | (6,499,463 | ) | 0.1 | |||||||||||||||||||
Options forefeited | (863,814 | ) | 1.17 | |||||||||||||||||||
Balance as of December 31, 2013 | 894,976 | $ | 1.46 | |||||||||||||||||||
Options granted | 5,287,763 | 1.76 | ||||||||||||||||||||
Options exercised – vested | (59,150 | ) | 1.3 | |||||||||||||||||||
Options exercised – nonvested | (865,717 | ) | 0.94 | |||||||||||||||||||
Options forefeited | (262,874 | ) | 1.79 | |||||||||||||||||||
Balance as of December 31, 2014 | 4,994,998 | $ | 1.85 | 8.92 | $ | 81,219 | ||||||||||||||||
Options vested and expected to vest as of December 31, | 4,463,370 | 1.85 | 8.92 | $ | 72,574 | |||||||||||||||||
2014 | ||||||||||||||||||||||
Options vested and exercisable at December 31, 2014 | 3,921,049 | $ | 1.32 | 8.75 | $ | 65,834 | ||||||||||||||||
Additional Information Regarding Common Stock Options Outstanding | Additional information regarding common stock options outstanding as of December 31, 2014 is as follows: | |||||||||||||||||||||
Options Outstanding | Options Vested and Exercisable | |||||||||||||||||||||
Weighted – | Weighted – | Weighted - | ||||||||||||||||||||
Range of | Avg. | Avg. | Avg. | |||||||||||||||||||
Exercise | Number | Remaining | Exercise | Number | Exercise | |||||||||||||||||
Prices | Outstanding | Life | Price | Vested | Price | |||||||||||||||||
$ | 0.10 - $0.10 | 163,883 | 8.62 | $ | 0.1 | 70,784 | $ | 0.1 | ||||||||||||||
0.57 - 0.57 | 3,170,301 | 9.12 | 0.57 | 1,983,728 | 0.57 | |||||||||||||||||
1.20 - 1.20 | 133,334 | 6.71 | 1.2 | 121,874 | 1.2 | |||||||||||||||||
1.70 - 1.70 | 77,552 | 7.37 | 1.7 | 62,724 | 1.7 | |||||||||||||||||
2.00 - 2.00 | 287,933 | 5.56 | 2 | 287,869 | 2 | |||||||||||||||||
5.00 - 5.00 | 7,000 | 1.75 | 5 | 7,000 | 5 | |||||||||||||||||
5.60 - 5.60 | 18,250 | 4.71 | 5.6 | 18,250 | 5.6 | |||||||||||||||||
5.65 - 5.65 | 1,136,745 | 9.71 | 5.65 | 737 | 5.65 | |||||||||||||||||
$ | 0.10 - $5.65 | 4,994,998 | 8.92 | $ | 1.85 | 2,552,966 | $ | 0.83 | ||||||||||||||
Fair Value of Stock Option Awards | The fair value of the Company’s stock option awards for the year ended December 31, 2014 and 2013 was estimated at the date of grant using the Black-Scholes model with the following average assumptions: | |||||||||||||||||||||
Year ended | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Volatility of common stock | 68.28 | % | 75.34 | % | ||||||||||||||||||
Risk-free interest rate | 1.79 | % | 1.78 | % | ||||||||||||||||||
Expected life | 5.7 years | 5.8 years | ||||||||||||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||||||||||||
Stock Based Compensation Included in Consolidated Statements of Operations | The following table presents the amount of stock-based compensation related to stock-based awards granted to employees recognized in the Company’s consolidated statements of operations during the periods presented (in thousands): | |||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Origination and Servicing | $ | 104 | $ | 16 | ||||||||||||||||||
Sales and Marketing | 767 | 24 | ||||||||||||||||||||
General and Administrative | 1,140 | 206 | ||||||||||||||||||||
Total stock based compensation | $ | 2,011 | $ | 246 | ||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Effective Income Tax Reconciliation | The Company did not have any current or deferred federal or state income tax expense for the years ended December 31, 2014 and 2013. The income tax expense (benefit) differed from the amount computed by applying the U.S. federal income tax rate of 34% to pretax loss as a result of the following: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Federal tax at statutory rate | 34 | % | 34 | % | |||||
State tax at statutory rate (net of federal benefit) | 1 | % | 2 | % | |||||
Permanent items | 31 | % | 0 | % | |||||
Stock compensation | (9 | )% | 0 | % | |||||
Change in valuation allowance | (66 | )% | (38 | )% | |||||
Credits and Reserves | 9 | % | (— | )% | |||||
Other | 0 | % | 2 | % | |||||
0 | % | 0 | % | ||||||
Deferred Tax Assets and Liabilities | Temporary items that give rise to significant portions of deferred tax assets and liabilities (tax-effected) at December 31, 2014 and 2013 are as follows (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Net operating loss carry forwards | $ | 24,565 | $ | 24,626 | |||||
Research & other credits | 420 | 277 | |||||||
Fixed assets | 45 | 95 | |||||||
Settlement liability | 2,964 | 3,654 | |||||||
Stock compensation | 344 | 69 | |||||||
Accrued liabilities and other | 2,320 | 247 | |||||||
30,658 | 28,968 | ||||||||
Fair value of loans | (1,160 | ) | (1,078 | ) | |||||
Valuation allowance | (29,498 | ) | (27,890 | ) | |||||
Net deferred tax asset | $ | — | $ | — | |||||
Unrecognized Tax Benefits | The following table summarizes the Company’s activity related to its unrecognized tax benefits (in thousands): | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Balance at January 1, | $ | 54,571 | $ | 219 | |||||
Increase related to current year tax position | — | — | |||||||
Increase related to tax position of prior years | — | 54,352 | |||||||
Balance at December 31, | $ | 54,571 | $ | 54,571 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | |||||
Future Minimum Lease Payments | During the period the Company signed new leases for the new corporate headquarters at 221 Main Street in San Francisco California and for the co-location facility. These are non-cancelable operating leases that expire in February 2023 and August 2015, respectively. The Company also signed a new lease for office space in Phoenix Arizona under an operating lease that expires in June 2022. | ||||
Future minimum rental payments under these leases as of December 31, 2014 are as follows (in thousands $) : | |||||
2015 | 2,425 | ||||
2016 | 3,755 | ||||
2017 | 3,866 | ||||
2018 | 3,977 | ||||
2019 | 4,093 | ||||
Thereafter | 13,091 | ||||
Total future operating lease obligations | $ | 31,207 | |||
Related_Parties_Tables
Related Parties (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Aggregate Amount of Notes Purchased and the Income Earned | The aggregate amount of the Notes purchased and the income earned by parties deemed to be affiliates and related parties of Prosper as of December 31, 2014 and 2013 are summarized below (in thousands): | ||||||||||||||||
Aggregate Amount of | Interest Earned on | ||||||||||||||||
Related Party | Notes Purchased | Notes | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Executive officers and management | $ | 1,127 | $ | 1,096 | $ | 163 | $ | 12 | |||||||||
Directors | 42 | 727 | 10 | 52 | |||||||||||||
Total | $ | 1,169 | $ | 1,823 | $ | 173 | $ | 64 | |||||||||
Related Party | Notes balance as of December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Executive officers and management | $ | 1,614 | $ | 1,067 | |||||||||||||
Directors | 76 | 322 | |||||||||||||||
$ | 1,690 | $ | 1,389 | ||||||||||||||
Prosper Funding LLC [Member] | |||||||||||||||||
Aggregate Amount of Notes Purchased and the Income Earned | The aggregate amount of the Notes and Borrower Loans purchased and the income earned by parties deemed to be affiliates and related parties of Prosper as of December 31, 2014 and 2013 are summarized below (in thousands): | ||||||||||||||||
Aggregate Amount of | |||||||||||||||||
Notes and Borrower | Interest Earned on | ||||||||||||||||
Loans | Notes and Borrower | ||||||||||||||||
Related Party | Purchased | Loans | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Executive officers and management | $ | 1,127 | $ | 1,170 | $ | 159 | $ | 1 | |||||||||
Directors | — | — | — | — | |||||||||||||
Total | $ | 1,127 | $ | 1,170 | $ | 159 | $ | 1 | |||||||||
Related Party | Loan balance as of December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Executive officers and management | $ | 1,614 | $ | 1,065 | |||||||||||||
Directors | — | — | |||||||||||||||
Total | $ | 1,614 | $ | 1,065 | |||||||||||||
Prior_Period_Adjustments_Table
Prior Period Adjustments (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||||
Restatement of Consolidated Balance Sheets, Consolidated Statements of Operations and Consolidated Statements of Cash Flows | The following tables present the impact of these corrections on the 2013 consolidated financial statements (in thousands, expect per share values): | ||||||||||||||||||||
Consolidated Balance Sheet - December 31, 2013 | |||||||||||||||||||||
As previously | As | ||||||||||||||||||||
reported | Reclassifications | reclassified | Adjustments | As Restated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and Cash Equivalents | $ | 18,339 | $ | — | $ | 18,339 | $ | — | $ | 18,339 | |||||||||||
Restricted Cash | 15,473 | — | 15,473 | 34,351 | 49,824 | ||||||||||||||||
Short Term Investments | — | — | — | 1,271 | 1,271 | ||||||||||||||||
Accounts Receivable | 218 | — | 218 | 78 | 296 | ||||||||||||||||
Loans Held for Sale, at Fair Value | 3,917 | — | 3,917 | (711 | ) | 3,206 | |||||||||||||||
Borrower Loans, at Fair Value | 226,238 | — | 226,238 | 6,867 | 233,105 | ||||||||||||||||
Property and Equipment, Net | 3,396 | — | 3,396 | (370 | ) | 3,026 | |||||||||||||||
Prepaid and Other Assets | 708 | — | 708 | 484 | 1,192 | ||||||||||||||||
Total Assets | 268,289 | — | 268,289 | 41,970 | 310,259 | ||||||||||||||||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' | |||||||||||||||||||||
EQUITY (DEFICIT) | |||||||||||||||||||||
Accounts Payable and Accrued Liabilities | 6,737 | (3,690 | ) | 3,047 | 341 | 3,388 | |||||||||||||||
Payable to Investors | — | 2,480 | 2,480 | 35,545 | 38,025 | ||||||||||||||||
Class Action Settlement Liability | 10,000 | — | 10,000 | (261 | ) | 9,739 | |||||||||||||||
Notes, at Fair Value | 226,794 | 1,242 | 228,036 | 6,182 | 234,218 | ||||||||||||||||
Repurchase and Indemnification Obligation | 32 | (32 | ) | — | — | — | |||||||||||||||
Repurchase Liability for Unvested Restricted Stock Awards | 609 | — | 609 | (50 | ) | 559 | |||||||||||||||
Total Liabilities | 244,172 | — | 244,172 | 41,757 | 285,929 | ||||||||||||||||
Convertible Preferred Stock | — | — | — | 44,822 | 44,822 | ||||||||||||||||
Stockholders' Equity (Deficit) | |||||||||||||||||||||
Convertible Preferred Stock | 273 | — | 273 | (273 | ) | — | |||||||||||||||
Common Stock | 75 | — | 75 | — | 75 | ||||||||||||||||
Additional Paid-In Capital | 128,140 | — | 128,140 | (44,464 | ) | 83,676 | |||||||||||||||
Less: Treasury Stock | (291 | ) | — | (291 | ) | — | (291 | ) | |||||||||||||
Accumulated Deficit | (104,080 | ) | — | (104,080 | ) | 128 | (103,952 | ) | |||||||||||||
Total Stockholders' Equity (Deficit) | 24,117 | — | 24,117 | (44,609 | ) | (20,492 | ) | ||||||||||||||
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | $ | 268,289 | $ | — | $ | 268,289 | $ | 41,970 | $ | 310,259 | |||||||||||
Consolidated Statement of Operations – Year ended December 31, 2013 | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
Revenues | |||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||
Transaction Fees, Net | $ | 16,471 | $ | (1,094 | ) | $ | 15,377 | $ | (47 | ) | $ | 15,330 | |||||||||
Rebates and promotions | (1,534 | ) | 1,534 | — | — | — | |||||||||||||||
Servicing Fees, Net | — | (69 | ) | (69 | ) | 328 | 259 | ||||||||||||||
Other Revenues | — | 1,274 | 1,274 | (337 | ) | 937 | |||||||||||||||
Total Operating Revenues | 14,937 | 1,645 | 16,582 | (56 | ) | 16,526 | |||||||||||||||
Interest Income | |||||||||||||||||||||
Interest Income on Borrower Loans | 35,526 | (609 | ) | 34,917 | 78 | 34,995 | |||||||||||||||
Interest Expense on Notes | (33,072 | ) | 118 | (32,954 | ) | (367 | ) | (33,321 | ) | ||||||||||||
Net Interest Income | 2,454 | (491 | ) | 1,963 | (289 | ) | 1,674 | ||||||||||||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 877 | — | 877 | (696 | ) | 181 | |||||||||||||||
Total Net Revenues | 18,268 | 1,154 | 19,422 | (1,041 | ) | 18,381 | |||||||||||||||
Cost of Revenues | |||||||||||||||||||||
Cost of Services | (2,056 | ) | 2,056 | — | — | — | |||||||||||||||
Provision for repurchase and indemnification obligation | (118 | ) | 118 | — | — | — | |||||||||||||||
(2,174 | ) | 2,174 | — | — | — | ||||||||||||||||
Expenses | — | ||||||||||||||||||||
Compensation and benefits | 13,079 | (13,079 | ) | — | — | — | |||||||||||||||
Marketing and advertising | 14,851 | (14,851 | ) | — | — | — | |||||||||||||||
Depreciation and amortization | 961 | (961 | ) | — | — | — | |||||||||||||||
Professional services | 1,979 | (1,979 | ) | — | — | — | |||||||||||||||
Facilities and maintenance | 1,764 | (1,764 | ) | — | — | — | |||||||||||||||
Class action settlement | 10,000 | (10,000 | ) | — | — | — | |||||||||||||||
Loss on impairment | 62 | (62 | ) | — | — | — | |||||||||||||||
Other | 1,733 | (1,733 | ) | — | — | — | |||||||||||||||
Origination and Servicing | — | 7,465 | 7,465 | (1,081 | ) | 6,384 | |||||||||||||||
Sales and Marketing | — | 16,740 | 16,740 | (9 | ) | 16,731 | |||||||||||||||
General and Administrative | — | 22,398 | 22,398 | (125 | ) | 22,273 | |||||||||||||||
Total Expenses | 44,429 | 2,174 | 46,603 | (1,215 | ) | 45,388 | |||||||||||||||
Interest income | 3 | (3 | ) | — | — | — | |||||||||||||||
Other income | 1,151 | (1,151 | ) | — | — | — | |||||||||||||||
Net Loss | $ | (27,181 | ) | $ | — | $ | (27,181 | ) | $ | 174 | $ | (27,007 | ) | ||||||||
Consolidated Statement of Cash Flows – Year ended December 31, 2013 | |||||||||||||||||||||
As previously | |||||||||||||||||||||
reported | Adjustments | As Restated | |||||||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||||||
Net Loss | $ | (27,181 | ) | $ | 174 | $ | (27,007 | ) | |||||||||||||
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | |||||||||||||||||||||
Change in Fair Value of Borrower Loans Receivable | 4,856 | 5,705 | 10,561 | ||||||||||||||||||
Change in Fair Value of Loans Held For Sale | 1 | (56 | ) | (55 | ) | ||||||||||||||||
Change in Fair Value of Notes | (5,734 | ) | (5,793 | ) | (11,527 | ) | |||||||||||||||
Depreciation and Amortization | 961 | 133 | 1,094 | ||||||||||||||||||
Change in Servicing Rights | — | (329 | ) | (329 | ) | ||||||||||||||||
Stock-Based Compensation Expense | 229 | 17 | 246 | ||||||||||||||||||
Loss on Impairment of Property and Equipment | 62 | 237 | 299 | ||||||||||||||||||
Class Action Settlement Liability | 10,000 | (261 | ) | 9,739 | |||||||||||||||||
Purchases of loans held sale | — | (184,807 | ) | (184,807 | ) | ||||||||||||||||
Proceeds from the sale of loans held for sale | — | 181,656 | 181,656 | ||||||||||||||||||
Changes in Operating Assets and Liabilities: | |||||||||||||||||||||
Restricted Cash Except for those Related to Investing Activities | (9,524 | ) | (11,681 | ) | (21,205 | ) | |||||||||||||||
Accounts Receivable | (126 | ) | (130 | ) | (256 | ) | |||||||||||||||
Prepaid and Other Assets | (332 | ) | 12 | (320 | ) | ||||||||||||||||
Accounts Payable and Accrued Liabilities | 1,962 | (2,731 | ) | (769 | ) | ||||||||||||||||
Payable to Investors | — | 21,028 | 21,028 | ||||||||||||||||||
Net cash used in Operating Activities | (24,826 | ) | 3,174 | (21,652 | ) | ||||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||
Purchase of Borrower Loans Held at Fair Value | (341,176 | ) | 171,317 | (169,859 | ) | ||||||||||||||||
Principal Payments of Borrower Loans Held at Fair Value | 105,692 | (15,638 | ) | 90,054 | |||||||||||||||||
Proceeds from Sale of Borrower Loans Held at Fair Value | 171,290 | (171,290 | ) | — | |||||||||||||||||
Purchases of Property and Equipment | (2,889 | ) | 175 | (2,714 | ) | ||||||||||||||||
Maturities of Short Term Investments | 1,000 | 1,619 | 2,619 | ||||||||||||||||||
Purchases of Short Term Investments | — | (1,271 | ) | (1,271 | ) | ||||||||||||||||
Repayment of Loans Held for Investment at Fair Value | 143 | (143 | ) | — | |||||||||||||||||
Origination of Loans Held for Investment at Fair Value | (14,296 | ) | 14,296 | — | |||||||||||||||||
Proceeds from sale of Borrower Loans at Fair Value | 10,410 | (10,410 | ) | — | |||||||||||||||||
Changes in Restricted Cash Related to Investing Activities | — | (7,685 | ) | (7,685 | ) | ||||||||||||||||
Net Cash Used in Investing Activities | (69,826 | ) | (19,030 | ) | (88,856 | ) | |||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Proceeds from Issuance of Notes Held at Fair Value | 169,742 | 844 | 170,586 | ||||||||||||||||||
Payment of Notes Held at Fair Value | (104,692 | ) | 15,011 | (89,681 | ) | ||||||||||||||||
Proceeds from Issuance of Convertible Preferred Stock, Net | 44,822 | — | 44,822 | ||||||||||||||||||
Proceeds from Early Exercise of Stock Options | 650 | 44 | 694 | ||||||||||||||||||
Repurchase of Restricted Stock | (41 | ) | (45 | ) | (86 | ) | |||||||||||||||
Proceeds from Exercise of Vested Stock Options | 210 | 2 | 212 | ||||||||||||||||||
Net Cash Provided by Financing Activities | 110,691 | 15,856 | 126,547 | ||||||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 16,039 | — | 16,039 | ||||||||||||||||||
Cash and Cash Equivalents at Beginning of the Year | 2,300 | — | 2,300 | ||||||||||||||||||
Cash and Cash Equivalents at end of the year | $ | 18,339 | $ | 18,339 | |||||||||||||||||
Cash Paid for Interest | $ | — | $ | 35,027 | $ | 35,027 | |||||||||||||||
Non-Cash Investing Activity- Accrual for Property and Equipment, Net | $ | — | $ | 175 | $ | 175 | |||||||||||||||
Prosper Funding LLC [Member] | |||||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||||
Restatement of Consolidated Balance Sheets, Consolidated Statements of Operations and Consolidated Statements of Cash Flows | The following tables present the impact of these corrections on the 2013 consolidated financial statements (in thousands, expect per share values): | ||||||||||||||||||||
Condensed Consolidated Balance Sheet - December 31, 2013 | |||||||||||||||||||||
As previously | As | ||||||||||||||||||||
reported | Reclassifications | Reclassified | Adjustments | As restated | |||||||||||||||||
Assets | |||||||||||||||||||||
Cash and Cash Equivalents | $ | 5,789 | $ | — | $ | 5,789 | $ | — | $ | 5,789 | |||||||||||
Restricted Cash | 12,299 | — | 12,299 | 34,351 | 46,650 | ||||||||||||||||
Short Term Investments | — | — | — | 1,271 | 1,271 | ||||||||||||||||
Loans Held for Sale, at Fair Value | 3,917 | — | 3,917 | (711 | ) | 3,206 | |||||||||||||||
Borrower Loans Receivable, at Fair Value | 226,238 | — | 226,238 | 6,866 | 233,104 | ||||||||||||||||
Property and Equipment, Net | 1,980 | — | 1,980 | (370 | ) | 1,610 | |||||||||||||||
Other Assets | 14 | — | 14 | 429 | 443 | ||||||||||||||||
Total Assets | 250,237 | — | 250,237 | 41,836 | 292,073 | ||||||||||||||||
Liabilities and Member's Equity | |||||||||||||||||||||
Accounts Payable and Accrued Liabilities | 3,712 | (3,690 | ) | 22 | 383 | 405 | |||||||||||||||
Payable to Investors | — | 2,480 | 2,480 | 35,541 | 38,021 | ||||||||||||||||
Notes, at Fair Value | 226,794 | 1,242 | 228,036 | 6,182 | 234,218 | ||||||||||||||||
Repurchase and Indemnification Obligation | 32 | (32 | ) | — | — | — | |||||||||||||||
Related Party Payable | 205 | — | 205 | — | 205 | ||||||||||||||||
Total Liabilities | 230,743 | — | 230,743 | 42,106 | 272,849 | ||||||||||||||||
Member's Equity | |||||||||||||||||||||
Member's Equity | 16,076 | — | 16,076 | (240 | ) | 15,836 | |||||||||||||||
Retained Earnings (Accumulated Deficit) | 3,418 | — | 3,418 | (30 | ) | 3,388 | |||||||||||||||
Total Member's Equity | 19,494 | — | 19,494 | (270 | ) | 19,224 | |||||||||||||||
Total Liabilities and Member's Equity | $ | 250,237 | $ | — | $ | 250,237 | $ | 41,836 | $ | 292,073 | |||||||||||
Consolidated Statement of Operations – Year ended December 31, 2013 | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
Revenues | |||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||
Administration Fee Revenue – Related Party | $ | 7,632 | $ | — | $ | 7,632 | $ | — | $ | 7,632 | |||||||||||
Servicing Income, Net | — | 397 | 397 | (25 | ) | 372 | |||||||||||||||
Other Revenues | — | 28 | 28 | 205 | 233 | ||||||||||||||||
Total Operating Revenues | 7,632 | 425 | 8,057 | 180 | 8,237 | ||||||||||||||||
Interest Income on Borrower Loans | 32,862 | (397 | ) | 32,465 | 140 | 32,605 | |||||||||||||||
Interest Expense on Notes | (30,564 | ) | — | (30,564 | ) | (192 | ) | (30,756 | ) | ||||||||||||
Net Interest Income | 2,298 | (397 | ) | 1,901 | (52 | ) | 1,849 | ||||||||||||||
Change in Fair Value on Borrower Loans, Loans Held for Sale and Notes, net | 877 | — | 877 | (28 | ) | 849 | |||||||||||||||
Total Net Revenues | 10,807 | (397 | ) | 10,835 | 100 | 10,935 | |||||||||||||||
Cost of Revenues | |||||||||||||||||||||
Cost of Services | (1,270 | ) | 1,270 | — | — | — | |||||||||||||||
Provision for repurchase and indemnification obligation | (83 | ) | 83 | — | — | — | |||||||||||||||
(1,353 | ) | 1,353 | — | — | — | ||||||||||||||||
Expenses | — | — | |||||||||||||||||||
Servicing | — | 1,891 | 1,891 | 131 | 2,022 | ||||||||||||||||
Administration Fee – Related Party | 5,053 | 5,053 | — | 5,053 | |||||||||||||||||
Depreciation and Amortization | 538 | (538 | ) | — | — | — | |||||||||||||||
Professional Services | 26 | (26 | ) | — | — | — | |||||||||||||||
Other Operating Expenses | 242 | (242 | ) | — | — | — | |||||||||||||||
General and Administration | — | 268 | 268 | (1 | ) | 267 | |||||||||||||||
Total Expenses | 5,859 | 1,353 | 7,212 | 130 | 7,342 | ||||||||||||||||
Other income | 28 | (28 | ) | — | — | — | |||||||||||||||
Total Net Income | $ | 3,623 | $ | — | $ | 3,623 | $ | (30 | ) | $ | 3,593 | ||||||||||
Condensed Consolidated Statements of Cash Flows – Year ended December 31, 2013 | |||||||||||||||||||||
As previously | |||||||||||||||||||||
reported | Adjustments | As restated | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net Income | $ | 3,623 | $ | (30 | ) | $ | 3,593 | ||||||||||||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: | |||||||||||||||||||||
Change in Fair Value of Notes | (5,734 | ) | (5,646 | ) | (11,380 | ) | |||||||||||||||
Change in Fair Value of Borrower Loans Receivable | 4,856 | 5,776 | 10,632 | ||||||||||||||||||
Change in Fair Value of Loans Held for Sale | 1 | (45 | ) | (44 | ) | ||||||||||||||||
Depreciation and Amortization | 538 | 133 | 671 | ||||||||||||||||||
Change in Servicing Rights | — | (292 | ) | (292 | ) | ||||||||||||||||
Purchase of loans held for at fair value | — | (184,807 | ) | (184,807 | ) | ||||||||||||||||
Proceeds from sales of Loans Held for Sale at fair value | — | 181,645 | 181,645 | ||||||||||||||||||
Changes in Operating Assets and Liabilities: | |||||||||||||||||||||
Restricted Cash | (8,155 | ) | (9,291 | ) | (17,446 | ) | |||||||||||||||
Other Assets | (13 | ) | 5 | (8 | ) | ||||||||||||||||
Accounts Payable and Accrued Liabilities | 2,924 | (2,817 | ) | 107 | |||||||||||||||||
Payable to Investors | — | 19,925 | 19,925 | ||||||||||||||||||
Net Related Party Payable | 205 | — | 205 | ||||||||||||||||||
Net Cash Used in Operating Activities | (1,755 | ) | 4,556 | 2,801 | |||||||||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||||||
Purchase of Borrower Loans Receivable Held at Fair Value | (331,353 | ) | 171,316 | (160,037 | ) | ||||||||||||||||
Principle Payment of Borrower Loans Receivable Held at Fair Value | 99,313 | (99,313 | ) | — | |||||||||||||||||
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | 171,290 | (87,613 | ) | 83,677 | |||||||||||||||||
Repayment of Loans Held for Investment at Fair Value | 143 | (143 | ) | — | |||||||||||||||||
Origination of Loans Held for Investment at Fair Value | (14,296 | ) | 14,296 | — | |||||||||||||||||
Proceeds from sale of Borrower Loans at Fair Value | 10,410 | (10,410 | ) | — | |||||||||||||||||
Purchases of Property and Equipment | (1,798 | ) | 1 | (1,797 | ) | ||||||||||||||||
Changes in Restricted Cash Related to Investing Activities | — | (8,576 | ) | (8,576 | ) | ||||||||||||||||
Net Cash Used in Investing Activities | (66,291 | ) | (20,442 | ) | (86,733 | ) | |||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Proceeds from Issuance of Notes Held at Fair Value | 159,921 | 843 | 160,764 | ||||||||||||||||||
Payment of Notes Held at Fair Value | (97,967 | ) | 15,043 | (82,924 | ) | ||||||||||||||||
Cash infusion from parent | 10,001 | — | 10,001 | ||||||||||||||||||
Net Cash Included in Transfer of Assets from Parent | 1,875 | — | 1,875 | ||||||||||||||||||
Net Cash Provided by Financing Activities | 73,830 | 15,886 | 89,716 | ||||||||||||||||||
Net Increase in Cash and Cash Equivalents | 5,784 | — | 5,784 | ||||||||||||||||||
Cash and Cash Equivalents at Beginning of the Period | 5 | — | 5 | ||||||||||||||||||
Cash and Cash Equivalents at End of the Period | 5,789 | — | 5,789 | ||||||||||||||||||
Supplemental Disclosure of Cash Flow Information: | |||||||||||||||||||||
Restricted Cash | 4,144 | 16,484 | 20,628 | ||||||||||||||||||
Short Term Investments | — | 1,271 | 1,271 | ||||||||||||||||||
Borrower Loans at Fair Value | 170,518 | (3,142 | ) | 167,376 | |||||||||||||||||
Property and Equipment, net | 721 | (237 | ) | 484 | |||||||||||||||||
Accrued Liabilities | (820 | ) | 689 | (131 | ) | ||||||||||||||||
Payable to Investors | — | (18,096 | ) | (18,096 | ) | ||||||||||||||||
Notes at Fair Value | (170,573 | ) | 2,815 | (167,758 | ) | ||||||||||||||||
Non-Cash Transfer | 3,990 | (216 | ) | 3,774 | |||||||||||||||||
Cash Transferred | 1,875 | — | 1,875 | ||||||||||||||||||
Total Transfer of Net Non-Cash Assets from PMI | 5,865 | (213 | ) | 5,649 | |||||||||||||||||
Cash Paid for Interest | — | 32,154 | 32,154 | ||||||||||||||||||
Non-Cash Financing Activity, Distribution to Parent | — | 24 | 24 | ||||||||||||||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Schedule of Quarterly Financial Information | The following tables present the impact of these corrections and corrections of other immaterial errors on the interim periods in the fiscal years ended December 31, 2014 and 2013 (in $ thousands, expect per share values and number of shares): | ||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||||||||
Total Revenues | — | * | — | — | — | ||||||||||||||||
Operating Revenues | 25,129 | * | 25,129 | (920 | ) | 24,209 | |||||||||||||||
Cost of Revenues | — | * | — | — | — | ||||||||||||||||
Net Revenues | 26,043 | * | 26,043 | (918 | ) | 25,125 | |||||||||||||||
Total Expenses | 23,319 | * | 23,319 | (1,538 | ) | 21,781 | |||||||||||||||
Other Income (Expenses), Net | — | * | — | — | — | ||||||||||||||||
Net Income | 2,724 | * | 2,724 | 620 | 3,344 | ||||||||||||||||
Basic and Diluted Earnings (Loss) per Share | (1.31 | ) | * | (1.31 | ) | 0.07 | (1.24 | ) | |||||||||||||
Basic and Diluted Shares | 9,280,334 | * | 9,280,334 | — | 9,280,334 | ||||||||||||||||
*The presentation of revenues for the three months ended September 30, 2014 represents the current presentation so no reclassification is needed. | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended June 30, 2014 | |||||||||||||||||||||
Total Revenues | 17,285 | (17,285 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 16,371 | 16,371 | 1,016 | 17,387 | ||||||||||||||||
Cost of Revenues | 821 | (821 | ) | — | — | — | |||||||||||||||
Net Revenues | 16,464 | 913 | 17,377 | 916 | 18,293 | ||||||||||||||||
Total Expenses | 16,559 | 823 | 17,382 | 197 | 17,579 | ||||||||||||||||
Other Income (Expenses), Net | 92 | (92 | ) | — | — | — | |||||||||||||||
Net Income | (3 | ) | (2 | ) | (5 | ) | 719 | 714 | |||||||||||||
Basic and Diluted Earnings per Share | — | — | — | 0.08 | 0.08 | ||||||||||||||||
Basic and Diluted Shares | 9,155,199 | — | 9,155,199 | — | 9,155,199 | ||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||
Total Revenues | 9,876 | (9,876 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 9,265 | 9,265 | (36 | ) | 9,229 | |||||||||||||||
Cost of Revenues | 587 | (587 | ) | — | — | — | |||||||||||||||
Net Revenues | 9,289 | 886 | 10,175 | (196 | ) | 9,979 | |||||||||||||||
Total Expenses | 11,754 | 587 | 12,341 | 356 | 12,697 | ||||||||||||||||
Other Income (Expenses), Net | 299 | (299 | ) | — | — | — | |||||||||||||||
Net Loss | (2,166 | ) | — | (2,166 | ) | (552 | ) | (2,718 | ) | ||||||||||||
Basic and Diluted Earnings (Loss) per Share | (0.32 | ) | — | (0.32 | ) | (0.08 | ) | (0.40 | ) | ||||||||||||
Basic and Diluted Shares | 6,868,153 | — | 6,868,153 | — | 6,868,153 | ||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended December 31, 2013 | |||||||||||||||||||||
Total Revenues | * | * | — | — | — | ||||||||||||||||
Operating Revenues | * | * | 7,476 | (199 | ) | 7,277 | |||||||||||||||
Cost of Revenues | * | * | — | — | — | ||||||||||||||||
Net Revenues | * | * | 8,460 | (370 | ) | 8,090 | |||||||||||||||
Total Expenses | * | * | 10,824 | (405 | ) | 10,419 | |||||||||||||||
Other Income (Expenses), Net | * | * | — | — | — | ||||||||||||||||
Net Loss | * | * | (2,364 | ) | 35 | (2,329 | ) | ||||||||||||||
*The three months ending December 31, 2013 were not previously presented as we are a smaller reporting company. | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||
Total Revenues | 4,542 | (4,542 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 4,405 | 4,405 | 111 | 4,516 | ||||||||||||||||
Cost of Revenues | 450 | (450 | ) | — | — | ||||||||||||||||
Net Revenues | 4,092 | 862 | 4,954 | (185 | ) | 4,769 | |||||||||||||||
Total Expenses | 9,467 | 450 | 9,917 | (236 | ) | 9,681 | |||||||||||||||
Other Income (Expenses), Net | 412 | (412 | ) | — | — | — | |||||||||||||||
Net Loss | (4,963 | ) | — | (4,963 | ) | 51 | (4,912 | ) | |||||||||||||
Basic and Diluted Earnings (Loss) per Share | (0.72 | ) | — | (0.72 | ) | 0 | (0.72 | ) | |||||||||||||
Basic and Diluted Shares | 6,927,648 | — | 6,868,153 | — | 6,868,153 | ||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended June 30, 2013 | |||||||||||||||||||||
Total Revenues | 3,405 | (3,405 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 3,257 | 3,257 | 81 | 3,338 | ||||||||||||||||
Cost of Revenues | 550 | (550 | ) | — | — | — | |||||||||||||||
Net Revenues | 2,855 | 1,133 | 3,988 | (228 | ) | 3,760 | |||||||||||||||
Total Expenses | 19,030 | 611 | 19,641 | (286 | ) | 19,355 | |||||||||||||||
Other Income (Expenses), Net | 522 | (522 | ) | — | — | — | |||||||||||||||
Net Loss | (15,653 | ) | — | (15,653 | ) | 57 | (15,596 | ) | |||||||||||||
Basic and Diluted Earnings (Loss) per Share | (2.39 | ) | (0 | ) | (2.39 | ) | 0.01 | (2.38 | ) | ||||||||||||
Basic and Diluted Shares | 6,553,785 | — | 6,553,785 | — | 6,553,785 | ||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||
Total Revenues | 1,703 | (1,703 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 1,443 | 1,443 | (48 | ) | 1,395 | |||||||||||||||
Cost of Revenues | 609 | (609 | ) | — | — | — | |||||||||||||||
Net Revenues | 1,094 | 927 | 2,021 | (259 | ) | 1,762 | |||||||||||||||
Total Expenses | 5,610 | 610 | 6,220 | (288 | ) | 5,932 | |||||||||||||||
Other Income (Expenses), Net | 317 | (317 | ) | — | — | — | |||||||||||||||
Net Loss | (4,199 | ) | — | (4,199 | ) | 29 | (4,170 | ) | |||||||||||||
Basic and Diluted Earnings (Loss) per Share | (0.77 | ) | — | (0.77 | ) | 0.01 | (0.76 | ) | |||||||||||||
Basic and Diluted Shares | 5,480,850 | — | 5,480,850 | — | 5,480,850 | ||||||||||||||||
Prosper Funding LLC [Member] | |||||||||||||||||||||
Schedule of Quarterly Financial Information | The following tables present the impact of these corrections and corrections of other immaterial errors on the interim periods in the fiscal years ended December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||||||||
Total Revenues | * | * | — | — | — | ||||||||||||||||
Operating Revenues | * | * | 10,783 | 284 | 11,067 | ||||||||||||||||
Cost of Revenues | * | * | — | — | — | ||||||||||||||||
Net Revenues | * | * | 11,716 | 346 | 12,062 | ||||||||||||||||
Total Expenses | * | * | 8,196 | (388 | ) | 7,808 | |||||||||||||||
Other Income | * | * | — | — | — | ||||||||||||||||
Net Income | * | * | 3,520 | 734 | 4,254 | ||||||||||||||||
*The revised revenue presentation was implemented for the three months ended September 30, 2014. | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended June 30, 2014 | |||||||||||||||||||||
Total Revenues | 7,766 | (7,766 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 6,852 | 6,852 | 1,428 | 8,280 | ||||||||||||||||
Cost of Revenues | 710 | (710 | ) | — | — | — | |||||||||||||||
Net Revenues | 7,056 | 802 | 7,858 | 1,430 | 9,288 | ||||||||||||||||
Total Expenses | 4,564 | 710 | 5,274 | 702 | 5,976 | ||||||||||||||||
Other Income | 92 | (92 | ) | — | — | — | |||||||||||||||
Net Income | 2,584 | — | 2,584 | 728 | 3,312 | ||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||
Total Revenues | 5,197 | (5,197 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 4,579 | 4,579 | 196 | 4,775 | ||||||||||||||||
Cost of Revenues | 459 | (459 | ) | — | — | — | |||||||||||||||
Net Revenues | 4,738 | 750 | 5,488 | 156 | 5,644 | ||||||||||||||||
Total Expenses | 2,941 | 459 | 3,400 | 596 | 3,996 | ||||||||||||||||
Other Income | 291 | (291 | ) | — | — | — | |||||||||||||||
Net Income | 2,088 | — | 2,088 | (440 | ) | 1,648 | |||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended December 31, 2013 | * | * | |||||||||||||||||||
Total Revenues | * | * | — | — | — | ||||||||||||||||
Operating Revenues | * | * | 3,859 | (50 | ) | 3,809 | |||||||||||||||
Cost of Revenues | * | * | — | — | — | ||||||||||||||||
Net Revenues | * | * | 4,797 | (14 | ) | 4,783 | |||||||||||||||
Total Expenses | * | * | 3,118 | 24 | 3,142 | ||||||||||||||||
Other Income | * | * | — | — | — | ||||||||||||||||
Net Income | * | * | 1,679 | (38 | ) | 1,641 | |||||||||||||||
*This period was not previously presented. | |||||||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||
Total Revenues | 2,646 | (2,646 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 2,131 | 2,131 | 157 | 2,288 | ||||||||||||||||
Cost of Revenues | 291 | (291 | ) | — | — | — | |||||||||||||||
Net Revenues | 2,355 | 324 | 2,679 | 97 | 2,776 | ||||||||||||||||
Total Expenses | 1,738 | 291 | 2,029 | 80 | 2,109 | ||||||||||||||||
Other Income | 33 | (33 | ) | — | — | — | |||||||||||||||
Net Income | 650 | — | 650 | 17 | 667 | ||||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended June 30, 2013 | |||||||||||||||||||||
Total Revenues | 1,978 | (1,978 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 1,546 | 1,546 | (14 | ) | 1,532 | |||||||||||||||
Cost of Revenues | 388 | (388 | ) | — | — | — | |||||||||||||||
Net Revenues | 1,590 | 686 | 2,276 | (3 | ) | 2,273 | |||||||||||||||
Total Expenses | 810 | 388 | 1,198 | 29 | 1,227 | ||||||||||||||||
Other Income | 298 | (298 | ) | — | — | — | |||||||||||||||
Net Income | 1,078 | — | 1,078 | (32 | ) | 1,046 | |||||||||||||||
As | Reclassifications | As | Adjustments | As Restated | |||||||||||||||||
previously | reclassified | ||||||||||||||||||||
reported | |||||||||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||
Total Revenues | 861 | (861 | ) | — | — | — | |||||||||||||||
Operating Revenues | — | 607 | 607 | — | 607 | ||||||||||||||||
Cost of Revenues | 324 | (324 | ) | — | — | — | |||||||||||||||
Net Revenues | 537 | 499 | 1,036 | 67 | 1,103 | ||||||||||||||||
Total Expenses | 525 | 324 | 849 | 15 | 864 | ||||||||||||||||
Other Income | 175 | (175 | ) | — | — | — | |||||||||||||||
Net Income | 187 | — | 187 | 52 | 239 | ||||||||||||||||
Organization_and_Business_Addi
Organization and Business - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2014 | |
State | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Entity incorporation date | 22-Mar-05 |
Percentage of notes allowed for members to purchase | 100.00% |
Number of states and district marketplace is open to investors | 31 |
Additional number of states and district marketplace is open to borrowers | 46 |
Prosper Funding LLC [Member] | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Percentage of notes allowed for members to purchase | 100.00% |
Number of states and district marketplace is open to investors | 31 |
Additional number of states and district marketplace is open to borrowers | 46 |
Loan term, description | three or five years |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Risk | ||
Significant Accounting Policies [Line Items] | ||
Number of significant types of risks | 2 | |
Servicing fee (in hundredths) | 1.00% | |
Advertising costs | $24,100,000 | $12,700,000 |
Comprehensive income (loss) | 0 | |
Prosper Funding LLC [Member] | ||
Significant Accounting Policies [Line Items] | ||
Servicing fee (in hundredths) | 1.00% | |
Comprehensive income (loss) | $0 | |
Minimum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Origination fee percentage (in hundredths) | 1.00% | |
Minimum [Member] | Internal Use Software and Website Development [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property and equipment, estimated useful life | 1 year | |
Minimum [Member] | Prosper Funding LLC [Member] | Internal Use Software and Website Development [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property and equipment, estimated useful life | 1 year | |
Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Origination fee percentage (in hundredths) | 5.00% | |
Maximum [Member] | Internal Use Software and Website Development [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property and equipment, estimated useful life | 3 years | |
Maximum [Member] | Prosper Funding LLC [Member] | Internal Use Software and Website Development [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property and equipment, estimated useful life | 3 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Borrower Loans | $273,243 | $233,105 |
Loans Held for Sale | 8,463 | 3,206 |
Liabilities | ||
Notes | 273,783 | 234,218 |
Prosper Funding LLC [Member] | ||
Assets | ||
Borrower Loans | 273,243 | 233,104 |
Loans Held for Sale | 8,463 | 3,206 |
Liabilities | ||
Notes | 273,783 | 234,218 |
Recurring [Member] | ||
Assets | ||
Borrower Loans | 273,243 | 233,105 |
Restricted Cash | 81,300 | 50,074 |
Short Term Investments | 1,274 | 1,271 |
Loans Held for Sale | 8,463 | 3,206 |
Total Assets | 364,280 | 287,656 |
Liabilities | ||
Notes | 273,783 | 234,218 |
Recurring [Member] | Prosper Funding LLC [Member] | ||
Assets | ||
Borrower Loans | 273,243 | 233,104 |
Restricted Cash | 73,103 | 46,900 |
Short Term Investments | 1,274 | |
Loans Held for Sale | 8,463 | 3,206 |
Total Assets | 356,083 | 284,481 |
Short Term Investments | 1,271 | |
Liabilities | ||
Notes | 273,783 | 234,218 |
Recurring [Member] | Level 1 Inputs [Member] | ||
Assets | ||
Restricted Cash | 76,783 | 49,904 |
Total Assets | 76,783 | 49,904 |
Recurring [Member] | Level 1 Inputs [Member] | Prosper Funding LLC [Member] | ||
Assets | ||
Restricted Cash | 73,103 | 46,900 |
Total Assets | 73,103 | 46,900 |
Recurring [Member] | Level 2 Inputs [Member] | ||
Assets | ||
Restricted Cash | 4,517 | 170 |
Short Term Investments | 1,274 | 1,271 |
Total Assets | 5,791 | 1,441 |
Recurring [Member] | Level 2 Inputs [Member] | Prosper Funding LLC [Member] | ||
Assets | ||
Short Term Investments | 1,274 | |
Total Assets | 1,274 | 1,271 |
Short Term Investments | 1,271 | |
Recurring [Member] | Level 3 Inputs [Member] | ||
Assets | ||
Borrower Loans | 273,243 | 233,105 |
Loans Held for Sale | 8,463 | 3,206 |
Total Assets | 281,706 | 236,311 |
Liabilities | ||
Notes | 273,783 | 234,218 |
Recurring [Member] | Level 3 Inputs [Member] | Prosper Funding LLC [Member] | ||
Assets | ||
Borrower Loans | 273,243 | 233,104 |
Loans Held for Sale | 8,463 | 3,206 |
Total Assets | 281,706 | 236,310 |
Liabilities | ||
Notes | $273,783 | $234,218 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Computers and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 8 years |
Internal Use Software and Website Development [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 1 year |
Internal Use Software and Website Development [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $19,849 | $6,397 |
Less accumulated depreciation and amortization | -5,425 | -3,371 |
Total property and equipment, net | 14,424 | 3,026 |
Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 4,042 | 3,217 |
Less accumulated depreciation and amortization | -2,917 | -1,607 |
Total property and equipment, net | 1,125 | 1,610 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 3,824 | 2,115 |
Internal-use Software and Website Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 4,486 | 3,592 |
Internal-use Software and Website Development Costs [Member] | Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 4,042 | 3,217 |
Office Equipment and Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 1,904 | 39 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 5,274 | |
Assets Not Yet Placed in Service [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $4,361 | $651 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $2,097,000 | $1,094,000 |
Capitalized internal-use software and website development costs | 846,000 | 1,561,000 |
Recorded internal-use software and website development impairment charges | 322,000 | 299,000 |
Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | 1,314,000 | 0 |
Capitalized internal-use software and website development costs | 1,798,000 | 671,000 |
Recorded internal-use software and website development impairment charges | $17,000 | $0 |
Borrower_Loans_Loans_Held_for_2
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Borrower Loans, Notes and Loans Held for Sale (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Borrower Loans [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | $268,598 | $228,184 |
Fair value adjustments | 4,645 | 4,921 |
Fair value | 273,243 | 233,105 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | 268,598 | 228,183 |
Fair value adjustments | 4,645 | 4,921 |
Fair value | 273,243 | 233,104 |
Notes [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | -272,269 | -232,093 |
Fair value adjustments | -1,514 | -2,125 |
Fair value | -273,783 | -234,218 |
Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | -272,269 | -232,093 |
Fair value adjustments | -1,514 | -2,125 |
Fair value | -273,783 | -234,218 |
Loans Held for Sale [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | 8,295 | 3,157 |
Fair value adjustments | 168 | 49 |
Fair value | 8,463 | 3,206 |
Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | 8,295 | 3,157 |
Fair value adjustments | 168 | 49 |
Fair value | $8,463 | $3,206 |
Borrower_Loans_Loans_Held_for_3
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Additional Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||
Fixed interest rate, Minimum | 5.77% | 5.65% |
Fixed interest rate, Maximum | 33.04% | 35.00% |
Loans maturity date | 31-Dec-19 | 31-Dec-18 |
Aggregate fair value adjustments | $16,300,000 | $15,900,000 |
Minimum number of days for which loans originated were delinquent | 90 days | 90 days |
Aggregate principal amount of loans originated | 1,700,000 | 1,900,000 |
Fair value of loans originated | 600,000 | 700,000 |
Borrower Loans receivable | 0 | 0 |
Prosper Funding LLC [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate, Minimum | 5.77% | 5.65% |
Fixed interest rate, Maximum | 33.04% | 35.00% |
Loans maturity date | 31-Dec-19 | 31-Dec-19 |
Aggregate fair value adjustments | 16,300,000 | 15,800,000 |
Minimum number of days for which loans originated were delinquent | 90 days | 90 days |
Aggregate principal amount of loans originated | 1,500,000 | 1,900,000 |
Fair value of loans originated | 140,000 | 700,000 |
Borrower Loans receivable | 0 | 0 |
Borrower Loans [Member] | ||
Debt Instrument [Line Items] | ||
Increase in interest receivable | 100,000 | 400,000 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | ||
Debt Instrument [Line Items] | ||
Increase in interest receivable | 100,000 | 300,000 |
Notes [Member] | ||
Debt Instrument [Line Items] | ||
Increase in interest payable | 200,000 | 50,000 |
Notes [Member] | Prosper Funding LLC [Member] | ||
Debt Instrument [Line Items] | ||
Increase in interest payable | $200,000 | $50,000 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Underlying notes and certificates original terms | 36 months | 12 months |
Minimum [Member] | Prosper Funding LLC [Member] | ||
Debt Instrument [Line Items] | ||
Underlying notes and certificates original terms | 36 months | 12 months |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Underlying notes and certificates original terms | 60 months | 60 months |
Maximum [Member] | Prosper Funding LLC [Member] | ||
Debt Instrument [Line Items] | ||
Underlying notes and certificates original terms | 60 months | 60 months |
Borrower_Loans_Loans_Held_for_4
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Fair Value Assumptions for Loans Held for Sale, Borrower Loans and Notes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | $4,800 | ||
Notes | 4,600 | ||
Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 4,800 | ||
Notes | 4,600 | ||
Discount rate assumption [Member] | Notes [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate assumption (in hundredths) | 5.25% | [1] | |
Discount rate assumption [Member] | Notes [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate assumption (in hundredths) | 5.25% | [1] | |
Discount rate assumption [Member] | Borrower Loans/Loans Held for Sale [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate assumption (in hundredths) | 5.25% | [1] | |
Discount rate assumption [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate assumption (in hundredths) | 5.25% | [1] | |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 270,672 | ||
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 270,672 | ||
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans/Loans Held for Sale [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 278,212 | ||
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 278,212 | ||
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 267,646 | ||
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 267,646 | ||
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans/Loans Held for Sale [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 275,108 | ||
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 275,108 | ||
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 276,983 | ||
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 276,983 | ||
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans/Loans Held for Sale [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 284,683 | ||
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 284,683 | ||
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 280,274 | ||
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 280,274 | ||
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans/Loans Held for Sale [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 288,059 | ||
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 288,059 | ||
Default rate assumption [Member] | Notes [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate assumption (in hundredths) | 12.06% | [1] | |
Default rate assumption [Member] | Notes [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Default rate assumption (in hundredths) | 12.06% | [1] | |
Default rate assumption [Member] | Borrower Loans/Loans Held for Sale [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate assumption (in hundredths) | 12.06% | ||
Default rate assumption [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Default rate assumption (in hundredths) | 12.06% | [1] | |
Default rate assumption [Member] | 0.8 Multiplier to Default Rate [Member] | Notes [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 280,696 | ||
Default rate assumption [Member] | 0.8 Multiplier to Default Rate [Member] | Notes [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 280,696 | ||
Default rate assumption [Member] | 0.8 Multiplier to Default Rate [Member] | Borrower Loans/Loans Held for Sale [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 288,507 | ||
Default rate assumption [Member] | 0.8 Multiplier to Default Rate [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 288,507 | ||
Default rate assumption [Member] | 0.9 Multiplier to Default Rate [Member] | Notes [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 277,253 | ||
Default rate assumption [Member] | 0.9 Multiplier to Default Rate [Member] | Notes [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 277,253 | ||
Default rate assumption [Member] | 0.9 Multiplier to Default Rate [Member] | Borrower Loans/Loans Held for Sale [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 284,968 | ||
Default rate assumption [Member] | 0.9 Multiplier to Default Rate [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 284,968 | ||
Default rate assumption [Member] | 1.1 Multiplier to Default Rate [Member] | Notes [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 270,357 | ||
Default rate assumption [Member] | 1.1 Multiplier to Default Rate [Member] | Notes [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 270,357 | ||
Default rate assumption [Member] | 1.1 Multiplier to Default Rate [Member] | Borrower Loans/Loans Held for Sale [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 277,881 | ||
Default rate assumption [Member] | 1.1 Multiplier to Default Rate [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 277,881 | ||
Default rate assumption [Member] | 1.2 Multiplier to Default Rate [Member] | Notes [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 267,012 | ||
Default rate assumption [Member] | 1.2 Multiplier to Default Rate [Member] | Notes [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Notes | 267,012 | ||
Default rate assumption [Member] | 1.2 Multiplier to Default Rate [Member] | Borrower Loans/Loans Held for Sale [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 274,443 | ||
Default rate assumption [Member] | 1.2 Multiplier to Default Rate [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Borrower loans | 274,443 | ||
[1] | Represents weighted average assumptions considering all credit grades. |
Borrower_Loans_Loans_Held_for_5
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) (Recurring [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Total | $2,093 | ($979) |
Purchase of Loans/Issuance of Notes, Total | 1,417,032 | 184,080 |
Principal repayments, Total | -173 | -373 |
Borrower loans sold to third parties, Total | -1,411,625 | -181,656 |
Change in fair value, Total | -596 | -1,021 |
Ending balance, Total | 7,923 | 2,093 |
Prosper Funding LLC [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Total | 2,092 | 0 |
Principal repayments, Total | -172 | -753 |
Ending balance, Total | 7,923 | 2,092 |
Assets transferred, Total | -382 | |
Originations, Total | 1,417,032 | 184,080 |
Borrower loans sold to third parties, Total | -1,411,625 | -181,645 |
Change in fair value of loans held for sale, Total | 596 | 792 |
Notes [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Liabilities | -234,218 | -164,840 |
Purchase of Loans/Issuance of Notes, Liabilities | -176,865 | -170,586 |
Principal repayments, Liabilities | 120,909 | 89,681 |
Borrower loans sold to third parties, Liabilities | 0 | 0 |
Change in fair value, Liabilities | 16,391 | 11,527 |
Ending balance, Liabilities | -273,783 | -234,218 |
Notes [Member] | Prosper Funding LLC [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Liabilities | -234,218 | 0 |
Principal repayments, Liabilities | 120,909 | 82,924 |
Change in fair value, Liabilities | 16,391 | 11,380 |
Ending balance, Liabilities | -273,783 | -234,218 |
Liabilities transferred | -167,758 | |
Originations, Liabilities | -176,865 | -160,764 |
Borrower loans sold to third parties, Liabilities | 0 | 0 |
Borrower Loans [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | 233,105 | 163,861 |
Purchase of Loans/Issuance of Notes, Assets | 177,088 | 169,859 |
Principal repayments, Assets | -121,082 | -90,054 |
Borrower loans sold to third parties, Assets | 0 | 0 |
Change in fair value, Assets | -15,868 | -10,561 |
Ending balance, Assets | 273,243 | 233,105 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | 233,104 | 0 |
Principal repayments, Assets | -121,081 | -83,677 |
Borrower loans sold to third parties, Assets | 0 | 0 |
Change in fair value, Assets | -15,868 | -10,632 |
Ending balance, Assets | 273,243 | 233,104 |
Assets transferred | 167,376 | |
Originations, Assets | 177,088 | 160,037 |
Loans Held for Sale [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | 3,206 | |
Purchase of Loans/Issuance of Notes, Assets | 1,416,809 | 184,807 |
Principal repayments, Assets | 0 | 0 |
Borrower loans sold to third parties, Assets | -1,411,625 | -181,656 |
Change in fair value, Assets | 73 | 55 |
Ending balance, Assets | 8,463 | 3,206 |
Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | 3,206 | 0 |
Principal repayments, Assets | 0 | 0 |
Borrower loans sold to third parties, Assets | -1,411,625 | -181,645 |
Change in fair value, Assets | 73 | 44 |
Ending balance, Assets | 8,463 | 3,206 |
Assets transferred | 0 | |
Originations, Assets | $1,416,809 | $184,807 |
Loan_Servicing_Assets_and_Liab2
Loan Servicing Assets and Liabilities - Additional Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Gain on sales of whole loans | $4,000,000 | $300,000 |
Impairment of loan | 0 | 0 |
Fixed interest rate, Minimum | 5.77% | 5.65% |
Fixed interest rate, Maximum | 33.04% | 35.00% |
Loans maturity date | 31-Dec-19 | 31-Dec-18 |
Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Gain on sales of whole loans | 4,000,000 | 300,000 |
Fixed interest rate, Minimum | 5.77% | 5.65% |
Fixed interest rate, Maximum | 33.04% | 35.00% |
Loans maturity date | 31-Dec-19 | 31-Dec-19 |
Impairment of servicing assets | 0 | 0 |
Borrower Loans [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Outstanding principle | 1,358,000,000 | 170,200,000 |
Fixed interest rate, Minimum | 6.05% | 6.05% |
Fixed interest rate, Maximum | 31.34% | 31.34% |
Loans maturity date | 31-Dec-19 | 31-Dec-18 |
Debt instrument, Description | At December 31, 2014, Borrower Loans that were facilitated and subsequently sold to unrelated third parties, but for which we retained servicing rights had a total outstanding principle balance of $1,358 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and maturity dates through December 2019. At December 31, 2013, Borrower Loans that were facilitated and subsequently sold but for which we retained servicing rights had a total outstanding principle balance of $170.2 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and maturity dates through December 2018. | |
Borrower Loans [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Outstanding principle | $1,045,000,000 | $159,800,000 |
Fixed interest rate, Minimum | 6.05% | 6.05% |
Fixed interest rate, Maximum | 31.34% | 31.34% |
Loans maturity date | 31-Dec-19 | 31-Dec-18 |
Debt instrument, Description | At December 31, 2014, loans that were facilitated and subsequently sold but for which we retained servicing rights had a total outstanding principle balance of $1,045 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and Maturity dates through December 2019. At December 31, 2013, loans that were facilitated and subsequently sold but for which we retained servicing rights had a total outstanding principle balance of $159.8 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and Maturity dates through December 2018. | |
Minimum [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Borrower loans original maturity term | 36 months | 12 months |
Minimum [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Borrower loans original maturity term | 36 months | 12 months |
Minimum [Member] | Borrower Loans [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Borrower loans original maturity term | 36 months | 36 months |
Minimum [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Borrower loans original maturity term | 36 months | 36 months |
Maximum [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Borrower loans original maturity term | 60 months | 60 months |
Maximum [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Borrower loans original maturity term | 60 months | 60 months |
Maximum [Member] | Borrower Loans [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Borrower loans original maturity term | 60 months | 60 months |
Maximum [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Borrower loans original maturity term | 60 months | 60 months |
Loan_Servicing_Assets_and_Liab3
Loan Servicing Assets and Liabilities - Significant Unobservable Inputs (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate | 0.70% | |
Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate | 0.70% | |
Minimum [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 15.00% | 15.00% |
Default rate | 2.62% | 1.73% |
Market servicing rate | 0.63% | |
Minimum [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 2.62% | 1.73% |
Default rate | 15.00% | 15.00% |
Market servicing rate | 0.63% | |
Maximum [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 25.00% | 25.00% |
Default rate | 26.32% | 19.75% |
Market servicing rate | 0.70% | |
Maximum [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 26.32% | 19.75% |
Default rate | 25.00% | 25.00% |
Market servicing rate | 0.70% |
Loan_Servicing_Assets_and_Liab4
Loan Servicing Assets and Liabilities - Schedule of Servicing Assets and Liabilities at Amortized Value (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loan servicing assets [Member] | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Amortized cost at beginning of period | $460 | |
Additions | 4,700 | 496 |
Less: Amortization | -997 | -36 |
Amortized cost at end of period | 4,163 | 460 |
Fair Value at end of period | 4,708 | |
Loan servicing assets [Member] | Prosper Funding LLC [Member] | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Amortized cost at beginning of period | 436 | |
Additions | 4,700 | 496 |
Less: Amortization | -799 | -36 |
Amortized cost at end of period | 3,116 | 436 |
Fair Value at end of period | 3,515 | |
Less: Transfers to PMI | -1,221 | -24 |
Loan servicing liabilities [Member] | ||
Servicing Liability at Amortized Cost [Roll Forward] | ||
Amortized cost at beginning of the period | 167 | |
Additions | 662 | 177 |
Less: Amortization | -205 | -10 |
Amortized cost at end of the period | 624 | 167 |
Fair Value at end of the period | 595 | |
Loan servicing liabilities [Member] | Prosper Funding LLC [Member] | ||
Servicing Liability at Amortized Cost [Roll Forward] | ||
Amortized cost at beginning of the period | 167 | |
Additions | 662 | 177 |
Less: Amortization | -205 | -10 |
Amortized cost at end of the period | 624 | 167 |
Fair Value at end of the period | $595 |
Loan_Servicing_Assets_and_Liab5
Loan Servicing Assets and Liabilities - Schedule of Estimated Fair Value of Servicing Assets and Liabilities (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Loan servicing assets [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.63% |
Increase (decrease) in fair value | |
Market servicing rate increase to 0.65% | ($348) |
Market servicing rate decrease to 0.60% | 348 |
Applying a 1.1 multiplier to default rate | -88 |
Applying a 0.9 multiplier to default rate | 89 |
Weighted average default assumptions | 13.00% |
Loan servicing assets [Member] | Prosper Funding LLC [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.63% |
Increase (decrease) in fair value | |
Market servicing rate increase to 0.65% | -260 |
Market servicing rate decrease to 0.60% | 260 |
Applying a 1.1 multiplier to default rate | -66 |
Applying a 0.9 multiplier to default rate | 66 |
Weighted average default assumptions | 10.00% |
Loan servicing liabilities [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.63% |
Increase (decrease) in fair value | |
Market servicing rate increase to 0.65% | 59 |
Market servicing rate decrease to 0.60% | -59 |
Applying a 1.1 multiplier to default rate | 1 |
Applying a 0.9 multiplier to default rate | -1 |
Weighted average default assumptions | 13.00% |
Loan servicing liabilities [Member] | Prosper Funding LLC [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.63% |
Increase (decrease) in fair value | |
Market servicing rate increase to 0.65% | 59 |
Market servicing rate decrease to 0.60% | -59 |
Applying a 1.1 multiplier to default rate | 1 |
Applying a 0.9 multiplier to default rate | ($1) |
Weighted average default assumptions | 10.00% |
Loan_Servicing_Assets_and_Liab6
Loan Servicing Assets and Liabilities - Schedule of Estimated Fair Value of Servicing Assets and Liabilities (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Servicing rate increase | 0.65% |
Servicing rate decrease | 0.60% |
Default rate increase | 1.10% |
Default rate decrease | 0.90% |
Prosper Funding LLC [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Servicing rate increase | 0.65% |
Servicing rate decrease | 0.60% |
Default rate increase | 1.10% |
Default rate decrease | 0.90% |
Net_Loss_Per_Share_Additional_
Net Loss Per Share - Additional Information (Details) | 0 Months Ended |
Oct. 29, 2013 | |
Earnings Per Share [Abstract] | |
Stock split conversion ratio | 0.1 |
Net_Loss_Per_Share_Basic_and_D
Net Loss Per Share - Basic and Diluted Loss Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Numerator [Abstract] | ||||||||
Net loss available to common stockholders for basic and diluted EPS | ($17,561) | ($27,007) | ||||||
Denominator [Abstract] | ||||||||
Weighted-Average Shares - Basic and Diluted Net Loss Per Share | 9,280,334 | 9,155,199 | 6,868,153 | 6,868,153 | 6,553,785 | 5,480,850 | 8,896,801 | 6,596,827 |
Basic and diluted net loss per share (in dollars per share) | ($1.24) | $0.08 | ($0.40) | ($0.72) | ($2.38) | ($0.76) | ($1.97) | ($4.09) |
Net_Loss_Per_Share_Dilutive_Sh
Net Loss Per Share - Dilutive Shares Excluded from the Diluted Net Loss Per Share Calculation (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 39,986,111 | 33,981,988 |
Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 30,699,957 | 27,274,068 |
Stock Options Issued and Outstanding [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 4,994,998 | 894,976 |
Unvested Stock Options Exercised [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 4,114,269 | 5,594,134 |
Warrants Issued and Outstanding [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 176,887 | 218,810 |
Convertible_Preferred_Stock_an2
Convertible Preferred Stock and Stockholders' Equity (Deficit) - Additional Information (Details) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||
Jul. 16, 2014 | Oct. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2013 | Jun. 18, 2014 | Sep. 30, 2013 | 31-May-14 | 15-May-14 | |
Class of Stock [Line Items] | |||||||||
Proceeds from issuance of preferred stock | $69,958,000 | $44,822,000 | |||||||
Converted ratio from preferred stock to common stock | 1 | ||||||||
Common stock convertible ratio if preferred stock did not participate | 10 | ||||||||
Repurchase of Preferred Stock | 18,500,000 | 18,527,000 | |||||||
Stock split conversion ratio | 0.1 | ||||||||
Dividends | 0 | ||||||||
Common stock, shares authorized (in shares) | 47,928,883 | 41,487,465 | |||||||
Common stock, par value (in dollars per share) | $0.01 | $0.01 | |||||||
Common stock, shares issued (in shares) | 14,448,700 | 13,588,803 | |||||||
Common stock, shares outstanding (in shares) | 14,448,700 | 13,588,803 | |||||||
Reverse stock split, shares issued (in shares) | 1 | ||||||||
Reverse stock split, shares converted (in shares) | 10 | ||||||||
Proceeds from Exercise of Vested Stock Options | 77,000 | 212,000 | |||||||
Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized (in shares) | 80,083,905 | ||||||||
Exercise of stock options (in shares) | 924,867 | 7,327,959 | |||||||
Proceeds from Exercise of Vested Stock Options | 890,000 | 860,000 | |||||||
Exercise of nonvested stock options (in shares) | 865,717 | 6,499,463 | |||||||
Unvested restricted stock outstanding (in shares) | 4,114,269 | 5,594,134 | |||||||
Stock repurchase upon termination of employment (in shares) | 181,893 | 414,130 | |||||||
Stock repurchase upon termination of employment | 90,000 | 20,000 | |||||||
Exercise of common stock warrants (in shares) | 116,923 | 820 | |||||||
Exercise of common stock warrants (in dollars per share) | $1.95 | $0.10 | |||||||
Common Stock Warrant [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized (in shares) | 47,928,883 | ||||||||
Common stock, par value (in dollars per share) | $0.01 | ||||||||
Common stock, shares issued (in shares) | 14,448,700 | 13,588,803 | |||||||
Common stock, shares outstanding (in shares) | 14,448,700 | 13,588,803 | |||||||
Series A Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued (in shares) | 13,868,152 | ||||||||
Convertible preferred stock, price per share (in dollars per share) | $1.44 | ||||||||
Proceeds from issuance of preferred stock | 19,800,000 | ||||||||
Common stock, shares authorized (in shares) | 13,868,152 | ||||||||
Series A 1 Convertible Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued (in shares) | 5,117,182 | ||||||||
Convertible preferred stock, price per share (in dollars per share) | $0.01 | ||||||||
Liquidation preference per share (in dollars per share) | $10 | ||||||||
Percentage of holders of preferred stock required to request for conversion, minimum (in hundredths) | 14.00% | ||||||||
Conversion ratio of preferred stock into prosper common stock | 1,000,000 | ||||||||
Series A 1 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Converted ratio from preferred stock to common stock | 1,000,000 | ||||||||
Liquidation preference per share (in dollars per share) | $10 | ||||||||
Common stock, shares authorized (in shares) | 5,117,182 | ||||||||
Series B Convertible Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued (in shares) | 1,392,757 | 8,288,734 | |||||||
Convertible preferred stock, price per share (in dollars per share) | $14.36 | $3.02 | |||||||
Proceeds from issuance of preferred stock | 24,900,000 | ||||||||
Liquidation preference per share (in dollars per share) | $3.02 | ||||||||
Stock issued during the period (in shares) | 1,133,558 | ||||||||
Conversion ratio of preferred stock into prosper common stock | 1 | ||||||||
Series C Convertible Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued (in shares) | 4,880,954 | ||||||||
Convertible preferred stock, price per share (in dollars per share) | $14.36 | ||||||||
Proceeds from issuance of preferred stock | 69,900,000 | ||||||||
Liquidation preference per share (in dollars per share) | $14.36 | ||||||||
Conversion ratio of preferred stock into prosper common stock | 1 | ||||||||
Series A Convertible Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued (in shares) | 1,392,757 | ||||||||
Convertible preferred stock, price per share (in dollars per share) | $14.36 | ||||||||
Liquidation preference per share (in dollars per share) | $1.44 | ||||||||
Stock issued during the period (in shares) | 156,508 | ||||||||
Conversion ratio of preferred stock into prosper common stock | 1 | ||||||||
Number of times the shareholders are entitled to receive the original issue price | 3 | ||||||||
Series B Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Value prior to closing of underwritten initial public offering | 750,000,000 | ||||||||
Aggregate proceeds to the entity before deducting underwriters commissions and expenses | $100,000,000 | ||||||||
Percentage of holders of preferred stock required to request for conversion, minimum (in hundredths) | 60.00% | ||||||||
Common stock, shares authorized (in shares) | 8,288,734 | ||||||||
Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized (in shares) | 32,155,022 | ||||||||
Common stock, par value (in dollars per share) | $0.01 | ||||||||
Series C Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized (in shares) | 4,880,954 |
Convertible_Preferred_Stock_an3
Convertible Preferred Stock and Stockholders' Equity (Deficit) - Summary of Shares Authorized, Issued, Outstanding, Par Value and Liquidation Preference of Convertible Preferred Stock (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Class of Stock [Line Items] | ||
Convertible preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Convertible preferred stock, shares authorized (in shares) | 32,155,022 | 27,274,068 |
Convertible preferred stock, shares outstanding and issued (in shares) | 30,699,957 | |
Convertible preferred stock, liquidation preference | $160,952 | $96,172 |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Convertible preferred stock, par value (in dollars per share) | $0.01 | |
Convertible preferred stock, shares authorized (in shares) | 13,868,152 | |
Convertible preferred stock, shares outstanding and issued (in shares) | 13,711,644 | |
Convertible preferred stock, liquidation preference | 19,774 | |
Series A 1 [Member] | ||
Class of Stock [Line Items] | ||
Convertible preferred stock, par value (in dollars per share) | $0.01 | |
Convertible preferred stock, shares authorized (in shares) | 5,117,182 | |
Convertible preferred stock, shares outstanding and issued (in shares) | 4,952,183 | |
Convertible preferred stock, liquidation preference | 49,522 | |
Series B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Convertible preferred stock, par value (in dollars per share) | $0.01 | |
Convertible preferred stock, shares authorized (in shares) | 8,288,734 | |
Convertible preferred stock, shares outstanding and issued (in shares) | 7,155,176 | |
Convertible preferred stock, liquidation preference | 21,581 | |
Series C Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Convertible preferred stock, par value (in dollars per share) | $0.01 | |
Convertible preferred stock, shares authorized (in shares) | 4,880,954 | |
Convertible preferred stock, shares outstanding and issued (in shares) | 4,880,954 | |
Convertible preferred stock, liquidation preference | $70,075 |
Stock_Option_Plan_and_Compensa2
Stock Option Plan and Compensation - Additional Information (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Oct. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period of the options | 1 year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | Options generally vest 25% one year from the vesting commencement date and 1/48th per month thereafter. | ||
Options exercisable, maximum period | 10 years | ||
Stock split conversion ratio | 0.1 | ||
Unrecognized cost of unvested share-based compensation awards. | $0 | ||
Dividend yield | 0.00% | 0.00% | |
Volatility of common stock | 68.28% | 75.34% | |
Risk-free interest rate | 1.79% | 1.78% | |
Expected life | 5 years 8 months 12 days | 5 years 9 months 18 days | |
Stock based compensation | 2,011,000 | 246,000 | |
Stock-Based Compensation Expense | 2,042,000 | 246,000 | |
Unamortized expense related to unvested stock-based awards | 5,800,000 | ||
Remaining weighted average vesting period | 3 years 4 months 24 days | ||
Options Issued and Outstanding, Options granted | 5,287,763 | ||
Weighted-Average Exercise Price, Options granted | $1.76 | ||
Weighted average grant fair value | $2.45 | ||
Options Issued and Outstanding, Options vested and exercisable at December 31, 2014 | 59,150 | ||
Stock option intrinsic value exercised | 300,000 | ||
Stock options estimated aggregate fair value | 13,000,000 | ||
Stock Options Issued and Outstanding [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-Based Compensation Expense | 600,000 | 0 | |
Internal-use Software and Website Development Costs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-Based Compensation Expense | 21,000 | 23,000 | |
Performance-based stock options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 1.66% | ||
Volatility of common stock | 66.00% | ||
Risk-free interest rate | 0.00% | ||
Expected life | 5 years 2 months 23 days | ||
Performance-based stock options granted | 2,032,896 | ||
Performance-based stock options granted, exercise price | $0.57 | ||
Performance-based stock options granted, contractual term | 10 years | ||
Performance-based stock options granted, vested | 1,924,896 | ||
Performance-based stock options granted, forfeited | 108,000 | ||
Stock based compensation | $587,000 | ||
2005 Stock Option Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options made available in pool (in shares) | 14,195,255 | ||
Shares available for grant under the plan | 1,488,494 | ||
Options Issued and Outstanding, Options granted | 5,287,763 | 7,912,933 | |
Weighted-Average Exercise Price, Options granted | $1.76 | $0.10 | |
Options Issued and Outstanding, Options vested and exercisable at December 31, 2014 | 3,921,049 |
Stock_Option_Plan_and_Compensa3
Stock Option Plan and Compensation - Schedule of Activity of Options that were Early Exercised under the Plan (Details) (Early Exercised Stock Options Under 2005 Stock Option Plan [Member], USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Early Exercised Stock Options Under 2005 Stock Option Plan [Member] | ||
Early exercised options, unvested [Roll Forward] | ||
Beginning balance | 5,594,134 | |
Exercise of non-vested stock options | 865,717 | 6,499,463 |
Repurchase of restricted stock | -181,893 | -414,130 |
Restricted stock vested | -2,165,689 | -491,199 |
Ending balance | 4,112,269 | 5,594,134 |
Options expected to vest | 3,674,592 | |
Weighted average exercise price [Abstract] | ||
Beginning balance | $0.12 | |
Exercise of non-vested stock options | $0.94 | $0.11 |
Repurchase of restricted stock | $0.10 | $0.21 |
Restricted stock vested | $0.16 | $0.10 |
Ending balance | $0.25 | $0.12 |
Options expected to vest | $0.25 | |
Ending balance | 2 years 2 months 23 days | |
Options expected to vest | 2 years 2 months 23 days | |
Ending balance | $74,473 | |
Options expected to vest | $66,547 |
Stock_Option_Plan_and_Compensa4
Stock Option Plan and Compensation - Additional Information Regarding Unvested Early exercised stock options outstanding (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
$0.10 - $0.10 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.10 |
Range of Exercise Prices, Maximum | $0.10 |
Number Outstanding | 3,520,635 |
Weighted Avg. Remaining Life | 2 years 1 month 21 days |
Weighted Avg. Exercise Price | $0.10 |
$0.57 - $0.57 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.57 |
Range of Exercise Prices, Maximum | $0.57 |
Number Outstanding | 528,495 |
Weighted Avg. Remaining Life | 2 years 7 months 21 days |
Weighted Avg. Exercise Price | $0.57 |
$5.65 - $5.65 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $5.65 |
Range of Exercise Prices, Maximum | $5.65 |
Number Outstanding | 63,139 |
Weighted Avg. Remaining Life | 2 years 7 months 2 days |
Weighted Avg. Exercise Price | $5.65 |
$0.10 - $5.65 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.10 |
Range of Exercise Prices, Maximum | $5.65 |
Number Outstanding | 4,112,269 |
Weighted Avg. Remaining Life | 2 years 2 months 23 days |
Weighted Avg. Exercise Price | $0.25 |
Stock_Option_Plan_and_Compensa5
Stock Option Plan and Compensation - Summarized Option Activity under Option Plan (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Options Issued and Outstanding [Roll Forward] | ||
Options Issued and Outstanding, Options granted | 5,287,763 | |
Options Issued and Outstanding, Options vested and exercisable at December 31, 2014 | 59,150 | |
Weighted-Average Exercise Price [Roll Forward] | ||
Weighted-Average Exercise Price, Options granted | $1.76 | |
2005 Stock Option Plan [Member] | ||
Options Issued and Outstanding [Roll Forward] | ||
Options Issued and Outstanding, Beginning Balance | 894,976 | 1,173,816 |
Options Issued and Outstanding, Options granted | 5,287,763 | 7,912,933 |
Options Issued and Outstanding, Options exercised – vested | -59,150 | -828,496 |
Options Issued and Outstanding, Options exercised – nonvested | -865,717 | -6,499,463 |
Options Issued and Outstanding, Options forefeited | -262,874 | -863,814 |
Options Issued and Outstanding, Ending balance | 4,994,998 | 894,976 |
Options Issued and Outstanding, Options vested and expected to vest as of December 31, 2014 | 4,463,370 | |
Options Issued and Outstanding, Options vested and exercisable at December 31, 2014 | 3,921,049 | |
Weighted-Average Exercise Price [Roll Forward] | ||
Weighted-Average Exercise Price, Beginning balance | $1.46 | $2.03 |
Weighted-Average Exercise Price, Options granted | $1.76 | $0.10 |
Weighted-Average Exercise Price, Options exercised – vested | $1.30 | $0.26 |
Weighted-Average Exercise Price, Options exercised – nonvested | $0.94 | $0.10 |
Weighted-Average Exercise Price, Options forefeited | $1.79 | $1.17 |
Weighted-Average Exercise Price, Ending balance | $1.85 | $1.46 |
Options expected to vest | $1.85 | |
Weighted-Average Exercise Price, Options vested and exercisable at December 31, 2014 | $1.32 | |
Weighted-Average Contractual Term [Roll Forward] | ||
Ending balance | 8 years 11 months 1 day | |
Options expected to vest | 8 years 11 months 1 day | |
Weighted Average Contractual Term, Options vested and exercisable at December 31, 2014 | 8 years 9 months | |
Aggregate Intrinsic Value [Roll Forward] | ||
Aggregate Intrinsic Value, Ending balance | $81,219 | |
Aggregate Intrinsic Value, Options vested and expected to vest as of December 31, 2014 | 72,574 | |
Aggregate Intrinsic Value, Options vested and exercisable at December 31, 2014 | $65,834 |
Stock_Option_Plan_and_Compensa6
Stock Option Plan and Compensation - Additional Information Regarding Common Stock Options Outstanding (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
$0.10 - $0.10 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.10 |
Range of Exercise Prices, Maximum | $0.10 |
Number Outstanding | 3,520,635 |
Weighted Avg. Remaining Life | 2 years 1 month 21 days |
Weighted Avg. Exercise Price | $0.10 |
$0.10 - $0.10 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.10 |
Range of Exercise Prices, Maximum | $0.10 |
Number Outstanding | 163,883 |
Weighted Avg. Remaining Life | 8 years 7 months 13 days |
Weighted Avg. Exercise Price | $0.10 |
Options Exercisable [Abstract] | |
Number Exercisable | 70,784 |
Weighted Avg. Exercise Price | $0.10 |
$0.57 - $0.57 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.57 |
Range of Exercise Prices, Maximum | $0.57 |
Number Outstanding | 528,495 |
Weighted Avg. Remaining Life | 2 years 7 months 21 days |
Weighted Avg. Exercise Price | $0.57 |
$0.57 - $0.57 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.57 |
Range of Exercise Prices, Maximum | $0.57 |
Number Outstanding | 3,170,301 |
Weighted Avg. Remaining Life | 9 years 1 month 13 days |
Weighted Avg. Exercise Price | $0.57 |
Options Exercisable [Abstract] | |
Number Exercisable | 1,983,728 |
Weighted Avg. Exercise Price | $0.57 |
$1.20 - $1.20 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $1.20 |
Range of Exercise Prices, Maximum | $1.20 |
Number Outstanding | 133,334 |
Weighted Avg. Remaining Life | 6 years 8 months 16 days |
Weighted Avg. Exercise Price | $1.20 |
Options Exercisable [Abstract] | |
Number Exercisable | 121,874 |
Weighted Avg. Exercise Price | $1.20 |
$1.70 - $1.70 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $1.70 |
Range of Exercise Prices, Maximum | $1.70 |
Number Outstanding | 77,552 |
Weighted Avg. Remaining Life | 7 years 4 months 13 days |
Weighted Avg. Exercise Price | $1.70 |
Options Exercisable [Abstract] | |
Number Exercisable | 62,724 |
Weighted Avg. Exercise Price | $1.70 |
$2.00 - $2.00 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $2 |
Range of Exercise Prices, Maximum | $2 |
Number Outstanding | 287,933 |
Weighted Avg. Remaining Life | 5 years 6 months 22 days |
Weighted Avg. Exercise Price | $2 |
Options Exercisable [Abstract] | |
Number Exercisable | 287,869 |
Weighted Avg. Exercise Price | $2 |
$5.00 to $5.00 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $5 |
Range of Exercise Prices, Maximum | $5 |
Number Outstanding | 7,000 |
Weighted Avg. Remaining Life | 1 year 9 months |
Weighted Avg. Exercise Price | $5 |
Options Exercisable [Abstract] | |
Number Exercisable | 7,000 |
Weighted Avg. Exercise Price | $5 |
$5.60 - $5.60 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $5.60 |
Range of Exercise Prices, Maximum | $5.60 |
Number Outstanding | 18,250 |
Weighted Avg. Remaining Life | 4 years 8 months 16 days |
Weighted Avg. Exercise Price | $5.60 |
Options Exercisable [Abstract] | |
Number Exercisable | 18,250 |
Weighted Avg. Exercise Price | $5.60 |
$5.65 - $5.65 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $5.65 |
Range of Exercise Prices, Maximum | $5.65 |
Number Outstanding | 63,139 |
Weighted Avg. Remaining Life | 2 years 7 months 2 days |
Weighted Avg. Exercise Price | $5.65 |
$5.65 - $5.65 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $5.65 |
Range of Exercise Prices, Maximum | $5.65 |
Number Outstanding | 1,136,745 |
Weighted Avg. Remaining Life | 9 years 8 months 16 days |
Weighted Avg. Exercise Price | $5.65 |
Options Exercisable [Abstract] | |
Number Exercisable | 737 |
Weighted Avg. Exercise Price | $5.65 |
$0.10 - $5.65 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.10 |
Range of Exercise Prices, Maximum | $5.65 |
Number Outstanding | 4,112,269 |
Weighted Avg. Remaining Life | 2 years 2 months 23 days |
Weighted Avg. Exercise Price | $0.25 |
$0.10 - $5.65 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.10 |
Range of Exercise Prices, Maximum | $5.65 |
Number Outstanding | 4,994,998 |
Weighted Avg. Remaining Life | 8 years 11 months 1 day |
Weighted Avg. Exercise Price | $1.85 |
Options Exercisable [Abstract] | |
Number Exercisable | 2,552,966 |
Weighted Avg. Exercise Price | $0.83 |
Stock_Option_Plan_and_Compensa7
Stock Option Plan and Compensation - Fair Value of Stock Option Awards (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair value of stock option awards [Abstract] | ||
Volatility of common stock | 68.28% | 75.34% |
Risk-free interest rate | 1.79% | 1.78% |
Expected life | 5 years 8 months 12 days | 5 years 9 months 18 days |
Dividend yield | 0.00% | 0.00% |
Stock_Option_Plan_and_Compensa8
Stock Option Plan and Compensation - Stock Based Compensation Included in Consolidated Statements of Operations (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation | $2,011 | $246 |
Origination and Servicing [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation | 104 | 16 |
Sales and Marketing [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation | 767 | 24 |
General and Administrative [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation | $1,140 | $206 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ||
Current Federal Tax Expense (Benefit) | $0 | $0 |
Current State and Local Tax Expense (Benefit) | 0 | 0 |
Deferred Federal Income Tax Expense (Benefit) | 0 | 0 |
Deferred State and Local Income Tax Expense (Benefit) | 0 | 0 |
Federal tax at statutory rate | 34.00% | 34.00% |
Deferred tax assets valuation, increased amount | 1,600,000 | |
Valuation allowance percentage change | 6.00% | |
Valuation allowance as percentage of net deferred tax asset | 100.00% | |
Valuation allowance | -29,498,000 | -27,890,000 |
Unrecognized tax benefits that would affect effective tax rate | 54,600,000 | |
Income tax reconciliation [Abstract] | ||
Net effective tax rate | 0.00% | 0.00% |
Prosper Funding LLC [Member] | ||
Income tax reconciliation [Abstract] | ||
Income tax provision | 0 | 0 |
Net effective tax rate | 0.00% | 0.00% |
Federal [Member] | ||
Income Taxes [Line Items] | ||
Net operating loss | 69,500,000 | |
Operating loss carryforwards, expiration period | 31-Dec-25 | |
Tax year subject to examination | 2011 | |
Federal [Member] | Research Tax Credit Carryforward [Member] | ||
Income Taxes [Line Items] | ||
Research and development tax credits | 0 | |
California [Member] | ||
Income Taxes [Line Items] | ||
Net operating loss | 83,800,000 | |
Operating loss carryforwards, expiration period | 31-Dec-15 | |
Tax year subject to examination | 2010 | |
California [Member] | Research Tax Credit Carryforward [Member] | ||
Income Taxes [Line Items] | ||
Research and development tax credits | $450,000 |
Income_Taxes_Effective_Income_
Income Taxes - Effective Income Tax Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Effective income tax rate reconciliation [Abstract] | ||
Federal tax at statutory rate | 34.00% | 34.00% |
State tax at statutory rate (net of federal benefit) | 1.00% | 2.00% |
Permanent items | 31.00% | 0.00% |
Stock compensation | -9.00% | 0.00% |
Change in valuation allowance | -66.00% | -38.00% |
Credits and Reserves | 9.00% | |
Other | 0.00% | 2.00% |
Total | 0.00% | 0.00% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets and liabilities [Abstract] | ||
Net operating loss carry forwards | $24,565 | $24,626 |
Research & other credits | 420 | 277 |
Fixed assets | 45 | 95 |
Settlement liability | 2,964 | 3,654 |
Stock compensation | 344 | 69 |
Accrued liabilities and other | 2,320 | 247 |
Total | 30,658 | 28,968 |
Fair value of loans | -1,160 | -1,078 |
Valuation allowance | ($29,498) | ($27,890) |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Unrecognized tax benefits [Roll Forward] | ||
Beginning balance | $219 | $54,571 |
Increase related to tax position of prior years | 54,352 | |
Ending balance | $54,571 | $54,571 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2008 | Oct. 16, 2008 | |
Installment | ||||
State | ||||
Commitments And Contingencies [Line Items] | ||||
Non cancelable operating lease expiration | 2015-08 | |||
Office lease expiration | 2022-06 | |||
Rental expense under operating lease arrangements | $2,000,000 | $600,000 | ||
Minimum annual fee | 1,400,000 | |||
Purchase of borrower loans | 16,700,000 | |||
Outstanding balance of the borrower loan issued | 1,358,000,000 | |||
Accrued repurchase and indemnification obligation | 171,000 | 40,000 | ||
Securities Law Compliance [Abstract] | ||||
Amount of loans sold to lender members | 178,000,000 | |||
Aggregate amount of payment for penalties | 1,000,000 | |||
Number of states with which company entered into consent order | 34 | |||
Aggregate amount paid by entity for penalties to states | 470,000 | |||
Accrued contingent liability associated with states not entered into consent orders | 250,000 | 250,000 | ||
Maximum fee liability taken to estimate accrued contingent liability | 1,000,000 | |||
Agreed amount of settlement liability payable to plaintiffs | 10,000,000 | |||
Number of annual installments paid to plaintiffs | 4 | |||
Settlement installment due in 2014 | 2,000,000 | |||
Settlement installment due in 2015 | 2,000,000 | |||
Settlement installment due in 2016 | 3,000,000 | |||
Settlement installment due in 2017 | 3,000,000 | |||
Class action settlement liability | 7,861,000 | 9,739,000 | ||
Prosper Funding LLC [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Minimum annual fee | 1,400,000 | |||
Purchase of borrower loans | 16,700,000 | |||
Outstanding balance of the borrower loan issued | 1,358,000,000 | |||
Accrued repurchase and indemnification obligation | $171,000 | $40,000 | ||
San Francisco California | ||||
Commitments And Contingencies [Line Items] | ||||
Non cancelable operating lease expiration | 2023-02 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases Future Minimum Payments Due [Abstract] | |
2015 | $2,425 |
2016 | 3,755 |
2017 | 3,866 |
2018 | 3,977 |
2019 | 4,093 |
Thereafter | 13,091 |
Total future operating lease obligations | $31,207 |
Related_Parties_Additional_Inf
Related Parties - Additional Information (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Minimum percentage of voting securities considered for related parties | 10.00% | |
Servicing fees revenue earned by entity | $13 | $1 |
Prosper Funding LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Minimum percentage of voting securities considered for related parties | 10.00% | |
Servicing fees revenue earned by entity | $13 | $1 |
Related_Parties_Aggregate_Amou
Related Parties - Aggregate Amount of Notes Purchased and the Income Earned (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Aggregate amount of notes purchased | $1,169 | $1,823 |
Interest earned on Notes | 173 | 64 |
Notes balance | 1,690 | 1,389 |
Executive Officers & Management [Member] | ||
Related Party Transaction [Line Items] | ||
Aggregate amount of notes purchased | 1,127 | 1,096 |
Interest earned on Notes | 163 | 12 |
Notes balance | 1,614 | 1,067 |
Directors [Member] | ||
Related Party Transaction [Line Items] | ||
Aggregate amount of notes purchased | 42 | 727 |
Interest earned on Notes | 10 | 52 |
Notes balance | $76 | $322 |
Postretirement_Benefit_Plans_A
Postretirement Benefit Plans - Additional Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ||
Deferred compensation arrangement with eligible employees, percentage | 90.00% | |
Employer contribution during the period | $380,000 | $0 |
Significant_Concentrations_Det
Significant Concentrations (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Party 1 [Member] | ||
Significant Concentrations [Line Items] | ||
Percentage of loans purchased | 37.00% | 31.00% |
Party 1 [Member] | Prosper Funding LLC [Member] | ||
Significant Concentrations [Line Items] | ||
Percentage of loans purchased | 37.00% | 31.00% |
Party 2 [Member] | ||
Significant Concentrations [Line Items] | ||
Percentage of loans purchased | 13.00% | 16.00% |
Party 2 [Member] | Prosper Funding LLC [Member] | ||
Significant Concentrations [Line Items] | ||
Percentage of loans purchased | 13.00% | 16.00% |
Party 3 [Member] | ||
Significant Concentrations [Line Items] | ||
Percentage of loans purchased | 22.00% | 4.00% |
Party 3 [Member] | Prosper Funding LLC [Member] | ||
Significant Concentrations [Line Items] | ||
Percentage of loans purchased | 22.00% | 4.00% |
Segments_Additional_Informatio
Segments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 1 |
Prior_Period_Adjustments_Addit
Prior Period Adjustments - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Overstatement of transaction fee revenues and origination and Servicing expenses | $1,300,000 | ||||||||
Understatement of transaction fee revenue | 1,100,000 | ||||||||
Change in fair values on borrower loans, loans held for sale and notes | 550,000 | ||||||||
Reclassification, Convertible Preferred Stock to Temporary Equity | 0 | 114,800,000 | 44,900,000 | 44,900,000 | 44,900,000 | 19,900,000 | 19,900,000 | 44,800,000 | |
Overstatement of gain recognized on sale of loans | 25,000 | ||||||||
Amount reclassified from adjusted gross servicing asset | 400 | ||||||||
Reclassification, accounts payable and other liabilities | 170 | ||||||||
Administrative expense due to overstatement of class action settlement liability | 260 | ||||||||
Borrower Loans And Notes | 1,900,000 | ||||||||
Borrower loans | 4,800,000 | 4,800,000 | |||||||
Notes | 4,600,000 | 4,600,000 | |||||||
Notes balance | 800,000 | 800,000 | |||||||
Understatement of Payable Investors | 800,000 | 800,000 | |||||||
Impairment Charges | 322,000 | 299,000 | |||||||
Depreciation and Amortization | 2,097,000 | 1,094,000 | |||||||
Property and Equipment, Net | 3,026,000 | 14,424,000 | 3,026,000 | ||||||
Overstatement of deferred tax related NOL carryforward and valuation allowance | 12,000,000 | ||||||||
Understatement of Cash Flows from Operating Activities | -2,900,000 | -21,652,000 | |||||||
Overstatement of Cash Flows from Investing Activities | -73,357,000 | -88,856,000 | |||||||
Understatement of Cash Flows from Financing Activities | 108,475,000 | 126,547,000 | |||||||
Understatement of calculation of weighted average shares | 29,626 | ||||||||
Overstatement of Earnings Per Share Basic And Diluted | $0.02 | ||||||||
Prosper Funding LLC [Member] | |||||||||
Overstatement of transaction fee revenues and origination and Servicing expenses | 1,900,000 | ||||||||
Overstatement of gain recognized on sale of loans | 250,000 | ||||||||
Amount reclassified from adjusted gross servicing asset | 400,000 | ||||||||
Reclassification, accounts payable and other liabilities | 170,000 | ||||||||
Borrower loans | 4,800,000 | 4,800,000 | |||||||
Notes | 4,600,000 | 4,600,000 | |||||||
Notes balance | 800,000 | 800,000 | |||||||
Understatement of Payable Investors | 800,000 | 800,000 | |||||||
Impairment Charges | 17,000 | 0 | |||||||
Depreciation and Amortization | 1,331,000 | 671,000 | |||||||
Property and Equipment, Net | 1,610,000 | 1,125,000 | 1,610,000 | ||||||
Overstatement of Note Balances | 1,400,000 | ||||||||
Understatement of Payable Investors | 1,400,000 | ||||||||
Understatement of Cash Flows from Operating Activities | 3,946,000 | 2,801,000 | |||||||
Overstatement of Cash Flows from Investing Activities | -56,914,000 | -86,733,000 | |||||||
Understatement of Cash Flows from Financing Activities | 70,956,000 | 89,716,000 | |||||||
Adjustment [Member] | |||||||||
Restricted cash | 35,872,000 | 35,872,000 | |||||||
Impairment Charges | 240,000 | ||||||||
Depreciation and Amortization | 133,000 | ||||||||
Property and Equipment, Net | -370,000 | -370,000 | |||||||
Overstatement of Note Balances | 1,400,000 | ||||||||
Understatement of Payable Investors | 1,400,000 | ||||||||
Understatement of Cash Flows from Operating Activities | -3,100,000 | ||||||||
Overstatement of Cash Flows from Investing Activities | 19,000,000 | ||||||||
Understatement of Cash Flows from Financing Activities | -15,900,000 | ||||||||
Common shares outstanding | 13,588,803 | 13,588,803 | |||||||
Adjustment [Member] | Prosper Funding LLC [Member] | |||||||||
Restricted cash | 35,600,000 | 35,600,000 | |||||||
Depreciation and Amortization | 133,000 | ||||||||
Property and Equipment, Net | -370,000 | -370,000 | |||||||
Understatement of Cash Flows from Operating Activities | 4,556,000 | ||||||||
Overstatement of Cash Flows from Investing Activities | -20,442,000 | ||||||||
Understatement of Cash Flows from Financing Activities | 15,886,000 | ||||||||
Previously Stated [Member] | |||||||||
Depreciation and Amortization | 961,000 | ||||||||
Property and Equipment, Net | 3,396,000 | 3,396,000 | |||||||
Common shares outstanding | 13,902,478 | 13,902,478 | |||||||
Previously Stated [Member] | Prosper Funding LLC [Member] | |||||||||
Depreciation and Amortization | 538,000 | ||||||||
Property and Equipment, Net | 1,980,000 | 1,980,000 | |||||||
Understatement of Cash Flows from Operating Activities | -1,755,000 | ||||||||
Overstatement of Cash Flows from Investing Activities | -66,291,000 | ||||||||
Understatement of Cash Flows from Financing Activities | $73,830,000 |
Prior_Period_Adjustments_Conso
Prior Period Adjustments - Consolidated Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
ASSETS | |||
Cash and Cash Equivalents | $50,557 | $18,339 | $2,300 |
Restricted Cash | 81,300 | 49,824 | |
Short Term Investments | 1,274 | 1,271 | |
Accounts Receivable | 3,152 | 296 | |
Loans Held for Sale, at Fair Value | 8,463 | 3,206 | |
Borrower Loans, at Fair Value | 273,243 | 233,105 | |
Property and Equipment, Net | 14,424 | 3,026 | |
Prepaid and Other Assets | 7,745 | 1,192 | |
Total Assets | 440,158 | 310,259 | |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Accounts Payable and Accrued Liabilities | 17,239 | 3,388 | |
Payable to Investors | 64,494 | 38,025 | |
Class Action Settlement Liability | 7,861 | 9,739 | |
Notes, at Fair Value | 273,783 | 234,218 | |
Repurchase Liability for Unvested Restricted Stock Awards | 1,010 | 559 | |
Total Liabilities | 364,387 | 285,929 | |
Convertible Preferred Stock | 44,822 | ||
Stockholders' Equity (Deficit) | |||
Convertible Preferred Stock | 111,145 | 44,822 | |
Common Stock | 102 | 75 | |
Additional Paid-In Capital | 86,340 | 83,676 | |
Less: Treasury Stock | -303 | -291 | |
Accumulated Deficit | -121,513 | -103,952 | |
Total Stockholders' Equity (Deficit) | -35,374 | -20,492 | -74,333 |
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | 440,158 | 310,259 | |
Prosper Funding LLC [Member] | |||
ASSETS | |||
Cash and Cash Equivalents | 23,777 | 5,789 | 5 |
Restricted Cash | 73,103 | 46,650 | |
Short Term Investments | 1,274 | 1,271 | |
Loans Held for Sale, at Fair Value | 8,463 | 3,206 | |
Borrower Loans, at Fair Value | 273,243 | 233,104 | |
Property and Equipment, Net | 1,125 | 1,610 | |
Other Assets | 3,120 | 443 | |
Total Assets | 385,240 | 292,073 | |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Accounts Payable and Accrued Liabilities | 1,357 | 405 | |
Payable to Investors | 63,809 | 38,021 | |
Notes, at Fair Value | 273,783 | 234,218 | |
Related Party Payable | 205 | ||
Total Liabilities | 338,949 | 272,849 | |
Stockholders' Equity (Deficit) | |||
Member's Equity | 29,619 | 15,836 | |
Accumulated Deficit | 16,672 | 3,388 | |
Total Stockholders' Equity (Deficit) | 46,291 | 19,224 | 5 |
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | 385,240 | 292,073 | |
Previously Stated [Member] | |||
ASSETS | |||
Cash and Cash Equivalents | 18,339 | 2,300 | |
Restricted Cash | 15,473 | ||
Accounts Receivable | 218 | ||
Loans Held for Sale, at Fair Value | 3,917 | ||
Borrower Loans, at Fair Value | 226,238 | ||
Property and Equipment, Net | 3,396 | ||
Prepaid and Other Assets | 708 | ||
Total Assets | 268,289 | ||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Accounts Payable and Accrued Liabilities | 6,737 | ||
Class Action Settlement Liability | 10,000 | ||
Notes, at Fair Value | 226,794 | ||
Repurchase and Indemnification Obligation | 32 | ||
Repurchase Liability for Unvested Restricted Stock Awards | 609 | ||
Total Liabilities | 244,172 | ||
Stockholders' Equity (Deficit) | |||
Convertible Preferred Stock | 273 | ||
Common Stock | 75 | ||
Additional Paid-In Capital | 128,140 | ||
Less: Treasury Stock | -291 | ||
Accumulated Deficit | -104,080 | ||
Total Stockholders' Equity (Deficit) | 24,117 | 6,037 | |
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | 268,289 | ||
Previously Stated [Member] | Prosper Funding LLC [Member] | |||
ASSETS | |||
Cash and Cash Equivalents | 5,789 | 5 | |
Restricted Cash | 12,299 | ||
Loans Held for Sale, at Fair Value | 3,917 | ||
Borrower Loans, at Fair Value | 226,238 | ||
Property and Equipment, Net | 1,980 | ||
Other Assets | 14 | ||
Total Assets | 250,237 | ||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Accounts Payable and Accrued Liabilities | 3,712 | ||
Notes, at Fair Value | 226,794 | ||
Repurchase and Indemnification Obligation | 32 | ||
Related Party Payable | 205 | ||
Total Liabilities | 230,743 | ||
Stockholders' Equity (Deficit) | |||
Member's Equity | 16,076 | ||
Accumulated Deficit | 3,418 | ||
Total Stockholders' Equity (Deficit) | 19,494 | ||
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | 250,237 | ||
Reclassification | |||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Accounts Payable and Accrued Liabilities | -3,690 | ||
Payable to Investors | 2,480 | ||
Notes, at Fair Value | 1,242 | ||
Repurchase and Indemnification Obligation | -32 | ||
Reclassification | Prosper Funding LLC [Member] | |||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Accounts Payable and Accrued Liabilities | -3,690 | ||
Payable to Investors | 2,480 | ||
Notes, at Fair Value | 1,242 | ||
Repurchase and Indemnification Obligation | -32 | ||
As Reclassified | |||
ASSETS | |||
Cash and Cash Equivalents | 18,339 | ||
Restricted Cash | 15,473 | ||
Accounts Receivable | 218 | ||
Loans Held for Sale, at Fair Value | 3,917 | ||
Borrower Loans, at Fair Value | 226,238 | ||
Property and Equipment, Net | 3,396 | ||
Prepaid and Other Assets | 708 | ||
Total Assets | 268,289 | ||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Accounts Payable and Accrued Liabilities | 3,047 | ||
Payable to Investors | 2,480 | ||
Class Action Settlement Liability | 10,000 | ||
Notes, at Fair Value | 228,036 | ||
Repurchase Liability for Unvested Restricted Stock Awards | 609 | ||
Total Liabilities | 244,172 | ||
Stockholders' Equity (Deficit) | |||
Convertible Preferred Stock | 273 | ||
Common Stock | 75 | ||
Additional Paid-In Capital | 128,140 | ||
Less: Treasury Stock | -291 | ||
Accumulated Deficit | -104,080 | ||
Total Stockholders' Equity (Deficit) | 24,117 | ||
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | 268,289 | ||
As Reclassified | Prosper Funding LLC [Member] | |||
ASSETS | |||
Cash and Cash Equivalents | 5,789 | ||
Restricted Cash | 12,299 | ||
Loans Held for Sale, at Fair Value | 3,917 | ||
Borrower Loans, at Fair Value | 226,238 | ||
Property and Equipment, Net | 1,980 | ||
Other Assets | 14 | ||
Total Assets | 250,237 | ||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Accounts Payable and Accrued Liabilities | 22 | ||
Payable to Investors | 2,480 | ||
Notes, at Fair Value | 228,036 | ||
Related Party Payable | 205 | ||
Total Liabilities | 230,743 | ||
Stockholders' Equity (Deficit) | |||
Member's Equity | 16,076 | ||
Accumulated Deficit | 3,418 | ||
Total Stockholders' Equity (Deficit) | 19,494 | ||
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | 250,237 | ||
Adjustment [Member] | |||
ASSETS | |||
Restricted Cash | 34,351 | ||
Short Term Investments | 1,271 | ||
Accounts Receivable | 78 | ||
Loans Held for Sale, at Fair Value | -711 | ||
Borrower Loans, at Fair Value | 6,867 | ||
Property and Equipment, Net | -370 | ||
Prepaid and Other Assets | 484 | ||
Total Assets | 41,970 | ||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Accounts Payable and Accrued Liabilities | 341 | ||
Payable to Investors | 35,545 | ||
Class Action Settlement Liability | -261 | ||
Notes, at Fair Value | 6,182 | ||
Repurchase Liability for Unvested Restricted Stock Awards | -50 | ||
Total Liabilities | 41,757 | ||
Convertible Preferred Stock | 44,822 | ||
Stockholders' Equity (Deficit) | |||
Convertible Preferred Stock | -273 | ||
Additional Paid-In Capital | -44,464 | ||
Accumulated Deficit | 128 | ||
Total Stockholders' Equity (Deficit) | -44,609 | -80,370 | |
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | 41,970 | ||
Adjustment [Member] | Prosper Funding LLC [Member] | |||
ASSETS | |||
Restricted Cash | 34,351 | ||
Short Term Investments | 1,271 | ||
Loans Held for Sale, at Fair Value | -711 | ||
Borrower Loans, at Fair Value | 6,866 | ||
Property and Equipment, Net | -370 | ||
Other Assets | 429 | ||
Total Assets | 41,836 | ||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Accounts Payable and Accrued Liabilities | 383 | ||
Payable to Investors | 35,541 | ||
Notes, at Fair Value | 6,182 | ||
Total Liabilities | 42,106 | ||
Stockholders' Equity (Deficit) | |||
Member's Equity | -240 | ||
Accumulated Deficit | -30 | ||
Total Stockholders' Equity (Deficit) | -270 | ||
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | $41,836 |
Prior_Period_Adjustments_Conso1
Prior Period Adjustments - Consolidated Statements of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Revenues | |||||||||
Transaction Fees, Net | $68,229 | $15,330 | |||||||
Servicing Fees, Net | 4,552 | 259 | |||||||
Other Revenues | 5,055 | 937 | |||||||
Total Operating Revenues | 24,209 | 17,387 | 9,229 | 7,277 | 4,516 | 3,338 | 1,395 | 77,836 | 16,526 |
Interest Income on Borrower Loans | 42,087 | 34,995 | |||||||
Interest Expense on Notes | -38,734 | -33,321 | |||||||
Net Interest Income | 3,353 | 1,674 | |||||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 128 | 181 | |||||||
Total Net Revenues | 25,125 | 18,293 | 9,979 | 8,090 | 4,769 | 3,760 | 1,762 | 81,317 | 18,381 |
Interest Income on Borrower Loans | 42,087 | 34,995 | |||||||
Interest Expense on Notes | -38,734 | -33,321 | |||||||
Net Interest Income | 3,353 | 1,674 | |||||||
Total Net Revenues | 25,125 | 18,293 | 9,979 | 8,090 | 4,769 | 3,760 | 1,762 | 81,317 | 18,381 |
Expenses | |||||||||
Depreciation and Amortization | 2,097 | 1,094 | |||||||
Origination and Servicing | 14,098 | 6,384 | |||||||
Sales and Marketing | 41,971 | 16,731 | |||||||
General and Administrative | 27,917 | 22,273 | |||||||
Total Expenses | 21,781 | 17,579 | 12,697 | 10,419 | 9,681 | 19,355 | 5,932 | 83,986 | 45,388 |
Total Expenses | 21,781 | 17,579 | 12,697 | 10,419 | 9,681 | 19,355 | 5,932 | 83,986 | 45,388 |
Interest Income on Borrower Loans | 42,087 | 34,995 | |||||||
Interest Expense on Notes | -38,734 | -33,321 | |||||||
Net Interest Income | 3,353 | 1,674 | |||||||
Net Income (Loss) | 3,344 | 714 | -2,718 | -2,329 | -4,912 | -15,596 | -4,170 | -2,669 | -27,007 |
Prosper Funding LLC [Member] | |||||||||
Operating Revenues | |||||||||
Servicing Fees, Net | 4,168 | 372 | |||||||
Other Revenues | 3,733 | 233 | |||||||
Total Operating Revenues | 11,067 | 8,280 | 4,775 | 3,809 | 2,288 | 1,532 | 607 | 36,420 | 8,237 |
Administration Fee Revenue – Related Party | 28,519 | 7,632 | |||||||
Interest Income on Borrower Loans | 42,370 | 32,605 | |||||||
Interest Expense on Notes | -38,734 | -30,756 | |||||||
Net Interest Income | 3,636 | 1,849 | |||||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 209 | 849 | |||||||
Total Net Revenues | 12,062 | 9,288 | 5,644 | 4,783 | 2,776 | 2,273 | 1,103 | 40,265 | 10,935 |
Interest Income on Borrower Loans | 42,370 | 32,605 | |||||||
Interest Expense on Notes | -38,734 | -30,756 | |||||||
Net Interest Income | 3,636 | 1,849 | |||||||
Total Net Revenues | 12,062 | 9,288 | 5,644 | 4,783 | 2,776 | 2,273 | 1,103 | 40,265 | 10,935 |
Cost of Revenues | |||||||||
Servicing | 4,615 | 2,022 | |||||||
Expenses | |||||||||
Depreciation and Amortization | 1,331 | 671 | |||||||
Origination and Servicing | 2,022 | ||||||||
General and Administrative | 506 | 267 | |||||||
Administration Fee – Related Party | 21,860 | 5,053 | |||||||
Total Expenses | 7,808 | 5,976 | 3,996 | 3,142 | 2,109 | 1,227 | 864 | 26,981 | 7,342 |
Total Expenses | 7,808 | 5,976 | 3,996 | 3,142 | 2,109 | 1,227 | 864 | 26,981 | 7,342 |
Interest Income on Borrower Loans | 42,370 | 32,605 | |||||||
Interest Expense on Notes | -38,734 | -30,756 | |||||||
Net Interest Income | 3,636 | 1,849 | |||||||
Net Income (Loss) | 4,254 | 3,312 | 1,648 | 1,641 | 667 | 1,046 | 239 | 13,284 | 3,593 |
Previously Stated [Member] | |||||||||
Operating Revenues | |||||||||
Transaction Fees, Net | 16,471 | ||||||||
Rebates and promotions | -1,534 | ||||||||
Total Operating Revenues | 25,129 | 14,937 | |||||||
Interest Income | 3 | ||||||||
Interest Income on Borrower Loans | 35,526 | ||||||||
Interest Expense on Notes | -33,072 | ||||||||
Net Interest Income | 2,454 | ||||||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 877 | ||||||||
Total Net Revenues | 26,043 | 16,464 | 9,289 | 4,092 | 2,855 | 1,094 | 18,268 | ||
Interest Income on Borrower Loans | 35,526 | ||||||||
Interest Expense on Notes | -33,072 | ||||||||
Net Interest Income | 2,454 | ||||||||
Total Net Revenues | 26,043 | 16,464 | 9,289 | 4,092 | 2,855 | 1,094 | 18,268 | ||
Cost of Revenues | |||||||||
Servicing | -2,056 | ||||||||
Provision for repurchase and indemnification obligation | -118 | ||||||||
Net revenues | -2,174 | ||||||||
Expenses | |||||||||
Compensation and benefits | 13,079 | ||||||||
Marketing and advertising | 14,851 | ||||||||
Depreciation and Amortization | 961 | ||||||||
Professional services | 1,979 | ||||||||
Facilities and maintenance | 1,764 | ||||||||
Class action settlement | 10,000 | ||||||||
Loss on impairment | 62 | ||||||||
Other | 1,733 | ||||||||
Total Expenses | 23,319 | 16,559 | 11,754 | 9,467 | 19,030 | 5,610 | 44,429 | ||
Total Expenses | 23,319 | 16,559 | 11,754 | 9,467 | 19,030 | 5,610 | 44,429 | ||
Interest Income | 3 | ||||||||
Interest Income on Borrower Loans | 35,526 | ||||||||
Interest Expense on Notes | -33,072 | ||||||||
Net Interest Income | 2,454 | ||||||||
Other income | 1,151 | ||||||||
Net Income (Loss) | 2,724 | -3 | -2,166 | -4,963 | -15,653 | -4,199 | -27,181 | ||
Previously Stated [Member] | Prosper Funding LLC [Member] | |||||||||
Operating Revenues | |||||||||
Total Operating Revenues | 7,632 | ||||||||
Administration Fee Revenue – Related Party | 7,632 | ||||||||
Interest Income on Borrower Loans | 32,862 | ||||||||
Interest Expense on Notes | -30,564 | ||||||||
Net Interest Income | 2,298 | ||||||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 877 | ||||||||
Total Net Revenues | 7,056 | 4,738 | 2,355 | 1,590 | 537 | 10,807 | |||
Interest Income on Borrower Loans | 32,862 | ||||||||
Interest Expense on Notes | -30,564 | ||||||||
Net Interest Income | 2,298 | ||||||||
Total Net Revenues | 7,056 | 4,738 | 2,355 | 1,590 | 537 | 10,807 | |||
Cost of Revenues | |||||||||
Servicing | -1,270 | ||||||||
Provision for repurchase and indemnification obligation | -83 | ||||||||
Net revenues | -1,353 | ||||||||
Expenses | |||||||||
Depreciation and Amortization | 538 | ||||||||
Professional services | 26 | ||||||||
Administration Fee – Related Party | 5,053 | ||||||||
Other Operating Expenses | 242 | ||||||||
Total Expenses | 4,564 | 2,941 | 1,738 | 810 | 525 | 5,859 | |||
Total Expenses | 4,564 | 2,941 | 1,738 | 810 | 525 | 5,859 | |||
Interest Income on Borrower Loans | 32,862 | ||||||||
Interest Expense on Notes | -30,564 | ||||||||
Net Interest Income | 2,298 | ||||||||
Other income | 92 | 291 | 33 | 298 | 175 | 28 | |||
Net Income (Loss) | 2,584 | 2,088 | 650 | 1,078 | 187 | 3,623 | |||
Reclassification | |||||||||
Operating Revenues | |||||||||
Transaction Fees, Net | -1,094 | ||||||||
Rebates and promotions | 1,534 | ||||||||
Servicing Fees, Net | -69 | ||||||||
Other Revenues | 1,274 | ||||||||
Total Operating Revenues | 1,645 | ||||||||
Interest Income | -3 | ||||||||
Interest Income on Borrower Loans | -609 | ||||||||
Interest Expense on Notes | 118 | ||||||||
Net Interest Income | -491 | ||||||||
Total Net Revenues | 1,154 | ||||||||
Interest Income on Borrower Loans | -609 | ||||||||
Interest Expense on Notes | 118 | ||||||||
Net Interest Income | -491 | ||||||||
Total Net Revenues | 1,154 | ||||||||
Cost of Revenues | |||||||||
Servicing | 2,056 | ||||||||
Provision for repurchase and indemnification obligation | 118 | ||||||||
Net revenues | 2,174 | ||||||||
Expenses | |||||||||
Compensation and benefits | -13,079 | ||||||||
Marketing and advertising | -14,851 | ||||||||
Depreciation and Amortization | -961 | ||||||||
Professional services | -1,979 | ||||||||
Facilities and maintenance | -1,764 | ||||||||
Class action settlement | -10,000 | ||||||||
Loss on impairment | -62 | ||||||||
Other | -1,733 | ||||||||
Origination and Servicing | 7,465 | ||||||||
Sales and Marketing | 16,740 | ||||||||
General and Administrative | 22,398 | ||||||||
Total Expenses | 2,174 | ||||||||
Total Expenses | 2,174 | ||||||||
Interest Income | -3 | ||||||||
Interest Income on Borrower Loans | -609 | ||||||||
Interest Expense on Notes | 118 | ||||||||
Net Interest Income | -491 | ||||||||
Other income | -1,151 | ||||||||
Reclassification | Prosper Funding LLC [Member] | |||||||||
Operating Revenues | |||||||||
Servicing Fees, Net | 397 | ||||||||
Other Revenues | 28 | ||||||||
Total Operating Revenues | 425 | ||||||||
Interest Income on Borrower Loans | -397 | ||||||||
Net Interest Income | -397 | ||||||||
Total Net Revenues | -397 | ||||||||
Interest Income on Borrower Loans | -397 | ||||||||
Net Interest Income | -397 | ||||||||
Total Net Revenues | -397 | ||||||||
Cost of Revenues | |||||||||
Servicing | 1,270 | ||||||||
Provision for repurchase and indemnification obligation | 83 | ||||||||
Net revenues | 1,353 | ||||||||
Expenses | |||||||||
Depreciation and Amortization | -538 | ||||||||
Professional services | -26 | ||||||||
Origination and Servicing | 1,891 | ||||||||
General and Administrative | 268 | ||||||||
Other Operating Expenses | -242 | ||||||||
Total Expenses | 1,353 | ||||||||
Total Expenses | 1,353 | ||||||||
Interest Income on Borrower Loans | -397 | ||||||||
Net Interest Income | -397 | ||||||||
Other income | -28 | ||||||||
As Reclassified | |||||||||
Operating Revenues | |||||||||
Transaction Fees, Net | 15,377 | ||||||||
Servicing Fees, Net | -69 | ||||||||
Other Revenues | 1,274 | ||||||||
Total Operating Revenues | 25,129 | 16,371 | 9,265 | 7,476 | 4,405 | 3,257 | 1,443 | 16,582 | |
Interest Income on Borrower Loans | 34,917 | ||||||||
Interest Expense on Notes | -32,954 | ||||||||
Net Interest Income | 1,963 | ||||||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 877 | ||||||||
Total Net Revenues | 26,043 | 17,377 | 10,175 | 8,460 | 4,954 | 3,988 | 2,021 | 19,422 | |
Interest Income on Borrower Loans | 34,917 | ||||||||
Interest Expense on Notes | -32,954 | ||||||||
Net Interest Income | 1,963 | ||||||||
Total Net Revenues | 26,043 | 17,377 | 10,175 | 8,460 | 4,954 | 3,988 | 2,021 | 19,422 | |
Expenses | |||||||||
Origination and Servicing | 7,465 | ||||||||
Sales and Marketing | 16,740 | ||||||||
General and Administrative | 22,398 | ||||||||
Total Expenses | 23,319 | 17,382 | 12,341 | 10,824 | 9,917 | 19,641 | 6,220 | 46,603 | |
Total Expenses | 23,319 | 17,382 | 12,341 | 10,824 | 9,917 | 19,641 | 6,220 | 46,603 | |
Interest Income on Borrower Loans | 34,917 | ||||||||
Interest Expense on Notes | -32,954 | ||||||||
Net Interest Income | 1,963 | ||||||||
Net Income (Loss) | 2,724 | -5 | -2,166 | -2,364 | -4,963 | -15,653 | -4,199 | -27,181 | |
As Reclassified | Prosper Funding LLC [Member] | |||||||||
Operating Revenues | |||||||||
Servicing Fees, Net | 397 | ||||||||
Other Revenues | 28 | ||||||||
Total Operating Revenues | 10,783 | 6,852 | 4,579 | 3,859 | 2,131 | 1,546 | 607 | 8,057 | |
Administration Fee Revenue – Related Party | 7,632 | ||||||||
Interest Income on Borrower Loans | 32,465 | ||||||||
Interest Expense on Notes | -30,564 | ||||||||
Net Interest Income | 1,901 | ||||||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 877 | ||||||||
Total Net Revenues | 11,716 | 7,858 | 5,488 | 4,797 | 2,679 | 2,276 | 1,036 | 10,835 | |
Interest Income on Borrower Loans | 32,465 | ||||||||
Interest Expense on Notes | -30,564 | ||||||||
Net Interest Income | 1,901 | ||||||||
Total Net Revenues | 11,716 | 7,858 | 5,488 | 4,797 | 2,679 | 2,276 | 1,036 | 10,835 | |
Expenses | |||||||||
Origination and Servicing | 1,891 | ||||||||
General and Administrative | 268 | ||||||||
Administration Fee – Related Party | 5,053 | ||||||||
Total Expenses | 8,196 | 5,274 | 3,400 | 3,118 | 2,029 | 1,198 | 849 | 7,212 | |
Total Expenses | 8,196 | 5,274 | 3,400 | 3,118 | 2,029 | 1,198 | 849 | 7,212 | |
Interest Income on Borrower Loans | 32,465 | ||||||||
Interest Expense on Notes | -30,564 | ||||||||
Net Interest Income | 1,901 | ||||||||
Net Income (Loss) | 3,520 | 2,584 | 2,088 | 1,679 | 650 | 1,078 | 187 | 3,623 | |
Adjustment [Member] | |||||||||
Operating Revenues | |||||||||
Transaction Fees, Net | -47 | ||||||||
Servicing Fees, Net | 328 | ||||||||
Other Revenues | -337 | ||||||||
Total Operating Revenues | -920 | 1,016 | -36 | -199 | 111 | 81 | -48 | -56 | |
Interest Income on Borrower Loans | 78 | ||||||||
Interest Expense on Notes | -367 | ||||||||
Net Interest Income | -289 | ||||||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | -696 | ||||||||
Total Net Revenues | -918 | 916 | -196 | -370 | -185 | -228 | -259 | -1,041 | |
Interest Income on Borrower Loans | 78 | ||||||||
Interest Expense on Notes | -367 | ||||||||
Net Interest Income | -289 | ||||||||
Total Net Revenues | -918 | 916 | -196 | -370 | -185 | -228 | -259 | -1,041 | |
Expenses | |||||||||
Depreciation and Amortization | 133 | ||||||||
Origination and Servicing | -1,081 | ||||||||
Sales and Marketing | -9 | ||||||||
General and Administrative | -125 | ||||||||
Total Expenses | -1,538 | 197 | 356 | -405 | -236 | -286 | -288 | -1,215 | |
Total Expenses | -1,538 | 197 | 356 | -405 | -236 | -286 | -288 | -1,215 | |
Interest Income on Borrower Loans | 78 | ||||||||
Interest Expense on Notes | -367 | ||||||||
Net Interest Income | -289 | ||||||||
Net Income (Loss) | 620 | 719 | -552 | 35 | 51 | 57 | 29 | 174 | |
Adjustment [Member] | Prosper Funding LLC [Member] | |||||||||
Operating Revenues | |||||||||
Servicing Fees, Net | -25 | ||||||||
Other Revenues | 205 | ||||||||
Total Operating Revenues | 284 | 1,428 | 196 | -50 | 157 | -14 | 180 | ||
Interest Income on Borrower Loans | 140 | ||||||||
Interest Expense on Notes | -192 | ||||||||
Net Interest Income | -52 | ||||||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | -28 | ||||||||
Total Net Revenues | 346 | 1,430 | 156 | -14 | 97 | -3 | 67 | 100 | |
Interest Income on Borrower Loans | 140 | ||||||||
Interest Expense on Notes | -192 | ||||||||
Net Interest Income | -52 | ||||||||
Total Net Revenues | 346 | 1,430 | 156 | -14 | 97 | -3 | 67 | 100 | |
Expenses | |||||||||
Depreciation and Amortization | 133 | ||||||||
Origination and Servicing | 131 | ||||||||
General and Administrative | -1 | ||||||||
Total Expenses | -388 | 702 | 596 | 24 | 80 | 29 | 15 | 130 | |
Total Expenses | -388 | 702 | 596 | 24 | 80 | 29 | 15 | 130 | |
Interest Income on Borrower Loans | 140 | ||||||||
Interest Expense on Notes | -192 | ||||||||
Net Interest Income | -52 | ||||||||
Net Income (Loss) | $734 | $728 | ($440) | ($38) | $17 | ($32) | $52 | ($30) |
Prior_Period_Adjustments_Conso2
Prior Period Adjustments - Consolidated Statements of Cash Flows (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | ($2,669) | ($27,007) |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Borrower Loans | 15,868 | 10,561 |
Change in Fair Value of Loans Held For Sale | -73 | -55 |
Change in Fair Value of Notes | -16,391 | -11,527 |
Depreciation and Amortization | 2,097 | 1,094 |
Change in Servicing Rights | -3,256 | -329 |
Stock-Based Compensation Expense | 2,042 | 246 |
Loss on Impairment of Property and Equipment | 322 | 299 |
Class Action Settlement Liability | -2,000 | 9,739 |
Purchase of Loans Held for Sale at Fair Value | -1,416,809 | -184,807 |
Proceeds From Sales of Loans Held for Sale at Fair Value | 1,411,625 | 181,656 |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -26,145 | -21,205 |
Accounts Receivable | -2,856 | -256 |
Prepaid and Other Assets | -2,840 | -320 |
Accounts Payable and Accrued Liabilities | 11,844 | -769 |
Payable to Investors | 26,219 | 21,028 |
Net cash used in Operating Activities | -21,652 | |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -177,088 | -169,859 |
Principal Payments of Borrower Loans Held at Fair Value | 121,082 | 90,054 |
Purchases of Property and Equipment | -2,714 | |
Maturities of Short Term Investments | 1,271 | 2,619 |
Purchases of Short Term Investments | -1,274 | -1,271 |
Changes in Restricted Cash Related to Investing Activities | -5,081 | -7,685 |
Net Cash Used in Investing Activities | -88,856 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 176,865 | 170,586 |
Payment of Notes Held at Fair Value | -120,909 | -89,681 |
Proceeds from Issuance of Convertible Preferred Stock, Net | 69,958 | 44,822 |
Proceeds from Early Exercise of Stock Options | 814 | 694 |
Repurchase of Restricted Stock | -30 | -86 |
Proceeds from Exercise of Vested Stock Options | 77 | 212 |
Net Cash Provided by Financing Activities | 126,547 | |
Net Increase (Decrease) in Cash and Cash Equivalents | 32,218 | 16,039 |
Cash and Cash Equivalents at Beginning of the Year | 18,339 | 2,300 |
Cash and Cash Equivalents at End of the Year | 50,557 | 18,339 |
Cash Paid for Interest | 41,053 | 35,027 |
Non-Cash Investing Activity- Accrual for Property and Equipment, Net | 1,550 | 175 |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | -2,669 | -27,007 |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Borrower Loans | 15,868 | 10,561 |
Change in Fair Value of Loans Held For Sale | -73 | -55 |
Change in Fair Value of Notes | -16,391 | -11,527 |
Depreciation and Amortization | 2,097 | 1,094 |
Change in Servicing Rights | -3,256 | -329 |
Stock-Based Compensation Expense | 2,042 | 246 |
Loss on Impairment of Property and Equipment | 322 | 299 |
Class Action Settlement Liability | -2,000 | 9,739 |
Purchase of Loans Held for Sale at Fair Value | -1,416,809 | -184,807 |
Proceeds From Sales of Loans Held for Sale at Fair Value | 1,411,625 | 181,656 |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -26,145 | -21,205 |
Accounts Receivable | -2,856 | -256 |
Prepaid and Other Assets | -2,840 | -320 |
Accounts Payable and Accrued Liabilities | 11,844 | -769 |
Payable to Investors | 26,219 | 21,028 |
Net cash provided by (used in) Operating Activities | -2,900 | -21,652 |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -177,088 | -169,859 |
Principal Payments of Borrower Loans Held at Fair Value | 121,082 | 90,054 |
Purchases of Property and Equipment | -12,267 | -2,714 |
Changes in Restricted Cash Related to Investing Activities | -5,081 | -7,685 |
Net Cash Used in Investing Activities | -73,357 | -88,856 |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 176,865 | 170,586 |
Payment of Notes Held at Fair Value | -120,909 | -89,681 |
Net Cash Provided by Financing Activities | 108,475 | 126,547 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Interest | 41,053 | 35,027 |
Prosper Funding LLC [Member] | ||
Cash Flows from Operating Activities: | ||
Net Income (Loss) | 13,284 | 3,593 |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Borrower Loans | 15,868 | 10,632 |
Change in Fair Value of Loans Held For Sale | -73 | -44 |
Change in Fair Value of Notes | -16,391 | -11,380 |
Depreciation and Amortization | 1,331 | 671 |
Change in Servicing Rights | -3,440 | -292 |
Purchase of Loans Held for Sale at Fair Value | -1,416,809 | -184,807 |
Proceeds From Sales of Loans Held for Sale at Fair Value | 1,411,625 | 181,645 |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -26,145 | -17,446 |
Accounts Payable and Accrued Liabilities | 495 | 107 |
Payable to Investors | 25,538 | 19,925 |
Other Assets | 3 | -8 |
Net Related Party Payable | -1,340 | 205 |
Change in Fair Value of Borrower Loans Receivable | 10,632 | |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -177,088 | -160,037 |
Principal Payments of Borrower Loans Held at Fair Value | 121,081 | 83,677 |
Maturities of Short Term Investments | -1,274 | |
Purchases of Short Term Investments | 1,271 | |
Changes in Restricted Cash Related to Investing Activities | -58 | -8,576 |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 176,865 | 160,764 |
Payment of Notes Held at Fair Value | -120,909 | -82,924 |
Net Increase (Decrease) in Cash and Cash Equivalents | 17,988 | 5,784 |
Cash and Cash Equivalents at Beginning of the Year | 5,789 | 5 |
Cash and Cash Equivalents at End of the Year | 23,777 | 5,789 |
Cash Paid for Interest | 41,053 | 32,154 |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | 13,284 | 3,593 |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Borrower Loans | 15,868 | 10,632 |
Change in Fair Value of Loans Held For Sale | -73 | -44 |
Change in Fair Value of Notes | -16,391 | -11,380 |
Depreciation and Amortization | 1,331 | 671 |
Change in Servicing Rights | -3,440 | -292 |
Purchase of Loans Held for Sale at Fair Value | -1,416,809 | -184,807 |
Proceeds From Sales of Loans Held for Sale at Fair Value | 1,411,625 | 181,645 |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -26,145 | -17,446 |
Accounts Payable and Accrued Liabilities | 495 | 107 |
Payable to Investors | 25,538 | 19,925 |
Other Assets | 3 | -8 |
Net Related Party Payable | -1,340 | 205 |
Change in Fair Value of Borrower Loans Receivable | 10,632 | |
Net cash provided by (used in) Operating Activities | 3,946 | 2,801 |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -177,088 | -160,037 |
Principal Payments of Borrower Loans Held at Fair Value | 121,081 | 83,677 |
Purchases of Property and Equipment | -846 | -1,797 |
Changes in Restricted Cash Related to Investing Activities | -58 | -8,576 |
Net Cash Used in Investing Activities | -56,914 | -86,733 |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 176,865 | 160,764 |
Payment of Notes Held at Fair Value | -120,909 | -82,924 |
Member’s Equity Capital Infusion from Parent | 15,000 | 10,001 |
Net Cash Included in Transfer of Assets from Parent | 1,875 | |
Net Cash Provided by Financing Activities | 70,956 | 89,716 |
Supplemental Disclosure of Cash Flow Information: | ||
Restricted Cash | 20,628 | |
Short Term Investments | 1,271 | |
Borrower Loans at Fair Value | 167,376 | |
Property and Equipment, net | 484 | |
Accrued Liabilities | -131 | |
Payable to Investors | -18,096 | |
Notes at Fair Value | -167,758 | |
Non-Cash Transfer | 3,774 | |
Cash Transferred | 1,875 | |
Total Transfer of Net Non-Cash Assets from PMI | 5,649 | |
Cash Paid for Interest | 41,053 | 32,154 |
Non-Cash Financing Activity, Distribution to Parent | 1,228 | 24 |
Previously Stated [Member] | ||
Cash Flows from Operating Activities: | ||
Net Income (Loss) | -27,181 | |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Borrower Loans | 4,856 | |
Change in Fair Value of Loans Held For Sale | 1 | |
Change in Fair Value of Notes | -5,734 | |
Depreciation and Amortization | 961 | |
Stock-Based Compensation Expense | 229 | |
Loss on Impairment of Property and Equipment | 62 | |
Class Action Settlement Liability | 10,000 | |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -9,524 | |
Accounts Receivable | -126 | |
Prepaid and Other Assets | -332 | |
Accounts Payable and Accrued Liabilities | 1,962 | |
Net cash used in Operating Activities | -24,826 | |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -341,176 | |
Principal Payments of Borrower Loans Held at Fair Value | 105,692 | |
Proceeds from Sale of Borrower Loans Held at Fair Value | 171,290 | |
Purchases of Property and Equipment | -2,889 | |
Maturities of Short Term Investments | 1,000 | |
Repayment of Loans Held for Investment at Fair Value | 143 | |
Origination of Loans Held for Investment at Fair Value | -14,296 | |
Proceeds from sale of Borrower Loans at Fair Value | 10,410 | |
Net Cash Used in Investing Activities | -69,826 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 169,742 | |
Payment of Notes Held at Fair Value | -104,692 | |
Proceeds from Issuance of Convertible Preferred Stock, Net | 44,822 | |
Proceeds from Early Exercise of Stock Options | 650 | |
Repurchase of Restricted Stock | -41 | |
Proceeds from Exercise of Vested Stock Options | 210 | |
Net Cash Provided by Financing Activities | 110,691 | |
Net Increase (Decrease) in Cash and Cash Equivalents | 16,039 | |
Cash and Cash Equivalents at Beginning of the Year | 18,339 | 2,300 |
Cash and Cash Equivalents at End of the Year | 18,339 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | -27,181 | |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Borrower Loans | 4,856 | |
Change in Fair Value of Loans Held For Sale | 1 | |
Change in Fair Value of Notes | -5,734 | |
Depreciation and Amortization | 961 | |
Stock-Based Compensation Expense | 229 | |
Loss on Impairment of Property and Equipment | 62 | |
Class Action Settlement Liability | 10,000 | |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -9,524 | |
Accounts Receivable | -126 | |
Prepaid and Other Assets | -332 | |
Accounts Payable and Accrued Liabilities | 1,962 | |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -341,176 | |
Principal Payments of Borrower Loans Held at Fair Value | 105,692 | |
Repayment of Loans Held for Investment at Fair Value | 143 | |
Origination of Loans Held for Investment at Fair Value | -14,296 | |
Proceeds from sale of Borrower Loans at Fair Value | 10,410 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 169,742 | |
Payment of Notes Held at Fair Value | -104,692 | |
Previously Stated [Member] | Prosper Funding LLC [Member] | ||
Cash Flows from Operating Activities: | ||
Net Income (Loss) | 3,623 | |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Loans Held For Sale | 1 | |
Change in Fair Value of Notes | -5,734 | |
Depreciation and Amortization | 538 | |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -8,155 | |
Accounts Payable and Accrued Liabilities | 2,924 | |
Other Assets | -13 | |
Net Related Party Payable | 205 | |
Change in Fair Value of Borrower Loans Receivable | 4,856 | |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -331,353 | |
Principal Payments of Borrower Loans Held at Fair Value | 171,290 | |
Repayment of Loans Held for Investment at Fair Value | 143 | |
Origination of Loans Held for Investment at Fair Value | -14,296 | |
Proceeds from sale of Borrower Loans at Fair Value | 10,410 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 159,921 | |
Payment of Notes Held at Fair Value | -97,967 | |
Net Increase (Decrease) in Cash and Cash Equivalents | 5,784 | |
Cash and Cash Equivalents at Beginning of the Year | 5,789 | 5 |
Cash and Cash Equivalents at End of the Year | 5,789 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | 3,623 | |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Loans Held For Sale | 1 | |
Change in Fair Value of Notes | -5,734 | |
Depreciation and Amortization | 538 | |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -8,155 | |
Accounts Payable and Accrued Liabilities | 2,924 | |
Other Assets | -13 | |
Net Related Party Payable | 205 | |
Change in Fair Value of Borrower Loans Receivable | 4,856 | |
Net cash provided by (used in) Operating Activities | -1,755 | |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -331,353 | |
Principle Payment of Borrower Loans Receivable Held at Fair Value | 99,313 | |
Principal Payments of Borrower Loans Held at Fair Value | 171,290 | |
Repayment of Loans Held for Investment at Fair Value | 143 | |
Origination of Loans Held for Investment at Fair Value | -14,296 | |
Proceeds from sale of Borrower Loans at Fair Value | 10,410 | |
Purchases of Property and Equipment | -1,798 | |
Net Cash Used in Investing Activities | -66,291 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 159,921 | |
Payment of Notes Held at Fair Value | -97,967 | |
Member’s Equity Capital Infusion from Parent | 10,001 | |
Net Cash Included in Transfer of Assets from Parent | 1,875 | |
Net Cash Provided by Financing Activities | 73,830 | |
Supplemental Disclosure of Cash Flow Information: | ||
Restricted Cash | 4,144 | |
Borrower Loans at Fair Value | 170,518 | |
Property and Equipment, net | 721 | |
Accrued Liabilities | -820 | |
Notes at Fair Value | -170,573 | |
Non-Cash Transfer | 3,990 | |
Cash Transferred | 1,875 | |
Total Transfer of Net Non-Cash Assets from PMI | 5,865 | |
Adjustment [Member] | ||
Cash Flows from Operating Activities: | ||
Net Income (Loss) | 174 | |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Borrower Loans | 5,705 | |
Change in Fair Value of Loans Held For Sale | -56 | |
Change in Fair Value of Notes | -5,793 | |
Depreciation and Amortization | 133 | |
Change in Servicing Rights | -329 | |
Stock-Based Compensation Expense | 17 | |
Loss on Impairment of Property and Equipment | 237 | |
Class Action Settlement Liability | -261 | |
Purchase of Loans Held for Sale at Fair Value | -184,807 | |
Proceeds From Sales of Loans Held for Sale at Fair Value | 181,656 | |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -11,681 | |
Accounts Receivable | -130 | |
Prepaid and Other Assets | 12 | |
Accounts Payable and Accrued Liabilities | -2,731 | |
Payable to Investors | 21,028 | |
Net cash used in Operating Activities | 3,174 | |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | 171,317 | |
Principal Payments of Borrower Loans Held at Fair Value | -15,638 | |
Proceeds from Sale of Borrower Loans Held at Fair Value | -171,290 | |
Purchases of Property and Equipment | 175 | |
Maturities of Short Term Investments | 1,619 | |
Purchases of Short Term Investments | -1,271 | |
Repayment of Loans Held for Investment at Fair Value | -143 | |
Origination of Loans Held for Investment at Fair Value | 14,296 | |
Proceeds from sale of Borrower Loans at Fair Value | -10,410 | |
Changes in Restricted Cash Related to Investing Activities | -7,685 | |
Net Cash Used in Investing Activities | -19,030 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 844 | |
Payment of Notes Held at Fair Value | 15,011 | |
Proceeds from Early Exercise of Stock Options | 44 | |
Repurchase of Restricted Stock | -45 | |
Proceeds from Exercise of Vested Stock Options | 2 | |
Net Cash Provided by Financing Activities | 15,856 | |
Cash Paid for Interest | 35,027 | |
Non-Cash Investing Activity- Accrual for Property and Equipment, Net | 175 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | 174 | |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Borrower Loans | 5,705 | |
Change in Fair Value of Loans Held For Sale | -56 | |
Change in Fair Value of Notes | -5,793 | |
Depreciation and Amortization | 133 | |
Change in Servicing Rights | -329 | |
Stock-Based Compensation Expense | 17 | |
Loss on Impairment of Property and Equipment | 237 | |
Class Action Settlement Liability | -261 | |
Purchase of Loans Held for Sale at Fair Value | -184,807 | |
Proceeds From Sales of Loans Held for Sale at Fair Value | 181,656 | |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -11,681 | |
Accounts Receivable | -130 | |
Prepaid and Other Assets | 12 | |
Accounts Payable and Accrued Liabilities | -2,731 | |
Payable to Investors | 21,028 | |
Net cash provided by (used in) Operating Activities | -3,100 | |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | 171,317 | |
Principal Payments of Borrower Loans Held at Fair Value | -15,638 | |
Repayment of Loans Held for Investment at Fair Value | -143 | |
Origination of Loans Held for Investment at Fair Value | 14,296 | |
Proceeds from sale of Borrower Loans at Fair Value | -10,410 | |
Changes in Restricted Cash Related to Investing Activities | -7,685 | |
Net Cash Used in Investing Activities | 19,000 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 844 | |
Payment of Notes Held at Fair Value | 15,011 | |
Net Cash Provided by Financing Activities | -15,900 | |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Interest | 35,027 | |
Adjustment [Member] | Prosper Funding LLC [Member] | ||
Cash Flows from Operating Activities: | ||
Net Income (Loss) | -30 | |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Loans Held For Sale | -45 | |
Change in Fair Value of Notes | -5,646 | |
Depreciation and Amortization | 133 | |
Change in Servicing Rights | -292 | |
Purchase of Loans Held for Sale at Fair Value | -184,807 | |
Proceeds From Sales of Loans Held for Sale at Fair Value | 181,645 | |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -9,291 | |
Accounts Payable and Accrued Liabilities | -2,817 | |
Payable to Investors | 19,925 | |
Other Assets | 5 | |
Change in Fair Value of Borrower Loans Receivable | 5,776 | |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | 171,316 | |
Principal Payments of Borrower Loans Held at Fair Value | -87,613 | |
Repayment of Loans Held for Investment at Fair Value | -143 | |
Origination of Loans Held for Investment at Fair Value | 14,296 | |
Proceeds from sale of Borrower Loans at Fair Value | -10,410 | |
Changes in Restricted Cash Related to Investing Activities | -8,576 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 843 | |
Payment of Notes Held at Fair Value | 15,043 | |
Cash Paid for Interest | 32,154 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | -30 | |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Loans Held For Sale | -45 | |
Change in Fair Value of Notes | -5,646 | |
Depreciation and Amortization | 133 | |
Change in Servicing Rights | -292 | |
Purchase of Loans Held for Sale at Fair Value | -184,807 | |
Proceeds From Sales of Loans Held for Sale at Fair Value | 181,645 | |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -9,291 | |
Accounts Payable and Accrued Liabilities | -2,817 | |
Payable to Investors | 19,925 | |
Other Assets | 5 | |
Change in Fair Value of Borrower Loans Receivable | 5,776 | |
Net cash provided by (used in) Operating Activities | 4,556 | |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | 171,316 | |
Principle Payment of Borrower Loans Receivable Held at Fair Value | -99,313 | |
Principal Payments of Borrower Loans Held at Fair Value | -87,613 | |
Repayment of Loans Held for Investment at Fair Value | -143 | |
Origination of Loans Held for Investment at Fair Value | 14,296 | |
Proceeds from sale of Borrower Loans at Fair Value | -10,410 | |
Purchases of Property and Equipment | 1 | |
Changes in Restricted Cash Related to Investing Activities | -8,576 | |
Net Cash Used in Investing Activities | -20,442 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 843 | |
Payment of Notes Held at Fair Value | 15,043 | |
Net Cash Provided by Financing Activities | 15,886 | |
Supplemental Disclosure of Cash Flow Information: | ||
Restricted Cash | 16,484 | |
Short Term Investments | 1,271 | |
Borrower Loans at Fair Value | -3,142 | |
Property and Equipment, net | -237 | |
Accrued Liabilities | 689 | |
Payable to Investors | -18,096 | |
Notes at Fair Value | 2,815 | |
Non-Cash Transfer | -216 | |
Total Transfer of Net Non-Cash Assets from PMI | -213 | |
Cash Paid for Interest | 32,154 | |
Non-Cash Financing Activity, Distribution to Parent | $24 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||
Reclassification, Convertible Preferred Stock to Temporary Equity | $0 | $114,800,000 | $44,900,000 | $44,900,000 | $44,900,000 | $19,900,000 | $19,900,000 | $44,800,000 |
Quarterly_Financial_Informatio3
Quarterly Financial Information (Unaudited) - Schedule of Quarterly Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Quarterly Financial Information [Line Items] | |||||||||
Operating Revenues | $24,209 | $17,387 | $9,229 | $7,277 | $4,516 | $3,338 | $1,395 | $77,836 | $16,526 |
Net Revenues | 25,125 | 18,293 | 9,979 | 8,090 | 4,769 | 3,760 | 1,762 | 81,317 | 18,381 |
Total Expenses | 21,781 | 17,579 | 12,697 | 10,419 | 9,681 | 19,355 | 5,932 | 83,986 | 45,388 |
Net Income (Loss) | 3,344 | 714 | -2,718 | -2,329 | -4,912 | -15,596 | -4,170 | -2,669 | -27,007 |
Basic and diluted net loss per share (in dollars per share) | ($1.24) | $0.08 | ($0.40) | ($0.72) | ($2.38) | ($0.76) | ($1.97) | ($4.09) | |
Weighted-Average Shares - Basic and Diluted Net Loss Per Share | 9,280,334 | 9,155,199 | 6,868,153 | 6,868,153 | 6,553,785 | 5,480,850 | 8,896,801 | 6,596,827 | |
Prosper Funding LLC [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Operating Revenues | 11,067 | 8,280 | 4,775 | 3,809 | 2,288 | 1,532 | 607 | 36,420 | 8,237 |
Net Revenues | 12,062 | 9,288 | 5,644 | 4,783 | 2,776 | 2,273 | 1,103 | 40,265 | 10,935 |
Total Expenses | 7,808 | 5,976 | 3,996 | 3,142 | 2,109 | 1,227 | 864 | 26,981 | 7,342 |
Net Income (Loss) | 4,254 | 3,312 | 1,648 | 1,641 | 667 | 1,046 | 239 | 13,284 | 3,593 |
As previously reported [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Total Revenues | 17,285 | 9,876 | 4,542 | 3,405 | 1,703 | ||||
Operating Revenues | 25,129 | 14,937 | |||||||
Cost of Revenues | 821 | 587 | 450 | 550 | 609 | ||||
Net Revenues | 26,043 | 16,464 | 9,289 | 4,092 | 2,855 | 1,094 | 18,268 | ||
Total Expenses | 23,319 | 16,559 | 11,754 | 9,467 | 19,030 | 5,610 | 44,429 | ||
Other Income (Expenses), Net | 92 | 299 | 412 | 522 | 317 | ||||
Other income | 1,151 | ||||||||
Net Income (Loss) | 2,724 | -3 | -2,166 | -4,963 | -15,653 | -4,199 | -27,181 | ||
Basic and diluted net loss per share (in dollars per share) | ($1.31) | ($0.32) | ($0.72) | ($2.39) | ($0.77) | ||||
Weighted-Average Shares - Basic and Diluted Net Loss Per Share | 9,280,334 | 9,155,199 | 6,868,153 | 6,927,648 | 6,553,785 | 5,480,850 | |||
As previously reported [Member] | Prosper Funding LLC [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Total Revenues | 7,766 | 5,197 | 2,646 | 1,978 | 861 | ||||
Operating Revenues | 7,632 | ||||||||
Cost of Revenues | 710 | 459 | 291 | 388 | 324 | ||||
Net Revenues | 7,056 | 4,738 | 2,355 | 1,590 | 537 | 10,807 | |||
Total Expenses | 4,564 | 2,941 | 1,738 | 810 | 525 | 5,859 | |||
Other income | 92 | 291 | 33 | 298 | 175 | 28 | |||
Net Income (Loss) | 2,584 | 2,088 | 650 | 1,078 | 187 | 3,623 | |||
Reclassifications [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Total Revenues | -17,285 | -9,876 | -4,542 | -3,405 | -1,703 | ||||
Operating Revenues | 16,371 | 9,265 | 4,405 | 3,257 | 1,443 | ||||
Cost of Revenues | -821 | -587 | -450 | -550 | -609 | ||||
Net Revenues | 913 | 886 | 862 | 1,133 | 927 | ||||
Total Expenses | 823 | 587 | 450 | 611 | 610 | ||||
Other Income (Expenses), Net | -92 | -299 | -412 | -522 | -317 | ||||
Net Income (Loss) | -2 | ||||||||
Basic and diluted net loss per share (in dollars per share) | $0 | ||||||||
Reclassifications [Member] | Prosper Funding LLC [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Total Revenues | -7,766 | -5,197 | -2,646 | -1,978 | -861 | ||||
Operating Revenues | 6,852 | 4,579 | 2,131 | 1,546 | 607 | ||||
Cost of Revenues | -710 | -459 | -291 | -388 | -324 | ||||
Net Revenues | 802 | 750 | 324 | 686 | 499 | ||||
Total Expenses | 710 | 459 | 291 | 388 | 324 | ||||
Other income | -92 | -291 | -33 | -298 | -175 | ||||
As Reclassified | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Operating Revenues | 25,129 | 16,371 | 9,265 | 7,476 | 4,405 | 3,257 | 1,443 | 16,582 | |
Net Revenues | 26,043 | 17,377 | 10,175 | 8,460 | 4,954 | 3,988 | 2,021 | 19,422 | |
Total Expenses | 23,319 | 17,382 | 12,341 | 10,824 | 9,917 | 19,641 | 6,220 | 46,603 | |
Net Income (Loss) | 2,724 | -5 | -2,166 | -2,364 | -4,963 | -15,653 | -4,199 | -27,181 | |
Basic and diluted net loss per share (in dollars per share) | ($1.31) | ($0.32) | ($0.72) | ($2.39) | ($0.77) | ||||
Weighted-Average Shares - Basic and Diluted Net Loss Per Share | 9,280,334 | 9,155,199 | 6,868,153 | 6,868,153 | 6,553,785 | 5,480,850 | |||
As Reclassified | Prosper Funding LLC [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Operating Revenues | 10,783 | 6,852 | 4,579 | 3,859 | 2,131 | 1,546 | 607 | 8,057 | |
Net Revenues | 11,716 | 7,858 | 5,488 | 4,797 | 2,679 | 2,276 | 1,036 | 10,835 | |
Total Expenses | 8,196 | 5,274 | 3,400 | 3,118 | 2,029 | 1,198 | 849 | 7,212 | |
Net Income (Loss) | 3,520 | 2,584 | 2,088 | 1,679 | 650 | 1,078 | 187 | 3,623 | |
Adjustment [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Operating Revenues | -920 | 1,016 | -36 | -199 | 111 | 81 | -48 | -56 | |
Net Revenues | -918 | 916 | -196 | -370 | -185 | -228 | -259 | -1,041 | |
Total Expenses | -1,538 | 197 | 356 | -405 | -236 | -286 | -288 | -1,215 | |
Net Income (Loss) | 620 | 719 | -552 | 35 | 51 | 57 | 29 | 174 | |
Basic and diluted net loss per share (in dollars per share) | $0.07 | $0.08 | ($0.08) | $0 | $0.01 | $0.01 | |||
Adjustment [Member] | Prosper Funding LLC [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Operating Revenues | 284 | 1,428 | 196 | -50 | 157 | -14 | 180 | ||
Net Revenues | 346 | 1,430 | 156 | -14 | 97 | -3 | 67 | 100 | |
Total Expenses | -388 | 702 | 596 | 24 | 80 | 29 | 15 | 130 | |
Net Income (Loss) | $734 | $728 | ($440) | ($38) | $17 | ($32) | $52 | ($30) |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jan. 23, 2015 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Payments to Acquire Businesses, Gross | $21 |
Business Acquisition, Effective Date of Acquisition | 23-Jan-15 |
Business Acquisition, Name of Acquired Entity | American HealthCare Lending LLC |
Related_Parties_Aggregate_Amou1
Related Parties - Aggregate Amount of Loans Purchased and the Income Earned (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Aggregate amount of notes and borrower loans purchased | $1,169 | $1,823 |
Interest earned on Notes | 173 | 64 |
Executive Officers & Management [Member] | ||
Related Party Transaction [Line Items] | ||
Aggregate amount of notes and borrower loans purchased | 1,127 | 1,096 |
Interest earned on Notes | 163 | 12 |
Directors [Member] | ||
Related Party Transaction [Line Items] | ||
Aggregate amount of notes and borrower loans purchased | 42 | 727 |
Interest earned on Notes | 10 | 52 |
Prosper Funding LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Aggregate amount of notes and borrower loans purchased | 1,127 | 1,170 |
Interest earned on Notes | 159 | 1 |
Prosper Funding LLC [Member] | Executive Officers & Management [Member] | ||
Related Party Transaction [Line Items] | ||
Aggregate amount of notes and borrower loans purchased | 1,127 | 1,170 |
Interest earned on Notes | $159 | $1 |
Related_Parties_Aggregate_Amou2
Related Parties - Aggregate Amount of Notes and Borrowed Loans Purchased and the Income Earned (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Notes balance | $1,690 | $1,389 |
Executive Officers & Management [Member] | ||
Related Party Transaction [Line Items] | ||
Notes balance | 1,614 | 1,067 |
Directors [Member] | ||
Related Party Transaction [Line Items] | ||
Notes balance | 76 | 322 |
Prosper Funding LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Notes balance | 1,614 | 1,065 |
Prosper Funding LLC [Member] | Executive Officers & Management [Member] | ||
Related Party Transaction [Line Items] | ||
Notes balance | $1,614 | $1,065 |