Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 07, 2015 | |
Document And Entity Information [Line Items] | ||
Entity Registrant Name | PROSPER MARKETPLACE, INC | |
Entity Central Index Key | 1,416,265 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 14,191,968 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Prosper Funding LLC [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Registrant Name | Prosper Funding LLC | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and Cash Equivalents | $ 173,303 | $ 50,557 |
Restricted Cash | 147,283 | 81,300 |
Short Term Investments | 1,275 | 1,274 |
Accounts Receivable | 1,343 | 3,152 |
Loans Held for Sale, at Fair Value | 1,431 | 8,463 |
Borrower Loans, at Fair Value | 284,200 | 273,243 |
Property and Equipment, Net | 18,048 | 14,424 |
Prepaid and Other Assets | 14,560 | 7,745 |
Goodwill | 16,825 | |
Intangibles Assets, Net | 3,182 | |
Total Assets | 661,450 | 440,158 |
Liabilities, Convertible Preferred Stock and Stockholders' Deficit | ||
Accounts Payable and Accrued Liabilities | 21,561 | 17,239 |
Payable to Investors | 135,045 | 64,494 |
Class Action Settlement Liability | 5,903 | 7,861 |
Notes at Fair Value | 284,628 | 273,783 |
Repurchase Liability for Unvested Restricted Stock Awards | 808 | 1,010 |
Total Liabilities | 447,945 | 364,387 |
Notes at Fair Value | $ 284,628 | $ 273,783 |
Commitments and Contingencies (see Note 11) | ||
Convertible Preferred Stock – $0.01 par value; 35,477,685 shares authorized; 35,477,685 issued and outstanding as of June 30, 2015; 32,155,022 shares authorized; 30,699,957 issued and outstanding as of December 31, 2014. Aggregate liquidation preference of $325,952 as of June 30, 2015 and $160,952 as of December 31, 2014. | $ 275,938 | $ 111,145 |
Stockholders' Deficit | ||
Common Stock ($0.01 par value; 54,065,215 shares authorized; 14,975,613 issued and 14,008,239 outstanding as of June 30, 2015; and 47,928,883 shares authorized; 14,448,700 issued and 14,261,513 outstanding as of December 31, 2014) | 117 | 102 |
Additional Paid-In Capital | 93,415 | 86,340 |
Less: Treasury Stock | (21,549) | (303) |
Accumulated Deficit | (134,416) | (121,513) |
Total Stockholders' Deficit | (62,433) | (35,374) |
Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit | 661,450 | 440,158 |
Prosper Funding LLC [Member] | ||
Assets | ||
Cash and Cash Equivalents | 11,568 | 23,777 |
Restricted Cash | 138,218 | 73,103 |
Short Term Investments | 1,275 | 1,274 |
Loans Held for Sale, at Fair Value | 1,431 | 8,463 |
Borrower Loans, at Fair Value | 284,200 | 273,243 |
Property and Equipment, Net | 5,796 | 1,125 |
Related party receivable | 1,135 | |
Other assets | 7,652 | 3,120 |
Total Assets | 450,140 | 385,240 |
Liabilities, Convertible Preferred Stock and Stockholders' Deficit | ||
Accounts Payable and Accrued Liabilities | 1,741 | 1,357 |
Payable to Related Party | 252 | |
Payable to Investors | 133,495 | 63,809 |
Notes at Fair Value | 284,628 | 273,783 |
Total Liabilities | 420,116 | 338,949 |
Notes at Fair Value | 284,628 | 273,783 |
Stockholders' Deficit | ||
Member's Equity | 2,370 | 29,619 |
Accumulated Deficit | 27,654 | 16,672 |
Total Stockholders' Deficit | 30,024 | 46,291 |
Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit | $ 450,140 | $ 385,240 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Apr. 30, 2015 | Dec. 31, 2014 |
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) | 35,477,685 | 35,477,685 | 32,155,022 |
Convertible preferred stock, shares issued (in shares) | 35,477,685 | 30,699,957 | |
Convertible preferred stock, shares outstanding (in shares) | 35,477,685 | 30,699,957 | |
Convertible preferred stock, aggregate liquidation preference | $ 325,952 | $ 160,952 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 54,065,215 | 54,065,215 | 47,928,883 |
Common stock, shares issued (in shares) | 14,975,613 | 14,448,700 | |
Common stock, shares outstanding (in shares) | 14,008,239 | 14,261,513 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Revenue | ||||
Transaction Fees, Net | $ 39,800,000 | $ 15,980,000 | $ 65,142,000 | $ 24,344,000 |
Servicing Fees, Net | 3,575,000 | 697,000 | 6,144,000 | 1,112,000 |
Other Revenue | 5,326,000 | 717,000 | 8,303,000 | 1,161,000 |
Total Operating Revenue | 48,701,000 | 17,394,000 | 79,589,000 | 26,617,000 |
Interest Income | ||||
Interest Income on Borrower Loans | 10,165,000 | 10,436,000 | 20,634,000 | 20,371,000 |
Interest Expense on Notes | (9,448,000) | (9,564,000) | (19,011,000) | (18,987,000) |
Net Interest Income | 717,000 | 872,000 | 1,623,000 | 1,384,000 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 95,000 | 27,000 | 21,000 | 271,000 |
Total Net Revenue | 49,513,000 | 18,293,000 | 81,233,000 | 28,272,000 |
Expenses | ||||
Origination and Servicing | 7,126,000 | 2,814,000 | 13,982,000 | 5,105,000 |
Sales and Marketing | 26,580,000 | 9,392,000 | 45,150,000 | 15,826,000 |
General and Administrative | 21,832,000 | 5,373,000 | 35,329,000 | 9,345,000 |
Total Expenses | 55,538,000 | 17,579,000 | 94,461,000 | 30,276,000 |
Net Income (Loss) Before Taxes | (6,025,000) | 714,000 | (13,228,000) | (2,004,000) |
Income Tax Expense | 176,000 | 249,000 | ||
Net Income (Loss) | (6,201,000) | 714,000 | (13,477,000) | (2,004,000) |
Less: Net Income Allocated to Participating Securities | (533,000) | |||
Net Income (Loss) Attributable to Common Stockholders | $ (6,201,000) | $ 181,000 | $ (13,477,000) | $ (2,004,000) |
Net Income (Loss) Per Share – Basic | $ (0.56) | $ 0.02 | $ (1.24) | $ (0.24) |
Net Income (Loss) Per Share –Diluted | $ (0.56) | $ 0.01 | $ (1.24) | $ (0.24) |
Weighted-Average Shares - Basic | 11,122,497 | 8,617,887 | 10,833,635 | 8,337,853 |
Weighted-Average Shares - Diluted | 11,122,497 | 16,437,323 | 10,833,635 | 8,337,853 |
Prosper Funding LLC [Member] | ||||
Operating Revenue | ||||
Administration Fee Revenue - Related Party | $ 14,213,000 | $ 6,898,000 | $ 23,886,000 | $ 10,951,000 |
Servicing Fees, Net | 3,272,000 | 703,000 | 5,536,000 | 1,126,000 |
Other Revenue | 3,696,000 | 679,000 | 5,596,000 | 977,000 |
Total Operating Revenue | 21,181,000 | 8,280,000 | 35,018,000 | 13,054,000 |
Interest Income | ||||
Interest Income on Borrower Loans | 10,209,000 | 10,544,000 | 20,723,000 | 20,512,000 |
Interest Expense on Notes | (9,448,000) | (9,564,000) | (19,011,000) | (18,986,000) |
Net Interest Income | 761,000 | 980,000 | 1,712,000 | 1,526,000 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 94,000 | 27,000 | 21,000 | 352,000 |
Total Net Revenue | 22,036,000 | 9,287,000 | 36,751,000 | 14,932,000 |
Expenses | ||||
Origination and Servicing | 358,000 | 755,000 | ||
Administration Fee – Related Party | 14,085,000 | 5,536,000 | 23,380,000 | 9,031,000 |
Servicing | 899,000 | 358,000 | 2,271,000 | 755,000 |
General and Administrative | 282,000 | 81,000 | 546,000 | 186,000 |
Total Expenses | 15,266,000 | 5,975,000 | 26,197,000 | 9,972,000 |
Income Tax Expense | 0 | 0 | 0 | 0 |
Net Income (Loss) | $ 6,770,000 | $ 3,312,000 | $ 10,554,000 | $ 4,960,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from Operating Activities: | ||
Net Income (Loss) | $ (13,477) | $ (2,004) |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | (21) | (271) |
Depreciation and Amortization | 3,455 | 791 |
Change in Servicing Rights | (3,962) | (974) |
Stock-Based Compensation Expense | 4,192 | 490 |
Loss on Impairment of Property and Equipment | 215 | |
Other, Net | 45 | 63 |
Purchase of Loans Held for Sale at Fair Value | (1,402,499) | (475,934) |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 1,409,426 | 471,151 |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | (63,254) | (20,347) |
Accounts Receivable | 1,956 | (164) |
Prepaid and Other Assets | (2,235) | (2,134) |
Accounts Payable and Accrued Liabilities | 2,754 | 3,469 |
Class Action Settlement Liability | (2,000) | (2,000) |
Payable to Investors | 70,551 | 17,550 |
Net Cash Provided by (Used in) Operating Activities | 4,931 | (10,099) |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | (94,512) | (86,796) |
Principal Payments of Borrower Loans Held at Fair Value | 73,457 | 57,811 |
Purchases of Property and Equipment | (6,412) | (1,672) |
Maturities of Short Term Investments | 1,274 | 1,271 |
Purchases of Short Term Investments | (1,275) | (1,274) |
Acquisition of Business, Net of Cash Acquired | (19,000) | |
Changes in Restricted Cash Related to Investing Activities | (2,729) | (218) |
Net Cash Used in Investing Activities | (49,197) | (30,878) |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 94,575 | 86,678 |
Payment of Notes Held at Fair Value | (73,509) | (57,575) |
Proceeds from Issuance of Convertible Preferred Stock, Net | 164,793 | 69,958 |
Proceeds from Early Exercise of Stock Options and Issuance of Restricted Stock | 1,669 | 277 |
Proceeds from Exercise of Vested Stock Options and Common Stock Warrants | 734 | 114 |
Repurchase of Common Stock and Restricted Stock | (21,250) | (12) |
Net Cash Provided by Financing Activities | 167,012 | 99,440 |
Net (Decrease) Increase in Cash and Cash Equivalents | 122,746 | 58,463 |
Cash and Cash Equivalents at Beginning of the Period | 50,557 | 18,339 |
Cash and Cash Equivalents at End of the Period | 173,303 | 76,802 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Interest | 19,147 | 19,075 |
Non-Cash Investing Activity-Accrual for Property and Equipment, Net | 26 | 80 |
Non-Cash Investing Activity-Amount Payable for the Acquisition of Business | 840 | |
Prosper Funding LLC [Member] | ||
Cash flows from Operating Activities: | ||
Net Income (Loss) | 10,554 | 4,960 |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | (21) | (352) |
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | 2 | 2 |
Depreciation and Amortization | 1,896 | 539 |
Change in Servicing Rights | (4,357) | (998) |
Purchase of Loans Held for Sale at Fair Value | (1,402,499) | (475,934) |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 1,409,426 | 471,151 |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | (62,390) | (19,943) |
Other Assets | (14) | 4 |
Accounts Payable and Accrued Liabilities | 402 | 527 |
Payable to Investors | 69,686 | 16,995 |
Net Related Party Receivable/Payable | 1,387 | (249) |
Net Cash Provided by (Used in) Operating Activities | 24,072 | (3,298) |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | (94,512) | (86,715) |
Principal Payments of Borrower Loans Held at Fair Value | 73,457 | 57,811 |
Purchases of Property and Equipment | (6,567) | (553) |
Maturities of Short Term Investments | 1,274 | 1,271 |
Purchases of Short Term Investments | (1,275) | (1,274) |
Changes in Restricted Cash Related to Investing Activities | (2,725) | (121) |
Net Cash Used in Investing Activities | (30,348) | (29,581) |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 94,576 | 86,679 |
Payment of Notes Held at Fair Value | (73,509) | (57,575) |
Net Cash Included in Transfer of Assets from Parent | (27,000) | |
Net Cash Provided by Financing Activities | (5,933) | 29,104 |
Net (Decrease) Increase in Cash and Cash Equivalents | (12,209) | (3,775) |
Cash and Cash Equivalents at Beginning of the Period | 23,777 | 5,789 |
Cash and Cash Equivalents at End of the Period | 11,568 | 2,014 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Interest | 19,147 | 19,075 |
Non-Cash Financing Activity - Distribution to Parent | $ 249 | $ 342 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation | 1. Basis of Presentation The unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and disclosure requirements for interim financial information and the requirements of Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2014. The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date. Management believes these unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. Prosper did not have any items of other comprehensive income (loss) during any of the periods presented in the condensed consolidated financial statements as of and for the three and six months ended June 30, 2015 and 2014. The preparation of Prosper’s condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in Prosper’s financial statements and accompanying notes. Prosper bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material. The accompanying interim condensed consolidated financial statements include the accounts of PMI and its wholly-owned subsidiaries, PFL and PHL. All intercompany balances have been eliminated in consolidation. On January 23, 2015, Prosper acquired all of the outstanding limited liability company units of American HealthCare Lending, LLC (“AHL”), a company that operated a cloud-based patient financing platform, and merged AHL with and into PHL, with PHL surviving the merger. Prosper’s condensed consolidated financial statements include PHL's results of operations and financial position from this date forward (see Note 6 – American HealthCare Lending Acquisition Reclassifications During the year ended December 31, 2014, Prosper changed the presentation of its revenue in the consolidated statements of operations. A new line called “Servicing fees” was created and the servicing fees related to Borrower Loans sold through Prosper’s Whole Loan Channel 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” or “Origination fees” 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 revenue” subtotal. Lastly, the subtotals were realigned to reflect the new presentation. Prosper 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 Prosper’s competitors. |
Prosper Funding LLC [Member] | |
Basis of Presentation | 1. Basis of Presentation The unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and disclosure requirements for interim financial information and the requirements of Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2014. The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date. Management believes these unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. Prosper Funding did not have any items of other comprehensive income (loss) during any of the periods presented in the condensed consolidated financial statements as of and for the three and six months ended June 30, 2015 and 2014. The preparation of Prosper Funding's condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in its condensed consolidated financial statements and accompanying notes. Prosper Funding based its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material. Reclassifications During the year ended December 31, 2014, Prosper Funding changed the presentation of its revenue in the statement of operations. A new line called “Servicing Fees, Net” was created and the servicing fees related to Borrower Loans sold through its Whole Loan Channel 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 revenue subtotal. Prosper Funding 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. Prosper Funding believes these changes make the income statement more useful for the readers of the financial statements and comparable with Prosper Funding’s competitors. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Significant Accounting Policies [Line Items] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Prosper’s significant accounting policies are included in Note 2 – Summary of Significant Accounting Policies Fair Value Measurements Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Short Term Investments, 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. Borrower Loans, Loans Held for Sale and Notes Borrower Loans, loans held for sale and Notes are recorded at fair value. Prosper has adopted the provisions of ASC Topic 825, Financial Instruments (“ASC Topic 825”). Loan Servicing Assets and Liabilities On January 1, 2015, Prosper elected to adopt the fair value method to measure the servicing assets and liabilities for all classes of servicing assets and liabilities subsequent to initial recognition. ASC 860-50, Servicing Assets and Liabilities, 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 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 In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity to eliminate the use of different methods in practice and thereby reduce existing diversity in the accounting for hybrid financial instruments issued in the form of a share. For hybrid financial instruments issued in the form of a share, an entity should determine the nature of the contract by considering the economic characteristics and risks of the entire hybrid financial instrument. The existence or omission of any single term or feature does not necessarily determine the economic characteristics and risks of the host contract. This standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. Prosper 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. In April 2015, the FASB issued ASU 2015-05 “ Customers’ Accounting for Cloud Computing Costs ”, which will be effective for the annual reporting period ending after December 15, 2015 . The guidance changes what a customer must consider in determining whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in accordance with guidance related to internal use software; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. Prosper is currently assessing the potential impact on its financial statements from adopting this new guidance. |
Prosper Funding LLC [Member] | |
Significant Accounting Policies [Line Items] | |
Summary of Significant Accounting Policies | 2. Significant Accounting Policies Prosper Funding's significant accounting policies are included in Note 2 – Summary of Significant Accounting Policies Fair Value Measurements Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Short Term Investments, 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. Borrower Loans, Loans Held for Sale and Notes Borrower Loans, loans held for sale and Notes are recorded at fair value. Prosper Funding has adopted the provisions of ASC Topic 825, Financial Instruments (“ASC Topic 825”). Loan Servicing Assets and Liabilities On January 1, 2015, Prosper Funding elected to adopt the fair value method to measure the servicing assets and liabilities for all classes of servicing assets and liabilities, subsequent to initial recognition. ASC 860, Servicing Assets and Liabilities 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 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 In February 2015, the FASB issued ASU 2015-02, " Consolidation (Topic 810): Amendments to the Consolidation Analysis. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2015 | |
Property and Equipment, Net | 3. Property and Equipment, Net Property and equipment consist of the following (in thousands): June 30, December 31, 2015 2014 Property and equipment: Computer equipment $ 6,585 $ 3,824 Internal-use software and website development costs 11,047 4,486 Office equipment and furniture 2,062 1,904 Leasehold improvements 5,570 5,274 Assets not yet placed in service 1,247 4,361 Property and equipment 26,511 19,849 Less accumulated depreciation and amortization (8,463 ) (5,425 ) Total property and equipment, net $ 18,048 $ 14,424 Depreciation expense for the three months ended June 30, 2015 and 2014 was $1,363 thousand and $390 thousand respectively. Prosper capitalized internal-use software and website development costs in the amount of $2,079 thousand and $440 thousand for the three months ended June 30, 2015 and 2014, respectively. Depreciation expense for the six months ended June 30, 2015 and 2014 was $3,117 thousand and $791 thousand respectively. Prosper capitalized internal-use software and website development costs in the amount of $3,935 thousand and $808 thousand for the six months ended June 30, 2015 and 2014, respectively. Prosper recorded internal-use software and website development impairment charges of $0 and $215 thousand for the six months ended June 30, 2015 and 2014 respectively, as a result of its decision to discontinue several software and website development projects. These charges are included in general and administration expenses on the condensed consolidated statement of operations. |
Prosper Funding LLC [Member] | |
Property and Equipment, Net | 3. Property and Equipment Property and equipment consist of the following (in thousands): June 30, December 31, 2015 2014 Property and equipment: Internal-use software and web site development costs $ 10,530 $ 4,042 Less accumulated depreciation and amortization (4,734 ) (2,917 ) Total property and equipment, net $ 5,796 $ 1,125 Depreciation expense for the three months ended June 30, 2015 and 2014 was $676 thousand and $262 thousand, respectively. Depreciation expense for the six months ended June 30, 2015 and 2014 was $1,896 thousand and $539 thousand, respectively |
Borrower Loans, Loans Held for
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | 6 Months Ended |
Jun. 30, 2015 | |
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, Loans Held for Sale and Notes are estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The primary cash flow assumptions used to value such Borrower Loans, Loans Held for Sale 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. The aggregate principal balances outstanding and fair values of Borrower Loans, loans held for sale and Notes as of June 30, 2015 and December 31, 2014, are presented in the following table (in thousands): Borrower Loans Notes Loans Held for Sale June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Aggregate principal balance outstanding $ 280,862 $ 268,598 $ (284,628 ) $ (272,267 ) $ 1,416 $ 8,295 Fair value adjustments 3,338 4,645 - (1,516 ) 15 168 Fair value $ 284,200 $ 273,243 $ (284,628 ) $ (273,783 ) $ 1,431 $ 8,463 At June 30, 2015, Borrower Loans, loans held for sale and Notes had original terms to maturity of either 36 or 60 months; had monthly payments with fixed interest rates ranging from 5.32% to 33.04% and had various maturity dates through June 2020. At December 31, 2014, Borrower Loans, loans held for sale, and Notes had original maturities either 36 or 60 months; had monthly payments with fixed interest rates ranging from 5.77% to 33.04% and had various maturity dates through December 2019. Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for Prosper’s Borrower Loans, loans held for sale and Notes fair value measurements at June 30, 2015 and December 31, 2014: Range Unobservable Input June 30, 2015 December 31, 2014 Discount rate 2.7%-11.0% 3.3%-10.6% Default rate 2.8%-19.8% 2.6%-19.7% Key economic assumptions and the sensitivity of the current fair value to immediate changes in those assumptions at June 30, 2015 Borrower Loans, loans held for sale and Notes funded through the Note Channel are presented in the following table (in thousands): Borrower Loans and Loans Held for Sale Notes Discount rate assumption: 4.65 %* 4.65 %* Resulting fair value from: 100 basis point increase $ 282,480 $ 281,481 200 basis point increase 279,414 278,420 Resulting fair value from: 100 basis point decrease $ 288,870 $ 287,861 200 basis point decrease 292,199 291,185 Default rate assumption: 12.23 %* 12.23 %* Resulting fair value from: 200 basis point decrease $ 292,609 $ 291,611 100 basis point decrease 289,117 288,116 Resulting fair value from: 100 basis point increase $ 282,159 $ 281,152 200 basis point increase 278,769 277,760 * These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a fixed basis points variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. The changes in the Borrower Loans, loans held for sale and Notes, which are Level 3 assets and liabilities measured at fair value on a recurring basis are as follows (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at January 1, 2014 $ 233,105 $ (234,218 ) $ 3,206 $ 2,093 Purchase of Borrower Loans/Issuance of Notes 86,796 (86,679 ) 475,934 476,051 Principal repayments (57,811 ) 57,575 (130 ) (366 ) Borrower Loans sold to third parties - - (471,022 ) (471,022 ) Other changes (100 ) 89 9 (2 ) Change in fair value (9,019 ) 9,290 - 271 Balance at June 30, 2014 $ 252,971 $ (253,943 ) $ 7,997 $ 7,025 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at January 1, 2015 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 Purchase of Borrower Loans/Issuance of Notes 94,512 (94,575 ) 1,402,499 1,402,436 Principal repayments (73,457 ) 73,509 (543 ) (491 ) Borrower Loans sold to third parties - - (1,408,883 ) (1,408,883 ) Other changes (130 ) 136 (9 ) (3 ) Change in fair value (9,968 ) 10,085 (96 ) 21 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at April 1, 2014 $ 244,927 $ (245,335 ) $ 3,482 $ 3,074 Purchase of Borrower Loans/Issuance of Notes 42,529 (42,769 ) 325,250 325,010 Principal repayments (29,479 ) 29,273 (112 ) (318 ) Borrower Loans sold to third parties - - (320,633 ) (320,633 ) Other changes (61 ) (84 ) 10 (135 ) Change in fair value (4,945 ) 4,972 - 27 Balance at June 30, 2014 $ 252,971 $ (253,943 ) $ 7,997 $ 7,025 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at April 1, 2015 $ 280,404 $ (280,801 ) $ 1,599 $ 1,202 Purchase of Borrower Loans/Issuance of Notes 46,805 (46,779 ) 861,574 861,600 Principal repayments (37,395 ) 37,440 (157 ) (112 ) Borrower Loans sold to third parties - - (861,574 ) (861,574 ) Other changes (136 ) (71 ) (1 ) (208 ) Change in fair value (5,478 ) 5,583 (10 ) 95 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Approximately $0.9 million and $2.1 million represents the loss that is attributable to changes in the instrument specific credit risks related to Borrower Loans that were recorded in the change in fair value during the three and six months ending June 30, 2015, respectively. As of June 30, 2015, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $1.5 million and a fair value of $0.6 million. As of December 31, 2014, 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. Prosper places loans on non-accrual status when they are over 120 days past due. As of June 30, 2015 and December 31, 2014, Borrower Loans in non-accrual status had a fair value of $0.3 million and $0, respectively. |
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, loans held for sale and Notes are estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The primary cash flow assumptions used to value such Borrower Loans, loans held for sale 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. The aggregate principal balances outstanding and fair values of Borrower Loans, loans held for sale and Notes as of June 30, 2015 and December 31, 2014, are presented in the following table (in thousands): Borrower Loans Notes Loans Held for Sale June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Aggregate principal balance outstanding $ 280,862 $ 268,593 $ (284,628 ) $ (272,270 ) $ 1,416 $ 8,295 Fair value adjustments 3,338 4,650 - (1,513 ) 15 168 Fair value $ 284,200 $ 273,243 $ (284,628 ) $ (273,783 ) $ 1,431 $ 8,463 At June 30, 2015, Borrower Loans, loans held for sale and Notes had original terms to maturity of either 36 or 60 months; had monthly payments with fixed interest rates ranging from 5.32% to 33.04% and had various maturity dates through June 2020. At December 31, 2014, Borrower Loans, Notes and loans held for sale had original maturities of either 36 or 60 months; had monthly payments with fixed interest rates ranging from 5.77% to 33.04% and had various maturity dates through December 2019. Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for Prosper Funding’s Borrower Loans, loans held for sale and Notes fair value measurements at June 30, 2015 and December 31, 2014: Range Unobservable Input June 30, 2015 December 31, 2014 Discount rate 2.7%-11.0% 3.2%-10.6% Default rate 2.8%-19.8% 2.6%-19.7% Key economic assumptions and the sensitivity of the current fair value to immediate changes in those assumptions at June 30, 2015 for Borrower Loans, loans held for sale and Notes funded are presented in the following table (in thousands): Borrower Loans and Loans Held for Sale Notes Discount rate assumption: 4.65 %* 4.65 %* Resulting fair value from: 100 basis point increase $ 282,480 $ 281,481 200 basis point increase 279,414 278,420 Resulting fair value from: 100 basis point decrease $ 288,870 $ 287,861 200 basis point decrease 292,199 291,185 Default rate assumption: 12.23 %* 12.23 %* Resulting fair value from: 200 basis point decrease $ 292,609 $ 291,611 100 basis point decrease 289,117 288,116 Resulting fair value from: 100 basis point increase $ 282,159 $ 281,152 200 basis point increase 278,769 277,760 * Represents weighted average assumptions considering all credit grades. These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a fixed basis points variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. The changes in the Borrower Loans, loans held for sale and Notes, which are Level 3 assets and liabilities 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 Notes Sale Total Balance at January 1, 2014 $ 233,105 $ (234,218 ) $ 3,206 $ 2,093 Originations 86,715 (86,679 ) 475,934 475,970 Principal repayments (57,811 ) 57,575 (130 ) (366 ) Borrower Loans sold to third parties - - (471,022 ) (471,022 ) Other changes (100 ) 89 9 (2 ) Change in fair value (8,938 ) 9,290 - 352 Balance at June 30, 2014 $ 252,971 $ (253,943 ) ) $ 7,997 $ 7,025 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Notes Sale Total Balance at January 1, 2015 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 Originations 94,512 (94,575 ) 1,402,499 1,402,436 Principal repayments (73,457 ) 73,509 (543 ) (491 ) Borrower Loans sold to third parties - - (1,408,883 ) (1,408,883 ) Other changes (130 ) 136 (9 ) (3 ) Change in fair value (9,968 ) 10,085 (96 ) 21 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Notes Sale Total Balance at April 1, 2014 $ 244,927 $ (245,335 ) $ 3,482 $ 3,074 Originations 42,529 (42,769 ) 325,250 325,010 Principal repayments (29,479 ) 29,273 (112 ) (318 ) Borrower Loans sold to third parties - - (320,633 ) (320,633 ) Other changes (61 ) (84 ) 10 (135 ) Change in fair value (4,945 ) 4,972 - 27 Balance at June 30, 2014 $ 252,971 $ (253,943 ) ) $ 7,997 $ 7,025 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Notes Sale Total Balance at April 1, 2015 $ 280,404 $ (280,801 ) $ 1,599 $ 1,202 Originations 46,805 (46,779 ) 861,574 861,600 Principal repayments (37,395 ) 37,441 (157 ) (111 ) Borrower Loans sold to third parties - - (861,574 ) (861,574 ) Other changes (136 ) (71 ) (1 ) (208 ) Change in fair value (5,478 ) 5,582 (10 ) 94 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Approximately $0.9 million and $2.1 million represents the loss that is attributable to changes in the instrument specific credit risks related to Borrower Loans that were recorded in the change in fair value during the three and six months ending June 30, 2015 and June 30, 2014 respectively. As June 30, 2015, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $1.5 million and a fair value of $0.6 million. As December 31, 2014, 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. Prosper Funding places Borrower Loans on non-accrual status when they are over 120 days past due. As of June 30, 2015 and December 31, 2014, Borrower Loans in non-accrual status had a fair value of $0.3 million and $0, respectively. |
Loan Servicing Assets and Liabi
Loan Servicing Assets and Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Loan Servicing Assets and Liabilities | 5. Loan Servicing Assets and Liabilities Prosper accounts for servicing assets and liabilities at their estimated fair values with changes in fair values recorded in servicing fees. The initial asset or liability is recognized when Prosper sells Borrower Loans to unrelated third-party buyers and the servicing rights are retained. Prior to January 1, 2015, the initial fair value of such servicing assets or liabilities was amortized in proportion to and over the servicing period. Subsequent to January 1, 2015, the servicing assets and liabilities are measured at fair value throughout the servicing period. The total gain recognized on the sale of such Borrower Loans was $3.7 million and $0.8 million for the three months ended June 30, 2015 and 2014, respectively. The total gain recognized on the sale of such Borrower Loans was $5.6 million and $1.1 million and for the six months ended June 30, 2015 and 2014, respectively. As of June 30, 2015, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $2,393 million, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 31.90% and various maturity dates through June 2020. At December 31, 2014, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $1,306 million, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and various maturity dates through December 2019. The fair value of the loan servicing assets and liabilities is determined using a discounted cash flow model that includes assumptions of the market servicing rate, the default rate and discount rate as important inputs. Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for Prosper’s servicing asset/liability fair value measurements at June 30, 2015 and December 31, 2014: Range Unobservable Input June 30, 2015 December 31, 2014 Discount rate 15% - 25% 15% - 25% Default rate 2.0% - 20.9% 2.6% - 26.3% Market servicing rate 0.625% 0.625% - 0.70% Loan Servicing Asset and Liabilities Activity: The following table presents additional information about Level 3 servicing assets and liabilities measured at fair value for the six months ended June 30, 2015 (in thousands). Servicing Assets Servicing Liabilities Amortized cost at January 1, 2015 $ 4,163 $ 624 Adjustment to adopt fair value measurement 546 (29 ) Fair value at January 1, 2015 4,709 595 Additions 5,837 193 Less: Changes in fair value (1,864 ) (182 ) Fair value at June 30, 2015 $ 8,682 $ 606 The following table presents additional information about Level 3 servicing assets and liabilities measured at fair value for the three months ended June 30, 2015 (in thousands). Servicing Assets Servicing Liabilities Fair Value at April 1, 2015 $ 6,034 $ 668 Additions 3,759 39 Less: Changes in fair value (1,111 ) (101 ) Fair value at June 30, 2015 $ 8,682 $ 606 Servicing Asset and Liability Fair Value Input Sensitivity: The following table presents the estimated impact on Prosper’s estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of June 30, 2015 (in thousands, except percentages). Servicing Assets Servicing Liabilities Weighted average market servicing rate assumptions 0.625 % 0.625 % Resulting fair value from: Market servicing rate increase to 0.65% $ 8,041 $ (667 ) Market servicing rate decrease to 0.60% $ 9,324 $ (546 ) Weighted average default assumptions 13 % 13 % Resulting fair value from: 100 basis point increase $ 8,529 $ (606 ) 100 basis point decrease $ 8,837 $ (607 ) These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. |
Prosper Funding LLC [Member] | |
Loan Servicing Assets and Liabilities | 5. Loan Servicing Assets and Liabilities Prosper Funding accounts for servicing assets and liabilities at their estimated fair values with changes in fair values recorded in servicing fees. The initial asset or liability is recognized when Prosper Funding sells Borrower Loans to unrelated third-party buyers and the servicing rights are retained. Prior to January 1, 2015, the initial fair value of such servicing assets or liabilities was amortized in proportion to and over the servicing period. Subsequent to January 1, 2015, the servicing assets and liabilities are measured at fair value throughout the servicing period. The total gain recognized on the sale of such Borrower Loans was $0.8 million and $1.1 million for the three and six months ended June 30, 2014, respectively. Effective January 1, 2015, Prosper Funding elected to adopt the fair value method to measure the servicing assets and liabilities for all classes subsequent to initial recognition. The total gain recognized on the sale of the Borrower Loans sold to unrelated third-party buyers was $3.7 million and $5.6 million for the three and six months ended June 30, 2015, respectively. At June 30, 2015, Borrower Loans that were sold, but for which Prosper Funding retained servicing rights had a total outstanding principal balance of $2,078 million, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 31.90% and various maturity dates through June 2020. At December 31, 2014, Borrower Loans that were sold, but for which Prosper Funding retained servicing rights had a total outstanding principal balance of $1,045 million, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and various maturity dates through December 2019. The fair value of the loan servicing assets and liabilities is determined using a discounted cash flow model that includes assumptions of the market servicing rate, the default rate and discount rate as important inputs. Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for Prosper Funding's servicing asset/liability fair value measurements at June 30, 2015 and December 31, 2014: Range Unobservable Input June 30, 2015 December 31, 2014 Discount rate 15% - 25% 15% - 25% Default rate 2.0% - 20.9% 2.6% - 26.3% Market servicing rate 0.625% 0.625% - 0.70% Loan Servicing Assets and Liabilities Activity: The following table presents additional information about Level 3 servicing assets and liabilities recorded at fair value for the three months ended March 31, 2015 (in thousands). Servicing Servicing Assets Liabilities Amortized cost at January 1, 2015 $ 3,116 $ 624 Adjustment to adopt fair value measurement 399 (29 ) Fair value at January 1, 2015 3,515 595 Additions 5,837 193 Less: Transfers to PMI (249 ) - Less: Changes in fair value (1,469 ) (182 ) Fair value at June 30, 2015 $ 7,634 $ 606 Servicing Servicing Assets Liabilities Fair value at April 1, 2015 $ 4,782 $ 668 Additions 3,759 39 Less: Transfers to PMI - Less: changes in fair value (907 ) (101 ) Fair value at June 30, 2015 $ 7,634 $ 606 Servicing Asset and Liability Fair Value Input Sensitivity: The following table presents the estimated impact on Prosper Funding’s estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of June 30, 2015 (in thousands, except percentages). Servicing Assets Servicing Liabilities Weighted average market servicing rate assumptions 0.625 % 0.625 % Resulting fair value from: Servicing rate increase to 0.65% $ 7,070 $ (667 ) Servicing rate decrease to 0.60% $ 8,199 $ (546 ) Weighted average default assumptions 13 % 13 % Resulting fair value from: 100 basis point increase $ 7,499 $ (606 ) 100 basis point decrease $ 7,770 $ (607 ) These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. |
American HealthCare Lending Acq
American HealthCare Lending Acquisition | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
American HealthCare Lending Acquisition | 6. American HealthCare Lending Acquisition On January 23, 2015, Prosper acquired all of the outstanding limited liability company interests of AHL, and merged AHL with and into PHL, with PHL surviving the merger (the “Merger”). Under the terms of the purchase agreement, the sellers of AHL received an aggregate of $20.2 million in cash on the closing date and will receive $0.8 million in cash one year after the closing date subject to general representations and warranties. PHL operates a cloud-based patient financing company for healthcare providers in the cosmetic, dentistry, bariatric surgery, fertility, plastic surgery and other markets. PHL has relationships with a nationwide network of healthcare providers. These healthcare providers refer individuals who would like to finance medical procedures to the Prosper platform. The preliminary purchase price allocation as of the merger date is as follows (in thousands): Fair Value Assets: Cash $ 1,219 Accounts Receivable 147 Property, equipment and software 6 Other assets 63 Identified intangible assets 3,520 Goodwill 16,825 Liabilities: Accrued expenses and other liabilities 708 Total purchase consideration $ 21,072 The allocation of the purchase price is preliminary and subject to further adjustment as information relative to closing date balances and related tax balances are finalized. The goodwill balance is primarily attributed to expected operational synergies and the combined workforce. Goodwill is expected to be deductible for U.S. income tax purposes. Intangible assets as of June 30, 2015 are as follows (in thousands): June 30, 2015 Gross Carrying Value Accumulated Amortization Net Carrying Value Remaining Useful Life (In Years) Customer relationships $ 2,650 $ (201 ) $ 2,449 10.0 Technology 810 (112 ) 698 3.0 Brand name 60 (25 ) 35 1.0 Total intangible assets subject to amortization $ 3,520 $ (338 ) $ 3,182 The customer relationship intangible assets are being amortized on an accelerated basis over a 10 year period. The technology and brand name intangible assets are being amortized on a straight line basis over three and one years, respectively. Amortization expense associated with intangible assets for the three and six months ended June 30, 2015 was $242 thousand and $338 thousand respectively. Prosper valued the customer relationships, technology and brand name assets using the income approach. Significant assumptions include forecasts of revenues, costs of revenues, operating expenses and customer attrition rates for customers. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 7. Net Income (Loss) Per Share The weighted average shares used in calculating basic and diluted net income (loss) per share excludes certain shares that are disclosed as outstanding shares in the condensed consolidated balance sheets because such shares are restricted as they were associated with options that were early exercised and continue to remain unvested. Basic and diluted net income (loss) per share was calculated as follows: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net Income (loss) (in thousands) $ (6,201 ) $ 714 $ (13,477 ) $ (2,004 ) Less: Net income allocated to participating securities - (533 ) - - Net Income (loss) available to common stockholders for basic and diluted income (loss) per share (in thousands) $ (6,201 ) $ 181 $ (13,477 ) $ (2,004 ) Denominator: Weighted average shares used in computing basic net income (loss) per share 11,122,497 8,617,887 10,833,635 8,337,853 Weighted average shares used in computing diluted net income (loss) per share 11,122,497 16,437,323 10,833,635 8,337,853 Basic net income (loss) per share $ (0.56 ) $ 0.02 $ (1.24 ) $ (0.24 ) Diluted net income (loss) per share $ (0.56 ) $ 0.01 $ (1.24 ) $ (0.24 ) The following common stock equivalents were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (shares) (shares) (shares) (shares) Excluded securities: Convertible preferred stock issued and outstanding 35,477,685 32,155,022 35,477,685 32,155,022 Stock options issued and outstanding 6,982,320 - 6,478,422 3,633,509 Unvested stock options exercised 3,084,604 - 3,084,604 4,959,917 Warrants issued and outstanding 123,467 - 123,467 148,438 Total common stock equivalents excluded from diluted net loss per common share computation 45,668,076 32,155,022 45,164,178 40,896,886 |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Deficit | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders Equity Note [Abstract] | |
Convertible Preferred Stock and Stockholders' Deficit | 8. Convertible Preferred Stock and Stockholders’ 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 April 2015, Prosper issued and sold 4,777,728 shares of new Series D (“New Series D”) convertible preferred stock in a private placement at a purchase price of $34.54 per share for proceeds of approximately $164.8 million, net of issuance costs. The New Series D 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 D private placement was to raise funds for general corporate needs and for the share repurchase discussed below. Dividends Dividends on shares of the New Series D 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, New Series C and New Series D convertible preferred stock have been paid or set aside for payment to the New Series A, New Series B, New Series C and New Series D 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. To date, no dividends have been declared on any of Prosper’s preferred stock or common stock, and there are no dividends in arrears at June 30, 2015. Liquidation Rights Prosper’s convertible preferred stock has been classified as temporary equity on the accompanying balance sheets. The preferred stock is not redeemable; however, in the event of a voluntary or involuntary liquidation, dissolution, change in control or winding up of Prosper, holders of convertible preferred stock may have the right to receive such convertible preferred stock’s liquidation preference under the terms of Prosper’s certificate of incorporation. The New Series D convertible preferred stock is entitled to receive, on a pari passu 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 Prosper’s bylaws. The number of authorized, issued and outstanding shares, their par value and liquidation preference for each series of convertible preferred stock as of June 30, 2015 are disclosed in the table below (amounts in thousands except share and per share amounts): Convertible Preferred Stock Par Value Authorized shares Outstanding and Issued shares Liquidation Preference New Series A $ 0.01 13,711,644 13,711,644 $ 19,774 Series A-1 0.01 4,952,183 4,952,183 49,522 New Series B 0.01 7,155,176 7,155,176 21,581 New Series C 0.01 4,880,954 4,880,954 70,075 New Series D 0.01 4,777,728 4,777,728 165,000 35,477,685 35,477,685 325,952 Common Stock Prosper, through its amended and restated certificate of incorporation, is the sole issuer of common stock and related options and warrants. In April 2015, Prosper 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 Prosper has the authority to issue is 89,542,900, consisting of 54,065,215 shares of common stock, $0.01 par value per share, and 35,477,685 shares of preferred stock, $0.01 par value per share. As of June 30, 2015, 14,975,613 shares of common stock were issued and 14,008,239 shares of common stock were outstanding. As of December 31, 2014, 14,448,700 shares of common stock were issued and 14,261,513 shares of common stock were outstanding. Each holder of common stock is entitled to one vote for each share of common stock held. On June 12, 2015, Prosper repurchased 777,025 shares of common stock from certain employees at a price equal to $34.54 per share for an aggregate purchase price of $26.8 million. As the purchase price exceeded the fair value of common stock at the time of the repurchase, Prosper recognized compensation costs of $5.7 million which is recorded in Origination and Servicing for $0.13 million, Sales and Marketing for $0.04 million and General and Administrative for $5.50 million on the statement of operations. As part of this transaction Prosper repurchased 721,419 shares for a total of $24.9 million from Prosper’s executive officers. Common Stock Issued upon Exercise of Stock Options During the six months ended June 30, 2015 Prosper issued 438,795 shares of common stock, upon the exercise of options for cash proceeds of $0.66 million, of which 12,709 shares were unvested. With the approval of Prosper’s board of directors, Prosper allows certain employees and directors to exercise stock options granted under the 2005 Plan prior to vesting. The unvested shares are subject to Prosper’s repurchase right 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. At June 30, 2015 and December 31, 2014, there were 3,084,604 and 4,114,269 shares respectively of restricted stock outstanding that remain unvested and subject to Prosper’s right of repurchase. For the six months ended June 30, 2015, Prosper repurchased 30,341 shares of restricted stock for $4 thousand upon termination of employment of various employees. Common Stock Issued upon Exercise of Warrants For the six months ended June 30, 2015, Prosper issued 35,678 shares of common stock upon the exercise of warrants for aggregate proceeds of $116 thousand. |
Stock Option Plan and Compensat
Stock Option Plan and Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Plan and Compensation | 9. Stock Option Plan and Compensation In 2005, Prosper’s stockholders approved the adoption of the 2005 Stock Plan. In December 2010, Prosper’s stockholders approved the adoption of the Amended and Restated 2005 Stock Plan (the “2005 Plan”). The 2005 Plan expired during the three months ending June 30, 2015 and Prosper’s stockholders approved the adoption of the 2015 Equity Incentive Plan (the “2015 Plan”). As of June 30, 2015 under the 2005 Plan, options to purchase up to 15,195,255 shares of common stock are reserved and may be granted to employees, directors, and consultants by Prosper’s board of directors and stockholders to promote the success of its business. As of June 30, 2015 under the 2015 Plan, options to purchase up to 2,080,323 shares of common stock are reserved and may be granted to employees, directors, and consultants by Prosper’s board of directors and stockholders to promote the success of its business. Options generally vest 25% one year from the vesting commencement date and 1/48 th At June 30, 2015, there were 1,633,723 stock options available for grant under the 2015 Plan and zero stock options available for grant under the 2005 Plan. Early Exercised Stock Options The activity of options that were early exercised under the 2005 Plan for the six months ended June 30, 2015 is below: Early exercised options, unvested Weighted average exercise price Balance as of January 1, 2015 4,112,269 $ 0.25 Exercise of non-vested stock options 12,709 3.07 Repurchase of restricted stock (30,341 ) 0.13 Restricted stock vested (1,010,033 ) 0.23 Balance as of June 30, 2015 3,084,604 $ 0.26 Additional information regarding the unvested early exercised stock options outstanding as of June 30, 2015 is as follows: Options Outstanding Range of Exercise Number Weighted –Avg. Weighted –Avg. Prices Outstanding Remaining Life Exercise Price $ 0.10 2,672,797 1.64 $ 0.10 0.57 351,563 2.71 0.57 5.65 60,244 3.10 5.65 $0.10 - $5.65 3,084,604 1.79 $ 0.26 Stock Option Activity Stock option activity under the 2005 Plan and 2015 Plan is summarized for the six months ended June 30, 2015 below: Options Issued and Outstanding Weighted- Average Exercise Price Balance as of January 1, 2015 4,994,998 $ 1.85 Options granted 2,919,414 19.52 Options exercised – vested (426,086 ) 1.45 Options exercised – nonvested (12,709 ) 3.07 Options forfeited (570,281 ) 2.79 Balance as of June 30, 2015 6,905,336 9.26 Options vested and/or exercisable at June 30, 2015 5,798,746 8.30 For the six months ended June 30, 2015, Prosper granted stock options to purchase 2,919,414 shares of common stock with a weighted average grant date fair value of $14.72 per share and an estimated aggregate fair value of approximately $43.0 million. Other Information Regarding Stock Options Additional information regarding common stock options outstanding as of June 30, 2015 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 $0.10 139,046 8.12 $ 0.10 69,939 $ 0.10 0.57 2,612,902 8.11 0.57 2,133,049 0.57 1.20 60,889 6.20 1.20 57,470 1.20 1.70 44,491 6.78 1.70 36,427 1.70 2.00 81,724 5.10 2.00 81,724 2.00 5.00 7,000 1.25 5.00 7,000 5.00 5.60 18,250 4.21 5.60 18,250 5.60 5.65 1,077,995 9.21 5.65 70,750 5.65 18.11 2,416,439 9.63 18.11 - 18.11 27.24 446,600 9.87 27.24 - 27.24 $0.10 - $27.24 6,905,336 8.85 $ 7.49 2,474,609 $ 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 Prosper to make assumptions and judgments about the variables used in the calculation, including the fair value of its common stock, the expected term (the period of time that the options granted are expected to be outstanding), the volatility of its common stock value, a risk-free interest rate, and expected dividends. Given the absence of a publicly traded market, Prosper considered numerous objective and subjective factors to determine the fair value of its 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 its preferred stock sold to outside investors; (iii) the rights, preferences and privileges of its preferred stock relative to its common stock; (iv) the lack of marketability of its common stock; (v) developments in its business; (vi) secondary transactions of its 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 Prosper, given prevailing market conditions. Prosper 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 Prosper’s stock is not publicly traded, the expected volatility of its stock price is based on an average of the historical volatilities of the common stock of several entities with characteristics similar to those of Prosper. The expected term assumptions were determined based on the vesting terms and contractual terms 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. Prosper uses an expected dividend yield of zero as it does not anticipate paying any dividends in the foreseeable future. Expected forfeitures are based on Prosper’s historical experience. The fair value of Prosper’s stock option awards for the three months and six months ended June 30, 2015 and 2014 was estimated at the date of grant using the Black-Scholes model with the following average assumptions: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Volatility of common stock 52.75 % 72.48 % 57.26 % 69.29 % Risk-free interest rate 1.80 % 1.97 % 1.72 % 1.77 % Expected life 6.0 6.1 years 6.1 years 5.6 years Dividend yield 0 % 0 % 0 % 0 % During the six months ended June 30, 2015, Prosper issued 90,000 shares of restricted stock to employees at a purchase price of $18.11 per share. One third of these shares vest on the annual anniversary date of the grant over the three year term of the agreement. The following table presents the amount of stock-based compensation related to stock-based awards granted to employees recognized in Prosper’s condensed consolidated statements of operations during the three and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Origination and servicing $ 292 $ 8 $ 436 $ 70 Sales and marketing 676 15 1,065 32 General and administrative 1,784 217 2,691 388 Total stock based compensation $ 2,752 $ 240 $ 4,192 $ 490 During the three months ended June 30, 2015 and 2014, Prosper capitalized $175 thousand and $5 thousand respectively, of stock-based compensation as internal use software and website development costs. During the six months ended June 30, 2015 and 2014, Prosper capitalized $297 thousand and $10 thousand respectively, of stock-based compensation as internal use software and website development costs. As of June 30, 2015, the unamortized stock-based compensation expense adjusted for forfeiture estimates related to Prosper’s employees’ unvested stock-based awards was approximately $34.8 million, which will be recognized over the remaining weighted-average vesting period of approximately 3.3 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Taxes | 10. Income Taxes For the three and six months ended June 30, 2015, Prosper recognized $176 thousand and $249 respectively of income tax expense. The income tax expense relates to state income tax expense and the amortization of goodwill from the Acquisition for tax purposes which gives rise to an indefinite-lived deferred tax liability. No other income tax expense or benefit was recorded for the three and six months ended June 30, 2015 and 2014 due to a full valuation allowance recorded against our deferred tax assets. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize our existing deferred tax assets. On the basis of this evaluation, a full valuation allowance has been recorded to recognize only deferred tax assets that are more likely than not to be realized. Prosper files U.S. Federal and multiple state tax returns. Prosper is currently not subject to any income tax examinations in any jurisdiction. Due to the Prosper’s losses, generally income tax returns related to all years remain open to examination. The net amount of unrecognized tax benefits as of June 30, 2015 is $4.9 million related to the uncertainty of whether Prosper will be allowed to utilize certain California NOL carryforwards and R&D credits to offset future taxable income due to Section 382 limitations. Prosper does not expect any material changes in the next 12 months to its unrecognized tax benefits. Subsequent to the issuance of the consolidated financial statements for the year ended December 31, 2014, Prosper identified an error that affected the disclosure of Unrecognized Tax Benefits as of December 31, 2014. The error was the result of presenting a portion of the unrecognized tax benefit gross of the application of the applicable tax rate, which resulted in an overstatement of the amount. The amount of unrecognized tax benefits as of January 1, 2015 has been revised to reflect the correction of the error. All unrecognized tax benefits are netted against deferred tax assets with a full valuation allowance. If these amounts are recognized there will be no effect on Prosper's effective tax rate due to the full valuation allowance. The following table summarizes Prosper’s activity related to its unrecognized tax benefits (in thousands): Beginning balance as of January 1, 2015 $ 4,927 Decrease related to prior year positions - Increase related to current year positions - Ending balance as of June 30, 2015 $ 4,927 The unrecognized tax benefits would not affect income tax expense if recognized, after consideration of the valuation allowance. Prosper recognizes interest and/or penalties related to uncertain tax positions. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected in the period that such determination is made. The interest and penalties are recognized as other expense in the income statement. Prosper currently has no interest and penalties related to uncertain tax positions. |
Prosper Funding LLC [Member] | |
Income Taxes | 6. Income Taxes Prosper Funding incurred no income tax provision for the three and six months ended June 30, 2015 and 2014. Prosper Funding is a US disregarded entity and its 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 Prosper Funding is 0%. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies | 11. Commitments and Contingencies Future Minimum Lease Payments During 2014, Prosper entered into leases for its new corporate headquarters at 221 Main Street in San Francisco, California and for its co-location facility. These are non-cancelable operating leases that expire in February 2023 and August 2015, respectively. In 2014, Prosper entered into a lease for office space in Phoenix, Arizona under an operating lease that expires in July 2021. In 2015, Prosper entered into a lease for office space in Lehi, Utah under an operating lease that expires in February 2027. Future minimum rental payments under these leases as of June 30, 2015 are as follows (in thousands): Remaining six months of 2015 1,913 2016 4,439 2017 5,326 2018 5,687 2019 5,845 2020 6,007 Thereafter 20,923 Total future operating lease obligations $ 50,140 Rental expense under operating lease arrangements was $0.9 million and $0.2 million for the three months ended June 30, 2015 and 2014, respectively. Rental expense under operating lease arrangements was $1.7 million and $0.3 million for the six months ended June 30, 2015 and 2014, respectively. Operating Commitments Prosper amended and restated its agreement with WebBank, under which all Borrower Loans originated through Prosper’s marketplace are made by WebBank under its bank charter. The arrangement allows for Borrower Loans to be offered to borrowers nationwide on uniform terms. Prosper 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 the year ended December 31, 2015 is $1.4 million. Loan Purchase Commitments Prosper has entered into an agreement with WebBank to purchase $31.2 million of Borrower Loans that WebBank is originating within the first two business days of the three months ended September 30, 2015. Repurchase and Indemnification Contingency Under the terms of the loan purchase agreements between Prosper and investor members that participate in the Whole Loan Channel, Prosper 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. Prosper 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 through the Whole Loan Channel, which at June 30, 2015 is $2,393 million. Prosper has accrued $281 thousand and $171 thousand as of June 30, 2015 and December 31, 2014, respectively in regard to this obligation. Securities Law Compliance From inception through October 16, 2008, Prosper sold approximately $178.0 million of Borrower Loans to investor members through its old platform structure, whereby Prosper assigned promissory notes directly to investor members. Prosper 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. Prosper 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, Prosper would have failed to comply with the registration and qualification requirements of federal and state laws. Prosper’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, Prosper and the North American Securities Administrators Association (“NASAA”) reached agreement on the terms of a model consent order between Prosper and the states in which it, under its initial platform structure, offered promissory notes for sale directly to investor members prior to November 2008. The consent order involves payment by Prosper of up to an aggregate of $1 million in penalties, which have been allocated among the states based on Prosper’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 our 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. Prosper 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 Prosper, subject to any applicable statute of limitations. As of June 30, 2015, Prosper has entered into consent orders with 35 states and has paid an aggregate of $0.48 million in penalties to those states. As of June 30, 2015 and December 31, 2014, Prosper has accrued approximately $0.23 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 Prosper’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, Prosper 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 Prosper; 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. Prosper will continue to evaluate this accrual and related assumptions as new information becomes known. In 2008, plaintiffs filed a class action lawsuit against Prosper 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 Prosper 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, Prosper 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 the defendants were 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 $5.9 million in the condensed consolidated balance sheet as of June 30, 2015. |
Prosper Funding LLC [Member] | |
Commitments and Contingencies | 7. Commitments and Contingencies Operating Commitments Prosper Funding and PMI entered into an amended and restated agreement with WebBank, pursuant to which Prosper Funding is required to pay WebBank the greater of a monthly minimum fee or a fee calculated based on a certain percentage of Borrower Loans purchased by Prosper Funding. The minimum annual fee for the year ended December 31, 2015 is $1.4 million. Loan Purchase Commitments Under the terms of Prosper Funding’s agreement with WebBank, Prosper Funding is committed to purchase $31.2 million of Borrower Loans that WebBank will originate within the first two business days of July 2015. Repurchase and Indemnification Contingency Under the terms of the loan purchase agreements between Prosper Funding and investor members that participate in the Whole Loan Channel, Prosper Funding 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. Prosper Funding 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 through the Whole Loan Channel, which at June 30, 2015 is $2.1 billion. Prosper Funding had accrued $252 thousand and $171 thousand as of June 30, 2015 and December 31, 2014 in regard to this obligation, respectively. |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2015 | |
Related Parties | 12. 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 in its marketplace by placing bids and purchasing Notes. The aggregate amount of the Notes purchased and the income earned by parties deemed to be affiliates and related parties of Prosper for the three and six months ended June 30, 2015 and 2014, as well as the Notes outstanding as of June 30, 2015 and December 31, 2014 are summarized below (in thousands): Aggregate Amount of Notes Purchased Interest Earned on Notes Six Months Ended June 30, Six Months Ended June 30, Related Party 2015 2014 2015 2014 Executive officers and management $ 846 $ 403 $ 98 $ 49 Directors 20 $ 3 $ 4 $ 3 Total $ 866 $ 406 $ 102 $ 52 Aggregate Amount of Notes Purchased Interest Earned on Notes Three Months Ended June 30, Three Months Ended June 30, Related Party 2015 2014 2015 2014 Executive officers and management $ 365 $ 189 $ 51 $ 13 Directors - $ 1 $ 2 $ - Total $ 365 $ 190 $ 53 $ 13 Notes Balance as of Related Party June 30, 2015 December 31, 2014 Executive officers and management $ 1,992 $ 1,614 Directors 96 76 $ 2,088 $ 1,690 Prosper has earned approximately $5 thousand and $2 thousand in servicing fee revenue related to these Notes for the three months ended June 30, 2015 and 2014, respectively. Prosper has earned approximately $9 thousand and $8 thousand in servicing fee revenue related to these Notes for the six months ended June 30, 2015 and 2014, respectively. |
Prosper Funding LLC [Member] | |
Related Parties | 8. Related Parties Since inception, Prosper Funding has engaged in various transactions with its directors, executive officers and sole member, and immediate family members and other affiliates of its directors, executive officers and sole member. Prosper Funding believes that all of the transactions described below were made on terms no less favorable to Prosper Funding than could have been obtained from unaffiliated third parties. Prosper Funding’s executive officers, directors who are not executive officers participate in its marketplace by placing bids and purchasing Notes. The aggregate amount of the Notes purchased and the income earned by parties deemed to be related parties of Prosper as of June 30, 2015 and December 31, 2014 are summarized below (in thousands): Aggregate Amount of Notes Purchased Interest Earned on Notes Six Months Ended June 30, Six Months Ended June 30, Related Party 2015 2014 2015 2014 Executive officers and management $ 846 $ 403 $ 98 $ 49 Directors - - - - Total $ 846 $ 403 $ 98 $ 49 Note Balance as of Related Party June 30, 2015 December 31, 2014 Executive officers and management $ 1,992 $ 1,614 Directors - - $ 1,992 $ 1,614 Prosper Funding has earned approximately $5 thousand and $2 thousand in servicing fee revenue related to these Notes for the three months ended June 30, 2015 and 2014, respectively. Prosper Funding has earned approximately $9 thousand and $8 thousand in servicing fee revenue related to these Notes for the six months ended June 30, 2015 and 2014, respectively. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Postretirement Benefit Plans | 13. Postretirement Benefit Plans Prosper 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 eligible compensation up to the annual maximum as determined by the Internal Revenue Service. Prosper’s contributions to the 401(k) plan are discretionary. During the three months ended June 30, 2015 and 2014, Prosper has contributed $0.4 million and $0.2 million to the 401 (k) plan. During the six months ended June 30, 2015 and 2014, Prosper has contributed $0.8 million and $0.2 million to the 401 (k) plan. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segments | 14. Segments Prosper’s chief operating decision maker, which is its executive group, reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The chief operating decision maker does not review any financial information that is at a lower level than the overall Prosper results. As such, Prosper has a single reporting segment and operating unit structure. |
Restatement of Condensed Consol
Restatement of Condensed Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2015 | |
Condensed Financial Statements Captions [Line Items] | |
Restatement of Condensed Consolidated Financial Statements | 15. Restatement of Condensed Consolidated Financial Statements Subsequent to the issuance of the condensed consolidated financial statements for the three and six months ended June 30, 2014, Prosper identified errors that affected the interim condensed financial statements as of and for the three and six months ended June 30, 2014. Financial statements presented herein have been restated to correct for these errors that are described below and summarized in the tables that follow. Prosper discovered that certain fees that Prosper pays to WebBank were incorrectly classified as expenses. Since WebBank is a customer of Prosper and Prosper earns transaction fees from WebBank any cash consideration paid to WebBank should be recorded as a reduction of the Transaction Fees earned by Prosper. This resulted in an overstatement of Transaction Fee revenues and Origination and Servicing expenses of $700 thousand and $1,089 thousand for the three and six months ended June 30, 2014, respectively. Prosper also discovered that certain rebates offered on the sale of Borrower 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 $428 thousand, an overstatement of Other Revenues of $392 thousand and an overstatement of Change in Fair Values of Borrower Loans, Loans Held for Sale and Notes of $36 thousand for the three months ended June 30, 2014. This resulted in an understatement of Transaction Fee revenues of $660 thousand, an overstatement of Other Revenues of $580 thousand and an overstatement of Change in Fair Values of Borrower Loans, Loans Held for Sale and Notes of $80 thousand for the six months ended June 30, 2014. Additionally, Prosper 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 Borrower Loans which was included in Other Revenues of $946 thousand and $926 thousand for the three and six months ended June 30, 2015, respectively. Also, we discovered errors in our amortization of the servicing assets and liabilities which understated Servicing Income by $600 thousand and $951 thousand for the three and six months ending June 30, 2014, respectively. Prosper also discovered errors related to internal use software and web site development costs including an impairment that was not recorded when the project was abandoned in the prior year and assets were being amortized over a time period that exceeded their useful life which understated amortization included in Origination and Servicing expense for $9 thousand and $51 thousand for the three and six months ended June 30, 2014, respectively. In addition to the restatements described above, Prosper 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. Prosper also discovered the following classification errors within its Condensed Consolidated Statement of Cash Flows: ● Changes in Restricted Cash and Payable to Investors balances related to operating activities were inappropriately presented due to certain bank accounts being inappropriately excluded from the balance sheet. 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. ● 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. Lastly, Prosper corrected its calculation of basic and diluted earnings (loss) per share for the changes to net income (loss) and errors in the calculation of the weighted average basic and diluted shares which was overstated by 456,484 shares for the six months ended June 30, 2014. For the three months ended June 30, 2014 as a result of the corrections described above the net loss moved to net income; in addition, because the Convertible Preferred Stock participates in any earnings income allocated to participating securities, the amount was understated by $533 thousand. Further the weighted average shares for basic and diluted earnings per share were overstated by 537,312 shares and understated by 7,282,124 shares, respectively. The following tables present the impact of these corrections and corrections of other immaterial errors on three and six months ended June 30, 2014 ($ in thousands): Condensed Consolidated Statement of Operations – Three months ended June 30, 2014 As previously reported Reclassifications* As reclassified Adjustments As corrected Revenue Operating Revenue Transaction Fees, Net $ 16,448 $ (429 ) $ 16,019 $ (39 ) $ 15,980 Rebates and Promotions (639 ) 639 - - - Servicing Fees, Net - 83 83 614 697 Other Revenue 269 - 269 448 717 Total Operating Revenue 16,078 293 16,371 1,023 17,394 Interest Income on Borrower Loans 10,702 (293 ) 10,409 27 10,436 Interest Expense on Notes (9,494 ) (9,494 ) (70 ) (9,564 ) Net Interest Income 1,208 (293 ) 915 (43 ) 872 Change in Fair Value on Borrower Loans, Loans Held for Sale and Notes, net 91 - 91 (64 ) 27 Total Net Revenue 17,377 - 17,377 916 18,293 Cost of Revenue Cost of Services (767 ) 767 - - - Provision for repurchase and indemnification obligation (54 ) 54 - - - (821 ) 821 - - - Expenses Compensation and benefits 5,277 (5,277 ) - - - Marketing and advertising 9,040 (9,040 ) - - - Depreciation and amortization 380 (380 ) - - - Professional services 364 (364 ) - - - Facilities and maintenance 621 (621 ) - - Loss on impairment - - - - - Other 877 (877 ) - - - Origination and Servicing - 2,773 2,773 41 2,814 Sales and Marketing - 9,392 9,392 - 9,392 General and Administrative - 5,215 5,215 158 5,373 Total Expenses 16,559 821 17,380 199 17,579 Other income - - - - - Total Net Income $ (3 ) $ - $ (3 ) $ 717 $ 714 *See note 1 for a description of the reclassifications. Condensed Consolidated Statement of Operations – Six months ended June 30, 2014 As previously reported Reclassifications* As reclassified Adjustments As corrected Revenue Operating Revenue Transaction Fees, Net $ 25,149 $ (660 ) 24,489 $ (145 ) $ 24,344 Rebates and Promotions (999 ) 999 - - - Servicing Fees, Net - 182 182 930 1,112 Other Revenue 965 - 965 196 1,161 Total Operating Revenue 25,115 521 25,636 981 26,617 Interest Income on Borrower Loans 20,812 (522 ) 20,290 81 20,371 Interest Expense on Notes (18,763 ) (18,763 ) (224 ) (18,987 ) Net Interest Income 2,049 (522 ) 1,527 (143 ) 1,384 Change in Fair Value on Borrower Loans, Loans Held for Sale and Notes, net 389 - 389 (118 ) 271 Total Net Revenue 27,553 (1 ) 27,552 720 28,272 Cost of Revenue Cost of Services (1,293 ) 1,293 - - - Provision for repurchase and indemnification obligation (116 ) 116 - - - (1,409 ) 1,409 - - - Expenses Compensation and benefits 9,219 (9,219 ) - - - Marketing and advertising 15,026 (15,026 ) - - - Depreciation and amortization 743 (743 ) - - - Professional services 541 (541 ) - - - Facilities and maintenance 1,066 (1,066 ) - - Loss on impairment 215 (215 ) - - - Other 1,503 (1,503 ) - - - Origination and Servicing - 4,904 4,904 201 5,105 Sales and Marketing - 15,816 15,816 10 15,826 General and Administrative - 9,001 9,001 344 9,345 Total Expenses 28,313 1,408 29,721 555 30,276 Other income - - - - - Total Net Income $ (2,169 ) $ - $ (2,169 ) $ 165 $ (2,004 ) *See note 1 for a description of the reclassifications. Condensed Consolidated Statements of Cash Flows – Six months ended June 30, 2014 As previously reported Adjustments As corrected Cash flows from operating activities: Net Loss $ (2,169 ) $ 165 $ (2,004 ) Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes - (271 ) (271 ) Change in Fair Value of Notes (1,350 ) 1,350 - Change in Fair Value of Borrower Loans Receivable 958 (958 ) - Change in Fair Value of Loans Held for Sale 3 (3 ) - Other, Net - 63 63 Depreciation and Amortization 743 48 791 Stock-Based Compensation 500 (10 ) 490 Loss on Impairment of Property and Equipment 215 - 215 Change in Servicing Rights - (974 ) (974 ) Purchase of loans held for sale at fair value - (475,934 ) (475,934 ) Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value - 471,151 471,151 Changes in Operating Assets and Liabilities: - Restricted Cash (2,473 ) (17,874 ) (20,347 ) Accounts Receivable (11 ) (153 ) (164 ) Prepaid and Other Assets (2,162 ) 28 (2,134 ) Accounts Payable and Accrued Liabilities 3,776 (307 ) 3,469 Repurchase liability for unvested stock awards - - - Payable to Investors - 17,550 17,550 Class Action Settlement Liability (2,000 ) - (2,000 ) Net Cash Used in Operating Activities (3,970 ) (6,129 ) (10,099 ) Cash Flows From Investing Activities: Purchase of Borrower Loans Receivable Held at Fair Value (330,464 ) 243,668 (86,796 ) Principal Payment of Borrower Loans Receivable Held at Fair Value 65,648 (7,837 ) 57,811 Proceeds from Sale of Borrower Loans Receivable Held at Fair Value 243,235 (243,235 ) - Repayment of Loans Held for Investment at Fair Value 312 (312 ) - Origination of Loans Held for Investment at Fair Value (111,927 ) 111,927 - Proceeds from sale of Borrower Loans at Fair Value 105,986 (105,986 ) - Purchases of Property and Equipment (1,762 ) 90 (1,672 ) Maturities of Short Term Investments - 1,271 1,271 Purchases of Short Investments - (1,274 ) (1,274 ) Changes in Restricted Cash Related to Investing Activities - (218 ) (218 ) Net Cash Used in Investing Activities (28,972 ) (1,906 ) (30,878 ) Cash Flows from Financing Activities: Proceeds from Issuance of Notes Held at Fair Value 86,713 (35 ) 86,678 Payment of Notes Held at Fair Value (65,646 ) 8,071 (57,575 ) Proceeds from Issuance of Convertible Preferred Stock, net 69,958 - 69,958 Proceeds from Early Exercise of Stock Options 276 1 277 Proceeds from Exercise of Vested Stock Options and Common Stock Warrants 31 83 114 Proceeds from the Excercise of Warrants 85 (85 ) - Repurchase of Restricted Stock (12 ) - (12 ) Net Cash Provided by Financing Activities $ 91,405 $ 8,035 $ 99,440 Net Decrease in Cash and Cash Equivalents 58,463 - 58,463 Cash and Cash Equivalents at Beginning of the Period 18,339 - 18,339 Cash and Cash Equivalents at End of the Period $ 76,802 $ - $ 76,802 |
Prosper Funding LLC [Member] | |
Condensed Financial Statements Captions [Line Items] | |
Restatement of Condensed Consolidated Financial Statements | 9. Restatement of Condensed Consolidated Financial Statements Subsequent to the issuance of the condensed consolidated financial statements for the three and six months ended June 30, 2014, Prosper Funding identified errors that affected the interim condensed financial statements as of and for the three and six months ended June 30, 2014. The financial statements presented herein have been restated to correct for these errors that are described below. Prosper Funding discovered certain errors in its valuation of servicing assets and liabilities which resulted in an overstatement of the servicing assets, an understatement of the servicing liabilities and an understatement of the gain recognized on the sale of Borrower Loans which was included in Other Revenues of $946 thousand and $926 thousand for the three and six months ended June 30, 2014, respectively. Also, we discovered errors in our amortization of the servicing assets and liabilities which understated Servicing Income by $620 thousand and $977 thousand for the three and six months ending June 30, 2014, respectively. Prosper Funding also discovered that the Administration Fee Related Party Expense was understated by $521 thousand and Servicing expenses were overstated by $687 thousand for the three months ended June 30, 2014 due to a misclassification of an expense between the two statement of operations line items and an error in the calculation of the Administration Fee Related Party Expense. Prosper Funding also discovered that the Administration Fee Related Party Expense was understated by $849 thousand and Servicing expenses were overstated by $1,068 thousand for the six months ended June 30, 2014 due to a misclassification of an expense between the two statement of operations classifications and an error in the calculation of the Administration Fee Related Party Expense. The offset to the above errors was to Related Party Receivable which was understated as a result. Furthermore, we also discovered that the Administration Fee Related Party Expense was understated by $782 thousand and $1,489 thousand for the three and six months ended June 30, 2014 due to the amortization of servicing assets and liabilities being incorrectly amortized to this line item. Prosper Funding also discovered errors related to internal use software including an overstatement of assets transferred from PMI and assets that were being amortized over their original estimated useful life after Prosper Funding decided to replace the assets before the originally estimated useful life which understated amortization by $9 thousand and $ 51 thousand for the three and six months ended June 30, 2014, respectively, which is included in Servicing expenses. In addition to the restatements described above, Prosper Funding 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, and reclassification of certain Borrower Loans from loans held for investment to Borrower Loans. Lastly, Prosper Funding discovered the following classification errors within its Condensed Consolidated Statement of Cash Flows: ● Changes in Restricted Cash and Payable to Investors balances related to operating activities were inappropriately presented due to certain bank accounts being inappropriately excluded from the balance sheet. 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. ● 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 three months ended June 30, 2014 (in thousands): Condensed Consolidated Statement of Operations – Three months ended June 30, 2014 As previously reported Reclassifications* As reclassified Adjustments As corrected Revenue Operating Revenue Administration Fee Revenue – Related Party $ 6,898 $ — $ 6,898 $ — $ 6,898 Servicing Income, Net — 109 109 594 703 Other Revenue (155 ) — (155 ) 834 679 Total Operating Revenue 6,743 109 6,852 1,428 8,280 Interest Income on Borrower Loans 10,518 (109 ) 10,409 135 10,544 Interest Expense on Notes (9,494 ) — (9,494 ) (70 ) (9,564 ) Net Interest Income 1,024 (109 ) 915 65 980 Change in Fair Value on Borrower Loans, Loans Held for Sale and Notes, net 91 — 91 (64 ) 27 Total Net Revenue 7,858 — 7,858 1,429 9,287 Cost of Revenue Cost of Services (654 ) 654 — — — Provision for repurchase and indemnification obligation (56 ) 56 — — — (710 ) 710 — — — Expenses Servicing — 963 963 (605 ) 358 Administration Fee – Related Party 4,234 — 4,234 1,302 5,536 Depreciation and Amortization 253 (253 ) — — — Professional Services — — — — — Other Operating Expenses 77 (77 ) — — — General and Administration — 77 77 4 81 Total Expenses 4,564 710 5,274 701 5,975 Total Net Income $ 2,584 $ — $ 2,584 $ 728 $ 3,312 *See note 1 for further details on the reclassifications. Condensed Consolidated Statement of Operations – Six months ended June 30, 2014 As previously reported Reclassifications* As reclassified Adjustments As corrected Revenue Operating Revenue Administration Fee Revenue – Related Party $ 10,951 $ — $ 10,951 $ — $ 10,951 Servicing Income, Net — 279 279 847 1,126 Other Revenue 201 - 201 776 977 Total Operating Revenue 11,152 279 11,431 1,623 13,054 Interest Income on Borrower Loans 20,568 (278 ) 20,290 222 20,512 Interest Expense on Notes (18,763 ) - (18,763 ) (223 ) (18,986 ) Net Interest Income 1,805 (278 ) 1,527 (1 ) 1,526 Change in Fair Value on Borrower Loans, Loans Held for Sale and Notes, net 389 (1 ) 388 (36 ) 352 Total Net Revenue 13,346 - 13,346 1,586 14,932 Cost of Revenue Cost of Services (1,051 ) 1,051 — — — Provision for repurchase and indemnification obligation (118 ) 118 — — — (1,169 ) 1,169 — — — Expenses Servicing — 1,656 1,656 (901 ) 755 Administration Fee – Related Party 6,840 — 6,840 2,191 9,031 Depreciation and Amortization 487 (487 ) — — — Professional Services 12 (12 ) — — — Other Operating Expenses 166 (166 ) — — — General and Administration — 178 178 8 186 Total Expenses 7,505 1,169 8,674 1,298 9,972 Total Net Income $ 4,672 $ — $ 4,672 $ 288 $ 4,960 *See note 1 for further details on the reclassifications. Condensed Consolidated Statements of Cash Flows – Six months ended June 30, 2014 As previously reported Adjustments As corrected Cash flows from operating activities: Net Income $ 4,672 $ 288 $ 4,960 Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: Change in Fair Value of Notes (1,350 ) 1,350 - Change in Fair Value of Borrower Loans Receivable 958 (958 ) - Change in Fair Value of Loans Held for Sale 3 (3 ) - Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes - (352 ) (352 ) Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes - 2 2 Depreciation and Amortization 487 52 539 Change in Servicing Rights - (998 ) (998 ) Purchase of Loans Held for Sale at Fair Value - (475,934 ) (475,934 ) Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value - 471,151 471,151 Changes in Operating Assets and Liabilities: - Restricted Cash (1,971 ) (17,972 ) (19,943 ) Other Assets (5 ) 9 4 Accounts Payable and Accrued Liabilities 158 369 527 Payable to Investors - 16,995 16,995 Net Related Party Payable (31 ) (218 ) (249 ) Net Cash Used in Operating Activities 2,921 (6,219 ) (3,298 ) Cash Flows From Investing Activities: Purchase of Borrower Loans Receivable Held at Fair Value (330,464 ) 243,749 (86,715 ) Principal Payment of Borrower Loans Receivable Held at Fair Value 65,648 (7,837 ) 57,811 Proceeds from Sale of Borrower Loans Receivable Held at Fair Value 243,235 (243,235 ) - Repayment of Loans Held for Investment at Fair Value 312 (312 ) - Origination of Loans Held for Investment at Fair Value (111,927 ) 111,927 - Proceeds from Sale of Borrower Loans at Fair Value 105,986 (105,986 ) - Maturities of Short Term Investments - 1,271 1,271 Purchases of Property and Equipment - (1,274 ) (1,274 ) Purchases of Property and Equipment (553 ) - (553 ) Changes in Restricted Cash Related to Investing Activities - (121 ) (121 ) Net Cash Used in Investing Activities (27,763 ) (1,818 ) (29,581 ) Cash Flows from Financing Activities: Proceeds from Issuance of Notes Held at Fair Value 86,713 (34 ) 86,679 Payment of Notes Held at Fair Value (65,646 ) 8,071 (57,575 ) Net Cash Provided by Financing Activities 21,067 8,037 29,104 Net Decrease in Cash and Cash Equivalents (3,775 ) - (3,775 ) Cash and Cash Equivalents at Beginning of the Period 5,789 - 5,789 Cash and Cash Equivalents at End of the Period $ 2,014 $ - $ 2,014 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Significant Accounting Policies [Line Items] | |
Basis of Presentation | The unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and disclosure requirements for interim financial information and the requirements of Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2014. The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date. Management believes these unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. Prosper did not have any items of other comprehensive income (loss) during any of the periods presented in the condensed consolidated financial statements as of and for the three and six months ended June 30, 2015 and 2014. The preparation of Prosper’s condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in Prosper’s financial statements and accompanying notes. Prosper bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material. The accompanying interim condensed consolidated financial statements include the accounts of PMI and its wholly-owned subsidiaries, PFL and PHL. All intercompany balances have been eliminated in consolidation. On January 23, 2015, Prosper acquired all of the outstanding limited liability company units of American HealthCare Lending, LLC (“AHL”), a company that operated a cloud-based patient financing platform, and merged AHL with and into PHL, with PHL surviving the merger. Prosper’s condensed consolidated financial statements include PHL's results of operations and financial position from this date forward (see Note 6 – American HealthCare Lending Acquisition |
Reclassifications | Reclassifications During the year ended December 31, 2014, Prosper changed the presentation of its revenue in the consolidated statements of operations. A new line called “Servicing fees” was created and the servicing fees related to Borrower Loans sold through Prosper’s Whole Loan Channel 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” or “Origination fees” 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 revenue” subtotal. Lastly, the subtotals were realigned to reflect the new presentation. Prosper 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 Prosper’s competitors. |
Fair Value Measurement | Fair Value Measurements Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Short Term Investments, 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. |
Borrower Loans, Loans Held for Sale and Notes | Borrower Loans, Loans Held for Sale and Notes Borrower Loans, loans held for sale and Notes are recorded at fair value. Prosper has adopted the provisions of ASC Topic 825, Financial Instruments (“ASC Topic 825”). |
Loan Servicing Assets and Liabilities | Loan Servicing Assets and Liabilities On January 1, 2015, Prosper elected to adopt the fair value method to measure the servicing assets and liabilities for all classes of servicing assets and liabilities subsequent to initial recognition. ASC 860-50, Servicing Assets and Liabilities, |
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 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 In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity to eliminate the use of different methods in practice and thereby reduce existing diversity in the accounting for hybrid financial instruments issued in the form of a share. For hybrid financial instruments issued in the form of a share, an entity should determine the nature of the contract by considering the economic characteristics and risks of the entire hybrid financial instrument. The existence or omission of any single term or feature does not necessarily determine the economic characteristics and risks of the host contract. This standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. Prosper 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. In April 2015, the FASB issued ASU 2015-05 “ Customers’ Accounting for Cloud Computing Costs ”, which will be effective for the annual reporting period ending after December 15, 2015 . The guidance changes what a customer must consider in determining whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in accordance with guidance related to internal use software; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. Prosper is currently assessing the potential impact on its financial statements from adopting this new guidance. |
Prosper Funding LLC [Member] | |
Significant Accounting Policies [Line Items] | |
Basis of Presentation | The unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and disclosure requirements for interim financial information and the requirements of Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2014. The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date. Management believes these unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. Prosper Funding did not have any items of other comprehensive income (loss) during any of the periods presented in the condensed consolidated financial statements as of and for the three and six months ended June 30, 2015 and 2014. The preparation of Prosper Funding's condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in its condensed consolidated financial statements and accompanying notes. Prosper Funding based its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material. |
Reclassifications | Reclassifications During the year ended December 31, 2014, Prosper Funding changed the presentation of its revenue in the statement of operations. A new line called “Servicing Fees, Net” was created and the servicing fees related to Borrower Loans sold through its Whole Loan Channel 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 revenue subtotal. Prosper Funding 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. Prosper Funding believes these changes make the income statement more useful for the readers of the financial statements and comparable with Prosper Funding’s competitors. |
Fair Value Measurement | Fair Value Measurements Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Short Term Investments, 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. |
Borrower Loans, Loans Held for Sale and Notes | Borrower Loans, Loans Held for Sale and Notes Borrower Loans, loans held for sale and Notes are recorded at fair value. Prosper Funding has adopted the provisions of ASC Topic 825, Financial Instruments (“ASC Topic 825”). |
Loan Servicing Assets and Liabilities | Loan Servicing Assets and Liabilities On January 1, 2015, Prosper Funding elected to adopt the fair value method to measure the servicing assets and liabilities for all classes of servicing assets and liabilities, subsequent to initial recognition. ASC 860, Servicing Assets and Liabilities |
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 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 In February 2015, the FASB issued ASU 2015-02, " Consolidation (Topic 810): Amendments to the Consolidation Analysis. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property and Equipment, Net | Property and equipment consist of the following (in thousands): June 30, December 31, 2015 2014 Property and equipment: Computer equipment $ 6,585 $ 3,824 Internal-use software and website development costs 11,047 4,486 Office equipment and furniture 2,062 1,904 Leasehold improvements 5,570 5,274 Assets not yet placed in service 1,247 4,361 Property and equipment 26,511 19,849 Less accumulated depreciation and amortization (8,463 ) (5,425 ) Total property and equipment, net $ 18,048 $ 14,424 |
Prosper Funding LLC [Member] | |
Property and Equipment, Net | Property and equipment consist of the following (in thousands): June 30, December 31, 2015 2014 Property and equipment: Internal-use software and web site development costs $ 10,530 $ 4,042 Less accumulated depreciation and amortization (4,734 ) (2,917 ) Total property and equipment, net $ 5,796 $ 1,125 |
Borrower Loans, Loans Held fo23
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Aggregate Principal Balances Outstanding and Fair Values of Borrower Loans, Notes and Loans Held for Sale | The aggregate principal balances outstanding and fair values of Borrower Loans, loans held for sale and Notes as of June 30, 2015 and December 31, 2014, are presented in the following table (in thousands): Borrower Loans Notes Loans Held for Sale June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Aggregate principal balance outstanding $ 280,862 $ 268,598 $ (284,628 ) $ (272,267 ) $ 1,416 $ 8,295 Fair value adjustments 3,338 4,645 - (1,516 ) 15 168 Fair value $ 284,200 $ 273,243 $ (284,628 ) $ (273,783 ) $ 1,431 $ 8,463 |
Quantitative Information About Significant Unobservable Inputs | The following table presents quantitative information about the significant unobservable inputs used for Prosper’s Borrower Loans, loans held for sale and Notes fair value measurements at June 30, 2015 and December 31, 2014: Range Unobservable Input June 30, 2015 December 31, 2014 Discount rate 2.7%-11.0% 3.3%-10.6% Default rate 2.8%-19.8% 2.6%-19.7% |
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 changes in those assumptions at June 30, 2015 Borrower Loans, loans held for sale and Notes funded through the Note Channel are presented in the following table (in thousands): Borrower Loans and Loans Held for Sale Notes Discount rate assumption: 4.65 %* 4.65 %* Resulting fair value from: 100 basis point increase $ 282,480 $ 281,481 200 basis point increase 279,414 278,420 Resulting fair value from: 100 basis point decrease $ 288,870 $ 287,861 200 basis point decrease 292,199 291,185 Default rate assumption: 12.23 %* 12.23 %* Resulting fair value from: 200 basis point decrease $ 292,609 $ 291,611 100 basis point decrease 289,117 288,116 Resulting fair value from: 100 basis point increase $ 282,159 $ 281,152 200 basis point increase 278,769 277,760 * |
Changes in Borrower Loans, Loans Held for Sale and Notes, and Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The changes in the Borrower Loans, loans held for sale and Notes, which are Level 3 assets and liabilities measured at fair value on a recurring basis are as follows (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at January 1, 2014 $ 233,105 $ (234,218 ) $ 3,206 $ 2,093 Purchase of Borrower Loans/Issuance of Notes 86,796 (86,679 ) 475,934 476,051 Principal repayments (57,811 ) 57,575 (130 ) (366 ) Borrower Loans sold to third parties - - (471,022 ) (471,022 ) Other changes (100 ) 89 9 (2 ) Change in fair value (9,019 ) 9,290 - 271 Balance at June 30, 2014 $ 252,971 $ (253,943 ) $ 7,997 $ 7,025 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at January 1, 2015 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 Purchase of Borrower Loans/Issuance of Notes 94,512 (94,575 ) 1,402,499 1,402,436 Principal repayments (73,457 ) 73,509 (543 ) (491 ) Borrower Loans sold to third parties - - (1,408,883 ) (1,408,883 ) Other changes (130 ) 136 (9 ) (3 ) Change in fair value (9,968 ) 10,085 (96 ) 21 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at April 1, 2014 $ 244,927 $ (245,335 ) $ 3,482 $ 3,074 Purchase of Borrower Loans/Issuance of Notes 42,529 (42,769 ) 325,250 325,010 Principal repayments (29,479 ) 29,273 (112 ) (318 ) Borrower Loans sold to third parties - - (320,633 ) (320,633 ) Other changes (61 ) (84 ) 10 (135 ) Change in fair value (4,945 ) 4,972 - 27 Balance at June 30, 2014 $ 252,971 $ (253,943 ) $ 7,997 $ 7,025 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Borrower Loans Notes Loans Held for Sale Total Balance at April 1, 2015 $ 280,404 $ (280,801 ) $ 1,599 $ 1,202 Purchase of Borrower Loans/Issuance of Notes 46,805 (46,779 ) 861,574 861,600 Principal repayments (37,395 ) 37,440 (157 ) (112 ) Borrower Loans sold to third parties - - (861,574 ) (861,574 ) Other changes (136 ) (71 ) (1 ) (208 ) Change in fair value (5,478 ) 5,583 (10 ) 95 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 |
Prosper Funding LLC [Member] | |
Aggregate Principal Balances Outstanding and Fair Values of Borrower Loans, Notes and Loans Held for Sale | The aggregate principal balances outstanding and fair values of Borrower Loans, loans held for sale and Notes as of June 30, 2015 and December 31, 2014, are presented in the following table (in thousands): Borrower Loans Notes Loans Held for Sale June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Aggregate principal balance outstanding $ 280,862 $ 268,593 $ (284,628 ) $ (272,270 ) $ 1,416 $ 8,295 Fair value adjustments 3,338 4,650 - (1,513 ) 15 168 Fair value $ 284,200 $ 273,243 $ (284,628 ) $ (273,783 ) $ 1,431 $ 8,463 |
Quantitative Information About Significant Unobservable Inputs | The following table presents quantitative information about the significant unobservable inputs used for Prosper Funding’s Borrower Loans, loans held for sale and Notes fair value measurements at June 30, 2015 and December 31, 2014: Range Unobservable Input June 30, 2015 December 31, 2014 Discount rate 2.7%-11.0% 3.2%-10.6% Default rate 2.8%-19.8% 2.6%-19.7% |
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 changes in those assumptions at June 30, 2015 for Borrower Loans, loans held for sale and Notes funded are presented in the following table (in thousands): Borrower Loans and Loans Held for Sale Notes Discount rate assumption: 4.65 %* 4.65 %* Resulting fair value from: 100 basis point increase $ 282,480 $ 281,481 200 basis point increase 279,414 278,420 Resulting fair value from: 100 basis point decrease $ 288,870 $ 287,861 200 basis point decrease 292,199 291,185 Default rate assumption: 12.23 %* 12.23 %* Resulting fair value from: 200 basis point decrease $ 292,609 $ 291,611 100 basis point decrease 289,117 288,116 Resulting fair value from: 100 basis point increase $ 282,159 $ 281,152 200 basis point increase 278,769 277,760 * Represents weighted average assumptions considering all credit grades. |
Changes in Borrower Loans, Loans Held for Sale and Notes, and Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The changes in the Borrower Loans, loans held for sale and Notes, which are Level 3 assets and liabilities 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 Notes Sale Total Balance at January 1, 2014 $ 233,105 $ (234,218 ) $ 3,206 $ 2,093 Originations 86,715 (86,679 ) 475,934 475,970 Principal repayments (57,811 ) 57,575 (130 ) (366 ) Borrower Loans sold to third parties - - (471,022 ) (471,022 ) Other changes (100 ) 89 9 (2 ) Change in fair value (8,938 ) 9,290 - 352 Balance at June 30, 2014 $ 252,971 $ (253,943 ) ) $ 7,997 $ 7,025 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Notes Sale Total Balance at January 1, 2015 $ 273,243 $ (273,783 ) $ 8,463 $ 7,923 Originations 94,512 (94,575 ) 1,402,499 1,402,436 Principal repayments (73,457 ) 73,509 (543 ) (491 ) Borrower Loans sold to third parties - - (1,408,883 ) (1,408,883 ) Other changes (130 ) 136 (9 ) (3 ) Change in fair value (9,968 ) 10,085 (96 ) 21 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Notes Sale Total Balance at April 1, 2014 $ 244,927 $ (245,335 ) $ 3,482 $ 3,074 Originations 42,529 (42,769 ) 325,250 325,010 Principal repayments (29,479 ) 29,273 (112 ) (318 ) Borrower Loans sold to third parties - - (320,633 ) (320,633 ) Other changes (61 ) (84 ) 10 (135 ) Change in fair value (4,945 ) 4,972 - 27 Balance at June 30, 2014 $ 252,971 $ (253,943 ) ) $ 7,997 $ 7,025 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Loans Held for Borrower Notes Sale Total Balance at April 1, 2015 $ 280,404 $ (280,801 ) $ 1,599 $ 1,202 Originations 46,805 (46,779 ) 861,574 861,600 Principal repayments (37,395 ) 37,441 (157 ) (111 ) Borrower Loans sold to third parties - - (861,574 ) (861,574 ) Other changes (136 ) (71 ) (1 ) (208 ) Change in fair value (5,478 ) 5,582 (10 ) 94 Balance at June 30, 2015 $ 284,200 $ (284,628 ) $ 1,431 $ 1,003 |
Loan Servicing Assets and Lia24
Loan Servicing Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Significant Unobservable Inputs Fair Value | The following table presents quantitative information about the significant unobservable inputs used for Prosper’s servicing asset/liability fair value measurements at June 30, 2015 and December 31, 2014: Range Unobservable Input June 30, 2015 December 31, 2014 Discount rate 15% - 25% 15% - 25% Default rate 2.0% - 20.9% 2.6% - 26.3% Market servicing rate 0.625% 0.625% - 0.70% |
Schedule of Servicing Assets and Liabilities Measured at Fair Value | The following table presents additional information about Level 3 servicing assets and liabilities measured at fair value for the six months ended June 30, 2015 (in thousands). Servicing Assets Servicing Liabilities Amortized cost at January 1, 2015 $ 4,163 $ 624 Adjustment to adopt fair value measurement 546 (29 ) Fair value at January 1, 2015 4,709 595 Additions 5,837 193 Less: Changes in fair value (1,864 ) (182 ) Fair value at June 30, 2015 $ 8,682 $ 606 The following table presents additional information about Level 3 servicing assets and liabilities measured at fair value for the three months ended June 30, 2015 (in thousands). Servicing Assets Servicing Liabilities Fair Value at April 1, 2015 $ 6,034 $ 668 Additions 3,759 39 Less: Changes in fair value (1,111 ) (101 ) Fair value at June 30, 2015 $ 8,682 $ 606 |
Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities | The following table presents the estimated impact on Prosper’s estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of June 30, 2015 (in thousands, except percentages). Servicing Assets Servicing Liabilities Weighted average market servicing rate assumptions 0.625 % 0.625 % Resulting fair value from: Market servicing rate increase to 0.65% $ 8,041 $ (667 ) Market servicing rate decrease to 0.60% $ 9,324 $ (546 ) Weighted average default assumptions 13 % 13 % Resulting fair value from: 100 basis point increase $ 8,529 $ (606 ) 100 basis point decrease $ 8,837 $ (607 ) |
Prosper Funding LLC [Member] | |
Significant Unobservable Inputs Fair Value | The following table presents quantitative information about the significant unobservable inputs used for Prosper Funding's servicing asset/liability fair value measurements at June 30, 2015 and December 31, 2014: Range Unobservable Input June 30, 2015 December 31, 2014 Discount rate 15% - 25% 15% - 25% Default rate 2.0% - 20.9% 2.6% - 26.3% Market servicing rate 0.625% 0.625% - 0.70% |
Schedule of Servicing Assets and Liabilities Measured at Fair Value | The following table presents additional information about Level 3 servicing assets and liabilities recorded at fair value for the three months ended March 31, 2015 (in thousands). Servicing Servicing Assets Liabilities Amortized cost at January 1, 2015 $ 3,116 $ 624 Adjustment to adopt fair value measurement 399 (29 ) Fair value at January 1, 2015 3,515 595 Additions 5,837 193 Less: Transfers to PMI (249 ) - Less: Changes in fair value (1,469 ) (182 ) Fair value at June 30, 2015 $ 7,634 $ 606 Servicing Servicing Assets Liabilities Fair value at April 1, 2015 $ 4,782 $ 668 Additions 3,759 39 Less: Transfers to PMI - Less: changes in fair value (907 ) (101 ) Fair value at June 30, 2015 $ 7,634 $ 606 |
Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities | The following table presents the estimated impact on Prosper Funding’s estimated fair value of servicing assets and liabilities, calculated using different market servicing rates and different default rates as of June 30, 2015 (in thousands, except percentages). Servicing Assets Servicing Liabilities Weighted average market servicing rate assumptions 0.625 % 0.625 % Resulting fair value from: Servicing rate increase to 0.65% $ 7,070 $ (667 ) Servicing rate decrease to 0.60% $ 8,199 $ (546 ) Weighted average default assumptions 13 % 13 % Resulting fair value from: 100 basis point increase $ 7,499 $ (606 ) 100 basis point decrease $ 7,770 $ (607 ) |
American HealthCare Lending A25
American HealthCare Lending Acquisition - (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Preliminary Purchase Price Allocation | The preliminary purchase price allocation as of the merger date is as follows (in thousands): Fair Value Assets: Cash $ 1,219 Accounts Receivable 147 Property, equipment and software 6 Other assets 63 Identified intangible assets 3,520 Goodwill 16,825 Liabilities: Accrued expenses and other liabilities 708 Total purchase consideration $ 21,072 |
Schedule of Intangible Assets | Intangible assets as of June 30, 2015 are as follows (in thousands): June 30, 2015 Gross Carrying Value Accumulated Amortization Net Carrying Value Remaining Useful Life (In Years) Customer relationships $ 2,650 $ (201 ) $ 2,449 10.0 Technology 810 (112 ) 698 3.0 Brand name 60 (25 ) 35 1.0 Total intangible assets subject to amortization $ 3,520 $ (338 ) $ 3,182 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) Per Share | Basic and diluted net income (loss) per share was calculated as follows: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net Income (loss) (in thousands) $ (6,201 ) $ 714 $ (13,477 ) $ (2,004 ) Less: Net income allocated to participating securities - (533 ) - - Net Income (loss) available to common stockholders for basic and diluted income (loss) per share (in thousands) $ (6,201 ) $ 181 $ (13,477 ) $ (2,004 ) Denominator: Weighted average shares used in computing basic net income (loss) per share 11,122,497 8,617,887 10,833,635 8,337,853 Weighted average shares used in computing diluted net income (loss) per share 11,122,497 16,437,323 10,833,635 8,337,853 Basic net income (loss) per share $ (0.56 ) $ 0.02 $ (1.24 ) $ (0.24 ) Diluted net income (loss) per share $ (0.56 ) $ 0.01 $ (1.24 ) $ (0.24 ) |
Common Stock Equivalents Excluded from Computation of Diluted Net Income (Loss) Per Share | The following common stock equivalents were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (shares) (shares) (shares) (shares) Excluded securities: Convertible preferred stock issued and outstanding 35,477,685 32,155,022 35,477,685 32,155,022 Stock options issued and outstanding 6,982,320 - 6,478,422 3,633,509 Unvested stock options exercised 3,084,604 - 3,084,604 4,959,917 Warrants issued and outstanding 123,467 - 123,467 148,438 Total common stock equivalents excluded from diluted net loss per common share computation 45,668,076 32,155,022 45,164,178 40,896,886 |
Convertible Preferred Stock a27
Convertible Preferred Stock and Stockholders' Deficit (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 are disclosed in the table below (amounts in thousands except share and per share amounts): Convertible Preferred Stock Par Value Authorized shares Outstanding and Issued shares Liquidation Preference New Series A $ 0.01 13,711,644 13,711,644 $ 19,774 Series A-1 0.01 4,952,183 4,952,183 49,522 New Series B 0.01 7,155,176 7,155,176 21,581 New Series C 0.01 4,880,954 4,880,954 70,075 New Series D 0.01 4,777,728 4,777,728 165,000 35,477,685 35,477,685 325,952 |
Stock Option Plan and Compens28
Stock Option Plan and Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 for the six months ended June 30, 2015 is below: Early exercised options, unvested Weighted average exercise price Balance as of January 1, 2015 4,112,269 $ 0.25 Exercise of non-vested stock options 12,709 3.07 Repurchase of restricted stock (30,341 ) 0.13 Restricted stock vested (1,010,033 ) 0.23 Balance as of June 30, 2015 3,084,604 $ 0.26 |
Additional Information Regarding the Unvested Early Exercised Stock Options Outstanding | Additional information regarding the unvested early exercised stock options outstanding as of June 30, 2015 is as follows: Options Outstanding Range of Exercise Number Weighted –Avg. Weighted –Avg. Prices Outstanding Remaining Life Exercise Price $ 0.10 2,672,797 1.64 $ 0.10 0.57 351,563 2.71 0.57 5.65 60,244 3.10 5.65 $0.10 - $5.65 3,084,604 1.79 $ 0.26 |
Summarized Option Activity under Option Plan | Stock option activity under the 2005 Plan and 2015 Plan is summarized for the six months ended June 30, 2015 below: Options Issued and Outstanding Weighted- Average Exercise Price Balance as of January 1, 2015 4,994,998 $ 1.85 Options granted 2,919,414 19.52 Options exercised – vested (426,086 ) 1.45 Options exercised – nonvested (12,709 ) 3.07 Options forfeited (570,281 ) 2.79 Balance as of June 30, 2015 6,905,336 9.26 Options vested and/or exercisable at June 30, 2015 5,798,746 8.30 |
Additional Information Regarding Common Stock Options Outstanding | Additional information regarding common stock options outstanding as of June 30, 2015 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 $0.10 139,046 8.12 $ 0.10 69,939 $ 0.10 0.57 2,612,902 8.11 0.57 2,133,049 0.57 1.20 60,889 6.20 1.20 57,470 1.20 1.70 44,491 6.78 1.70 36,427 1.70 2.00 81,724 5.10 2.00 81,724 2.00 5.00 7,000 1.25 5.00 7,000 5.00 5.60 18,250 4.21 5.60 18,250 5.60 5.65 1,077,995 9.21 5.65 70,750 5.65 18.11 2,416,439 9.63 18.11 - 18.11 27.24 446,600 9.87 27.24 - 27.24 $0.10 - $27.24 6,905,336 8.85 $ 7.49 2,474,609 $ 0.83 |
Fair Value of Stock Option Awards | The fair value of Prosper’s stock option awards for the three months and six months ended June 30, 2015 and 2014 was estimated at the date of grant using the Black-Scholes model with the following average assumptions: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Volatility of common stock 52.75 % 72.48 % 57.26 % 69.29 % Risk-free interest rate 1.80 % 1.97 % 1.72 % 1.77 % Expected life 6.0 6.1 years 6.1 years 5.6 years Dividend yield 0 % 0 % 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 Prosper’s condensed consolidated statements of operations during the three and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Origination and servicing $ 292 $ 8 $ 436 $ 70 Sales and marketing 676 15 1,065 32 General and administrative 1,784 217 2,691 388 Total stock based compensation $ 2,752 $ 240 $ 4,192 $ 490 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits | The following table summarizes Prosper’s activity related to its unrecognized tax benefits (in thousands): Beginning balance as of January 1, 2015 $ 4,927 Decrease related to prior year positions - Increase related to current year positions - Ending balance as of June 30, 2015 $ 4,927 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | During 2014, Prosper entered into leases for its new corporate headquarters at 221 Main Street in San Francisco, California and for its co-location facility. These are non-cancelable operating leases that expire in February 2023 and August 2015, respectively. In 2014, Prosper entered into a lease for office space in Phoenix, Arizona under an operating lease that expires in July 2021. In 2015, Prosper entered into a lease for office space in Lehi, Utah under an operating lease that expires in February 2027. Future minimum rental payments under these leases as of June 30, 2015 are as follows (in thousands): Remaining six months of 2015 1,913 2016 4,439 2017 5,326 2018 5,687 2019 5,845 2020 6,007 Thereafter 20,923 Total future operating lease obligations $ 50,140 |
Related Parties (Tables)
Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 for the three and six months ended June 30, 2015 and 2014, as well as the Notes outstanding as of June 30, 2015 and December 31, 2014 are summarized below (in thousands): Aggregate Amount of Notes Purchased Interest Earned on Notes Six Months Ended June 30, Six Months Ended June 30, Related Party 2015 2014 2015 2014 Executive officers and management $ 846 $ 403 $ 98 $ 49 Directors 20 $ 3 $ 4 $ 3 Total $ 866 $ 406 $ 102 $ 52 Aggregate Amount of Notes Purchased Interest Earned on Notes Three Months Ended June 30, Three Months Ended June 30, Related Party 2015 2014 2015 2014 Executive officers and management $ 365 $ 189 $ 51 $ 13 Directors - $ 1 $ 2 $ - Total $ 365 $ 190 $ 53 $ 13 Notes Balance as of Related Party June 30, 2015 December 31, 2014 Executive officers and management $ 1,992 $ 1,614 Directors 96 76 $ 2,088 $ 1,690 |
Prosper Funding LLC [Member] | |
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 related parties of Prosper as of June 30, 2015 and December 31, 2014 are summarized below (in thousands): Aggregate Amount of Notes Purchased Interest Earned on Notes Six Months Ended June 30, Six Months Ended June 30, Related Party 2015 2014 2015 2014 Executive officers and management $ 846 $ 403 $ 98 $ 49 Directors - - - - Total $ 846 $ 403 $ 98 $ 49 Note Balance as of Related Party June 30, 2015 December 31, 2014 Executive officers and management $ 1,992 $ 1,614 Directors - - $ 1,992 $ 1,614 |
Restatement of Condensed Cons32
Restatement of Condensed Consolidated Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 and corrections of other immaterial errors on three and six months ended June 30, 2014 ($ in thousands): Condensed Consolidated Statement of Operations – Three months ended June 30, 2014 As previously reported Reclassifications* As reclassified Adjustments As corrected Revenue Operating Revenue Transaction Fees, Net $ 16,448 $ (429 ) $ 16,019 $ (39 ) $ 15,980 Rebates and Promotions (639 ) 639 - - - Servicing Fees, Net - 83 83 614 697 Other Revenue 269 - 269 448 717 Total Operating Revenue 16,078 293 16,371 1,023 17,394 Interest Income on Borrower Loans 10,702 (293 ) 10,409 27 10,436 Interest Expense on Notes (9,494 ) (9,494 ) (70 ) (9,564 ) Net Interest Income 1,208 (293 ) 915 (43 ) 872 Change in Fair Value on Borrower Loans, Loans Held for Sale and Notes, net 91 - 91 (64 ) 27 Total Net Revenue 17,377 - 17,377 916 18,293 Cost of Revenue Cost of Services (767 ) 767 - - - Provision for repurchase and indemnification obligation (54 ) 54 - - - (821 ) 821 - - - Expenses Compensation and benefits 5,277 (5,277 ) - - - Marketing and advertising 9,040 (9,040 ) - - - Depreciation and amortization 380 (380 ) - - - Professional services 364 (364 ) - - - Facilities and maintenance 621 (621 ) - - Loss on impairment - - - - - Other 877 (877 ) - - - Origination and Servicing - 2,773 2,773 41 2,814 Sales and Marketing - 9,392 9,392 - 9,392 General and Administrative - 5,215 5,215 158 5,373 Total Expenses 16,559 821 17,380 199 17,579 Other income - - - - - Total Net Income $ (3 ) $ - $ (3 ) $ 717 $ 714 *See note 1 for a description of the reclassifications. Condensed Consolidated Statement of Operations – Six months ended June 30, 2014 As previously reported Reclassifications* As reclassified Adjustments As corrected Revenue Operating Revenue Transaction Fees, Net $ 25,149 $ (660 ) 24,489 $ (145 ) $ 24,344 Rebates and Promotions (999 ) 999 - - - Servicing Fees, Net - 182 182 930 1,112 Other Revenue 965 - 965 196 1,161 Total Operating Revenue 25,115 521 25,636 981 26,617 Interest Income on Borrower Loans 20,812 (522 ) 20,290 81 20,371 Interest Expense on Notes (18,763 ) (18,763 ) (224 ) (18,987 ) Net Interest Income 2,049 (522 ) 1,527 (143 ) 1,384 Change in Fair Value on Borrower Loans, Loans Held for Sale and Notes, net 389 - 389 (118 ) 271 Total Net Revenue 27,553 (1 ) 27,552 720 28,272 Cost of Revenue Cost of Services (1,293 ) 1,293 - - - Provision for repurchase and indemnification obligation (116 ) 116 - - - (1,409 ) 1,409 - - - Expenses Compensation and benefits 9,219 (9,219 ) - - - Marketing and advertising 15,026 (15,026 ) - - - Depreciation and amortization 743 (743 ) - - - Professional services 541 (541 ) - - - Facilities and maintenance 1,066 (1,066 ) - - Loss on impairment 215 (215 ) - - - Other 1,503 (1,503 ) - - - Origination and Servicing - 4,904 4,904 201 5,105 Sales and Marketing - 15,816 15,816 10 15,826 General and Administrative - 9,001 9,001 344 9,345 Total Expenses 28,313 1,408 29,721 555 30,276 Other income - - - - - Total Net Income $ (2,169 ) $ - $ (2,169 ) $ 165 $ (2,004 ) *See note 1 for a description of the reclassifications. Condensed Consolidated Statements of Cash Flows – Six months ended June 30, 2014 As previously reported Adjustments As corrected Cash flows from operating activities: Net Loss $ (2,169 ) $ 165 $ (2,004 ) Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes - (271 ) (271 ) Change in Fair Value of Notes (1,350 ) 1,350 - Change in Fair Value of Borrower Loans Receivable 958 (958 ) - Change in Fair Value of Loans Held for Sale 3 (3 ) - Other, Net - 63 63 Depreciation and Amortization 743 48 791 Stock-Based Compensation 500 (10 ) 490 Loss on Impairment of Property and Equipment 215 - 215 Change in Servicing Rights - (974 ) (974 ) Purchase of loans held for sale at fair value - (475,934 ) (475,934 ) Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value - 471,151 471,151 Changes in Operating Assets and Liabilities: - Restricted Cash (2,473 ) (17,874 ) (20,347 ) Accounts Receivable (11 ) (153 ) (164 ) Prepaid and Other Assets (2,162 ) 28 (2,134 ) Accounts Payable and Accrued Liabilities 3,776 (307 ) 3,469 Repurchase liability for unvested stock awards - - - Payable to Investors - 17,550 17,550 Class Action Settlement Liability (2,000 ) - (2,000 ) Net Cash Used in Operating Activities (3,970 ) (6,129 ) (10,099 ) Cash Flows From Investing Activities: Purchase of Borrower Loans Receivable Held at Fair Value (330,464 ) 243,668 (86,796 ) Principal Payment of Borrower Loans Receivable Held at Fair Value 65,648 (7,837 ) 57,811 Proceeds from Sale of Borrower Loans Receivable Held at Fair Value 243,235 (243,235 ) - Repayment of Loans Held for Investment at Fair Value 312 (312 ) - Origination of Loans Held for Investment at Fair Value (111,927 ) 111,927 - Proceeds from sale of Borrower Loans at Fair Value 105,986 (105,986 ) - Purchases of Property and Equipment (1,762 ) 90 (1,672 ) Maturities of Short Term Investments - 1,271 1,271 Purchases of Short Investments - (1,274 ) (1,274 ) Changes in Restricted Cash Related to Investing Activities - (218 ) (218 ) Net Cash Used in Investing Activities (28,972 ) (1,906 ) (30,878 ) Cash Flows from Financing Activities: Proceeds from Issuance of Notes Held at Fair Value 86,713 (35 ) 86,678 Payment of Notes Held at Fair Value (65,646 ) 8,071 (57,575 ) Proceeds from Issuance of Convertible Preferred Stock, net 69,958 - 69,958 Proceeds from Early Exercise of Stock Options 276 1 277 Proceeds from Exercise of Vested Stock Options and Common Stock Warrants 31 83 114 Proceeds from the Excercise of Warrants 85 (85 ) - Repurchase of Restricted Stock (12 ) - (12 ) Net Cash Provided by Financing Activities $ 91,405 $ 8,035 $ 99,440 Net Decrease in Cash and Cash Equivalents 58,463 - 58,463 Cash and Cash Equivalents at Beginning of the Period 18,339 - 18,339 Cash and Cash Equivalents at End of the Period $ 76,802 $ - $ 76,802 |
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 and corrections of other immaterial errors on the interim periods in the three months ended June 30, 2014 (in thousands): Condensed Consolidated Statement of Operations – Three months ended June 30, 2014 As previously reported Reclassifications* As reclassified Adjustments As corrected Revenue Operating Revenue Administration Fee Revenue – Related Party $ 6,898 $ — $ 6,898 $ — $ 6,898 Servicing Income, Net — 109 109 594 703 Other Revenue (155 ) — (155 ) 834 679 Total Operating Revenue 6,743 109 6,852 1,428 8,280 Interest Income on Borrower Loans 10,518 (109 ) 10,409 135 10,544 Interest Expense on Notes (9,494 ) — (9,494 ) (70 ) (9,564 ) Net Interest Income 1,024 (109 ) 915 65 980 Change in Fair Value on Borrower Loans, Loans Held for Sale and Notes, net 91 — 91 (64 ) 27 Total Net Revenue 7,858 — 7,858 1,429 9,287 Cost of Revenue Cost of Services (654 ) 654 — — — Provision for repurchase and indemnification obligation (56 ) 56 — — — (710 ) 710 — — — Expenses Servicing — 963 963 (605 ) 358 Administration Fee – Related Party 4,234 — 4,234 1,302 5,536 Depreciation and Amortization 253 (253 ) — — — Professional Services — — — — — Other Operating Expenses 77 (77 ) — — — General and Administration — 77 77 4 81 Total Expenses 4,564 710 5,274 701 5,975 Total Net Income $ 2,584 $ — $ 2,584 $ 728 $ 3,312 *See note 1 for further details on the reclassifications. Condensed Consolidated Statement of Operations – Six months ended June 30, 2014 As previously reported Reclassifications* As reclassified Adjustments As corrected Revenue Operating Revenue Administration Fee Revenue – Related Party $ 10,951 $ — $ 10,951 $ — $ 10,951 Servicing Income, Net — 279 279 847 1,126 Other Revenue 201 - 201 776 977 Total Operating Revenue 11,152 279 11,431 1,623 13,054 Interest Income on Borrower Loans 20,568 (278 ) 20,290 222 20,512 Interest Expense on Notes (18,763 ) - (18,763 ) (223 ) (18,986 ) Net Interest Income 1,805 (278 ) 1,527 (1 ) 1,526 Change in Fair Value on Borrower Loans, Loans Held for Sale and Notes, net 389 (1 ) 388 (36 ) 352 Total Net Revenue 13,346 - 13,346 1,586 14,932 Cost of Revenue Cost of Services (1,051 ) 1,051 — — — Provision for repurchase and indemnification obligation (118 ) 118 — — — (1,169 ) 1,169 — — — Expenses Servicing — 1,656 1,656 (901 ) 755 Administration Fee – Related Party 6,840 — 6,840 2,191 9,031 Depreciation and Amortization 487 (487 ) — — — Professional Services 12 (12 ) — — — Other Operating Expenses 166 (166 ) — — — General and Administration — 178 178 8 186 Total Expenses 7,505 1,169 8,674 1,298 9,972 Total Net Income $ 4,672 $ — $ 4,672 $ 288 $ 4,960 *See note 1 for further details on the reclassifications. Condensed Consolidated Statements of Cash Flows – Six months ended June 30, 2014 As previously reported Adjustments As corrected Cash flows from operating activities: Net Income $ 4,672 $ 288 $ 4,960 Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: Change in Fair Value of Notes (1,350 ) 1,350 - Change in Fair Value of Borrower Loans Receivable 958 (958 ) - Change in Fair Value of Loans Held for Sale 3 (3 ) - Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes - (352 ) (352 ) Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes - 2 2 Depreciation and Amortization 487 52 539 Change in Servicing Rights - (998 ) (998 ) Purchase of Loans Held for Sale at Fair Value - (475,934 ) (475,934 ) Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value - 471,151 471,151 Changes in Operating Assets and Liabilities: - Restricted Cash (1,971 ) (17,972 ) (19,943 ) Other Assets (5 ) 9 4 Accounts Payable and Accrued Liabilities 158 369 527 Payable to Investors - 16,995 16,995 Net Related Party Payable (31 ) (218 ) (249 ) Net Cash Used in Operating Activities 2,921 (6,219 ) (3,298 ) Cash Flows From Investing Activities: Purchase of Borrower Loans Receivable Held at Fair Value (330,464 ) 243,749 (86,715 ) Principal Payment of Borrower Loans Receivable Held at Fair Value 65,648 (7,837 ) 57,811 Proceeds from Sale of Borrower Loans Receivable Held at Fair Value 243,235 (243,235 ) - Repayment of Loans Held for Investment at Fair Value 312 (312 ) - Origination of Loans Held for Investment at Fair Value (111,927 ) 111,927 - Proceeds from Sale of Borrower Loans at Fair Value 105,986 (105,986 ) - Maturities of Short Term Investments - 1,271 1,271 Purchases of Property and Equipment - (1,274 ) (1,274 ) Purchases of Property and Equipment (553 ) - (553 ) Changes in Restricted Cash Related to Investing Activities - (121 ) (121 ) Net Cash Used in Investing Activities (27,763 ) (1,818 ) (29,581 ) Cash Flows from Financing Activities: Proceeds from Issuance of Notes Held at Fair Value 86,713 (34 ) 86,679 Payment of Notes Held at Fair Value (65,646 ) 8,071 (57,575 ) Net Cash Provided by Financing Activities 21,067 8,037 29,104 Net Decrease in Cash and Cash Equivalents (3,775 ) - (3,775 ) Cash and Cash Equivalents at Beginning of the Period 5,789 - 5,789 Cash and Cash Equivalents at End of the Period $ 2,014 $ - $ 2,014 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Significant Accounting Policies [Line Items] | |
Increase in net servicing asset | $ 546 |
Decrease in net servicing liabilities | (29) |
Prosper Funding LLC [Member] | |
Significant Accounting Policies [Line Items] | |
Increase in net servicing asset | 399 |
Decrease in net servicing liabilities | (29) |
Change in Accounting Principle [Member] | |
Significant Accounting Policies [Line Items] | |
Increase/ (Decrease) to retained earnings | (575) |
Change in Accounting Principle [Member] | Prosper Funding LLC [Member] | |
Significant Accounting Policies [Line Items] | |
Increase/ (Decrease) to retained earnings | $ 428 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 26,511 | $ 19,849 |
Less accumulated depreciation and amortization | (8,463) | (5,425) |
Total property and equipment, net | 18,048 | 14,424 |
Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and amortization | (4,734) | (2,917) |
Total property and equipment, net | 5,796 | 1,125 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 6,585 | 3,824 |
Internal-use Software and Website Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 11,047 | 4,486 |
Internal-use Software and Website Development Costs [Member] | Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 10,530 | 4,042 |
Office Equipment and Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 2,062 | 1,904 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 5,570 | 5,274 |
Assets Not Yet Placed in Service [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 1,247 | $ 4,361 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 1,363,000 | $ 390,000 | $ 3,117,000 | $ 791,000 |
Recorded internal-use software and website development impairment charges | 215,000 | |||
Prosper Funding LLC [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | 676,000 | 262,000 | 1,896,000 | 539,000 |
Internal-use Software and Website Development Costs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Capitalized internal-use software and website development costs | $ 2,079,000 | $ 440,000 | 3,935,000 | 808,000 |
Recorded internal-use software and website development impairment charges | $ 0 | $ 215,000 |
Borrower Loans, Loans Held fo36
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Aggregate Principal Balances Outstanding and Fair Values of Borrower Loans, Notes and Loans Held for Sale (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrower Loans, at Fair Value | $ 284,200 | $ 273,243 |
Notes at Fair Value | (284,628) | (273,783) |
Loans Held for Sale, at Fair Value | 1,431 | 8,463 |
Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrower Loans, at Fair Value | 284,200 | 273,243 |
Notes at Fair Value | (284,628) | (273,783) |
Loans Held for Sale, at Fair Value | 1,431 | 8,463 |
Notes [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | (284,628) | (272,267) |
Fair value adjustments | (1,516) | |
Notes at Fair Value | (284,628) | (273,783) |
Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | (284,628) | (272,270) |
Fair value adjustments | (1,513) | |
Notes at Fair Value | (284,628) | (273,783) |
Borrower Loans [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | 280,862 | 268,598 |
Fair value adjustments | 3,338 | 4,645 |
Borrower Loans, at Fair Value | 284,200 | 273,243 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | 280,862 | 268,593 |
Fair value adjustments | 3,338 | 4,650 |
Borrower Loans, at Fair Value | 284,200 | 273,243 |
Loans Held for Sale [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value adjustments | 15 | 168 |
Aggregate principal balance outstanding | 1,416 | 8,295 |
Loans Held for Sale, at Fair Value | 1,431 | 8,463 |
Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value adjustments | 15 | 168 |
Aggregate principal balance outstanding | 1,416 | 8,295 |
Loans Held for Sale, at Fair Value | $ 1,431 | $ 8,463 |
Borrower Loans, Loans Held fo37
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Borrower loans original maturity term, description | Original terms to maturity of either 36 or 60 months | Original maturities either 36 or 60 months | |
Fixed interest rate, Minimum | 5.32% | 5.77% | |
Fixed interest rate, Maximum | 33.04% | 33.04% | |
Loans maturity date | Jun. 30, 2020 | Dec. 31, 2019 | |
Loss related to credit risks on borrower loans | $ 900,000 | $ 2,100,000 | |
Minimum number of days for which loans originated were delinquent | 90 days | 90 days | |
Aggregate principal amount of loans originated | 1,500,000 | $ 1,500,000 | $ 1,700,000 |
Non accrual status past due date | 120 days | ||
Fair value of loans originated | 600,000 | $ 600,000 | 600,000 |
Borrower Loans receivable | 300,000 | $ 300,000 | $ 0 |
Prosper Funding LLC [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Borrower loans original maturity term, description | Original terms to maturity of either 36 or 60 months | Original maturities of either 36 or 60 months | |
Fixed interest rate, Minimum | 5.32% | 5.77% | |
Fixed interest rate, Maximum | 33.04% | 33.04% | |
Loans maturity date | Jun. 30, 2020 | Dec. 31, 2019 | |
Loss related to credit risks on borrower loans | 900,000 | $ 2,100,000 | |
Minimum number of days for which loans originated were delinquent | 90 days | 90 days | |
Aggregate principal amount of loans originated | 1,500,000 | $ 1,500,000 | $ 1,500,000 |
Non accrual status past due date | 120 days | ||
Fair value of loans originated | 600,000 | $ 600,000 | 140,000 |
Borrower Loans receivable | $ 300,000 | $ 300,000 | $ 0 |
Borrower Loans, Loans Held Fo38
Borrower Loans, Loans Held For Sale and Notes Held at Fair Value - Quantitative Information about the Significant Unobservable Inputs (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Minimum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 2.70% | 3.30% |
Default rate | 2.80% | 2.60% |
Minimum [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 2.70% | 3.20% |
Default rate | 2.80% | 2.60% |
Maximum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 11.00% | 10.60% |
Default rate | 19.80% | 19.70% |
Maximum [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 11.00% | 10.60% |
Default rate | 19.80% | 19.70% |
Borrower Loans, Loans Held fo39
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Fair Value Assumptions for Borrower Loans, Loans Held for Sale and Notes (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | |
Discount rate assumption [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | [1] | 4.65% |
Discount rate assumption [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | [1] | 4.65% |
Discount rate assumption [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | [1] | 4.65% |
Discount rate assumption [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | [1] | 4.65% |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | $ 281,481 | |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 281,481 | |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 282,480 | |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 282,480 | |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 278,420 | |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 278,420 | |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 279,414 | |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 279,414 | |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 287,861 | |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 287,861 | |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 288,870 | |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 288,870 | |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 291,185 | |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 291,185 | |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 292,199 | |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | $ 292,199 | |
Default rate assumption [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | [1] | 12.23% |
Default rate assumption [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Default rate assumption (in hundredths) | [1] | 12.23% |
Default rate assumption [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | [1] | 12.23% |
Default rate assumption [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Default rate assumption (in hundredths) | [1] | 12.23% |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | $ 281,152 | |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 281,152 | |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 282,159 | |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 282,159 | |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 277,760 | |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 277,760 | |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 278,769 | |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 278,769 | |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 288,116 | |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 288,116 | |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 289,117 | |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 289,117 | |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 291,611 | |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 291,611 | |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 292,609 | |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans and Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | $ 292,609 | |
[1] | Represents weighted average assumptions considering all credit grades. |
Borrower Loans, Loans Held fo40
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Changes in Borrower Loans, Loans Held for Sale and Notes, which are Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Total | $ 1,202 | $ 3,074 | $ 7,923 | $ 2,093 |
Purchase of Borrower Loans/Issuance of Notes, Total | 861,600 | 325,010 | 1,402,436 | 476,051 |
Principal repayments, Total | (112) | (318) | (491) | (366) |
Borrower Loans sold to third parties, Total | (861,574) | (320,633) | (1,408,883) | (471,022) |
Other changes, Total | (208) | (135) | (3) | (2) |
Change in fair value, Total | 95 | 27 | 21 | 271 |
Ending balance, Total | 1,003 | 7,025 | 1,003 | 7,025 |
Prosper Funding LLC [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Total | 1,202 | 3,074 | 7,923 | 2,093 |
Originations, Total | 861,600 | 325,010 | 1,402,436 | 475,970 |
Principal repayments, Total | (111) | (318) | (491) | (366) |
Borrower Loans sold to third parties, Total | (861,574) | (320,633) | (1,408,883) | (471,022) |
Other changes, Total | (208) | (135) | (3) | (2) |
Change in fair value, Total | 94 | 27 | 21 | 352 |
Ending balance, Total | 1,003 | 7,025 | 1,003 | 7,025 |
Notes [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Liabilities | (280,801) | (245,335) | (273,783) | (234,218) |
Purchase of Borrower Loans/Issuance of Notes, Liabilities | (46,779) | (42,769) | (94,575) | (86,679) |
Principal repayments, Liabilities | 37,440 | 29,273 | 73,509 | 57,575 |
Other changes, Liabilities | (71) | (84) | 136 | 89 |
Change in fair value, Liabilities | 5,583 | 4,972 | 10,085 | 9,290 |
Ending balance, Liabilities | (284,628) | (253,943) | (284,628) | (253,943) |
Notes [Member] | Prosper Funding LLC [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Liabilities | (280,801) | (245,335) | (273,783) | (234,218) |
Originations, Liabilities | (46,779) | (42,769) | (94,575) | (86,679) |
Principal repayments, Liabilities | 37,441 | 29,273 | 73,509 | 57,575 |
Other changes, Liabilities | (71) | (84) | 136 | 89 |
Change in fair value, Liabilities | 5,582 | 4,972 | 10,085 | 9,290 |
Ending balance, Liabilities | (284,628) | (253,943) | (284,628) | (253,943) |
Borrower Loans [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Assets | 280,404 | 244,927 | 273,243 | 233,105 |
Purchase of Borrower Loans/Issuance of Notes, Assets | 46,805 | 42,529 | 94,512 | 86,796 |
Principal repayments, Assets | (37,395) | (29,479) | (73,457) | (57,811) |
Other changes, Assets | (136) | (61) | (130) | (100) |
Change in fair value, Assets | (5,478) | (4,945) | (9,968) | (9,019) |
Ending balance, Assets | 284,200 | 252,971 | 284,200 | 252,971 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Assets | 280,404 | 244,927 | 273,243 | 233,105 |
Originations, Assets | 46,805 | 42,529 | 94,512 | 86,715 |
Principal repayments, Assets | (37,395) | (29,479) | (73,457) | (57,811) |
Other changes, Assets | (136) | (61) | (130) | (100) |
Change in fair value, Assets | (5,478) | (4,945) | (9,968) | (8,938) |
Ending balance, Assets | 284,200 | 252,971 | 284,200 | 252,971 |
Loans Held for Sale [Member] | ||||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||||
Beginning balance, Assets | 1,599 | 3,482 | 8,463 | 3,206 |
Purchase of Borrower Loans/Issuance of Notes, Assets | 861,574 | 325,250 | 1,402,499 | 475,934 |
Principal repayments, Assets | (157) | (112) | (543) | (130) |
Borrower Loans sold to third parties, Assets | (861,574) | (320,633) | (1,408,883) | (471,022) |
Other changes, Assets | (1) | 10 | (9) | 9 |
Change in fair value, Assets | (10) | (96) | ||
Ending balance, Assets | 1,431 | 7,997 | 1,431 | 7,997 |
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 | 1,599 | 3,482 | 8,463 | 3,206 |
Originations, Assets | 861,574 | 325,250 | 1,402,499 | 475,934 |
Principal repayments, Assets | (157) | (112) | (543) | (130) |
Borrower Loans sold to third parties, Assets | (861,574) | (320,633) | (1,408,883) | (471,022) |
Other changes, Assets | (1) | 10 | (9) | 9 |
Change in fair value, Assets | (10) | (96) | ||
Ending balance, Assets | $ 1,431 | $ 7,997 | $ 1,431 | $ 7,997 |
Loan Servicing Assets and Lia41
Loan Servicing Assets and Liabilities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Servicing Assets And Liabilities Fair Value [Line Items] | |||||
Gain on sales of whole loans | $ 3.7 | $ 0.8 | $ 5.6 | $ 1.1 | |
Borrower loans original maturity term, description | Original terms to maturity of either 36 or 60 months | Original maturities either 36 or 60 months | |||
Fixed interest rate, Minimum | 5.32% | 5.77% | |||
Fixed interest rate, Maximum | 33.04% | 33.04% | |||
Loans maturity date | Jun. 30, 2020 | Dec. 31, 2019 | |||
Prosper Funding LLC [Member] | |||||
Servicing Assets And Liabilities Fair Value [Line Items] | |||||
Gain on sales of whole loans | 3.7 | $ 0.8 | $ 5.6 | $ 1.1 | |
Borrower loans original maturity term, description | Original terms to maturity of either 36 or 60 months | Original maturities of either 36 or 60 months | |||
Fixed interest rate, Minimum | 5.32% | 5.77% | |||
Fixed interest rate, Maximum | 33.04% | 33.04% | |||
Loans maturity date | Jun. 30, 2020 | Dec. 31, 2019 | |||
Borrower Loans [Member] | |||||
Servicing Assets And Liabilities Fair Value [Line Items] | |||||
Outstanding principle | 2,393 | $ 2,393 | $ 1,306 | ||
Borrower loans original maturity term, description | Original terms of either 36 or 60 months | Original terms of either 36 or 60 months | |||
Fixed interest rate, Minimum | 5.32% | 6.05% | |||
Fixed interest rate, Maximum | 31.90% | 31.34% | |||
Loans maturity date | Jun. 30, 2020 | Dec. 31, 2019 | |||
Debt instrument, Description | As of June 30, 2015, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $2,393 million, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 31.90% and various maturity dates through June 2020. At December 31, 2014, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $1,306 million, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and various maturity dates through December 2019. The fair value of the loan servicing assets and liabilities is determined using a discounted cash flow model that includes assumptions of the market servicing rate, the default rate and discount rate as important inputs. | ||||
Borrower Loans [Member] | Prosper Funding LLC [Member] | |||||
Servicing Assets And Liabilities Fair Value [Line Items] | |||||
Outstanding principle | $ 2,078 | $ 2,078 | $ 1,045 | ||
Borrower loans original maturity term, description | Original terms of either 36 or 60 months | Original terms of either 36 or 60 months | |||
Fixed interest rate, Minimum | 5.32% | 6.05% | |||
Fixed interest rate, Maximum | 31.90% | 31.34% | |||
Loans maturity date | Jun. 30, 2020 | Dec. 31, 2019 | |||
Debt instrument, Description | At June 30, 2015, Borrower Loans that were sold, but for which Prosper Funding retained servicing rights had a total outstanding principal balance of $2,078 million, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 5.32% to 31.90% and various maturity dates through June 2020. At December 31, 2014, Borrower Loans that were sold, but for which Prosper Funding retained servicing rights had a total outstanding principal balance of $1,045 million, original terms of either 36 or 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and various maturity dates through December 2019. The fair value of the loan servicing assets and liabilities is determined using a discounted cash flow model that includes assumptions of the market servicing rate, the default rate and discount rate as important inputs. |
Loan Servicing Assets and Lia42
Loan Servicing Assets and Liabilities - Significant Unobservable Inputs (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate | 0.625% | |
Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate | 0.625% | |
Minimum [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 15.00% | 15.00% |
Default rate | 2.00% | 2.60% |
Market servicing rate | 0.625% | |
Minimum [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 15.00% | 15.00% |
Default rate | 2.00% | 2.60% |
Market servicing rate | 0.625% | |
Maximum [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 25.00% | 25.00% |
Default rate | 20.90% | 26.30% |
Market servicing rate | 0.70% | |
Maximum [Member] | Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 25.00% | 25.00% |
Default rate | 20.90% | 26.30% |
Market servicing rate | 0.70% |
Loan Servicing Assets and Lia43
Loan Servicing Assets and Liabilities - Schedule of Servicing Assets and Liabilities Measured at Fair Value (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Adjustment to adopt fair value measurement | $ 546 | |
Servicing Liability at Amortized Cost [Roll Forward] | ||
Adjustment to adopt fair value measurement | (29) | |
Prosper Funding LLC [Member] | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Adjustment to adopt fair value measurement | 399 | |
Servicing Liability at Amortized Cost [Roll Forward] | ||
Adjustment to adopt fair value measurement | (29) | |
Loan servicing assets [Member] | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Amortized cost at beginning of period | 4,163 | |
Adjustment to adopt fair value measurement | 546 | |
Fair value at beginning of period | $ 6,034 | 4,709 |
Additions | 3,759 | 5,837 |
Less: Changes in fair value | (1,111) | (1,864) |
Fair Value at end of period | 8,682 | 8,682 |
Loan servicing assets [Member] | Prosper Funding LLC [Member] | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Amortized cost at beginning of period | 3,116 | |
Adjustment to adopt fair value measurement | 399 | |
Fair value at beginning of period | 4,782 | 3,515 |
Additions | 3,759 | 5,837 |
Less: Transfers to PMI | (249) | |
Less: Changes in fair value | (907) | (1,469) |
Fair Value at end of period | 7,634 | 7,634 |
Loan servicing liabilities [Member] | ||
Servicing Liability at Amortized Cost [Roll Forward] | ||
Amortized cost at beginning of the period | 624 | |
Adjustment to adopt fair value measurement | (29) | |
Fair value at beginning of the period | 668 | 595 |
Additions | 39 | 193 |
Less: Changes in fair value | (101) | (182) |
Fair value at end of the period | 606 | 606 |
Loan servicing liabilities [Member] | Prosper Funding LLC [Member] | ||
Servicing Liability at Amortized Cost [Roll Forward] | ||
Amortized cost at beginning of the period | 624 | |
Adjustment to adopt fair value measurement | (29) | |
Fair value at beginning of the period | 668 | 595 |
Additions | 39 | 193 |
Less: Changes in fair value | (101) | (182) |
Fair value at end of the period | $ 606 | $ 606 |
Loan Servicing Assets and Lia44
Loan Servicing Assets and Liabilities - Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities (Details) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Loan servicing assets [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.625% |
Resulting fair value from: | |
Market servicing rate increase to 0.65% | $ 8,041 |
Market servicing rate decrease to 0.60% | 9,324 |
100 basis point increase | 8,529 |
100 basis point decrease | $ 8,837 |
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 | 0.625% |
Resulting fair value from: | |
Market servicing rate increase to 0.65% | $ 7,070 |
Market servicing rate decrease to 0.60% | 8,199 |
100 basis point increase | 7,499 |
100 basis point decrease | $ 7,770 |
Weighted average default assumptions | 13.00% |
Loan servicing liabilities [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.625% |
Resulting fair value from: | |
Market servicing rate increase to 0.65% | $ (667) |
Market servicing rate decrease to 0.60% | (546) |
100 basis point increase | (606) |
100 basis point decrease | $ (607) |
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 | 0.625% |
Resulting fair value from: | |
Market servicing rate increase to 0.65% | $ (667) |
Market servicing rate decrease to 0.60% | (546) |
100 basis point increase | (606) |
100 basis point decrease | $ (607) |
Weighted average default assumptions | 13.00% |
Loan Servicing Assets and Lia45
Loan Servicing Assets and Liabilities - Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities (Parenthetical) (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Servicing rate increase | 0.65% |
Servicing rate decrease | 0.60% |
Default rate increase | 1.00% |
Default rate decrease | 1.00% |
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 | 1.00% |
Default rate decrease | 1.00% |
American HealthCare Lending A46
American HealthCare Lending Acquisition - Additional Information (Details) - American HealthCare Lending, LLC [Member] - USD ($) | Jan. 23, 2015 | Jun. 30, 2015 | Jun. 30, 2015 |
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 20,200,000 | $ 800,000 | |
Business Acquisition, Effective Date of Acquisition | Jan. 23, 2015 | ||
Business Acquisition, Name of Acquired Entity | American HealthCare Lending LLC | ||
Net revenue | $ 1,500,000 | ||
Net earnings | 1,600,000 | ||
Acquisition expenses | $ 0 | 200,000 | |
Amortization of intangible assets | $ 242,000 | $ 338,000 | |
Customer Relationships [member] | |||
Business Acquisition [Line Items] | |||
Remaining Useful Life (In Years) | 10 years | ||
Technology [Member] | |||
Business Acquisition [Line Items] | |||
Remaining Useful Life (In Years) | 3 years | ||
Brand Name [Member] | |||
Business Acquisition [Line Items] | |||
Remaining Useful Life (In Years) | 1 year |
American HealthCare Lending A47
American HealthCare Lending Acquisition - Preliminary Purchase Price Allocation (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Assets: | |
Goodwill | $ 16,825 |
American HealthCare Lending, LLC [Member] | |
Assets: | |
Cash | 1,219 |
Accounts Receivable | 147 |
Property, equipment and software | 6 |
Other assets | 63 |
Identified intangible assets | 3,520 |
Goodwill | 16,825 |
Liabilities: | |
Accrued expenses and other liabilities | 708 |
Total purchase consideration | $ 21,072 |
American HealthCare Lending A48
American HealthCare Lending Acquisition - Schedule of Intangible Assets (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Acquired Finite Lived Intangible Assets [Line Items] | |
Net Carrying Value | $ 3,182 |
American HealthCare Lending, LLC [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Gross Carrying Value | 3,520 |
Accumulated Amortization | (338) |
Net Carrying Value | 3,182 |
American HealthCare Lending, LLC [Member] | Customer Relationships [member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Gross Carrying Value | 2,650 |
Accumulated Amortization | (201) |
Net Carrying Value | $ 2,449 |
Remaining Useful Life (In Years) | 10 years |
American HealthCare Lending, LLC [Member] | Technology [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Gross Carrying Value | $ 810 |
Accumulated Amortization | (112) |
Net Carrying Value | $ 698 |
Remaining Useful Life (In Years) | 3 years |
American HealthCare Lending, LLC [Member] | Brand Name [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Gross Carrying Value | $ 60 |
Accumulated Amortization | (25) |
Net Carrying Value | $ 35 |
Remaining Useful Life (In Years) | 1 year |
Net Income (Loss) Per Share - B
Net Income (Loss) Per Share - Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator [Abstract] | ||||
Net Income (Loss) | $ (6,201) | $ 714 | $ (13,477) | $ (2,004) |
Less: Net Income Allocated to Participating Securities | (533) | |||
Net Income (Loss) Attributable to Common Stockholders | $ (6,201) | $ 181 | $ (13,477) | $ (2,004) |
Denominator [Abstract] | ||||
Weighted average shares used in computing basic net income (loss) per share | 11,122,497 | 8,617,887 | 10,833,635 | 8,337,853 |
Weighted average shares used in computing diluted net income (loss) per share | 11,122,497 | 16,437,323 | 10,833,635 | 8,337,853 |
Basic net income (loss) per share | $ (0.56) | $ 0.02 | $ (1.24) | $ (0.24) |
Diluted net income (loss) per share | $ (0.56) | $ 0.01 | $ (1.24) | $ (0.24) |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Common Stock Equivalents Excluded from Computation of Diluted Net Income (Loss) Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
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) | 45,668,076 | 32,155,022 | 45,164,178 | 40,896,886 |
Convertible Preferred Stock 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) | 35,477,685 | 32,155,022 | 35,477,685 | 32,155,022 |
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) | 6,982,320 | 6,478,422 | 3,633,509 | |
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) | 3,084,604 | 3,084,604 | 4,959,917 | |
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) | 123,467 | 123,467 | 148,438 |
Convertible Preferred Stock a51
Convertible Preferred Stock and Stockholders' Deficit - Additional Information (Details) | Jun. 12, 2015USD ($)$ / sharesshares | Apr. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2015USD ($)Times$ / sharesshares | Jun. 30, 2014USD ($) | Dec. 31, 2014$ / sharesshares |
Class of Stock [Line Items] | |||||
Proceeds from Issuance of Convertible Preferred Stock, Net | $ | $ 164,793,000 | $ 69,958,000 | |||
Dividends | $ | $ 0 | ||||
Common and preferred stock, shares authorized (in shares) | 89,542,900 | ||||
Common stock, shares authorized (in shares) | 54,065,215 | 54,065,215 | 47,928,883 | ||
Preferred stock, shares authorized (in shares) | 35,477,685 | 35,477,685 | 32,155,022 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||
Common stock, shares issued (in shares) | 14,975,613 | 14,448,700 | |||
Common stock, shares outstanding (in shares) | 14,008,239 | 14,261,513 | |||
Recognized compensation cost relating to common stock | $ | $ 5,700,000 | ||||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Aggregate price for repurchase of common stock | $ | $ 4,000 | ||||
Exercise of stock options (in shares) | 438,795 | ||||
Proceeds from Exercise of Vested Stock Options | $ | $ 660,000 | ||||
Exercise of nonvested stock options (in shares) | 12,709 | ||||
Unvested restricted stock outstanding (in shares) | 3,084,604 | 4,114,269 | |||
Stock repurchase upon termination of employment (in shares) | 30,341 | ||||
Warrants Issued and Outstanding [Member] | |||||
Class of Stock [Line Items] | |||||
Shares issued (in shares) | 35,678 | ||||
Exercise of warrants aggregate proceeds | $ | $ 116,000 | ||||
Origination and Servicing [Member] | |||||
Class of Stock [Line Items] | |||||
Recognized compensation cost relating to common stock | $ | 130,000 | ||||
Sales and Marketing [Member] | |||||
Class of Stock [Line Items] | |||||
Recognized compensation cost relating to common stock | $ | 40,000 | ||||
General and Administrative [Member] | |||||
Class of Stock [Line Items] | |||||
Recognized compensation cost relating to common stock | $ | $ 5,500,000 | ||||
Executives [Member] | |||||
Class of Stock [Line Items] | |||||
Stock repurchased during period, shares | 721,419 | ||||
Aggregate price for repurchase of common stock | $ | $ 24,900,000 | ||||
Employees [Member] | |||||
Class of Stock [Line Items] | |||||
Stock repurchased during period, shares | 777,025 | ||||
Stock repurchased during period, price per share | $ / shares | $ 34.54 | ||||
Aggregate price for repurchase of common stock | $ | $ 26,800,000 | ||||
Series D Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Shares issued (in shares) | 4,777,728 | ||||
Convertible preferred stock, price per share (in dollars per share) | $ / shares | $ 34.54 | ||||
Proceeds from Issuance of Convertible Preferred Stock, Net | $ | $ 164,800,000 | ||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 34.54 | ||||
Preferred stock, shares authorized (in shares) | 4,777,728 | ||||
Series A Convertible Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 1.44 | ||||
Number of times shareholders are entitled to receive original issue price | Times | 3 | ||||
Preferred stock, shares authorized (in shares) | 13,711,644 | ||||
Series A 1 [Member] | |||||
Class of Stock [Line Items] | |||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 10 | ||||
Preferred stock, shares authorized (in shares) | 4,952,183 | ||||
Series B Convertible Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 3.02 | ||||
Preferred stock, shares authorized (in shares) | 7,155,176 | ||||
Series C Convertible Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 14.36 | ||||
Preferred stock, shares authorized (in shares) | 4,880,954 |
Convertible Preferred Stock a52
Convertible Preferred Stock and Stockholders' Deficit - Summary of Shares Authorized, Issued, Outstanding, Par Value and Liquidation Preference of Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2015 | Apr. 30, 2015 | Dec. 31, 2014 |
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) | 35,477,685 | 35,477,685 | 32,155,022 |
Convertible preferred stock, shares outstanding (in shares) | 35,477,685 | 30,699,957 | |
Convertible preferred stock, shares issued (in shares) | 35,477,685 | 30,699,957 | |
Convertible preferred stock, liquidation preference | $ 325,952 | $ 160,952 | |
Series A Convertible 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) | 13,711,644 | ||
Convertible preferred stock, shares outstanding (in shares) | 13,711,644 | ||
Convertible preferred stock, shares 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) | 4,952,183 | ||
Convertible preferred stock, shares outstanding (in shares) | 4,952,183 | ||
Convertible preferred stock, shares issued (in shares) | 4,952,183 | ||
Convertible preferred stock, liquidation preference | $ 49,522 | ||
Series B Convertible 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) | 7,155,176 | ||
Convertible preferred stock, shares outstanding (in shares) | 7,155,176 | ||
Convertible preferred stock, shares issued (in shares) | 7,155,176 | ||
Convertible preferred stock, liquidation preference | $ 21,581 | ||
Series C Convertible 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 (in shares) | 4,880,954 | ||
Convertible preferred stock, shares issued (in shares) | 4,880,954 | ||
Convertible preferred stock, liquidation preference | $ 70,075 | ||
Series D 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) | 4,777,728 | ||
Convertible preferred stock, shares outstanding (in shares) | 4,777,728 | ||
Convertible preferred stock, shares issued (in shares) | 4,777,728 | ||
Convertible preferred stock, liquidation preference | $ 165,000 |
Stock Option Plan and Compens53
Stock Option Plan and Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
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 | |||
Unrecognized cost of unvested share-based compensation awards. | $ 0 | $ 0 | ||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 90,000 | |||
Unamortized expense related to unvested stock-based awards | $ 34,800,000 | $ 34,800,000 | ||
Remaining weighted average vesting period | 3 years 3 months 18 days | |||
Internal-use Software and Website Development Costs [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-Based Compensation Expense | $ 175,000 | $ 5,000 | $ 297,000 | $ 10,000 |
Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares Issued, Price Per Share | $ 18.11 | $ 18.11 | ||
Restricted Stock | Vesting 2016 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.33% | |||
Restricted Stock | Vesting 2017 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.33% | |||
Restricted Stock | Vesting 2018 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.33% | |||
2005 Stock Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options made available in pool (in shares) | 15,195,255 | 15,195,255 | ||
Options Issued and Outstanding, Options granted | 2,919,414 | |||
Weighted average grant fair value | $ 14.72 | $ 14.72 | ||
Stock options estimated aggregate fair value | $ 43,000,000 | |||
2005 Stock Plan [Member] | Stock Options Issued and Outstanding [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares available for grant under the plan | 0 | 0 | ||
2015 Stock Option Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options made available in pool (in shares) | 2,080,323 | 2,080,323 | ||
Shares available for grant under the plan | 1,633,723 | 1,633,723 |
Stock Option Plan and Compens54
Stock Option Plan and Compensation - Schedule of Activity of Options that were Early Exercised under the Plan (Details) - 6 months ended Jun. 30, 2015 - Early Exercised Stock Options Under 2005 Stock Option Plan [Member] - $ / shares | Total |
Early exercised options, unvested [Roll Forward] | |
Beginning balance | 4,112,269 |
Exercise of non-vested stock options | 12,709 |
Repurchase of restricted stock | (30,341) |
Restricted stock vested | (1,010,033) |
Ending balance | 3,084,604 |
Weighted average exercise price [Abstract] | |
Weighted-Average Exercise Price, Beginning balance | $ 0.25 |
Exercise of non-vested stock options | 3.07 |
Repurchase of restricted stock | 0.13 |
Restricted stock vested | 0.23 |
Weighted-Average Exercise Price, Ending balance | $ 0.26 |
Stock Option Plan and Compens55
Stock Option Plan and Compensation - Additional Information Regarding Unvested Early exercised stock options outstanding (Details) - Jun. 30, 2015 - $ / shares | Total |
$0.10 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 0.10 |
Number Outstanding | 2,672,797 |
Weighted Avg. Remaining Life | 1 year 7 months 21 days |
Weighted Avg. Exercise Price | $ 0.10 |
$0.57 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 0.57 |
Number Outstanding | 351,563 |
Weighted Avg. Remaining Life | 2 years 8 months 16 days |
Weighted Avg. Exercise Price | $ 0.57 |
$5.65 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 5.65 |
Number Outstanding | 60,244 |
Weighted Avg. Remaining Life | 3 years 1 month 6 days |
Weighted Avg. Exercise Price | $ 5.65 |
$0.10 - $5.65 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 0.10 |
Range of Exercise Prices, Maximum | $ 5.65 |
Number Outstanding | 3,084,604 |
Weighted Avg. Remaining Life | 1 year 9 months 15 days |
Weighted Avg. Exercise Price | $ 0.26 |
Stock Option Plan and Compens56
Stock Option Plan and Compensation - Summarized Option Activity under Option Plan (Details) - Jun. 30, 2015 - 2005 Stock Plan and 2015 Stock Option Plan [Member] - $ / shares | Total |
Options Issued and Outstanding [Roll Forward] | |
Options Issued and Outstanding, Beginning Balance | 4,994,998 |
Options Issued and Outstanding, Options granted | 2,919,414 |
Options Issued and Outstanding, Options exercised - vested | (426,086) |
Options Issued and Outstanding, Options exercised - nonvested | (12,709) |
Options Issued and Outstanding, Options forfeited | (570,281) |
Options Issued and Outstanding, Ending balance | 6,905,336 |
Options Issued and Outstanding, Options vested and exercisable at June 30, 2015 | 5,798,746 |
Weighted-Average Exercise Price [Roll Forward] | |
Weighted-Average Exercise Price, Beginning balance | $ 1.85 |
Weighted-Average Exercise Price, Options granted | 19.52 |
Weighted-Average Exercise Price, Options exercised - vested | 1.45 |
Weighted-Average Exercise Price, Options exercised - nonvested | 3.07 |
Weighted-Average Exercise Price, Options forfeited | 2.79 |
Weighted-Average Exercise Price, Ending balance | 9.26 |
Weighted-Average Exercise Price, Options vested and exercisable at June 30, 2015 | $ 8.30 |
Stock Option Plan and Compens57
Stock Option Plan and Compensation - Additional Information Regarding Common Stock Options Outstanding (Details) - Jun. 30, 2015 - $ / shares | Total |
$0.10 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 0.10 |
Number Outstanding | 2,672,797 |
Weighted Avg. Remaining Life | 1 year 7 months 21 days |
Weighted Avg. Exercise Price | $ 0.10 |
$0.10 [Member] | Stock Options Issued and Outstanding [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 0.10 |
Number Outstanding | 139,046 |
Weighted Avg. Remaining Life | 8 years 1 month 13 days |
Weighted Avg. Exercise Price | $ 0.10 |
Number Exercisable | 69,939 |
Weighted Avg. Exercise Price | $ 0.10 |
$0.57 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 0.57 |
Number Outstanding | 351,563 |
Weighted Avg. Remaining Life | 2 years 8 months 16 days |
Weighted Avg. Exercise Price | $ 0.57 |
$0.57 [Member] | Stock Options Issued and Outstanding [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 0.57 |
Number Outstanding | 2,612,902 |
Weighted Avg. Remaining Life | 8 years 1 month 10 days |
Weighted Avg. Exercise Price | $ 0.57 |
Number Exercisable | 2,133,049 |
Weighted Avg. Exercise Price | $ 0.57 |
$1.20 [Member] | Stock Options Issued and Outstanding [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 1.20 |
Number Outstanding | 60,889 |
Weighted Avg. Remaining Life | 6 years 2 months 12 days |
Weighted Avg. Exercise Price | $ 1.20 |
Number Exercisable | 57,470 |
Weighted Avg. Exercise Price | $ 1.20 |
$1.70 [Member] | Stock Options Issued and Outstanding [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 1.70 |
Number Outstanding | 44,491 |
Weighted Avg. Remaining Life | 6 years 9 months 11 days |
Weighted Avg. Exercise Price | $ 1.70 |
Number Exercisable | 36,427 |
Weighted Avg. Exercise Price | $ 1.70 |
$2.00 [Member] | Stock Options Issued and Outstanding [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 2 |
Number Outstanding | 81,724 |
Weighted Avg. Remaining Life | 5 years 1 month 6 days |
Weighted Avg. Exercise Price | $ 2 |
Number Exercisable | 81,724 |
Weighted Avg. Exercise Price | $ 2 |
$5.00 [Member] | Stock Options Issued and Outstanding [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 5 |
Number Outstanding | 7,000 |
Weighted Avg. Remaining Life | 1 year 3 months |
Weighted Avg. Exercise Price | $ 5 |
Number Exercisable | 7,000 |
Weighted Avg. Exercise Price | $ 5 |
$5.60 [Member] | Stock Options Issued and Outstanding [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 5.60 |
Number Outstanding | 18,250 |
Weighted Avg. Remaining Life | 4 years 2 months 16 days |
Weighted Avg. Exercise Price | $ 5.60 |
Number Exercisable | 18,250 |
Weighted Avg. Exercise Price | $ 5.60 |
$5.65 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 5.65 |
Number Outstanding | 60,244 |
Weighted Avg. Remaining Life | 3 years 1 month 6 days |
Weighted Avg. Exercise Price | $ 5.65 |
$5.65 [Member] | Stock Options Issued and Outstanding [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 5.65 |
Number Outstanding | 1,077,995 |
Weighted Avg. Remaining Life | 9 years 2 months 16 days |
Weighted Avg. Exercise Price | $ 5.65 |
Number Exercisable | 70,750 |
Weighted Avg. Exercise Price | $ 5.65 |
$18.11 | Stock Options Issued and Outstanding [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 18.11 |
Number Outstanding | 2,416,439 |
Weighted Avg. Remaining Life | 9 years 7 months 17 days |
Weighted Avg. Exercise Price | $ 18.11 |
Weighted Avg. Exercise Price | 18.11 |
$27.24 [Member] | Stock Options Issued and Outstanding [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 27.24 |
Number Outstanding | 446,600 |
Weighted Avg. Remaining Life | 9 years 10 months 13 days |
Weighted Avg. Exercise Price | $ 27.24 |
Weighted Avg. Exercise Price | 27.24 |
$0.10 - $27.24 [Member] | Stock Options Issued and Outstanding [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 0.10 |
Range of Exercise Prices, Maximum | $ 27.24 |
Number Outstanding | 6,905,336 |
Weighted Avg. Remaining Life | 8 years 10 months 6 days |
Weighted Avg. Exercise Price | $ 7.49 |
Number Exercisable | 2,474,609 |
Weighted Avg. Exercise Price | $ 0.83 |
Stock Option Plan and Compens58
Stock Option Plan and Compensation - Fair Value of Stock Option Awards (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair value of stock option awards [Abstract] | ||||
Volatility of common stock | 52.75% | 72.48% | 57.26% | 69.29% |
Risk-free interest rate | 1.80% | 1.97% | 1.72% | 1.77% |
Expected life | 6 years | 6 years 1 month 6 days | 6 years 1 month 6 days | 5 years 7 months 6 days |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock Option Plan and Compens59
Stock Option Plan and Compensation - Stock Based Compensation Included in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation | $ 2,752 | $ 240 | $ 4,192 | $ 490 |
Origination and Servicing [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation | 292 | 8 | 436 | 70 |
Sales and Marketing [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation | 676 | 15 | 1,065 | 32 |
General and Administrative [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation | $ 1,784 | $ 217 | $ 2,691 | $ 388 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||||
Income Tax Expense | $ 176,000 | $ 249,000 | |||
Unrecognized Tax Benefits | 4,927,000 | 4,927,000 | $ 4,927,000 | ||
Interest and penalties related to uncertain tax positions | 0 | ||||
Prosper Funding LLC [Member] | |||||
Income Taxes [Line Items] | |||||
Income Tax Expense | $ 0 | $ 0 | $ 0 | $ 0 | |
Net effective tax rate | 0.00% | 0.00% | 0.00% | 0.00% | |
Valuation Allowance of Deferred Tax Assets | |||||
Income Taxes [Line Items] | |||||
Income Tax Expense | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Unrecognized tax benefits [Roll Forward] | |
Beginning balance as of January 1, 2015 | $ 4,927 |
Ending balance as of June 30, 2015 | $ 4,927 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015USD ($)State | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)StateInstallment | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Nov. 30, 2008USD ($) | Oct. 16, 2008USD ($) | |
Commitments And Contingencies [Line Items] | |||||||
Rental expense under operating lease arrangements | $ 900,000 | $ 200,000 | $ 1,700,000 | $ 300,000 | |||
Minimum annual fee | 1,400,000 | 1,400,000 | |||||
Purchase of borrower loans | 31,200,000 | 31,200,000 | |||||
Maximum potential future payments | 2,393,000,000 | 2,393,000,000 | |||||
Accrued repurchase and indemnification obligation | $ 281,000 | $ 281,000 | $ 171,000 | ||||
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 | State | 35 | 35 | |||||
Aggregate amount paid by entity for penalties to states | $ 480,000 | $ 480,000 | |||||
Accrued contingent liability associated with states not entered into consent orders | 230,000 | 230,000 | 250,000 | ||||
Maximum fee liability taken to estimate accrued contingent liability | 1,000,000 | 1,000,000 | |||||
Agreed amount of settlement liability payable to plaintiffs | $ 10,000,000 | ||||||
Number of annual installments paid to plaintiffs | Installment | 4 | ||||||
Other commitment paid | $ 2,000,000 | 2,000,000 | |||||
Settlement installment due in 2016 | 3,000,000 | 3,000,000 | |||||
Settlement installment due in 2017 | 3,000,000 | 3,000,000 | |||||
Class action settlement liability | 5,903,000 | 5,903,000 | 7,861,000 | ||||
Prosper Funding LLC [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Minimum annual fee | 1,400,000 | 1,400,000 | |||||
Purchase of borrower loans | 31,200,000 | 31,200,000 | |||||
Maximum potential future payments | 2,100,000,000 | 2,100,000,000 | |||||
Accrued repurchase and indemnification obligation | $ 252,000 | $ 252,000 | $ 171,000 | ||||
Co Location Facility | |||||||
Commitments And Contingencies [Line Items] | |||||||
Non cancelable operating lease expiration | 2015-08 | ||||||
San Francisco California | |||||||
Commitments And Contingencies [Line Items] | |||||||
Non cancelable operating lease expiration | 2023-02 | ||||||
Phoenix, Arizona | Office Space | |||||||
Commitments And Contingencies [Line Items] | |||||||
Office lease expiration | 2021-07 | ||||||
Lehi, Utah | |||||||
Commitments And Contingencies [Line Items] | |||||||
Office lease expiration | 2027-02 |
Commitments and Contingencies63
Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
Remaining six months of 2015 | $ 1,913 |
2,016 | 4,439 |
2,017 | 5,326 |
2,018 | 5,687 |
2,019 | 5,845 |
2,020 | 6,007 |
Thereafter | 20,923 |
Total future operating lease obligations | $ 50,140 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Related Party Transaction [Line Items] | ||||
Minimum percentage of voting securities considered for related parties | 10.00% | |||
Minimum percentage of stock holders considered for related parties | 10.00% | |||
Servicing fees revenue earned by entity | $ 5 | $ 2 | $ 9 | $ 8 |
Prosper Funding LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Servicing fees revenue earned by entity | $ 5 | $ 2 | $ 9 | $ 8 |
Related Parties - Aggregate Amo
Related Parties - Aggregate Amount of Notes Purchased and the Income Earned (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||||
Aggregate amount of notes purchased | $ 365 | $ 190 | $ 866 | $ 406 | |
Interest earned on Notes | 53 | 13 | 102 | 52 | |
Notes balance | 2,088 | 2,088 | $ 1,690 | ||
Prosper Funding LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Aggregate amount of notes purchased | 846 | 403 | |||
Interest earned on Notes | 98 | 49 | |||
Notes balance | 1,992 | 1,992 | 1,614 | ||
Executive Officers & Management [Member] | |||||
Related Party Transaction [Line Items] | |||||
Aggregate amount of notes purchased | 365 | 189 | 846 | 403 | |
Interest earned on Notes | 51 | 13 | 98 | 49 | |
Notes balance | 1,992 | 1,992 | 1,614 | ||
Executive Officers & Management [Member] | Prosper Funding LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Aggregate amount of notes purchased | 846 | 403 | |||
Interest earned on Notes | 98 | 49 | |||
Notes balance | 1,992 | 1,992 | 1,614 | ||
Directors [Member] | |||||
Related Party Transaction [Line Items] | |||||
Aggregate amount of notes purchased | $ 1 | 20 | 3 | ||
Interest earned on Notes | 2 | 4 | $ 3 | ||
Notes balance | $ 96 | $ 96 | $ 76 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Compensation And Retirement Disclosure [Abstract] | ||||
Employer contribution during the period | $ 0.4 | $ 0.2 | $ 0.8 | $ 0.2 |
Segments - Additional Informati
Segments - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 1 |
Restatement of Condensed Cons68
Restatement of Condensed Consolidated Financial Statements- Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Financial Statements Captions [Line Items] | ||||
Overstatement of transaction fee revenues and origination and servicing expenses | $ 700 | $ 1,089 | ||
Understatement of transaction fee revenue | 428 | 660 | ||
Overstatement of other revenue | 392 | 580 | ||
Overstatement in fair value of borrower loan held for sale and notes | 36 | 80 | ||
Understatement of gain recognized on loan | $ 946 | $ 926 | ||
Adjustment for understated servicing fees | $ 600 | $ 951 | ||
Understatement of Amortization Expenses | 9 | $ 51 | ||
Overstatement of calculation of weighted average shares | 456,484 | |||
Understatement of undistributed earnings (loss) allocated to participating securities | $ 533 | |||
Overstatement of calculation of weighted average shares, basic | 537,312 | |||
Understatement of calculation of weighted average shares, diluted | 7,282,124 | |||
Prosper Funding LLC [Member] | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Understatement of gain recognized on loan | $ 946 | $ 926 | ||
Adjustment for understated servicing fees | 620 | 977 | ||
Understatement of Amortization Expenses | 9 | 51 | ||
Understatement of administration fee related party expense due to misclassification | 521 | 849 | ||
Overstatement of servicing expenses | 687 | 1,068 | ||
Understatement of administration fee related party expense due to incorrect amortization of servicing assets and liabilities | $ 782 | $ 1,489 |
Restatement of Condensed Cons69
Restatement of Condensed Consolidated Financial Statements - Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Revenue | ||||
Transaction Fees, Net | $ 39,800 | $ 15,980 | $ 65,142 | $ 24,344 |
Servicing Fees, Net | 3,575 | 697 | 6,144 | 1,112 |
Other Revenue | 5,326 | 717 | 8,303 | 1,161 |
Total Operating Revenue | 48,701 | 17,394 | 79,589 | 26,617 |
Interest Income on Borrower Loans | 10,165 | 10,436 | 20,634 | 20,371 |
Interest Expense on Notes | (9,448) | (9,564) | (19,011) | (18,987) |
Net Interest Income | 717 | 872 | 1,623 | 1,384 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 95 | 27 | 21 | 271 |
Total Net Revenue | 49,513 | 18,293 | 81,233 | 28,272 |
Expenses | ||||
Depreciation and Amortization | 3,455 | 791 | ||
Loss on Impairment of Property and Equipment | 215 | |||
Origination and Servicing | 7,126 | 2,814 | 13,982 | 5,105 |
Sales and Marketing | 26,580 | 9,392 | 45,150 | 15,826 |
General and Administrative | 21,832 | 5,373 | 35,329 | 9,345 |
Total Expenses | 55,538 | 17,579 | 94,461 | 30,276 |
Net Income (Loss) | (6,201) | 714 | (13,477) | (2,004) |
Prosper Funding LLC [Member] | ||||
Operating Revenue | ||||
Administration Fee Revenue - Related Party | 14,213 | 6,898 | 23,886 | 10,951 |
Servicing Fees, Net | 3,272 | 703 | 5,536 | 1,126 |
Other Revenue | 3,696 | 679 | 5,596 | 977 |
Total Operating Revenue | 21,181 | 8,280 | 35,018 | 13,054 |
Interest Income on Borrower Loans | 10,209 | 10,544 | 20,723 | 20,512 |
Interest Expense on Notes | (9,448) | (9,564) | (19,011) | (18,986) |
Net Interest Income | 761 | 980 | 1,712 | 1,526 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 94 | 27 | 21 | 352 |
Total Net Revenue | 22,036 | 9,287 | 36,751 | 14,932 |
Cost of Revenue | ||||
Cost of Services | (899) | (358) | (2,271) | (755) |
Expenses | ||||
Depreciation and Amortization | 1,896 | 539 | ||
Origination and Servicing | 358 | 755 | ||
General and Administrative | 282 | 81 | 546 | 186 |
Total Expenses | 15,266 | 5,975 | 26,197 | 9,972 |
Administration Fee – Related Party | 14,085 | 5,536 | 23,380 | 9,031 |
Net Income (Loss) | $ 6,770 | 3,312 | $ 10,554 | 4,960 |
Previously Stated [Member] | ||||
Operating Revenue | ||||
Transaction Fees, Net | 16,448 | 25,149 | ||
Rebates and Promotions | (639) | (999) | ||
Other Revenue | 269 | 965 | ||
Total Operating Revenue | 16,078 | 25,115 | ||
Interest Income on Borrower Loans | 10,702 | 20,812 | ||
Interest Expense on Notes | (9,494) | (18,763) | ||
Net Interest Income | 1,208 | 2,049 | ||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 91 | 389 | ||
Total Net Revenue | 17,377 | 27,553 | ||
Cost of Revenue | ||||
Cost of Services | (767) | (1,293) | ||
Provision for repurchase and indemnification obligation | (54) | (116) | ||
Net revenues | (821) | (1,409) | ||
Expenses | ||||
Compensation and benefits | 5,277 | 9,219 | ||
Marketing and advertising | 9,040 | 15,026 | ||
Depreciation and Amortization | 380 | 743 | ||
Professional services | 364 | 541 | ||
Facilities and maintenance | 621 | 1,066 | ||
Loss on Impairment of Property and Equipment | 215 | |||
Other | 877 | 1,503 | ||
Total Expenses | 16,559 | 28,313 | ||
Net Income (Loss) | (3) | (2,169) | ||
Previously Stated [Member] | Prosper Funding LLC [Member] | ||||
Operating Revenue | ||||
Administration Fee Revenue - Related Party | 6,898 | 10,951 | ||
Other Revenue | (155) | 201 | ||
Total Operating Revenue | 6,743 | 11,152 | ||
Interest Income on Borrower Loans | 10,518 | 20,568 | ||
Interest Expense on Notes | (9,494) | (18,763) | ||
Net Interest Income | 1,024 | 1,805 | ||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 91 | 389 | ||
Total Net Revenue | 7,858 | 13,346 | ||
Cost of Revenue | ||||
Cost of Services | (654) | (1,051) | ||
Provision for repurchase and indemnification obligation | (56) | (118) | ||
Net revenues | (710) | (1,169) | ||
Expenses | ||||
Depreciation and Amortization | 253 | 487 | ||
Professional services | 12 | |||
Total Expenses | 4,564 | 7,505 | ||
Administration Fee – Related Party | 4,234 | 6,840 | ||
Other Operating Expenses | 77 | 166 | ||
Net Income (Loss) | 2,584 | 4,672 | ||
Reclassification | ||||
Operating Revenue | ||||
Transaction Fees, Net | (429) | (660) | ||
Rebates and Promotions | 639 | 999 | ||
Servicing Fees, Net | 83 | 182 | ||
Total Operating Revenue | 293 | 521 | ||
Interest Income on Borrower Loans | (293) | (522) | ||
Net Interest Income | (293) | (522) | ||
Total Net Revenue | (1) | |||
Cost of Revenue | ||||
Cost of Services | 767 | 1,293 | ||
Provision for repurchase and indemnification obligation | 54 | 116 | ||
Net revenues | 821 | 1,409 | ||
Expenses | ||||
Compensation and benefits | (5,277) | (9,219) | ||
Marketing and advertising | (9,040) | (15,026) | ||
Depreciation and Amortization | (380) | (743) | ||
Professional services | (364) | (541) | ||
Facilities and maintenance | (621) | (1,066) | ||
Loss on Impairment of Property and Equipment | (215) | |||
Other | (877) | (1,503) | ||
Origination and Servicing | 2,773 | 4,904 | ||
Sales and Marketing | 9,392 | 15,816 | ||
General and Administrative | 5,215 | 9,001 | ||
Total Expenses | 821 | 1,408 | ||
Reclassification | Prosper Funding LLC [Member] | ||||
Operating Revenue | ||||
Servicing Fees, Net | 109 | 279 | ||
Total Operating Revenue | 109 | 279 | ||
Interest Income on Borrower Loans | (109) | (278) | ||
Net Interest Income | (109) | (278) | ||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | (1) | |||
Cost of Revenue | ||||
Cost of Services | 654 | 1,051 | ||
Provision for repurchase and indemnification obligation | 56 | 118 | ||
Net revenues | 710 | 1,169 | ||
Expenses | ||||
Depreciation and Amortization | (253) | (487) | ||
Professional services | (12) | |||
Origination and Servicing | 963 | 1,656 | ||
General and Administrative | 77 | 178 | ||
Total Expenses | 710 | 1,169 | ||
Other Operating Expenses | (77) | (166) | ||
As Reclassified | ||||
Operating Revenue | ||||
Transaction Fees, Net | 16,019 | 24,489 | ||
Servicing Fees, Net | 83 | 182 | ||
Other Revenue | 269 | 965 | ||
Total Operating Revenue | 16,371 | 25,636 | ||
Interest Income on Borrower Loans | 10,409 | 20,290 | ||
Interest Expense on Notes | (9,494) | (18,763) | ||
Net Interest Income | 915 | 1,527 | ||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 91 | 389 | ||
Total Net Revenue | 17,377 | 27,552 | ||
Expenses | ||||
Origination and Servicing | 2,773 | 4,904 | ||
Sales and Marketing | 9,392 | 15,816 | ||
General and Administrative | 5,215 | 9,001 | ||
Total Expenses | 17,380 | 29,721 | ||
Net Income (Loss) | (3) | (2,169) | ||
As Reclassified | Prosper Funding LLC [Member] | ||||
Operating Revenue | ||||
Administration Fee Revenue - Related Party | 6,898 | 10,951 | ||
Servicing Fees, Net | 109 | 279 | ||
Other Revenue | (155) | 201 | ||
Total Operating Revenue | 6,852 | 11,431 | ||
Interest Income on Borrower Loans | 10,409 | 20,290 | ||
Interest Expense on Notes | (9,494) | (18,763) | ||
Net Interest Income | 915 | 1,527 | ||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 91 | 388 | ||
Total Net Revenue | 7,858 | 13,346 | ||
Expenses | ||||
Origination and Servicing | 963 | 1,656 | ||
General and Administrative | 77 | 178 | ||
Total Expenses | 5,274 | 8,674 | ||
Administration Fee – Related Party | 4,234 | 6,840 | ||
Net Income (Loss) | 2,584 | 4,672 | ||
Adjustment [Member] | ||||
Operating Revenue | ||||
Transaction Fees, Net | (39) | (145) | ||
Servicing Fees, Net | 614 | 930 | ||
Other Revenue | 448 | 196 | ||
Total Operating Revenue | 1,023 | 981 | ||
Interest Income on Borrower Loans | 27 | 81 | ||
Interest Expense on Notes | (70) | (224) | ||
Net Interest Income | (43) | (143) | ||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | (64) | (118) | ||
Total Net Revenue | 916 | 720 | ||
Expenses | ||||
Origination and Servicing | 41 | 201 | ||
Sales and Marketing | 10 | |||
General and Administrative | 158 | 344 | ||
Total Expenses | 199 | 555 | ||
Net Income (Loss) | 717 | 165 | ||
Adjustment [Member] | Prosper Funding LLC [Member] | ||||
Operating Revenue | ||||
Servicing Fees, Net | 594 | 847 | ||
Other Revenue | 834 | 776 | ||
Total Operating Revenue | 1,428 | 1,623 | ||
Interest Income on Borrower Loans | 135 | 222 | ||
Interest Expense on Notes | (70) | (223) | ||
Net Interest Income | 65 | (1) | ||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | (64) | (36) | ||
Total Net Revenue | 1,429 | 1,586 | ||
Expenses | ||||
Origination and Servicing | (605) | (901) | ||
General and Administrative | 4 | 8 | ||
Total Expenses | 701 | 1,298 | ||
Administration Fee – Related Party | 1,302 | 2,191 | ||
Net Income (Loss) | $ 728 | $ 288 |
Restatement of Condensed Cons70
Restatement of Condensed Consolidated Financial Statements - Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||||
Net Income (Loss) | $ (6,201) | $ 714 | $ (13,477) | $ (2,004) |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | (95) | (27) | (21) | (271) |
Other, Net | 45 | 63 | ||
Depreciation and Amortization | 3,455 | 791 | ||
Stock-Based Compensation | 4,192 | 490 | ||
Loss on Impairment of Property and Equipment | 215 | |||
Change in Servicing Rights | (3,962) | (974) | ||
Purchase of Loans Held for Sale at Fair Value | (1,402,499) | (475,934) | ||
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 1,409,426 | 471,151 | ||
Changes in Operating Assets and Liabilities: | ||||
Restricted Cash | (63,254) | (20,347) | ||
Accounts Receivable | 1,956 | (164) | ||
Prepaid and Other Assets | (2,235) | (2,134) | ||
Accounts Payable and Accrued Liabilities | 2,754 | 3,469 | ||
Payable to Investors | 70,551 | 17,550 | ||
Class Action Settlement Liability | (2,000) | (2,000) | ||
Net Cash Provided by (Used in) Operating Activities | 4,931 | (10,099) | ||
Cash Flows From Investing Activities: | ||||
Purchase of Borrower Loans Held at Fair Value | (94,512) | (86,796) | ||
Principal Payments of Borrower Loans Held at Fair Value | 73,457 | 57,811 | ||
Purchases of Property and Equipment | (6,412) | (1,672) | ||
Maturities of Short Term Investments | 1,274 | 1,271 | ||
Purchases of Short Term Investments | (1,275) | (1,274) | ||
Changes in Restricted Cash Related to Investing Activities | (2,729) | (218) | ||
Net Cash Used in Investing Activities | (49,197) | (30,878) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from Issuance of Notes Held at Fair Value | 94,575 | 86,678 | ||
Payment of Notes Held at Fair Value | (73,509) | (57,575) | ||
Proceeds from Issuance of Convertible Preferred Stock, Net | 164,793 | 69,958 | ||
Proceeds from Early Exercise of Stock Options | 1,669 | 277 | ||
Proceeds from Exercise of Vested Stock Options and Common Stock Warrants | 734 | 114 | ||
Repurchase of Restricted Stock | (12) | |||
Net Cash Provided by Financing Activities | 167,012 | 99,440 | ||
Net (Decrease) Increase in Cash and Cash Equivalents | 122,746 | 58,463 | ||
Cash and Cash Equivalents at Beginning of the Period | 50,557 | 18,339 | ||
Cash and Cash Equivalents at End of the Period | 173,303 | 76,802 | 173,303 | 76,802 |
Prosper Funding LLC [Member] | ||||
Cash flows from operating activities: | ||||
Net Income (Loss) | 6,770 | 3,312 | 10,554 | 4,960 |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | (94) | (27) | (21) | (352) |
Depreciation and Amortization | 1,896 | 539 | ||
Change in Servicing Rights | (4,357) | (998) | ||
Purchase of Loans Held for Sale at Fair Value | (1,402,499) | (475,934) | ||
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 1,409,426 | 471,151 | ||
Changes in Operating Assets and Liabilities: | ||||
Restricted Cash | (62,390) | (19,943) | ||
Other Assets | (14) | 4 | ||
Accounts Payable and Accrued Liabilities | 402 | 527 | ||
Payable to Investors | 69,686 | 16,995 | ||
Net Related Party Payable | (249) | |||
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | 2 | 2 | ||
Net Cash Provided by (Used in) Operating Activities | 24,072 | (3,298) | ||
Cash Flows From Investing Activities: | ||||
Purchase of Borrower Loans Held at Fair Value | (94,512) | (86,715) | ||
Principal Payments of Borrower Loans Held at Fair Value | 73,457 | 57,811 | ||
Purchases of Property and Equipment | (6,567) | (553) | ||
Maturities of Short Term Investments | 1,274 | 1,271 | ||
Purchases of Short Term Investments | (1,275) | (1,274) | ||
Changes in Restricted Cash Related to Investing Activities | (2,725) | (121) | ||
Net Cash Used in Investing Activities | (30,348) | (29,581) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from Issuance of Notes Held at Fair Value | 94,576 | 86,679 | ||
Payment of Notes Held at Fair Value | (73,509) | (57,575) | ||
Net Cash Provided by Financing Activities | (5,933) | 29,104 | ||
Net (Decrease) Increase in Cash and Cash Equivalents | (12,209) | (3,775) | ||
Cash and Cash Equivalents at Beginning of the Period | 23,777 | 5,789 | ||
Cash and Cash Equivalents at End of the Period | $ 11,568 | 2,014 | $ 11,568 | 2,014 |
Prosper Funding LLC [Member] | Property Plant and Equipment One [Member] | ||||
Cash Flows From Investing Activities: | ||||
Purchases of Property and Equipment | (1,274) | |||
Prosper Funding LLC [Member] | Property Plant and Equipment Two [Member] | ||||
Cash Flows From Investing Activities: | ||||
Purchases of Property and Equipment | (553) | |||
Previously Stated [Member] | ||||
Cash flows from operating activities: | ||||
Net Income (Loss) | (3) | (2,169) | ||
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | (91) | (389) | ||
Change in Fair Value of Notes | (1,350) | |||
Change in Fair Value of Borrower Loans Receivable | 958 | |||
Change in Fair Value of Loans Held for Sale | 3 | |||
Depreciation and Amortization | 380 | 743 | ||
Stock-Based Compensation | 500 | |||
Loss on Impairment of Property and Equipment | 215 | |||
Changes in Operating Assets and Liabilities: | ||||
Restricted Cash | (2,473) | |||
Accounts Receivable | (11) | |||
Prepaid and Other Assets | (2,162) | |||
Accounts Payable and Accrued Liabilities | 3,776 | |||
Class Action Settlement Liability | (2,000) | |||
Net Cash Provided by (Used in) Operating Activities | (3,970) | |||
Cash Flows From Investing Activities: | ||||
Purchase of Borrower Loans Held at Fair Value | (330,464) | |||
Principal Payments of Borrower Loans Held at Fair Value | 65,648 | |||
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | 243,235 | |||
Repayment of Loans Held for Investment at Fair Value | 312 | |||
Origination of Loans Held for Investment at Fair Value | (111,927) | |||
Proceeds from sale of Borrower Loans at Fair Value | 105,986 | |||
Purchases of Property and Equipment | (1,762) | |||
Net Cash Used in Investing Activities | (28,972) | |||
Cash Flows from Financing Activities: | ||||
Proceeds from Issuance of Notes Held at Fair Value | 86,713 | |||
Payment of Notes Held at Fair Value | (65,646) | |||
Proceeds from Issuance of Convertible Preferred Stock, Net | 69,958 | |||
Proceeds from Early Exercise of Stock Options | 276 | |||
Proceeds from Exercise of Vested Stock Options and Common Stock Warrants | 31 | |||
Proceeds from the Excercise of Warrants | 85 | |||
Repurchase of Restricted Stock | (12) | |||
Net Cash Provided by Financing Activities | 91,405 | |||
Net (Decrease) Increase in Cash and Cash Equivalents | 58,463 | |||
Cash and Cash Equivalents at Beginning of the Period | 18,339 | |||
Cash and Cash Equivalents at End of the Period | 76,802 | 76,802 | ||
Previously Stated [Member] | Prosper Funding LLC [Member] | ||||
Cash flows from operating activities: | ||||
Net Income (Loss) | 2,584 | 4,672 | ||
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | (91) | (389) | ||
Change in Fair Value of Notes | (1,350) | |||
Change in Fair Value of Borrower Loans Receivable | 958 | |||
Change in Fair Value of Loans Held for Sale | 3 | |||
Depreciation and Amortization | 253 | 487 | ||
Changes in Operating Assets and Liabilities: | ||||
Restricted Cash | (1,971) | |||
Other Assets | (5) | |||
Accounts Payable and Accrued Liabilities | 158 | |||
Net Related Party Payable | (31) | |||
Net Cash Provided by (Used in) Operating Activities | 2,921 | |||
Cash Flows From Investing Activities: | ||||
Purchase of Borrower Loans Held at Fair Value | (330,464) | |||
Principal Payments of Borrower Loans Held at Fair Value | 65,648 | |||
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | 243,235 | |||
Repayment of Loans Held for Investment at Fair Value | 312 | |||
Origination of Loans Held for Investment at Fair Value | (111,927) | |||
Proceeds from sale of Borrower Loans at Fair Value | 105,986 | |||
Net Cash Used in Investing Activities | (27,763) | |||
Cash Flows from Financing Activities: | ||||
Proceeds from Issuance of Notes Held at Fair Value | 86,713 | |||
Payment of Notes Held at Fair Value | (65,646) | |||
Net Cash Provided by Financing Activities | 21,067 | |||
Net (Decrease) Increase in Cash and Cash Equivalents | (3,775) | |||
Cash and Cash Equivalents at Beginning of the Period | 5,789 | |||
Cash and Cash Equivalents at End of the Period | $ 2,014 | 2,014 | ||
Previously Stated [Member] | Prosper Funding LLC [Member] | Property Plant and Equipment Two [Member] | ||||
Cash Flows From Investing Activities: | ||||
Purchases of Property and Equipment | (553) | |||
Adjustment [Member] | ||||
Cash flows from operating activities: | ||||
Net Income (Loss) | 165 | |||
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | (271) | |||
Change in Fair Value of Notes | 1,350 | |||
Change in Fair Value of Borrower Loans Receivable | (958) | |||
Change in Fair Value of Loans Held for Sale | (3) | |||
Other, Net | 63 | |||
Depreciation and Amortization | 48 | |||
Stock-Based Compensation | (10) | |||
Change in Servicing Rights | (974) | |||
Purchase of Loans Held for Sale at Fair Value | (475,934) | |||
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 471,151 | |||
Changes in Operating Assets and Liabilities: | ||||
Restricted Cash | (17,874) | |||
Accounts Receivable | (153) | |||
Prepaid and Other Assets | 28 | |||
Accounts Payable and Accrued Liabilities | (307) | |||
Payable to Investors | 17,550 | |||
Net Cash Provided by (Used in) Operating Activities | (6,129) | |||
Cash Flows From Investing Activities: | ||||
Purchase of Borrower Loans Held at Fair Value | 243,668 | |||
Principal Payments of Borrower Loans Held at Fair Value | (7,837) | |||
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | (243,235) | |||
Repayment of Loans Held for Investment at Fair Value | (312) | |||
Origination of Loans Held for Investment at Fair Value | 111,927 | |||
Proceeds from sale of Borrower Loans at Fair Value | (105,986) | |||
Purchases of Property and Equipment | 90 | |||
Maturities of Short Term Investments | 1,271 | |||
Purchases of Short Term Investments | (1,274) | |||
Changes in Restricted Cash Related to Investing Activities | (218) | |||
Net Cash Used in Investing Activities | (1,906) | |||
Cash Flows from Financing Activities: | ||||
Proceeds from Issuance of Notes Held at Fair Value | (35) | |||
Payment of Notes Held at Fair Value | 8,071 | |||
Proceeds from Early Exercise of Stock Options | 1 | |||
Proceeds from Exercise of Vested Stock Options and Common Stock Warrants | 83 | |||
Proceeds from the Excercise of Warrants | (85) | |||
Net Cash Provided by Financing Activities | 8,035 | |||
Adjustment [Member] | Prosper Funding LLC [Member] | ||||
Cash flows from operating activities: | ||||
Net Income (Loss) | 288 | |||
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | (352) | |||
Change in Fair Value of Notes | 1,350 | |||
Change in Fair Value of Borrower Loans Receivable | (958) | |||
Change in Fair Value of Loans Held for Sale | (3) | |||
Depreciation and Amortization | 52 | |||
Change in Servicing Rights | (998) | |||
Purchase of Loans Held for Sale at Fair Value | (475,934) | |||
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 471,151 | |||
Changes in Operating Assets and Liabilities: | ||||
Restricted Cash | (17,972) | |||
Other Assets | 9 | |||
Accounts Payable and Accrued Liabilities | 369 | |||
Payable to Investors | 16,995 | |||
Net Related Party Payable | (218) | |||
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | 2 | |||
Net Cash Provided by (Used in) Operating Activities | (6,219) | |||
Cash Flows From Investing Activities: | ||||
Purchase of Borrower Loans Held at Fair Value | 243,749 | |||
Principal Payments of Borrower Loans Held at Fair Value | (7,837) | |||
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | (243,235) | |||
Repayment of Loans Held for Investment at Fair Value | (312) | |||
Origination of Loans Held for Investment at Fair Value | 111,927 | |||
Proceeds from sale of Borrower Loans at Fair Value | (105,986) | |||
Maturities of Short Term Investments | 1,271 | |||
Changes in Restricted Cash Related to Investing Activities | (121) | |||
Net Cash Used in Investing Activities | (1,818) | |||
Cash Flows from Financing Activities: | ||||
Proceeds from Issuance of Notes Held at Fair Value | (34) | |||
Payment of Notes Held at Fair Value | 8,071 | |||
Net Cash Provided by Financing Activities | 8,037 | |||
Adjustment [Member] | Prosper Funding LLC [Member] | Property Plant and Equipment One [Member] | ||||
Cash Flows From Investing Activities: | ||||
Purchases of Property and Equipment | $ (1,274) |