Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 11-May-15 | |
Document And Entity Information [Line Items] | ||
Entity Registrant Name | PROSPER MARKETPLACE, INC | |
Entity Central Index Key | 1416265 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 14,706,666 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Prosper Funding LLC [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Registrant Name | Prosper Funding LLC | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 0 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and Cash Equivalents | $38,332 | $50,557 |
Restricted Cash | 99,363 | 81,300 |
Short Term Investments | 1,275 | 1,274 |
Accounts Receivable | 1,268 | 3,152 |
Loans Held for Sale, at Fair Value | 1,599 | 8,463 |
Borrower Loans, at Fair Value | 280,404 | 273,243 |
Property and Equipment, Net | 16,656 | 14,424 |
Prepaid and Other Assets | 10,531 | 7,745 |
Goodwill and Intangibles | 20,249 | |
Total Assets | 469,677 | 440,158 |
Liabilities, Convertible Preferred Stock and Stockholders' Deficit | ||
Accounts Payable and Accrued Liabilities | 21,368 | 17,239 |
Payable to Investors | 87,706 | 64,494 |
Class Action Settlement Liability | 5,880 | 7,861 |
Notes at Fair Value | 280,801 | 273,783 |
Repurchase Liability for Unvested Restricted Stock Awards | 946 | 1,010 |
Total Liabilities | 396,701 | 364,387 |
Commitments and Contingencies (see Note 11) | ||
Convertible Preferred Stock – $0.01 par value; 32,155,022 shares authorized; 30,699,957 issued and outstanding as of March 31, 2015 and December 31, 2014. Aggregate liquidation preference of $160,952 as of March 31, 2015 and December 31, 2014. | 111,145 | 111,145 |
Stockholders' Deficit | ||
Common Stock ($0.01 par value; 48,928,883 shares authorized; 14,878,514 issued and 14,691,327 outstanding as of March 31, 2015; and 47,928,883 shares authorized; 14,448,700 issued and 14,261,513 outstanding as of December 31, 2014) | 110 | 102 |
Additional Paid-In Capital | 90,239 | 86,340 |
Less: Treasury Stock | -303 | -303 |
Accumulated Deficit | -128,215 | -121,513 |
Total Stockholders' Deficit | -38,169 | -35,374 |
Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit | 469,677 | 440,158 |
Prosper Funding LLC [Member] | ||
Assets | ||
Cash and Cash Equivalents | 20,594 | 23,777 |
Restricted Cash | 91,107 | 73,103 |
Short Term Investments | 1,275 | 1,274 |
Loans Held for Sale, at Fair Value | 1,599 | 8,463 |
Borrower Loans, at Fair Value | 280,404 | 273,243 |
Property and Equipment, Net | 3,964 | 1,125 |
Related party receivable | 799 | 1,135 |
Other assets | 4,801 | 3,120 |
Total Assets | 404,543 | 385,240 |
Liabilities, Convertible Preferred Stock and Stockholders' Deficit | ||
Accounts Payable and Accrued Liabilities | 1,606 | 1,357 |
Payable to Investors | 86,882 | 63,809 |
Notes at Fair Value | 280,801 | 273,783 |
Total Liabilities | 369,289 | 338,949 |
Stockholders' Deficit | ||
Member's Equity | 14,370 | 29,619 |
Accumulated Deficit | 20,884 | 16,672 |
Total Stockholders' Deficit | 35,254 | 46,291 |
Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit | $404,543 | $385,240 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Convertible preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Convertible preferred stock, shares authorized (in shares) | 32,155,022 | 32,155,022 |
Convertible preferred stock, shares issued (in shares) | 30,699,957 | 30,699,957 |
Convertible preferred stock, shares outstanding (in shares) | 30,699,957 | 30,699,957 |
Convertible preferred stock, aggregate liquidation preference | $160,952 | $160,952 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 48,928,883 | 47,928,883 |
Common stock, shares issued (in shares) | 14,878,514 | 14,448,700 |
Common stock, shares outstanding (in shares) | 14,691,327 | 14,261,513 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Operating Revenue | ||
Transaction Fees, Net | $25,342,000 | $8,364,000 |
Servicing Fees, Net | 2,569,000 | 414,000 |
Other Revenue | 2,998,000 | 451,000 |
Total Operating Revenue | 30,909,000 | 9,229,000 |
Interest Income | ||
Interest Income on Borrower Loans | 10,476,000 | 10,005,000 |
Interest Expense on Notes | -9,563,000 | -9,422,000 |
Net Interest Income | 913,000 | 583,000 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | -101,000 | 167,000 |
Total Net Revenue | 31,721,000 | 9,979,000 |
Expenses | ||
Origination and Servicing | 6,852,000 | 2,291,000 |
Sales and Marketing | 18,570,000 | 6,434,000 |
General and Administrative | 13,502,000 | 3,972,000 |
Total Expenses | 38,924,000 | 12,697,000 |
Net Loss Before Taxes | -7,203,000 | -2,718,000 |
Income Tax Expense | 73,000 | |
Net Income (Loss) | -7,276,000 | -2,718,000 |
Net Loss Per Share – Basic and Diluted | ($0.69) | ($0.34) |
Weighted-Average Shares - Basic and Diluted | 10,553,251 | 8,056,248 |
Prosper Funding LLC [Member] | ||
Operating Revenue | ||
Administration Fee Revenue - Related Party | 9,673,000 | 4,053,000 |
Servicing Fees, Net | 2,265,000 | 423,000 |
Other Revenue | 1,922,000 | 299,000 |
Total Operating Revenue | 13,860,000 | 4,775,000 |
Interest Income | ||
Interest Income on Borrower Loans | 10,522,000 | 10,082,000 |
Interest Expense on Notes | -9,563,000 | -9,423,000 |
Net Interest Income | 959,000 | 659,000 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | -101,000 | 210,000 |
Total Net Revenue | 14,718,000 | 5,644,000 |
Expenses | ||
Origination and Servicing | 398,000 | |
Administration Fee – Related Party | 9,295,000 | 3,494,000 |
Servicing | 1,373,000 | 398,000 |
General and Administrative | 266,000 | 104,000 |
Total Expenses | 10,934,000 | 3,996,000 |
Income Tax Expense | 0 | 0 |
Net Income (Loss) | $3,784,000 | $1,648,000 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from Operating Activities: | ||
Net Income (Loss) | ($7,276) | ($2,718) |
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 | 101 | -167 |
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | -205 | -133 |
Depreciation and Amortization | 1,850 | 400 |
Change in Servicing Rights | -1,256 | -283 |
Stock-Based Compensation Expense | 1,439 | 250 |
Loss on Impairment of Property and Equipment | 215 | |
Accretion of Class Action Settlement Liability | 19 | 30 |
Purchase of Loans Held for Sale at Fair Value | -540,924 | -150,787 |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 547,673 | 150,510 |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -19,922 | -5,169 |
Accounts Receivable | 2,031 | -20 |
Prepaid and Other Assets | -850 | -417 |
Accounts Payable and Accrued Liabilities | 2,204 | 898 |
Class Action Settlement Liability | -2,000 | -2,000 |
Payable to Investors | 23,212 | 5,850 |
Net Cash Provided by (Used in) Operating Activities | 6,096 | -3,541 |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -47,714 | -44,256 |
Principal Payments of Borrower Loans Held at Fair Value | 36,063 | 28,245 |
Purchases of Property and Equipment | -3,537 | -659 |
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 | 1,859 | -771 |
Net Cash Used in Investing Activities | -32,330 | -17,444 |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 47,796 | 43,933 |
Payment of Notes Held at Fair Value | -36,069 | -28,326 |
Proceeds from Early Exercise of Stock Options and Issuance of Restricted Stock | 1,650 | 10 |
Proceeds from Exercise of Vested Stock Options | 522 | 4 |
Repurchase of Restricted Stock | -1 | |
Proceeds from Exercise of Common Stock Warrants | 111 | |
Net Cash Provided by Financing Activities | 14,009 | 15,621 |
Net (Decrease) Increase in Cash and Cash Equivalents | -12,225 | -5,364 |
Cash and Cash Equivalents at Beginning of the Period | 50,557 | 18,339 |
Cash and Cash Equivalents at End of the Period | 38,332 | 12,975 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Interest | 10,444 | 10,178 |
Non-Cash Investing Activity-Accrual for Property and Equipment, Net | 321 | 28 |
Non-Cash Investing Activity-Amount Payable for the Acquisition of Business | 840 | |
Prosper Funding LLC [Member] | ||
Cash flows from Operating Activities: | ||
Net Income (Loss) | 3,784 | 1,648 |
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 | 101 | -210 |
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | -205 | -133 |
Depreciation and Amortization | 1,220 | 277 |
Change in Servicing Rights | -1,443 | -294 |
Purchase of Loans Held for Sale at Fair Value | -540,924 | -150,787 |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 547,673 | 150,510 |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -19,864 | -4,754 |
Other Assets | -15 | 3 |
Accounts Payable and Accrued Liabilities | 205 | 89 |
Payable to Investors | 23,073 | 5,684 |
Net Related Party Receivable/Payable | 336 | -516 |
Net Cash Provided by (Used in) Operating Activities | 13,941 | 1,517 |
Cash Flows from Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -47,714 | -44,213 |
Principal Payments of Borrower Loans Held at Fair Value | 36,063 | 28,245 |
Purchases of Property and Equipment | -4,059 | -180 |
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 | 1,860 | -1,119 |
Net Cash Used in Investing Activities | -13,851 | -17,270 |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 47,796 | 43,933 |
Payment of Notes Held at Fair Value | -36,069 | -28,326 |
Net Cash Included in Transfer of Assets from Parent | -15,000 | |
Net Cash Provided by Financing Activities | -3,273 | 15,607 |
Net (Decrease) Increase in Cash and Cash Equivalents | -3,183 | -146 |
Cash and Cash Equivalents at Beginning of the Period | 23,777 | 5,789 |
Cash and Cash Equivalents at End of the Period | 20,594 | 5,643 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Interest | 10,444 | 10,178 |
Non-Cash Financing Activity - Distribution to Parent | $249 | $93 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 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 months ended March 31, 2015 and 2014, respectively. | |
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 believe 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 operates 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 months ended March 31, 2015 and 2014, respectively. | |
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_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 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 in Prosper’s Annual Report on Form 10-K for the year ended December 31, 2014. There have been no changes to these accounting policies during the first three months of 2015 except for Loan Servicing Assets and Liabilities. | |
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”). ASC Topic 825 permits companies to choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the reader of the financial statements and it allows both the Borrower Loans, loans held for sale and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. | |
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 allows the subsequent adoption of the fair value method at the beginning of any fiscal year. The adoption of the fair value method for a particular class is irrevocable. Prior to January 1, 2015, Prosper measured the servicing assets and liabilities using the amortized cost method. This change resulted in a $575 thousand decrease to accumulated deficit, a $546 thousand increase in net servicing assets and a $29 thousand decrease in net servicing 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.” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The standard will be effective for Prosper in the first quarter of fiscal 2017. Early adoption is not permitted. Prosper is currently assessing the potential impact on its financial statements from adopting this new guidance. | |
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management of a company to evaluate whether there is substantial doubt about the company’s ability to continue as a going concern. This ASU is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods thereafter, with early adoption permitted. Prosper is currently assessing the potential impact on its financial statements from adopting this new guidance. | |
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." ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for periods beginning after December 15, 2015 with early adoption permitted. Prosper has decided to early adopt this guidance effective January 1, 2015, the adoption of this standard had no impact on Prosper’s financial statements. | |
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 in Prosper Funding’s Annual Report on Form 10-K for the year ended December 31, 2014. There have been no changes to these accounting policies during the first three months of 2015 except for Loan Servicing Assets and Liabilities. | |
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”). ASC Topic 825 permits companies to choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the reader of the financial statements and it allows both the Borrower Loans, loans held for sale and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. | |
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 allows the subsequent adoption of the fair value method at the beginning of any fiscal year. The adoption of the fair value method for a particular class is irrevocable. Prior to January 1, 2015, Prosper Funding measured the servicing assets and liabilities using the amortized cost method. This change resulted in a $428 thousand increase to retained earnings, a $399 thousand increase in net servicing assets and a $29 thousand decrease in net servicing 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.” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The standard will be effective for Prosper Funding in the first quarter of fiscal 2017. Early adoption is not permitted. Prosper Funding is currently assessing the potential impact on its financial statements from adopting this new guidance. | |
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management of a company to evaluate whether there is substantial doubt about Prosper Funding’s ability to continue as a going concern. This ASU is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods thereafter, with early adoption permitted. Prosper Funding is currently assessing the potential impact on its financial statements from adopting this new guidance. | |
In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for periods beginning after December 15, 2015 with early adoption permitted. Prosper Funding has decided to early adopt this guidance effective January 1, 2015, the adoption of this standard had no impact on Prosper Funding’s financial statements. | |
Property_and_Equipment_Net
Property and Equipment, Net | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Property and Equipment, Net | 3. Property and Equipment, Net | |||||||||
Property and equipment consist of the following (in thousands): | ||||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
Property and equipment: | ||||||||||
Computer equipment | $ | 6,178 | $ | 3,824 | ||||||
Internal-use software and website development costs | 8,513 | 4,486 | ||||||||
Office equipment and furniture | 1,961 | 1,904 | ||||||||
Leasehold improvements | 5,564 | 5,274 | ||||||||
Assets not yet placed in service | 1,589 | 4,361 | ||||||||
Property and equipment | 23,805 | 19,849 | ||||||||
Less accumulated depreciation and amortization | (7,149 | ) | (5,425 | ) | ||||||
Total property and equipment, net | $ | 16,656 | $ | 14,424 | ||||||
Depreciation expense for the three months ended March 31, 2015 and 2014 was $1,850 thousand and $400 thousand respectively. Prosper capitalized internal-use software and website development costs in the amount of $1,215 thousand and $368 thousand for the three months ended March 31, 2015 and 2014, respectively. Prosper recorded internal-use software and website development impairment charges of $nil and $215 thousand for the three months ended March 31, 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): | ||||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
Property and equipment: | ||||||||||
Internal-use software and web site development costs | $ | 8,022 | $ | 4,042 | ||||||
Less accumulated depreciation and amortization | (4,058 | ) | (2,917 | ) | ||||||
Total property and equipment, net | $ | 3,964 | $ | 1,125 | ||||||
Depreciation expense for the three months ended March 31, 2015 and 2014 was $1,220 thousand and $277 thousand, respectively. |
Borrower_Loans_Loans_Held_for_
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 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 and Notes funded through the Note Channel 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 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 March 31, 2015 and December 31, 2014, are presented in the following table (in thousands): | |||||||||||||||||||||||||
Borrower Loans | Notes | Loans Held for Sale | |||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Aggregate principal balance outstanding | $ | 275,879 | $ | 268,598 | $ | (279,455 | ) | $ | (272,267 | ) | $ | 1,573 | $ | 8,295 | |||||||||||
Fair value adjustments | 4,525 | 4,645 | (1,346 | ) | (1,516 | ) | 26 | 168 | |||||||||||||||||
Fair value | $ | 280,404 | $ | 273,243 | $ | (280,801 | ) | $ | (273,783 | ) | $ | 1,599 | $ | 8,463 | |||||||||||
At March 31, 2015, Borrower Loans, loans held for sale and Notes had original terms to maturity of between 36 months and 60 months, had monthly payments with fixed interest rates ranging from 5.77% to 33.04% and had various maturity dates through March 2020. At December 31, 2014, Borrower Loans, Notes and loans held for sale had original maturities between 36 and 60 months, had monthly payments with fixed interest rates ranging from 5.77% to 33.04% and had various maturity dates through December 2019. | |||||||||||||||||||||||||
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 March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||
Range | |||||||||||||||||||||||||
Unobservable Input | March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Discount rate | 2.8%-10.1% | 3.3%-10.6% | |||||||||||||||||||||||
Default rate | 2.6%-18.8% | 2.5%-18.6% | |||||||||||||||||||||||
Key economic assumptions and the sensitivity of the current fair value to immediate adverse changes in those assumptions at March 31, 2015 Borrower Loans, loans held for sale and Notes funded through the Note Channel are presented in the following table (in thousands): | |||||||||||||||||||||||||
Borrower Loans / | Notes | ||||||||||||||||||||||||
Loans Held for Sale | |||||||||||||||||||||||||
Discount rate assumption: | 4.61 | %* | 4.61 | %* | |||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point increase | $ | 278,837 | $ | 277,641 | |||||||||||||||||||||
200 basis point increase | 275,756 | 274,567 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point decrease | $ | 285,261 | $ | 284,051 | |||||||||||||||||||||
200 basis point decrease | 288,612 | 287,394 | |||||||||||||||||||||||
Default rate assumption: | 11.95 | %* | 11.95 | %* | |||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
200 basis point decrease | $ | 289,030 | $ | 287,800 | |||||||||||||||||||||
100 basis point decrease | 285,527 | 284,310 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point increase | $ | 278,513 | $ | 277,324 | |||||||||||||||||||||
200 basis point increase | 275,089 | 273,914 | |||||||||||||||||||||||
* | 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 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. | |||||||||||||||||||||||||
The changes in the Borrower Loans, loans held for sale and Notes, which are Level 3 assets measured at fair value on a recurring basis are as follows (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Borrower | Notes | Loans Held | Total | ||||||||||||||||||||||
Loans | for Sale | ||||||||||||||||||||||||
Balance at January 1, 2014 | $ | 233,105 | $ | (234,218 | ) | $ | 3,206 | $ | 2,093 | ||||||||||||||||
Purchase of Borrower Loans/Issuance of Notes | 44,256 | (43,933 | ) | 150,787 | 151,110 | ||||||||||||||||||||
Principal repayments | (28,245 | ) | 28,326 | - | 81 | ||||||||||||||||||||
Borrower Loans sold to third parties | - | - | (150,510 | ) | (150,510 | ) | |||||||||||||||||||
Other changes | (39 | ) | 173 | (1 | ) | 133 | |||||||||||||||||||
Change in fair value | (4,150 | ) | 4,317 | - | 167 | ||||||||||||||||||||
Balance at March 31, 2014 | $ | 244,927 | $ | (245,335 | ) | $ | 3,482 | $ | 3,074 | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Borrower | Notes | Loans Held | Total | ||||||||||||||||||||||
Loans | for Sale | ||||||||||||||||||||||||
Balance at January 1, 2015 | $ | 273,243 | $ | (273,783 | ) | $ | 8,463 | $ | 7,923 | ||||||||||||||||
Purchase of Borrower Loans/Issuance of Notes | 47,714 | (47,796 | ) | 540,924 | 540,842 | ||||||||||||||||||||
Principal repayments | (36,063 | ) | 36,069 | (364 | ) | (358 | ) | ||||||||||||||||||
Borrower Loans sold to third parties | - | - | (547,309 | ) | (547,309 | ) | |||||||||||||||||||
Other changes | 6 | 207 | (8 | ) | 205 | ||||||||||||||||||||
Change in fair value | (4,496 | ) | 4,502 | (107 | ) | (101 | ) | ||||||||||||||||||
Balance at March 31, 2015 | $ | 280,404 | $ | (280,801 | ) | $ | 1,599 | $ | 1,202 | ||||||||||||||||
Approximately $4.8 million and $4.6 million represents the aggregate adverse fair value adjustments that were recorded to charge off Borrower Loans during the three months ending March 31, 2015 and March 31, 2014 respectively. | |||||||||||||||||||||||||
As of March 31, 2015, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $1.3 million and a fair value of $0.5 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 March 31, 2015 and December 31, 2014, Borrower Loans in non-accrual status had a fair value of $0. | |||||||||||||||||||||||||
Prosper Funding LLC [Member] | |||||||||||||||||||||||||
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value | 4. Borrower Loans, Loans Held For Sale and Notes Held at Fair Value | ||||||||||||||||||||||||
The fair value of the Borrower Loans and Notes funded through the Note Channel 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 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 March 31, 2015 and December 31, 2014, are presented in the following table (in thousands): | |||||||||||||||||||||||||
Borrower Loans | Notes | Loans Held for Sale | |||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Aggregate principal balance outstanding | $ | 275,879 | $ | 268,593 | $ | (279,455 | ) | $ | (272,270 | ) | $ | 1,573 | $ | 8,295 | |||||||||||
Fair value adjustments | 4,525 | 4,650 | (1,346 | ) | (1,513 | ) | 26 | 168 | |||||||||||||||||
Fair value | $ | 280,404 | $ | 273,243 | $ | (280,801 | ) | $ | (273,783 | ) | $ | 1,599 | $ | 8,463 | |||||||||||
At March 31, 2015, Borrower Loans, loans held for sale and Notes had original terms to maturity of between 36 months and 60 months, had monthly payments with fixed interest rates ranging from 5.77% to 33.04 and had various maturity dates through March 2020. At December 31, 2014, Borrower Loans, Notes and loans held for sale had original maturities between 36 and 60 months, had monthly payments with fixed interest rates ranging from 5.77% to 33.04% and had various maturity dates through December 2019. | |||||||||||||||||||||||||
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 March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||
Range | |||||||||||||||||||||||||
Unobservable Input | March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Discount rate | 2.8%-10.1% | 3.3%-10.6% | |||||||||||||||||||||||
Default rate | 2.6%-18.8% | 2.5%-18.6% | |||||||||||||||||||||||
Key economic assumptions and the sensitivity of the current fair value to immediate changes in those assumptions at March 31, 2015 for Borrower Loans, loans held for sale and Notes funded are presented in the following table (in thousands): | |||||||||||||||||||||||||
Borrower | Notes | ||||||||||||||||||||||||
Loans / | |||||||||||||||||||||||||
Loans Held | |||||||||||||||||||||||||
for Sale | |||||||||||||||||||||||||
Discount rate assumption: | 4.61 | %* | 4.61 | %* | |||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point increase | $ | 278,837 | $ | 277,641 | |||||||||||||||||||||
200 basis point increase | 275,756 | 274,567 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point decrease | $ | 285,261 | $ | 284,051 | |||||||||||||||||||||
200 basis point decrease | 288,612 | 287,394 | |||||||||||||||||||||||
Default rate assumption: | 11.95 | %* | 11.95 | %* | |||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
200 basis point decrease | $ | 289,030 | $ | 287,800 | |||||||||||||||||||||
100 basis point decrease | 285,527 | 284,310 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point increase | $ | 278,513 | $ | 277,324 | |||||||||||||||||||||
200 basis point increase | 275,089 | 273,914 | |||||||||||||||||||||||
* | 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 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. | |||||||||||||||||||||||||
The changes in the Borrower Loans, loans held for sale and Notes, which are Level 3 assets measured at fair value on a recurring basis are as follows (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Held for | |||||||||||||||||||||||||
Borrower Loans | Notes | Sale | Total | ||||||||||||||||||||||
Balance at January 1, 2014 | $ | 233,105 | $ | (234,218 | ) | $ | 3,206 | $ | 2,093 | ||||||||||||||||
Originations | 44,213 | (43,933 | ) | 150,787 | 151,067 | ||||||||||||||||||||
Principal repayments | (28,244 | ) | 28,326 | - | 82 | ||||||||||||||||||||
Borrower Loans sold to third parties | - | - | (150,510 | ) | (150,510 | ) | |||||||||||||||||||
Other changes | (39 | ) | 173 | (1 | ) | 133 | |||||||||||||||||||
Change in fair value | (4,107 | ) | 4,317 | - | 210 | ||||||||||||||||||||
Balance at March 31, 2014 | $ | 244,928 | $ | (245,335 | ) | ) | $ | 3,482 | $ | 3,075 | |||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Held for | |||||||||||||||||||||||||
Borrower Loans | Notes | Sale | Total | ||||||||||||||||||||||
Balance at January 1, 2015 | $ | 273,243 | $ | (273,783 | ) | $ | 8,463 | $ | 7,923 | ||||||||||||||||
Originations | 47,714 | (47,796 | ) | 540,924 | 540,842 | ||||||||||||||||||||
Principal repayments | (36,063 | ) | 36,069 | (364 | ) | (358 | ) | ||||||||||||||||||
Borrower Loans sold to third parties | - | - | (547,309 | ) | (547,309 | ) | |||||||||||||||||||
Other changes | 6 | 207 | (8 | ) | 205 | ||||||||||||||||||||
Change in fair value | (4,496 | ) | 4,502 | (107 | ) | (101 | ) | ||||||||||||||||||
Balance at March 31, 2015 | $ | 280,404 | $ | (280,801 | ) | $ | 1,599 | $ | 1,202 | ||||||||||||||||
Approximately $4.8 million and $4.6 million represents the aggregate adverse fair value adjustments that were recorded to charge off Borrower Loans during the three months ending March 31, 2015 and March 31, 2014 respectively. | |||||||||||||||||||||||||
As March 31, 2015, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $1.3 million and a fair value of $0.5 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 March 31, 2015 and December 31, 2014, Borrower Loans in non-accrual status had a fair value of $0. |
Loan_Servicing_Assets_and_Liab
Loan Servicing Assets and Liabilities | 3 Months Ended | |||||||||
Mar. 31, 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 $0.3 million for the three months ended March 31, 2014. The total gain recognized on the sale of Borrower Loans sold to unrelated third-party buyers was $1.9 million for the three months ended March 31, 2015. | ||||||||||
As of March 31, 2015, Borrower Loans that were facilitated and subsequently sold but for which Prosper retained servicing rights had a total outstanding principle balance of $1,796 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.00% to 31.90% and maturity dates through March 2020. At December 31, 2014, Borrower Loans that were facilitated and subsequently sold but for which Prosper retained servicing rights had a total outstanding principle balance of $1.36 billion, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and maturity dates through December 2019. | ||||||||||
The fair value of the loan servicing assets and liabilities is determined using a discounted cash flow model that includes the market servicing rate, the default rate and discount rate as important inputs. For more details refer to Part IV - Item 15 – Exhibits, Financial Statement Schedules - Note 5 – Loan Servicing Assets and Liabilities Prosper’s Annual Report. | ||||||||||
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 March 31, 2015 and December 31, 2014: | ||||||||||
Range | ||||||||||
Unobservable Input | March 31, 2015 | December 31, 2014 | ||||||||
Discount rate | 15% - 25% | 15% - 25% | ||||||||
Default rate | 2.0% - 19.8% | 2.6% - 26.3% | ||||||||
Market servicing rate | 0.63% | 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 three months ended March 31, 2015 (in thousands). | ||||||||||
Servicing | Servicing | |||||||||
Assets | 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 | 2,078 | 154 | ||||||||
Less: Changes in fair value | (753 | ) | (81 | ) | ||||||
Fair value at March 31, 2015 | $ | 6,034 | $ | 668 | ||||||
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 March 31, 2015 (in thousands, except percentages). | ||||||||||
Servicing | Servicing | |||||||||
Assets | Liabilities | |||||||||
Weighted average market servicing rate assumptions | 0.625 | % | 0.625 | % | ||||||
Resulting fair value from: | ||||||||||
Market servicing rate increase to 0.65% | $ | 5,594 | $ | (734 | ) | |||||
Market servicing rate decrease to 0.60% | $ | 6,487 | $ | (601 | ) | |||||
Weighted average default assumptions | 13 | % | 13 | % | ||||||
Resulting fair value from: | ||||||||||
100 basis point increase | $ | 5,930 | $ | (667 | ) | |||||
100 basis point decrease | $ | 6,152 | $ | (669 | ) | |||||
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 $0.3 million for the three months ended March 31, 2014. 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 $1.9 million for the three months ended March 31, 2015. | ||||||||||
At March 31, 2015, Borrower Loans that were facilitated and subsequently sold, but for which Prosper Funding retained servicing rights had a total outstanding principal balance of $1,448 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.00% to 31.90% and maturity dates through March 2020. At December 31, 2014, Borrower Loans that were facilitated and subsequently sold, but for which Prosper Funding retained servicing rights had a total outstanding principal balance of $1,045 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and maturity dates through December 2019. | ||||||||||
The fair value of the loan servicing assets and liabilities is determined using a discounted cash flow model that includes the market servicing rate, the default rate and discount rate as important inputs. For more details refer to Part IV - Item 15 – Exhibits, Financial Statement Schedules - Note 5 – Loan Servicing Assets and Liabilities in the Prosper Funding’s Annual Report. | ||||||||||
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 March 31, 2015 and December 31, 2014: | ||||||||||
Range | ||||||||||
Unobservable Input | 31-Mar-15 | 31-Dec-14 | ||||||||
Discount rate | 15% - 25% | 15% - 25% | ||||||||
Default rate | 2.0% - 19.8% | 2.6% - 26.3% | ||||||||
Market servicing rate | 0.63% | 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 | 2,078 | 154 | ||||||||
Less: Transfers to PMI | (249 | ) | - | |||||||
Less: changes in fair value | (562 | ) | (81 | ) | ||||||
Fair value at March 31, 2015 | $ | 4,782 | $ | 668 | ||||||
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 March 31, 2015 (in thousands, except percentages). | ||||||||||
Servicing | Servicing | |||||||||
Assets | Liabilities | |||||||||
Weighted average market servicing rate assumptions | 0.625 | % | 0.625 | % | ||||||
Resulting fair value from: | ||||||||||
Servicing rate increase to 0.65% | $ | 4,428 | $ | (734 | ) | |||||
Servicing rate decrease to 0.60% | $ | 5,135 | $ | (601 | ) | |||||
Weighted average default assumptions | 13 | % | 13 | % | ||||||
Resulting fair value from: | ||||||||||
100 basis point increase | $ | 4,694 | $ | (667 | ) | |||||
100 basis point decrease | $ | 4,870 | $ | (669 | ) | |||||
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_Ac
American HealthCare Lending Acquisition | 3 Months Ended | ||||||||||||||||
Mar. 31, 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 $0.8M in cash one year after the closing date subject to general representations. | |||||||||||||||||
PHL is a patient financing company for healthcare providers in the cosmetic, dentistry, bariatric surgery, fertility, plastic surgery and other markets. Prosper has included the financial results of PHL in the condensed consolidated financial statements from the date of acquisition. The amounts of net revenue and loss of PHL included in Prosper’s condensed consolidated statement of operations from the merger date of January 23, 2015 to March 31, 2015 were $0.6 million and $0.3 million, respectively. Prosper recorded acquisition-related expenses of $0.2 million for the three months ended March 31, 2015, which is included in general and administrative expense. | |||||||||||||||||
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 March 31, 2015 are as follows (in thousands): | |||||||||||||||||
31-Mar-15 | |||||||||||||||||
Gross | Accumulated | Net | Remaining | ||||||||||||||
Carrying Value | Amortization | Carrying Value | Useful Life | ||||||||||||||
(In Years) | |||||||||||||||||
Customer relationships | $ | 2,650 | $ | (41 | ) | $ | 2,609 | 10 | |||||||||
Technology | 810 | (45 | ) | 765 | 3 | ||||||||||||
Brand name | 60 | (10 | ) | 50 | 1 | ||||||||||||
Total intangible assets subject to amortization | $ | 3,520 | $ | (96 | ) | $ | 3,424 | ||||||||||
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 months ended March 31, 2015 was $96 thousand. | |||||||||||||||||
Prosper valued customer relationships, technology and brand name using the income approach. Significant assumptions include forecasts of revenues, costs of revenues, operating expenses and customer attrition rates for customers. |
Net_Loss_Per_Share
Net Loss Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Net Loss Per Share | 7. Net Loss Per Share | ||||||||
The weighted average shares used in calculating basic and diluted net loss per share excludes certain shares that are disclosed as outstanding shares in the 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 loss per share was calculated as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net loss available to common stockholders for basic | $ | (7,276 | ) | $ | (2,718 | ) | |||
and diluted EPS | |||||||||
Denominator: | |||||||||
Weighted average shares used in computing basic and | 10,553,251 | 8,056,248 | |||||||
diluted net loss per share | |||||||||
Basic and diluted net loss per share | $ | (0.69 | ) | $ | (0.34 | ) | |||
Due to losses attributable to Prosper’s common shareholders for each of the periods below, the following potentially dilutive shares are excluded from the diluted net loss per share calculation because they were anti-dilutive under the treasury stock method, in accordance with ASC Topic 260: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
(shares) | (shares) | ||||||||
Excluded securities: | |||||||||
Convertible preferred stock issued and outstanding | 30,699,957 | 27,274,068 | |||||||
Stock options issued and outstanding | 7,038,728 | 4,359,556 | |||||||
Unvested stock options exercised | 3,727,042 | 5,054,772 | |||||||
Warrants issued and outstanding | 125,293 | 218,810 | |||||||
Total common stock equivalents excluded from | 41,591,020 | 36,907,206 | |||||||
diluted net loss per common share computation | |||||||||
Convertible_Preferred_Stock_an
Convertible Preferred Stock and Stockholders' Deficit | 3 Months Ended | ||||||||||||||||
Mar. 31, 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. | |||||||||||||||||
The number of authorized, issued and outstanding shares, their par value and liquidation preference for each series of convertible preferred stock as of March 31, 2015 are disclosed in the table below (amounts in thousands except share and per share amounts): | |||||||||||||||||
Convertible Preferred Stock | Par Value | Authorized | Outstanding | Liquidation | |||||||||||||
shares | and Issued | Preference | |||||||||||||||
shares | |||||||||||||||||
New Series A | $ | 0.01 | 13,868,152 | 13,711,644 | $ | 19,774 | |||||||||||
Series A-1 | 0.01 | 5,117,182 | 4,952,183 | 49,522 | |||||||||||||
New Series B | 0.01 | 8,288,734 | 7,155,176 | 21,581 | |||||||||||||
New Series C | 0.01 | 4,880,954 | 4,880,954 | 70,075 | |||||||||||||
32,155,022 | 30,699,957 | $ | 160,952 | ||||||||||||||
Common Stock | |||||||||||||||||
Prosper, through its amended and restated certificate of incorporation, is the sole issuer of common stock and related options and warrants. In May 2014, 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 81,083,905, consisting of 48,928,883 shares of common stock, $0.01 par value per share, and 32,155,022 shares of preferred stock, $0.01 par value per share. As of March 31, 2015, 14,878,514 shares of common stock were issued and 14,691,237 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. | |||||||||||||||||
Common Stock Issued upon Exercise of Stock Options | |||||||||||||||||
During the three months ended March 31, 2015 Prosper issued 308,750 shares of common stock, upon the exercise of options for cash proceeds of $0.54 million, of which 9,459 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 March 31, 2015 and December 31, 2014, there were 3,637,042 and 4,114,269 shares respectively of restricted stock outstanding that remain unvested and subject to Prosper’s right of repurchase. | |||||||||||||||||
For the three months ended March 31, 2015, Prosper repurchased 1,875 shares of restricted stock for $1 thousand upon termination of employment of various employees. | |||||||||||||||||
Common Stock Issued upon Exercise of Warrants | |||||||||||||||||
For the three months ended March 31, 2015, Prosper issued 32,939 shares of common stock upon the exercise of warrants for aggregate proceeds of $111 thousand. |
Stock_Option_Plan_and_Compensa
Stock Option Plan and Compensation | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 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”). As of March 31, 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. Options generally vest 25% one year from the vesting commencement date and 1/48th per month thereafter. In no event are options exercisable more than ten years after the date of grant. | |||||||||||||||||||||
At March 31, 2015, there were 138,289 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 three months ended March 31, 2015 is below: | |||||||||||||||||||||
Early exercised | Weighted average | ||||||||||||||||||||
options, unvested | exercise price | ||||||||||||||||||||
Balance as of January 1, 2015 | 4,112,269 | $ | 0.25 | ||||||||||||||||||
Exercise of non-vested stock options | 9,459 | 2.18 | |||||||||||||||||||
Repurchase of restricted stock | (1,875 | ) | 0.57 | ||||||||||||||||||
Restricted stock vested | (482,811 | ) | 0.17 | ||||||||||||||||||
Balance as of March 31, 2015 | 3,637,042 | $ | 0.26 | ||||||||||||||||||
Additional information regarding the unvested early exercised stock options outstanding as of March 31, 2015 is as follows: | |||||||||||||||||||||
Options Outstanding | |||||||||||||||||||||
Range of | |||||||||||||||||||||
Exercise | Number | Weighted –Avg. | Weighted –Avg. | ||||||||||||||||||
Prices | Outstanding | Remaining Life | Exercise Price | ||||||||||||||||||
$0.10 - $0.10 | 3,111,922 | 1.89 | $ | 0.1 | |||||||||||||||||
0.57 - 0.57 | 458,981 | 2.97 | 0.57 | ||||||||||||||||||
5.65-5.65 | 66,139 | 3.33 | 5.65 | ||||||||||||||||||
$0.10 - $5.65 | 3,637,042 | 2.06 | $ | 0.26 | |||||||||||||||||
Stock Option Activity | |||||||||||||||||||||
Stock option activity under the 2005 Plan is summarized for the three months ended March 31, 2015 below: | |||||||||||||||||||||
Options | Weighted- | ||||||||||||||||||||
Issued and | Average | ||||||||||||||||||||
Outstanding | Exercise | ||||||||||||||||||||
Price | |||||||||||||||||||||
Balance as of January 1, 2015 | 4,994,998 | $ | 1.85 | ||||||||||||||||||
Options granted | 2,469,314 | 18.11 | |||||||||||||||||||
Options exercised – vested | (299,291 | ) | 1.74 | ||||||||||||||||||
Options exercised – nonvested | (9,459 | ) | 2.18 | ||||||||||||||||||
Options forfeited | (116,834 | ) | 6.02 | ||||||||||||||||||
Balance as of March 31, 2015 | 7,038,728 | 7.49 | |||||||||||||||||||
Options vested and exercisable at March 31, 2015 | 6,006,329 | 8.1 | |||||||||||||||||||
For the three months ended March 31, 2015, Prosper granted stock options to purchase 2,469,314 shares of common stock with a weighted average exercise price of $18.11 per share, a weighted average grant date fair value of $16.04 per share and an estimated aggregate fair value of approximately $39.6 million. | |||||||||||||||||||||
Other Information Regarding Stock Options | |||||||||||||||||||||
Additional information regarding common stock options outstanding as of March 31, 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 - $0.10 | 157,040 | 8.38 | $ | 0.1 | 73,756 | $ | 0.1 | ||||||||||||||
0.57 - 0.57 | 3,100,551 | 8.87 | 0.57 | 2,120,600 | 0.57 | ||||||||||||||||
1.20 – 1.20 | 70,999 | 6.45 | 1.2 | 63,742 | 1.2 | ||||||||||||||||
1.70 – 1.70 | 48,019 | 7.01 | 1.7 | 36,990 | 1.7 | ||||||||||||||||
2.00 – 2.00 | 90,310 | 5.34 | 2 | 90,310 | 2 | ||||||||||||||||
5.00 - 5.00 | 7,000 | 1.5 | 5 | 7,000 | 5 | ||||||||||||||||
5.60 - 5.60 | 18,250 | 4.46 | 5.6 | 18,250 | 5.6 | ||||||||||||||||
5.65-5.65 | 1,105,245 | 9.46 | 5.65 | 2,884 | 5.65 | ||||||||||||||||
$18.11-$18.11 | 2,441,314 | 9.89 | 18.11 | - | 18.11 | ||||||||||||||||
$0.10 - $18.11 | 7,038,728 | 8.1 | $ | 7.49 | 2,413,532 | $ | 0.7 | ||||||||||||||
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, 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 publically traded, the expected volatility of its stock 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 ended March 31, 2015 and 2014 was estimated at the date of grant using the Black-Scholes model with the following average assumptions: | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Volatility of common stock | 55.59 | % | 73.31 | % | |||||||||||||||||
Risk-free interest rate | 1.61 | % | 1.92 | % | |||||||||||||||||
Expected life | 5.7 years | 6.1 years | |||||||||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||||||
During the three months ended March 31, 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 months ended March 31, 2015 and 2014 (in thousands): | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Origination and servicing | $ | 144 | $ | 63 | |||||||||||||||||
Sales and marketing | 388 | 16 | |||||||||||||||||||
General and administrative | 907 | 171 | |||||||||||||||||||
Total stock based compensation | $ | 1,439 | $ | 250 | |||||||||||||||||
During the three months ended March 31, 2015 and 2014, Prosper capitalized $122 thousand and $5 thousand respectively, of stock-based compensation as internal use software and website development costs. As of March 31, 2015, the unamortized stock-based compensation expense related to Prosper’s employees’ unvested stock-based awards was approximately $32.8 million, which will be recognized over the remaining weighted-average vesting period of approximately 3.8 years. | |||||||||||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Income Taxes | 10. Income Taxes | ||||
For the three months ended March 31, 2015, Prosper recognized $73 thousand of income tax expense. The $73 thousand of tax expense relates to 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 months ended March 31, 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 March 31, 2015 is $4.9 million related to the uncertainty of whether Prosper will be allowed to utilize certain California NOL carryforwards to offset future taxable income due to Section 382 and the uncertainty relate to our utilization of certain R&D credits. 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, this overstated 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 March 31, 2015 | $ | 4,927 | |||
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 months ended March 31, 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 | 3 Months Ended | ||||
Mar. 31, 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 June 2022. | |||||
Future minimum rental payments under these leases as of March 31, 2015 are as follows: | |||||
Remaining nine months of 2015 | 2,742 | ||||
2016 | 4,239 | ||||
2017 | 3,866 | ||||
2018 | 3,977 | ||||
2019 | 4,093 | ||||
2020 | 4,210 | ||||
Thereafter | 8,808 | ||||
Total future operating lease obligations | $ | 31,935 | |||
Rental expense under operating lease arrangements was $0.8 million and $0.1 million for the three months ended March 31, 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 $26.2 million of Borrower Loans that WebBank is originating within the first two business days of the three months ended June 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 March 31, 2015 is $1,796 million. Prosper has accrued $212 thousand and $171 thousand as of March 31, 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 $1million 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 March 31, 2015, Prosper has entered into consent orders with 34 states and has paid an aggregate of $0.47 million in penalties to those states. | |||||
As of March 31, 2015 and December 31, 2014, Prosper has accrued approximately $0.25 million and $0.25 million, respectively, in connection with the contingent liability associated with the states that have not entered into consent orders, in accordance with ASC Topic 450, Contingencies. The methodology applied to estimate the accrual was to divide the $1 million maximum fee pro-rata by state, using 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 March 31, 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 $26.2 million of Borrower Loans that WebBank will originate within the first two business days of April 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 March 31, 2015 is $1.4 billion. Prosper Funding had accrued $161 thousand and $171 thousand as of March 31, 2015 and December 31, 2014 in regard to this obligation, respectively. |
Related_Parties
Related Parties | 3 Months Ended | ||||||||||||||||
Mar. 31, 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 months ended March 31, 2015 and 2014, as well as the Notes outstanding as of March 31, 2015 and December 31, 2014 are summarized below (in thousands): | |||||||||||||||||
Aggregate Amount of | Interest Earned on Notes | ||||||||||||||||
Notes Purchased | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
March 31, | 31-Mar | ||||||||||||||||
Related Party | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Executive officers and management | $ | 479 | $ | 214 | $ | 47 | $ | 36 | |||||||||
Directors | 10 | $ | 2 | $ | 2 | $ | 3 | ||||||||||
Total | $ | 489 | $ | 216 | $ | 49 | $ | 39 | |||||||||
Notes Balance as of | |||||||||||||||||
Related Party | March 31, | December 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||||
Executive officers and management | $ | 1,842 | $ | 1,614 | |||||||||||||
Directors | 96 | 76 | |||||||||||||||
$ | 1,938 | $ | 1,690 | ||||||||||||||
Prosper has earned approximately $4 thousand and $6 thousand in servicing fee revenue related to these Notes for the three months ended March 31, 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 March 31, 2015 and December 31, 2014 are summarized below (in thousands): | |||||||||||||||||
Aggregate Amount of | Interest Earned on Notes | ||||||||||||||||
Notes Purchased | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
March 31, | 31-Mar | ||||||||||||||||
Related Party | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Executive officers and management | $ | 479 | $ | 214 | $ | 47 | $ | 36 | |||||||||
Directors | - | - | - | - | |||||||||||||
Total | $ | 479 | $ | 214 | $ | 47 | $ | 36 | |||||||||
Note Balance as of | |||||||||||||||||
Related Party | March 31, | December 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||||
Executive officers and management | $ | 1,842 | $ | 1,614 | |||||||||||||
Directors | - | - | |||||||||||||||
$ | 1,842 | $ | 1,614 | ||||||||||||||
Prosper Funding has earned approximately $4 thousand and $6 thousand in servicing fee revenue related to these Notes for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||
Postretirement_Benefit_Plans
Postretirement Benefit Plans | 3 Months Ended |
Mar. 31, 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 up to 90% of 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 March 31, 2015 and 2014, Prosper has contributed $0.4 million and $nil to the 401 (k) plan. | |
Segments
Segments | 3 Months Ended |
Mar. 31, 2015 | |
Segment Reporting [Abstract] | |
Segments | 14. Segments |
Prosper’s chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. As such, Prosper has a single reporting segment and operating unit structure. |
Restatement_of_Condensed_Conso
Restatement of Condensed Consolidated Financial Statements | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 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 months ended March 31, 2014, Prosper identified errors that affected the interim condensed financial statements as of and for the three months ended March 31, 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 $389 thousand. | |||||||||||||||||||||
Prosper also discovered that certain rebates offered on the sale of loans and Notes were incorrectly classified as transaction fee revenue and should have been classified as other revenue or change in fair value of Borrower Loans, loans held for sale and Notes. This resulted in an understatement of transaction fee revenues of $232 thousand, an overstatement of other revenues of $188 thousand and an overstatement of change in fair values of Borrower Loans, loans held for sale and Notes of $44 thousand. | |||||||||||||||||||||
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 overstatement of the gain recognized on the sale of Borrower Loans which was included in other revenues of $20 thousand. Furthermore, Prosper inappropriately classified loan servicing rights in “Borrower Loans Receivable at Fair Value”. Prosper corrected this error by reclassifying the gross serving assets to “Prepaid and Other Assets and recognized the servicing liabilities in “Accounts Payable and Other Liabilities. | |||||||||||||||||||||
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 $42 thousand. As well property and equipment was overstated. | |||||||||||||||||||||
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 certain Restricted Cash balances related to investing activities were inappropriately classified as changes in cash flows from operating activities rather than changes in cash flows from investing activities. | ||||||||||||||||||||
● | Cash flows from the principal payments and proceeds from sale related to Borrower Loans held for sale were inappropriately classified within cash flows from investing activities rather than cash flows from operating activities. | ||||||||||||||||||||
● | A portion of the change in fair value of Borrower Loans and Notes was inappropriately reflected as a cash flow from investing and financing activities, respectively, rather than an adjustment to reconcile net income to net cash used in operating activities. | ||||||||||||||||||||
● | The proceeds from sale of borrower loans held at fair value were netted against purchase of borrower loans at fair value. | ||||||||||||||||||||
● | Other changes related to the correction of errors in the balance sheet and statement of operations as described above. | ||||||||||||||||||||
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 understated by 1,188,095 shares. | |||||||||||||||||||||
The following tables present the impact of these corrections and corrections of other immaterial errors on three months ended March 31, 2014 ($ in thousands): | |||||||||||||||||||||
Consolidated Statement of Operations – Three months ended March 31, 2014 | |||||||||||||||||||||
As previously | Reclassifications* | As | Adjustments | As | |||||||||||||||||
reported | reclassified | corrected | |||||||||||||||||||
Revenue | |||||||||||||||||||||
Operating Revenue | |||||||||||||||||||||
Transaction Fees, Net | $ | 8,701 | $ | (231 | ) | $ | 8,470 | $ | (106 | ) | $ | 8,364 | |||||||||
Rebates and Promotions | (361 | ) | 361 | - | - | - | |||||||||||||||
Servicing Fees, Net | - | 99 | 99 | 315 | 414 | ||||||||||||||||
Other Revenue | 696 | - | 696 | (245 | ) | 451 | |||||||||||||||
Total Operating Revenue | 9,036 | 229 | 9,265 | (36 | ) | 9,229 | |||||||||||||||
Interest Income on Borrower Loans | 10,109 | (228 | ) | 9,881 | 124 | 10,005 | |||||||||||||||
Interest Expense on Notes | (9,269 | ) | (9,269 | ) | (153 | ) | (9,422 | ) | |||||||||||||
Net Interest Income | 840 | (228 | ) | 612 | (29 | ) | 583 | ||||||||||||||
Change in Fair Value on Borrower Loans, Loans Held for | 298 | - | 298 | (131 | ) | 167 | |||||||||||||||
Sale and Notes, net | |||||||||||||||||||||
Total Net Revenue | 10,174 | 1 | 10,175 | (196 | ) | 9,979 | |||||||||||||||
Cost of Revenue | |||||||||||||||||||||
Cost of Services | (525 | ) | 525 | - | - | - | |||||||||||||||
Provision for repurchase and indemnification obligation | (62 | ) | 62 | - | - | - | |||||||||||||||
(587 | ) | 587 | - | - | - | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | 3,901 | (3,901 | ) | - | - | - | |||||||||||||||
Marketing and advertising | 5,986 | (5,986 | ) | - | - | - | |||||||||||||||
Depreciation and amortization | 363 | (363 | ) | - | - | - | |||||||||||||||
Professional services | 176 | (176 | ) | - | - | - | |||||||||||||||
Facilities and maintenance | 445 | (445 | ) | - | - | ||||||||||||||||
Loss on impairment | 215 | (215 | ) | - | - | - | |||||||||||||||
Other | 668 | (668 | ) | - | - | - | |||||||||||||||
Origination and Servicing | - | 2,131 | 2,131 | 160 | 2,291 | ||||||||||||||||
Sales and Marketing | - | 6,424 | 6,424 | 10 | 6,434 | ||||||||||||||||
General and Administrative | - | 3,786 | 3,786 | 186 | 3,972 | ||||||||||||||||
Total Expenses | 11,754 | 587 | 12,341 | 356 | 12,697 | ||||||||||||||||
Other income | 1 | (1 | ) | - | - | - | |||||||||||||||
Total Net Income | $ | (2,166 | ) | $ | - | $ | (2,166 | ) | $ | (552 | ) | $ | (2,718 | ) | |||||||
*See note 1 for a description of the reclassifications. | |||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows – Three months ended March 31, 2014 | |||||||||||||||||||||
As previously | |||||||||||||||||||||
reported | Adjustments | As corrected | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net Loss | $ | (2,166 | ) | $ | (552 | ) | $ | (2,718 | ) | ||||||||||||
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 | - | (167 | ) | (167 | ) | ||||||||||||||||
Change in Fair Value of Notes | 32 | (32 | ) | - | |||||||||||||||||
Change in Fair Value of Borrower Loans Receivable | (332 | ) | 332 | - | |||||||||||||||||
Change in Fair Value of Loans Held for Sale | 2 | (2 | ) | - | |||||||||||||||||
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | - | (133 | ) | (133 | ) | ||||||||||||||||
Depreciation and Amortization | 363 | 37 | 400 | ||||||||||||||||||
Stock-Based Compensation | 255 | (5 | ) | 250 | |||||||||||||||||
Loss on Impairment of Property and Equipment | 215 | - | 215 | ||||||||||||||||||
Accretion of Class Action Settlement Liability | - | 30 | 30 | ||||||||||||||||||
Change in Servicing Rights | - | (283 | ) | (283 | ) | ||||||||||||||||
Purchase of loans held for sale at fair value | - | (150,787 | ) | (150,787 | ) | ||||||||||||||||
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | - | 150,510 | 150,510 | ||||||||||||||||||
Changes in Operating Assets and Liabilities: | - | ||||||||||||||||||||
Restricted Cash | (1,189 | ) | (3,980 | ) | (5,169 | ) | |||||||||||||||
Accounts Receivable | 36 | (56 | ) | (20 | ) | ||||||||||||||||
Prepaid and Other Assets | (445 | ) | 28 | (417 | ) | ||||||||||||||||
Accounts Payable and Accrued Liabilities | 1,511 | (613 | ) | 898 | |||||||||||||||||
Repurchase liability for unvested stock awards | (105 | ) | 105 | - | |||||||||||||||||
Payable to Investors | - | 5,850 | 5,850 | ||||||||||||||||||
Class Action Settlement Liability | (2,000 | ) | - | (2,000 | ) | ||||||||||||||||
Net Cash Used in Operating Activities | (3,823 | ) | 282 | (3,541 | ) | ||||||||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||||||
Purchase of Borrower Loans Receivable Held at Fair Value | (166,608 | ) | 122,352 | (44,256 | ) | ||||||||||||||||
Principal Payment of Borrower Loans Receivable Held at Fair Value | 32,642 | (4,397 | ) | 28,245 | |||||||||||||||||
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | 121,864 | (121,864 | ) | - | |||||||||||||||||
Repayment of Loans Held for Investment at Fair Value | 100 | (100 | ) | - | |||||||||||||||||
Origination of Loans Held for Investment at Fair Value | (28,858 | ) | 28,858 | - | |||||||||||||||||
Proceeds from sale of Borrower Loans at Fair Value | 28,602 | (28,602 | ) | - | |||||||||||||||||
Purchases of Property and Equipment | (692 | ) | 33 | (659 | ) | ||||||||||||||||
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 | - | (771 | ) | (771 | ) | ||||||||||||||||
Net Cash Used in Investing Activities | (12,950 | ) | (4,494 | ) | (17,444 | ) | |||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Proceeds from Issuance of Notes Held at Fair Value | 44,199 | (266 | ) | 43,933 | |||||||||||||||||
Payment of Notes Held at Fair Value | (32,910 | ) | 4,584 | (28,326 | ) | ||||||||||||||||
Proceeds from Early Exercise of Stock Options | 12 | (2 | ) | 10 | |||||||||||||||||
Proceeds of Restricted Stock Vested | 104 | (104 | ) | - | |||||||||||||||||
Proceeds from Exercise of Vested Stock Options | 4 | - | 4 | ||||||||||||||||||
Net Cash Provided by Financing Activities | $ | 11,409 | $ | 4,212 | $ | 15,621 | |||||||||||||||
Net Decrease in Cash and Cash Equivalents | (5,364 | ) | - | (5,364 | ) | ||||||||||||||||
Cash and Cash Equivalents at Beginning of the Period | 18,339 | - | 18,339 | ||||||||||||||||||
Cash and Cash Equivalents at End of the Period | $ | 12,975 | $ | - | $ | 12,975 | |||||||||||||||
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 months ended March 31, 2014, Prosper Funding identified errors that affected the interim condensed financial statements as of and for the three months ended March 31, 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 net loan servicing rights and an overstatement of the gain recognized on the sale of Borrower Loans which was included in other revenues of $20 thousand. Furthermore, Prosper Funding inappropriately classified loan servicing rights in Borrower Loans Receivable at Fair Value. Prosper Funding corrected this error by reclassifying the gross serving assets to Prepaid and Other Assets and recognized the servicing liabilities in Accounts Payable and Other Liabilities. | |||||||||||||||||||||
Prosper Funding also discovered that the Administration Fee Related Party Expense was understated by $328 thousand, servicing expenses were overstated by $381 thousand and the Related Party Receivable was understated by $53 thousand due to an error in the calculation of the fee and misclassification of certain expenses. | |||||||||||||||||||||
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 $42 thousand which is included in servicing expenses. As well Property and Equipment was overstated. | |||||||||||||||||||||
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 certain Restricted Cash balances related to investing activities were inappropriately classified as changes in cash flows from operating activities rather than changes in cash flows from investing activities. | ||||||||||||||||||||
● | Cash flows from the principal payments and proceeds from sale related to Borrower Loans held for sale were inappropriately classified within cash flows from investing activities rather than cash flows from operating activities. | ||||||||||||||||||||
● | A portion of the change in fair value of Borrower Loans and Notes was inappropriately reflected as a cash flow from investing and financing activities, respectively, rather than an adjustment to reconcile net income to net cash used in operating activities. | ||||||||||||||||||||
Other changes related to the correction of errors in the balance sheet and statement of operations as described above. | |||||||||||||||||||||
The following tables present the impact of these corrections and corrections of other immaterial errors on the interim periods in the three months ended March 31, 2014 (in thousands): | |||||||||||||||||||||
Consolidated Statement of Operations – Three months ended March 31, 2014 | |||||||||||||||||||||
As previously | Reclassifications* | As | Adjustments | As | |||||||||||||||||
reported | reclassified | corrected | |||||||||||||||||||
Revenue | |||||||||||||||||||||
Operating Revenue | |||||||||||||||||||||
Administration Fee Revenue – Related Party | $ | 4,053 | $ | — | $ | 4,053 | $ | — | $ | 4,053 | |||||||||||
Servicing Income, Net | — | 170 | 170 | 253 | 423 | ||||||||||||||||
Other Revenue | 356 | — | 356 | (57 | ) | 299 | |||||||||||||||
Total Operating Revenue | 4,409 | 170 | 4,579 | 196 | 4,775 | ||||||||||||||||
Interest Income on Borrower Loans | 10,057 | (176 | ) | 9,881 | 201 | 10,082 | |||||||||||||||
Interest Expense on Notes | (9,269 | ) | - | (9,269 | ) | (154 | ) | (9,423 | ) | ||||||||||||
Net Interest Income | 788 | (176 | ) | 612 | 47 | 659 | |||||||||||||||
Change in Fair Value on Borrower Loans, Loans Held for Sale and Notes, net | 298 | (1 | ) | 297 | (87 | ) | 210 | ||||||||||||||
Total Net Revenue | 5,495 | (7 | ) | 5,488 | 156 | 5,644 | |||||||||||||||
Cost of Revenue | |||||||||||||||||||||
Cost of Services | (397 | ) | 397 | — | — | — | |||||||||||||||
Provision for repurchase and indemnification obligation | (62 | ) | 62 | — | — | — | |||||||||||||||
(459 | ) | 459 | — | — | — | ||||||||||||||||
Expenses | |||||||||||||||||||||
Servicing | — | 694 | 694 | (296 | ) | 398 | |||||||||||||||
Administration Fee – Related Party | 2,606 | — | 2,606 | 888 | 3,494 | ||||||||||||||||
Depreciation and Amortization | 235 | (235 | ) | — | — | — | |||||||||||||||
Professional Services | 12 | (12 | ) | — | — | — | |||||||||||||||
Other Operating Expenses | 88 | (88 | ) | — | — | — | |||||||||||||||
General and Administration | — | 100 | 100 | 4 | 104 | ||||||||||||||||
Total Expenses | 2,941 | 459 | 3,400 | 596 | 3,996 | ||||||||||||||||
Other income | (7 | ) | 7 | — | — | — | |||||||||||||||
Total Net Income | $ | 2,088 | $ | — | $ | 2,088 | $ | (440 | ) | $ | 1,648 | ||||||||||
*See note 1 for further details on the reclassifications. | |||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows – Three months ended March 31, 2014 | |||||||||||||||||||||
As previously | |||||||||||||||||||||
reported | Adjustments | As corrected | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net Income | $ | 2,088 | $ | (440 | ) | $ | 1,648 | ||||||||||||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: | |||||||||||||||||||||
Change in Fair Value of Notes | 32 | (32 | ) | - | |||||||||||||||||
Change in Fair Value of Borrower Loans Receivable | (332 | ) | 332 | - | |||||||||||||||||
Change in Fair Value of Loans Held for Sale | 2 | (2 | ) | - | |||||||||||||||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | - | (210 | ) | (210 | ) | ||||||||||||||||
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | - | (133 | ) | (133 | ) | ||||||||||||||||
Depreciation and Amortization | 235 | 42 | 277 | ||||||||||||||||||
Change in Servicing Rights | - | (294 | ) | (294 | ) | ||||||||||||||||
Purchase of Loans Held for Sale at Fair Value | - | (150,787 | ) | (150,787 | ) | ||||||||||||||||
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | - | 150,510 | 150,510 | ||||||||||||||||||
Changes in Operating Assets and Liabilities: | - | ||||||||||||||||||||
Restricted Cash | (1,122 | ) | (3,632 | ) | (4,754 | ) | |||||||||||||||
Other Assets | 3 | - | 3 | ||||||||||||||||||
Accounts Payable and Accrued Liabilities | 563 | (474 | ) | 89 | |||||||||||||||||
Payable to Investors | - | 5,684 | 5,684 | ||||||||||||||||||
Net Related Party Payable | (463 | ) | (53 | ) | (516 | ) | |||||||||||||||
Net Cash Used in Operating Activities | 1,006 | 511 | 1,517 | ||||||||||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||||||
Purchase of Borrower Loans Receivable Held at Fair Value | (166,608 | ) | 122,395 | (44,213 | ) | ||||||||||||||||
Principal Payment of Borrower Loans Receivable Held at Fair Value | 32,642 | (4,397 | ) | 28,245 | |||||||||||||||||
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | 121,864 | (121,864 | ) | - | |||||||||||||||||
Repayment of Loans Held for Investment at Fair Value | 100 | (100 | ) | - | |||||||||||||||||
Origination of Loans Held for Investment at Fair Value | (28,858 | ) | 28,858 | - | |||||||||||||||||
Proceeds from Sale of Borrower Loans at Fair Value | 28,602 | (28,602 | ) | - | |||||||||||||||||
Maturities of Short Term Investments | - | 1,271 | 1,271 | ||||||||||||||||||
Purchases of Property and Equipment | - | (1,274 | ) | (1,274 | ) | ||||||||||||||||
Purchases of Property and Equipment | (183 | ) | 3 | (180 | ) | ||||||||||||||||
Changes in Restricted Cash Related to Investing Activities | - | (1,119 | ) | (1,119 | ) | ||||||||||||||||
Net Cash Used in Investing Activities | (12,441 | ) | (4,829 | ) | (17,270 | ) | |||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Proceeds from Issuance of Notes Held at Fair Value | 44,199 | (266 | ) | 43,933 | |||||||||||||||||
Payment of Notes Held at Fair Value | (32,910 | ) | 4,584 | (28,326 | ) | ||||||||||||||||
Net Cash Provided by Financing Activities | 11,289 | 4,318 | 15,607 | ||||||||||||||||||
Net Decrease in Cash and Cash Equivalents | (146 | ) | - | (146 | ) | ||||||||||||||||
Cash and Cash Equivalents at Beginning of the Period | 5,789 | - | 5,789 | ||||||||||||||||||
Cash and Cash Equivalents at End of the Period | $ | 5,643 | $ | - | $ | 5,643 | |||||||||||||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events |
On April 7, 2015, Prosper entered into a Series D Preferred Stock Purchase Agreement with several new investors, pursuant to which Prosper issued and sold to such purchasers 4,777,728 shares of Prosper’s new Series D convertible preferred stock for an aggregate purchase price of $165 million. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 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 months ended March 31, 2015 and 2014, respectively. | |
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 believe 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 operates 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”). ASC Topic 825 permits companies to choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the reader of the financial statements and it allows both the Borrower Loans, loans held for sale and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. | |
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 allows the subsequent adoption of the fair value method at the beginning of any fiscal year. The adoption of the fair value method for a particular class is irrevocable. Prior to January 1, 2015, Prosper measured the servicing assets and liabilities using the amortized cost method. This change resulted in a $575 thousand decrease to accumulated deficit, a $546 thousand increase in net servicing assets and a $29 thousand decrease in net servicing 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.” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The standard will be effective for Prosper in the first quarter of fiscal 2017. Early adoption is not permitted. Prosper is currently assessing the potential impact on its financial statements from adopting this new guidance. | |
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management of a company to evaluate whether there is substantial doubt about the company’s ability to continue as a going concern. This ASU is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods thereafter, with early adoption permitted. Prosper is currently assessing the potential impact on its financial statements from adopting this new guidance. | |
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." ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for periods beginning after December 15, 2015 with early adoption permitted. Prosper has decided to early adopt this guidance effective January 1, 2015, the adoption of this standard had no impact on Prosper’s financial statements. | |
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 months ended March 31, 2015 and 2014, respectively. | |
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”). ASC Topic 825 permits companies to choose to measure certain financial instruments and certain other items at fair value on an instrument-by-instrument basis with unrealized gains and losses on items for which the fair value option has been elected reported in earnings. Management believes that the fair value option is more meaningful for the reader of the financial statements and it allows both the Borrower Loans, loans held for sale and Notes to be valued using the same methodology. The fair value election, with respect to an item, may not be revoked once an election is made. | |
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 allows the subsequent adoption of the fair value method at the beginning of any fiscal year. The adoption of the fair value method for a particular class is irrevocable. Prior to January 1, 2015, Prosper Funding measured the servicing assets and liabilities using the amortized cost method. This change resulted in a $428 thousand increase to retained earnings, a $399 thousand increase in net servicing assets and a $29 thousand decrease in net servicing 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.” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The standard will be effective for Prosper Funding in the first quarter of fiscal 2017. Early adoption is not permitted. Prosper Funding is currently assessing the potential impact on its financial statements from adopting this new guidance. | |
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management of a company to evaluate whether there is substantial doubt about Prosper Funding’s ability to continue as a going concern. This ASU is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods thereafter, with early adoption permitted. Prosper Funding is currently assessing the potential impact on its financial statements from adopting this new guidance. | |
In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for periods beginning after December 15, 2015 with early adoption permitted. Prosper Funding has decided to early adopt this guidance effective January 1, 2015, the adoption of this standard had no impact on Prosper Funding’s financial statements. |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Property and Equipment, Net | Property and equipment consist of the following (in thousands): | |||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
Property and equipment: | ||||||||||
Computer equipment | $ | 6,178 | $ | 3,824 | ||||||
Internal-use software and website development costs | 8,513 | 4,486 | ||||||||
Office equipment and furniture | 1,961 | 1,904 | ||||||||
Leasehold improvements | 5,564 | 5,274 | ||||||||
Assets not yet placed in service | 1,589 | 4,361 | ||||||||
Property and equipment | 23,805 | 19,849 | ||||||||
Less accumulated depreciation and amortization | (7,149 | ) | (5,425 | ) | ||||||
Total property and equipment, net | $ | 16,656 | $ | 14,424 | ||||||
Prosper Funding LLC [Member] | ||||||||||
Property and Equipment, Net | Property and equipment consist of the following (in thousands): | |||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
Property and equipment: | ||||||||||
Internal-use software and web site development costs | $ | 8,022 | $ | 4,042 | ||||||
Less accumulated depreciation and amortization | (4,058 | ) | (2,917 | ) | ||||||
Total property and equipment, net | $ | 3,964 | $ | 1,125 | ||||||
Borrower_Loans_Loans_Held_for_1
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 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 March 31, 2015 and December 31, 2014, are presented in the following table (in thousands): | |||||||||||||||||||||||||
Borrower Loans | Notes | Loans Held for Sale | |||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Aggregate principal balance outstanding | $ | 275,879 | $ | 268,598 | $ | (279,455 | ) | $ | (272,267 | ) | $ | 1,573 | $ | 8,295 | |||||||||||
Fair value adjustments | 4,525 | 4,645 | (1,346 | ) | (1,516 | ) | 26 | 168 | |||||||||||||||||
Fair value | $ | 280,404 | $ | 273,243 | $ | (280,801 | ) | $ | (273,783 | ) | $ | 1,599 | $ | 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 March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||
Range | |||||||||||||||||||||||||
Unobservable Input | March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Discount rate | 2.8%-10.1% | 3.3%-10.6% | |||||||||||||||||||||||
Default rate | 2.6%-18.8% | 2.5%-18.6% | |||||||||||||||||||||||
Fair Value Assumptions for Loans Held for Sale, Borrower Loans and Notes | Key economic assumptions and the sensitivity of the current fair value to immediate adverse changes in those assumptions at March 31, 2015 Borrower Loans, loans held for sale and Notes funded through the Note Channel are presented in the following table (in thousands): | ||||||||||||||||||||||||
Borrower Loans / | Notes | ||||||||||||||||||||||||
Loans Held for Sale | |||||||||||||||||||||||||
Discount rate assumption: | 4.61 | %* | 4.61 | %* | |||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point increase | $ | 278,837 | $ | 277,641 | |||||||||||||||||||||
200 basis point increase | 275,756 | 274,567 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point decrease | $ | 285,261 | $ | 284,051 | |||||||||||||||||||||
200 basis point decrease | 288,612 | 287,394 | |||||||||||||||||||||||
Default rate assumption: | 11.95 | %* | 11.95 | %* | |||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
200 basis point decrease | $ | 289,030 | $ | 287,800 | |||||||||||||||||||||
100 basis point decrease | 285,527 | 284,310 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point increase | $ | 278,513 | $ | 277,324 | |||||||||||||||||||||
200 basis point increase | 275,089 | 273,914 | |||||||||||||||||||||||
* | Represents weighted average assumptions considering all credit grades. | ||||||||||||||||||||||||
Changes in Borrower Loans, Loans Held for Sale and Notes, and Level 3 Assets 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 measured at fair value on a recurring basis are as follows (in thousands): | ||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Borrower | Notes | Loans Held | Total | ||||||||||||||||||||||
Loans | for Sale | ||||||||||||||||||||||||
Balance at January 1, 2014 | $ | 233,105 | $ | (234,218 | ) | $ | 3,206 | $ | 2,093 | ||||||||||||||||
Purchase of Borrower Loans/Issuance of Notes | 44,256 | (43,933 | ) | 150,787 | 151,110 | ||||||||||||||||||||
Principal repayments | (28,245 | ) | 28,326 | - | 81 | ||||||||||||||||||||
Borrower Loans sold to third parties | - | - | (150,510 | ) | (150,510 | ) | |||||||||||||||||||
Other changes | (39 | ) | 173 | (1 | ) | 133 | |||||||||||||||||||
Change in fair value | (4,150 | ) | 4,317 | - | 167 | ||||||||||||||||||||
Balance at March 31, 2014 | $ | 244,927 | $ | (245,335 | ) | $ | 3,482 | $ | 3,074 | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Borrower | Notes | Loans Held | Total | ||||||||||||||||||||||
Loans | for Sale | ||||||||||||||||||||||||
Balance at January 1, 2015 | $ | 273,243 | $ | (273,783 | ) | $ | 8,463 | $ | 7,923 | ||||||||||||||||
Purchase of Borrower Loans/Issuance of Notes | 47,714 | (47,796 | ) | 540,924 | 540,842 | ||||||||||||||||||||
Principal repayments | (36,063 | ) | 36,069 | (364 | ) | (358 | ) | ||||||||||||||||||
Borrower Loans sold to third parties | - | - | (547,309 | ) | (547,309 | ) | |||||||||||||||||||
Other changes | 6 | 207 | (8 | ) | 205 | ||||||||||||||||||||
Change in fair value | (4,496 | ) | 4,502 | (107 | ) | (101 | ) | ||||||||||||||||||
Balance at March 31, 2015 | $ | 280,404 | $ | (280,801 | ) | $ | 1,599 | $ | 1,202 | ||||||||||||||||
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 March 31, 2015 and December 31, 2014, are presented in the following table (in thousands): | ||||||||||||||||||||||||
Borrower Loans | Notes | Loans Held for Sale | |||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Aggregate principal balance outstanding | $ | 275,879 | $ | 268,593 | $ | (279,455 | ) | $ | (272,270 | ) | $ | 1,573 | $ | 8,295 | |||||||||||
Fair value adjustments | 4,525 | 4,650 | (1,346 | ) | (1,513 | ) | 26 | 168 | |||||||||||||||||
Fair value | $ | 280,404 | $ | 273,243 | $ | (280,801 | ) | $ | (273,783 | ) | $ | 1,599 | $ | 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 March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||
Range | |||||||||||||||||||||||||
Unobservable Input | March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Discount rate | 2.8%-10.1% | 3.3%-10.6% | |||||||||||||||||||||||
Default rate | 2.6%-18.8% | 2.5%-18.6% | |||||||||||||||||||||||
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 March 31, 2015 for Borrower Loans, loans held for sale and Notes funded are presented in the following table (in thousands): | ||||||||||||||||||||||||
Borrower | Notes | ||||||||||||||||||||||||
Loans / | |||||||||||||||||||||||||
Loans Held | |||||||||||||||||||||||||
for Sale | |||||||||||||||||||||||||
Discount rate assumption: | 4.61 | %* | 4.61 | %* | |||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point increase | $ | 278,837 | $ | 277,641 | |||||||||||||||||||||
200 basis point increase | 275,756 | 274,567 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point decrease | $ | 285,261 | $ | 284,051 | |||||||||||||||||||||
200 basis point decrease | 288,612 | 287,394 | |||||||||||||||||||||||
Default rate assumption: | 11.95 | %* | 11.95 | %* | |||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
200 basis point decrease | $ | 289,030 | $ | 287,800 | |||||||||||||||||||||
100 basis point decrease | 285,527 | 284,310 | |||||||||||||||||||||||
Resulting fair value from: | |||||||||||||||||||||||||
100 basis point increase | $ | 278,513 | $ | 277,324 | |||||||||||||||||||||
200 basis point increase | 275,089 | 273,914 | |||||||||||||||||||||||
* | Represents weighted average assumptions considering all credit grades. | ||||||||||||||||||||||||
Changes in Borrower Loans, Loans Held for Sale and Notes, and Level 3 Assets 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 measured at fair value on a recurring basis are as follows (in thousands): | ||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Held for | |||||||||||||||||||||||||
Borrower Loans | Notes | Sale | Total | ||||||||||||||||||||||
Balance at January 1, 2014 | $ | 233,105 | $ | (234,218 | ) | $ | 3,206 | $ | 2,093 | ||||||||||||||||
Originations | 44,213 | (43,933 | ) | 150,787 | 151,067 | ||||||||||||||||||||
Principal repayments | (28,244 | ) | 28,326 | - | 82 | ||||||||||||||||||||
Borrower Loans sold to third parties | - | - | (150,510 | ) | (150,510 | ) | |||||||||||||||||||
Other changes | (39 | ) | 173 | (1 | ) | 133 | |||||||||||||||||||
Change in fair value | (4,107 | ) | 4,317 | - | 210 | ||||||||||||||||||||
Balance at March 31, 2014 | $ | 244,928 | $ | (245,335 | ) | ) | $ | 3,482 | $ | 3,075 | |||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Held for | |||||||||||||||||||||||||
Borrower Loans | Notes | Sale | Total | ||||||||||||||||||||||
Balance at January 1, 2015 | $ | 273,243 | $ | (273,783 | ) | $ | 8,463 | $ | 7,923 | ||||||||||||||||
Originations | 47,714 | (47,796 | ) | 540,924 | 540,842 | ||||||||||||||||||||
Principal repayments | (36,063 | ) | 36,069 | (364 | ) | (358 | ) | ||||||||||||||||||
Borrower Loans sold to third parties | - | - | (547,309 | ) | (547,309 | ) | |||||||||||||||||||
Other changes | 6 | 207 | (8 | ) | 205 | ||||||||||||||||||||
Change in fair value | (4,496 | ) | 4,502 | (107 | ) | (101 | ) | ||||||||||||||||||
Balance at March 31, 2015 | $ | 280,404 | $ | (280,801 | ) | $ | 1,599 | $ | 1,202 | ||||||||||||||||
Loan_Servicing_Assets_and_Liab1
Loan Servicing Assets and Liabilities (Tables) | 3 Months Ended | |||||||||
Mar. 31, 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 March 31, 2015 and December 31, 2014: | |||||||||
Range | ||||||||||
Unobservable Input | March 31, 2015 | December 31, 2014 | ||||||||
Discount rate | 15% - 25% | 15% - 25% | ||||||||
Default rate | 2.0% - 19.8% | 2.6% - 26.3% | ||||||||
Market servicing rate | 0.63% | 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 three months ended March 31, 2015 (in thousands). | |||||||||
Servicing | Servicing | |||||||||
Assets | 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 | 2,078 | 154 | ||||||||
Less: Changes in fair value | (753 | ) | (81 | ) | ||||||
Fair value at March 31, 2015 | $ | 6,034 | $ | 668 | ||||||
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 March 31, 2015 (in thousands, except percentages). | |||||||||
Servicing | Servicing | |||||||||
Assets | Liabilities | |||||||||
Weighted average market servicing rate assumptions | 0.625 | % | 0.625 | % | ||||||
Resulting fair value from: | ||||||||||
Market servicing rate increase to 0.65% | $ | 5,594 | $ | (734 | ) | |||||
Market servicing rate decrease to 0.60% | $ | 6,487 | $ | (601 | ) | |||||
Weighted average default assumptions | 13 | % | 13 | % | ||||||
Resulting fair value from: | ||||||||||
100 basis point increase | $ | 5,930 | $ | (667 | ) | |||||
100 basis point decrease | $ | 6,152 | $ | (669 | ) | |||||
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 March 31, 2015 and December 31, 2014: | |||||||||
Range | ||||||||||
Unobservable Input | 31-Mar-15 | 31-Dec-14 | ||||||||
Discount rate | 15% - 25% | 15% - 25% | ||||||||
Default rate | 2.0% - 19.8% | 2.6% - 26.3% | ||||||||
Market servicing rate | 0.63% | 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 | 2,078 | 154 | ||||||||
Less: Transfers to PMI | (249 | ) | - | |||||||
Less: changes in fair value | (562 | ) | (81 | ) | ||||||
Fair value at March 31, 2015 | $ | 4,782 | $ | 668 | ||||||
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 March 31, 2015 (in thousands, except percentages). | |||||||||
Servicing | Servicing | |||||||||
Assets | Liabilities | |||||||||
Weighted average market servicing rate assumptions | 0.625 | % | 0.625 | % | ||||||
Resulting fair value from: | ||||||||||
Servicing rate increase to 0.65% | $ | 4,428 | $ | (734 | ) | |||||
Servicing rate decrease to 0.60% | $ | 5,135 | $ | (601 | ) | |||||
Weighted average default assumptions | 13 | % | 13 | % | ||||||
Resulting fair value from: | ||||||||||
100 basis point increase | $ | 4,694 | $ | (667 | ) | |||||
100 basis point decrease | $ | 4,870 | $ | (669 | ) | |||||
American_HealthCare_Lending_Ac1
American HealthCare Lending Acquisition - (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 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 March 31, 2015 are as follows (in thousands): | ||||||||||||||||
31-Mar-15 | |||||||||||||||||
Gross | Accumulated | Net | Remaining | ||||||||||||||
Carrying Value | Amortization | Carrying Value | Useful Life | ||||||||||||||
(In Years) | |||||||||||||||||
Customer relationships | $ | 2,650 | $ | (41 | ) | $ | 2,609 | 10 | |||||||||
Technology | 810 | (45 | ) | 765 | 3 | ||||||||||||
Brand name | 60 | (10 | ) | 50 | 1 | ||||||||||||
Total intangible assets subject to amortization | $ | 3,520 | $ | (96 | ) | $ | 3,424 | ||||||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Basic and Diluted Loss Per Share | Basic and diluted net loss per share was calculated as follows: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net loss available to common stockholders for basic | $ | (7,276 | ) | $ | (2,718 | ) | |||
and diluted EPS | |||||||||
Denominator: | |||||||||
Weighted average shares used in computing basic and | 10,553,251 | 8,056,248 | |||||||
diluted net loss per share | |||||||||
Basic and diluted net loss per share | $ | (0.69 | ) | $ | (0.34 | ) | |||
Dilutive Shares Excluded from the Diluted Net Loss Per Share Calculation | Due to losses attributable to Prosper’s common shareholders for each of the periods below, the following potentially dilutive shares are excluded from the diluted net loss per share calculation because they were anti-dilutive under the treasury stock method, in accordance with ASC Topic 260: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
(shares) | (shares) | ||||||||
Excluded securities: | |||||||||
Convertible preferred stock issued and outstanding | 30,699,957 | 27,274,068 | |||||||
Stock options issued and outstanding | 7,038,728 | 4,359,556 | |||||||
Unvested stock options exercised | 3,727,042 | 5,054,772 | |||||||
Warrants issued and outstanding | 125,293 | 218,810 | |||||||
Total common stock equivalents excluded from | 41,591,020 | 36,907,206 | |||||||
diluted net loss per common share computation | |||||||||
Convertible_Preferred_Stock_an1
Convertible Preferred Stock and Stockholders' Deficit (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 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 March 31, 2015 are disclosed in the table below (amounts in thousands except share and per share amounts): | ||||||||||||||||
Convertible Preferred Stock | Par Value | Authorized | Outstanding | Liquidation | |||||||||||||
shares | and Issued | Preference | |||||||||||||||
shares | |||||||||||||||||
New Series A | $ | 0.01 | 13,868,152 | 13,711,644 | $ | 19,774 | |||||||||||
Series A-1 | 0.01 | 5,117,182 | 4,952,183 | 49,522 | |||||||||||||
New Series B | 0.01 | 8,288,734 | 7,155,176 | 21,581 | |||||||||||||
New Series C | 0.01 | 4,880,954 | 4,880,954 | 70,075 | |||||||||||||
32,155,022 | 30,699,957 | $ | 160,952 | ||||||||||||||
Stock_Option_Plan_and_Compensa1
Stock Option Plan and Compensation (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 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 three months ended March 31, 2015 is below: | ||||||||||||||||||||
Early exercised | Weighted average | ||||||||||||||||||||
options, unvested | exercise price | ||||||||||||||||||||
Balance as of January 1, 2015 | 4,112,269 | $ | 0.25 | ||||||||||||||||||
Exercise of non-vested stock options | 9,459 | 2.18 | |||||||||||||||||||
Repurchase of restricted stock | (1,875 | ) | 0.57 | ||||||||||||||||||
Restricted stock vested | (482,811 | ) | 0.17 | ||||||||||||||||||
Balance as of March 31, 2015 | 3,637,042 | $ | 0.26 | ||||||||||||||||||
Additional Information Regarding the Unvested Early Exercised Stock Options Outstanding | Additional information regarding the unvested early exercised stock options outstanding as of March 31, 2015 is as follows: | ||||||||||||||||||||
Options Outstanding | |||||||||||||||||||||
Range of | |||||||||||||||||||||
Exercise | Number | Weighted –Avg. | Weighted –Avg. | ||||||||||||||||||
Prices | Outstanding | Remaining Life | Exercise Price | ||||||||||||||||||
$0.10 - $0.10 | 3,111,922 | 1.89 | $ | 0.1 | |||||||||||||||||
0.57 - 0.57 | 458,981 | 2.97 | 0.57 | ||||||||||||||||||
5.65-5.65 | 66,139 | 3.33 | 5.65 | ||||||||||||||||||
$0.10 - $5.65 | 3,637,042 | 2.06 | $ | 0.26 | |||||||||||||||||
Summarized Option Activity under Option Plan | Stock option activity under the 2005 Plan is summarized for the three months ended March 31, 2015 below: | ||||||||||||||||||||
Options | Weighted- | ||||||||||||||||||||
Issued and | Average | ||||||||||||||||||||
Outstanding | Exercise | ||||||||||||||||||||
Price | |||||||||||||||||||||
Balance as of January 1, 2015 | 4,994,998 | $ | 1.85 | ||||||||||||||||||
Options granted | 2,469,314 | 18.11 | |||||||||||||||||||
Options exercised – vested | (299,291 | ) | 1.74 | ||||||||||||||||||
Options exercised – nonvested | (9,459 | ) | 2.18 | ||||||||||||||||||
Options forfeited | (116,834 | ) | 6.02 | ||||||||||||||||||
Balance as of March 31, 2015 | 7,038,728 | 7.49 | |||||||||||||||||||
Options vested and exercisable at March 31, 2015 | 6,006,329 | 8.1 | |||||||||||||||||||
Additional Information Regarding Common Stock Options Outstanding | Additional information regarding common stock options outstanding as of March 31, 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 - $0.10 | 157,040 | 8.38 | $ | 0.1 | 73,756 | $ | 0.1 | ||||||||||||||
0.57 - 0.57 | 3,100,551 | 8.87 | 0.57 | 2,120,600 | 0.57 | ||||||||||||||||
1.20 – 1.20 | 70,999 | 6.45 | 1.2 | 63,742 | 1.2 | ||||||||||||||||
1.70 – 1.70 | 48,019 | 7.01 | 1.7 | 36,990 | 1.7 | ||||||||||||||||
2.00 – 2.00 | 90,310 | 5.34 | 2 | 90,310 | 2 | ||||||||||||||||
5.00 - 5.00 | 7,000 | 1.5 | 5 | 7,000 | 5 | ||||||||||||||||
5.60 - 5.60 | 18,250 | 4.46 | 5.6 | 18,250 | 5.6 | ||||||||||||||||
5.65-5.65 | 1,105,245 | 9.46 | 5.65 | 2,884 | 5.65 | ||||||||||||||||
$18.11-$18.11 | 2,441,314 | 9.89 | 18.11 | - | 18.11 | ||||||||||||||||
$0.10 - $18.11 | 7,038,728 | 8.1 | $ | 7.49 | 2,413,532 | $ | 0.7 | ||||||||||||||
Fair Value of Stock Option Awards | The fair value of Prosper’s stock option awards for the three months ended March 31, 2015 and 2014 was estimated at the date of grant using the Black-Scholes model with the following average assumptions: | ||||||||||||||||||||
Three months ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Volatility of common stock | 55.59 | % | 73.31 | % | |||||||||||||||||
Risk-free interest rate | 1.61 | % | 1.92 | % | |||||||||||||||||
Expected life | 5.7 years | 6.1 years | |||||||||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||||||
Stock Based Compensation Included in Consolidated Statements of Operations | The following table presents the amount of stock-based compensation related to stock-based awards granted to employees recognized in Prosper’s condensed consolidated statements of operations during the three months ended March 31, 2015 and 2014 (in thousands): | ||||||||||||||||||||
Three months ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Origination and servicing | $ | 144 | $ | 63 | |||||||||||||||||
Sales and marketing | 388 | 16 | |||||||||||||||||||
General and administrative | 907 | 171 | |||||||||||||||||||
Total stock based compensation | $ | 1,439 | $ | 250 | |||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||
Mar. 31, 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 March 31, 2015 | $ | 4,927 | |||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 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 June 2022. | ||||
Future minimum rental payments under these leases as of March 31, 2015 are as follows: | |||||
Remaining nine months of 2015 | 2,742 | ||||
2016 | 4,239 | ||||
2017 | 3,866 | ||||
2018 | 3,977 | ||||
2019 | 4,093 | ||||
2020 | 4,210 | ||||
Thereafter | 8,808 | ||||
Total future operating lease obligations | $ | 31,935 | |||
Related_Parties_Tables
Related Parties (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 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 months ended March 31, 2015 and 2014, as well as the Notes outstanding as of March 31, 2015 and December 31, 2014 are summarized below (in thousands): | ||||||||||||||||
Aggregate Amount of | Interest Earned on Notes | ||||||||||||||||
Notes Purchased | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
March 31, | 31-Mar | ||||||||||||||||
Related Party | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Executive officers and management | $ | 479 | $ | 214 | $ | 47 | $ | 36 | |||||||||
Directors | 10 | $ | 2 | $ | 2 | $ | 3 | ||||||||||
Total | $ | 489 | $ | 216 | $ | 49 | $ | 39 | |||||||||
Notes Balance as of | |||||||||||||||||
Related Party | March 31, | December 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||||
Executive officers and management | $ | 1,842 | $ | 1,614 | |||||||||||||
Directors | 96 | 76 | |||||||||||||||
$ | 1,938 | $ | 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 March 31, 2015 and December 31, 2014 are summarized below (in thousands): | ||||||||||||||||
Aggregate Amount of | Interest Earned on Notes | ||||||||||||||||
Notes Purchased | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
March 31, | 31-Mar | ||||||||||||||||
Related Party | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Executive officers and management | $ | 479 | $ | 214 | $ | 47 | $ | 36 | |||||||||
Directors | - | - | - | - | |||||||||||||
Total | $ | 479 | $ | 214 | $ | 47 | $ | 36 | |||||||||
Note Balance as of | |||||||||||||||||
Related Party | March 31, | December 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||||
Executive officers and management | $ | 1,842 | $ | 1,614 | |||||||||||||
Directors | - | - | |||||||||||||||
$ | 1,842 | $ | 1,614 | ||||||||||||||
Restatement_of_Condensed_Conso1
Restatement of Condensed Consolidated Financial Statements (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 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 months ended March 31, 2014 ($ in thousands): | ||||||||||||||||||||
Consolidated Statement of Operations – Three months ended March 31, 2014 | |||||||||||||||||||||
As previously | Reclassifications* | As | Adjustments | As | |||||||||||||||||
reported | reclassified | corrected | |||||||||||||||||||
Revenue | |||||||||||||||||||||
Operating Revenue | |||||||||||||||||||||
Transaction Fees, Net | $ | 8,701 | $ | (231 | ) | $ | 8,470 | $ | (106 | ) | $ | 8,364 | |||||||||
Rebates and Promotions | (361 | ) | 361 | - | - | - | |||||||||||||||
Servicing Fees, Net | - | 99 | 99 | 315 | 414 | ||||||||||||||||
Other Revenue | 696 | - | 696 | (245 | ) | 451 | |||||||||||||||
Total Operating Revenue | 9,036 | 229 | 9,265 | (36 | ) | 9,229 | |||||||||||||||
Interest Income on Borrower Loans | 10,109 | (228 | ) | 9,881 | 124 | 10,005 | |||||||||||||||
Interest Expense on Notes | (9,269 | ) | (9,269 | ) | (153 | ) | (9,422 | ) | |||||||||||||
Net Interest Income | 840 | (228 | ) | 612 | (29 | ) | 583 | ||||||||||||||
Change in Fair Value on Borrower Loans, Loans Held for | 298 | - | 298 | (131 | ) | 167 | |||||||||||||||
Sale and Notes, net | |||||||||||||||||||||
Total Net Revenue | 10,174 | 1 | 10,175 | (196 | ) | 9,979 | |||||||||||||||
Cost of Revenue | |||||||||||||||||||||
Cost of Services | (525 | ) | 525 | - | - | - | |||||||||||||||
Provision for repurchase and indemnification obligation | (62 | ) | 62 | - | - | - | |||||||||||||||
(587 | ) | 587 | - | - | - | ||||||||||||||||
Expenses | |||||||||||||||||||||
Compensation and benefits | 3,901 | (3,901 | ) | - | - | - | |||||||||||||||
Marketing and advertising | 5,986 | (5,986 | ) | - | - | - | |||||||||||||||
Depreciation and amortization | 363 | (363 | ) | - | - | - | |||||||||||||||
Professional services | 176 | (176 | ) | - | - | - | |||||||||||||||
Facilities and maintenance | 445 | (445 | ) | - | - | ||||||||||||||||
Loss on impairment | 215 | (215 | ) | - | - | - | |||||||||||||||
Other | 668 | (668 | ) | - | - | - | |||||||||||||||
Origination and Servicing | - | 2,131 | 2,131 | 160 | 2,291 | ||||||||||||||||
Sales and Marketing | - | 6,424 | 6,424 | 10 | 6,434 | ||||||||||||||||
General and Administrative | - | 3,786 | 3,786 | 186 | 3,972 | ||||||||||||||||
Total Expenses | 11,754 | 587 | 12,341 | 356 | 12,697 | ||||||||||||||||
Other income | 1 | (1 | ) | - | - | - | |||||||||||||||
Total Net Income | $ | (2,166 | ) | $ | - | $ | (2,166 | ) | $ | (552 | ) | $ | (2,718 | ) | |||||||
*See note 1 for a description of the reclassifications. | |||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows – Three months ended March 31, 2014 | |||||||||||||||||||||
As previously | |||||||||||||||||||||
reported | Adjustments | As corrected | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net Loss | $ | (2,166 | ) | $ | (552 | ) | $ | (2,718 | ) | ||||||||||||
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 | - | (167 | ) | (167 | ) | ||||||||||||||||
Change in Fair Value of Notes | 32 | (32 | ) | - | |||||||||||||||||
Change in Fair Value of Borrower Loans Receivable | (332 | ) | 332 | - | |||||||||||||||||
Change in Fair Value of Loans Held for Sale | 2 | (2 | ) | - | |||||||||||||||||
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | - | (133 | ) | (133 | ) | ||||||||||||||||
Depreciation and Amortization | 363 | 37 | 400 | ||||||||||||||||||
Stock-Based Compensation | 255 | (5 | ) | 250 | |||||||||||||||||
Loss on Impairment of Property and Equipment | 215 | - | 215 | ||||||||||||||||||
Accretion of Class Action Settlement Liability | - | 30 | 30 | ||||||||||||||||||
Change in Servicing Rights | - | (283 | ) | (283 | ) | ||||||||||||||||
Purchase of loans held for sale at fair value | - | (150,787 | ) | (150,787 | ) | ||||||||||||||||
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | - | 150,510 | 150,510 | ||||||||||||||||||
Changes in Operating Assets and Liabilities: | - | ||||||||||||||||||||
Restricted Cash | (1,189 | ) | (3,980 | ) | (5,169 | ) | |||||||||||||||
Accounts Receivable | 36 | (56 | ) | (20 | ) | ||||||||||||||||
Prepaid and Other Assets | (445 | ) | 28 | (417 | ) | ||||||||||||||||
Accounts Payable and Accrued Liabilities | 1,511 | (613 | ) | 898 | |||||||||||||||||
Repurchase liability for unvested stock awards | (105 | ) | 105 | - | |||||||||||||||||
Payable to Investors | - | 5,850 | 5,850 | ||||||||||||||||||
Class Action Settlement Liability | (2,000 | ) | - | (2,000 | ) | ||||||||||||||||
Net Cash Used in Operating Activities | (3,823 | ) | 282 | (3,541 | ) | ||||||||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||||||
Purchase of Borrower Loans Receivable Held at Fair Value | (166,608 | ) | 122,352 | (44,256 | ) | ||||||||||||||||
Principal Payment of Borrower Loans Receivable Held at Fair Value | 32,642 | (4,397 | ) | 28,245 | |||||||||||||||||
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | 121,864 | (121,864 | ) | - | |||||||||||||||||
Repayment of Loans Held for Investment at Fair Value | 100 | (100 | ) | - | |||||||||||||||||
Origination of Loans Held for Investment at Fair Value | (28,858 | ) | 28,858 | - | |||||||||||||||||
Proceeds from sale of Borrower Loans at Fair Value | 28,602 | (28,602 | ) | - | |||||||||||||||||
Purchases of Property and Equipment | (692 | ) | 33 | (659 | ) | ||||||||||||||||
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 | - | (771 | ) | (771 | ) | ||||||||||||||||
Net Cash Used in Investing Activities | (12,950 | ) | (4,494 | ) | (17,444 | ) | |||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Proceeds from Issuance of Notes Held at Fair Value | 44,199 | (266 | ) | 43,933 | |||||||||||||||||
Payment of Notes Held at Fair Value | (32,910 | ) | 4,584 | (28,326 | ) | ||||||||||||||||
Proceeds from Early Exercise of Stock Options | 12 | (2 | ) | 10 | |||||||||||||||||
Proceeds of Restricted Stock Vested | 104 | (104 | ) | - | |||||||||||||||||
Proceeds from Exercise of Vested Stock Options | 4 | - | 4 | ||||||||||||||||||
Net Cash Provided by Financing Activities | $ | 11,409 | $ | 4,212 | $ | 15,621 | |||||||||||||||
Net Decrease in Cash and Cash Equivalents | (5,364 | ) | - | (5,364 | ) | ||||||||||||||||
Cash and Cash Equivalents at Beginning of the Period | 18,339 | - | 18,339 | ||||||||||||||||||
Cash and Cash Equivalents at End of the Period | $ | 12,975 | $ | - | $ | 12,975 | |||||||||||||||
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 March 31, 2014 (in thousands): | ||||||||||||||||||||
Consolidated Statement of Operations – Three months ended March 31, 2014 | |||||||||||||||||||||
As previously | Reclassifications* | As | Adjustments | As | |||||||||||||||||
reported | reclassified | corrected | |||||||||||||||||||
Revenue | |||||||||||||||||||||
Operating Revenue | |||||||||||||||||||||
Administration Fee Revenue – Related Party | $ | 4,053 | $ | — | $ | 4,053 | $ | — | $ | 4,053 | |||||||||||
Servicing Income, Net | — | 170 | 170 | 253 | 423 | ||||||||||||||||
Other Revenue | 356 | — | 356 | (57 | ) | 299 | |||||||||||||||
Total Operating Revenue | 4,409 | 170 | 4,579 | 196 | 4,775 | ||||||||||||||||
Interest Income on Borrower Loans | 10,057 | (176 | ) | 9,881 | 201 | 10,082 | |||||||||||||||
Interest Expense on Notes | (9,269 | ) | - | (9,269 | ) | (154 | ) | (9,423 | ) | ||||||||||||
Net Interest Income | 788 | (176 | ) | 612 | 47 | 659 | |||||||||||||||
Change in Fair Value on Borrower Loans, Loans Held for Sale and Notes, net | 298 | (1 | ) | 297 | (87 | ) | 210 | ||||||||||||||
Total Net Revenue | 5,495 | (7 | ) | 5,488 | 156 | 5,644 | |||||||||||||||
Cost of Revenue | |||||||||||||||||||||
Cost of Services | (397 | ) | 397 | — | — | — | |||||||||||||||
Provision for repurchase and indemnification obligation | (62 | ) | 62 | — | — | — | |||||||||||||||
(459 | ) | 459 | — | — | — | ||||||||||||||||
Expenses | |||||||||||||||||||||
Servicing | — | 694 | 694 | (296 | ) | 398 | |||||||||||||||
Administration Fee – Related Party | 2,606 | — | 2,606 | 888 | 3,494 | ||||||||||||||||
Depreciation and Amortization | 235 | (235 | ) | — | — | — | |||||||||||||||
Professional Services | 12 | (12 | ) | — | — | — | |||||||||||||||
Other Operating Expenses | 88 | (88 | ) | — | — | — | |||||||||||||||
General and Administration | — | 100 | 100 | 4 | 104 | ||||||||||||||||
Total Expenses | 2,941 | 459 | 3,400 | 596 | 3,996 | ||||||||||||||||
Other income | (7 | ) | 7 | — | — | — | |||||||||||||||
Total Net Income | $ | 2,088 | $ | — | $ | 2,088 | $ | (440 | ) | $ | 1,648 | ||||||||||
*See note 1 for further details on the reclassifications. | |||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows – Three months ended March 31, 2014 | |||||||||||||||||||||
As previously | |||||||||||||||||||||
reported | Adjustments | As corrected | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net Income | $ | 2,088 | $ | (440 | ) | $ | 1,648 | ||||||||||||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities: | |||||||||||||||||||||
Change in Fair Value of Notes | 32 | (32 | ) | - | |||||||||||||||||
Change in Fair Value of Borrower Loans Receivable | (332 | ) | 332 | - | |||||||||||||||||
Change in Fair Value of Loans Held for Sale | 2 | (2 | ) | - | |||||||||||||||||
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes | - | (210 | ) | (210 | ) | ||||||||||||||||
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | - | (133 | ) | (133 | ) | ||||||||||||||||
Depreciation and Amortization | 235 | 42 | 277 | ||||||||||||||||||
Change in Servicing Rights | - | (294 | ) | (294 | ) | ||||||||||||||||
Purchase of Loans Held for Sale at Fair Value | - | (150,787 | ) | (150,787 | ) | ||||||||||||||||
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | - | 150,510 | 150,510 | ||||||||||||||||||
Changes in Operating Assets and Liabilities: | - | ||||||||||||||||||||
Restricted Cash | (1,122 | ) | (3,632 | ) | (4,754 | ) | |||||||||||||||
Other Assets | 3 | - | 3 | ||||||||||||||||||
Accounts Payable and Accrued Liabilities | 563 | (474 | ) | 89 | |||||||||||||||||
Payable to Investors | - | 5,684 | 5,684 | ||||||||||||||||||
Net Related Party Payable | (463 | ) | (53 | ) | (516 | ) | |||||||||||||||
Net Cash Used in Operating Activities | 1,006 | 511 | 1,517 | ||||||||||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||||||
Purchase of Borrower Loans Receivable Held at Fair Value | (166,608 | ) | 122,395 | (44,213 | ) | ||||||||||||||||
Principal Payment of Borrower Loans Receivable Held at Fair Value | 32,642 | (4,397 | ) | 28,245 | |||||||||||||||||
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | 121,864 | (121,864 | ) | - | |||||||||||||||||
Repayment of Loans Held for Investment at Fair Value | 100 | (100 | ) | - | |||||||||||||||||
Origination of Loans Held for Investment at Fair Value | (28,858 | ) | 28,858 | - | |||||||||||||||||
Proceeds from Sale of Borrower Loans at Fair Value | 28,602 | (28,602 | ) | - | |||||||||||||||||
Maturities of Short Term Investments | - | 1,271 | 1,271 | ||||||||||||||||||
Purchases of Property and Equipment | - | (1,274 | ) | (1,274 | ) | ||||||||||||||||
Purchases of Property and Equipment | (183 | ) | 3 | (180 | ) | ||||||||||||||||
Changes in Restricted Cash Related to Investing Activities | - | (1,119 | ) | (1,119 | ) | ||||||||||||||||
Net Cash Used in Investing Activities | (12,441 | ) | (4,829 | ) | (17,270 | ) | |||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Proceeds from Issuance of Notes Held at Fair Value | 44,199 | (266 | ) | 43,933 | |||||||||||||||||
Payment of Notes Held at Fair Value | (32,910 | ) | 4,584 | (28,326 | ) | ||||||||||||||||
Net Cash Provided by Financing Activities | 11,289 | 4,318 | 15,607 | ||||||||||||||||||
Net Decrease in Cash and Cash Equivalents | (146 | ) | - | (146 | ) | ||||||||||||||||
Cash and Cash Equivalents at Beginning of the Period | 5,789 | - | 5,789 | ||||||||||||||||||
Cash and Cash Equivalents at End of the Period | $ | 5,643 | $ | - | $ | 5,643 | |||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Significant Accounting Policies [Line Items] | |
Decrease to accumulated deficit | ($575) |
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 |
Increase to retained earnings | $428 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $23,805 | $19,849 |
Less accumulated depreciation and amortization | -7,149 | -5,425 |
Total property and equipment, net | 16,656 | 14,424 |
Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and amortization | -4,058 | -2,917 |
Total property and equipment, net | 3,964 | 1,125 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 6,178 | 3,824 |
Internal-use Software and Website Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 8,513 | 4,486 |
Internal-use Software and Website Development Costs [Member] | Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 8,022 | 4,042 |
Office Equipment and Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 1,961 | 1,904 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 5,564 | 5,274 |
Assets Not Yet Placed in Service [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $1,589 | $4,361 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $1,850,000 | $400,000 |
Capitalized internal-use software and website development costs | 1,215,000 | 368,000 |
Recorded internal-use software and website development impairment charges | 0 | 215,000 |
Prosper Funding LLC [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $1,220,000 | $277,000 |
Borrower_Loans_Loans_Held_for_2
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 $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Borrower Loans [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | $275,879 | $268,598 |
Fair value adjustments | 4,525 | 4,645 |
Fair value | 280,404 | 273,243 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | 275,879 | 268,593 |
Fair value adjustments | 4,525 | 4,650 |
Fair value | 280,404 | 273,243 |
Loans Held for Sale [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | 1,573 | 8,295 |
Fair value adjustments | 26 | 168 |
Fair value | 1,599 | 8,463 |
Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | 1,573 | 8,295 |
Fair value adjustments | 26 | 168 |
Fair value | 1,599 | 8,463 |
Notes [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | -279,455 | -272,267 |
Fair value adjustments | -1,346 | -1,516 |
Fair value | -280,801 | -273,783 |
Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | -279,455 | -272,270 |
Fair value adjustments | -1,346 | -1,513 |
Fair value | ($280,801) | ($273,783) |
Borrower_Loans_Loans_Held_for_3
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Fixed interest rate, Minimum | 5.77% | 5.77% | |
Fixed interest rate, Maximum | 33.04% | 33.04% | |
Loans maturity date | 31-Mar-20 | 31-Dec-19 | |
Aggregate fair value adjustments | $4,800,000 | $4,600,000 | |
Minimum number of days for which loans originated were delinquent | 90 days | 90 days | |
Aggregate principal amount of loans originated | 1,300,000 | 1,700,000 | |
Fair value of loans originated | 500,000 | 600,000 | |
Borrower Loans receivable | 0 | 0 | |
Prosper Funding LLC [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate, Minimum | 5.77% | 5.77% | |
Fixed interest rate, Maximum | 33.04% | 33.04% | |
Loans maturity date | 31-Mar-20 | 31-Dec-19 | |
Aggregate fair value adjustments | 4,800,000 | 4,600,000 | |
Minimum number of days for which loans originated were delinquent | 90 days | 90 days | |
Aggregate principal amount of loans originated | 1,300,000 | 1,500,000 | |
Fair value of loans originated | 500,000 | 140,000 | |
Borrower Loans receivable | $0 | $0 | |
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Underlying notes and certificates original terms | 36 months | 36 months | |
Minimum [Member] | Prosper Funding LLC [Member] | |||
Debt Instrument [Line Items] | |||
Underlying notes and certificates original terms | 36 months | 36 months | |
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Underlying notes and certificates original terms | 60 months | 60 months | |
Maximum [Member] | Prosper Funding LLC [Member] | |||
Debt Instrument [Line Items] | |||
Underlying notes and certificates original terms | 60 months | 60 months |
Recovered_Sheet1
Borrower Loans, Loans Held For Sale and Notes Held at Fair Value - Quantitative Information about the Significant Unobservable Inputs (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Minimum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 2.80% | 3.30% |
Default rate | 2.60% | 2.50% |
Minimum [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 2.80% | 3.30% |
Default rate | 2.60% | 2.50% |
Maximum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 10.10% | 10.60% |
Default rate | 18.80% | 18.60% |
Maximum [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 10.10% | 10.60% |
Default rate | 18.80% | 18.60% |
Borrower_Loans_Loans_Held_for_4
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) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | |
Discount rate assumption [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 4.61% | [1] |
Discount rate assumption [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 4.61% | [1] |
Discount rate assumption [Member] | Borrower Loans/Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 4.61% | [1] |
Discount rate assumption [Member] | Borrower Loans/Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 4.61% | [1] |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 277,641 | |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 277,641 | |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans/Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 278,837 | |
Discount rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans/Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 278,837 | |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 274,567 | |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 274,567 | |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans/Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 275,756 | |
Discount rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans/Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 275,756 | |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 284,051 | |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 284,051 | |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans/Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 285,261 | |
Discount rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans/Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 285,261 | |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 287,394 | |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 287,394 | |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans/Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 288,612 | |
Discount rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans/Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 288,612 | |
Default rate assumption [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 11.95% | [1] |
Default rate assumption [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Default rate assumption (in hundredths) | 11.95% | [1] |
Default rate assumption [Member] | Borrower Loans/Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 11.95% | [1] |
Default rate assumption [Member] | Borrower Loans/Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Default rate assumption (in hundredths) | 11.95% | [1] |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 277,324 | |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 277,324 | |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans/Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 278,513 | |
Default rate assumption [Member] | 100 Basis Point Increase [Member] | Borrower Loans/Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 278,513 | |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 273,914 | |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 273,914 | |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans/Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 275,089 | |
Default rate assumption [Member] | 200 Basis Point Increase [Member] | Borrower Loans/Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 275,089 | |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 284,310 | |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 284,310 | |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans/Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 285,527 | |
Default rate assumption [Member] | 100 Basis Point Decrease [Member] | Borrower Loans/Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 285,527 | |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 287,800 | |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Notes [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Notes | 287,800 | |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans/Loans Held for Sale [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 289,030 | |
Default rate assumption [Member] | 200 Basis Point Decrease [Member] | Borrower Loans/Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Borrower loans | 289,030 | |
[1] | Represents weighted average assumptions considering all credit grades. |
Borrower_Loans_Loans_Held_for_5
Borrower Loans, Loans Held for Sale, and Notes Held at Fair Value - Changes in Borrower Loans, Loans Held for Sale and Notes, which are Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) (Recurring [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Total | $2,093 | $7,923 |
Purchase of Borrower Loans/Issuance of Notes, Total | 151,110 | 540,842 |
Principal repayments, Total | 81 | -358 |
Borrower Loans sold to third parties, Total | -150,510 | -547,309 |
Other changes, Total | 133 | 205 |
Change in fair value, Total | 167 | -101 |
Ending balance, Total | 3,074 | 1,202 |
Prosper Funding LLC [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Total | 2,093 | 7,923 |
Originations, Total | 151,067 | 540,842 |
Principal repayments, Total | 82 | -358 |
Other changes, Total | 133 | 205 |
Ending balance, Total | 3,075 | 1,202 |
Borrower loans sold to third parties, Total | -150,510 | -547,309 |
Change in fair value of loans held for sale, Total | 210 | -101 |
Notes [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Liabilities | -234,218 | -273,783 |
Purchase of Borrower Loans/Issuance of Notes, Liabilities | -43,933 | -47,796 |
Principal repayments, Liabilities | 28,326 | 36,069 |
Borrower Loans sold to third parties, Liabilities | 0 | 0 |
Other changes, Liabilities | 173 | 207 |
Change in fair value, Liabilities | 4,317 | 4,502 |
Ending balance, Liabilities | -245,335 | -280,801 |
Notes [Member] | Prosper Funding LLC [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Liabilities | -234,218 | -273,783 |
Originations, Liabilities | -43,933 | -47,796 |
Principal repayments, Liabilities | 28,326 | 36,069 |
Other changes, Liabilities | 173 | 207 |
Change in fair value, Liabilities | 4,317 | 4,502 |
Ending balance, Liabilities | -245,335 | -280,801 |
Borrower loans sold to third parties, Liabilities | 0 | 0 |
Borrower Loans [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | 233,105 | 273,243 |
Purchase of Borrower Loans/Issuance of Notes, Assets | 44,256 | 47,714 |
Principal repayments, Assets | -28,245 | -36,063 |
Borrower Loans sold to third parties, Assets | 0 | |
Other changes, Assets | -39 | 6 |
Change in fair value, Assets | -4,150 | -4,496 |
Ending balance, Assets | 244,927 | 280,404 |
Borrower Loans [Member] | Prosper Funding LLC [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | 233,105 | 273,243 |
Originations, Assets | 44,213 | 47,714 |
Principal repayments, Assets | -28,244 | -36,063 |
Borrower Loans sold to third parties, Assets | 0 | 0 |
Other changes, Assets | -39 | 6 |
Change in fair value, Assets | -4,107 | -4,496 |
Ending balance, Assets | 244,928 | 280,404 |
Loans Held for Sale [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | 3,206 | 8,463 |
Purchase of Borrower Loans/Issuance of Notes, Assets | 150,787 | 540,924 |
Principal repayments, Assets | 0 | -364 |
Borrower Loans sold to third parties, Assets | -150,510 | -547,309 |
Other changes, Assets | -1 | -8 |
Change in fair value, Assets | 0 | -107 |
Ending balance, Assets | 3,482 | 1,599 |
Loans Held for Sale [Member] | Prosper Funding LLC [Member] | ||
Changes in Level 3 assets measured at fair value on a recurring basis [Abstract] | ||
Beginning balance, Assets | 3,206 | 8,463 |
Originations, Assets | 150,787 | 540,924 |
Principal repayments, Assets | 0 | -364 |
Borrower Loans sold to third parties, Assets | -150,510 | -547,309 |
Other changes, Assets | -1 | -8 |
Change in fair value, Assets | 0 | -107 |
Ending balance, Assets | $3,482 | $1,599 |
Loan_Servicing_Assets_and_Liab2
Loan Servicing Assets and Liabilities - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Servicing Assets And Liabilities Fair Value [Line Items] | |||
Gain on sales of whole loans | $1.90 | $0.30 | |
Fixed interest rate, Minimum | 5.77% | 5.77% | |
Fixed interest rate, Maximum | 33.04% | 33.04% | |
Loans maturity date | 31-Mar-20 | 31-Dec-19 | |
Prosper Funding LLC [Member] | |||
Servicing Assets And Liabilities Fair Value [Line Items] | |||
Gain on sales of whole loans | 1.9 | 0.3 | |
Fixed interest rate, Minimum | 5.77% | 5.77% | |
Fixed interest rate, Maximum | 33.04% | 33.04% | |
Loans maturity date | 31-Mar-20 | 31-Dec-19 | |
Borrower Loans [Member] | |||
Servicing Assets And Liabilities Fair Value [Line Items] | |||
Outstanding principle | 1,796 | 1,360 | |
Fixed interest rate, Minimum | 6.00% | 6.05% | |
Fixed interest rate, Maximum | 31.90% | 31.34% | |
Loans maturity date | 31-Mar-20 | 31-Dec-19 | |
Debt instrument, Description | As of March 31, 2015, Borrower Loans that were facilitated and subsequently sold but for which Prosper retained servicing rights had a total outstanding principle balance of $1,796 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.00% to 31.90% and maturity dates through March 2020. At December 31, 2014, Borrower Loans that were facilitated and subsequently sold but for which Prosper retained servicing rights had a total outstanding principle balance of $1.36 billion, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and maturity dates through December 2019. The fair value of the loan servicing assets and liabilities is determined using a discounted cash flow model that includes the market servicing rate, the default rate and discount rate as important inputs. For more details refer to Part IV - Item 15 – Exhibits, Financial Statement Schedules - Note 5 – Loan Servicing Assets and Liabilities Prosper’s Annual Report. | ||
Borrower Loans [Member] | Prosper Funding LLC [Member] | |||
Servicing Assets And Liabilities Fair Value [Line Items] | |||
Outstanding principle | $1,448 | 1,045 | |
Fixed interest rate, Minimum | 6.00% | 6.05% | |
Fixed interest rate, Maximum | 31.90% | 31.34% | |
Loans maturity date | 31-Mar-20 | 31-Dec-19 | |
Debt instrument, Description | At March 31, 2015, Borrower Loans that were facilitated and subsequently sold, but for which Prosper Funding retained servicing rights had a total outstanding principal balance of $1,448 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.00% to 31.90% and maturity dates through March 2020. At December 31, 2014, Borrower Loans that were facilitated and subsequently sold, but for which Prosper Funding retained servicing rights had a total outstanding principal balance of $1,045 million, original terms between 36 and 60 months and had monthly payments with fixed interest rates ranging from 6.05% to 31.34% and maturity dates through December 2019. The fair value of the loan servicing assets and liabilities is determined using a discounted cash flow model that includes the market servicing rate, the default rate and discount rate as important inputs. For more details refer to Part IV - Item 15 – Exhibits, Financial Statement Schedules - Note 5 – Loan Servicing Assets and Liabilities in the Prosper Funding’s Annual Report. | ||
Minimum [Member] | |||
Servicing Assets And Liabilities Fair Value [Line Items] | |||
Borrower loans original maturity term | 36 months | 36 months | |
Minimum [Member] | Prosper Funding LLC [Member] | |||
Servicing Assets And Liabilities Fair Value [Line Items] | |||
Borrower loans original maturity term | 36 months | 36 months | |
Minimum [Member] | Borrower Loans [Member] | |||
Servicing Assets And Liabilities Fair Value [Line Items] | |||
Borrower loans original maturity term | 36 months | 36 months | |
Minimum [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | |||
Servicing Assets And Liabilities Fair Value [Line Items] | |||
Borrower loans original maturity term | 36 months | 36 months | |
Maximum [Member] | |||
Servicing Assets And Liabilities Fair Value [Line Items] | |||
Borrower loans original maturity term | 60 months | 60 months | |
Maximum [Member] | Prosper Funding LLC [Member] | |||
Servicing Assets And Liabilities Fair Value [Line Items] | |||
Borrower loans original maturity term | 60 months | 60 months | |
Maximum [Member] | Borrower Loans [Member] | |||
Servicing Assets And Liabilities Fair Value [Line Items] | |||
Borrower loans original maturity term | 60 months | 60 months | |
Maximum [Member] | Borrower Loans [Member] | Prosper Funding LLC [Member] | |||
Servicing Assets And Liabilities Fair Value [Line Items] | |||
Borrower loans original maturity term | 60 months | 60 months |
Loan_Servicing_Assets_and_Liab3
Loan Servicing Assets and Liabilities - Significant Unobservable Inputs (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate | 0.63% | |
Prosper Funding LLC [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Market servicing rate | 0.63% | |
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 | 0.63% | |
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 | 0.63% | |
Maximum [Member] | ||
Servicing Assets And Liabilities Fair Value [Line Items] | ||
Discount rate | 25.00% | 25.00% |
Default rate | 19.80% | 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 | 19.80% | |
Market servicing rate | 0.70% |
Loan_Servicing_Assets_and_Liab4
Loan Servicing Assets and Liabilities - Schedule of Servicing Assets and Liabilities Measured at Fair Value (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
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 | 4,709 |
Additions | 2,078 |
Less: Changes in fair value | -753 |
Fair Value at end of period | 6,034 |
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 | 3,515 |
Additions | 2,078 |
Less: Changes in fair value | -562 |
Fair Value at end of period | 4,782 |
Less: Transfers to PMI | -249 |
Loan servicing liabilities [Member] | |
Servicing Liability at Amortized Cost [Roll Forward] | |
Amortized cost at beginning of the period | 624 |
Fair value adjustments | -29 |
Fair value at beginning of the period | 595 |
Additions | 154 |
Less: Changes in fair value | -81 |
Fair value at end of the period | 668 |
Loan servicing liabilities [Member] | Prosper Funding LLC [Member] | |
Servicing Liability at Amortized Cost [Roll Forward] | |
Amortized cost at beginning of the period | 624 |
Fair value adjustments | -29 |
Fair value at beginning of the period | 595 |
Additions | 154 |
Less: Changes in fair value | -81 |
Fair value at end of the period | $668 |
Loan_Servicing_Assets_and_Liab5
Loan Servicing Assets and Liabilities - Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Loan servicing assets [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.63% |
Resulting fair value from: | |
Market servicing rate increase to 0.65% | $5,594 |
Market servicing rate decrease to 0.60% | 6,487 |
100 basis point increase | 5,930 |
100 basis point decrease | 6,152 |
Weighted average default assumptions | 13.00% |
Loan servicing assets [Member] | Prosper Funding LLC [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.63% |
Resulting fair value from: | |
Market servicing rate increase to 0.65% | 4,428 |
Market servicing rate decrease to 0.60% | 5,135 |
100 basis point increase | 4,694 |
100 basis point decrease | 4,870 |
Weighted average default assumptions | 13.00% |
Loan servicing liabilities [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.63% |
Resulting fair value from: | |
Market servicing rate increase to 0.65% | -734 |
Market servicing rate decrease to 0.60% | -601 |
100 basis point increase | -667 |
100 basis point decrease | -669 |
Weighted average default assumptions | 13.00% |
Loan servicing liabilities [Member] | Prosper Funding LLC [Member] | |
Servicing Assets And Liabilities Fair Value [Line Items] | |
Weighted average market servicing rate assumptions | 0.63% |
Resulting fair value from: | |
Market servicing rate increase to 0.65% | -734 |
Market servicing rate decrease to 0.60% | -601 |
100 basis point increase | -667 |
100 basis point decrease | ($669) |
Weighted average default assumptions | 13.00% |
Loan_Servicing_Assets_and_Liab6
Loan Servicing Assets and Liabilities - Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 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_Ac2
American HealthCare Lending Acquisition - Additional Information (Details) (USD $) | 0 Months Ended | 3 Months Ended |
Jan. 23, 2015 | Mar. 31, 2015 | |
Business Acquisition [Line Items] | ||
Amortization of intangible assets | $96,000 | |
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 [Member] | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Gross | 20,200,000 | 800,000 |
Business Acquisition, Effective Date of Acquisition | 23-Jan-15 | |
Business Acquisition, Name of Acquired Entity | American HealthCare Lending LLC | |
Net revenue | 600,000 | |
Net earnings | 300,000 | |
Acquisition expenses | $200,000 |
American_HealthCare_Lending_Ac3
American HealthCare Lending Acquisition - Preliminary Purchase Price Allocation (Details) (American HealthCare [Member], USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
American HealthCare [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_Ac4
American HealthCare Lending Acquisition - Schedule of Intangible Assets (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Acquired Finite Lived Intangible Assets [Line Items] | |
Gross carrying value | $3,520 |
Accumulated amortization | -96 |
Net carrying value | 3,424 |
Customer Relationships [member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Gross carrying value | 2,650 |
Accumulated amortization | -41 |
Net carrying value | 2,609 |
Remaining useful life (in years) | 10 years |
Technology [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Gross carrying value | 810 |
Accumulated amortization | -45 |
Net carrying value | 765 |
Remaining useful life (in years) | 3 years |
Brand Name [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Gross carrying value | 60 |
Accumulated amortization | -10 |
Net carrying value | $50 |
Remaining useful life (in years) | 1 year |
Net_Loss_Per_Share_Basic_and_D
Net Loss Per Share - Basic and Diluted Loss Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator [Abstract] | ||
Net loss available to common stockholders for basic and diluted EPS | ($7,276) | ($2,718) |
Denominator [Abstract] | ||
Weighted-Average Shares - Basic and Diluted Net Loss Per Share | 10,553,251 | 8,056,248 |
Basic and diluted net loss per share (in dollars per share) | ($0.69) | ($0.34) |
Net_Loss_Per_Share_Dilutive_Sh
Net Loss Per Share - Dilutive Shares Excluded from the Diluted Net Loss Per Share Calculation (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 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) | 41,591,020 | 36,907,206 |
Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 30,699,957 | 27,274,068 |
Stock Options Issued and Outstanding [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents excluded from diluted net loss per common share computation (in shares) | 7,038,728 | 4,359,556 |
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) | 3,727,042 | 5,054,772 |
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) | 125,293 | 218,810 |
Convertible_Preferred_Stock_an2
Convertible Preferred Stock and Stockholders' Deficit - Summary of Shares Authorized, Issued, Outstanding, Par Value and Liquidation Preference of Convertible Preferred Stock (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Class of Stock [Line Items] | ||
Convertible preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Convertible preferred stock, shares authorized (in shares) | 32,155,022 | 32,155,022 |
Convertible preferred stock, shares outstanding and issued (in shares) | 30,699,957 | |
Convertible preferred stock, liquidation preference | $160,952 | $160,952 |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Convertible preferred stock, par value (in dollars per share) | $0.01 | |
Convertible preferred stock, shares authorized (in shares) | 13,868,152 | |
Convertible preferred stock, shares outstanding and issued (in shares) | 13,711,644 | |
Convertible preferred stock, liquidation preference | 19,774 | |
Series A 1 [Member] | ||
Class of Stock [Line Items] | ||
Convertible preferred stock, par value (in dollars per share) | $0.01 | |
Convertible preferred stock, shares authorized (in shares) | 5,117,182 | |
Convertible preferred stock, shares outstanding and issued (in shares) | 4,952,183 | |
Convertible preferred stock, liquidation preference | 49,522 | |
Series B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Convertible preferred stock, par value (in dollars per share) | $0.01 | |
Convertible preferred stock, shares authorized (in shares) | 8,288,734 | |
Convertible preferred stock, shares outstanding and issued (in shares) | 7,155,176 | |
Convertible preferred stock, liquidation preference | 21,581 | |
Series C Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Convertible preferred stock, par value (in dollars per share) | $0.01 | |
Convertible preferred stock, shares authorized (in shares) | 4,880,954 | |
Convertible preferred stock, shares outstanding and issued (in shares) | 4,880,954 | |
Convertible preferred stock, liquidation preference | $70,075 |
Convertible_Preferred_Stock_an3
Convertible Preferred Stock and Stockholders' Deficit - Additional Information (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | 31-May-14 |
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 48,928,883 | 47,928,883 | ||
Preferred stock, shares authorized (in shares) | 32,155,022 | 32,155,022 | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 | ||
Common stock, shares issued (in shares) | 14,878,514 | 14,448,700 | ||
Common stock, shares outstanding (in shares) | 14,691,327 | 14,261,513 | ||
Proceeds from Exercise of Vested Stock Options | $522 | $4 | ||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 81,083,905 | |||
Exercise of stock options (in shares) | 308,750 | |||
Proceeds from Exercise of Vested Stock Options | 540 | |||
Exercise of nonvested stock options (in shares) | 9,459 | |||
Unvested restricted stock outstanding (in shares) | 3,637,042 | 4,114,269 | ||
Stock repurchase upon termination of employment (in shares) | 1,875 | |||
Stock repurchase upon termination of employment | 1 | |||
Exercise of common stock warrants (in shares) | 32,939 | |||
Exercise of warrants aggregate proceeds | $111 | |||
Warrants Issued and Outstanding [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 48,928,883 | |||
Common stock, par value (in dollars per share) | 0.01 | |||
Common stock, shares issued (in shares) | 14,878,514 | 14,448,700 | ||
Common stock, shares outstanding (in shares) | 14,691,237 | 14,261,513 | ||
Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized (in shares) | 32,155,022 | |||
Common stock, par value (in dollars per share) | 0.01 |
Stock_Option_Plan_and_Compensa2
Stock Option Plan and Compensation - Additional Information (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 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% | |
Vesting period of the options | 1 year | |
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 | |
Dividend yield | 0.00% | 0.00% |
Stock-Based Compensation Expense | 1,439,000 | 250,000 |
Unamortized expense related to unvested stock-based awards | 32,800,000 | |
Remaining weighted average vesting period | 3 years 9 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 | 122,000 | 5,000 |
Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 90,000 | |
Shares Issued, Price Per Share | $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 Option 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 | |
Shares available for grant under the plan | 138,289 | |
Options Issued and Outstanding, Options granted | 2,469,314 | |
Weighted-Average Exercise Price, Options granted | $18.11 | |
Weighted average grant fair value | $16.04 | |
Stock options estimated aggregate fair value | $39,600,000 |
Stock_Option_Plan_and_Compensa3
Stock Option Plan and Compensation - Schedule of Activity of Options that were Early Exercised under the Plan (Details) (Early Exercised Stock Options Under 2005 Stock Option Plan [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Early Exercised Stock Options Under 2005 Stock Option Plan [Member] | |
Early exercised options, unvested [Roll Forward] | |
Beginning balance | 4,112,269 |
Exercise of non-vested stock options | 9,459 |
Repurchase of restricted stock | -1,875 |
Restricted stock vested | -482,811 |
Ending balance | 3,637,042 |
Weighted average exercise price [Abstract] | |
Weighted-Average Exercise Price, Beginning balance | $0.25 |
Exercise of non-vested stock options | $2.18 |
Repurchase of restricted stock | $0.57 |
Restricted stock vested | $0.17 |
Weighted-Average Exercise Price, Ending balance | $0.26 |
Stock_Option_Plan_and_Compensa4
Stock Option Plan and Compensation - Additional Information Regarding Unvested Early exercised stock options outstanding (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
$0.10 - $0.10 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.10 |
Range of Exercise Prices, Maximum | $0.10 |
Number Outstanding | 3,111,922 |
Weighted Avg. Remaining Life | 1 year 10 months 21 days |
Weighted Avg. Exercise Price | $0.10 |
$0.57 - $0.57 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.57 |
Range of Exercise Prices, Maximum | $0.57 |
Number Outstanding | 458,981 |
Weighted Avg. Remaining Life | 2 years 11 months 19 days |
Weighted Avg. Exercise Price | $0.57 |
$5.65 - $5.65 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $5.65 |
Range of Exercise Prices, Maximum | $5.65 |
Number Outstanding | 66,139 |
Weighted Avg. Remaining Life | 3 years 3 months 29 days |
Weighted Avg. Exercise Price | $5.65 |
$0.10 - $5.65 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.01 |
Range of Exercise Prices, Maximum | $5.65 |
Number Outstanding | 3,637,042 |
Weighted Avg. Remaining Life | 2 years 22 days |
Weighted Avg. Exercise Price | $0.26 |
Stock_Option_Plan_and_Compensa5
Stock Option Plan and Compensation - Summarized Option Activity under Option Plan (Details) (2005 Stock Option Plan [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
2005 Stock Option Plan [Member] | |
Options Issued and Outstanding [Roll Forward] | |
Options Issued and Outstanding, Options granted | 2,469,314 |
Options Issued and Outstanding, Options exercised – vested | -299,291 |
Options Issued and Outstanding, Options exercised – nonvested | -9,459 |
Options Issued and Outstanding, Ending balance | 7,038,728 |
Options Issued and Outstanding, Options vested and exercisable at March 31, 2015 | 6,006,329 |
Weighted-Average Exercise Price [Roll Forward] | |
Weighted-Average Exercise Price, Options granted | $18.11 |
Weighted-Average Exercise Price, Options exercised – vested | $1.74 |
Weighted-Average Exercise Price, Options exercised – nonvested | $2.18 |
Weighted-Average Exercise Price, Ending balance | $7.49 |
Weighted-Average Exercise Price, Options vested and exercisable at March 31, 2015 | $8.10 |
Stock_Option_Plan_and_Compensa6
Stock Option Plan and Compensation - Additional Information Regarding Common Stock Options Outstanding (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
$0.10 - $0.10 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.10 |
Range of Exercise Prices, Maximum | $0.10 |
Number Outstanding | 3,111,922 |
Weighted Avg. Remaining Life | 1 year 10 months 21 days |
Weighted Avg. Exercise Price | $0.10 |
$0.10 - $0.10 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.10 |
Range of Exercise Prices, Maximum | $0.10 |
Number Outstanding | 157,040 |
Weighted Avg. Remaining Life | 8 years 4 months 17 days |
Weighted Avg. Exercise Price | $0.10 |
Options Exercisable [Abstract] | |
Number Exercisable | 73,756 |
Weighted Avg. Exercise Price | $0.10 |
$0.57 - $0.57 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.57 |
Range of Exercise Prices, Maximum | $0.57 |
Number Outstanding | 458,981 |
Weighted Avg. Remaining Life | 2 years 11 months 19 days |
Weighted Avg. Exercise Price | $0.57 |
$0.57 - $0.57 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.57 |
Range of Exercise Prices, Maximum | $0.57 |
Number Outstanding | 3,100,551 |
Weighted Avg. Remaining Life | 8 years 10 months 13 days |
Weighted Avg. Exercise Price | $0.57 |
Options Exercisable [Abstract] | |
Number Exercisable | 2,120,600 |
Weighted Avg. Exercise Price | $0.57 |
$1.20 - $1.20 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $1.20 |
Range of Exercise Prices, Maximum | $1.20 |
Number Outstanding | 70,999 |
Weighted Avg. Remaining Life | 6 years 5 months 12 days |
Weighted Avg. Exercise Price | $1.20 |
Options Exercisable [Abstract] | |
Number Exercisable | 63,742 |
Weighted Avg. Exercise Price | $1.20 |
$1.70 - $1.70 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $1.70 |
Range of Exercise Prices, Maximum | $1.70 |
Number Outstanding | 48,019 |
Weighted Avg. Remaining Life | 7 years 4 days |
Weighted Avg. Exercise Price | $1.70 |
Options Exercisable [Abstract] | |
Number Exercisable | 36,990 |
Weighted Avg. Exercise Price | $1.70 |
$2.00 - $2.00 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $2 |
Range of Exercise Prices, Maximum | $2 |
Number Outstanding | 90,310 |
Weighted Avg. Remaining Life | 5 years 4 months 2 days |
Weighted Avg. Exercise Price | $2 |
Options Exercisable [Abstract] | |
Number Exercisable | 90,310 |
Weighted Avg. Exercise Price | $2 |
$5.00 - $5.00 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $5 |
Range of Exercise Prices, Maximum | $5 |
Number Outstanding | 7,000 |
Weighted Avg. Remaining Life | 1 year 6 months |
Weighted Avg. Exercise Price | $5 |
Options Exercisable [Abstract] | |
Number Exercisable | 7,000 |
Weighted Avg. Exercise Price | $5 |
$5.60 - $5.60 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $5.60 |
Range of Exercise Prices, Maximum | $5.60 |
Number Outstanding | 18,250 |
Weighted Avg. Remaining Life | 4 years 5 months 16 days |
Weighted Avg. Exercise Price | $5.60 |
Options Exercisable [Abstract] | |
Number Exercisable | 18,250 |
Weighted Avg. Exercise Price | $5.60 |
$5.65 - $5.65 [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $5.65 |
Range of Exercise Prices, Maximum | $5.65 |
Number Outstanding | 66,139 |
Weighted Avg. Remaining Life | 3 years 3 months 29 days |
Weighted Avg. Exercise Price | $5.65 |
$5.65 - $5.65 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $5.65 |
Range of Exercise Prices, Maximum | $5.65 |
Number Outstanding | 1,105,245 |
Weighted Avg. Remaining Life | 9 years 5 months 16 days |
Weighted Avg. Exercise Price | $5.65 |
Options Exercisable [Abstract] | |
Number Exercisable | 2,884 |
Weighted Avg. Exercise Price | $5.65 |
$18.11 - $18.11 | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $18.11 |
Range of Exercise Prices, Maximum | $18.11 |
Number Outstanding | 2,441,314 |
Weighted Avg. Remaining Life | 9 years 10 months 21 days |
Weighted Avg. Exercise Price | $18.11 |
Options Exercisable [Abstract] | |
Weighted Avg. Exercise Price | $18.11 |
$0.10 - $18.11 [Member] | Stock Options Issued and Outstanding [Member] | |
Options Outstanding [Abstract] | |
Range of Exercise Prices, Minimum | $0.10 |
Range of Exercise Prices, Maximum | $18.11 |
Number Outstanding | 7,038,728 |
Weighted Avg. Remaining Life | 8 years 1 month 6 days |
Weighted Avg. Exercise Price | $7.49 |
Options Exercisable [Abstract] | |
Number Exercisable | 2,413,532 |
Weighted Avg. Exercise Price | $0.70 |
Stock_Option_Plan_and_Compensa7
Stock Option Plan and Compensation - Fair Value of Stock Option Awards (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Fair value of stock option awards [Abstract] | ||
Volatility of common stock | 55.59% | 73.31% |
Risk-free interest rate | 1.61% | 1.92% |
Expected life | 5 years 8 months 12 days | 6 years 1 month 6 days |
Dividend yield | 0.00% | 0.00% |
Stock_Option_Plan_and_Compensa8
Stock Option Plan and Compensation - Stock Based Compensation Included in Consolidated Statements of Operations (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation | $1,439 | $250 |
Origination and Servicing [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation | 144 | 63 |
Sales and Marketing [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation | 388 | 16 |
General and Administrative [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock based compensation | $907 | $171 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Income Tax Expense | $73,000 | ||
Unrecognized Tax Benefits | 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 | |
Net effective tax rate | 0.00% | 0.00% | |
Valuation Allowance of Deferred Tax Assets | |||
Income Taxes [Line Items] | |||
Income Tax Expense | $0 | $0 |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefits (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Beginning balance as of January 1, 2015 | $4,927 | $4,927 |
Ending balance as of March 31, 2015 | $4,927 | $4,927 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2015 | Nov. 30, 2008 | Oct. 16, 2008 | |
Installment | ||||||
State | ||||||
Commitments And Contingencies [Line Items] | ||||||
Non cancelable operating lease expiration | 2015-08 | |||||
Office lease expiration | 2022-06 | |||||
Rental expense under operating lease arrangements | $800,000 | $100,000 | ||||
Minimum annual fee | 1,400,000 | |||||
Purchase of borrower loans | 26,200,000 | |||||
Maximum potential future payments | 1,796,000,000 | |||||
Accrued repurchase and indemnification obligation | 212,000 | 171,000 | ||||
Securities Law Compliance [Abstract] | ||||||
Amount of loans sold to lender members | 178,000,000 | |||||
Aggregate amount of payment for penalties | 1,000,000 | |||||
Number of states with which company entered into consent order | 34 | |||||
Aggregate amount paid by entity for penalties to states | 470,000 | |||||
Accrued contingent liability associated with states not entered into consent orders | 250,000 | 250,000 | ||||
Maximum fee liability taken to estimate accrued contingent liability | 1,000,000 | |||||
Agreed amount of settlement liability payable to plaintiffs | 10,000,000 | |||||
Number of annual installments paid to plaintiffs | 4 | |||||
Other commitment paid | 2,000,000 | 2,000,000 | ||||
Settlement installment due in 2016 | 3,000,000 | |||||
Settlement installment due in 2017 | 3,000,000 | |||||
Class action settlement liability | 5,880,000 | 7,861,000 | ||||
Prosper Funding LLC [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Minimum annual fee | 1,400,000 | |||||
Purchase of borrower loans | 26,200,000 | |||||
Maximum potential future payments | 1,400,000,000 | |||||
Accrued repurchase and indemnification obligation | $161,000 | $171,000 | ||||
San Francisco California | ||||||
Commitments And Contingencies [Line Items] | ||||||
Non cancelable operating lease expiration | 2023-02 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Operating Leases Future Minimum Payments Due [Abstract] | |
Remaining nine months of 2015 | $2,742 |
2016 | 4,239 |
2017 | 3,866 |
2018 | 3,977 |
2019 | 4,093 |
2020 | 4,210 |
Thereafter | 8,808 |
Total future operating lease obligations | $31,935 |
Related_Parties_Additional_Inf
Related Parties - Additional Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Related Party Transaction [Line Items] | ||
Minimum percentage of voting securities considered for related parties | 10.00% | |
Servicing fees revenue earned by entity | $4 | $6 |
Prosper Funding LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Servicing fees revenue earned by entity | $4 | $6 |
Related_Parties_Aggregate_Amou
Related Parties - Aggregate Amount of Notes Purchased and the Income Earned (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | |||
Aggregate amount of notes purchased | $489 | $216 | |
Interest earned on Notes | 49 | 39 | |
Notes balance | 1,938 | 1,690 | |
Prosper Funding LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Aggregate amount of notes purchased | 479 | 214 | |
Interest earned on Notes | 47 | 36 | |
Notes balance | 1,842 | 1,614 | |
Executive Officers & Management [Member] | |||
Related Party Transaction [Line Items] | |||
Aggregate amount of notes purchased | 479 | 214 | |
Interest earned on Notes | 47 | 36 | |
Notes balance | 1,842 | 1,614 | |
Executive Officers & Management [Member] | Prosper Funding LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Aggregate amount of notes purchased | 479 | 214 | |
Interest earned on Notes | 47 | 36 | |
Notes balance | 1,842 | 1,614 | |
Directors [Member] | |||
Related Party Transaction [Line Items] | |||
Aggregate amount of notes purchased | 10 | 2 | |
Interest earned on Notes | 2 | 3 | |
Notes balance | $96 | $76 |
Postretirement_Benefit_Plans_A
Postretirement Benefit Plans - Additional Information (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | ||
Deferred compensation arrangement with eligible employees, percentage | 90.00% | |
Employer contribution during the period | $400,000 | $0 |
Segments_Additional_Informatio
Segments - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 1 |
Restatement_of_Condensed_Conso2
Restatement of Condensed Consolidated Financial Statements - Consolidated Statements of Operations (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Revenue | ||
Transaction Fees, Net | $25,342 | $8,364 |
Servicing Fees, Net | 2,569 | 414 |
Other Revenue | 2,998 | 451 |
Total Operating Revenue | 30,909 | 9,229 |
Interest Income on Borrower Loans | 10,476 | 10,005 |
Interest Expense on Notes | -9,563 | -9,422 |
Net Interest Income | 913 | 583 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | -101 | 167 |
Total Net Revenue | 31,721 | 9,979 |
Expenses | ||
Depreciation and Amortization | 1,850 | 400 |
Origination and Servicing | 6,852 | 2,291 |
Sales and Marketing | 18,570 | 6,434 |
General and Administrative | 13,502 | 3,972 |
Total Expenses | 38,924 | 12,697 |
Net Income (Loss) | -7,276 | -2,718 |
Prosper Funding LLC [Member] | ||
Operating Revenue | ||
Administration Fee Revenue - Related Party | 9,673 | 4,053 |
Servicing Fees, Net | 2,265 | 423 |
Other Revenue | 1,922 | 299 |
Total Operating Revenue | 13,860 | 4,775 |
Interest Income on Borrower Loans | 10,522 | 10,082 |
Interest Expense on Notes | -9,563 | -9,423 |
Net Interest Income | 959 | 659 |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | -101 | 210 |
Total Net Revenue | 14,718 | 5,644 |
Cost of Revenue | ||
Cost of Services | -1,373 | -398 |
Expenses | ||
Depreciation and Amortization | 1,220 | 277 |
Origination and Servicing | 398 | |
General and Administrative | 266 | 104 |
Total Expenses | 10,934 | 3,996 |
Administration Fee – Related Party | 9,295 | 3,494 |
Net Income (Loss) | 3,784 | 1,648 |
Previously Stated [Member] | ||
Operating Revenue | ||
Transaction Fees, Net | 8,701 | |
Rebates and Promotions | -361 | |
Other Revenue | 696 | |
Total Operating Revenue | 9,036 | |
Interest Income on Borrower Loans | 10,109 | |
Interest Expense on Notes | -9,269 | |
Net Interest Income | 840 | |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 298 | |
Total Net Revenue | 10,174 | |
Cost of Revenue | ||
Cost of Services | -525 | |
Provision for repurchase and indemnification obligation | -62 | |
Net revenues | -587 | |
Expenses | ||
Compensation and benefits | 3,901 | |
Marketing and advertising | 5,986 | |
Depreciation and Amortization | 363 | |
Professional services | 176 | |
Facilities and maintenance | 445 | |
Loss on impairment | 215 | |
Other | 668 | |
Total Expenses | 11,754 | |
Other income | 1 | |
Net Income (Loss) | -2,166 | |
Previously Stated [Member] | Prosper Funding LLC [Member] | ||
Operating Revenue | ||
Administration Fee Revenue - Related Party | 4,053 | |
Other Revenue | 356 | |
Total Operating Revenue | 4,409 | |
Interest Income on Borrower Loans | 10,057 | |
Interest Expense on Notes | -9,269 | |
Net Interest Income | 788 | |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 298 | |
Total Net Revenue | 5,495 | |
Cost of Revenue | ||
Cost of Services | -397 | |
Provision for repurchase and indemnification obligation | -62 | |
Net revenues | -459 | |
Expenses | ||
Depreciation and Amortization | 235 | |
Professional services | 12 | |
Total Expenses | 2,941 | |
Administration Fee – Related Party | 2,606 | |
Other Operating Expenses | 88 | |
Other income | -7 | |
Net Income (Loss) | 2,088 | |
Reclassification | ||
Operating Revenue | ||
Transaction Fees, Net | -231 | |
Rebates and Promotions | 361 | |
Servicing Fees, Net | 99 | |
Total Operating Revenue | 229 | |
Interest Income on Borrower Loans | -228 | |
Net Interest Income | -228 | |
Total Net Revenue | 1 | |
Cost of Revenue | ||
Cost of Services | 525 | |
Provision for repurchase and indemnification obligation | 62 | |
Net revenues | 587 | |
Expenses | ||
Compensation and benefits | -3,901 | |
Marketing and advertising | -5,986 | |
Depreciation and Amortization | -363 | |
Professional services | -176 | |
Facilities and maintenance | -445 | |
Loss on impairment | -215 | |
Other | -668 | |
Origination and Servicing | 2,131 | |
Sales and Marketing | 6,424 | |
General and Administrative | 3,786 | |
Total Expenses | 587 | |
Other income | -1 | |
Reclassification | Prosper Funding LLC [Member] | ||
Operating Revenue | ||
Servicing Fees, Net | 170 | |
Total Operating Revenue | 170 | |
Interest Income on Borrower Loans | -176 | |
Net Interest Income | -176 | |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | -1 | |
Total Net Revenue | -7 | |
Cost of Revenue | ||
Cost of Services | 397 | |
Provision for repurchase and indemnification obligation | 62 | |
Net revenues | 459 | |
Expenses | ||
Depreciation and Amortization | -235 | |
Professional services | -12 | |
Origination and Servicing | 694 | |
General and Administrative | 100 | |
Total Expenses | 459 | |
Other Operating Expenses | -88 | |
Other income | 7 | |
As Reclassified | ||
Operating Revenue | ||
Transaction Fees, Net | 8,470 | |
Servicing Fees, Net | 99 | |
Other Revenue | 696 | |
Total Operating Revenue | 9,265 | |
Interest Income on Borrower Loans | 9,881 | |
Interest Expense on Notes | -9,269 | |
Net Interest Income | 612 | |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 298 | |
Total Net Revenue | 10,175 | |
Expenses | ||
Origination and Servicing | 2,131 | |
Sales and Marketing | 6,424 | |
General and Administrative | 3,786 | |
Total Expenses | 12,341 | |
Net Income (Loss) | -2,166 | |
As Reclassified | Prosper Funding LLC [Member] | ||
Operating Revenue | ||
Administration Fee Revenue - Related Party | 4,053 | |
Servicing Fees, Net | 170 | |
Other Revenue | 356 | |
Total Operating Revenue | 4,579 | |
Interest Income on Borrower Loans | 9,881 | |
Interest Expense on Notes | -9,269 | |
Net Interest Income | 612 | |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | 297 | |
Total Net Revenue | 5,488 | |
Expenses | ||
Origination and Servicing | 694 | |
General and Administrative | 100 | |
Total Expenses | 3,400 | |
Administration Fee – Related Party | 2,606 | |
Net Income (Loss) | 2,088 | |
Adjustment [Member] | ||
Operating Revenue | ||
Transaction Fees, Net | -106 | |
Servicing Fees, Net | 315 | |
Other Revenue | -245 | |
Total Operating Revenue | -36 | |
Interest Income on Borrower Loans | 124 | |
Interest Expense on Notes | -153 | |
Net Interest Income | -29 | |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | -131 | |
Total Net Revenue | -196 | |
Expenses | ||
Depreciation and Amortization | 37 | |
Origination and Servicing | 160 | |
Sales and Marketing | 10 | |
General and Administrative | 186 | |
Total Expenses | 356 | |
Net Income (Loss) | -552 | |
Adjustment [Member] | Prosper Funding LLC [Member] | ||
Operating Revenue | ||
Servicing Fees, Net | 253 | |
Other Revenue | -57 | |
Total Operating Revenue | 196 | |
Interest Income on Borrower Loans | 201 | |
Interest Expense on Notes | -154 | |
Net Interest Income | 47 | |
Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net | -87 | |
Total Net Revenue | 156 | |
Expenses | ||
Depreciation and Amortization | 42 | |
Origination and Servicing | -296 | |
General and Administrative | 4 | |
Total Expenses | 596 | |
Administration Fee – Related Party | 888 | |
Net Income (Loss) | ($440) |
Restatement_of_Condensed_Conso3
Restatement of Condensed Consolidated Financial Statements - Condensed Consolidated Statements of Cash Flows (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net Income (Loss) | ($7,276) | ($2,718) |
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 | 101 | -167 |
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | -133 | |
Depreciation and Amortization | 1,850 | 400 |
Stock-Based Compensation | 1,439 | 250 |
Loss on Impairment of Property and Equipment | 215 | |
Accretion of Class Action Settlement Liability | 19 | 30 |
Change in Servicing Rights | -1,256 | -283 |
Purchase of Loans Held for Sale at Fair Value | -540,924 | -150,787 |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 547,673 | 150,510 |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -19,922 | -5,169 |
Accounts Receivable | 2,031 | -20 |
Prepaid and Other Assets | -850 | -417 |
Accounts Payable and Accrued Liabilities | 2,204 | 898 |
Payable to Investors | 23,212 | 5,850 |
Class Action Settlement Liability | -2,000 | -2,000 |
Net Cash Used in Operating Activities | -3,541 | |
Cash Flows From Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -47,714 | -44,256 |
Principal Payments of Borrower Loans Held at Fair Value | 36,063 | 28,245 |
Purchases of Property and Equipment | -3,537 | -659 |
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 | 1,859 | -771 |
Net Cash Used in Investing Activities | -17,444 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 47,796 | 43,933 |
Payment of Notes Held at Fair Value | -36,069 | -28,326 |
Proceeds from Early Exercise of Stock Options | 10 | |
Proceeds from Exercise of Vested Stock Options | 522 | 4 |
Net Cash Provided by Financing Activities | 15,621 | |
Net (Decrease) Increase in Cash and Cash Equivalents | -12,225 | -5,364 |
Cash and Cash Equivalents at Beginning of the Period | 50,557 | 18,339 |
Cash and Cash Equivalents at End of the Period | 38,332 | 12,975 |
Prosper Funding LLC [Member] | ||
Cash flows from operating activities: | ||
Net Income (Loss) | 3,784 | 1,648 |
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 | 101 | -210 |
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | -133 | |
Depreciation and Amortization | 1,220 | 277 |
Change in Servicing Rights | -1,443 | -294 |
Purchase of Loans Held for Sale at Fair Value | -540,924 | -150,787 |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 547,673 | 150,510 |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -19,864 | -4,754 |
Accounts Payable and Accrued Liabilities | 205 | 89 |
Payable to Investors | 23,073 | 5,684 |
Other Assets | -15 | 3 |
Net Related Party Payable | -516 | |
Net Cash Used in Operating Activities | 1,517 | |
Cash Flows From Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -47,714 | -44,213 |
Principal Payments of Borrower Loans Held at Fair Value | 36,063 | 28,245 |
Purchases of Property and Equipment | -4,059 | -180 |
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 | 1,860 | -1,119 |
Net Cash Used in Investing Activities | -17,270 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 47,796 | 43,933 |
Payment of Notes Held at Fair Value | -36,069 | -28,326 |
Net Cash Provided by Financing Activities | 15,607 | |
Net (Decrease) Increase in Cash and Cash Equivalents | -3,183 | -146 |
Cash and Cash Equivalents at Beginning of the Period | 23,777 | 5,789 |
Cash and Cash Equivalents at End of the Period | 20,594 | 5,643 |
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 | -180 | |
Previously Stated [Member] | ||
Cash flows from operating activities: | ||
Net Income (Loss) | -2,166 | |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Notes | 32 | |
Change in Fair Value of Borrower Loans Receivable | -332 | |
Change in Fair Value of Loans Held for Sale | 2 | |
Depreciation and Amortization | 363 | |
Stock-Based Compensation | 255 | |
Loss on Impairment of Property and Equipment | 215 | |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -1,189 | |
Accounts Receivable | 36 | |
Prepaid and Other Assets | -445 | |
Accounts Payable and Accrued Liabilities | 1,511 | |
Repurchase liability for unvested stock awards | -105 | |
Class Action Settlement Liability | -2,000 | |
Net Cash Used in Operating Activities | -3,823 | |
Cash Flows From Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -166,608 | |
Principal Payments of Borrower Loans Held at Fair Value | 32,642 | |
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | 121,864 | |
Repayment of Loans Held for Investment at Fair Value | 100 | |
Origination of Loans Held for Investment at Fair Value | -28,858 | |
Proceeds from sale of Borrower Loans at Fair Value | 28,602 | |
Purchases of Property and Equipment | -692 | |
Net Cash Used in Investing Activities | -12,950 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 44,199 | |
Payment of Notes Held at Fair Value | -32,910 | |
Proceeds from Early Exercise of Stock Options | 12 | |
Proceeds of Restricted Stock Vested | 104 | |
Proceeds from Exercise of Vested Stock Options | 4 | |
Net Cash Provided by Financing Activities | 11,409 | |
Net (Decrease) Increase in Cash and Cash Equivalents | -5,364 | |
Cash and Cash Equivalents at Beginning of the Period | 18,339 | |
Cash and Cash Equivalents at End of the Period | 12,975 | |
Previously Stated [Member] | Prosper Funding LLC [Member] | ||
Cash flows from operating activities: | ||
Net Income (Loss) | 2,088 | |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Change in Fair Value of Notes | 32 | |
Change in Fair Value of Borrower Loans Receivable | -332 | |
Change in Fair Value of Loans Held for Sale | 2 | |
Depreciation and Amortization | 235 | |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -1,122 | |
Accounts Payable and Accrued Liabilities | 563 | |
Other Assets | 3 | |
Net Related Party Payable | -463 | |
Net Cash Used in Operating Activities | 1,006 | |
Cash Flows From Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | -166,608 | |
Principal Payments of Borrower Loans Held at Fair Value | 32,642 | |
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | 121,864 | |
Repayment of Loans Held for Investment at Fair Value | 100 | |
Origination of Loans Held for Investment at Fair Value | -28,858 | |
Proceeds from sale of Borrower Loans at Fair Value | 28,602 | |
Net Cash Used in Investing Activities | -12,441 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | 44,199 | |
Payment of Notes Held at Fair Value | -32,910 | |
Net Cash Provided by Financing Activities | 11,289 | |
Net (Decrease) Increase in Cash and Cash Equivalents | -146 | |
Cash and Cash Equivalents at Beginning of the Period | 5,789 | |
Cash and Cash Equivalents at End of the Period | 5,643 | |
Previously Stated [Member] | Prosper Funding LLC [Member] | Property Plant and Equipment Two [Member] | ||
Cash Flows From Investing Activities: | ||
Purchases of Property and Equipment | -183 | |
Adjustment [Member] | ||
Cash flows from operating activities: | ||
Net Income (Loss) | -552 | |
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 | -167 | |
Change in Fair Value of Notes | -32 | |
Change in Fair Value of Borrower Loans Receivable | 332 | |
Change in Fair Value of Loans Held for Sale | -2 | |
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | -133 | |
Depreciation and Amortization | 37 | |
Stock-Based Compensation | -5 | |
Accretion of Class Action Settlement Liability | 30 | |
Change in Servicing Rights | -283 | |
Purchase of Loans Held for Sale at Fair Value | -150,787 | |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 150,510 | |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -3,980 | |
Accounts Receivable | -56 | |
Prepaid and Other Assets | 28 | |
Accounts Payable and Accrued Liabilities | -613 | |
Repurchase liability for unvested stock awards | 105 | |
Payable to Investors | 5,850 | |
Net Cash Used in Operating Activities | 282 | |
Cash Flows From Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | 122,352 | |
Principal Payments of Borrower Loans Held at Fair Value | -4,397 | |
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | -121,864 | |
Repayment of Loans Held for Investment at Fair Value | -100 | |
Origination of Loans Held for Investment at Fair Value | 28,858 | |
Proceeds from sale of Borrower Loans at Fair Value | -28,602 | |
Purchases of Property and Equipment | 33 | |
Maturities of Short Term Investments | 1,271 | |
Purchases of Short Term Investments | -1,274 | |
Changes in Restricted Cash Related to Investing Activities | -771 | |
Net Cash Used in Investing Activities | -4,494 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | -266 | |
Payment of Notes Held at Fair Value | 4,584 | |
Proceeds from Early Exercise of Stock Options | -2 | |
Proceeds of Restricted Stock Vested | -104 | |
Net Cash Provided by Financing Activities | 4,212 | |
Adjustment [Member] | Prosper Funding LLC [Member] | ||
Cash flows from operating activities: | ||
Net Income (Loss) | -440 | |
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 | -210 | |
Change in Fair Value of Notes | -32 | |
Change in Fair Value of Borrower Loans Receivable | 332 | |
Change in Fair Value of Loans Held for Sale | -2 | |
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes | -133 | |
Depreciation and Amortization | 42 | |
Change in Servicing Rights | -294 | |
Purchase of Loans Held for Sale at Fair Value | -150,787 | |
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value | 150,510 | |
Changes in Operating Assets and Liabilities: | ||
Restricted Cash Except for those Related to Investing Activities | -3,632 | |
Accounts Payable and Accrued Liabilities | -474 | |
Payable to Investors | 5,684 | |
Net Related Party Payable | -53 | |
Net Cash Used in Operating Activities | 511 | |
Cash Flows From Investing Activities: | ||
Purchase of Borrower Loans Held at Fair Value | 122,395 | |
Principal Payments of Borrower Loans Held at Fair Value | -4,397 | |
Proceeds from Sale of Borrower Loans Receivable Held at Fair Value | -121,864 | |
Repayment of Loans Held for Investment at Fair Value | -100 | |
Origination of Loans Held for Investment at Fair Value | 28,858 | |
Proceeds from sale of Borrower Loans at Fair Value | -28,602 | |
Maturities of Short Term Investments | 1,271 | |
Changes in Restricted Cash Related to Investing Activities | -1,119 | |
Net Cash Used in Investing Activities | -4,829 | |
Cash Flows from Financing Activities: | ||
Proceeds from Issuance of Notes Held at Fair Value | -266 | |
Payment of Notes Held at Fair Value | 4,584 | |
Net Cash Provided by Financing Activities | 4,318 | |
Adjustment [Member] | Prosper Funding LLC [Member] | Property Plant and Equipment One [Member] | ||
Cash Flows From Investing Activities: | ||
Purchases of Property and Equipment | -1,274 | |
Adjustment [Member] | Prosper Funding LLC [Member] | Property Plant and Equipment Two [Member] | ||
Cash Flows From Investing Activities: | ||
Purchases of Property and Equipment | $3 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], Series D Convertible Preferred Stock [Member], USD $) | 0 Months Ended |
In Millions, except Share data, unless otherwise specified | Apr. 07, 2015 |
Subsequent Event [Member] | Series D Convertible Preferred Stock [Member] | |
Subsequent Event [Line Items] | |
Shares issued (in shares) | 4,777,728 |
Proceeds from issuance of preferred stock | $165 |