Net Interest Income

3 Months Ended

Jun. 30, 2011

Net Interest Income [Abstract]

Net Interest Income

12. Net Interest Income

Revenues primarily result from interest income, transaction fees and adjustments to fair value. Transaction fees include origination fees (borrower member paid) and investor service charges (investor paid). Interest income is accrued and recorded in the accompanying statements of operations as collected. We classify interest and fees earned on our member loans together as interest income on these consolidated financial statements.

The following table summarizes net interest income (expense) as follows:

	Three Months Ended June 30,
	2011		2010
Interest income:
Member loans funded by LendingClub	$	188,152	$	226,828
CM Loans Funded by Notes
Interest and fees earned on CM Loans		7,435,335		3,029,542
Cash and cash equivalents		5,771		6,317
Total interest income	$	7,629,258	$	3,262,687
Interest expense:
Notes
Interest and fees expensed on Notes	$	4,765,469	$	1,779,431
Loans payable		68,406		220,682
Amortization of debt discount on Loan		33,982		74,834
Total interest expense	$	4,867,857	$	2,074,947

A reconciliation of the table above to our Consolidated Statements of Operations is as follows:

Per table above:
Total interest income	$	7,629,258		$	3,262,687
Total interest expense		(4,867,857	)		(2,074,947	)
	$	2,761,401		$	1,187,740
Per Consolidated Statements of Operations:
Net interest income (loss), Member loans	$	91,535		$	(62,371	)
Net interest income (loss), CM Loans and Notes, fair value		2,669,866			1,250,111
Fair value adjustments, net		(257	)		(1,497	)
	$	2,761,144		$	1,186,243