prosper-20230630

Condensed Consolidated Balance Sheets (Unaudited)

Condensed Consolidated Statements of Operations (Unaudited)

Condensed Consolidated Statements of Member’s Equity

Condensed Consolidated Statements of Cash Flows (Unaudited)

Notes to Condensed Consolidated Financial Statements (Unaudited)

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

PART II.

OTHER INFORMATION

Item 1.

Legal Proceedings

Item 1A.

Risk Factors

Item 2.

Unregistered Sale of Equity Securities and Use of Proceeds

Item 3.

Defaults upon Senior Securities

Item 4.

Mine Safety Disclosures

Item 5.

Other Information

Item 6.

Exhibit Index

Signatures

Except as the context requires otherwise, as used herein, “Registrants” refers to Prosper Marketplace, Inc. (“PMI”), a Delaware corporation, and its wholly owned subsidiary, Prosper Funding LLC (“PFL”), a Delaware limited liability company; “we,” “us,” “our,” “Prosper,” and the “Company” refer to PMI and its wholly owned subsidiaries, PFL, BillGuard, Inc. (“BillGuard”), a Delaware corporation, Prosper Healthcare Lending LLC (“PHL”), a Delaware limited liability company, Prosper Warehouse I Trust (“PWIT”), a Delaware statutory trust, Prosper Warehouse II Trust (“PWIIT”), a Delaware statutory trust, Prosper Grantor Trust (“PGT”), a Delaware statutory trust, on a consolidated basis; and “Prosper Funding” refers to PFL and its wholly owned subsidiary, Prosper Depositor LLC, a Delaware limited liability company, on a consolidated basis. In addition, the unsecured personal loans originated through our marketplace are referred to as “Borrower Loans,” and the borrower payment dependent notes issued through our marketplace, whether issued by PMI or PFL, are referred to as “Notes.” Investors currently invest in Borrower Loans through two channels: (i) the “Note Channel,” which allows investors to purchase Notes from PFL, the payments of which are dependent on the payments made on the corresponding Borrower Loan; and (ii) the “Whole Loan Channel,” which allows accredited and institutional investors to purchase Borrower Loans in their entirety directly from PFL. The Notes available to Note Channel investors are distinguishable from notes held by certain third party investors pursuant to Prosper’s securitization transactions, which are referred to herein as “Notes Issued by Securitization Trust.” Finally, although historically the Company has referred to investors as “lender members,” PFL calls them “investors” herein to avoid confusion since WebBank is the lender for Borrower Loans originated through our marketplace.

Forward-Looking Statements

This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as “may,” “believe,” “expect,” “project,” “estimate,” “intend,” “anticipate,” “plan,” “continue” or similar expressions. These statements may appear throughout this Quarterly Report on Form 10-Q, including the sections titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors”. Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Where, in any forward-looking statement, PFL or PMI expresses an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of their respective managements, expressed in good faith and is believed to have a reasonable basis. Nevertheless, there can be no assurance that the expectation or belief will result or be achieved or accomplished.

The following include some but not all of the factors that could cause actual results or events to differ materially from those anticipated:

•the performance of the Notes, which, in addition to being speculative investments, are special, limited obligations that are not guaranteed or insured;

•PFL’s ability to make payments on the Notes, including in the event that borrowers fail to make payments on the corresponding Borrower Loans;

•our ability to attract potential borrowers and investors to our personal loan marketplace;

•the reliability of the information about borrowers that is supplied by borrowers including actions by some borrowers to defraud investors;

•our ability to service the Borrower Loans, and our ability or the ability of a third-party debt collector to pursue collection against any borrower, including in the event of fraud or identity theft;

•credit risks posed by the credit worthiness of borrowers and the effectiveness of our credit rating systems;

•potential efforts by state regulators or litigants to impose liability that could affect PFL’s (or any subsequent assignee’s) ability to continue to charge to borrowers the interest rates that they agreed to pay at origination of their loans;

•the impact of future economic conditions on the performance of the Notes and the loss rates for the Notes;

•the performance of the secured digital Home Equity Loan (“HELoan”) product that was launched in 2022, the unsecured credit card (“Credit Card”) product that was launched in 2021 and the growth of the secured digital Home Equity Line of Credit (“HELOC” and, together with HELoan, “Home Equity”) product that was launched in 2019;

•our compliance with applicable local, state and federal law, including the Investment Advisers Act of 1940, the Investment Company Act of 1940 and other laws;

•our compliance with applicable regulations and regulatory developments or court decisions affecting our business;

•potential efforts by state regulators or litigants to characterize PFL or PMI, rather than WebBank, as the lender of the loans originated through our marketplace;

•the application of federal and state bankruptcy and insolvency laws to borrowers and to PFL and PMI;

•the impact of borrower delinquencies, defaults and prepayments on the returns on the Notes;

•the impact of rising interest rates and inflation on our business, results of operations, financial condition and future prospects;

•the lack of a public trading market for the Notes and the current lack of any trading platform on which investors can resell the Notes;

•the federal income tax treatment of an investment in the Notes and the PMI Management Rights; and

•our ability to prevent security breaches, disruptions in service, and comparable events that could compromise the personal and confidential information held on our data systems, reduce the attractiveness of the platform or adversely impact our ability to service Borrower Loans.

There may be other factors that may cause actual results to differ materially from the forward-looking statements in this Quarterly Report on Form 10-Q. We can give no assurances that any of the events anticipated by the forward-looking

statements will occur or, if any of them does occur, what impact they will have on our results of operations and financial condition. You should carefully read the factors described in the “Risk Factors” sections of this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2022 for a description of certain risks that could, among other things, cause our actual results to differ from these forward-looking statements.

All forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and are expressly qualified in their entirety by the cautionary statements included in this Quarterly Report on Form 10-Q. We undertake no obligation to update or revise forward-looking statements that may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law.

Where You Can Find More Information

The following filings are available for download free of charge at www.prosper.com as soon as reasonably practicable after such filings are electronically filed with, or furnished to, the Securities and Exchange Commission (“SEC”): Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those reports. Our SEC filings are also available to the public on the SEC’s website at www.sec.gov. The information contained on our website is not incorporated into this Quarterly Report on Form 10-Q.

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

Prosper Marketplace, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except for share and per share amounts)


	June 30, 2023		December 31, 2022
Assets:
Cash and Cash Equivalents	$	43,830	$	83,446
Restricted Cash (1)	111,385		113,163
Accounts Receivable	5,084		3,462
Loans Held for Sale, at Fair Value (1)	517,781		499,765
Borrower Loans, at Fair Value	334,259		320,642
Property and Equipment, Net	39,652		38,814
Prepaid and Other Assets (1)	12,036		9,208
Credit Card Derivative	19,542		10,782
Servicing Assets	12,833		12,562
Goodwill	36,368		36,368
Intangible Assets, Net	139		192
Total Assets	$	1,132,909	$	1,128,404
Liabilities, Convertible Preferred Stock and Stockholders' Deficit:
Accounts Payable and Accrued Liabilities	$	41,283	$	37,254
Payable to Investors	75,134		85,312
Notes, at Fair Value	330,747		318,704


Warehouse Lines (1)	474,662		446,762
Term Loan	74,293		73,407
Other Liabilities	31,281		28,258
Convertible Preferred Stock Warrant Liability	194,070		166,346
Total Liabilities	$	1,221,470	$	1,156,043
Commitments and Contingencies (Note 16)
Convertible Preferred Stock – $0.01 par value; 444,760,848 shares authorized as of June 30, 2023 and December 31, 2022; 209,613,570 issued and outstanding as of June 30, 2023 and December 31, 2022. Aggregate liquidation preference of $370,456 as of June 30, 2023 and December 31, 2022.	$	322,748	$	322,748
Less: Convertible Preferred Stock Held by Consolidated VIE (Note 12), 51,247,915 shares issued and outstanding as of June 30, 2023 and December 31, 2022	(2,381)		(2,381)
Stockholders' Deficit:
Common Stock – $0.01 par value; 625,000,000 shares authorized; 77,536,861 shares issued and 76,600,926 shares outstanding, as of June 30, 2023; 75,223,850 shares issued and 74,287,915 shares outstanding, as of December 31, 2022	290		267
Additional Paid-In Capital	159,729		158,814
Less: Treasury Stock	(23,417)		(23,417)
Accumulated Deficit	(545,530)		(483,670)
Total Stockholders' Deficit	$	(408,928)	$	(348,006)
Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit	$	1,132,909	$	1,128,404

(1) Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below.

The following table presents the assets and liabilities of consolidated variable interest entities (VIEs), which are included in the Condensed Consolidated Balance Sheets above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-

party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation.


	June 30, 2023		December 31, 2022
Assets of consolidated VIEs, included in total assets above:
Restricted Cash	$	20,565	$	11,838
Loans Held for Sale, at Fair Value	517,781		499,765

Prepaid and Other Assets	3,967		3,210
Total assets of consolidated variable interest entities	$	542,313	$	514,813
Liabilities of consolidated VIEs, included in total liabilities above:


Warehouse Lines	$	474,662	$	446,762
Total liabilities of consolidated variable interest entities	$	474,662	$	446,762

The accompanying notes are an integral part of these condensed consolidated financial statements.

Prosper Marketplace, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except for share and per share amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenues:
Operating Revenues:
Transaction Fees, Net	$	31,729	$	42,986	$	65,014	$	69,471
Servicing Fees, Net	4,017		3,153		9,070		7,361
(Loss) Gain on Sale of Borrower Loans	(1,976)		3,352		(3,366)		5,031

Other Revenues	1,629		2,014		2,923		3,525
Total Operating Revenues	35,399		51,505		73,641		85,388
Interest Income (Expense):
Interest Income on Borrower Loans and Loans Held for Sale	30,366		20,579		59,385		38,662
Interest Expense on Financial Instruments	(23,404)		(14,101)		(44,563)		(25,870)
Total Interest Income, Net	6,962		6,478		14,822		12,792
Change in Fair Value of Financial Instruments	(10,830)		(2,722)		(16,560)		(4,326)

Total Net Revenue	31,531		55,261		71,903		93,854
Expenses:
Origination and Servicing	12,332		13,873		24,617		25,039
Sales and Marketing	13,624		22,401		29,128		36,085
General and Administrative	23,853		20,687		47,282		39,980


Change in Fair Value of Convertible Preferred Stock Warrants	31,989		(44,075)		27,724		(77,486)

Interest Expense on Term Loan	2,869		—		5,821		—
Gain on Forgiveness of PPP Loan (Note 10)	—		—		—		(8,604)
Other Income, Net	(436)		(310)		(949)		(497)
Total Expenses	84,231		12,576		133,623		14,517
Net (Loss) Income Before Taxes	(52,700)		42,685		(61,720)		79,337
Income Tax Expense	(70)		(20)		(140)		(40)
Net (Loss) Income	$	(52,770)	$	42,665	$	(61,860)	$	79,297

Less: Net Income Allocated to Participating Securities	—		(28,663)		—		(53,352)
Net (Loss) Income Attributable to Common Stockholders	$	(52,770)	$	14,002	$	(61,860)	$	25,945
Net (Loss) Income Per Share – Basic	$	(0.70)	$	0.19	$	(0.82)	$	0.36
Net (Loss) Income Per Share – Diluted	$	(0.70)	$	0.04	$	(0.82)	$	0.07
Weighted Average Shares – Basic	75,777,502		72,971,346		75,483,899		72,643,221
Weighted Average Shares – Diluted	75,777,502		345,337,390		75,483,899		349,077,671

The accompanying notes are an integral part of these condensed consolidated financial statements.

Prosper Marketplace, Inc.

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Deficit (Unaudited)

(in thousands, except for share amounts)



	Convertible Preferred Stock			Convertible Preferred Stock Held by Consolidated VIE			Common Stock			Treasury Stock			Additional Paid-In Capital		Accumulated Deficit		Total
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance as of January 1, 2023	209,613,570	322,748		(51,247,915)	(2,381)		79,465,150	267		(5,177,235)	(23,417)		158,814		(483,670)		(348,006)
Exercise of vested stock options	—	—		—	—		2,313,011	23		—	—		49		—		72
Stock-based compensation expense	—	—		—	—		—	—		—	—		866		—		866
Net loss	—	—		—	—		—	—		—	—		—		(61,860)		(61,860)
Balance as of June 30, 2023	209,613,570	$	322,748	(51,247,915)	$	(2,381)	81,778,161	$	290	(5,177,235)	$	(23,417)	$	159,729	$	(545,530)	$	(408,928)



	Convertible Preferred Stock			Convertible Preferred Stock Held by Consolidated VIE			Common Stock			Treasury Stock			Additional Paid-In Capital		Accumulated Deficit		Total
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance as of January 1, 2022	209,613,570	322,748		(51,247,915)	(2,381)		77,331,229	245		(5,177,235)	(23,417)		157,256		(554,252)		(420,168)
Exercise of vested stock options	—	—		—	—		1,445,547	15		—	—		20		—		35
Stock-based compensation expense	—	—		—	—		—	—		—	—		895		—		895
Net income	—	—		—	—		—	—		—	—		—		79,297		79,297
Balance as of June 30, 2022	209,613,570	$	322,748	(51,247,915)	$	(2,381)	78,776,776	$	260	(5,177,235)	$	(23,417)	$	158,171	$	(474,955)	$	(339,941)



	Convertible Preferred Stock		Convertible Preferred Stock Held by Consolidated VIE		Common Stock		Treasury Stock		Additional Paid-In Capital	Accumulated Deficit	Total
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount
Balance as of January 1, 2023	209,613,570	322,748	(51,247,915)	(2,381)	79,465,150	267	(5,177,235)	(23,417)	158,814	(483,670)	(348,006)
Exercise of vested stock options	—	—	—	—	1,147,009	11	—	—	16	—	27
Stock-based compensation expense	—	—	—	—	—	—	—	—	415	—	415
Net loss	—	—	—	—	—	—	—	—	—	(9,090)	(9,090)
Balance as of March 31, 2023	209,613,570	322,748	(51,247,915)	(2,381)	80,612,159	278	(5,177,235)	(23,417)	159,245	(492,760)	(356,654)
Exercise of vested stock options	—	—	—	—	1,166,002	12	—	—	33	—	45
Stock-based compensation expense	—	—	—	—	—	—	—	—	451	—	451
Net loss	—	—	—	—	—	—	—	—	—	(52,770)	(52,770)
Balance as of June 30, 2023	209,613,570	322,748	(51,247,915)	(2,381)	81,778,161	290	(5,177,235)	(23,417)	159,729	(545,530)	(408,928)



	Convertible Preferred Stock		Convertible Preferred Stock Held by Consolidated VIE		Common Stock		Treasury Stock		Additional Paid-In Capital	Accumulated Deficit	Total
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount
Balance as of January 1, 2022	209,613,570	322,748	(51,247,915)	(2,381)	77,331,229	245	(5,177,235)	(23,417)	157,256	(554,252)	(420,168)
Exercise of vested stock options	—	—	—	—	339,867	4	—	—	4	—	8
Stock-based compensation expense	—	—	—	—	—	—	—	—	341	—	341
Net income	—	—	—	—	—	—	—	—	—	36,632	36,632
Balance as of March 31, 2022	209,613,570	322,748	(51,247,915)	(2,381)	77,671,096	249	(5,177,235)	(23,417)	157,601	(517,620)	(383,187)
Exercise of vested stock options	—	—	—	—	1,105,680	11	—	—	16	—	27
Stock-based compensation expense	—	—	—	—	—	—	—	—	554	—	554
Net income	—	—	—	—	—	—	—	—	—	42,665	42,665
Balance as of June 30, 2022	209,613,570	322,748	(51,247,915)	(2,381)	78,776,776	260	(5,177,235)	(23,417)	158,171	(474,955)	(339,941)

The accompanying notes are an integral part of these consolidated financial statements.

Prosper Marketplace, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)


	Six Months Ended June 30,
	2023		2022
Cash flows from Operating Activities:
Net (Loss) Income	$	(61,860)	$	79,297
Adjustments to Reconcile Net Loss to Net Cash (Used in) Provided by Operating Activities:
Change in Fair Value of Financial Instruments	16,560		4,326
Depreciation and Amortization	5,636		5,335
Amortization of Operating Lease Right-of-use Asset	1,290		1,884
Gain on Termination of Operating Lease Right-of-use Asset	—		(88)
Gain on Sales of Borrower Loans	(4,867)		(5,678)
Change in Fair Value of Servicing Rights	6,645		5,362
Stock-Based Compensation Expense	772		799
Change in Fair Value of Convertible Preferred Stock Warrants	27,724		(77,486)
Gain on Forgiveness of PPP Loan	—		(8,604)
Accrual of payment-in-kind interest on Term Loan	819		—
Other, Net	276		(43)
Changes in Operating Assets and Liabilities:
Purchase of Loans Held for Sale at Fair Value	(1,098,861)		(1,292,648)
Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value	1,057,828		1,214,053
Accounts Receivable	(1,622)		(1,504)
Prepaid and Other Assets	(1,496)		(1,165)
Credit Card Derivative	(1,019)		(702)
Accounts Payable and Accrued Liabilities	3,817		9,687
Payable to Investors	(10,178)		4,839
Other Liabilities	902		(635)
Net Cash Used in Operating Activities	(57,634)		(62,971)
Cash Flows from Investing Activities:
Purchase of Borrower Loans Held at Fair Value	(125,796)		(143,785)
Proceeds from Sales and Principal Payments of Borrower Loans Held at Fair Value	94,316		97,780
Purchases of Property and Equipment	(7,502)		(6,697)
Net Cash Used in Investing Activities	(38,982)		(52,702)
Cash Flows from Financing Activities:
Proceeds from Issuance of Notes Held at Fair Value	123,544		144,310
Payments of Notes Held at Fair Value	(93,866)		(97,730)




Proceeds from Warehouse Lines	48,478		64,900
Principal Payments on Warehouse Lines	(21,127)		—


Payments of debt issuance costs	(1,878)		—
Proceeds from exercise of stock options	71		35
Net Cash Provided by Financing Activities	55,222		111,515
Net Decrease in Cash, Cash Equivalents and Restricted Cash	(41,394)		(4,158)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	196,609		235,625
Cash, Cash Equivalents and Restricted Cash at End of the Period	$	155,215	$	231,467

Supplemental Disclosure of Cash Flow Information:
Cash Paid for Interest	$	48,303	$	25,047


	Six Months Ended June 30,
	2023		2022
Cash paid for operating leases included in the measurement of lease liabilities	1,665		2,931
Non-Cash Investing Activity- Accrual for Property and Equipment, Net	1,279		1,080
Non-Cash Financing Activity - Forgiveness of PPP Loan	—		8,604

Reconciliation to Amounts on Consolidated Balance Sheets:
Cash and Cash Equivalents	$	43,830	$	55,118
Restricted Cash	111,385		176,349
Total Cash, Cash Equivalents and Restricted Cash	$	155,215	$	231,467

The accompanying notes are an integral part of these condensed consolidated financial statements.

PROSPER MARKETPLACE, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

Prosper Marketplace, Inc. (“PMI” or the “Company”) was incorporated in the state of Delaware on March 22, 2005. Except as the context requires otherwise, as used in these notes to the condensed consolidated financial statements of PMI, “Prosper,” “we,” “us,” and “our” refer to PMI and its wholly-owned subsidiaries, on a consolidated basis.

The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and disclosure requirements for interim financial information and the requirements of Article 10 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, 2022. The balance sheet at December 31, 2022 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.

PMI did not have any items of other comprehensive income or loss for any of the periods presented in the condensed consolidated financial statements as of and for the six months ended June 30, 2023 and 2022.

The preparation of Prosper’s condensed consolidated financial statements and related disclosures in conformity with US GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in Prosper’s financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions.

The accompanying interim condensed consolidated financial statements include the accounts of PMI, its wholly-owned subsidiaries and consolidated variable interest entities (“VIEs”). All intercompany balances have been eliminated in consolidation.

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, 2022. There have been no changes to these accounting policies during the first six months of 2023.

Fair Value Measurements

Financial instruments measured at fair value consist principally of Borrower Loans, Loans Held for Sale (Note 4), Servicing Assets (Note 6), Credit Card Derivative (Note 5), Loan Trailing Fee Liabilities (Note 9), Debt (Note 10) and Convertible Preferred Stock Warrant Liability (Note 12). The estimated fair values of other financial instruments, including Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short-term nature. The estimated fair values of the Term Loan and Warehouse Lines (Note 10) do not approximate their carrying values due primarily to differences in the stated and market rates associated with these instruments.

Refer to Note 7, Fair Value of Assets and Liabilities, for additional fair value disclosures.

Restricted Cash

Restricted cash consists primarily of cash deposits, money market funds and short term certificate of deposit accounts held as collateral as required for loan funding and servicing activities, and cash that investors or Prosper have on the marketplace that has not yet been invested in Borrower Loans or disbursed to the investor.

Borrower Loans, Loans Held for Sale and Notes

Borrower Loans are funded either through the Note Channel or through the Whole Loan Channel. Through the Note Channel, Prosper purchases Borrower Loans from WebBank, then issues Notes and holds the Borrower Loans until maturity. The obligation to repay a series of Notes issued through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans funded and Notes issued through the Note Channel are carried on Prosper’s condensed consolidated balance sheets as assets and liabilities, respectively.

Prosper uses Warehouse Lines to purchase Loans Held for Sale that may be subsequently contributed to securitization transactions or sold to investors. Loans Held for Sale are included in “Loans Held for Sale, at Fair Value” on the Consolidated Balance Sheets. See Note 10, Debt for more details on Warehouse Lines.

Borrower Loans and Loans Held for Sale are purchased from WebBank. Prosper places Borrower Loans and Loans Held for Sale on non-accrual status when they are 120 days past due. When a loan is placed on non-accrual status, Prosper stops accruing interest and reverses all accrued but unpaid interest as of such date. Additionally, Prosper charges-off Borrower Loans and Loans Held for Sale when they are 120 days past due. The fair value of loans 120 or more days past due generally consists of the expected recovery from debt sales in subsequent periods.

Prosper has elected the fair value option for Borrower Loans, Loans Held for Sale and Notes. Changes in fair value of Borrower Loans funded through the Note Channel are largely offset by the changes in fair value of Notes due to the borrower payment-dependent design of the Notes. Changes in fair value of Loans Held for Sale are recorded through Proper's earnings and Prosper collects interest on Loans Held for Sale. Changes in the fair values of Borrower Loans, Loans Held for Sale and Notes are included in Change in Fair Value of Financial Instruments on the accompanying condensed consolidated statements of operations.

Prosper primarily uses a discounted cash flow model to estimate the fair value of Borrower Loans, Loans Held for Sale and Notes. The key assumptions used in the valuation include default rates and prepayment rates derived primarily from historical performance, and discount rates based on estimates of the rates of return that investors would require when investing in financial instruments with similar characteristics.

Credit Card Derivative

The Company evaluated the terms of the Credit Card program agreement with Coastal Community Bank (“Coastal”) and determined that it contained features that met the definition of derivatives under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging. These features are freestanding financial instruments (as defined under ASC 480, Distinguishing Liabilities from Equity), and have been valued separately as derivatives. A right of offset exists between the derivatives, and they are presented net on the accompanying consolidated balance sheets. Changes in the fair value of the Credit Card Derivative, as well as settled transactions from the Credit Card portfolio, are recorded in Change in Fair Value of Financial Instruments on the accompanying Condensed Consolidated Statements of Operations.

Refer to Note 5, Credit Card, for additional details on revenues and expenses related to the Credit Card product.

Term Loan

Prosper entered into a Credit Agreement, which provided for a Term Loan with a third-party financial institution in November 2022, which is more fully described in Note 10. This Term Loan is carried at amortized cost, net of discounts and issuance costs, which are subsequently amortized to Interest Expense on Term Loan over the life of the underlying agreement.

Interest Expense on Term Loan is presented as a component of Expenses on the accompanying condensed consolidated statements of operations, except for any portion associated with Term Loan proceeds used to purchase Loans Held for Sale through the Company’s Warehouse Lines, which is presented in Interest Expense on Financial Instruments as a component of Net Interest Income on the accompanying condensed consolidated statement of operations.

Leases

Management determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are included on the Condensed Consolidated Balance Sheets in Property and Equipment, Net and in Other Liabilities, respectively. For certain leases with original terms of twelve months or less, PMI recognizes the lease expense as incurred and does not record ROU assets and lease liabilities.

If a contract contains a lease, management evaluates whether it should be classified as an operating or finance lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of PMI's leases do not provide an implicit rate, management uses an incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The operating lease ROU assets are evaluated for impairment utilizing the same impairment model used for Property and Equipment.

Consolidation of Variable Interest Entities

The determination of whether to consolidate a VIE in which we have a variable interest requires a significant amount of analysis and judgment regarding whether we are the primary beneficiary of a VIE due to our holding a controlling financial interest in the VIE. A controlling financial interest in a VIE exists if we have both the power to direct the VIE’s activities that most significantly affect the VIE’s economic performance and a potentially significant economic interest in the VIE. The determination of whether an entity is a VIE considers factors, such as (i) whether the entity’s equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support and (ii) whether a holder’s equity investment at risk lacks any of the following characteristics of a controlling financial interest: the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the entity’s success, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the legal entity.

Management regularly reviews and reconsiders its previous conclusions regarding the status of an entity as a VIE and whether we are required to consolidate or deconsolidate such VIE in the consolidated financial statements.

Recent Accounting Pronouncements

Accounting Standards Issued, to be Adopted by the Company in Future Periods

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” which provides optional expedients and exceptions for applying GAAP on contract modifications and hedge accounting, in order to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative referenced rates, such as the Secured Overnight Financing Rate. The optional guidance, which became effective on March 12, 2020, could be applied through December 31, 2022. In December 2022, the FASB issued No 2022-06 extending the sunset date of the relief provided under ASU No. 2020-04 to December 31, 2024. The Company amended its agreements and transitioned to SOFR for contracts that previously referenced LIBOR. The Company continues to evaluate potential future impacts that may result from the discontinuation of LIBOR or other reference rates as well as the accounting provided in this update on our financial condition, results of operations, and cash flows.

3. Property and Equipment, Net

Property and Equipment consists of the following at the dates presented (in thousands):


	June 30, 2023		December 31, 2022
Internal-use software and website development costs	$	53,804	$	49,818
Operating lease right-of-use assets	24,449		27,051
Computer equipment	14,281		13,444
Leasehold improvements	6,805		7,157
Office equipment and furniture	2,928		2,810
Assets not yet placed in service	7,293		5,877
Property and equipment	109,560		106,157
Less: Accumulated depreciation and amortization	(69,908)		(67,343)
Total Property and Equipment, Net	$	39,652	$	38,814

Depreciation and amortization expense for Property and Equipment, Net for the three months ended June 30, 2023 and June 30, 2022 was $2.8 million and $2.6 million, respectively. Depreciation and amortization expense for Property and Equipment, Net for the six months ended June 30, 2023 and June 30, 2022 was $5.6 million and $5.3 million, respectively.

These charges are included in Origination and Servicing and General and Administrative expenses on the condensed consolidated statements of operations. PMI capitalized internal-use software and website development costs in the amount of $3.4 million and $2.6 million for the three months ended June 30, 2023 and June 30, 2022, respectively. PMI capitalized internal-use software and website development costs in the amount of $6.7 million and $5.3 million for the six months ended June 30, 2023 and June 30, 2022, respectively. Additionally, disclosures around the operating lease right-of-use assets are included in Note 15.

4. Borrower Loans, Loans Held for Sale and Notes, at Fair Value

The aggregate principal balances outstanding and fair values of Borrower Loans, Loans Held for Sale, and Notes as of June 30, 2023 and December 31, 2022, are presented in the following table (in thousands):


	Borrower Loans				Loans Held for Sale				Notes
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Aggregate principal balance and interest outstanding	$	349,738	$	333,294	$	540,211	$	512,076	$	351,442	$	336,555
Fair value adjustments	(15,479)		(12,652)		(22,430)		(12,311)		(20,695)		(17,851)
Fair value	$	334,259	$	320,642	$	517,781	$	499,765	$	330,747	$	318,704

Borrower Loans

As of June 30, 2023, outstanding Borrower Loans had original terms to maturity of 24, 36, 48 or 60 months, had monthly payments with fixed interest rates ranging from 5.46% to 33.00%, and had various original maturity dates through June 2028. As of December 31, 2022, outstanding Borrower Loans had original terms to maturity of 24, 36, 48 or 60 months, had monthly payments with fixed interest rates ranging from 5.31% to 33.00%, and had various original maturity dates through December 2027.

As of June 30, 2023, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $3.2 million and a fair value of $0.4 million. As of December 31, 2022, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $2.7 million and a fair value of $0.3 million. Prosper places loans on non-accrual status when they are over 120 days past due. As of June 30, 2023 and December 31, 2022, Borrower Loans in non-accrual status had a fair value of $0.3 million and $0.3 million, respectively.

Loans Held for Sale

As of June 30, 2023, outstanding Loans Held for Sale had original terms to maturity of 24, 36, 48 or 60 months, had monthly payments with fixed interest rates ranging from 5.31% to 33.00% and had various original maturity dates through June 2028. As of December 31, 2022, outstanding Loans Held for Sale had original terms to maturity of either 24, 36, 48 or 60 months, had monthly payments with fixed interest rates ranging from 5.31% to 33.00% and had various original maturity dates through December 2027. Interest income earned on Loans Held for Sale by the Company was $17.1 million and $8.9 million for the three months ended June 30, 2023 and June 30, 2022, respectively, and 33.6 million and $17.0 million for the six months ended June 30, 2023 and June 30, 2022, respectively.

As of June 30, 2023, Loans Held for Sale that were 90 days or more delinquent had an aggregate principal amount of $3.6 million and a fair value of $0.5 million. As of December 31, 2022, Loans Held for Sale that were 90 days or more delinquent had an aggregate principal amount of $2.1 million and a fair value of $0.2 million. Prosper places loans on non-accrual status when they are over 120 days past due. As of June 30, 2023 and December 31, 2022, Loans Held for Sale in non-accrual status had a fair value of $0.2 million and $0.2 million, respectively.

5. Credit Card

For the three months ended June 30, 2023 and 2022, the Company recognized $2.7 million and $3.0 million, respectively, of unrealized gains from fair value changes on the Credit Card Derivative. For the six months ended June 30, 2023 and 2022, the Company recognized $8.8 million and $3.9 million, respectively, of unrealized gains from fair value changes on the Credit Card Derivative. Changes from settled transactions underlying the Credit Card Derivative, including income from debt sales on charged off balances, were gains of $0.5 million and $0.4 million for the three months ended June 30, 2023 and 2022, respectively, and a loss of $1.0 million and a gain of $0.6 million, for the six months ended June 30, 2023 and 2022, respectively. These unrealized and settled gains and losses are included in Changes in Fair Value of Financial Instruments on the accompanying condensed consolidated statements of operations.

The Company records revenue from various fees generated from the Credit Card program, including interchange fees, annual fees and late fees, net of a portion of the interchange fees that must be remitted to Coastal. These fees are included in Transaction Fees, Net on the accompanying condensed consolidated statements of operations. For the three months ended June 30, 2023 and 2022, these fees totaled $4.2 million and $1.1 million, respectively, and for the six months ended June 30, 2023 and 2022, these fees totaled $7.6 million and $1.5 million, respectively.

Under the program agreement, Prosper is responsible for servicing the entire underlying Credit Card portfolio. Coastal pays the Company a 1% per annum servicing fee on the daily outstanding balance of receivables designated as Coastal Allocations. To the extent these servicing fees do not exceed the market servicing rate a market participant would require to service the entire Credit Card portfolio, the Company records a servicing obligation liability and measures it at fair value through the servicing period. The net balance of this servicing obligation liability is included in Other Liabilities on the accompanying condensed consolidated balance sheets (Note 9). Changes in the fair value of the servicing obligation liability are recorded in Servicing Fees, Net on the accompanying condensed consolidated statements of operations, and totaled $1.1 million and $1.1 million for the three months ended June 30, 2023 and 2022, respectively, and $2.0 million and $1.2 million for the six months ended June 30, 2023 and 2022, respectively.

6. Servicing Assets

Prosper accounts for Servicing Assets at their estimated fair values with changes in fair values recorded in Servicing Fees, Net on the accompanying condensed consolidated statement of operations. The initial asset or liability is recognized when Prosper sells Borrower Loans to unrelated third-party buyers through the Whole Loan Channel and the servicing rights are retained. The Servicing Assets are measured at fair value throughout the servicing period. The Company recognized a loss on the sale of such Borrower Loans in the amount of $2.0 million and a gain in the amount of $3.4 million for the three months ended June 30, 2023 and 2022, respectively, recorded in (Loss) Gain on Sale of Borrower Loans on the condensed consolidated statements of operations. The Company recognized a loss on the sale of such Borrower Loans in the amount of $3.4 million and a gain in the amount of $5.0 million for the six months ended June 30, 2023 and 2022, respectively, recorded in (Loss) Gain on Sale of Borrower Loans on the condensed consolidated statements of operations.

As of June 30, 2023, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $3.2 billion, original terms to maturity of 24, 36, 48 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 33.00%, and various original maturity dates through June 2028. As of December 31, 2022, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $3.2 billion, original terms to maturity of either 24, 36, 48 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 33.00%, and various original maturity dates through December 2027.

Contractually-specified servicing fees and ancillary fees totaling $7.7 million and $6.5 million for the three months ended June 30, 2023 and 2022, respectively, and $15.9 million and $13.2 million for the six months ended June 30, 2023 and 2022, respectively, are included in the condensed consolidated statements of operations in Servicing Fees, Net.

Fair Value Valuation Method

Prosper uses a discounted cash flow valuation methodology generally consisting of developing an estimate of future cash flows that are expected to occur over the life of a financial instrument and then discounts those cash flows at a rate of return that results in the fair value amount.

Significant unobservable inputs presented in the table within Note 7 below are those that Prosper considers significant to the estimated fair values of the Level 3 Servicing Assets. The following is a description of the significant unobservable inputs provided in the table.

Market Servicing Rate

Prosper estimates adequate market servicing rates that would fairly compensate a substitute servicer should one be required, which includes the profit that would be demanded in the marketplace. This rate is stated as a fixed percentage of outstanding principal balance on a per annum basis. With the assistance of a valuation specialist, Prosper estimates these market servicing rates based on observable market rates for other loan types in the industry and bids from subservicing providers,

adjusted for the unique loan attributes that are present in the specific loans that Prosper sells and services and information from backup service providers.

Discount Rate

The discount rate is a rate of return used to discount future expected cash flows to arrive at a present value, which represents the fair value of the loan servicing rights. We use a range of discount rates for the Servicing Assets based on comparable observed valuations of similar assets and publicly available disclosures related to servicing valuations, with comparability adjustments made to account for differences with Prosper’s servicing assets.

Default Rate

The default rate presented in Note 7 is an annualized, average estimate considering all Borrower Loan categories (i.e., risk ratings and duration), and represents an aggregate of conditional default rate curves for each credit grade or Borrower Loan category. Each point on a particular Borrower Loan category’s curve represents the percentage of principal expected to default per period based on the term and age of the underlying Borrower Loans. The assumption regarding defaults directly reduces servicing revenues because the amount of servicing revenues received is based on the amount collected each period.

Prepayment Rate

The prepayment rate presented in Note 7 is an annualized, average estimate considering all Borrower Loan categories (i.e., risk ratings and duration), and represents an aggregate of conditional prepayment rate curves for each credit grade or Borrower Loan category. Each point on a particular Borrower Loan category’s curve represents the percentage of principal expected to prepay per period based on the term and age of the underlying Borrower Loans. Prepayments reduce servicing revenues as they shorten the period over which we expect to collect fees on the Borrower Loans, which is used to project future servicing revenues.

7. Fair Value of Assets and Liabilities

Prosper measures the fair value of assets and liabilities in accordance with its fair value hierarchy which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. The Company applies this framework whenever other standards require (or permit) assets or liabilities to be measured at fair value.

Assets and liabilities carried at fair value on the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value:

Level 1 — The valuation is based on quoted prices in active markets for identical instruments.

Level 2 — The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation methodologies for which all significant assumptions are observable in the market.

Level 3 — The valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar methodologies, which incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation.

Fair values of assets or liabilities are determined based on the fair value hierarchy, which requires an entity to maximize the use of quoted prices and observable inputs and to minimize the use of unobservable inputs when measuring fair value. Various valuation methodologies are utilized, depending on the nature of the financial instrument, including the use of market prices for identical or similar instruments, or discounted cash flow models. When possible, active and observable market data for identical or similar financial instruments are utilized. Alternatively, fair value is determined using assumptions that management believes a market participant would use in pricing the asset or liability.

Financial Instruments Recorded at Fair Value

The fair value of the Borrower Loans, Loans Held for Sale, Notes, Servicing Assets and Liabilities and loan trailing fee liability are estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The primary assumptions used in the discounted cash flow model include default and prepayment rates primarily derived from historical performance and discount rates applied to each credit grade based on the perceived credit risk of each credit grade.

The fair value of the Credit Card Derivative is also estimated using a discounted cash flow model using certain assumptions. The key assumptions used in the valuation include default and prepayment rates derived primarily from historical performance and relevant market data, adjusted as necessary based on the perceived credit risk of the underlying portfolio. In addition, discount rates based on estimates of the rates of return that investors would require when investing in similar credit card portfolios are applied to the individual freestanding derivatives.

The Convertible Preferred Stock Warrant Liability is valued using a Black-Scholes option pricing model. Refer to Note 12 for further details.

The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands):


June 30, 2023	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Loans Held for Sale at Fair Value	$	—	$	—	$	517,781	$	517,781
Borrower Loans, at Fair Value	—		—		334,259		334,259
SOFR rate swaption (Note 10)	—		707		—		707
Servicing Assets	—		—		12,833		12,833
Credit Card Derivative (Note 5)	—		—		19,542		19,542
Total Assets	$	—	$	707	$	884,415	$	885,122
Liabilities:
Notes, at Fair Value	$	—	$	—	$	330,747	$	330,747

Convertible Preferred Stock Warrant Liability	—		—		194,070		194,070
Loan Trailing Fee Liability (Note 9)	—		—		3,294		3,294
Credit Card servicing obligation liability (Note 5)	—		—		5,769		5,769
Total Liabilities	$	—	$	—	$	533,880	$	533,880


December 31, 2022	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Loans Held for Sale at Fair Value	$	—	$	—	$	499,765	$	499,765
Borrower Loans, at Fair Value	—		—		320,642		320,642
LIBOR rate swaption (Note 10)	—		1,289		—		1,289
Servicing Assets	—		—		12,562		12,562
Credit Card Derivative (Note 5)	$	—	$	—	10,782		10,782
Total Assets	$	—	$	1,289	$	843,751	$	845,040
Liabilities:
Notes, at Fair Value	$	—	$	—	$	318,704	$	318,704

Convertible Preferred Stock Warrant Liability	—		—		166,346		166,346
Loan Trailing Fee Liability (Note 9)	—		—		3,290		3,290
Credit Card servicing obligation liability (Note 5)	$	—	$	—	3,720		3,720
Total Liabilities	$	—	$	—	$	492,060	$	492,060

As PMI’s Borrower Loans, Loans Held for Sale, Notes, Convertible Preferred Stock Warrant Liability, Servicing Assets and Liability, Credit Card Derivative and loan trailing fee liability do not trade in an active market with readily observable prices, the Company uses significant unobservable inputs to measure the fair value of these assets and liabilities. Financial instruments are categorized in the Level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. These fair value estimates may also include observable, actively quoted components derived from external sources. As a result, gains and losses for assets and liabilities within the Level 3 category may include changes in fair value that were attributable to both observable and unobservable inputs. Prosper did not transfer any assets or liabilities in or out of Level 3 for the six months ended June 30, 2023 and June 30, 2022.

Significant Unobservable Inputs

The following tables present quantitative information about the ranges of significant unobservable inputs used for the Company’s Level 3 fair value measurements at June 30, 2023 and December 31, 2022:


	Range
Borrower Loans, Loans Held for Sale and Notes:	June 30, 2023	December 31, 2022
Discount rate	6.2% - 14.0%	5.4% - 13.2%
Default rate	1.6% - 18.7%	1.8% - 18.7%


	Range
Servicing Assets:	June 30, 2023	December 31, 2022
Discount rate	15.0% - 25.0%	15.0% - 25.0%
Default rate	1.8% - 18.9%	2.0% - 19.3%
Prepayment rate	12.2% - 29.6%	14.2% - 28.0%
Market servicing rate (1) (2)	0.648% - 0.842%	0.648% - 0.842%

(1) Servicing assets associated with loans enrolled in a relief program offered by the Company as of June 30, 2023 and December 31, 2022 were measured using a market servicing rate assumption of 84.2 basis points. This rate was estimated using a multiplier consistent with observable market rates for other loan types, applied to the base market servicing rate assumption of 64.8 basis points.

(2) Excludes collection fees that would be passed on to a hypothetical third-party servicer. As of June 30, 2023 and December 31, 2022, the market rate for collection fees and non-sufficient fund fees was assumed to be 6 basis points and 6 basis points, respectively, for a total market servicing rate range of 70.8 - 90.2 basis points and 70.8 - 90.2 basis points, respectively.


	Range
Loan Trailing Fee Liability:	June 30, 2023	December 31, 2022
Discount rate	15.0% - 25.0%	15.0% - 25.0%
Default rate	1.8% - 18.9%	2.0% - 19.3%
Prepayment rate	12.2% - 29.6%	14.2% - 28.0%

Ranges of inputs are not applied to the Credit Card Derivative and Credit Card servicing obligation liability, as they are valued at the portfolio level. Refer below for a summary of the significant unobservable inputs associated with those Level 3 fair value measurements.

At June 30, 2023 and December 31, 2022, the discounted cash flow methodology used to estimate the Notes fair values used the same projected cash flows as the related Borrower Loans.

Changes in Level 3 Fair Value Assets and Liabilities on a Recurring Basis

The following tables present additional information about Level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis (in thousands):


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held For Sale		Notes		Total
Balance at January 1, 2023	$	320,642	$	499,765	$	(318,704)	$	501,703
Purchase of Borrower Loans/Issuance of Notes	125,796		1,098,861		(123,543)		1,101,114
Principal repayments	(92,362)		(129,255)		93,867		(127,750)
Borrower Loans sold to third parties	(1,954)		(928,574)		—		(930,528)
Other changes	196		575		(262)		509
Change in fair value	(18,059)		(23,591)		17,895		(23,755)

Balance at June 30, 2023	$	334,259	$	517,781	$	(330,747)	$	521,293


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at January 1, 2022	$	267,626	$	243,170	$	(265,985)	$	244,811
Purchase of Borrower Loans/Issuance of Notes	143,785		1,292,648		(144,310)		1,292,123
Principal repayments	(96,956)		(83,180)		97,729		(82,407)
Borrower Loans sold to third parties	(824)		(1,130,873)		—		(1,131,697)
Other changes	153		359		(112)		400
Change in fair value	(11,891)		(9,431)		12,157		(9,165)

Balance at June 30, 2022	$	301,893	$	312,693	$	(300,521)	$	314,065


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held For Sale		Notes		Total
Balance at April 1, 2023	$	330,407	$	553,095	$	(327,686)	$	555,816
Purchase of Borrower Loans/Issuance of Notes	61,887		529,059		(60,901)		530,045
Principal repayments	(46,875)		(65,754)		47,583		(65,046)
Borrower Loans sold to third parties	(1,001)		(484,305)		—		(485,306)
Other changes	91		(188)		(209)		(306)
Change in fair value	(10,250)		(14,126)		10,466		(13,910)

Balance at June 30, 2023	$	334,259	$	517,781	$	(330,747)	$	521,293


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held For Sale		Notes		Total
Balance at April 1, 2022	$	281,624	$	284,123	$	(280,674)	$	285,073
Purchase of Borrower Loans/Issuance of Notes	76,891		803,326		(76,581)		803,636
Principal repayments	(48,746)		(43,734)		48,977		(43,503)
Borrower Loans sold to third parties	(489)		(724,595)		—		(725,084)
Other changes	90		79		(159)		10
Change in fair value	(7,477)		(6,506)		7,916		(6,067)

Balance at June 30, 2022	$	301,893	$	312,693	$	(300,521)	$	314,065

The following tables present additional information about Level 3 Servicing Assets measured at fair value on a recurring basis for the three and six month periods ending June 30, 2023 and 2022 (in thousands):


	Servicing Assets
Balance at January 1, 2023	$	12,562
Additions	4,867
Less: Changes in fair value	(4,596)
Balance at June 30, 2023	$	12,833


	Servicing Assets
Balance at January 1, 2022	$	8,761
Additions	5,677
Less: Changes in fair value	(4,115)
Balance at June 30, 2022	$	10,323


	Servicing Assets
Balance at April 1, 2023	$	12,716
Additions	2,554
Less: Changes in fair value	(2,437)
Balance at June 30, 2023	$	12,833


	Servicing Assets
Balance at April 1, 2022	$	8,680
Additions	3,696
Less: Changes in fair value	(2,053)
Balance at June 30, 2022	$	10,323

The following tables present additional information about the Level 3 Credit Card derivative measured at fair value on a recurring basis for the three and six month periods ending June 30, 2023 and 2022 (in thousands):


	Credit Card Derivative
Balance at January 1, 2023	$	10,782
Changes in fair value	8,760
Losses from settled transactions	(1,019)
Add: Net payments made	1,019
Balance at June 30, 2023	$	19,542


	Credit Card Derivative
Balance at January 1, 2022	$	7
Changes in fair value	3,863
Gains from settled transactions	577
Add: Net payments made	414
Balance at June 30, 2022	$	4,861


	Credit Card Derivative
Balance at April 1, 2023	$	16,883
Changes in fair value	2,659
Gains from settled transactions	454
Less: Net payments received	(454)
Balance at June 30, 2023	$	19,542


	Credit Card Derivative
Balance at April 1, 2022	$	885
Changes in fair value	2,985
Gains from settled transactions	351
Add: Net payments made	640
Balance at June 30, 2022	$	4,861

The following tables present additional information about the Level 3 Credit Card servicing obligation liability measured at fair value on a recurring basis for the three and six month periods ending June 30, 2023 and 2022 (in thousands):


	Credit Card Servicing Obligation Liability





Fair Value at January 1, 2023	$	3,720
Change in fair value	2,049
Fair Value at June 30, 2023	$	5,769


	Credit Card Servicing Obligation Liability





Fair Value at January 1, 2022	$	—
Change in fair value	1,246
Fair Value at June 30, 2022	$	1,246


	Credit Card Servicing Obligation Liability





Fair Value at April 1, 2023	$	4,626
Change in fair value	1,143
Fair Value at June 30, 2023	$	5,769


	Credit Card Servicing Obligation Liability





Fair Value at April 1, 2022	$	188
Change in fair value	1,058
Fair Value at June 30, 2022	$	1,246

The following tables present additional information about the Level 3 Convertible Preferred Stock Warrant Liability measured at fair value on a recurring basis for the three and six month periods ending June 30, 2023 and 2022 (in thousands):


	Convertible Preferred Stock Warrant Liability
Balance as of January 1, 2023	$	166,346

Change in fair value	27,724
Balance as of June 30, 2023	$	194,070


	Convertible Preferred Stock Warrant Liability
Balance as of January 1, 2022	$	250,941

Change in fair value	(77,486)
Balance as of June 30, 2022	$	173,455


	Convertible Preferred Stock Warrant Liability
Balance as of April 1, 2023	$	162,081

Change in fair value	31,989
Balance as of June 30, 2023	$	194,070


	Convertible Preferred Stock Warrant Liability
Balance as of April 1, 2022	$	217,530

Change in fair value	(44,075)
Balance as of June 30, 2022	$	173,455

Loan Trailing Fee

The fair value of the Loan Trailing Fee represents the present value of the expected monthly Loan Trailing Fee payments, which takes into consideration certain assumptions related to expected prepayment rates and default rates using a discounted cash flow model. The assumptions used are the same as those used for the valuation of Servicing Assets, as described below.

The following tables present additional information about the Level 3 Loan Trailing Fee Liability measured at fair value on a recurring basis for the three and six month periods ending June 30, 2023 and 2022 (in thousands):


	Loan Trailing Fee Liability
Balance at January 1, 2023	$	3,290
Issuances	1,132
Cash Payment of Loan Trailing Fee	(1,406)
Change in Fair Value	278
Balance at June 30, 2023	$	3,294


	Loan Trailing Fee Liability
Balance at January 1, 2022	$	2,161
Issuances	1,322
Cash Payment of Loan Trailing Fee	(1,010)
Change in Fair Value	101
Balance at June 30, 2022	$	2,574


	Loan Trailing Fee Liability
Balance at April 1, 2023	$	3,308
Issuances	543
Cash Payment of Loan Trailing Fee	(698)
Change in Fair Value	141
Balance at June 30, 2023	$	3,294


	Loan Trailing Fee Liability
Balance at April 1, 2022	$	2,194
Issuances	820
Cash Payment of Loan Trailing Fee	(500)
Change in Fair Value	60
Balance at June 30, 2022	$	2,574

Significant Recurring Level 3 Fair Value Input Sensitivity

Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at June 30, 2023 and December 31, 2022 for Borrower Loans and Loans Held for Sale are presented in the following table (in thousands, except percentages).


Borrower Loans and Loans Held for Sale	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	852,040		$	820,407
Weighted-average discount rate	8.29		%	6.72		%
Weighted-average default rate	9.83		%	9.31		%

Fair value resulting from:
100 basis point increase in discount rate	$	843,644		$	812,061
200 basis point increase in discount rate	$	835,457		$	803,927
Fair value resulting from:
100 basis point decrease in discount rate	$	860,653		$	828,975
200 basis point decrease in discount rate	$	869,490		$	837,773

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	842,390		$	810,657
Applying a 1.2 multiplier to default rate	$	832,812		$	800,989
Fair value resulting from:
Applying a 0.9 multiplier to default rate	$	861,763		$	830,238
Applying a 0.8 multiplier to default rate	$	871,566		$	840,156

Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at June 30, 2023 and December 31, 2022 for Notes are presented in the following table (in thousands, except percentages).


Notes	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	330,747		$	318,704
Weighted-average discount rate	8.31		%	6.87		%
Weighted-average default rate	11.69		%	11.36		%

Fair value resulting from:
100 basis point increase in discount rate	$	327,482		$	315,456
200 basis point increase in discount rate	$	324,299		$	312,291
Fair value resulting from:
100 basis point decrease in discount rate	$	334,095		$	322,037
200 basis point decrease in discount rate	$	337,532		$	325,461

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	326,971		$	314,892
Applying a 1.2 multiplier to default rate	$	323,223		$	311,112
Fair value resulting from:
Applying a 0.9 multiplier to default rate	$	334,551		$	322,547
Applying a 0.8 multiplier to default rate	$	338,387		$	326,425

Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at June 30, 2023 and December 31, 2022 for Servicing Assets is presented in the following table (in thousands, except percentages).


Servicing Assets	June 30, 2023			December 31, 2022
Fair value, using the following assumptions	$	12,833		$	12,562
Weighted-average market servicing rate	0.65		%	0.65		%
Weighted-average prepayment rate	18.60		%	18.47		%
Weighted-average default rate	12.89		%	13.38		%

Fair value resulting from:
Market servicing rate increase of 0.025%	$	11,986		$	11,708
Market servicing rate decrease of 0.025%	$	13,679		$	13,415

Fair value resulting from:
Applying a 1.1 multiplier to prepayment rate	$	12,552		$	12,286
Applying a 0.9 multiplier to prepayment rate	$	13,118		$	12,842

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	12,598		$	12,305
Applying a 0.9 multiplier to default rate	$	13,069		$	12,820

Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at June 30, 2023 and December 31, 2022 for the Credit Card Derivative is presented in the following table (in thousands, except percentages).


Credit Card Derivative	June 30, 2023			December 31, 2022
Fair value, based on the following notional amount and rate assumptions:	$	19,542		$	10,782
Prosper Allocations outstanding	159,956			102,392
Discount rate on Prosper Allocations	24.46		%	26.23		%
Discount rate on Coastal Program Fee	8.60		%	9.26		%
Prepayment rate applied to Credit Card portfolio	9.19		%	10.08		%
Default rate applied to Credit Card portfolio	15.17		%	13.34		%

Fair value resulting from:
100 basis point increase in both discount rates	$	19,339		$	10,699
200 basis point increase in both discount rates	$	19,141		$	10,618
Fair value resulting from:
100 basis point decrease in both discount rates	$	19,749		$	10,866
200 basis point decrease in both discount rates	$	19,961		$	10,951

Fair value resulting from:
Applying a 1.1 multiplier to prepayment rate	$	19,259		$	10,625
Applying a 0.9 multiplier to prepayment rate	$	19,829		$	10,942

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	15,048		$	8,001
Applying a 0.9 multiplier to default rate	$	24,175		$	13,641

Key economic assumptions and the sensitivity of the fair value to immediate changes in those assumptions at June 30, 2023 and December 31, 2022 for Credit Card servicing obligation liability is presented in the following table (in thousands, except percentages).


Credit Card servicing obligation liability:	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	5,769			3,720
Discount rate on Credit Card portfolio servicing obligation	8.60		%	9.26		%

Prepayment rate applied to Credit Card portfolio	9.19		%	10.08		%
Default rate applied to Credit Card portfolio	15.17		%	13.34		%
Market servicing rate	2.00		%	2.00		%

Fair value resulting from:
Market servicing rate increase of 0.10%	$	6,078		$	3,919
Market servicing rate decrease of 0.10%	$	5,461		$	3,521




Fair value resulting from:
Applying a 1.1 multiplier to prepayment rate	$	5,689		$	3,662
Applying a 0.9 multiplier to prepayment rate	$	5,851		$	3,779

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	5,619		$	3,636
Applying a 0.9 multiplier to default rate	$	5,924		$	3,806

These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 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.

Assets and Liabilities Not Recorded at Fair Value

The following table presents the fair value hierarchy for assets, and liabilities not recorded at fair value (in thousands):


June 30, 2023	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Cash and Cash Equivalents	$	43,830	$	43,830	$	—	$	—	$	43,830
Restricted Cash - Cash and Cash Equivalents	108,358		108,358		—		—		108,358
Restricted Cash - Certificates of Deposit	3,027		—		3,027		—		3,027
Accounts Receivable	5,084		—		5,084		—		5,084
Total Assets	$	160,299	$	152,188	$	8,111	$	—	$	160,299
Liabilities:
Accounts Payable and Accrued Liabilities	$	41,283	$	—	$	41,283	$	—	$	41,283
Payable to Investors	75,134		—		75,134		—		75,134

Warehouse Lines	474,662		—		475,008		—		475,008

Term Loan (Note 10)	74,293		—		76,978		—		76,978
Total Liabilities	$	665,372	$	—	$	668,403	$	—	$	668,403


December 31, 2022	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Cash and Cash Equivalents	$	83,446	$	83,446	$	—	$	—	$	83,446
Restricted Cash - Cash and Cash Equivalents	108,284		108,284		—		—		108,284
Restricted Cash - Certificates of Deposit	4,879		—		4,879		—		4,879
Accounts Receivable	3,462		—		3,462		—		3,462
Total Assets	$	200,071	$	191,730	$	8,341	$	—	$	200,071
Liabilities:
Accounts Payable and Accrued Liabilities	$	37,254	$	—	$	37,254	$	—	$	37,254
Payable to Investors	85,312		—		85,312		—		85,312
Warehouse Lines	446,762		—		444,329		—		444,329
Term Loan (Note 10)	73,407		—		76,191		—		76,191
Total Liabilities	$	642,735	$	—	$	643,086	$	—	$	643,086

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.

8. Goodwill and Other Intangible Assets, Net

Goodwill

Prosper’s goodwill balance of $36.4 million at December 31, 2022 did not change during the six months ended June 30, 2023. The Company recorded no goodwill impairment for the six months ended June 30, 2023 and 2022.

Other Intangible Assets

The following table presents the detail of other intangible assets subject to amortization as of the following date (dollars in thousands):


	June 30, 2023
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Remaining Useful Life (In Years)
Developed technology	$	3,060	$	(3,060)	$	—	—
User base and customer relationships	5,050		(4,911)		139		1.8
Brand name	60		(60)		—		—
Total Intangible Assets subject to amortization	$	8,170	$	(8,031)	$	139

Prosper’s intangible asset balance was $0.1 million and $0.2 million at June 30, 2023 and December 31, 2022, respectively. The user base and customer relationships intangible assets are being amortized on an accelerated basis over a three-to-ten year period.

Amortization expense for the three months ended June 30, 2023 and 2022 was not material.

Estimated amortization of purchased intangible assets for future periods is as follows (in thousands):


Year Ending December 31,

2023 (remainder thereof)	$	54
2024	85
Total	$	139

9. Other Liabilities

Other Liabilities consist of the following (in thousands):


	June 30, 2023		December 31, 2022
Operating lease liabilities (Note 15)	$	15,627	$	16,351
Deferred revenue	5,501		3,880
Credit Card servicing obligation liability (Note 5)	5,769		3,720
Loan trailing fee liability	3,294		3,290
Deferred income tax liability	658		658





Other	432		359
Total Other Liabilities	$	31,281	$	28,258

Additionally, disclosures around the operating lease liabilities are included in Note 15.

10. Debt

Term Loan

Credit Agreement

On November 14, 2022, the Company entered into a Credit Agreement with a third-party financial institution, which provides for a $75 million Term Loan maturing on November 14, 2026. Proceeds received from the Term Loan were net of an original issue discount and the Company also incurred approximately $0.4 million in debt issuance costs. Both the original issue discount and the debt issuance costs are being amortized over the life of the Term Loan to interest expense using the effective interest method.

Interest

Borrowings under the Term Loan accrue interest at the Secured Overnight Financing Rate (“SOFR”) plus 9.0% per annum. In addition, all borrowings under the Term Loan accrue payment-in-kind (“PIK”) interest at 2.0% per annum. Any accrued PIK interest that remains unpaid at the end of each month is added to the outstanding principal balance of the Term Loan.

Guarantees and Collateral

PMI’s obligations under the Term Loan are guaranteed by PHL and BillGuard. All obligations under the Credit Agreement are secured by a first priority, perfected lien on substantially all of the assets of PMI (subject to exclusions such as certain cash amounts and deposit accounts), PHL and BillGuard, as well as equity interests in all of PMI’s subsidiaries with the exception of PGT.

Covenants and Other Matters

The Credit Agreement contains a number of covenants that, among other things and subject to certain exceptions and thresholds, restrict PMI’s ability to incur certain new indebtedness; incur certain liens; sell or otherwise dispose of all or substantially all its assets; make loans, advances, and guarantees; and pay dividends or make other distributions on equity interests.

In addition, the Credit Agreement contains certain financial covenants with which the Company must remain in compliance as of the last business day of each month during the life of the Term Loan:

•a minimum tangible net worth

•a minimum net liquidity

•a maximum leverage ratio

•a minimum asset coverage ratio

The Company is in compliance with all covenants as of June 30, 2023, as well as applicable monthly periods for the quarter then ended.

The Credit Agreement also contains certain customary representations and warranties and affirmative covenants, and certain reporting obligations. In addition, the Term Loan lender will be permitted to accelerate all outstanding borrowings and exercise other specified remedies upon the occurrence of certain events of default (subject to certain grace periods and exceptions), which include, among other things, payment defaults, breaches of representations and warranties, covenant defaults, certain cross-defaults to other indebtedness, certain events of bankruptcy and insolvency, certain judgments and changes of control.

Prosper Warehouse Trust Agreements

Prosper’s consolidated VIEs, PWIT and PWIIT (together, “Warehouse VIEs”), each entered into an agreement (together, “Warehouse Agreements”) with certain lenders for committed revolving lines of credit (“Warehouse Lines”) during 2018 and 2019, respectively. In connection with the Warehouse Agreements, the Warehouse VIEs each entered into a security agreement with a bank as administrative agent and a national banking association as collateral trustee and paying agent. Proceeds under the Warehouse Lines may only be used to purchase certain unsecured consumer loans and related rights and documents from Prosper and to pay fees and expenses related to the Warehouse Lines. Both Warehouse VIEs are consolidated because Prosper is the primary beneficiary of the VIEs. The assets of the VIEs can be used only to settle obligations of the VIEs. Additionally, the creditors of the Warehouse Lines have no recourse to the general credit of Prosper. The loans held in

the Warehouse VIEs are included in Loans Held for Sale, at Fair Value and Warehouse Lines are in Warehouse Lines in the condensed consolidated balance sheets.

Both Warehouse Agreements contain the same certain covenants including restrictions on each Warehouse VIE's ability to incur indebtedness, pledge assets, merge or consolidate and enter into certain affiliate transactions. Each Warehouse Agreement also requires Prosper to maintain a minimum tangible net worth of $25 million, minimum net liquidity of $15 million and a maximum leverage ratio of 5:1. Tangible net worth is defined as the sum of (i) (A) Convertible Preferred Stock, (B) total Stockholders’ Deficit and (C) Convertible Preferred Stock Warrant Liability, less the sum of (ii) (A) goodwill and (B) intangible assets. Net liquidity is defined as the sum of cash, cash equivalents and Available for Sale Investments. The leverage ratio is defined as the ratio of total consolidated indebtedness other than non-recourse securitization indebtedness, non-recourse or limited recourse warehouse indebtedness and borrower dependent notes, to tangible net worth. As of June 30, 2023, Prosper was in compliance with the covenants under each Warehouse Agreement.

PWIT Warehouse Line

On January 19, 2018, through PWIT, Prosper entered into a Warehouse Agreement for a Warehouse Line with a national banking association. Effective June 12, 2018, the Warehouse Agreement was amended. The amendments included increasing the committed line of credit from $100 million to $200 million, extending the term of the PWIT Warehouse Line (including the final maturity date), amending the monthly unused commitment fee and reducing the rate at which the PWIT Warehouse Line bears interest.

Subsequently the Warehouse Agreement was amended on June 20, 2019 to extend the facility, to reduce the interest rate and unused commitment fee and to expand the eligibility criteria for unsecured consumer loans that can be financed through the PWIT Warehouse Line. It was amended again on May 19, 2021 to extend the facility, to reduce the interest and advance rates and to include provisions for an alternative benchmark rate in light of the ongoing phaseout of LIBOR.

On May 5, 2023, PMI further amended its PWIT Warehouse Line (“PWIT 2023 Extension”). The PWIT 2023 Extension increased the maximum borrowing amount from $200 million to $244 million, consisting of a $200 million Class A loan with the existing PWIT Warehouse Line national banking association and a $44 million Class B loan with an asset manager. Under the PWIT 2023 Extension, the total advance rate is 91.5%. Proceeds of loans purchased through the PWIT Warehouse Line may be borrowed, repaid and reborrowed until the earlier of June 20, 2024 or the occurrence of any accelerated amortization event or event of default. Repayment on any outstanding proceeds will be made over a 12-month period ending June 20, 2025, excluding the occurrence of any accelerated amortization event or event of default.

Under the PWIT 2023 Extension, the Class A loan bears interest at a rate of one-month SOFR, plus a spread of 2.75% per annum, while the Class B loan bears interest at a rate of one-month SOFR, plus a spread of 8.50% per annum. The spread under both loans increases by 0.15% per annum effective January 1, 2024 unless a securitization or refinancing is executed prior to that date. Additionally, until June 20, 2024, both loans bear a daily unused commitment fee of 0.50% per annum on the undrawn portion available under each respective loan.

As of June 30, 2023, Prosper had $203.3 million in debt and accrued interest outstanding under the PWIT Warehouse Line. This debt is secured by an aggregate outstanding principal balance of $223.2 million included in Loans Held for Sale, at Fair Value on the condensed consolidated balance sheets. At June 30, 2023 the undrawn portion available under the PWIT Warehouse Line was $42.2 million. Prosper incurred $2.2 million of deferred debt issuance costs associated with the PWIT Warehouse Line, including $0.3 million from the amendment signed on May 19, 2021, which are included in “Prepaids and Other Assets” and amortized to interest expense over the term of the revolving arrangement.

Prosper maintains a swaption to limit the Company's exposure to increases in SOFR on up to $185.0 million of borrowings under the PWIT Warehouse Line. The swaption is recorded on the consolidated balance sheet at fair value in Prepaids and Other Assets. Any changes in the fair value are recorded in the Change in Fair Value of Financial Instruments on the condensed consolidated statement of operations. The fair value of the swaption was $0.7 million and $1.3 million as of June 30, 2023 and December 31, 2022, respectively. The change in fair value of the swaption was immaterial for the three months ended June 30, 2023 and 2022, respectively. The change in fair value of the swaption was a loss of $0.5 million and a gain of $0.4 million for the six months ended June 30, 2023 and 2022, respectively.

PWIIT Warehouse Line

On March 28, 2019, through PWIIT, Prosper entered into a second Warehouse Agreement for a $300 million Warehouse Line with a national banking association different than that of PWIT. Subsequently on March 4, 2021, PMI extended its $300 million PWIIT Warehouse Line (“PWIIT 2021 Extension”). The PWIIT 2021 Extension consisted of a $230 million Class A loan with the existing PWIIT Warehouse Line national banking association and a $70 million Class B loan with an asset manager.

On February 10, 2023, PMI again extended its PWIIT Warehouse Line (“PWIIT 2023 Extension”). The PWIIT 2023 Extension increased the maximum borrowing amount from $300 million to $450 million, consisting of a $400 million Class A loan with the existing PWIIT Warehouse Line national banking association and a $50 million Class B loan with the existing asset manager. In May 2023, the Company further amended the PWIIT Warehouse Line, which included replacing the existing Class B lender with another third-party asset manager and lowering the spread on Class B borrowings. In July 2023, the PWIIT Warehouse Line was further amended, decreasing the maximum borrowing amount from $450 million to $300 million, consisting of a $265 million Class A loan and a $35 million Class B loan.

The total advance rate on the PWIIT Warehouse Line is the lesser of (a) 90% and (b) the sum of defined Class A and B advance rates determined primarily on the basis of a proprietary calculation developed by the lenders, which is expected to range from approximately 80% to 90%. This advance rate became applicable to all new and existing borrowings under the PWIIT Warehouse Line at the time the PWIIT 2023 Extension was signed. Under the PWIIT 2023 Extension, proceeds of loans made under the PWIIT Warehouse Line may be borrowed, repaid and reborrowed until the earlier of March 3, 2024 or the occurrence of any accelerated amortization event or event of default. Repayment of any outstanding proceeds will be made over a 24-month period ending March 4, 2026, excluding the occurrence of any accelerated amortization event or event of default.

Under the PWIIT Warehouse Line, the Class A loan bears interest at a per annum rate of the national banking association's asset-backed commercial paper rate, plus a spread of 2.85%. The spread increases by 0.375% during the first 12 months immediately following the termination of the revolving period with an additional increase of 0.375% thereafter. Additionally, the Class A loan bears a monthly unused commitment fee of 0.75% per annum on the undrawn portion available under the Class A loan. The Class B loan bears interest at a per annum rate of adjusted one-month SOFR, plus a spread of 8.75%. The spread increases by 0.375% during the first twelve months immediately following the termination of the revolving period with an additional increase of 0.375% thereafter. Additionally, the Class B loan bears a monthly unused commitment fee of 0.50% or 1.00% per annum on the undrawn portion available under the Class B loan, depending on the Class B loan utilization percentage.

As of June 30, 2023, Prosper had $271.4 million in debt and accrued interest outstanding under the PWIIT Warehouse Line. This debt is secured by an aggregate outstanding principal balance of $312.8 million included in Loans Held for Sale, at Fair Value on the Consolidated Balance Sheets. At June 30, 2023 the undrawn portion available under the PWIIT Warehouse Line was $179.8 million. PMI incurred $1.3 million of debt issuance costs for the PWIIT 2021 Extension and $0.9 million for the PWIIT 2023 Extension, which are included in Prepaids and Other Assets and will be amortized to Interest Expense on Notes and Warehouse Lines over the term of the revolving arrangement.

Paycheck Protection Program Loan

In April 2020, the Company obtained an $8.4 million loan under the PPP, established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and sponsored by the U.S. Small Business Administration (“SBA”). The loan accrued interest at one percent per annum and had a two-year term through April 2022, with payments deferred until such time as an approval or denial of forgiveness was received from the SBA. The Company used the PPP Loan proceeds to cover payroll costs, rent and utilities in accordance with the relevant terms and conditions of the CARES Act.

On March 21, 2022, the Company was notified by the SBA that all principal and interest under the loan, totaling $8.6 million, was forgiven in full through a forgiveness payment made on March 15, 2022 by the SBA to the lender of the PPP loan. As a result, the Company recognized a “Gain on Forgiveness of PPP Loan” for this amount on its accompanying Consolidated Statement of Operations for the six months ended June 30, 2022.

11. Net Income (Loss) Per Share

PMI computes its net income (loss) per share in accordance with ASC Topic 260, Earnings Per Share (“ASC Topic 260”). Under ASC Topic 260, basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities.

PMI’s net income (loss) per share is calculated using the two-class method in accordance with ASC Topic 260. The two-class method allocates earnings that otherwise would have been available to common shareholders to holders of participating securities. Management considers all series of our Convertible Preferred Stock to be participating securities due to their rights to participate in dividends with Common Stock. As such, earnings allocated to these participating securities, which include participation rights in undistributed earnings, are subtracted from net income to determine total undistributed earnings to be allocated to common stockholders.

All participating securities are excluded from basic weighted-average common shares outstanding. Prior to any conversion to common shares, each series of Prosper’s Convertible Preferred Stock is entitled to participate on an if-converted

basis in distributions of earnings, when and if declared by the board of directors, that are made to common stockholders and consequently, these shares were considered participating securities. During the six months ended June 30, 2023 and 2022, certain shares issued as a result of the early exercise of stock options which are subject to a repurchase right by PMI were entitled to receive non-forfeitable dividends during the vesting period and consequently, are considered participating securities.

Basic and diluted net income (loss) per share were calculated as follows for the periods presented (in thousands, except share and per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net (Loss) Income	$	(52,770)	$	42,665	$	(61,860)	$	79,297

Less: Net Income Allocated to Participating Securities	—		(28,663)		—		(53,352)
Net (Loss) Income Attributable to Common Stockholders	$	(52,770)	$	14,002	$	(61,860)	$	25,945
Denominator:
Weighted average shares used in computing basic net income (loss) per share	75,777,502		72,971,346		75,483,899		72,643,221
Effect of dilutive securities:
Stock options	—		58,531,983		—		62,524,031
Warrants	—		569,216		—		645,574
Convertible preferred stock warrants	—		213,264,845		—		213,264,845
Weighted average shares used in computing diluted Net Income (Loss) per Share	75,777,502		345,337,390		75,483,899		349,077,671
Net (Loss) Income Per Share – Basic	$	(0.70)	$	0.19	$	(0.82)	$	0.36
Net (Loss) Income Per Share – Diluted	$	(0.70)	$	0.04	$	(0.82)	$	0.07

The following common stock equivalents were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been anti-dilutive:


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
	(shares)	(shares)	(shares)	(shares)
Excluded securities:
Convertible preferred stock issued and outstanding, excluding shares held by consolidated VIE	158,365,655	158,365,655	158,365,655	158,365,655
Stock options issued and outstanding	80,918,455	12,880,655	80,519,177	14,355,673


Warrants issued and outstanding	1,080,349	511,133	1,080,349	434,775
Series E-1 convertible preferred stock warrants	35,544,141	—	35,544,141	—
Series F convertible preferred stock warrants	177,720,704	—	177,720,704	—
Total common stock equivalents excluded from diluted net (loss) income per common share computation	453,629,304	171,757,443	453,230,026	173,156,103

12. Convertible Preferred Stock, Convertible Preferred Stock Warrant Liability and Common Stock

Convertible Preferred Stock and Warrants

Under PMI’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.

On July 13, 2020, the Company established Prosper Grantor Trust (“PGT”), a revocable grantor trust administered by an independent trustee, with the intention of contributing assets to PGT for the benefit of PMI employees in the event of a change in control through an Eligible Employee Retention Plan. PGT was determined to be a VIE and PMI was determined to be its primary beneficiary due to the fact that the Company, through its role as the grantor, has both (a) the power to direct the

activities that most significantly affect the VIE’s economic performance, including its funding decisions and investment strategy, and (b) the obligation to absorb losses that could be potentially significant to the economic performance of the VIE by virtue of the Company’s requirement to fund PGT in the event that it is unable to meet its obligations to PMI’s employees. PMI also maintains a contingent call liability on PGT’s assets in the event of a bankruptcy. As a result, PGT is fully consolidated into PMI’s consolidated financial statements.

On July 21, 2020, PGT entered into a Stock Transfer Agreement with a PMI investor to purchase 34,670,420 shares of Series A Convertible Preferred Stock and 16,577,495 shares of Series B Convertible Preferred Stock for nominal consideration. Upon execution of the Stock Transfer Agreement, these shares were purchased by a consolidated VIE of the Company, and thus the difference between the fair value of the repurchased stock and the purchase price is included in Convertible Preferred Stock Held by Consolidated VIE on PMI’s accompanying condensed consolidated balance sheets. These shares remain outstanding for legal purposes and retain their voting rights, but are excluded from the earnings per share calculation.

The number of authorized, issued and outstanding shares, their par value and liquidation preference for each series of convertible preferred stock as of June 30, 2023 are disclosed in the table below (amounts in thousands except share and par value amounts):


Convertible Preferred Stock	Par Value		Authorized Shares	Outstanding and Issued Shares		Liquidation Preference, Outstanding Shares
Series A	$	0.01	68,558,220	66,428,185	*	$	19,160
Series A-1	$	0.01	24,760,915	22,515,315		45,031
Series B	$	0.01	35,775,880	35,127,160	*	21,190
Series C	$	0.01	24,404,770	24,404,770		70,075
Series D	$	0.01	23,888,640	23,888,640		165,000
Series E-1	$	0.01	35,544,141	—		—
Series E-2	$	0.01	16,858,078	—		—
Series F	$	0.01	177,720,707	3		—
Series G	$	0.01	37,249,497	37,249,497		50,000
Total			444,760,848	209,613,570		$	370,456

* Series A and Series B Convertible Preferred Stock totals are inclusive of 34,670,420 and 16,577,495 shares, respectively, held by PGT, a consolidated VIE.

Dividends

Dividends on shares of the Series A, Series B, Series C, Series D, Series E-1, Series E-2, Series F and Series G convertible preferred stock are payable only when, as, and if declared by the Board of Directors. No dividends will be paid with respect to the common stock until any declared dividends on the Series A, Series B, Series C, Series D, Series E-1, Series E-2, Series F, and Series G convertible preferred stock have been paid or set aside for payment to the Series A, Series B, Series C, Series D, Series E-1, Series E-2, Series F, and Series G convertible preferred stockholders. After payment of any such dividends, any additional dividends or distributions will be distributed among all holders of common stock and preferred stock in proportion to the number of shares of common stock that would be held by each such holder if all shares of preferred stock were converted to common stock at the then-effective conversion rate. The Series A-1 convertible preferred shares have no dividend rights. To date, no dividends have been declared on any of PMI’s preferred stock or common stock.

Conversion

Under the terms of PMI’s amended and restated certificate of incorporation, the holders of preferred stock have the right to convert such preferred stock into common stock at any time. In addition, all preferred stock automatically converts into common stock (i) immediately prior to the closing of an initial public offering that values Prosper at least at $2 billion and that results in aggregate proceeds to Prosper of at least $100 million or (ii) upon a written request from the holders of at least 60% of the voting power of the outstanding preferred stock (on an as-converted basis), provided that (i) the Series A-1 convertible preferred stock shall not be converted without at least 14% of the voting power of the outstanding Series A-1 convertible preferred stock; (ii) the Series D shall not be converted without at least 60% of the voting power of the outstanding Series D; (iii) the Series E-1 and Series E-2 shall not be converted without at least 60% of the voting power of the outstanding Series E-1 and Series E-2, voting together as a single class; (iv) the Series F shall not be converted without at least 60% of the voting power of the outstanding Series F, and (v) the shares of Series G Preferred Stock will not be automatically converted unless the holders of at least 60% of the outstanding shares of Series G Preferred Stock approve such conversion. In addition, if a holder

of the Series A convertible preferred stock has converted any of the Series A convertible preferred stock, then all of such holder’s shares of Series A-1 convertible preferred stock also will be converted upon a liquidation event (as defined under the certificate of incorporation). In lieu of any fractional shares of common stock to which a holder would otherwise be entitled, PMI shall pay such holder cash in an amount equal to the fair market value of such fractional shares, as determined by its Board of Directors. At present, each of the Series A, Series B, Series C, Series D, Series E-1, Series E-2, and Series F convertible preferred stock converts into PMI common stock at a 1:1 ratio. The Series A-1 convertible preferred stock converts into common stock at a 1,000,000:1 ratio and the Series G convertible preferred stock converts into common stock at a 1:1.36 ratio. The Series G convertible preferred stock conversion ratio reflects the Series G true-up that occurred at end of the vesting period for the Series E-2 and Series F Preferred Stock warrants.

For the Series G true-up, the conversion price of the Series G Convertible Preferred Stock was reduced to a number equal to the Series G Preferred Stock original issuance price, divided by the quotient obtained by dividing the Series G true-up amount by the total number of Series G Preferred Stock issued as of the Series G closing date. The Series G true-up amount means the aggregate number of shares of Series G Preferred Stock that would have been issued to the purchasers of the Series G Preferred Stock on the Series G closing date, if warrants to purchase shares of Series E-2 Preferred Stock or Series F Preferred Stock that were exercisable or exercised as of the true-up time (end of vesting period) had been exercisable or exercised as of such Series G closing date.

Liquidation Rights

PMI’s convertible preferred stock has been classified as temporary equity on the condensed consolidated balance sheets. The preferred stock is not redeemable; however, in the event of a voluntary or involuntary liquidation, dissolution, change in control or winding up of PMI, holders of the convertible preferred stock may have the right to receive its liquidation preference under the terms of PMI’s certificate of incorporation.

Each holder of Series E-1, Series E-2, and Series F convertible preferred stock is entitled to receive prior and in preference to any distribution of proceeds from a liquidation event (as defined under the certificate of incorporation) to the holders of Series A, Series B, Series C, Series D, Series G and Series A-1 convertible preferred stock or common stock, an amount per share for (i) each share of Series E-1 convertible preferred stock equal to the sum of the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share, (ii) each share of Series E-2 convertible preferred stock equal to the sum of two-thirds the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share, and (iii) each share of Series F convertible preferred stock equal to the sum of two-thirds of the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share.

After the payment or setting aside for payment to the holders of Series E-1, Series E-2, and Series F convertible preferred stock, each holder of Series A, Series B, Series C and Series D, Series E-2, Series F, and Series G convertible preferred stock is entitled to receive, on a pari passu basis, prior to and in preference to any distribution of proceeds from a liquidation event (as defined under the certificate of incorporation) to the holders of Series A-1 convertible preferred stock or common stock, (i) an amount per share for each share of Series E-2 and Series F convertible preferred stock equal to the sum of one-third of the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share, and (ii) an amount per share for each share of Series A, Series B, Series C, Series D and Series G convertible preferred stock equal to the sum of the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share.

After the payment or setting aside for payment to the holders of Series A, Series B, Series C, Series D, Series E-1, Series E-2, Series F, and Series G convertible preferred stock, the holders of Series A-1 convertible preferred stock are entitled to receive, prior and in preference to any distribution of proceeds to the holders of common stock, an amount per share for each such share of Series A-1 convertible preferred stock equal to the sum of the liquidation preference specified for such share and all declared but unpaid dividends, if any, on such share.

After the payment or setting aside for payment to the holders of Series A, Series B, Series C, Series D, Series E-1, Series E-2, Series F, Series G, and Series A-1 convertible preferred stock, the entire remaining proceeds legally available for distribution will be distributed pro rata to the holders of Series A convertible preferred stock and common stock in proportion to the number of shares of common stock held by them assuming the Series A convertible preferred stock has been converted into shares of common stock at the then effective conversion rate, provided that the maximum aggregate amount per share of Series A convertible preferred stock which the holders of Series A convertible preferred stock shall be entitled to receive is three times the original issue price for the Series A convertible preferred stock.

At present, the liquidation preferences are equal to $0.29 per share for the Series A convertible preferred stock, $2.00 per share for the Series A-1 convertible preferred stock, $0.60 per share for the Series B convertible preferred stock, $2.87 per share for the Series C convertible preferred stock, $6.91 per share for the Series D convertible preferred stock, $0.84 per share for the Series E-1 convertible preferred stock, $0.84 per share for the Series E-2 convertible preferred

stock, $0.84 per share for the Series F convertible preferred stock and $1.34 per share for the Series G convertible preferred stock.

Voting

Each holder of shares of convertible preferred stock is entitled to the number of votes equal to the number of shares of common stock into which such shares of convertible preferred stock could be converted and has voting rights and powers equal to the voting rights and powers of the common stock. The holders of convertible preferred stock and the holders of common stock vote together as a single class (except with respect to certain matters that require separate votes or as required by law), and are entitled to notice of any stockholders’ meeting in accordance with the Bylaws of PMI.

Convertible Preferred Stock Warrant Liability

Series E-1 Warrants

In connection with the Settlement and Release Agreement dated November 17, 2016 among PMI, its wholly owned subsidiary Prosper Funding LLC (“PFL”) and Colchis, on December 16, 2016, PMI issued the First Series E-1 Warrant. The Second Series E-1 Warrant for an additional 15,277,006 shares of Series E-1 convertible preferred stock was granted on the signing of the Consortium Purchase Agreement (as described in Note 12 of PMI’s 10-K for the year ended December 31, 2022) on February 27, 2017. The warrants expire ten years from the date of issuance. For the three months ended June 30, 2023 and 2022, Prosper recognized $5.3 million of expense and $6.8 million of income, respectively, from the re-measurement of the fair value of the warrants. For the six months ended June 30, 2023 and 2022, Prosper recognized $4.6 million of expense and $11.7 million of income, respectively, from the re-measurement of the fair value of the warrants. The income or expense resulted from the remeasurement of the fair value of the warrants is recorded in Change in Fair Value of Convertible Preferred Stock Warrants on the condensed consolidated statements of operations.

To determine the fair value of the Series E-1 Warrants, the Company first determined the value of a share of Series E-1 Convertible Preferred Stock. To determine the fair value of the Convertible Preferred Stock, the Company first derived the business enterprise value (“BEV”) of the Company using a variety of valuation methods, including discounted cash flow models and market based methods, as deemed appropriate under the circumstances applicable at the valuation date. Once the Company determined an estimated BEV, the option pricing method ("OPM") was used to allocate the BEV to the various classes of our equity, including our preferred stock. The concluded per share value for the Series E-1 Convertible Preferred Stock was utilized as an input to the Black-Scholes option pricing model.

The Company determined the fair value of the outstanding Series E-1 preferred stock warrants utilizing the following assumptions as of the following dates:


	June 30, 2023		December 31, 2022
Volatility	70.0	%	72.0	%
Risk-free interest rate	4.60	%	4.30	%
Expected term (in years)	2.75		2.75
Dividend yield	—	%	—	%

The above assumptions were determined as follows:

Volatility: The volatility is derived from historical volatilities of several unrelated publicly listed peer companies over a period approximately equal to the term of the warrant as the Company has limited information on the volatility of its preferred stock since there is currently no trading history. When making the selections of industry peer companies to be used in the volatility calculation, the Company considered the size, operational, and economic similarities to the Company’s principal business operations.

Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. Treasury yield in effect as of June 30, 2023, and for zero coupon U.S. Treasury notes with maturities approximately equal to the term of the warrant.

Expected Term: The expected term is the period of time for which the warrants are expected to be outstanding.

Dividend Yield: The expected dividend assumption is based on the Company’s current expectations about the Company’s anticipated dividend policy.

Series F Warrants

In connection with the Consortium Purchase Agreement on February 27, 2017, PMI issued warrants to purchase up to 177,720,706 shares of PMI's Series F convertible preferred stock at $0.01 per share. The warrants expire ten years from the date of issuance. For the three months ended 2023 and 2022, Prosper recognized $26.7 million of expense and $37.3 million of income, respectively, from the re-measurement of the fair value of the warrants. For the six months ended June 2023 and 2022, Prosper recognized $23.1 million of expense and $65.8 million of income, respectively, from the re-measurement of the fair value of the warrants. The income or expense resulting from changes in the fair value of the warrant is recorded through Change in Fair Value of Convertible Preferred Stock Warrants on the condensed consolidated statements of operations.

To determine the fair value of the Series F Warrants, the Company first determined the value of a share of Series F Convertible Preferred Stock. To determine the fair value of the Convertible Preferred Stock, the Company first derived the BEV using valuation methods, including a combination of methods, as deemed appropriate under the circumstances applicable at the valuation date. Once the Company determined an estimated BEV, the OPM was used to allocate the BEV to the various classes of Prosper's equity, including our preferred stock. The concluded per share value for the Series F Convertible Preferred Stock warrants utilized the Black-Scholes option pricing model.

The Company determined the fair value of the outstanding Series F Warrants utilizing the following assumptions as of the following dates:


	June 30, 2023		December 31, 2022
Volatility	70.0	%	72.0	%
Risk-free interest rate	4.60	%	4.30	%
Expected term (in years)	2.75		2.75
Dividend yield	—	%	—	%

The above assumptions were determined using the same criteria described above for the Series E-1 Warrants.

The combined activity of the Convertible Preferred Stock Warrant Liability for the Six Months Ended June 30, 2023 and 2022 are presented in Note 7, Fair Value of Assets and Liabilities.

Common Stock

PMI, through its Amended and Restated Certificate of Incorporation, is the sole issuer of common stock and related options, RSUs and warrants. On February 16, 2016, PMI amended and restated its Certificate of Incorporation to, among other things, effect a 5-for-1 forward stock split. On September 20, 2017, PMI further amended its Amended and Restated Certificate of Incorporation to increase the number of shares of common stock authorized for issuance. The total number of shares of stock which PMI has the authority to issue is 1,069,760,848, consisting of 625,000,000 shares of common stock, $0.01 par value per share, and 444,760,848 shares of preferred stock, $0.01 par value per share. As described above, the Company repurchased 2,196,665 shares of Common Stock on December 23, 2019. As of June 30, 2023, 77,536,861 shares of common stock were issued and 76,600,926 shares of common stock were outstanding. As of December 31, 2022, 75,223,850 shares of common stock were issued and 74,287,915 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

For the six months ended June 30, 2023, PMI issued 2,313,011 shares of common stock upon the exercise of vested options for cash proceeds of $71 thousand.

13. Stock-Based Compensation

PMI grants equity awards primarily through its Amended and Restated 2005 Stock Option Plan (the “2005 Plan”), which was approved as amended and restated by its stockholders on December 1, 2010; and its 2015 Equity Incentive Plan, which was approved by its stockholders on April 7, 2015 and subsequently amended by an Amendment No. 1, Amendment No. 2 and Amendment No. 3, which were approved by PMI's stockholders effective as of February 15, 2016, May 31, 2016, and September 5, 2018 respectively (as amended, the “2015 Plan”). In March 2015, the 2005 Plan expired, except that any awards granted under the 2005 Plan prior to its expiration remain in effect pursuant to their terms.

Stock Option Activity

Stock option activity under the 2005 Plan and 2015 Plan is summarized for the six months ended June 30, 2023 below:


	Options Issued and Outstanding	Weighted Average Exercise Price
Balance as of January 1, 2023	77,727,763	$	0.13
Options issued	9,866,430	$	0.33
Options exercised	(2,313,011)	$	0.03
Options forfeited	(1,976,618)	$	0.38

Balance as of June 30, 2023	83,304,564	$	0.15
Options vested and expected to vest as of June 30, 2023	75,260,753	$	0.15
Options vested and exercisable as of June 30, 2023	57,273,400	$	0.07

Other Information Regarding Stock Options

The weighted-average remaining contractual term for options outstanding as of June 30, 2023 is 6.17 years.

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 PMI to make assumptions and judgments about the variables used in the calculation, including the fair value of PMI’s common stock, the expected term (the period of time that the options granted are expected to be outstanding), the volatility of PMI’s common stock, a risk-free interest rate, and expected dividends. Given the absence of a publicly traded market, the Company considered numerous objective and subjective factors to determine the fair value of PMI’s 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 PMI’s preferred stock sold to outside investors, (iii) the rights, preferences and privileges of PMI’s preferred stock relative to PMI’s common stock, (iv) the lack of marketability of PMI’s common stock, (v) developments in the business, (vi) secondary transactions of PMI’s 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. As PMI’s stock is not publicly traded, volatility for stock options is based on an average of the historical volatilities of the common stock of several entities with characteristics similar to those of PMI. The expected term assumptions were determined based on the vesting terms, exercise terms and contractual lives of the options using the simplified method. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. PMI uses an expected dividend yield of zero as it does not anticipate paying any dividends in the foreseeable future.

PMI also estimates forfeitures of unvested stock options. Expected forfeitures are based on the Company’s historical experience. 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.

The fair value of PMI’s stock option awards granted during the three and six months ended June 30, 2023 and 2022 was estimated at the date of grant using the Black-Scholes model with the following average assumptions:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Volatility of common stock	66.59	%	68.50	%	66.62	%	66.95	%
Risk-free interest rate	3.34	%	2.93	%	3.44	%	2.57	%
Expected life (in years)	6.1 years		6.0 years		6.1 years		6.0 years
Dividend yield	—	%	—	%	—	%	—	%

Restricted Stock Unit Activity

In previous years, PMI granted RSUs to certain employees that are subject to three-year or four-year vesting terms and the occurrence of a liquidity event.

The following table summarizes the number of PMI’s RSU activity for six months ended June 30, 2023:


	Number of Shares		Weighted-Average Grant Date Fair Value
Unvested at January 1, 2013	2,602,383		$	1.04



Forfeited	(250)		2.18

Unvested at June 30, 2023	$	2,602,133	$	1.04

Share Based Compensation

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 for the periods presented (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Origination and servicing	$	23	$	35	$	45	$	63
Sales and marketing	67		173		103		201
General and administrative	314		296		624		535
Total stock-based compensation	$	404	$	504	$	772	$	799

As of June 30, 2023, the unamortized stock-based compensation expense, adjusted for forfeiture estimates, related to unvested stock-based awards was approximately $3.1 million, which will be recognized over a remaining weighted-average vesting period of approximately 2.9 years.

14. Income Taxes

For the three months ended June 30, 2023 and 2022, PMI recognized $70 thousand and $20 thousand of income tax expense, respectively. For the six months ended June 30, 2023 and 2022, PMI recognized and $140 thousand and $40 thousand of income tax expense, respectively. The income tax expense relates to state income tax expense and the amortization of tax deductible goodwill which gives rise to an indefinite-lived deferred tax liability. No other income tax expense or benefit was recorded for the six month periods ended June 30, 2023 and 2022 due to a full valuation allowance recorded against the Company’s 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, it is not more likely than not that our deferred tax assets will be realized and therefore a full valuation allowance has been recorded.

15. Leases

Prosper has operating leases for corporate offices and datacenters. These leases have remaining lease terms of less than one year to approximately five years. Some of the lease agreements include options to extend the lease term for up to an additional five years. Rental expense under operating lease arrangements was $1.1 million and $1.2 million for the three months ended June 30, 2023 and 2022, respectively, and $2.2 million and $2.3 million for the six months ended June 30, 2023 and 2022, respectively. Additionally, Prosper subleases certain leased office space to third parties when it determines there is excess leased capacity. Sublease income from operating lease arrangements was $0.1 million and $0.2 million for the three months ended June 30, 2023 and 2022, respectively, and $0.2 million and $0.4 million for the six months ended June 30, 2023 and 2022, respectively.

Operating Lease Right-of-Use (“ROU”) Assets

The following table summarizes the operating lease right-of-use assets as of June 30, 2023, which are included in “Property and Equipment, Net” on the condensed consolidated balance sheets.


	June 30, 2023
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
ROU Assets - Office buildings	$	23,549	$	10,742	$	12,807
ROU Assets - Other	900		866		34
Total right-of-use assets subject to amortization	$	24,449	$	11,608	$	12,841

In May 2022, the Company entered into an amendment to its San Francisco office lease, the most prominent impact of which was to extend the lease term for the Company’s primary space in that office for an additional period through May 2028. As a result of this lease modification, the Company recorded additional ROU operating lease assets and liabilities of $9.9 million.

Lease Liabilities

Future maturities of operating lease liabilities as of June 30, 2023 were as follows (in thousands). The present value of the future minimum lease payments represents our operating lease liabilities as of June 30, 2023 and are included in "Other Liabilities" on the condensed consolidated balance sheets.


	June 30, 2023
Remainder of 2023	$	2,131
2024	4,391
2025	4,517
2026	4,432
2027	3,311
Thereafter	1,411
Total future minimum lease payments	$	20,193
Less imputed interest	(4,566)
Present value of future minimum lease payments	$	15,627

Because the rate implicit in each lease is not readily determinable, we use our incremental borrowing rate to determine the present value of the lease payments. Other information related to leases was as follows (dollars in thousands):


	June 30, 2023


Weighted average remaining lease term (in years)	4.49 years
Weighted average discount rate	11.24	%

16. Commitments and Contingencies

In the normal course of its operations, Prosper becomes involved in various legal actions. Prosper maintains provisions it considers to be adequate for such actions. Prosper does not believe it is probable that the ultimate liability, if any, arising out of any such matters will have a material effect on Prosper's financial condition, results of operations or cash flows.

Operating Commitments

PMI, along with PFL, and WebBank has entered into: (i) an Asset Sale Agreement, dated July 1, 2016, between PFL and WebBank, as most recently amended by a Sixth Amendment dated October 5, 2022 (as amended, the “Sale Agreement”); (ii) the Marketing Agreement, dated July 1, 2016, between PMI and WebBank, as most recently amended by a Sixth Amendment dated June 25, 2021 (as amended, the “Marketing Agreement”); and (iii) the Stand By Purchase Agreement, dated July 1, 2016, between PMI and WebBank, as most recently amended by a Third Amendment dated June 25, 2021 (as amended, the “Purchase Agreement” and, collectively with the Sale Agreement and the Marketing Agreement, the “Origination and Sale

Agreements”). Under the Origination and Sale Agreements, all Borrower Loans originated through the marketplace are made by WebBank under its bank charter.

The Origination and Sale Agreements contain terms through February 1, 2025. Prosper is required, under the Origination and Sale Agreements, to maintain certain collateral requirements. In addition, pursuant to the Marketing Agreement, the marketing fee that Prosper receives in connection with the origination of each loan is partially reduced by an amount (the “Designated Amount”) calculated as a percentage of the principal amount of such loan based on the aggregate principal amount of loans originated for the applicable month. To the extent the aggregate Designated Amount for all loans originated during any month is less than $100,000 through February 1, 2025, Prosper is required to pay WebBank an amount equal to such deficiency. Accordingly, the minimum fee for the remaining six months of 2023 is $0.6 million. The minimum fee is $1.2 million for 2024, and $0.1 million in 2025.

Additionally, Under the Origination and Sale Agreements, Prosper is required to maintain minimum net liquidity of $15.0 million at all times during the term of the agreement. Net liquidity is defined as the sum of Cash, Cash Equivalents and Available for Sale Investments. Violation of this covenant can result in termination of the contract with WebBank. As of June 30, 2023, the Company was in compliance with the covenant.

Loan Purchase Commitments

Prosper entered into an agreement with WebBank to purchase $9.4 million of Borrower Loans that WebBank originated during the last two business days of the quarter ended June 30, 2023. Prosper will purchase these Borrower Loans within the first three business days of the quarter ending September 30, 2023.

Repurchase Obligation

Under the terms of the loan purchase agreements between Prosper and investors that participate in the Whole Loan Channel, Prosper may, in certain circumstances, become obligated to repurchase a Borrower Loan from an investor. 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. Prosper recognizes a liability at fair value for the repurchase obligation when the Borrower Loans are sold. The fair value of the repurchase obligation is estimated based on historical experience. 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. The maximum potential amount of future payments associated with this obligation is the outstanding balances of the Borrower Loans issued to third parties through the Whole Loan Channel, which at June 30, 2023 is $3.2 billion. Prosper has accrued $0.4 million and $0.3 million as of June 30, 2023 and December 31, 2022, respectively, in regard to this obligation.

Under the terms of the indenture and investor registration agreement, Prosper may, in certain circumstances, become obligated to either repurchase a Note or indemnify the investor for any losses resulting from nonpayment of a Note purchased in the Retail Channel. The decision to repurchase or indemnify is in Prosper’s sole discretion. These circumstances include, but are not limited to, the occurrence of verifiable identity theft, a technical error in the automated bidding tools which results in the purchase of a Note that does not match the investor’s investment criteria, or situations in which a loan listing includes a Prosper Rating that is different from the Prosper Rating that should have appeared in the listing for the corresponding Borrower Loan because either PFL inaccurately input data into, or inaccurately applied, the formula for determining the Prosper Rating and, as a result, the interest of the investor is materially and adversely affected. During the six months ended June 30, 2023 the Company repurchased $0.3 million of Notes under these circumstances, and has agreed to indemnify additional Notes with an unpaid principal balance of $1.0 million as of June 30, 2023.

Regulatory Contingencies

Prosper accrues for contingencies when a loss from such contingencies is probable and the amount of loss can be reasonably estimated. In determining whether a loss is probable and if it is possible to quantify the amount of the estimated loss, Prosper reviews and evaluates its litigation and regulatory matters on at least a quarterly basis in light of potentially relevant factual and legal developments. If Prosper determines that an unfavorable outcome is not probable or that the amount of a loss cannot be reasonably estimated, Prosper does not accrue for a potential litigation loss. If an unfavorable outcome is probable and Prosper can estimate a range of outcomes, an amount is recorded which management considers to be the best estimate within the range of potential losses that are both probable and estimable; however, if management cannot quantify the amount of the estimated loss, then the low end of the range of the potential losses is recorded.

West Virginia Matter

In January 2018, the Attorney General of the State of West Virginia (the “Attorney General”) initiated discussions regarding certain acts and practices of PMI and PFL that the Attorney General asserts may have violated the West Virginia Consumer Credit and Protection Act (the “Consumer Act”), to which Prosper responded with such information as was requested by the Attorney General. Following a period of more than a year with limited to no communication, in February 2020, Prosper received a proposed Assurance of Discontinuance (an “AOD”) from the Attorney General requesting that, without in any way admitting that any of its prior practices were in violation of the Consumer Act, Prosper agree to certain terms and conditions regarding its past and potential future conduct of its business with respect to customers in West Virginia, including a release by the Attorney General of any claims it may have related to the matters identified in the AOD. We cannot predict the outcome of the matter and any potential fines or penalties, if any, that may arise from the matter. Further, we are unable to estimate a range of outcomes and as a result no accrual has been made.

No loans have been originated through the Prosper platform to West Virginians since June 2016.

17. Related Parties

Since Prosper’s inception, it has engaged in various transactions with its directors, executive officers, and holders of more than 10% of its voting securities, and immediate family members and other affiliates of its directors, executive officers, and 10% stockholders. Prosper believes that all of the transactions described below were made on terms no less favorable to Prosper than could have been obtained from unaffiliated third parties.

Prosper’s executive officers, directors who are not executive officers, and certain affiliates participate in its marketplace by placing bids and purchasing Notes. The aggregate amount of the Notes purchased and the income earned by parties deemed to be affiliates and related parties of Prosper for the three and six months ended June 30, 2023 and 2022, as well as the Notes outstanding as of June 30, 2023 and December 31, 2022 are summarized below (in thousands):


	Aggregate Amount of Notes Purchased the Three Months Ended June 30,				Interest Earned on Notes the Three Months Ended June 30,
Related Party	2023		2022		2023		2022
Executive officers and management	$	9	$	10	$	2	$	2
Directors (excluding executive officers and management)	—		—		—		—
Total	$	9	$	10	$	2	$	2


	Aggregate Amount of Notes Purchased the Six Months Ended June 30,				Interest Earned on Notes the Six Months Ended June 30,
Related Party	2023		2022		2023		2022
Executive officers and management	$	17	$	19	$	4	$	4
Directors (excluding executive officers and management)	—		—		—		1
Total	$	17	$	19	$	4	$	5


	Notes Balance as of
Related Party	June 30, 2023		December 31, 2022
Executive officers and management	$	53	$	52
Directors (excluding executive officers and management)	3		6
Total	$	56	$	58

18. Significant Concentrations

Prosper is dependent on third-party funding sources such as banks, asset managers, investment funds and Warehouse Lines to provide the funds to allow WebBank to originate Borrower Loans that the third party funding sources will later purchase. Of all Borrower Loans originated in the three months ended June 30, 2023, three individual third parties purchased 10.1%, 11.8% and 16.8% of all Borrower Loans originated. For the three months ended June 30, 2022, three individual third

parties purchased 21.0%, 10.8% and 10.6% of all Borrower Loans originated, and the Company’s Warehouse VIEs purchased 8.7% of such loans. Of all Borrower Loans originated in the six months ended June 30, 2023, three individual third parties purchased 10.6%, 10.6% and 10.3% of all Borrower Loans originated, and the Company’s Warehouse VIEs purchased 14.0% of such loans. For the six months ended June 30, 2022, one individual party purchased 24.0% of such loans, and the Company’s Warehouse VIEs purchased 11.1% of such loans.

Prosper receives all of its personal loan transaction fee revenue from WebBank. Prosper earns a transaction fee from WebBank for its services in facilitating originations of Borrower Loans issued by WebBank. The rate of the transaction fee for each individual Borrower Loan is based on the term and credit grade of the Borrower Loan. No individual borrower or investor accounted for 10% or more of consolidated net revenue for any of the periods presented.

19. Segments

Starting with the fourth quarter of 2022, the Company realigned its reportable and operating segments to better reflect the nature and materiality of its product offerings. As a result of these changes, the Company now has three reportable and operating segments: Personal Loan, Home Equity and Credit Card.

The Company’s Chief Executive Officer, who serves as the chief operating decision maker (“CODM”) evaluates the financial performance of the Company’s segments based upon segment revenues, as well as segment Adjusted Net Revenue and segment Adjusted EBITDA, both non-GAAP profitability measures. Items outside of Adjusted EBITDA are not reported by segment, since they are excluded from the measure of segment profitability reviewed by the CODM. The Company’s CODM does not use segment assets to allocate resources or to assess performance of the segments and, therefore, total segment assets have not been disclosed.

The tables below present segment information reconciled to consolidated Total Net Revenue and Net Income (Loss) Before Income Taxes, as well as interest income and expense included in segment Adjusted Net Revenue and Adjusted EBITDA, for the periods indicated (in thousands).


	Three Months Ended June 30, 2023
	Personal Loan		Home Equity		Credit Card		Total
Total Net Revenue	$	25,737	$	364	$	5,430	$	31,531
Impact of interest rates on fair value of loans held in consolidated trusts	6,037		—		—		6,037
Segment Adjusted Net Revenue	$	31,774	$	364	$	5,430	$	37,568


Segment Adjusted EBITDA	$	(5,551)	$	(889)	$	(2,460)	$	(8,900)
Depreciation expense:
Origination and Servicing							(2,340)
General and Administration - Other							(492)
Amortization of intangibles							(27)
Stock-based compensation							(404)
Change in Fair Value of Convertible Preferred Stock Warrants							(31,989)
Impact of interest rates on fair value of loans held in consolidated trusts							(6,037)
Interest income on cash and cash equivalents							358
Interest Expense on Term Loan							(2,869)
Net Loss Before Income Taxes							$	(52,700)

Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale	$	30,366	$	—	$	—	$	30,366
Interest Expense on Financial Instruments	(23,404)		—		—		(23,404)
Total Interest Income, Net	$	6,962	$	—	$	—	$	6,962


	Three Months Ended June 30, 2022
	Personal Loan		Home Equity		Credit Card		Total
Total Net Revenue	$	50,962	$	1,010	$	3,289	$	55,261
Impact of interest rates on fair value of loans held in consolidated trusts	3,550		—		—		3,550
Segment Adjusted Net Revenue	$	54,512	$	1,010	$	3,289	$	58,811


Segment Adjusted EBITDA	$	9,451	$	(324)	$	(3,860)	$	5,267
Depreciation expense:
Origination and Servicing							(1,962)
General and Administration - Other							(646)
Amortization of intangibles							(34)
Stock-based compensation							(504)
Change in Fair Value of Convertible Preferred Stock Warrants							44,075

Impact of interest rates on fair value of loans held in consolidated trusts							(3,550)
Interest income on cash and cash equivalents							39
Net Income Before Income Taxes							$	42,685

Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale	$	20,579	$	—	$	—	$	20,579
Interest Expense on Financial Instruments	(14,101)		—		—		(14,101)
Total Interest Income, Net	$	6,478	$	—	$	—	$	6,478


	Six Months Ended June 30, 2023
	Personal Loan		Home Equity		Credit Card		Total
Total Net Revenue	$	59,231	$	657	$	12,015	$	71,903
Impact of interest rates on fair value of loans held in consolidated trusts	7,244		—		—		7,244
Segment Adjusted Net Revenue	$	66,475	$	657	$	12,015	$	79,147


Segment Adjusted EBITDA	(10,831)		(1,763)		(2,642)		$	(15,236)
Depreciation expense:
Origination and Servicing							(4,466)
General and Administration - Other							(1,116)
Amortization of intangibles							(54)
Stock-based compensation							(772)
Change in Fair Value of Convertible Preferred Stock Warrants							(27,724)
Impact of interest rates on fair value of loans held in consolidated trusts							(7,244)
Interest income on cash and cash equivalents							713
Interest Expense on Term Loan							(5,821)
Net Loss Before Income Taxes							$	(61,720)

Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale	$	59,385	$	—	$	—	$	59,385
Interest Expense on Financial Instruments	(44,563)		—		—		(44,563)
Total Interest Income, Net	$	14,822	$	—	$	—	$	14,822


	Six Months Ended June 30, 2022
	Personal Loan		Home Equity		Credit Card		Total
Total Net Revenue	$	88,075	$	1,349	$	4,430	$	93,854
Impact of interest rates on fair value of loans held in consolidated trusts	5,334		—		—		5,334
Segment Adjusted Net Revenue	$	93,409	$	1,349	$	4,430	$	99,188


Segment Adjusted EBITDA	13,197		(1,132)		(7,392)		$	4,673
Depreciation expense:
Origination and Servicing							(3,980)
General and Administration - Other							(1,287)
Amortization of intangibles							(68)
Stock-based compensation							(799)
Change in Fair Value of Convertible Preferred Stock Warrants							77,486
Gain on Forgiveness of PPP Loan							8,604
Impact of interest rates on fair value of loans held in consolidated trusts							(5,334)
Interest income on cash and cash equivalents							42
Net Income Before Income Taxes							$	79,337

Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale	$	38,662	$	—	$	—	$	38,662
Interest Expense on Financial Instruments	(25,870)		—		—		(25,870)
Total Interest Income, Net	$	12,792	$	—	$	—	$	12,792

Prosper Funding LLC

Condensed Consolidated Balance Sheets (Unaudited)

(amounts in thousands)


	June 30, 2023		December 31, 2022
Assets:
Cash and Cash Equivalents	$	4,655	$	6,285
Restricted Cash	79,688		91,564
Borrower Loans, at Fair Value	334,259		320,642

Property and Equipment, Net	10,973		10,004
Servicing Assets	15,148		14,860
Other Assets	27		84
Total Assets	$	444,750	$	443,439
Liabilities and Member’s Equity:
Accounts Payable and Accrued Liabilities	$	5,296	$	4,576
Payable to Related Party	1,610		2,853
Payable to Investors	76,691		86,927
Notes, at Fair Value	330,747		318,704
Other Liabilities	3,685		3,608
Total Liabilities	418,029		416,668
Member's Equity:
Member's Equity	6,354		6,354
Retained Earnings	20,367		20,417
Total Member's Equity	$	26,721	$	26,771
Total Liabilities and Member's Equity	$	444,750	$	443,439

The accompanying notes are an integral part of these condensed consolidated financial statements.

Prosper Funding LLC

Condensed Consolidated Statements of Operations (Unaudited)

(amounts in thousands)


	Three Months Ended June 30,			Six Months Ended June 30,
	2023	2022		2023		2022
Revenues:
Operating Revenues:
Administration Fee Revenue - Related Party	10,309	$	14,031	$	20,552	$	24,151
Servicing Fees, Net	6,490	4,562		13,577		9,113
(Loss) Gain on Sale of Borrower Loans	(1,696)	3,797		(2,336)		5,957
Other Revenue	85	361		153		670
Total Operating Revenues	15,188	22,751		31,946		39,891
Interest Income on Borrower Loans	12,952	11,670		25,301		21,636
Interest Expense on Notes	(12,072)	(10,919)		(23,559)		(20,187)
Total Interest Income, Net	880	751		1,742		1,449
Change in Fair Value of Financial Instruments	216	439		(164)		267
Total Net Revenues	16,284	23,941		33,524		41,607
Expenses:
Administration Fee - Related Party	14,601	19,372		29,843		33,807
Servicing	1,990	1,874		3,730		3,522
General and Administrative	—	158		1		296
Total Expenses	16,591	21,404		33,574		37,625
Net Loss	(307)	$	2,537	$	(50)	$	3,982

The accompanying notes are an integral part of these condensed consolidated financial statements.

Prosper Funding LLC

Condensed Consolidated Statements of Member’s Equity (Unaudited)

(amounts in thousands)


	Member’s Equity		Retained Earnings		Total
Balance at January 1, 2023	$	6,354	$	20,417	$	26,771

Net Loss	—		(50)		(50)
Balance as of June 30, 2023	$	6,354	$	20,367	$	26,721

	Member’s Equity		Retained Earnings		Total
Balance at January 1, 2022	$	11,404	$	16,894	$	28,298
Net Income	—		3,982		3,982
Balance as of June 30, 2022	$	11,404	$	20,876	$	32,280


	Member’s Equity		Retained Earnings		Total
Balance at January 1, 2023	$	6,354	$	20,417	$	26,771
Net Income	—		257		257
Balance at March 31, 2023	$	6,354	$	20,674	$	27,028

Net Loss	—		$	(307)	(307)
Balance as of June 30, 2023	$	6,354	$	20,367	$	26,721



	Member’s Equity		Retained Earnings		Total
Balance at January 1, 2022	$	11,404	$	16,894	$	28,298
Net Income	—		1,445		1,445
Balance at March 31, 2022	$	11,404	$	18,339	$	29,743
Net Income	—		2,537		2,537
Balance as of June 30, 2022	$	11,404	$	20,876	$	32,280

The accompanying notes are an integral part of these condensed consolidated financial statements.

Prosper Funding LLC

Condensed Consolidated Statements of Cash Flows (Unaudited)

(amounts in thousands)


	Six Months Ended June 30,
	2023		2022
Cash Flows from Operating Activities:
Net (Loss) Income	$	(50)	$	3,982
Adjustments to Reconcile Net (Loss) Income to Net Cash Used in Operating Activities:
Change in Fair Value of Financial Instruments	164		(267)
Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes	13		(39)
Gain on Sale of Borrower Loans	(5,724)		(6,481)
Change in Fair Value of Servicing Rights	5,436		4,578
Depreciation and Amortization	3,082		2,639
Changes in Operating Assets and Liabilities:
Purchase of Loans Held for Sale at Fair Value	(1,098,861)		(1,292,648)
Proceeds from Sales and Principal Payments of Loans Held for Sale, at Fair Value	1,098,861		1,292,648
Other Assets	57		(202)
Accounts Payable and Accrued Liabilities	720		19
Payable to Investors	(10,236)		4,796
Net Related Party Receivable/Payable	(1,477)		2,089
Other Liabilities	77		467
Net Cash (Used in) Provided by Operating Activities	(7,938)		11,581
Cash Flows from Investing Activities:
Purchase of Borrower Loans Held at Fair Value	(125,796)		(143,785)
Proceeds from Sales and Principal Payments of Borrower Loans, at Fair Value	94,367		97,780
Purchases of Property and Equipment	(3,817)		(3,337)
Net Cash Used in Investing Activities	(35,246)		(49,342)
Cash Flows from Financing Activities:
Proceeds from Issuance of Notes Held at Fair Value	123,544		144,310
Payments of Notes, at Fair Value	(93,866)		(97,730)

Net Cash Provided by Financing Activities	29,678		46,580
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	(13,506)		8,819
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	97,849		167,876
Cash, Cash Equivalents and Restricted Cash at End of the Period	$	84,343	$	176,695

Supplemental Disclosure of Cash Flow Information:
Cash Paid for Interest	$	23,299	$	20,078
Non-Cash Investing Activity - Accrual for Property and Equipment, Net	547		924

Reconciliation to Amounts on Consolidated Balance Sheets:
Cash and Cash Equivalents	$	4,655	$	12,360
Restricted Cash	79,688		164,335
Total Cash, Cash Equivalents and Restricted Cash	$	84,343	$	176,695

The accompanying notes are an integral part of these condensed consolidated financial statements.

PROSPER FUNDING LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

Prosper Funding LLC (“PFL”) was formed in the state of Delaware in February 2012 as a limited liability company with Prosper Marketplace, Inc. (“PMI”) as its sole equity member. Except as the context otherwise requires, as used in these Notes to the condensed consolidated financial statements of Prosper Funding LLC, “PFL”, and the “Company” refers to Prosper Funding LLC and its wholly owned subsidiary, Prosper Depositor LLC, a Delaware limited liability company, on a consolidated basis.

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 Article 10 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, 2022. The balance sheet at December 31, 2022 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.

PFL did not have any items of other comprehensive income or loss for any of the periods presented in the condensed consolidated financial statements as of and for the six months ended June 30, 2023 and 2022.

The preparation of PFL's condensed consolidated financial statements and related disclosures in conformity with US GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in its condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material.

2. Summary of Significant Accounting Policies

PFL's significant accounting policies are included in Note 2, Summary of Significant Accounting Policies, in PFL’s Annual Report on Form 10-K for the year ended December 31, 2022. There have been no changes to these accounting policies during the first six months of 2023.

Fair Value Measurements

Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Borrower Loans, Loans Held for Sale, Accounts Receivable, Accounts Payable and Accrued Liabilities, Payable to Investors and Notes. The estimated fair values of Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short-term nature.

Refer to Note 7 for additional fair value disclosures.

Restricted Cash

Restricted Cash consists primarily of cash deposits, money market funds and short-term certificate of deposit accounts held as collateral as required for long term leases, loan funding and servicing activities, and cash that investors have on our marketplace that has not yet been invested in Borrower Loans or disbursed to the investor.

Borrower Loans, Loans Held for Sale and Notes

With respect to the Note Channel, PFL purchases Borrower Loans from WebBank, then issues Notes and holds the Borrower Loans until maturity. The obligation to repay a series of Notes funded through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans and Notes funded through the Note Channel are carried on PFL’s condensed consolidated balance sheets as assets and liabilities, respectively.

PFL places Borrower Loans and Loans Held for Sale on non-accrual status when they are 120 days past due. When a loan is placed on non-accrual status, PFL stops accruing interest and reverses all accrued but unpaid interest as of such date. Additionally, PFL charges-off Borrower Loans and Loans Held for Sale when they are 120 days past due. The fair value of loans 120 days past due generally consists of the expected recovery from debt sales in subsequent periods.

Management has elected the fair value option for Borrower Loans, Loans Held for Sale, and Notes. Changes in fair value of Borrower Loans are largely offset by the changes in fair value of Notes due to the borrower payment-dependent design of the Notes. Changes in fair value of Borrower Loans, Loans Held for Sale and Notes are included in “Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net” on the condensed consolidated statements of operations.

PFL primarily uses a discounted cash flow model to estimate the fair value of Borrower Loans, Loans Held for Sale and Notes. The key assumptions used in the valuation include default rates and prepayment rates derived primarily from historical performance and discount rates based on estimates of the rates of return that investors would require when investing in financial instruments with similar characteristics.

Recent Accounting Pronouncements

Accounting Standards Adopted In The Current Period

No accounting standards were adopted in the current period for PFL.

Accounting Standards Issued, To Be Adopted By PFL In Future Periods

No issued and pending accounting standards were identified that are expected to have an impact on PFL.

3. Property and Equipment, Net

Property and equipment consist of the following as of the dates presented (in thousands):


	June 30, 2023		December 31, 2022
Internal-use software and web site development costs	$	40,864	$	37,428
Less accumulated depreciation and amortization	(29,891)		(27,424)
Total property and equipment, net	$	10,973	$	10,004

Depreciation expense for the three months ended June 30, 2023 and 2022 was $1.6 million and $1.3 million, respectively. Depreciation expense for the six months ended June 30, 2023 and 2022 was $3.1 million and $2.6 million, respectively.

4. Borrower Loans and Notes, at Fair Value

The aggregate principal balances outstanding and fair values of Borrower Loans and Notes as of June 30, 2023 and December 31, 2022, are presented in the following table (in thousands):


	Borrower Loans				Notes
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Aggregate principal balance outstanding and interest outstanding	$	349,738	$	333,294	$	351,442	$	336,555
Fair value adjustments	(15,479)		(12,652)		(20,695)		(17,851)
Fair value	$	334,259	$	320,642	$	330,747	$	318,704

As of June 30, 2023, outstanding Borrower Loans had original terms to maturity of 24, 36, 48 or 60 months, had monthly payments with fixed interest rates ranging from 5.46% to 33.00% and had various original maturity dates through June 2028. As of December 31, 2022, outstanding Borrower Loans had original maturities of either 24, 36, 48 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 33.00%, and had various original maturity dates through December 2027.

As of June 30, 2023, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $3.2 million and a fair value of $0.4 million. As of December 31, 2022, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $2.7 million and a fair value of $0.3 million. PFL places loans on non-accrual status when they are over 120 days past due. As of June 30, 2023 and December 31, 2022, Borrower Loans in non-accrual status had a fair value of $0.3 million and $0.3 million, respectively.

5. Servicing Assets

PFL accounts for Servicing Assets at their estimated fair values with changes in fair values recorded in Servicing Fees, Net on the condensed consolidated statements of operations. The initial asset or liability is recognized when PFL sells Borrower Loans to unrelated third-party buyers through the Whole Loan Channel and the servicing rights are retained. PFL recognized a loss on the sale of such Borrower Loans in the amount of $1.7 million and a gain in the amount of $3.8 million for the three months ended June 30, 2023 and 2022, respectively, recorded in (Loss) Gain on Sale of Borrower Loans on the condensed consolidated statements of operations. PFL recognized a loss on the sale of such Borrower Loans in the amount of $2.3 million and a gain in the amount of $6.0 for the six months ended June 30, 2023 and 2022, respectively, recorded in (Loss) Gain on Sale of Borrower Loans on the condensed consolidated statements of operations.

As of June 30, 2023, Borrower Loans that were sold, but for which PFL retained servicing rights, had a total outstanding principal balance of $3.7 billion, original terms of 24, 36, 48 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 33.00%, and various original maturity dates through June 2028. As of December 31, 2022, Borrower Loans that were sold, but for which PFL retained servicing rights, had a total outstanding principal balance of $3.7 billion, original terms of either 24, 36, 48 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 33.00%, and various original maturity dates through December 2027.

Contractually-specified servicing fees and ancillary fees totaled $10.1 million and $7.5 million for the three months ended June 30, 2023 and 2022, respectively, and $20.3 million and $15.1 million for the six months ended June 30, 2023 and 2022, and are included in Servicing Fees, Net on the condensed consolidated statements of operations.

Fair Value Valuation Method

PFL uses a discounted cash flow valuation methodology generally consisting of developing an estimate of future cash flows that are expected to occur over the life of a financial instrument and then discounting those cash flows at a rate of return that results in the fair value amount.

Significant unobservable inputs presented in the table within Note 7 are those that PFL considers significant to the estimated fair values of the Level 3 Servicing Assets. The following is a description of the significant unobservable inputs provided in the table.

Market Servicing Rate

PFL estimates adequate market servicing rates that would fairly compensate a substitute servicer should one be required, which includes the profit that would be demanded in the marketplace. This rate is stated as a fixed percentage of outstanding principal balance on a per annum basis. With the assistance of a valuation specialist, PFL estimates these market servicing rates based on observable market rates for other loan types in the industry and bids from sub-servicing providers, adjusted for the unique loan attributes that are present in the specific loans that PFL sells and services and information from backup service providers.

Discount Rate

The discount rate is a rate of return used to discount future expected cash flows to arrive at a present value, which represents the fair value of the loan servicing rights. Management used a range of discount rates for the Servicing Assets based on comparable observed valuations of similar assets and publicly available disclosures related to servicing valuations, with comparability adjustments made to account for differences with PFL’s Servicing Assets.

Default Rate

Prepayment Rate

The prepayment rate presented in Note 7 is an annualized, average estimate considering all Borrower Loan categories (i.e., risk ratings and duration), and represents an aggregate of conditional prepayment rate curves for each credit grade or Borrower Loan category. Each point on a particular Borrower Loan category’s curve represents the percentage of principal expected to prepay per period based on the term and age of the underlying Borrower Loans. Prepayments reduce servicing revenues as they shorten the period over which PFL expects to collect fees on the Borrower Loans, which is used to project future servicing revenues.

6. Income Taxes

PFL incurred no income tax provision for the six months ended June 30, 2023 and 2022. PFL is a U.S. disregarded entity and its income and loss are included in the income tax reporting of its parent, PMI. Since PMI is in a taxable loss position, is not currently subject to income taxes, and has fully reserved against its deferred tax asset, the net effective tax rate for PFL is 0%.

7. Fair Value of Assets and Liabilities

PFL has elected to record certain financial instruments at fair value on the balance sheet. PFL classifies Borrower Loans, Loans Held for Sale and Notes as financial instruments and assesses their fair value each on a quarterly basis for financial statement presentation purposes. Gains and losses on these financial instruments are shown separately on the condensed consolidated statements of operations.

As of June 30, 2023 and December 31, 2022, the discounted cash flow methodology used to estimate the Notes fair values used the same projected cash flows as the related Borrower Loans. As demonstrated in the table below, the fair value adjustments for Borrower Loans were largely offset by the fair value adjustments of the Notes due to the borrower payment dependent design of the Notes and because the principal balances of the Borrower Loans approximated the principal balances of the Notes.

Assets and liabilities carried at fair value on the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value:

Level 1 — The valuation is based on quoted prices in active markets for identical instruments.

Financial Instruments Recorded at Fair Value

The fair value of the Borrower Loans and Notes are estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The primary cash flow assumptions used to value such Borrower Loans and Notes include default and prepayment rates derived primarily from historical performance and discount rates that reflect estimates of the rates of return that investors would require when investing in financial instruments with similar characteristics.

The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands):


June 30, 2023	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Borrower Loans, at Fair Value	$	—	$	—	$	334,259	$	334,259
Servicing Assets	—		—		15,148		15,148
Total Assets	$	—	$	—	$	349,407	$	349,407
Liabilities:
Notes, at Fair Value	$	—	$	—	$	330,747	$	330,747

Loan Trailing Fee Liability	—		—		3,294		3,294
Total Liabilities	$	—	$	—	$	334,041	$	334,041


December 31, 2022	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Borrower Loans, at Fair Value	$	—	$	—	$	320,642	$	320,642
Servicing Assets	—		—		14,860		14,860
Total Assets	$	—	$	—	$	335,502	$	335,502
Liabilities:
Notes, at Fair Value	$	—	$	—	$	318,704	$	318,704

Loan Trailing Fee Liability	—		—		3,290		3,290
Total Liabilities	$	—	$	—	$	321,994	$	321,994

As PFL’s Borrower Loans, Notes, Servicing Assets and loan trailing fee liability do not trade in an active market with readily observable prices, PFL uses significant unobservable inputs to measure the fair value of these assets and liabilities. Financial instruments are categorized in the Level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. These fair value estimates may also include observable, actively quoted components derived from external sources. As a result, the realized and unrealized gains and losses for assets and liabilities within the Level 3 category may include changes in fair value that were attributable to both observable and unobservable inputs. PFL did not transfer any assets or liabilities in or out of Level 3 for the six months ended June 30, 2023 or June 30, 2022.

Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs used for PFL’s Level 3 fair value measurements at the dates presented:


	Range
Borrower Loans and Notes	June 30, 2023	December 31, 2022
Discount rate	6.9% - 13.7%	5.6% - 12.9%
Default rate	1.8% - 18.7%	1.8% - 18.2%


	Range
Servicing Assets	June 30, 2023	December 31, 2022
Discount rate	15.0% - 25.0%	15.0% - 25.0%
Default rate	1.6% - 18.9%	2.0% - 19.3%
Prepayment rate	12.2% - 29.6%	14.2% - 28.0%
Market servicing rate (1) (2)	0.648% - 0.842%	0.648% - 0.842%


	Range
Loan Trailing Fee Liability	June 30, 2023	December 31, 2022
Discount rate	15.0% - 25.0%	15.0% - 25.0%
Default rate	1.6% - 18.9%	2.0% - 19.3%
Prepayment rate	12.2% - 29.6%	14.2% - 28.0%

Changes in Level 3 Fair Value Assets and Liabilities on a Recurring Basis

The following tables present additional information about Level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis (in thousands):


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at January 1, 2023	$	320,642	$	—	$	(318,704)	$	1,938
Originations	125,796		1,098,861		(123,543)		1,101,114
Principal repayments	(92,362)		—		93,867		1,505
Borrower Loans sold to third parties	(1,954)		(1,098,861)		—		(1,100,815)
Other changes	196		—		(262)		(66)
Change in fair value	(18,059)		—		17,895		(164)

Balance at June 30, 2023	$	334,259	$	—	$	(330,747)	$	3,512


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at January 1, 2022	$	267,626	$	—	$	(265,985)	$	1,641
Originations	143,785		1,292,648		(144,310)		1,292,123
Principal repayments	(96,956)		—		97,729		773
Borrower Loans sold to third parties	(824)		(1,292,648)		—		(1,293,472)
Other changes	153		—		(112)		41
Change in fair value	(11,891)		—		12,157		266
Balance at June 30, 2022	$	301,893	$	—	$	(300,521)	$	1,372


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at April 1, 2023	$	330,407	$	—	$	(327,686)	$	2,721
Originations	61,887		529,059		(60,901)		530,045
Principal repayments	(46,875)		—		47,583		708
Borrower Loans sold to third parties	(1,001)		(529,059)		—		(530,060)
Other changes	91		—		(209)		(118)
Change in fair value	(10,250)		—		10,466		216

Balance at June 30, 2023	$	334,259	$	—	$	(330,747)	$	3,512


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at April 1, 2022	$	281,624	$	—	$	(280,674)	$	950
Originations	76,891		803,326		(76,581)		803,636
Principal repayments	(48,746)		—		48,977		231
Borrower Loans sold to third parties	(489)		(803,326)		—		(803,815)
Other changes	90		—		(159)		(69)
Change in fair value	(7,477)		—		7,916		439
Balance at June 30, 2022	$	301,893	$	—	$	(300,521)	$	1,372

The following tables present additional information about Level 3 Servicing Assets recorded at fair value (in thousands):


	Servicing Assets
Balance as of January 1, 2023	$	14,860
Additions	5,724
Less: Changes in fair value	(5,436)
Balance as of June 30, 2023	$	15,148


	Servicing Assets
Balance as of January 1, 2022	$	9,796
Additions	6,480
Less: Changes in fair value	(4,577)
Balance as of June 30, 2022	$	11,699


	Servicing Assets
Balance as of April 1, 2023	$	15,249
Additions	2,785
Less: Changes in fair value	(2,886)
Balance as of June 30, 2023	$	15,148


	Servicing Assets
Balance as of April 1, 2022	$	9,910
Additions	4,090
Less: Changes in fair value	(2,301)
Balance as of June 30, 2022	$	11,699

Loan Trailing Fee Liability

The fair value of the Loan Trailing Fee Liability represents the present value of the expected monthly Loan Trailing Fee payments, which takes into consideration certain assumptions related to expected prepayment rates and default rates using a discounted cash flow model. The assumptions used are the same as those used for the valuation of Servicing Assets, as described below.

The following tables present additional information about Level 3 Loan Trailing Fee Liability measured at fair value on a recurring basis (in thousands):


	Loan Trailing Fee Liability
Balance as of January 1, 2023	$	3,290
Issuances	1,132
Cash payment of Loan Trailing Fee	(1,406)
Change in fair value	278
Balance as of June 30, 2023	$	3,294


	Loan Trailing Fee Liability
Balance as of January 1, 2022	$	2,161
Issuances	1,322
Cash payment of Loan Trailing Fee	(1,010)
Change in fair value	101
Balance as of June 30, 2022	$	2,574


	Loan Trailing Fee Liability
Balance as of April 1, 2023	3,308
Issuances	543
Cash payment of Loan Trailing Fee	(698)
Change in fair value	141
Balance as of June 30, 2023	$	3,294


	Loan Trailing Fee Liability
Balance as of April 1, 2022	2,194
Issuances	820
Cash payment of Loan Trailing Fee	(500)
Change in fair value	60
Balance as of June 30, 2022	$	2,574

Significant Recurring Level 3 Fair Value Asset and Liability Input Sensitivity

Key economic assumptions are used to compute the fair value of Borrower Loans. The sensitivity of the fair value to immediate changes in assumptions at June 30, 2023 and December 31, 2022 for Borrower Loans are presented in the following table (in thousands, except percentages).


Borrower Loans:	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	334,259		$	320,642
Weighted-average discount rate	8.31		%	6.87		%
Weighted-average default rate	11.69		%	11.36		%

Fair value resulting from:
100 basis point increase in discount rate	$	330,965		$	317,380
200 basis point increase in discount rate	$	327,753		$	314,201
Fair value resulting from:
100 basis point decrease in discount rate	$	337,638		$	323,991
200 basis point decrease in discount rate	$	341,104		$	327,429

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	330,473		$	316,832
Applying a 1.2 multiplier to default rate	$	326,716		$	313,053
Fair value resulting from:
Applying a 0.9 multiplier to default rate	$	338,073		$	324,484
Applying a 0.8 multiplier to default rate	$	341,919		$	328,361

Key economic assumptions are used to compute the fair value of Notes. The sensitivity of the fair value to immediate changes in assumptions at June 30, 2023 and December 31, 2022 for Notes funded through the Note Channel are presented in the following table (in thousands, except percentages).


Notes	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	330,747		$	318,704
Weighted-average discount rate	8.31		%	6.87		%
Weighted-average default rate	11.69		%	11.36		%

Fair value resulting from:
100 basis point increase in discount rate	$	327,482		$	315,456
200 basis point increase in discount rate	$	324,299		$	312,291
Fair value resulting from:
100 basis point decrease in discount rate	$	334,095		$	322,037
200 basis point decrease in discount rate	$	337,532		$	325,461

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	326,971		$	314,892
Applying a 1.2 multiplier to default rate	$	323,223		$	311,112
Fair value resulting from:
Applying a 0.9 multiplier to default rate	$	334,551		$	322,547
Applying a 0.8 multiplier to default rate	$	338,387		$	326,425

Key economic assumptions are used to compute the fair value of Servicing Assets. The sensitivity of the current fair value to immediate changes in assumptions at June 30, 2023 and December 31, 2022 for Servicing Assets are presented in the following table (in thousands, except percentages).


Servicing Assets	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	15,148		$	14,860
Weighted-average market servicing rate	0.650		%	0.649		%
Weighted-average prepayment rate	18.93		%	18.77		%
Weighted-average default rate	12.28		%	12.63		%

Fair value resulting from:
Market servicing rate increase of 0.025%	$	14,149		$	13,850
Market servicing rate decrease of 0.025%	$	16,147		$	15,870

Fair value resulting from:
Applying a 1.1 multiplier to prepayment rate	$	14,816		$	14,534
Applying a 0.9 multiplier to prepayment rate	$	15,485		$	15,191

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	14,871		$	14,557
Applying a 0.9 multiplier to default rate	$	15,426		$	15,165

8. Commitments and Contingencies

In the normal course of its operations, PFL becomes involved in various legal actions. PFL maintains provisions it considers to be adequate for such actions. The Company does not believe it is probable that the ultimate liability, if any, arising out of any such matters will have a material effect on financial condition, results of operations or cash flows.

Operating Commitments

equal to such deficiency. Accordingly, the minimum fee for the remaining six months of 2023 is $0.6 million. The minimum fee is $1.2 million for 2024, and $0.1 million in 2025.

Loan Purchase Commitments

Under the terms of PFL’s agreement with WebBank, PFL is committed to purchase $9.4 million of Borrower Loans that WebBank originated during the last two business days of the quarter ended June 30, 2023. PFL will purchase these Borrower Loans within the first three business days of the quarter ending September 30, 2023.

Repurchase Obligation

Under the terms of the loan purchase agreements between PFL and investors that participate in the Whole Loan Channel, PFL may, in certain circumstances, become obligated to repurchase a Borrower Loan from an investor. 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. PFL 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 repurchase obligation is the outstanding balances of the Borrower Loans issued through the Whole Loan Channel, which as of June 30, 2023 is $3.7 billion. PFL has accrued $0.4 million and $0.3 million as of June 30, 2023 and December 31, 2022, respectively, in regard to this obligation.

Under the terms of the indenture and investor registration agreement, Prosper may, in certain circumstances, become obligated to either repurchase a Note or indemnify the investor for any losses resulting from nonpayment of a Note purchased in the Retail Channel. The decision to repurchase or indemnify is in Prosper’s sole discretion. These circumstances include, but are not limited to, the occurrence of verifiable identity theft, a technical error in the automated bidding tools which results in the purchase of a Note that does not match the investor’s investment criteria, or situations in which a loan listing includes a Prosper Rating that is different from the Prosper Rating that should have appeared in the listing for the corresponding Borrower Loan because either PFL inaccurately input data into, or inaccurately applied, the formula for determining the Prosper Rating and, as a result, the interest of the investor is materially and adversely affected. During the six months ended June 30, 2023 the Company has repurchased $0.3 million of the underlying notes. The Company is indemnifying an additional $1.0 million in outstanding Notes as of June 30, 2023.

Regulatory Contingencies

PFL accrues for contingencies when a loss from such contingencies is probable and the amount of loss can be reasonably estimated. In determining whether a loss is probable and if it is possible to quantify the amount of the estimated loss, PFL reviews and evaluates its litigation and regulatory matters on at least a quarterly basis in light of potentially relevant factual and legal developments. If PFL determines that an unfavorable outcome is not probable or that the amount of a loss cannot be reasonably estimated, PFL does not accrue for a potential litigation loss. If an unfavorable outcome is probable and PFL can estimate a range of outcomes, PFL records the amount management considers to be the best estimate within the range of potential losses that are both probable and estimable; however, if management cannot quantify the amount of the estimated loss, then PFL records the low end of the range of those potential losses.

West Virginia Matter

In January 2018, the Attorney General of the State of West Virginia (the “Attorney General”) initiated discussions regarding certain acts and practices of PMI and PFL that the Attorney General asserts may have violated the West Virginia Consumer Credit and Protection Act (the “Consumer Act”), to which PMI responded with such information as was requested by the Attorney General. Following a period of more than a year with limited to no communication, in February 2020, PMI received a proposed Assurance of Discontinuance (an “AOD”) from the Attorney General requesting that, without in any way admitting that any of its prior practices were in violation of the Consumer Act, PMI agreed to certain terms and conditions regarding its past and potential future conduct of its business with respect to customers in West Virginia, including a release by the Attorney General of any claims it may have related to the matters identified in the AOD. We cannot predict the outcome of the matter and any potential fines or penalties, if any, that may arise from the matter. Further, we are unable to estimate a range of outcomes and as a result no accrual has been made.

No loans have been originated through the PFL platform to West Virginians since June 2016.

9. Related Parties

Since inception, PFL has engaged in various transactions with its directors, executive officers, PMI, and immediate family members and other affiliates of its directors, executive officers, and PMI. PFL believes that all of the transactions described below were made on terms no less favorable to PFL than could have been obtained from unaffiliated third parties.

PFL’s executive officers and 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 PFL for the three and six months ended June 30, 2023 and 2022 are summarized below (in thousands):


	Aggregate Amount of Notes Purchased				Interest Earned on Notes
	Three Months Ended June 30,				Three Months Ended June 30,
Related Party	2023		2022		2023		2022
Executive officers and management	$	8	$	9	$	2	$	2
Directors (excluding executive officers and management)	—		—		—		—
Total	$	8	$	9	$	2	$	2


	Aggregate Amount of Notes Purchased				Interest Earned on Notes
	Six Months Ended June 30,				Six Months Ended June 30,
Related Party	2023		2022		2023		2022
Executive officers and management	$	15	$	18	$	4	$	3
Directors (excluding executive officers and management)	—		—		—		—
Total	$	15	$	18	$	4	$	3

The balance of Notes held by officers and directors who are not executive officers are as follows (in thousands):


	Notes Balance as of
Related Party	June 30, 2023		December 31, 2022
Executive officers and management	$	46	$	45
Directors (excluding executive officers and management)	—		—
Total	$	46	$	45

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This management’s discussion and analysis of financial condition and results of operations, or MD&A, contains forward-looking statements that involve risks and uncertainties. Please see “Forward-Looking Statements” in this Quarterly Report on Form 10-Q for a discussion of the uncertainties, risks, and assumptions associated with these statements. This discussion should be read in conjunction with Prosper’s historical condensed consolidated financial statements and related notes thereto and the other disclosures contained elsewhere in this Quarterly Report on Form 10-Q. The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods, and Prosper’s actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to those included in the “Risk Factors” sections and elsewhere in this Quarterly Report on Form 10-Q and Prosper’s Annual Report on Form 10-K for the year ended December 31, 2022.

PROSPER MARKETPLACE, INC.

Overview

Our vision is to transform lives by providing affordable financial solutions through the simplest and most trusted platform. We currently offer access to three lending products, each of which supports our vision: (i) unsecured personal loans through a personal loan marketplace which connects eligible consumer borrowers with individual and institutional investors, (ii) a Credit Card product available to eligible borrowers, and (iii) Home Equity products available to eligible homeowners.

We believe our business model has key advantages relative to traditional banks, including (i) an innovative marketplace model that efficiently connects qualified supply and demand of capital, (ii) online operations that substantially reduce the need for physical infrastructure and improve convenience, and (iii) use of advanced technology and machine learning to deliver simple, fast, personalized, and transparent solutions that can improve consumers’ financial health as they move across the credit spectrum. We do not operate physical branches or incur expenses related to infrastructure like traditional banks or consumer finance institutions. As part of operating our marketplace, we verify the identity of borrowers and assess borrowers’ credit risk profile using a combination of public and proprietary data. Our proprietary technology automates several loan origination and servicing functions, including the borrower application process, data gathering, underwriting, credit scoring, loan funding, investing and servicing, regulatory compliance and fraud detection.

For the year ended December 31, 2022, our marketplace facilitated $3.3 billion in Borrower Loan originations, of which $3.1 billion were funded through our Whole Loan Channel, representing 92% of the total Borrower Loans originated through our marketplace during this period. From inception through June 30, 2023, our marketplace has facilitated $24.7 billion in Borrower Loan originations, of which $22.2 billion were funded through our Whole Loan Channel, representing 90% of the total Borrower Loans originated through our marketplace during this period. For the three months ended June 30, 2023, our marketplace facilitated $595.6 million in Borrower Loan originations, a decrease of 33% from the same period in 2022. The percentage of loans funded through the Whole Loan Channel for the three months ended June 30, 2023 was 90%.

As a credit marketplace, we believe our customers are highly susceptible to uncertainties and negative trends, real or perceived, in the markets driven by, among other factors, general economic conditions in the United States and abroad. These external economic conditions and resulting trends or uncertainties could adversely impact our customers’ ability or desire to participate on our marketplace as borrowers or investors and, consequently, could negatively affect our business and results of operations.

Key Operating and Financial Metrics (in thousands)

The following table displays our key operating and financial metrics for the three and six months ended June 30, 2023 and 2022.


	Three Months Ended June 30,			Six Months Ended June 30,
	2023		2022	2023		2022
Personal Loan Originations	$	595,579	891,896	$	1,227,442	1,452,388
Transaction Fees, Net	31,729		42,986	65,014		69,471
Whole Loans Outstanding (1)	3,722,938		2,881,346	3,722,938		2,881,346
Servicing Fees, Net	4,017		3,153	9,070		7,361
Total Net Revenues	31,531		55,261	71,903		93,854
Net (Loss) Income	(52,770)		42,665	(61,860)		79,297
Adjusted Net Revenue (2)	37,568		58,811	79,147		99,188
Adjusted EBITDA (2)	(8,900)		5,267	(15,236)		4,673

(1) Balance as of June 30.

(2) Adjusted Net Revenue and Adjusted EBITDA are non-GAAP financial measures. For more information regarding these measures and the reconciliation to Total Net Revenue and Net Income (Loss), respectively, the most comparable US GAAP measures, see “Non-GAAP Financial Measures.”

Loan Originations

From inception through June 30, 2023, a total of 1,987,282 Borrower Loans totaling $24.7 billion were originated through Prosper’s marketplace.

For the three months ended June 30, 2023, 42,108 Borrower Loans totaling $595.6 million were originated through Prosper’s marketplace, compared to 84,957 Borrower Loans totaling $891.9 million during the three months ended June 30, 2022. This represents a decrease of 50% in terms of the number of loans and a decrease of 33% in the dollar amount of loans. The originations decrease for the quarter ended June 30, 2023 versus the quarter ended June 30, 2022 is due primarily to reduced investor demand given the current uncertain economic environment.

Loan origination volume by Prosper Rating was as follows for the periods presented (in millions, except percentages):


	Three Months Ended June 30,								Six Months Ended June 30,
	2023				2022				2023				2022
	Amount		%		Amount		%		Amount		%		Amount		%
AA	$	93.2	16	%	$	122.5	14	%	$	180.7	15	%	$	167.0	11	%
A	75.7		13	%	155.1		17	%	166.8		14	%	226.0		16	%
B	150.6		25	%	123.5		15	%	316.6		26	%	216.0		15	%
C	89.4		15	%	118.1		13	%	183.5		15	%	206.1		14	%
D	61.6		10	%	81.4		9	%	135.1		11	%	131.4		9	%
E	69.6		12	%	91.2		10	%	135.5		11	%	120.1		8	%
HR	5.2		1	%	10.1		1	%	9.5		1	%	10.6		1	%
Other (1)	50.3		8	%	190.0		21	%	99.7		7	%	375.2		26	%
Total	$	595.6			$	891.9			$	1,227.4			$	1,452.4

(1) Represents loans originated through the Prosper platform via the Whole Loan Channel but not assigned Prosper Ratings.

For the three and six months ended June 30, 2023, compared to the corresponding periods in 2022, the mix of originations on the Prosper platform reflects a significant decrease in investor appetite under the current economic environment for higher risk loans, including those not assigned Prosper ratings. These loans are sold only to institutional investors and based on specific underwriting criteria and custom risk models developed by these investors.

Whole Loans Outstanding

We sell Borrower Loans through our Whole Loan Channel, and the outstanding balance of these loans serves as a primary driver of our Servicing Assets. Whole loans outstanding increased $0.8 billion or 29% from June 30, 2022 to June 30, 2023. This increase is primarily due to increases in originations for the past several quarters prior to the second quarter of 2023, driven by various factors including an improved competitive environment, as well as an increase in purchases of loans through our consolidated warehouse trusts.

Net Income (Loss)

See the section titled “Results of Operations” below, for the discussion on significant changes in Net Income (Loss) year-over-year.

Results of Operations

Overview

The following tables summarize Prosper’s net income (loss) for the three and six months ended June 30, 2023 and 2022 (in thousands, except percentages):


	Three Months Ended June 30,
	2023		2022		Change		% Change
Total Net Revenues	$	31,531	$	55,261	$	(23,730)	(43)	%
Total Expenses	84,231		12,576		71,655		n/m
Net (Loss) Income Before Taxes	(52,700)		42,685		(95,385)		n/m
Income Tax Expense	(70)		(20)		(50)		250	%
Net (Loss) Income	$	(52,770)	$	42,665	$	(95,435)	n/m


	Six Months Ended June 30,
	2023		2022		Change		% Change
Total Net Revenues	71,903		93,854		$	(21,951)	(23)	%
Total Expenses	133,623		14,517		119,106		n/m
Net (Loss) Income Before Taxes	(61,720)		79,337		(141,057)		n/m
Income Tax Expense	(140)		(40)		(100)		250	%
Net (Loss) Income	$	(61,860)	$	79,297	$	(141,157)	n/m

n/m: not meaningful

Total Net Revenues for the three months ended June 30, 2023 decreased $23.7 million as compared to the same period in 2022. The decrease was primarily attributable to a $11.3 million decrease in Transaction Fees, Net, due to the decrease in originations during this time, as discussed above. There was also a $8.1 million decrease in Total Net Revenues from Change in Fair Value of Financial Instruments, Net, due primarily to higher delinquencies and charge-offs for loans held in consolidated warehouse trusts and the Credit Card portfolio underlying the Credit Card Derivative, both of which have increased in size from the prior year. Additionally, higher interest rates have led to negative fair value adjustments on Loans Held for Sale. Finally, there was a $5.3 million decrease in (Loss) Gain on Sale of Borrower Loans, due primarily to incentive fees (“incentives”) provided to whole loan investors driven by market volatility and incentives offered by competitors. These decreases were partially offset by a $0.9 million increase in Servicing Fees, Net and $0.5 million increase in Total Interest Income (Expense), Net, due primarily to the increase in whole loans outstanding discussed above.

Total Expenses for the three months ended June 30, 2023 increased $71.7 million as compared to the same period in 2022, primarily due to the Change in Fair Value of Convertible Preferred Stock Warrants, which is in turn driven by changes in the fair value of the underlying Convertible Preferred Stock. Specifically, the loss for the three months ended June 30, 2023 totals $32.0 million, which compares to a gain of $44.1 million for the corresponding period in 2022, a change of $76.1 million. We also incurred $2.9 million in Interest Expense for the three months ended June 30, 2023 on the Term Loan we closed in November 2022 (Note 10). These increases were partially offset by a combined $7.2 million decrease in Origination and Servicing, Sales and Marketing and General and Administrative expenses, as costs decreased in response to lower originations.

Accordingly, the net loss for the three months ended June 30, 2023 increased $95.4 million when compared to the net income for the three months ended June 30, 2022.

Total Net Revenues for the six months ended June 30, 2023 decreased $22.0 million as compared to the same period in 2022. The decrease was largely attributable to a $12.2 million decrease in Total Net Revenues from Change in Fair Value of Financial Instruments, Net, due primarily to higher delinquencies and charge-offs of Loans Held for Sale, as the outstanding balance has continued to increase. Additionally, higher interest rates have led to negative fair value adjustments on the loans held in consolidated warehouse trusts. These negative fair value adjustments were partially offset by an increase in fair value gains of $3.3 million on the Credit Card Derivative for the six months ended June 30, 2023 as compared to the same period in the prior year. There was also a $8.4 million decrease in (Loss) Gain on Sale of Borrower Loans, due primarily to incentives provided to whole loan investors driven by market volatility and incentives offered by competitors. Finally, there was a $4.5 million decrease in Transaction Fees, Net, due to the decrease in originations during this time, as discussed above. These decreases were partially offset by a $1.7 million increase in Servicing Fees, Net and $2.0 million increase in Total Interest Income (Expense), Net, due primarily to the increase in whole loans outstanding discussed above.

Total Expenses for the six months ended June 30, 2023 increased $119.1 million as compared to the same period in 2022, primarily due to the Change in Fair Value of Convertible Preferred Stock Warrants, which is in turn driven by changes in the fair value of the underlying Convertible Preferred Stock. Specifically, the loss for the six months ended June 30, 2023 totals $27.7 million, which compares to a gain of $77.5 million for the corresponding period in 2022, a change of $105.2 million. Total Expenses also increased due to the one-time $8.6 million Gain on Forgiveness of PPP Loan in 2022, as the U.S. Small Business Administration (“SBA”) formally forgave our Paycheck Protection Program (“PPP”) loan in March 2022 (Note 10). We also incurred $5.8 million in Interest Expense for the six months ended June 30, 2023 on the Term Loan we closed in November 2022 (Note 10). Origination and Servicing, Sales and Marketing and General and Administrative expenses remained flat year-over-year. Accordingly, the net loss for the six months ended June 30, 2023 increased $141.2 million when compared to the net income for the six months ended June 30, 2022.

Revenues

The following tables summarize our revenues for the three and six months ended June 30, 2023 and 2022 (in thousands, except percentages):


	Three Months Ended June 30,
	2023		2022		$ Change		% Change
Operating Revenues:
Transaction Fees, Net	$	31,729	$	42,986	$	(11,257)	(26)	%
Servicing Fees, Net	4,017		3,153		864		27	%
(Loss) Gain on Sale of Borrower Loans	(1,976)		3,352		(5,328)		n/m
Other Revenues	1,629		2,014		(385)		(19)	%
Total Operating Revenues	35,399		51,505		(16,106)		(31)	%

Interest Income (Expenses):
Interest Income on Borrower Loans and Loans Held for Sale	30,366		20,579		9,787		48	%
Interest Expense on Financial Instruments	(23,404)		(14,101)		(9,303)		66	%
Total Interest Income (Expense), Net	6,962		6,478		484		7	%
Change in Fair Value of Financial Instruments	(10,830)		(2,722)		(8,108)		298	%

Total Net Revenues	$	31,531	$	55,261	$	(23,730)	(43)	%


	Six Months Ended June 30,
	2023		2022		$ Change		% Change
Operating Revenues:
Transaction Fees, Net	$	65,014	$	69,471	$	(4,457)	(6)	%
Servicing Fees, Net	9,070		7,361		1,709		23	%
(Loss) Gain on Sale of Borrower Loans	(3,366)		5,031		(8,397)		n/m
Other Revenues	2,923		3,525		(602)		(17)	%
Total Operating Revenues	73,641		85,388		(11,747)		(14)	%

Interest Income (Expenses):
Interest Income on Borrower Loans and Loans Held for Sale	59,385		38,662		20,723		54	%
Interest Expense on Financial Instruments	(44,563)		(25,870)		(18,693)		72	%
Total Interest Income (Expense), Net	14,822		12,792		2,030		16	%
Change in Fair Value of Financial Instruments	(16,560)		(4,326)		(12,234)		283	%

Total Net Revenues	$	71,903	$	93,854	$	(21,951)	(23)	%

n/m: not meaningful

Transaction Fees, Net

We earn a transaction fee upon the successful origination of all Borrower Loans facilitated through our marketplace. Prosper receives payments from WebBank as compensation for the activities we perform on behalf of WebBank. Our fee is determined by the term and credit grade of the Borrower Loans that we facilitate on our marketplace and WebBank originates. We record the transaction fee revenue net of any fees paid by us to WebBank.

We also earn various program fees from our Credit Card product, such as interchange fees, annual fees and late fees, and broker fees from our Home Equity products. These program and broker fees are recorded within Transaction Fees, Net.

Transaction fees decreased $11.3 million, or 26%, for the three months ended June 30, 2023, as compared to the corresponding period in 2022. This decrease is generally consistent with the lower Personal Loan origination volume discussed above, partially offset by growth in our Credit Card product. We recognized approximately $4.2 million in program fees under our Credit Card product for the three months ended June 30, 2023, as compared to $1.1 million for the corresponding period in 2022, an increase of $3.1 million.

Transaction fees decreased $4.5 million, or 6%, for the six months ended June 30, 2023, as compared to the corresponding period in 2022. This decrease is generally consistent with the lower Personal Loan origination volume discussed above, partially offset by growth in our Credit Card product. We recognized approximately $7.6 million in program fees under our Credit Card product for the six months ended June 30, 2023, as compared to $1.5 million for the corresponding period in 2022, an increase of $6.1 million.

Servicing Fees, Net

Investors who purchase Borrower Loans through the Whole Loan Channel typically pay us a servicing fee which is generally set at 1.0% per annum of the outstanding principal balance of the Borrower Loan prior to applying the current payment, plus an additional 0.075% per annum to cover the Loan Trailing Fee. The Servicing Fee compensates us for the costs incurred in servicing the Borrower Loan, including managing payments from borrowers, payments to investors and maintaining investors’ account portfolios. We record Servicing Fees from investors as a component of operating revenues when received. We also include any collection fees received, net of collection agency expenses, in Servicing Fees.

In addition, we are contractually obligated to service the entire portfolio under our Credit Card product. Our banking partner, Coastal Community Bank (“Coastal”), pays us a servicing fee of 1% per annum of the daily outstanding principal balance of all cards designated as Coastal allocations (approximately 10% of the portfolio). To the extent that these contractual fees are less than the market servicing rate that would be required by a market participant to service the entire portfolio, a servicing obligation is recorded. Changes to this servicing obligation are included in Servicing Fees, Net.

The increase of $0.9 million, or 27%, in Servicing Fees for the three months ended June 30, 2023, as compared to the corresponding period in 2022, is primarily due to an increase of $1.6 million in whole loan servicing revenues during this period, due to the increase in the balance of whole loans outstanding. This increase was partially offset by a $0.8 million combined decrease in collection and debt sale fees, generally due to an increase in charge-offs and additional spend on collection agencies as compared to the second quarter of 2022.

The increase of $1.7 million, or 23%, in Servicing Fees for the six months ended June 30, 2023, as compared to the corresponding period in 2022, is primarily due to an increase of $3.6 million in whole loan servicing revenues during this period, due to the increase in the balance of whole loans outstanding. This increase was partially offset by a $1.4 million combined decrease in collection and debt sale fees, generally due to an increase in charge-offs and additional spend on collection agencies as compared to the first half of 2022. Additionally, there was a $0.8 million increase in the net Credit Card servicing obligation for the six months ended June 30, 2023, as compared to the same period in 2022, due to the growth in the portfolio.

(Loss) Gain on Sale of Borrower Loans

(Loss) Gain on Sale of Borrower Loans consists of net (losses) gains on Borrower Loans sold through the Whole Loan Channel, net of any incentives provided at the time of sale. Starting in the second half of 2022, due to market volatility and incentives offered by competitors, we provided additional incentives to our whole loan investors. For the three and six months ended June 30, 2023, these incentives increased approximately $4.0 million and $7.2 million, respectively, from the corresponding periods in the prior year. Excluding the impact of these incentives, the remaining decreases in (Loss) Gain on Sale of Borrower Loans of $1.3 million and $1.2 million for the three and six months ended June 30, 2023, respectively, as compared to the same periods in 2022, were primarily due to decreases in the volume of whole loans sold due to lower originations, as discussed above.

Other Revenues

Other Revenues consists primarily of credit referral and incentive fees. Credit referral fees are earned from partner companies for the referral of customers on our platform, while incentive fees are earned from partner companies through our incentive programs. The $0.4 million decrease in Other Revenues for the three months ended June 30, 2023, as compared to the corresponding period in 2022, is due primarily to a $0.3 million decrease in incentive fees that were related to a specific program that terminated in June 2022. This same program accounted for the majority of the $0.6 million decrease in Other Revenues for the six months ended June 30, 2023, as compared to the corresponding period in 2022.

Interest Income on Borrower Loans and Loans Held for Sale and Interest Expense on Financial Instruments

We recognize Interest Income on Borrower Loans and Loans Held for Sale using the accrual method based on the stated interest rate to the extent we believe it to be collectible. We record interest expense on the corresponding Notes and Warehouse Lines based on the contractual interest rates. The interest rate on Notes is generally 1% lower than the interest rate on the corresponding Borrower Loans to compensate us for servicing the underlying Borrower Loans. Additionally, Interest Expense associated with Term Loan proceeds used to purchase Loans Held for Sale through our Warehouse Lines is allocated to Net Interest Income. For the three and six months ended June 30, 2023, we allocated $0.2 million in Interest Expense on the Term Loan to Net Interest Income.

The increase of $0.5 million, or 7%, in Total Interest Income (Expense), Net for the three months ended June 30, 2023, as compared to the corresponding period in 2022, is primarily due to a $0.7 million increase in net interest income from Loans Held for Sale and related cash collections, as we increased the usage of our Warehouse Lines and the outstanding principal balance on those loans increased. The impact on net interest income from this increased usage was partially offset by a rise in market interest rates, which increased the cost of borrowing on the variable interest Warehouse Lines.

The increase of $2.0 million, or 16%, in Total Interest Income (Expense), Net for the six months ended June 30, 2023, as compared to the corresponding period in 2022, is primarily due to a $2.1 million increase in net interest income from Loans Held for Sale and related cash collections, as we increased the usage of our Warehouse Lines and the outstanding principal balance on those loans increased. The impact on net interest income from this increased usage was partially offset by a rise in market interest rates, which increased the cost of borrowing on the variable interest Warehouse Lines. Additionally, there was a $0.2 million increase related to net interest income on Borrower Loans funded through the Note Channel.

Change in Fair Value of Financial Instruments

We record Borrower Loans, Loans Held for Sale, Notes and the Credit Card Derivative (see Note 5 of the accompanying condensed consolidated financial statements) at fair value. Changes in the fair value of Borrower Loans funded through the Note Channel are largely offset by the changes in fair value of the Notes due to their borrower payment-dependent structure. Our obligation to pay principal and interest on Notes is equal to the loan payments, if any, that are received on the corresponding Borrower Loan, net of the servicing fee, which is generally 1.0% of the outstanding balance.

We use Warehouse Lines to finance the purchase of Loans Held for Sale for the purpose of earning Net Interest Income and contributing to securitization transactions. Loans Held for Sale consist primarily of loans held in warehouse trusts. Changes in the fair value of Loans Held for Sale are not offset by changes in fair value of Warehouse Lines because Warehouse Lines are carried at amortized cost. See Note 10 of the accompanying condensed consolidated financial statements for more details on Warehouse Lines.

We earn interest income on loans held in consolidated warehouse trusts during the period we own or consolidate the loans, which partially offsets changes in the fair value of those loans. The following table illustrates the composition of the loans held in consolidated warehouse trusts by Prosper Rating, which is an indicator of their credit quality:


	Six Months Ended June 30,
	2023		2022
Loans Held for Sale(1):
AA	27	%	20	%
A	27	%	28	%
B	22	%	25	%
C	13	%	18	%
D	6	%	7	%
E	5	%	2	%
HR	—	%	—	%
Total	100	%	100	%










(1) The percentages are calculated using the weighted average of month-end principal balances of Loans Held for Sale by Prosper Rating.

Fair values of Borrower Loans, Loans Held for Sale and Notes are estimated using discounted cash flow methodologies based upon a set of valuation assumptions. The key assumptions used include default and prepayment rates derived primarily from historical performance, and discount rates based on estimates of the rates of return that investors would require when investing in other financial instruments with similar characteristics. For the three months ended June 30, 2023 and 2022, the Change in Fair Value of Financial Instruments was a loss of $10.8 million and a loss of $2.7 million, respectively. For the six months ended June 30, 2023 and 2022, the Change in Fair Value of Financial Instruments was a loss of $16.6 million and a loss of $4.3 million, respectively.

The increase in the loss for the three and six months ended June 30, 2023, as compared to the corresponding periods in the prior year is largely driven by Loans Held for Sale, due to higher delinquencies and charge-offs as the outstanding balance of Loans Held for Sale continues to increase, as well as higher interest rates. Specifically, the unpaid principal and interest balance of Loans Held for Sale increased from $314.2 million as of June 30, 2022 to $535.9 million as of June 30, 2023, a 71% increase. The loss from changes in fair value for the three months ended June 30, 2023 is $14.1 million, due to a $6.3 million loss on fair value and $7.8 million in net charge-offs. This compares to the corresponding period in 2022, when there was a loss from changes in fair value of $6.5 million, due to a $4.0 million loss on fair value and $2.5 million in net charge-offs. For the six months ended June 30, 2023, the loss from changes in fair value is $23.6 million, due to a $10.1 million loss on fair value and $13.5 million in net charge-offs. This compares to the corresponding period in 2022, when there was a loss from changes in fair value of $9.4 million, due to a $4.7 million loss on fair value and $4.8 million in net charge-offs.

For Borrower Loans, the loss from changes in fair value was $10.3 million for the three months ended June 30, 2023, which compared to a loss of $7.5 million for the corresponding period in the prior year, driven by increased delinquencies, charge-offs and interest rates. The loss for the three months ended June 30, 2023 is attributable primarily to a $2.2 million loss on fair value and $8.0 million in net charge-offs, while the loss for the same period in 2022 was primarily attributable to a loss on fair value of $4.1 million and $3.7 million in net charge-offs. The loss for the six months ended June 30, 2023 of $18.1 million is attributable primarily to a $2.8 million loss on fair value and $15.0 million in net charge-offs, while the loss for the same period in 2022 was primarily attributable to a loss on fair value of $5.9 million and $5.8 million in net charge-offs. These losses are largely offset by the corresponding gains from Notes, as discussed above.

The Credit Card Derivative is recorded at fair value and is primarily reflective of discounted future cash flows from certain features of our Credit Card program that were determined to meet the definition of freestanding derivatives, including interest income, program fees paid to our banking partner Coastal, credit losses and fraud losses. These cash flows are estimated based upon a set of valuation assumptions, including default and prepayment rates derived primarily from comparable companies and our own historical performance, and discount rates based on estimates of the rates of return that investors would require when investing in other financial instruments with similar characteristics. See Note 5 of the accompanying condensed consolidated financial statements for further details.

Fair value changes related to future cash flows underlying the Credit Card Derivative resulted in a gain of $2.7 million, and the net impact of realized transactions resulted in a gain of $0.5 million for the three months ended June 30, 2023. This compares to the corresponding period in the prior year, when fair value changes related to future cash flows underlying the Credit Card Derivative resulted in a gain of $3.0 million, and the net impact of realized transactions resulted in a gain of $0.4 million. For the six months ended June 30, 2023, fair value changes related to projected future cash flows resulted in a gain of $8.8 million, while the net impact of realized transactions was a loss of $1.0 million. This compares to the corresponding period in the prior year, when fair value changes related to projected future cash flows were $3.9 million, while the net impact of realized transactions was a gain of $0.6 million. These fluctuations in gains and losses on the Credit Card Derivative for the three and six month periods ended June 30, 2023, as compared to the same periods in the prior year, are largely reflective of the significant growth in the Credit Card portfolio with no charge-offs through June 30, 2022, given that the Credit Card program was only launched in December 2021.

We also hold a swaption to limit our exposure to fluctuations in SOFR due to our PWIT Warehouse Line, which consists of two classes of loans that bear interest at SOFR plus a defined spread (see Note 10 for further information). Changes in the fair value of the swaption were immaterial for the three months ended June 30, 2023 and 2022. For the six months ended June 30, 2023, the fair value of the swaption decreased $0.5 million. For the six months ended June 30, 2022, the fair value of the swaption increased $0.4 million.

The following table details the changes in fair value of our financial instruments for the three and six months ended June 30, 2023 and 2022, respectively (in thousands, except percentages):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Assets:
Borrower Loans	$	(10,250)	$	(7,477)	$	(18,059)	$	(11,891)
Loans Held for Sale	(14,126)		(6,506)		(23,591)		(9,431)
Credit Card Derivative (includes gains and losses from settled transactions)	3,115		3,335		7,741		4,438
SOFR rate swaption (included in Prepaid and Other Assets)	(35)		10		(546)		401

Liabilities:
Notes	10,466		7,916		17,895		12,157

Total	$	(10,830)	$	(2,722)	$	(16,560)	$	(4,326)

Expenses

The following tables summarize our expenses for the three and six months ended June 30, 2023 and 2022 (in thousands, except percentages):


	Three Months Ended June 30,
	2023		2022		Change		% Change
Expenses
Origination and Servicing	$	12,332	$	13,873	$	(1,541)	(11)	%
Sales and Marketing	13,624		22,401		(8,777)		(39)	%
General and Administrative - Research and Development	6,076		5,492		584		11	%
General and Administrative - Other	17,777		15,195		2,582		17	%
Change in Fair Value of Convertible Preferred Stock Warrants	31,989		(44,075)		76,064		n/m

Interest Expense on Term Loan	2,869		—		2,869		n/m
Other Income, Net	(436)		(310)		(126)		41	%
Total Expenses	$	84,231	$	12,576	$	71,655	n/m


	Six Months Ended June 30,
	2023		2022		Change		% Change
Expenses
Origination and Servicing	$	24,617	$	25,039	$	(422)	(2)	%
Sales and Marketing	29,128		36,085		(6,957)		(19)	%
General and Administrative - Research and Development	11,502		10,661		841		8	%
General and Administrative - Other	35,780		29,319		6,461		22	%
Change in Fair Value of Convertible Preferred Stock Warrants	27,724		(77,486)		105,210		n/m
Gain on Forgiveness of PPP Loan	—		(8,604)		8,604		n/m
Interest Expense on Term Loan	5,821		—		5,821		n/m
Other Income, Net	(949)		(497)		(452)		91	%
Total Expenses	$	133,623	$	14,517	$	119,106	n/m

n/m: not meaningful

The following table reflects full-time employees as of June 30, 2023 and 2022 by functional area:


	June 30, 2023	June 30, 2022
Origination and Servicing	113	140
Sales and Marketing	29	28
General and Administrative - Research and Development	108	95
General and Administrative - Other	184	159
Total Headcount	434	422

Origination and Servicing

Origination and Servicing costs consist primarily of salaries, benefits and stock-based compensation expense related to our capital markets, collections, customer support and payment processing employees and vendor costs associated with facilitating and servicing loans and our Credit Card product. The decrease for the three months ended June 30, 2023 of $1.5 million, or 11%, as compared to the corresponding period in 2022 is primarily due to a combined $1.3 million decrease in loan servicing and origination costs, consistent with the decrease in originations discussed above. Additionally, compensation costs decreased $0.7 million, driven primarily by decreased headcount, and software and subscription costs decreased $0.3 million. These decreases are partially offset by a $0.7 million increase in third-party servicing costs associated with our Credit Card product.

The decrease for the six months ended June 30, 2023 of $0.4 million, or 2%, as compared to the corresponding period in 2022 is primarily due to a $0.9 million decrease in compensation costs driven primarily by decreased headcount, as well as a combined $0.7 million decrease in loan servicing and origination costs, consistent with the decrease in originations discussed above. Additionally, there was a $0.6 million decrease in various software and subscription costs. These decreases are partially offset by a $1.7 million increase in third-party servicing costs associated with our Credit Card product.

Sales and Marketing

Sales and Marketing costs consist primarily of affiliate marketing, search engine marketing, online and offline campaigns, email marketing, public relations and direct mail marketing, as well as compensation expenses such as wages, benefits and stock-based compensation for the employees who support these activities. For the three months ended June 30, 2023, the decrease of $8.8 million, or 39%, from the corresponding period in the prior year is due to an overall reduction in marketing and advertising costs, which is generally in line with the decrease in originations during this time. This includes decreases in marketing partnership costs of $9.2 million, digital advertising spend of $0.5 million and email and direct-to-site advertising costs, which decreased a combined $0.3 million. These decreases were partially offset by a $1.3 million increase in direct mail costs, as we launched various personal loan and Credit Card direct mail campaigns in the second quarter of 2023.

For the six months ended June 30, 2023, the decrease of $7.0 million, or 19%, from the corresponding period in the prior year is due to an overall reduction in marketing and advertising costs, which is generally in line with the decrease in originations during this time. This includes decreases in marketing partnership costs of $8.9 million, direct-to-site advertising costs of $0.3 million, and digital advertising spend and email advertising costs, which decreased a combined $0.4 million. These decreases were partially offset by a $2.2 million increase in direct mail costs, as we launched various personal loan and Credit Card direct mail campaigns in the first half of 2023. Additionally, compensation expense increased $0.4 million, due primarily to increased headcount and the hiring of our new Chief Marketing Officer in May 2023.

General and Administrative - Research and Development

General and Administrative - Research and Development costs consist primarily of salaries, benefits and stock-based compensation expense related to our engineering and product development employees, as well as related vendor costs. The increase in General and Administrative – Research and Development for the three months ended June 30, 2023 of $0.6 million, or 11%, from the corresponding period in the prior year was due primarily to a $0.9 million increase in compensation expense and a $0.2 million increase in outsourced services, primarily related to internal and external headcount additions for the development of various platform features and our Credit Card product. Additionally, costs related to various software and subscriptions increased $0.2 million during this time. These increases were partially offset by additional capitalized internal-use software and website development costs. Specifically, these capitalized costs were $3.4 million and $2.6 million for the three months ended June 30, 2023 and 2022, respectively.

The increase in General and Administrative – Research and Development for the six months ended June 30, 2023 of $0.8 million, or 8%, from the corresponding period in the prior year was due primarily to a $1.3 million increase in compensation expense and a $0.7 million increase in outsourced services, primarily related to internal and external headcount additions for the development of various platform features and our Credit Card product. Additionally, costs related to various software and subscriptions increased $0.2 million during this time. These increases were partially offset by additional capitalized internal-use software and web development costs. Specifically, these capitalized costs were $6.7 million and $5.3 million for the six months ended June 30, 2023 and 2022, respectively.

General and Administrative - Other

General and Administrative - Other expenses consist primarily of salaries, benefits and stock-based compensation expense related to our accounting and finance, risk, legal, compliance, human resources and facilities employees, professional fees related to legal and accounting and facilities expenses. The increase in General and Administrative - Other for the three months ended June 30, 2023 of $2.6 million, or 17%, from the corresponding period in the prior year was due primarily to a $1.6 million increase in compensation expense, driven primarily by increased headcount. There was also a $0.6 million increase in software licenses and subscriptions costs to support the overall growth in operations and our return to the office over the previous year. Finally, various professional services costs, including accounting, tax and legal, contributed a $0.3 million increase for the three months ended June 30, 2023, as compared to the corresponding period in the prior year.

The increase in General and Administrative - Other for the six months ended June 30, 2023 of $6.5 million, or 22%, from the corresponding period in the prior year was due primarily to a $4.3 million increase in compensation expense, driven primarily by increased headcount. There was also a $1.3 million increase in software licenses and subscriptions costs to support the overall growth in operations and our return to the office over the previous year. Finally, various professional services costs, including accounting, tax and legal, contributed a $0.6 million increase for the six months ended June 30, 2023, as compared to the corresponding period in the prior year.

Change in Fair Value of Convertible Preferred Stock Warrants

Change in Fair Value of Convertible Preferred Stock Warrants was a loss of $32.0 million and a loss of $27.7 million for the three and six months ended June 30, 2023, respectively, due to an increase in the fair value of the underlying Convertible Preferred Stock for those periods. Change in Fair Value of Convertible Preferred Stock Warrants was a gain of

$44.1 million and a gain of $77.5 million for the three and six months ended June 30, 2022 respectively, due to a decrease in the fair value of the underlying Convertible Preferred Stock for those periods.

Gain on Forgiveness of PPP Loan

As discussed in Note 10 of the accompanying condensed consolidated financial statements, on March 21, 2022, we were notified by the SBA that all principal and interest under our PPP loan, totaling $8.6 million, was forgiven through a full forgiveness payment made on March 15, 2022 by the SBA to the lender of our PPP loan. As a result, we recognized the entire forgiven principal and interest as Gain on Forgiveness of PPP Loan for the six months ended June 30, 2022.

Interest Expense on Term Loan

We incurred $2.9 million and $5.8 million in interest costs for the three and six months ended June 30, 2023 , respectively, related to the Term Loan we closed with a third-party financial institution in November 2022. Refer to Note 10 of the accompanying condensed consolidated financial statements for further information on the Term Loan, including details of the interest rates. As discussed above, we allocated $0.2 million in Term Loan interest costs to Net Interest Income for both the three and six months ended June 30, 2023, as the related Term Loan proceeds were used to purchase Loans Held for Sale through our Warehouse Lines.

Other Income, Net

Other Income, Net was $0.4 million and $0.9 million for the three and six months ended June 30, 2023, respectively, and primarily consists of sublease income, interest income on cash and cash equivalents and other miscellaneous items. The $0.1 million and $0.5 million increases in Other Income Net, for the three and six months ended June 30, 2023, respectively, as compared to the corresponding periods in the prior year are primarily attributable to increases in interest income driven by higher average cash balances (including proceeds from the Term Loan that closed in November 2022) and rising interest rates.

Non-GAAP Financial Measures

Adjusted Net Revenue

Adjusted Net Revenue is a non-GAAP financial measure that we define as our Total Net Revenue adjusted to exclude the impact of interest rates on the fair value of loans held in consolidated trusts. We believe it is useful to investors to exclude the impact of these interest rate changes to gain insight into the performance of our consolidated loans, independent of market factors that are beyond management’s control.

Adjusted Net Revenue has limitations as a financial measure, should be considered as supplemental in nature and is not meant as a substitute for Total Net Revenue, which has been prepared in accordance with U.S. GAAP. These limitations include the following:

•Adjusted Net Revenue excludes the impact of interest rates, which may influence the price that a willing buyer would be willing to pay for our personal loans in a hypothetical arm’s length transaction; and

•Other companies, including companies in our industry, may calculate Adjusted Net Revenue differently or not at all, which reduces its usefulness as a comparative measure.

Because of these limitations, you should consider Adjusted Net Revenue alongside other financial performance measures, including Total Net Revenue and our financial results presented in accordance with U.S. GAAP. The following table presents a reconciliation of Total Net Revenue to Adjusted Net Revenue for each of the periods indicated (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Total Net Revenue	$	31,531	$	55,261	$	71,903	$	93,854
Impact of interest rates on fair value of loans held in consolidated trusts(1)	6,037		3,550		7,244		5,334
Adjusted Net Revenue	$	37,568	$	58,811	$	79,147	$	99,188
(1) Component of Change in Fair Value of Financial Instruments on the consolidated statements of operations

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that we define as Net (Loss) Income adjusted for interest income on Cash and Cash Equivalents, Interest Expense on Term Loan, Income Tax Expense, depreciation and amortization, impairment of long-lived assets and Goodwill, stock-based compensation expense, Change in Fair Value of Convertible Preferred Stock Warrants, and certain infrequent or unusual transactions. Starting with the second quarter of 2023, it is also adjusted for the impact of interest rates on the fair value of loans held in consolidated trusts. Prior periods have been updated to match current period presentation. The presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP.

We consider Adjusted EBITDA to be a helpful indicator of the operational strength and performance of our business and a good measure of our historical operating trends. Management uses Adjusted EBITDA, among other things, to understand and compare operating results across accounting periods, to evaluate our operations and financial performance and for internal planning and forecasting purposes. Inclusion of Adjusted EBITDA is intended to provide investors insight into the manner in which management views the performance of the Company, enhance investors’ evaluation of our operating results, and to facilitate meaningful comparisons of our results between periods. This non-GAAP financial measure should not be considered an alternative to, or more meaningful than, the GAAP financial information provided herein.

Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

•Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;

•Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

•Adjusted EBITDA does not consider the potentially dilutive impact of equity-based charges;

•Adjusted EBITDA does not reflect interest and tax payments that may represent a reduction in cash available to us; and

•Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

The major non-GAAP adjustments, and our basis for excluding them, are outlined below:

•Changes in the fair value of convertible preferred stock warrants liability: We exclude these fair value changes primarily because they are non-cash items and the fair value varies based on the fair value of the underlying preferred stock, varying valuation methodologies and subjective assumptions. Their inclusion makes the comparison of our current financial results to previous and future periods difficult to evaluate.

•Stock-based compensation expense: This consists of expenses for equity awards under our equity incentive plans. Although stock-based compensation is an important aspect of the compensation paid to our employees, the grant date fair value varies based on the stock price at the time of grant, varying valuation methodologies, subjective assumptions and the variety of award types. This makes the comparison of our current financial results to previous and future periods difficult to evaluate; therefore, we believe it is useful to exclude stock-based compensation. We also excluded these expenses because they are non-cash.

•Amortization or impairment of acquired intangible assets and impairment of goodwill: We incur amortization or impairment of acquired Intangible Assets and Goodwill in connection with acquisitions and therefore exclude these amounts from our non-GAAP measures. We exclude these items because management does not believe they are reflective of our ongoing operating results.

•Gain on Forgiveness of PPP Loan: We recorded a gain on forgiveness when our PPP loan was forgiven by the SBA in the first quarter of 2022. We exclude the impact of this gain because of the infrequent nature of the transaction. Management does not believe that it is reflective of our ongoing operating results.

•Impact of interest rates on the fair value of loans held in consolidated trusts: See discussion on Adjusted Net Revenue, above.

•Interest Expense on Term Loan: We incur interest expense on the Term Loan we closed in November 2022, which is more fully described in Note 10 of the accompanying consolidated financial statements. Proceeds from the Term Loan are used to fund the operations of the business at our discretion, within certain limitations. This may include, but is not limited to, making investments in our Credit Card product, investing in loans held in our warehouse facilities or

meeting operational obligations. We exclude the Term Loan interest expense not associated with proceeds used to invest in loans held in our warehouse facilities from Adjusted EBITDA, as it is based on the overall financing structure of PMI. This differs from Interest Expense on Financial Instruments (part of Total Net Revenues), as the proceeds from those instruments are used exclusively for the purposes of purchasing loans on our marketplace.

The following table presents a reconciliation of Net (Loss) Income to Adjusted EBITDA for each of the periods indicated (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net (Loss) Income	$	(52,770)	$	42,665	$	(61,860)	$	79,297
Depreciation expense:
Servicing and Origination	2,340		1,962		4,466		3,980
General and Administration - Other	492		646		1,116		1,287
Amortization of Intangibles	27		34		54		68

Stock-Based Compensation	404		504		772		799
Gain on Forgiveness of PPP Loan	—		—		—		(8,604)

Change in the Fair Value of Convertible Preferred Stock Warrants	31,989		(44,075)		27,724		(77,486)
Impact of interest rates on fair value of loans held in consolidated trusts	6,037		3,550		7,244		5,334
Interest Income on Cash and Cash Equivalents	(358)		(39)		(713)		(42)
Interest Expense on Term Loan	2,869		—		5,821		—
Income Tax Expense	70		20		140		40
Adjusted EBITDA	$	(8,900)	$	5,267	$	(15,236)	$	4,673

The decrease in Adjusted EBITDA for the three and six months ended June 30, 2023, as compared to the corresponding periods in 2022, is primarily reflective of decreased originations, changes in the fair value of Loans Held for Sale (other than the impact of market interest rates) and incentives provided to whole loan investors as described above, partially offset by a significant increase in Credit Card net revenues due to growth in the underlying portfolio since the Credit Card program launched at the end of 2021.

Expenses on the condensed consolidated statements of operations include the following amounts of stock-based compensation expense for the periods presented (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Origination and Servicing	$	23	$	35	$	45	$	63
Sales and Marketing	67		173		103		201
General and Administrative	314		296		624		535
Total Stock-Based Compensation Expense	$	404	$	504	$	772	$	799

Segment Net Revenues, Adjusted Net Revenue and Adjusted EBITDA

Refer to Note 19 of the accompanying condensed consolidated financial statements for details on our segment reporting. The following table summarizes our segment net revenues, segment Adjusted Net Revenue and segment Adjusted EBITDA for the periods presented (in thousands, except percentages).


	Three Months Ended June 30,
	2023		2022		Change		% Change
Segment Net Revenues
Personal Loan	$	25,737	$	50,962	$	(25,225)	(49)	%
Home Equity	364		1,010		(646)		(64)	%
Credit Card	5,430		3,289		2,141		65	%
Subtotal - Reportable Segments	$	31,531	$	55,261	$	(23,730)	(43)	%

Segment Adjusted Net Revenue
Personal Loan	$	31,774	$	54,512	$	(22,738)	(42)	%
Home Equity	364		1,010		(646)		(64)	%
Credit Card	5,430		3,289		2,141		65	%
Subtotal - Reportable Segments	$	37,568	$	58,811	$	(21,243)	(36)	%

Segment Adjusted EBITDA
Personal Loan	$	(5,551)	$	9,451	$	(15,002)	n/m
Home Equity	(889)		(324)		(565)		174	%
Credit Card	(2,460)		(3,860)		1,400		(36)	%
Subtotal - Reportable Segments	$	(8,900)	$	5,267	$	(14,167)	n/m


	Six Months Ended June 30,
	2023		2022		Change		% Change
Segment Net Revenues
Personal Loan	$	59,231	$	88,075	$	(28,844)	(33)	%
Home Equity	657		1,349		(692)		(51)	%
Credit Card	12,015		4,430		7,585		171	%
Subtotal - Reportable Segments	$	71,903	$	93,854	$	(21,951)	(23)	%

Segment Adjusted Net Revenue
Personal Loan	$	66,475	$	93,409	$	(26,934)	(29)	%
Home Equity	657		1,349		(692)		(51)	%
Credit Card	12,015		4,430		7,585		171	%
Subtotal - Reportable Segments	$	79,147	$	99,188	$	(20,041)	(20)	%

Segment Adjusted EBITDA
Personal Loan	$	(10,831)	$	13,197	$	(24,028)	n/m
Home Equity	(1,763)		(1,132)		(631)		56	%
Credit Card	(2,642)		(7,392)		4,750		(64)	%
Subtotal - Reportable Segments	$	(15,236)	$	4,673	$	(19,909)	n/m

n/m: not meaningful

Segment Adjusted EBITDA is our primary segment profitability metric, and is calculated as segment revenue less operating expenses that are directly attributable to the segments’ products. Refer to Note 19 of the accompanying consolidated financial statements for a reconciliation of Segment Adjusted EBITDA to Net (Loss) Income Before Income Taxes. Segment Adjusted Net Revenue is calculated as segment revenue less the impact of changes in interest rates on the fair value of loans held in consolidated trusts. For the periods presented above, this adjustment only impacts the Personal Loan segment.

Personal Loan

For the three months ended June 30, 2023, Personal Loan segment net revenues decreased $25.2 million, or 49%, as compared to the corresponding period in 2022, primarily as a result of (a) a $13.7 million decrease in Transaction Fees, Net, due to the decrease in personal loan originations during this time, (b) a $7.9 million decrease in net revenues from Change in Fair Value of Financial Instruments, as described above and (c) a $5.3 million decrease in (Loss) Gain on Sale of Borrower Loans, due primarily to additional incentives provided to whole loan investors driven by market volatility and incentives offered by competitors. These decreases were partially offset by a $1.5 million increase in Servicing Fees, Net, due to the increase in whole loans outstanding during this period, as discussed above. Finally, there was also a $0.7 million increase in Total Interest Income (Expense), Net, due primarily to the increased usage of our Warehouse Lines and the resulting increase in net interest income from Loans Held for Sale.

For the six months ended June 30, 2023, Personal Loan segment net revenues decreased $28.8 million, or 33%, as compared to the corresponding period in 2022, primarily as a result of (a) a $15.5 million decrease in net revenues from Change in Fair Value of Financial Instruments, as described above, (b) a $9.9 million decrease in Transaction Fees, Net, due to the decrease in personal loan originations during this time, (c) a $8.4 million decrease in (Loss) Gain on Sale of Borrower Loans, due primarily to additional incentives provided to whole loan investors driven by market volatility and incentives offered by competitors and (d) a $0.6 million decrease in Other Revenues, due to the termination of a partner incentive agreement in June 2022. These decreases were partially offset by a $3.5 million increase in Servicing Fees, Net, due to the increase in whole loans outstanding during this period, as discussed above. Finally, there was also a $2.3 million increase in Total Interest Income (Expense), Net, due primarily to the increased usage of our Warehouse Lines and the resulting increase in net interest income from Loans Held for Sale.

Segment Adjusted Net Revenue associated with the Personal Loan segment decreased $22.7 million and $26.9 million for the three and six months ended June 30, 2023, respectively, as compared to the corresponding periods in 2022. This is reflective of the same factors that drove the decrease in net revenues discussed above, partially offset by the increase from the impact of interest rates on the fair value of loans held in consolidated trusts, due primarily to the rise in market interest rates from the prior year.

Adjusted EBITDA associated with the Personal Loan segment decreased $15.0 million and $24.0 million for the three and six months ended June 30, 2023, respectively, as compared to the corresponding periods in 2022, which is primarily reflective of the decrease in net revenues discussed above, which was not fully offset by the corresponding decrease in operating expenses.

Home Equity

For the three and six months ended June 30, 2023, the decreases in Home Equity segment net revenues and segment Adjusted Net Revenue of $0.6 million and $0.7 million, respectively, are reflective of lower Transaction Fees, Net, due to the decreases in originations during this time. Home Equity segment net revenues consist of broker fees from our partner Spring EQ, and Adjusted EBITDA is reflective of these net revenues, offset by our continued investments in the product, particularly with regards to research and development, operations and marketing.

Credit Card

For the three months ended June 30, 2023, Credit Card segment net revenues increased $2.1 million, or 65%, as compared to the corresponding period in 2022, primarily as a result of a $3.1 million increase in Transaction Fees, Net, generally due to the overall growth in the Credit Card portfolio during this time. This increase was partially offset by a $0.6 million decrease in Servicing Fees, Net, as a result of an increase in the net servicing obligation related to the Credit Card portfolio.

For the six months ended June 30, 2023, Credit Card segment net revenues and segment Adjusted Net Revenue increased $7.6 million, or 171%, as compared to the corresponding period in 2022, primarily as a result of a $6.1 million increase in Transaction Fees, Net, and a $3.3 million increase in fair value gains on our Credit Card Derivative, generally due to the overall growth in the Credit Card portfolio during this time. These increases were partially offset by a $1.8 million decrease in Servicing Fees, Net, as a result of an increase in the net servicing obligation related to the Credit Card portfolio.

Adjusted EBITDA associated with the Credit Card segment increased $1.4 million and $4.8 million, respectively, for the three and six months ended June 30, 2023, respectively, as compared to the corresponding period in 2022, which is primarily reflective of the increase in net revenues discussed above, partially offset by our continued investments in the Credit Card product’s success.

LIQUIDITY AND CAPITAL RESOURCES

We believe our liquidity needs for the next twelve months, and for the foreseeable future beyond that period, can be met through transaction fees, servicing fees, net interest income, other revenue, proceeds from sales or securitizations of loans, draws on warehouse lines, realized gains on the Credit Card Derivative, proceeds from our Term Loan and Cash and Cash Equivalents. For further details related to our Term Loan and warehouse lines, see Note 10 of the accompanying consolidated financial statements. Management monitors our financial results and operations. If the financial results anticipated are not achieved or we fail to maintain compliance with the debt covenants under our Term Loan, our sources of liquidity may not be sufficient to meet our operating and liquidity requirements without obtaining additional liquidity which may not be available on favorable terms or at all.

The following table summarizes our cash flow activities for the three months ended June 30, 2023 and 2022 (in thousands):


	Three Months Ended June 30,
	2023		2022
Net (Loss) Income	$	(52,770)	$	42,665

Net Cash Provided by (Used in) Operating Activities	10,761		(12,331)
Net Cash Used in Investing Activities	(17,151)		(30,581)
Net Cash Provided by Financing Activities	1,438		54,731
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash	(4,952)		11,819
Cash, Cash Equivalents and Restricted Cash at the beginning of the period	160,167		219,648
Cash, Cash Equivalents and Restricted Cash at the end of the period	$	155,215	$	231,467

Cash, Cash Equivalents and Restricted Cash decreased by $5.0 million for the three months ended June 30, 2023, based on the following components:

Operating Activities: $10.8 million in cash was provided by operating activities, driven by (a) $21.0 million in net proceeds from Loans Held for Sale, partially offset by (b) $6.2 million in cash used for working capital, primarily due to the timing of payments to investors and third-party vendors and (c) $4.0 million in net loss, net of non-cash items.

Investing Activities: $17.2 million in cash was used in investing activities due to (a) $61.9 million in purchases of Borrower Loans, and (b) $3.1 million in purchases of property and equipment, primarily consisting of internal-use software, partially offset by (c) $47.9 million from sales and principal payments of Borrower Loans.

Financing Activities: $1.4 million in cash was provided by financing activities, due primarily to (a) $13.3 million in proceeds from issuance, net of payments, on Notes, at Fair Value, partially offset by (b) $11.0 million in principal payments on Warehouse Lines, net of proceeds, and (c) $0.9 million in debt issuance costs related to the extension of our PWIT warehouse facility in May 2023 (Note 10).

Cash, Cash Equivalents and Restricted Cash increased $11.8 million for the three months ended June 30, 2022 based on the following components:

Operating Activities: $12.3 million in cash was used in operating activities, driven by (a) $35.0 million in net purchases of Loans Held for Sale, offset by (b) $18.9 million in cash from working capital, primarily due to the timing of payments to investors and third-party vendors, and (c) $3.8 million in net income, net of non-cash items.

Investing Activities: $30.6 million in cash was used in investing activities due to (a) $76.9 million in purchases of Borrower Loans, and (b) $2.9 million in purchases of property and equipment, primarily consisting of internal-use software, offset by (c) $49.2 million from sales and principal payments of Borrower Loans.

Financing Activities: $54.7 million in cash was provided by financing activities, due primarily to (a) $27.6 million in proceeds from issuance, net of payments, on Notes, at Fair Value and (b) $27.1 million in proceeds from Warehouse Lines.

The following table summarizes our cash flow activities for the six months ended June 30, 2023 and 2022 (in thousands):


	Six Months Ended June 30,
	2023		2022
Net (Loss) Income	(61,860)		79,297

Net Cash Used in Operating Activities	(57,634)		(62,971)
Net Cash Used in Investing Activities	(38,982)		(52,702)
Net Cash Provided by Financing Activities	55,222		111,515
Net Decrease in Cash, Cash Equivalents and Restricted Cash	(41,394)		(4,158)
Cash, Cash Equivalents and Restricted Cash at the beginning of the period	196,609		235,625
Cash, Cash Equivalents and Restricted Cash at the end of the period	$	155,215	$	231,467

Cash, Cash Equivalents and Restricted Cash decreased by $41.4 million for the six months ended June 30, 2023, based on the following components:

Operating Activities: $57.6 million in cash was used in operating activities, driven by (a) $41.0 million in net purchases of Loans Held for Sale, (b) $9.6 million in cash used for working capital, primarily due to the timing of payments to investors and third-party vendors and (c) $7.0 million in net loss, net of non-cash items.

Investing Activities: $39.0 million in cash was used in investing activities due to (a) $125.8 million in purchases of Borrower Loans, and (b) $7.5 million in purchases of property and equipment, primarily consisting of internal-use software, partially offset by (c) $94.3 million from sales and principal payments of Borrower Loans.

Financing Activities: $55.2 million in cash was provided by financing activities, due primarily to (a) $29.7 million in proceeds from issuance, net of payments, on Notes, at Fair Value, and (b) $27.4 million in proceeds from Warehouse Lines, net of principal payments, partially offset by (c) $1.9 million in debt issuance costs related to the extensions of our PWIIT warehouse facility in February 2023 and our PWIT warehouse facility in May 2023 (Note 10).

Cash, Cash Equivalents and Restricted Cash decreased $4.2 million for the six months ended June 30, 2022, based on the following components:

Operating Activities: $63.0 million in cash was used in operating activities, driven by (a) $78.6 million in net purchases of Loans Held for Sale, offset by (b) $10.5 million in cash from working capital, primarily due to the timing of payments to investors and third-party vendors, and (c) $5.1 million in net income, net of non-cash items. These non-cash items include the $8.6 million Gain on Forgiveness of PPP Loan, which is more fully described in Note 10 of the accompanying condensed consolidated financial statements.

Investing Activities: $52.7 million in cash was used in investing activities due to (a) $143.8 million in purchases of Borrower Loans, and (b) $6.7 million in purchases of property and equipment, primarily consisting of internal-use software, offset by (c) $97.8 million from sales and principal payments of Borrower Loans.

Financing Activities: $111.5 million in cash was provided by financing activities, due primarily to (a) $46.6 million in proceeds from issuance, net of payments, on Notes, at Fair Value and (b) $64.9 million in proceeds from Warehouse Lines.

Income Taxes

We use the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized by applying the statutory tax rates in effect in the years in which the differences between the financial reporting and tax filing bases of existing assets and liabilities are expected to reverse. We have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance against our deferred tax assets. Based on the weight of available evidence, which includes our historical operating performance and the reported cumulative net losses in prior years, we have provided a full valuation allowance against our net deferred tax assets.

We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. We are required to make subjective assumptions and judgments regarding our income tax exposures. Interpretations and guidance surrounding income tax laws and regulations change over time. As such, changes in our subjective

assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and statements of operations.

Off-Balance Sheet Arrangements

As a result of retaining servicing rights on the sale of Borrower Loans, we are an interest holder in certain special purpose entities that purchase these Borrower Loans. None of these special purpose entities are consolidated as we are not the primary beneficiary. Other than these special purpose entities, as of June 30, 2023, we did not have any relationships with unconsolidated entities or financial partnerships, such as structured finance or special purpose entities that were established for the purpose of facilitating off-balance sheet arrangements or other purposes.

CRITICAL ACCOUNTING POLICIES

Certain of Prosper's accounting policies that involve a higher degree of judgment and complexity are discussed in Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in Prosper’s Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes to these critical accounting estimates during the first six months of 2023.

PROSPER FUNDING LLC

Overview

Prosper Funding LLC was formed in the state of Delaware in February 2012 as a limited liability company with PMI as its sole equity member. Prosper Funding was formed by PMI to hold Borrower Loans originated through the Note Channel and issue related Notes. Although Prosper Funding is consolidated with PMI for accounting and tax purposes, Prosper Funding has been organized and is operated in a manner that is intended to minimize the likelihood that it would be substantively consolidated with PMI in a bankruptcy proceeding. Prosper Funding’s intention is to minimize the likelihood that its assets would be subject to claims by PMI’s creditors if PMI were to file for bankruptcy, as well as to minimize the likelihood that Prosper Funding will become subject to bankruptcy proceedings directly. Prosper Funding seeks to achieve this by placing certain restrictions on its activities and by implementing certain formal procedures designed to expressly reinforce its status as a distinct corporate entity from PMI.

As a credit marketplace, we believe our customers are more highly susceptible to uncertainties and negative trends, real or perceived, in the markets driven by, among other factors, general economic conditions in the United States and abroad. These external economic conditions and resulting trends or uncertainties could adversely impact our customers’ ability or desire to participate in our marketplace as borrowers or investors, and consequently could negatively affect our business and results of operations.

Results of Operations

Overview

The following tables summarize Prosper Funding’s net (loss) income for the three and six months ended June 30, 2023 and 2022 (in thousands):


	Three Months Ended June 30,
	2023		2022		$ Change		% Change
Total Net Revenues	$	16,284	$	23,941	$	(7,657)	(32)	%
Total Expenses	16,591		21,404		(4,813)		(22)	%
Net (Loss) Income	$	(307)	$	2,537	$	(2,844)	n/m


	Six Months Ended June 30,
	2023		2022		$ Change		% Change
Total Net Revenues	33,524		41,607		$	(8,083)	(19)	%
Total Expenses	33,574		37,625		(4,051)		(11)	%
Net (Loss) Income	$	(50)	$	3,982	$	(4,032)	n/m

n/m: not meaningful

Total net revenues for the three months ended June 30, 2023 decreased $7.7 million, or 32%, from the three months ended June 30, 2022, primarily due to decreased administration fee revenue driven by a decrease in the number of loan listings on our marketplace during the period, partially offset by an increase in incentives provided to whole loan investors (for which PFL bills PMI). Because of the growth in our servicing book, there was a resulting increase in Servicing Fees, Net. There was also a decrease in (Loss) Gain on Sale of Borrower Loans, due to the increase in incentives provided to whole loan investors. Because these incentives are reimbursed through the administration fee revenue, there is no net impact on total net revenues. Finally, due to higher interest rates, total net revenues from Change in Fair Value of Financial Instruments, Net decreased as compared to the prior year by approximately $0.2 million. Total expenses for the three months ended June 30, 2023 decreased $4.8 million, or 22%, from the three months ended June 30, 2022, largely due to a decrease in administrative fee expense during the period resulting from a decrease in loans funded for the period.

Total net revenues for the six months ended June 30, 2023 decreased $8.1 million, or 19%, from the six months ended June 30, 2022, primarily due to decreased administration fee revenue driven by a decrease in the number of loan listings on our marketplace during the period, partially offset by an increase in incentives provided to whole loan investors (for which PFL bills PMI). Because of the growth in our servicing book, there was a resulting increase in Servicing Fees, Net. There was also a decrease in (Loss) Gain on Sale of Borrower Loans, due to the increase in incentives provided to whole loan investors. Because

these incentives are reimbursed through the administration fee revenue, there is no net impact on total net revenues. Other Revenues decreased by $0.5 million primarily due to a partner incentive program that terminated in June 2022. Finally, due to higher interest rates, total net revenues from Change in Fair Value of Financial Instruments, Net decreased as compared to the prior year by approximately $0.4 million. Total expenses for the six months ended June 30, 2023 decreased $4.1 million, or 11%, from the six months ended June 30, 2022, largely due to a decrease in administrative fee expense during the period resulting from a decrease in loans funded for the period.

Revenues

The following tables summarize Prosper Funding’s revenue for the three and six months ended June 30, 2023 and 2022 (in thousands, except percentages):


	Three Months Ended June 30,
	2023		2022		$ Change		% Change
Revenues:
Operating Revenues:
Administration Fee Revenue - Related Party	$	10,309	$	14,031	$	(3,722)	(27)	%
Servicing Fees, Net	6,490		4,562		1,928		42	%
(Loss) Gain on Sale of Borrower Loans	(1,696)		3,797		(5,493)		n/m
Other Revenues	85		361		(276)		(76)	%
Total Operating Revenues	15,188		22,751		(7,563)		(33)	%
Interest Income on Borrower Loans	12,952		11,670		1,282		11	%
Interest Expense on Notes	(12,072)		(10,919)		(1,153)		11	%
Net Interest Income	880		751		129		17	%
Change in Fair Value of Financial Instruments, Net	216		439		(223)		(51)	%
Total Net Revenue	$	16,284	$	23,941	$	(7,657)	(32)	%


	Six Months Ended June 30,
	2023		2022		$ Change		% Change
Revenues:
Operating Revenues:
Administration Fee Revenue - Related Party	$	20,552	$	24,151	$	(3,599)	(15)	%
Servicing Fees, Net	13,577		9,113		4,464		49	%
(Loss) Gain on Sale of Borrower Loans	(2,336)		5,957		(8,293)		n/m
Other Revenues	153		670		(517)		(77)	%
Total Operating Revenues	31,946		39,891		(7,945)		(20)	%
Interest Income on Borrower Loans	25,301		21,636		3,665		17	%
Interest Expense on Notes	(23,559)		(20,187)		(3,372)		17	%
Net Interest Income	1,742		1,449		293		20	%
Change in Fair Value of Financial Instruments, Net	(164)		267		(431)		n/m
Total Net Revenue	$	33,524	$	41,607	$	(8,083)	(19)	%

n/m: not meaningful

Administration Fee Revenue - Related Party

We primarily generate revenues through license fees we earn under our Administration Agreement with PMI. The Administration Agreement contains a license we grant to PMI that entitles PMI to use the marketplace for, and in relation to: (i) PMI’s performance of its duties and obligations under the Administration Agreement, and (ii) PMI’s performance of its duties and obligations to WebBank under the Loan Account Program Agreement. The Administration Agreement requires PMI to pay us a monthly license fee that is partially based on the number of loan listings posted on the marketplace in that month, as well as a fee based on incentives provided to investors to incentivize the purchase of Borrower Loans from PFL. The decreases in Administrative Fee Revenue of $3.7 million and $3.6 million for the three and six months ended June 30, 2023, respectively, as compared to the corresponding periods in 2022, are primarily due to a decrease in loan listings generated on the marketplace, which resulted in a decrease in Administrative Fee Revenue of $7.7 million and $10.9 million for the three and six months ended June 30, 2023, respectively. These decreases were partially offset by $4.0 million and $7.2 million increases in Administrative Fee Revenue for the three and six months ended June 30, 2023, respectively, related to reimbursements received from PMI for incentives provided to whole loan investors, as discussed above.

Servicing Fees, Net

Investors who purchase Borrower Loans through the Whole Loan Channel typically pay us a servicing fee which is currently set at 1.0% per annum of the outstanding principal balance of the Borrower Loan prior to applying the current payment, plus an additional 0.075% per annum to cover the Loan Trailing Fee. The Servicing Fee compensates us for the costs incurred in servicing the Borrower Loan, including managing payments from borrowers, managing payments to investors and maintaining investors’ account portfolios. We record Servicing Fees from investors as a component of operating revenues when received. We also include any collection fees received, net of collection agency expenses, in Servicing Fees, Net.

The increases in Servicing Fees, Net of $1.9 million and $4.5 million for the three and six months ended June 30, 2023, respectively, as compared to the corresponding periods in 2022, are largely due to the growth in the servicing book during these periods, which resulted in approximately $2.2 million and $4.8 million in additional Servicing Fees for the three and six months ended June 30, 2023, respectively. This is generally in line with the increase in originations in the periods preceding the second quarter of 2023. These increases for both periods are partially offset by increases in collection agency costs, net of collections and debt sale fees, as we increased our spend on these agencies in response to higher delinquencies.

(Loss) Gain on Sale of Borrower Loans

(Loss) Gain on Sale of Borrower Loans consists of net losses and gains on Borrower Loans sold through the Whole Loan Channel, net of any incentives provided to investors at the time of sale. For the three and six months ended June 30, 2023, the decreases in (Loss) Gain on Sale of Borrower Loans from the corresponding periods in the prior year of $5.5 million and $8.3 million, respectively, were primarily due to additional incentives provided to whole loan investors, due to market volatility and incentives offered by competitors. These incentives resulted in $4.0 million and $7.2 million decreases for the three and six months ended June 30, 2023, respectively, as compared to the corresponding periods in 2022. Additionally, gains recognized on whole loan originations decreased $1.7 million and $1.0 million for the three and six months ended June 30, 2023, respectively, due to decreases in loans originated in these periods.

Other Revenues

Other Revenues has historically consisted primarily of incentive fees, which are earned from partner companies through our incentive programs. The $0.3 million and $0.5 million decreases in Other Revenues for the three and six months ended June 30, 2023, respectively, as compared to the corresponding periods in 2022, are primarily due to a decrease in these incentive fees, as we terminated an incentive program in June 2022.

Interest Income on Borrower Loans and Interest Expense on Notes

We recognize Interest Income on Borrower Loans using the accrual method based on the stated interest rate to the extent we believe it to be collectible. We record Interest Expense on the corresponding Notes based on the contractual interest rates. The interest rate on Notes is generally 1% lower than the interest rate on the corresponding Borrower Loans to compensate us for servicing the underlying Borrower Loans.

Overall, the $0.1 million and $0.3 million increases in Net Interest Income for the three and six months ended June 30, 2023, as compared to the corresponding periods in 2022, are due to an increase in the outstanding principal balance of Borrower Loans and Notes during these periods.

Change in Fair Value of Financial Instruments

Change in Fair Value of Financial Instruments captures gains (losses) in fair value estimates using discounted cash flow methodologies that are based upon a set of valuation assumptions. The key assumptions used in valuations include default

and prepayment rates derived from historical performance and discount rates that reflect estimates of the rates of return that investors would require when investing in other financial instruments with similar characteristics. Changes in fair value of Borrower Loans funded through the Note Channel are largely offset by the changes in fair value of the corresponding Notes due to the borrower payment-dependent structure, though differences will arise due to the actual and projected impact of cash flows related to charge-offs, debt sales and miscellaneous fees.

The following table summarizes the fair value adjustments for the three and six month periods ended June 30, 2023 and 2022 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Borrower Loans	(10,250)		(7,477)		$	(18,059)	$	(11,891)
Notes	10,466		7,916		17,895		12,157
Total	$	216	$	439	$	(164)	$	266

In general, the decrease in net revenues from Change in Fair Value of Financial Instruments for the three and six months ended June 30, 2023, as compared to the corresponding periods in 2022, are reflective of increased interest rates during these periods.

Expenses

The following table summarizes our expenses for the three and six month periods ended June 30, 2023 and 2022 (in thousands, except percentages):


	Three Months Ended June 30,
	2023		2022		Change		% Change
Expenses:
Administration Fee - Related Party	$	14,601	$	19,372	$	(4,771)	(25)	%
Servicing	1,990		1,874		116		6	%
General and Administrative	—		158		(158)		(100)	%
Total Expenses	$	16,591	$	21,404	$	(4,813)	(22)	%


	Six Months Ended June 30,
	2023		2022		Change		% Change
Expenses:
Administration Fee - Related Party	$	29,843	$	33,807	$	(3,964)	(12)	%
Servicing	3,730		3,522		208		6	%
General and Administrative	1		296		(295)		(100)	%
Total Expenses	$	33,574	$	37,625	$	(4,051)	(11)	%

Administration Fee - Related Party

Pursuant to our Administration Agreement with PMI, PMI manages the marketplace on our behalf. Accordingly, each month we are required to pay PMI (a) a corporate administration fee of $500,000 per month, (b) a fee for each Borrower Loan originated through the marketplace, (c) 62.5% of all Servicing Fees collected by us or on our behalf and (d) all nonsufficient funds fees collected by us or on our behalf. In general, the Administrative Fee Expense will not fluctuate directly in line with the Administrative Fee Revenue due to both the flat corporate administrative fee, as well as the fact that we pay fees for three different services, but receive a fee based only on the number of loans listed on the platform.

The decreases in Administration Fee - Related Party expense of $4.8 million and $4.0 million for the three and six months ended June 30, 2023, respectively, as compared to the same periods in 2022, are due primarily to a drop in the number of Borrower Loans originated through the marketplace during these periods, which contributed $6.5 million and $7.7 million decreases, respectively. These decreases were partially offset by the increases in Servicing Fees, Net, discussed above, which resulted in $1.7 million and $3.4 million increases in Administration Fee - Related Party for the three months ended June 30, 2023 and 2022, respectively.

Servicing

Servicing costs consist primarily of vendor and borrower costs, as well as depreciation of internal-use software associated with servicing Borrower Loans. The increases in Servicing costs for the three and six months ended June 30, 2023, as compared to the corresponding periods in 2022, are due primarily to increased internal-use software amortization, due to the release of various platform features over the previous year.

General and Administrative

General and Administrative costs consist primarily of bank service charges and professional fees. These costs are not significant for the three and six months ended June 30, 2023.

LIQUIDITY AND CAPITAL RESOURCES

We anticipate that our available funds and cash flow from operations will be sufficient to meet our operational cash needs for at least the next 12 months.

The following table summarizes our cash flow activities for the six months ended June 30, 2023 and 2022 (in thousands):


	Six Months Ended June 30,
	2023		2022
Net (Loss) Income	$	(50)	$	3,982

Net Cash (Used in) Provided by Operating Activities	(7,938)		11,581
Net Cash Used in Investing Activities	(35,246)		(49,342)
Net Cash Provided by Financing Activities	29,678		46,580
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	(13,506)		8,819
Cash, Cash Equivalents and Restricted Cash at the beginning of the period	97,849		167,876
Cash, Cash Equivalents and Restricted Cash at the end of the period	$	84,343	$	176,695

Cash, Cash Equivalents and Restricted Cash decreased $13.5 million for the six months ended June 30, 2023, based on the following components:

Operating Activities: $7.9 million was used in operating activities, driven by cash used in working capital of $10.9 million, primarily due to the timing of payments to PMI and investors, partially offset by net loss, net of non-cash adjustments of $2.9 million.

Investing Activities: $35.2 million was used in investing activities, due to $125.8 million in purchases of Borrower Loans and $3.8 million in purchases of property and equipment, partially offset by $94.4 million of principal payments under Borrower Loans.

Financing Activities: $29.7 million was provided by financing activities, due to $123.5 million in proceeds from the issuance of Notes, at Fair Value, partially offset by $93.9 million in payments for Notes, at Fair Value.

Cash, Cash Equivalents and Restricted Cash increased $8.8 million for the six months ended June 30, 2022, based on the following components:

Operating Activities: $11.6 million was provided by operating activities, driven by net income, net of non-cash adjustments of $4.4 million, as well as cash from working capital of $7.2 million, primarily due to the timing of payments to PMI and investors.

Investing Activities: $49.3 million was used in investing activities, due to $143.8 million in purchases of Borrower Loans and $3.3 million in purchases of property and equipment, partially offset by $97.8 million of principal payments under Borrower Loans.

Financing Activities: $46.6 million was provided by financing activities, due to $144.3 million in proceeds from the issuance of Notes, at Fair Value, partially offset by $97.7 million in payments for Notes, at Fair Value.

Income Taxes

We incurred no income tax expense for the six months ended June 30, 2023 and 2022. We are a US disregarded entity for income tax purposes and our income and loss is included in the return of our parent, PMI. Given PMI’s history of taxable losses, it is difficult to accurately forecast how Prosper’s and our results will be affected by the realization and use of net operating loss carry forwards.

Off-Balance Sheet Arrangements

As a result of retaining servicing rights on the sale of Borrower Loans, we are a variable interest holder in certain special purposes entities that purchase these Borrower Loans. None of these special interest entities are consolidated as we are not the primary beneficiary. Otherwise as of June 30, 2023, we have not engaged in any off-balance sheet financing activities.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK AND INTEREST RATE RISK

PROSPER MARKETPLACE, INC.

Market Risk

Market risk is the risk of loss to future earnings, values, or future cash flows that may result from changes in financial market prices and interest rates.

Through the Warehouse Lines we invest in Loans Held for Sale. Investments in interest-earning instruments carry a degree of interest rate risk. Changes in U.S. interest rates affect the market value of these Loans Held for Sale on our balance sheet. Our future investment income may fall short of expectations, or we may suffer a loss in principal if we are forced to sell Loans Held for Sale that have declined in market value due to changes in interest rates, loss assumptions or overall market conditions. Recent interest rate increases, due in part to ongoing inflation, may increase the risks of our investments in Loans Held for Sale, and additional fluctuations in interest rates may exacerbate such risks. Changes in the market value of Loans Held for Sale are recorded on the Consolidated Statement of Operations. The fair value of Loans Held for Sale was $517.8 million and $499.8 million as of June 30, 2023, and December 31, 2022, respectively.

The fair values of Borrower Loans, Loans Held for Sale, and Notes are determined using discounted cash flow methodologies based upon a set of valuation assumptions such as default rate, prepayment rate and discount rate. Default rate, prepayment rate and discount rate may change due to expected loan performance or changes in the expected returns of similar financial instruments available in the market. We are exposed to the risk of a decrease in the fair value of loans held in the warehouse trusts. For Borrower Loans and Notes presented on our Balance Sheet on behalf of our Note Channel investors, the fair value adjustments for Borrower Loans are largely offset by the fair value adjustments of the Notes due to the borrower payment dependent design of the Notes and due to the total principal balances of the Borrower Loans being very close to the total principal balances of the Notes.

We are also exposed to variable interest rate risk under the debt from the Warehouse Lines, which had an outstanding balance of $474.7 million and $446.8 million as of June 30, 2023, and December 31, 2022, respectively. To reduce the impact of large fluctuations in interest rates, we hedged a portion of our interest rate risk by entering into a derivative agreement with a financial institution, which is currently in the money. The derivative agreement that we use to manage the risk associated with fluctuations in interest rates may not be able to eliminate the exposure to these changes. Interest rates are sensitive to numerous factors outside of our control, such as government and central bank monetary policy in the United States. Depending on the size of the exposures and the relative movements of interest rates, if we choose not to hedge or fail to effectively hedge our exposure, we could experience a material adverse effect on our results of operations and financial condition.

We had cash and cash equivalents of $43.8 million and $83.4 million as of June 30, 2023, and December 31, 2022, respectively. These amounts were held in various unrestricted deposits with highly rated financial institutions and short-term, highly liquid marketable securities which may include money market funds, U.S. Treasury securities, and U.S. agency securities. Cash and Cash Equivalents are held for working capital purposes. Due to their short-term nature, Prosper believes that it does not have any material exposure to changes in the fair value of these liquid investments as a result of changes in interest rates. Decreases in short-term interest rates will moderately reduce interest income on these Cash and Cash Equivalents. Increases in short-term interest rates will moderately increase the interest income earned on the Cash and Cash Equivalents.

Interest Rate Sensitivity

As more fully described in Note 7, Fair Value of Assets and Liabilities, of Prosper's condensed consolidated financial statements attached to this Quarterly Report on Form 10-Q, the combined fair value of Borrower Loans and Loans Held for

Sale is $852.0 million as of June 30, 2023, determined using a weighted-average discount rate of 8.29%. The combined fair value of Borrower Loans and Loans Held for Sale was $820.4 million as of December 31, 2022, determined using a weighted-average discount rate of 6.72%. A hypothetical 100 basis point increase in interest rates would result in a decrease of approximately $8.4 million and $8.3 million in the fair value of PMI’s investment in Borrower Loans and Loans Held for Sale as of June 30, 2023, and December 31, 2022, respectively. A hypothetical 100 basis point decrease in interest rates would result in an increase of approximately $8.6 million and $8.6 million in the fair value of our investment in Borrower Loans and Loans Held for Sale as of June 30, 2023, and December 31, 2022, respectively. Any realized or unrealized gains or losses resulting from such interest rate change would be recorded in our statement of operations so long as we hold these Borrower Loans and Loans Held for Sale on our balance sheet.

PROSPER FUNDING LLC

Market Risk

Market risk is the risk of loss to future earnings, values, or future cash flows that may result from changes in financial market prices and interest rates.

Because balances, interest rates, and maturities of Borrower Loans are matched and offset by an equal balance of Notes with the exact same interest rates (net of our servicing fee) and initial maturities, we believe that we do not have any material exposure to changes in the net fair value of the combined Borrower Loan and Note portfolios as a result of changes in interest rates. We do not hold or issue financial instruments for trading purposes.

The fair values of Borrower Loans and the related Notes are determined using discounted cash flow methodologies based upon a set of valuation assumptions. The fair value adjustments for Borrower Loans are largely offset by the fair value adjustments of the Notes due to the borrower payment dependent design of the Notes and due to the total principal balances of the Borrower Loans being very close to the total principal balances of the Notes.

Prosper Funding had Cash and Cash Equivalents of $4.7 million as of June 30, 2023, and $6.3 million as of December 31, 2022. These amounts were held in various unrestricted deposits with highly rated financial institutions and short term, highly liquid marketable securities which may include money market funds, U.S. treasury securities and U.S. agency securities. Cash and cash equivalents are held for working capital purposes. Due to their short-term nature, Prosper Funding believes that it does not have any material exposure to changes in the fair value of these liquid investments as a result of changes in interest rates. Decreases in short-term interest rates will moderately reduce interest income on these cash and cash equivalents, while increases in short-term interest rates will moderately increase the interest income earned on these cash and cash equivalent balances.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Registrants’ disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) are designed to provide reasonable assurance that the information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in rules and forms adopted by the SEC, and that such information is accumulated and communicated to management, including to each Registrant’s Principal Executive Officer (PEO) and Principal Financial Officer (PFO), to allow timely decisions regarding required disclosures. The management of each Registrant, with the participation of such Registrant’s PEO and PFO, has evaluated the effectiveness of such Registrant’s disclosure controls and procedures as of June 30, 2023. Based on this evaluation, each Registrant’s PEO and PFO have concluded that these disclosure controls and procedures were effective as of June 30, 2023.

Changes in Internal Control Over Financial Reporting

There were no changes in either Registrant’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the three months ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, either Registrant’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

This Item should be read in conjunction with the disclosures contained in Part I, Item 3, “Legal Proceedings” of our Annual Report on Form 10-K for the year ended December 31, 2022.

In March 2021, PMI and PFL accepted service of a complaint via email. PMI, PFL and Velocity Investments, LLC, an accounts receivable management company (“Velocity”), were each named in a purported class action lawsuit brought by two individual plaintiffs in the Circuit Court for Montgomery County, Maryland, filed on February 3, 2021 (the “Jones Litigation”). The complaint asserts, on behalf of the plaintiffs and the class members, claims for violation of certain Maryland state laws and seeks damages. The plaintiffs also seek a declaration of requirement for Maryland licensure and that PMI, PFL, and Velocity did not have the right to collect money from the plaintiffs and the class members on the loan accounts. The Jones Litigation was accompanied by a related petition to stay arbitration and demand declaratory judgement in the Circuit Court for Montgomery County, Maryland (the “Jones Petition”). On April 8, 2021, the Jones Litigation was removed to the United States District Court for the District of Maryland (the “Federal District Court”). In March 2021, a similar class action lawsuit, Khan v. Crown Asset Management LLC, was filed in the Circuit Court for Montgomery County, Maryland (the “Khan Litigation”) accompanied by a related petition to stay arbitration (the “Khan Petition”). Prosper was not a named defendant in the Khan Litigation or the Khan Petition. In May 2021, the Khan Litigation was removed to the Federal District Court. On July 15, 2021, plaintiff dismissed the Jones Petition but joined PMI, PFL, and Velocity to the Khan Petition (the “Combined Petition”). The Combined Petition was removed on July 29, 2021 to the Federal District Court. On March 21, 2022, the Federal District Court issued a ruling to compel arbitration in the Jones Litigation and the Khan Litigation, stay the Combined Petition, and combine all cases (the “Ruling to Compel Arbitration”). On April 4, 2023, the Federal District Court issued a ruling asserting jurisdiction over the Khan Litigation, denying plaintiffs’ motion for reconsideration of the Ruling to Compel Arbitration, and denying plaintiffs’ request for an interlocutory appeal. On May 22, 2022, the parties settled. The Combined Petition was subsequently dismissed with prejudice.

Item 1A. Risk Factors

You should carefully consider all information in this Quarterly Report on Form 10-Q, including the condensed consolidated financial statements and related notes, and the risks described in Part I, Item 1A, "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2022.

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds

Prosper – None.

Prosper Funding – Information for this Item is not required for Prosper Funding because it meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q; Prosper Funding is therefore filing this Form with the reduced disclosure format.

Item 3. Defaults upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

The exhibits listed on the Exhibit Index are filed or incorporated by reference as a part of this report and such Exhibit Index is incorporated herein by reference.

EXHIBIT INDEX


Exhibit Number						Exhibit Description
31.1						Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to PMI’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (1)

31.2						Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to PMI’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (1)

31.3						Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to PFL’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (1)

31.4						Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to PFL’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (1)

32.1						Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, with respect to PMI’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (1)

32.2						Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, with respect to PFL’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (1)

101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH						XBRL Taxonomy Extension Schema Document

101.CAL						Taxonomy Extension Calculation Linkbase Document

101.LAB						Taxonomy Extension Label Linkbase Document

101.PRE						Taxonomy Extension Presentation Linkbase Document

101.DEF						Taxonomy Extension Definition Linkbase Document

(1)						Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			PROSPER MARKETPLACE, INC.
			PROSPER FUNDING LLC

August 10, 2023			/s/ David Kimball
			David Kimball
			Chief Executive Officer of Prosper Marketplace, Inc.
			Chief Executive Officer of Prosper Funding LLC
			(Principal Executive Officer)

August 10, 2023			/s/ Usama Ashraf
			Usama Ashraf
			President and Chief Financial Officer of Prosper Marketplace, Inc.
			President, Chief Financial Officer and Treasurer of Prosper Funding LLC
			(Principal Financial Officer)

EX-31.1 2 prosper10q063023ex311.htm EX-31.1 Document

Exhibit 31.1

CERTIFICATIONS

I, David Kimball, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Prosper Marketplace, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


August 10, 2023			/s/ David Kimball
			David Kimball
			Chief Executive Officer of Prosper Marketplace, Inc.

			(principal executive officer)

EX-31.2 3 prosper10q063023ex312.htm EX-31.2 Document

Exhibit 31.2

CERTIFICATIONS

I, Usama Ashraf, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Prosper Marketplace, Inc.;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


August 10, 2023			/s/ Usama Ashraf
			Usama Ashraf
			President and Chief Financial Officer of
			Prosper Marketplace, Inc.
			(principal financial officer)

EX-31.3 4 prosper10q063023ex313.htm EX-31.3 Document

Exhibit 31.3

CERTIFICATIONS

I, David Kimball, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Prosper Funding LLC;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


August 10, 2023			/s/ David Kimball
			David Kimball
			Chief Executive Officer of Prosper Funding LLC
			(principal executive officer)

EX-31.4 5 prosper10q063023ex314.htm EX-31.4 Document

Exhibit 31.4

CERTIFICATIONS

I, Usama Ashraf, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Prosper Funding LLC;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


August 10, 2023			/s/ Usama Ashraf
			Usama Ashraf
			President, Chief Financial Officer and Treasurer of
			Prosper Funding LLC
			(principal financial officer)

EX-32.1 6 prosper10q063023ex321.htm EX-32.1 Document

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Prosper Marketplace, Inc. (“PMI”) on Form 10-Q for the quarter ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of PMI certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of PMI.


August 10, 2023			/s/ David Kimball
			David Kimball
			Chief Executive Officer of Prosper Marketplace, Inc.

			/s/ Usama Ashraf
			Usama Ashraf
			President and Chief Financial Officer of
			Prosper Marketplace, Inc.

EX-32.2 7 prosper10q063023ex322.htm EX-32.2 Document

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Prosper Funding LLC (“PFL”) on Form 10-Q for the quarter ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of PFL certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of PFL.


August 10, 2023			/s/ David Kimball
			David Kimball
			Chief Executive Officer of Prosper Funding LLC

			/s/ Usama Ashraf
			Usama Ashraf
			President, Chief Financial Officer and Treasurer of Prosper Funding LLC

EX-101.SCH 8 prosper-20230630.xsd XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 0000001 - Document - Cover Page link:presentationLink link:calculationLink link:definitionLink 0000002 - Statement - Condensed Consolidated Balance Sheets (Unaudited) link:presentationLink link:calculationLink link:definitionLink 0000003 - Statement - Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 0000004 - Statement - Condensed Consolidated Balance Sheets (Unaudited) - Prosper Funding LLC link:presentationLink link:calculationLink link:definitionLink 0000005 - Statement - Condensed Consolidated Statements of Operations (Unaudited) link:presentationLink link:calculationLink link:definitionLink 0000006 - Statement - Condensed Consolidated Statements of Operations (Unaudited) - Prosper Funding LLC link:presentationLink link:calculationLink link:definitionLink 0000007 - Statement - Condensed Consolidated Statements of Other Comprehensive (Loss) Income (Unaudited) link:presentationLink link:calculationLink link:definitionLink 0000008 - Statement - Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Deficit (Unaudited) link:presentationLink link:calculationLink link:definitionLink 0000009 - Statement - Condensed Consolidated Statements of Members' Equity (Unaudited) - Prosper Funding LLC link:presentationLink link:calculationLink link:definitionLink 0000010 - Statement - Condensed Consolidated Statements of Cash Flows (Unaudited) link:presentationLink link:calculationLink link:definitionLink 0000011 - Statement - Condensed Consolidated Statements of Cash Flows (Unaudited) - Prosper Funding LLC link:presentationLink link:calculationLink link:definitionLink 0000012 - Disclosure - BASIS OF PRESENTATION link:presentationLink link:calculationLink link:definitionLink 0000013 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES link:presentationLink link:calculationLink link:definitionLink 0000014 - Disclosure - PROPERTY AND EQUIPMENT, NET link:presentationLink link:calculationLink link:definitionLink 0000015 - Disclosure - BORROWER LOANS, LOANS HELD FOR SALE AND NOTES, AT FAIR VALUE link:presentationLink link:calculationLink link:definitionLink 0000016 - Disclosure - CREDIT CARD link:presentationLink link:calculationLink link:definitionLink 0000017 - Disclosure - SERVICING ASSETS link:presentationLink link:calculationLink link:definitionLink 0000018 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES link:presentationLink link:calculationLink link:definitionLink 0000019 - Disclosure - GOODWILL AND OTHER INTANGIBLE ASSETS, NET link:presentationLink link:calculationLink link:definitionLink 0000020 - Disclosure - OTHER LIABILITIES link:presentationLink link:calculationLink link:definitionLink 0000021 - Disclosure - DEBT link:presentationLink link:calculationLink link:definitionLink 0000022 - Disclosure - NET INCOME (LOSS) PER SHARE link:presentationLink link:calculationLink link:definitionLink 0000023 - Disclosure - CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY AND COMMON STOCK link:presentationLink link:calculationLink link:definitionLink 0000024 - Disclosure - STOCK-BASED COMPENSATION link:presentationLink link:calculationLink link:definitionLink 0000025 - Disclosure - INCOME TAXES link:presentationLink link:calculationLink link:definitionLink 0000026 - Disclosure - LEASES link:presentationLink link:calculationLink link:definitionLink 0000027 - Disclosure - COMMITMENTS AND CONTINGENCIES link:presentationLink link:calculationLink link:definitionLink 0000028 - Disclosure - RELATED PARTIES link:presentationLink link:calculationLink link:definitionLink 0000029 - Disclosure - SIGNIFICANT CONCENTRATIONS link:presentationLink link:calculationLink link:definitionLink 0000030 - Disclosure - SEGMENTS link:presentationLink link:calculationLink link:definitionLink 9954701 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) link:presentationLink link:calculationLink link:definitionLink 9954702 - Disclosure - PROPERTY AND EQUIPMENT, NET (Tables) link:presentationLink link:calculationLink link:definitionLink 9954703 - Disclosure - BORROWER LOANS, LOANS HELD FOR SALE AND NOTES, AT FAIR VALUE (Tables) link:presentationLink link:calculationLink link:definitionLink 9954704 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES (Tables) link:presentationLink link:calculationLink link:definitionLink 9954705 - Disclosure - GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) link:presentationLink link:calculationLink link:definitionLink 9954706 - Disclosure - OTHER LIABILITIES (Tables) link:presentationLink link:calculationLink link:definitionLink 9954707 - Disclosure - NET INCOME (LOSS) PER SHARE (Tables) link:presentationLink link:calculationLink link:definitionLink 9954708 - Disclosure - CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY AND COMMON STOCK (Tables) link:presentationLink link:calculationLink link:definitionLink 9954709 - Disclosure - STOCK-BASED COMPENSATION (Tables) link:presentationLink link:calculationLink link:definitionLink 9954710 - Disclosure - LEASES (Tables) link:presentationLink link:calculationLink link:definitionLink 9954711 - Disclosure - RELATED PARTIES (Tables) link:presentationLink link:calculationLink link:definitionLink 9954712 - Disclosure - SEGMENTS (Tables) link:presentationLink link:calculationLink link:definitionLink 9954713 - Disclosure - PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment (Details) link:presentationLink link:calculationLink link:definitionLink 9954714 - Disclosure - PROPERTY AND EQUIPMENT, NET - Additional Information (Details) link:presentationLink link:calculationLink link:definitionLink 9954715 - Disclosure - BORROWER LOANS, LOANS HELD FOR SALE AND NOTES, AT FAIR VALUE - Fair Value of Borrower Loans and Notes (Details) link:presentationLink link:calculationLink link:definitionLink 9954716 - Disclosure - BORROWER LOANS, LOANS HELD FOR SALE AND NOTES, AT FAIR VALUE - Additional Information (Details) link:presentationLink link:calculationLink link:definitionLink 9954717 - Disclosure - CREDIT CARD (Details) link:presentationLink link:calculationLink link:definitionLink 9954718 - Disclosure - SERVICING ASSETS (Details) link:presentationLink link:calculationLink link:definitionLink 9954719 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES - Fair Value Hierarchy (Details) link:presentationLink link:calculationLink link:definitionLink 9954720 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES - Significant Unobservable Inputs (Details) link:presentationLink link:calculationLink link:definitionLink 9954721 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES - Significant Unobservable Inputs - Servicing Rights (Details) link:presentationLink link:calculationLink link:definitionLink 9954722 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES - Significant Unobservable Inputs - Loan Trailing Fee Liability (Details) link:presentationLink link:calculationLink link:definitionLink 9954723 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES - Changes in Level 3 Fair Value Assets and Liabilities on a Recurring Basis (Details) link:presentationLink link:calculationLink link:definitionLink 9954724 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES - Summary of Additional Information for Level 3 Fair Value Balances (Details) link:presentationLink link:calculationLink link:definitionLink 9954725 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES - Fair Value Assumptions for Borrower Loans, Loans Held for Sale and Notes (Details) link:presentationLink link:calculationLink link:definitionLink 9954726 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES - Fair Value Assumptions for Certificates Issued by Securitization Trust (Details) link:presentationLink link:calculationLink link:definitionLink 9954727 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES - Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities (Details) link:presentationLink link:calculationLink link:definitionLink 9954728 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES - Schedule Credit Card Derivative Obligation Liability (Details) link:presentationLink link:calculationLink link:definitionLink 9954729 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES - Schedule of Prosper's Estimated Fair Value of Derivative Assets (Details) link:presentationLink link:calculationLink link:definitionLink 9954730 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES - Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities - Additional Information (Details) link:presentationLink link:calculationLink link:definitionLink 9954731 - Disclosure - FAIR VALUE OF ASSETS AND LIABILITIES - Financial Instruments, Assets and Liabilities not Recorded at Fair Value (Details) link:presentationLink link:calculationLink link:definitionLink 9954732 - Disclosure - GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Additional Information (Details) link:presentationLink link:calculationLink link:definitionLink 9954733 - Disclosure - GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Summary of Other Intangible Assets (Details) link:presentationLink link:calculationLink link:definitionLink 9954734 - Disclosure - GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Summary of Estimated Amortization of Purchased Intangible Assets (Details) link:presentationLink link:calculationLink link:definitionLink 9954735 - Disclosure - OTHER LIABILITIES (Details) link:presentationLink link:calculationLink link:definitionLink 9954736 - Disclosure - DEBT (Details) link:presentationLink link:calculationLink link:definitionLink 9954737 - Disclosure - NET INCOME (LOSS) PER SHARE - Basic and Diluted Net Income (Loss) Per Share (Details) link:presentationLink link:calculationLink link:definitionLink 9954738 - Disclosure - NET INCOME (LOSS) PER SHARE - Dilutive Shares Excluded from Calculation (Details) link:presentationLink link:calculationLink link:definitionLink 9954739 - Disclosure - CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY AND COMMON STOCK - Additional Information (Details) link:presentationLink link:calculationLink link:definitionLink 9954740 - Disclosure - CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY AND COMMON STOCK - Summary of Shares Information (Details) link:presentationLink link:calculationLink link:definitionLink 9954741 - Disclosure - CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY AND COMMON STOCK - Valuation Techniques (Details) link:presentationLink link:calculationLink link:definitionLink 9954742 - Disclosure - STOCK-BASED COMPENSATION - Additional Information (Details) link:presentationLink link:calculationLink link:definitionLink 9954743 - Disclosure - STOCK-BASED COMPENSATION - Summarized Option Activity under Option Plan (Details) link:presentationLink link:calculationLink link:definitionLink 9954744 - Disclosure - STOCK-BASED COMPENSATION - Fair Value of Stock Option Awards (Details) link:presentationLink link:calculationLink link:definitionLink 9954745 - Disclosure - STOCK-BASED COMPENSATION - Summarized Activities for the Company's RSU's (Details) link:presentationLink link:calculationLink link:definitionLink 9954746 - Disclosure - STOCK-BASED COMPENSATION - Stock Based Compensation Included in Consolidated Statements of Operations (Details) link:presentationLink link:calculationLink link:definitionLink 9954747 - Disclosure - INCOME TAXES (Details) link:presentationLink link:calculationLink link:definitionLink 9954748 - Disclosure - LEASES - Additional Information (Details) link:presentationLink link:calculationLink link:definitionLink 9954749 - Disclosure - LEASES - Operating Lease Right-of-Use Assets (Details) link:presentationLink link:calculationLink link:definitionLink 9954750 - Disclosure - LEASES - Schedule of Lease Maturity (Details) link:presentationLink link:calculationLink link:definitionLink 9954750 - Disclosure - LEASES - Schedule of Lease Maturity (Details) link:presentationLink link:calculationLink link:definitionLink 9954751 - Disclosure - LEASES - Other Information Related to Leases (Details) link:presentationLink link:calculationLink link:definitionLink 9954752 - Disclosure - COMMITMENTS AND CONTINGENCIES (Details) link:presentationLink link:calculationLink link:definitionLink 9954753 - Disclosure - RELATED PARTIES - Additional Information (Details) link:presentationLink link:calculationLink link:definitionLink 9954754 - Disclosure - RELATED PARTIES - Aggregate Amount of Notes Purchased and the Income Earned (Details) link:presentationLink link:calculationLink link:definitionLink 9954755 - Disclosure - SIGNIFICANT CONCENTRATIONS (Details) link:presentationLink link:calculationLink link:definitionLink 9954756 - Disclosure - SEGMENTS - Additional Information (Details) link:presentationLink link:calculationLink link:definitionLink 9954757 - Disclosure - SEGMENTS - Segment Information Reconciled (Details) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 9 prosper-20230630_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT EX-101.DEF 10 prosper-20230630_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT EX-101.LAB 11 prosper-20230630_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT Consolidated Entities [Axis] Consolidated Entities [Axis] Minimum net liquidity Line of Credit Facility, Covenant Terms, Minimum Net Liquidity Line of Credit Facility, Covenant Terms, Minimum Net Liquidity Variable Rate [Domain] Variable Rate [Domain] Change in fair value Change in fair value Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings Warehouse Agreement Warehouse Agreement [Member] Warehouse Agreement Market servicing rate increase of 0.10% 100 Basis Point Increase [Member] 100 Basis Point Increase Range [Domain] Statistical Measurement [Domain] Credit Card Credit Card Segment [Member] Credit Card Segment Line of credit Line of Credit Facility, Maximum Borrowing Capacity Issuances Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances Changes in Operating Assets and Liabilities: Increase (Decrease) in Operating Capital [Abstract] Related Party Transaction [Line Items] Related Party Transaction [Line Items] Equity Award [Domain] Award Type [Domain] Default rate decrease Default Rate Decrease Borrower Loans sold to third parties Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales Unvested restricted stock outstanding (in shares) Unvested, beginning balance (in shares) Unvested, ending balance (in shares) Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number Expected fair value with change in assumptions Derivative Asset, Expected Fair Value With Change In Assumptions Derivative Asset, Expected Fair Value With Change In Assumptions DEBT Debt Disclosure [Text Block] Statement of Stockholders' Equity [Abstract] Revolving Credit Facility Revolving Credit Facility [Member] VIE, Primary Beneficiary Variable Interest Entity, Primary Beneficiary [Member] Managing Of Risks Inherent In Servicing Assets And Servicing Liabilities [Table] Schedule of Managing of Risks Inherent in Servicing Assets and Servicing Liabilities [Table] Deferred income tax liability Deferred Income Tax Liabilities, Net Segment Reporting [Abstract] Borrower Loans, Aggregate principal balance outstanding Loans Receivable Carrying Value Computer equipment Computer Equipment [Member] Minimum percentage of stockholders considered for related parties Minimum Percentage Of StockHolders Engaged In Various Transactions As Related Party Beginning balance, Assets Ending balance, Assets Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value Proceeds from exercise of stock options Proceeds From Exercise Of Warrants And Stock Options Including Early Exercise And Issuance Of Restricted Stock Commitments And Contingencies [Table] Commitments And Contingencies [Table] Commitments and contingencies. Commitments and Contingencies (Note 16) Commitments and Contingencies Schedule of Lease Maturity Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] Volatility Measurement Input, Price Volatility [Member] General and Administration - Other General and Administrative, Depreciation Expense General and Administrative, Depreciation Expense Options vested and exercisable (in shares) Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number Other changes Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Other Changes Gain on Sale of Borrower Loans Gain (Loss) on Sales of Consumer Loans CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY AND COMMON STOCK Equity [Text Block] Conversion ratio Conversion Ratio Of Preferred Stock Into Prosper Common Stock Member’s Equity General Partner [Member] Geographical [Axis] Geographical [Axis] Line of Credit Facility [Line Items] Line of Credit Facility [Line Items] INCOME TAXES Income Tax Disclosure [Text Block] Dividend yield Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate Accrued repurchase and indemnification obligation Repurchase Obligation Accrued Schedule of Other Liabilities Other Liabilities [Table Text Block] Depreciation expense: Depreciation [Abstract] Concentration Risk [Line Items] Concentration Risk [Line Items] Total Liabilities Financial Liabilities Fair Value Disclosure Directors (excluding executive officers and management) Director [Member] Leases Lessee, Leases [Policy Text Block] Proceeds from Issuance of Notes Held at Fair Value Proceeds From Issuance Of Notes Held At Fair Value Schedule of Assumptions Used Defined Benefit Plan, Assumptions [Table Text Block] Preferred stock, par value (in dollars per share) Preferred Stock, Par or Stated Value Per Share Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] Subsequent Event Type [Domain] Subsequent Event Type [Domain] Maturity, in months Continuing Involvement With Transferred Financial Assets Original Term Fair Value Measurements, Recurring and Nonrecurring [Table] Fair Value, Recurring and Nonrecurring [Table] Schedule of Servicing Liabilities at Fair Value [Table] Schedule of Servicing Liabilities at Fair Value [Table] Net (Loss) Income Per Share - Diluted (in dollars per share) Earnings Per Share, Diluted Servicing rate increase Servicing Rate Increase Term Loan Secured Debt Schedule Of Property Plant And Equipment [Table] Property, Plant and Equipment [Table] Less: Treasury Stock Treasury Stock, Value PWIIT PWIIT Warehouse Line [Member] PWIIT Warehouse Line Options vested and expected to vest (in dollars per share) Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price Level 3 Inputs Fair Value, Inputs, Level 3 [Member] Beginning balance (in shares) Ending balance (in shares) Treasury Stock, Common, Shares Line of Credit Line of Credit [Member] Change in Fair Value of Financial Instruments Change in Fair Value of Financial Instruments Change In Fair Value Of Borrower Loans Loans Held For Sale And Notes Beginning Balance (in shares) Ending balance (in shares) Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number Change in fair value Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liability Change In Fair Value Impact of interest rates on fair value of loans held in consolidated trusts Impact Of Fluctuations In Market Interest Rates Impact Of Fluctuations In Market Interest Rates Interest Earned on Notes and Borrower Loans Interest Income, Interest-Earning Asset Market servicing rate Measurement Input, Market Servicing Rate [Member] Measurement Input, Market Servicing Rate Options issued (in dollars per share) Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price Net (Loss) Income Net (Loss) Income Net (Loss) Income Net (Loss) Income Net Income (Loss) Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] Derivative Contract [Domain] Derivative Contract [Domain] Fair Value Disclosures [Abstract] 90 days or more past due Financial Asset, Equal to or Greater than 90 Days Past Due [Member] LEASES Lessee, Operating Leases [Text Block] Change In Assumptions [Axis] Change In Assumptions [Axis] Liabilities, Convertible Preferred Stock and Stockholders' Deficit: Liabilities and Member's Equity: Liabilities and Equity [Abstract] Finite Lived Intangible Assets [Line Items] Finite-Lived Intangible Assets [Line Items] Purchase of Borrower Loans Held at Fair Value Purchase Of Borrower Loans Held At Fair Value Cash and Cash Equivalents [Domain] Cash and Cash Equivalents [Domain] Stockholders' Deficit: Equity, Attributable to Parent [Abstract] Exercise of stock options (in shares) Options exercised (in shares) Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period Deferred revenue Contract with Customer, Liability Accounts Receivable Increase (Decrease) in Receivables Servicing Rights at Fair Value [Line Items] Servicing Liabilities at Fair Value [Line Items] Servicing Liabilities at Fair Value [Line Items] Schedule of Basic and Diluted Net Income (Loss) Per Share Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] Servicing Cost of Goods and Services Sold Interest Rate Swaption Interest Rate Swaption [Member] Vesting period Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Loss) Gain on Sale of Borrower Loans Gain on sale of borrower loans Gain (Loss) on Sales of Loans, Net Related Party One Related Party One [Member] Related Party One Obligations Obligations [Member] Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] Maturity term four, in months Continuing Involvement With Transferred Financial Assets Original Term Four Continuing Involvement With Transferred Financial Assets Original Term Four Principal repayments Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liability Principal Repayments And Credit Losses SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant Accounting Policies [Text Block] Options exercised (in dollars per share) Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price Level 1 Inputs Fair Value, Inputs, Level 1 [Member] Net payments received (made) Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Payments Received Net Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Payments Received Net Cash and Cash Equivalents Other Cash and Cash Equivalents [Member] Other Cash and Cash Equivalents Carrying Amount Reported Value Measurement [Member] Maximum potential future payments Guarantor Obligations, Maximum Exposure, Undiscounted Goodwill Goodwill Schedule of Property and Equipment Property, Plant and Equipment [Table Text Block] Equity Components [Axis] Equity Components [Axis] Net Carrying Value Operating Lease, Right-of-Use Asset, Net Operating Lease, Right-of-Use Asset, Net Exercise price (in dollars per share) Class of Warrant or Right, Exercise Price of Warrants or Rights Financial Instruments [Domain] Financial Instruments [Domain] Certificates of Deposit Certificates of Deposit [Member] Market servicing rate Market Servicing Rate [Member] Market Servicing Rate Lessee, Lease, Description [Table] Lessee, Lease, Description [Table] Measurement Basis [Axis] Measurement Basis [Axis] Convertible Preferred Stock Warrant Liability Mandatorily Redeemable Preferred Stock, Fair Value Disclosure Options issued (in shares) Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross Entity Small Business Entity Small Business Local Phone Number Local Phone Number Fair Value Measurement [Domain] Fair Value Measurement [Domain] Derivative notional amount Derivative, Notional Amount Principal repayments Cash Payment of Loan Trailing Fee Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements Measurement Frequency Measurement Frequency [Axis] Warrants issued and outstanding Warrant [Member] IPO value (at least) Value Prior To Closing Of Underwritten Initial Public Offering On Conversion RSUs Restricted Stock Units (RSUs) [Member] Loans in non-accrual status Financing Receivable, Nonaccrual Schedule of Restricted Stock Unit Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] Remaining contractual term (in years) Debt Instrument, Term Debt Instrument, Name [Domain] Debt Instrument, Name [Domain] Fair Value Inputs Assets Quantitative Information [Table] Fair Value Measurement Inputs and Valuation Techniques [Table] Goodwill And Other Intangible Assets [Line Items] Goodwill And Other Intangible Assets [Line Items] Goodwill and other intangible assets. Non-Cash Financing Activity - Forgiveness of PPP Loan Non-Cash Financing, Extinguishment of Debt Non-Cash Financing, Extinguishment of Debt Payments of debt issuance costs Payments of Debt Issuance Costs Liabilities Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] Portion at Fair Value Measurement Portion at Fair Value Measurement [Member] Income Statement Location [Axis] Income Statement Location [Axis] Series E1 and E2 Preferred Stock Series E1 And E2 Preferred Stock [Member] Series E1 And E2 Preferred Stock Line of Credit Facility [Table] Line of Credit Facility [Table] 20 percent increase Twenty Percent Increase [Member] Twenty Percent Increase Valuation techniques Derivative Asset, Measurement Input Minimum fee, 2024 Borrowers Loans Origination, Minimum Fee, Year One Schedule of Future Minimum Lease Payments Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] Assets not yet placed in service Assets Not Yet Placed In Service Member Consolidation of Variable Interest Entities Consolidation, Variable Interest Entity, Policy [Policy Text Block] Total Net Revenue Total Net Revenue Revenues Risk-free interest rate Measurement Input, Risk Free Interest Rate [Member] Schedule of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value Fair Value, by Balance Sheet Grouping [Table Text Block] Temporary Equity Component [Domain] Temporary Equity Component [Domain] Temporary Equity Component Goodwill And Other Intangible Assets [Table] Goodwill And Other Intangible Assets [Table] Goodwill and other intangible assets. Fair Value by Liability Class [Domain] Fair Value by Liability Class [Domain] Market servicing rate decrease of 0.20% 200 Basis Point Decrease [Member] 200 Basis Point Decrease Repayments of repurchased Notes Repayments of Other Long-Term Debt Schedule of Dilutive Shares Excluded from the Diluted Net Income (Loss) Per Share Calculation Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] Product and Service [Domain] Product and Service [Domain] Convertible Preferred Stock Beginning balance Ending balance Temporary Equity, Carrying Amount, Attributable to Parent Discount rate Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate Interest Expense on Financial Instruments Interest Expense on Notes Interest Expense on Financial Instruments Interest Expense, Debt Summary of Other Information Related to Leases Lease, Cost [Table Text Block] Minimum fee, 2025 Borrowers Loans Origination, Minimum Fee, Year Two Borrowers Loans Origination, Minimum Fee, Year Two Total Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Asset And Liability [Roll Forward] Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Asset And Liability [Roll Forward] Segment Adjusted EBITDA Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization Notes, at Fair Value Notes, at Fair Value Notes Payable, Fair Value Disclosure Exercise of vested stock options (in shares) Share-Based Compensation Arrangement By Share Based Payment Award Vested Options Exercises In Period Award Type [Axis] Award Type [Axis] Total excluded securities (in shares) Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount Derivative Instruments and Hedging Activities Disclosure [Abstract] Plan Name [Domain] Plan Name [Domain] Credit Card Derivative Increase (Decrease) in Derivative Liabilities Document Quarterly Report Document Quarterly Report Convertible preferred stock warrants (in shares) Incremental Common Shares Attributable to Dilutive Effect Of Convertible Stock Warrant Incremental Common Shares Attributable to Dilutive Effect Of Convertible Stock Warrant Payable to Investors Payable To Investors Non-Cash Investing Activity- Accrual for Property and Equipment, Net Capital Expenditures Incurred but Not yet Paid Fair Value Hierarchy and NAV [Domain] Fair Value Hierarchy and NAV [Domain] Change in Fair Value of Servicing Rights Amortization And Change In Fair Value Servicing Rights Amortization and change In fair value of servicing rights. Gain on Forgiveness of PPP Loan Gain on Forgiveness of PPP Loan Gain (Loss) on Extinguishment of Debt General and administrative General and Administrative Expense [Member] PWIIT Class B PWIIT Warehouse Line, Class B [Member] PWIIT Warehouse Line, Class B Property and equipment Property, Plant and Equipment, Gross Options outstanding, term Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term Prepayment rate Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed Stockholders' Equity Note [Abstract] Servicing Fees, Net Bank Servicing [Member] RELATED PARTIES Related Party Transactions Disclosure [Text Block] Less imputed interest Lessee, Operating Lease, Liability, Undiscounted Excess Amount Maximum leverage ratio Line of Credit Facility, Covenant Terms, Maximum Leverage Ratio Line of Credit Facility, Covenant Terms, Maximum Leverage Ratio Long-term Debt, Type Long-Term Debt, Type [Domain] Convertible Preferred Stock Warrant Liability Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Noncurrent EX-101.PRE 12 prosper-20230630_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT XML 13 R1.htm IDEA: XBRL DOCUMENT

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2023	Aug. 08, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Entity File Number	333-225797-01
Entity Registrant Name	PROSPER MARKETPLACE, INC.
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001416265
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	73-1733867
Entity Address, Address Line One	221 Main Street
Entity Address, Address Line Two	3rd Floor
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94105
City Area Code	415
Local Phone Number	593-5400
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		76,600,926
Prosper Funding LLC
Entity Information [Line Items]
Entity File Number	333-225797
Entity Registrant Name	PROSPER FUNDING LLC
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001542574
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-4526070
Entity Address, Address Line One	221 Main Street
Entity Address, Address Line Two	3rd Floor
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94105
City Area Code	415
Local Phone Number	593-5400
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		0

XML 14 R2.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands

Jun. 30, 2023

Dec. 31, 2022

Assets:

$ 43,830

$ 83,446

^[1]

111,385

113,163

5,084

3,462

^[1]

517,781

499,765

Property and Equipment, Net

334,259

320,642

39,652

38,814

Prepaid and Other Assets

^[1]

12,036

9,208

19,542

10,782

12,833

12,562

Goodwill

36,368

Intangible Assets, Net

139

192

Liabilities, Convertible Preferred Stock and Stockholders' Deficit:

1,132,909

1,128,404

41,283

37,254

75,134

85,312

330,747

318,704

^[1]

474,662

446,762

Term Loan

74,293

73,407

31,281

28,258

194,070

166,346

Commitments and Contingencies (Note 16)

1,221,470

1,156,043

Stockholders' Deficit:

Common Stock – $0.01 par value; 625,000,000 shares authorized; 77,536,861 shares issued and 76,600,926 shares outstanding, as of June 30, 2023; 75,223,850 shares issued and 74,287,915 shares outstanding, as of December 31, 2022

290

267

Additional Paid-In Capital

159,729

158,814

Less: Treasury Stock

(23,417)

Accumulated Deficit

(545,530)

(483,670)

Total Stockholders' Deficit

(408,928)

(348,006)

Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit

1,132,909

1,128,404

Consolidated Entity, Excluding Consolidated VIE

Liabilities, Convertible Preferred Stock and Stockholders' Deficit:

Convertible Preferred Stock

322,748

VIE, Primary Beneficiary

Assets:

20,565

11,838

517,781

499,765

Prepaid and Other Assets

3,967

3,210

Liabilities, Convertible Preferred Stock and Stockholders' Deficit:

542,313

514,813

474,662

446,762

Convertible Preferred Stock

474,662

446,762

$ 2,381

[1]


	June 30, 2023		December 31, 2022
Assets of consolidated VIEs, included in total assets above:
Restricted Cash	$	20,565	$	11,838
Loans Held for Sale, at Fair Value	517,781		499,765

Prepaid and Other Assets	3,967		3,210
Total assets of consolidated variable interest entities	$	542,313	$	514,813
Liabilities of consolidated VIEs, included in total liabilities above:


Warehouse Lines	$	474,662	$	446,762
Total liabilities of consolidated variable interest entities	$	474,662	$	446,762

XML 15 R3.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Sep. 20, 2017
Convertible preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Convertible preferred stock, authorized (in shares)	444,760,848	444,760,848	444,760,848
Convertible preferred stock, issued (in shares)	209,613,570	209,613,570
Convertible preferred stock, outstanding (in shares)	209,613,570	209,613,570
Liquidation Preference, Outstanding Shares	$ 370,456	$ 370,456
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, authorized (in shares)	625,000,000	625,000,000	625,000,000
Common stock, issued (in shares)	77,536,861	75,223,850
Common stock, outstanding (in shares)	76,600,926	74,287,915
VIE, Primary Beneficiary
Convertible preferred stock, issued (in shares)	51,247,915	51,247,915
Convertible preferred stock, outstanding (in shares)	51,247,915	51,247,915

XML 16 R4.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (Unaudited) - Prosper Funding LLC - USD ($)
$ in Thousands

Jun. 30, 2023

Dec. 31, 2022

Assets:

$ 43,830

$ 83,446

^[1]

111,385

113,163

334,259

320,642

12,833

12,562

1,132,909

1,128,404

Liabilities and Member's Equity:

41,283

37,254

75,134

85,312

330,747

318,704

31,281

28,258

Total Stockholders' Deficit

1,221,470

1,156,043

Stockholders' Deficit:

Retained Earnings

(545,530)

(483,670)

(408,928)

(348,006)

Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit

1,132,909

1,128,404

Assets:

4,655

6,285

79,688

91,564

Property and Equipment, Net

334,259

320,642

10,973

10,004

15,148

14,860

Other Assets

444,750

443,439

Liabilities and Member's Equity:

5,296

4,576

76,691

86,927

330,747

318,704

3,685

3,608

Total Stockholders' Deficit

418,029

416,668

Stockholders' Deficit:

Member's Equity

6,354

Retained Earnings

20,367

20,417

26,721

26,771

Total Liabilities, Convertible Preferred Stock and Stockholders' Deficit

444,750

443,439

Prosper Funding LLC | Related Party

Liabilities and Member's Equity:

Notes, Aggregate principal balance outstanding

$ 1,610

$ 2,853

[1]


	June 30, 2023		December 31, 2022
Assets of consolidated VIEs, included in total assets above:
Restricted Cash	$	20,565	$	11,838
Loans Held for Sale, at Fair Value	517,781		499,765

Prepaid and Other Assets	3,967		3,210
Total assets of consolidated variable interest entities	$	542,313	$	514,813
Liabilities of consolidated VIEs, included in total liabilities above:


Warehouse Lines	$	474,662	$	446,762
Total liabilities of consolidated variable interest entities	$	474,662	$	446,762

XML 17 R5.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating Revenues:
(Loss) Gain on Sale of Borrower Loans	$ (1,976)	$ 3,352	$ (3,366)	$ 5,031
Total Operating Revenues	35,399	51,505	73,641	85,388
Interest Income (Expense):
Interest Income on Borrower Loans and Loans Held for Sale	30,366	20,579	59,385	38,662
Interest Expense on Financial Instruments	(23,404)	(14,101)	(44,563)	(25,870)
Total Interest Income, Net	6,962	6,478	14,822	12,792
Change in Fair Value of Financial Instruments	(10,830)	(2,722)	(16,560)	(4,326)
Total Net Revenue	31,531	55,261	71,903	93,854
Expenses:
Origination and Servicing	12,332	13,873	24,617	25,039
Sales and Marketing	13,624	22,401	29,128	36,085
General and Administrative	23,853	20,687	47,282	39,980
Change in Fair Value of Convertible Preferred Stock Warrants	31,989	(44,075)	27,724	(77,486)
Interest Expense on Term Loan	2,869	0	5,821	0
Gain on Forgiveness of PPP Loan	0	0	0	(8,604)
Other Income, Net	(436)	(310)	(949)	(497)
Total Expenses	84,231	12,576	133,623	14,517
Net (Loss) Income Before Taxes	(52,700)	42,685	(61,720)	79,337
Income Tax Expense	(70)	(20)	(140)	(40)
Net (Loss) Income	(52,770)	42,665	(61,860)	79,297
Less: Net Income Allocated to Participating Securities	0	(28,663)	0	(53,352)
Net (Loss) Income Attributable to Common Stockholders	$ (52,770)	$ 14,002	$ (61,860)	$ 25,945
Net (Loss) Income Per Share – Basic (in dollars per share)	$ (0.70)	$ 0.19	$ (0.82)	$ 0.36
Net (Loss) Income Per Share - Diluted (in dollars per share)	$ (0.70)	$ 0.04	$ (0.82)	$ 0.07
Weighted-Average Shares - Basic (in shares)	75,777,502	72,971,346	75,483,899	72,643,221
Weighted-Average Shares – Diluted (in shares)	75,777,502	345,337,390	75,483,899	349,077,671
Transaction Fees, Net
Operating Revenues:
Revenues	$ 31,729	$ 42,986	$ 65,014	$ 69,471
Servicing Fees, Net
Operating Revenues:
Revenues	4,017	3,153	9,070	7,361
Other Revenues
Operating Revenues:
Revenues	$ 1,629	$ 2,014	$ 2,923	$ 3,525

XML 18 R6.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Operations (Unaudited) - Prosper Funding LLC - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating Revenues:
(Loss) Gain on Sale of Borrower Loans	$ (1,976)	$ 3,352	$ (3,366)	$ 5,031
Total Operating Revenues	35,399	51,505	73,641	85,388
Interest Income (Expense):
Interest Income on Borrower Loans	30,366	20,579	59,385	38,662
Interest Expense on Notes	(23,404)	(14,101)	(44,563)	(25,870)
Total Interest Income, Net	6,962	6,478	14,822	12,792
Change In Fair Value Of Financial Instruments	(10,830)	(2,722)	(16,560)	(4,326)
Expenses:
General and Administrative	23,853	20,687	47,282	39,980
Total Expenses	84,231	12,576	133,623	14,517
Net (Loss) Income	(52,770)	42,665	(61,860)	79,297
Prosper Funding LLC
Operating Revenues:
(Loss) Gain on Sale of Borrower Loans	(1,696)	3,797	(2,336)	5,957
Total Operating Revenues	15,188	22,751	31,946	39,891
Interest Income (Expense):
Interest Income on Borrower Loans	12,952	11,670	25,301	21,636
Interest Expense on Notes	(12,072)	(10,919)	(23,559)	(20,187)
Total Interest Income, Net	880	751	1,742	1,449
Change In Fair Value Of Financial Instruments	216	439	(164)	267
Total Net Revenues	16,284	23,941	33,524	41,607
Expenses:
Administration Fee - Related Party	14,601	19,372	29,843	33,807
Servicing	1,990	1,874	3,730	3,522
General and Administrative	0	158	1	296
Total Expenses	16,591	21,404	33,574	37,625
Net (Loss) Income	(307)	2,537	(50)	3,982
Administration Fee Revenue - Related Party \| Prosper Funding LLC
Operating Revenues:
Revenues	10,309	14,031	20,552	24,151
Servicing Fees, Net
Operating Revenues:
Revenues	4,017	3,153	9,070	7,361
Servicing Fees, Net \| Prosper Funding LLC
Operating Revenues:
Revenues	6,490	4,562	13,577	9,113
Other Revenues
Operating Revenues:
Revenues	1,629	2,014	2,923	3,525
Other Revenues \| Prosper Funding LLC
Operating Revenues:
Revenues	$ 85	$ 361	$ 153	$ 670

XML 19 R7.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Other Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net (Loss) Income	$ (52,770)	$ 42,665	$ (61,860)	$ 79,297
Other Comprehensive Income (Loss), Net of Tax	0	0	0	0
Comprehensive (Loss) Income, Net of Tax	$ (52,770)	$ 42,665	$ (61,860)	$ 79,297

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482765/220-10-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-8

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-9

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 13: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-10

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483581/946-220-45-7

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(9))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(1)(d))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 20: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 32: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483499/205-20-50-7

Reference 35: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 230
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 28
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482740/230-10-45-28

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1A

Reference 37: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1B

Reference 38: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 39: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

XML 20 R8.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Deficit (Unaudited) - USD ($) $ in Thousands	Total	Convertible Preferred Stock	Convertible Preferred Stock Held by Consolidated VIE	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021		209,613,570	51,247,915
Beginning balance at Dec. 31, 2021		$ 322,748	$ (2,381)
Ending balance (in shares) at Mar. 31, 2022		209,613,570	51,247,915
Ending balance at Mar. 31, 2022		$ 322,748	$ (2,381)
Beginning balance (in shares) at Dec. 31, 2021				77,331,229
Beginning balance at Dec. 31, 2021	$ (420,168)			$ 245	$ (23,417)	$ 157,256	$ (554,252)
Beginning balance (in shares) at Dec. 31, 2021					(5,177,235)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of vested stock options (in shares)				339,867
Exercise of vested stock options	8			$ 4		4
Stock-based compensation expense	341					341
Net (Loss) Income	36,632						36,632
Ending balance (in shares) at Mar. 31, 2022				77,671,096
Ending balance at Mar. 31, 2022	(383,187)			$ 249	$ (23,417)	157,601	(517,620)
Ending balance (in shares) at Mar. 31, 2022					(5,177,235)
Beginning balance (in shares) at Dec. 31, 2021		209,613,570	51,247,915
Beginning balance at Dec. 31, 2021		$ 322,748	$ (2,381)
Ending balance (in shares) at Jun. 30, 2022		209,613,570	51,247,915
Ending balance at Jun. 30, 2022		$ 322,748	$ (2,381)
Beginning balance (in shares) at Dec. 31, 2021				77,331,229
Beginning balance at Dec. 31, 2021	(420,168)			$ 245	$ (23,417)	157,256	(554,252)
Beginning balance (in shares) at Dec. 31, 2021					(5,177,235)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of vested stock options (in shares)				1,445,547
Exercise of vested stock options	35			$ 15		20
Stock-based compensation expense	895					895
Net (Loss) Income	79,297						79,297
Ending balance (in shares) at Jun. 30, 2022				78,776,776
Ending balance at Jun. 30, 2022	(339,941)			$ 260	$ (23,417)	158,171	(474,955)
Ending balance (in shares) at Jun. 30, 2022					(5,177,235)
Beginning balance (in shares) at Mar. 31, 2022		209,613,570	51,247,915
Beginning balance at Mar. 31, 2022		$ 322,748	$ (2,381)
Ending balance (in shares) at Jun. 30, 2022		209,613,570	51,247,915
Ending balance at Jun. 30, 2022		$ 322,748	$ (2,381)
Beginning balance (in shares) at Mar. 31, 2022				77,671,096
Beginning balance at Mar. 31, 2022	(383,187)			$ 249	$ (23,417)	157,601	(517,620)
Beginning balance (in shares) at Mar. 31, 2022					(5,177,235)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of vested stock options (in shares)				1,105,680
Exercise of vested stock options	27			$ 11		16
Stock-based compensation expense	554					554
Net (Loss) Income	42,665						42,665
Ending balance (in shares) at Jun. 30, 2022				78,776,776
Ending balance at Jun. 30, 2022	$ (339,941)			$ 260	$ (23,417)	158,171	(474,955)
Ending balance (in shares) at Jun. 30, 2022					(5,177,235)
Beginning balance (in shares) at Dec. 31, 2022	209,613,570	209,613,570	51,247,915
Beginning balance at Dec. 31, 2022		$ 322,748	$ (2,381)
Ending balance (in shares) at Mar. 31, 2023		209,613,570	51,247,915
Ending balance at Mar. 31, 2023		$ 322,748	$ (2,381)
Beginning balance (in shares) at Dec. 31, 2022	74,287,915			79,465,150
Beginning balance at Dec. 31, 2022	$ (348,006)			$ 267	$ (23,417)	158,814	(483,670)
Beginning balance (in shares) at Dec. 31, 2022					(5,177,235)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of vested stock options (in shares)				1,147,009
Exercise of vested stock options	27			$ 11		16
Stock-based compensation expense	415					415
Net (Loss) Income	(9,090)						(9,090)
Ending balance (in shares) at Mar. 31, 2023				80,612,159
Ending balance at Mar. 31, 2023	$ (356,654)			$ 278	$ (23,417)	159,245	(492,760)
Ending balance (in shares) at Mar. 31, 2023					(5,177,235)
Beginning balance (in shares) at Dec. 31, 2022	209,613,570	209,613,570	51,247,915
Beginning balance at Dec. 31, 2022		$ 322,748	$ (2,381)
Ending balance (in shares) at Jun. 30, 2023	209,613,570	209,613,570	51,247,915
Ending balance at Jun. 30, 2023		$ 322,748	$ (2,381)
Beginning balance (in shares) at Dec. 31, 2022	74,287,915			79,465,150
Beginning balance at Dec. 31, 2022	$ (348,006)			$ 267	$ (23,417)	158,814	(483,670)
Beginning balance (in shares) at Dec. 31, 2022					(5,177,235)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of vested stock options (in shares)				2,313,011
Exercise of vested stock options	72			$ 23		49
Stock-based compensation expense	866					866
Net (Loss) Income	$ (61,860)						(61,860)
Ending balance (in shares) at Jun. 30, 2023	76,600,926			81,778,161
Ending balance at Jun. 30, 2023	$ (408,928)			$ 290	$ (23,417)	159,729	(545,530)
Ending balance (in shares) at Jun. 30, 2023					(5,177,235)
Beginning balance (in shares) at Mar. 31, 2023		209,613,570	51,247,915
Beginning balance at Mar. 31, 2023		$ 322,748	$ (2,381)
Ending balance (in shares) at Jun. 30, 2023	209,613,570	209,613,570	51,247,915
Ending balance at Jun. 30, 2023		$ 322,748	$ (2,381)
Beginning balance (in shares) at Mar. 31, 2023				80,612,159
Beginning balance at Mar. 31, 2023	$ (356,654)			$ 278	$ (23,417)	159,245	(492,760)
Beginning balance (in shares) at Mar. 31, 2023					(5,177,235)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of vested stock options (in shares)				1,166,002
Exercise of vested stock options	45			$ 12		33
Stock-based compensation expense	451					451
Net (Loss) Income	$ (52,770)						(52,770)
Ending balance (in shares) at Jun. 30, 2023	76,600,926			81,778,161
Ending balance at Jun. 30, 2023	$ (408,928)			$ 290	$ (23,417)	$ 159,729	$ (545,530)
Ending balance (in shares) at Jun. 30, 2023					(5,177,235)

XML 21 R9.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Members' Equity (Unaudited) - Prosper Funding LLC - USD ($) $ in Thousands	Total	Retained Earnings	Prosper Funding LLC	Prosper Funding LLC Retained Earnings	Prosper Funding LLC Member’s Equity
Beginning balance at Dec. 31, 2021	$ (420,168)	$ (554,252)	$ 28,298	$ 16,894	$ 11,404
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (Loss) Income	36,632	36,632	1,445
Ending balance at Mar. 31, 2022	(383,187)	(517,620)	29,743	18,339	11,404
Beginning balance at Dec. 31, 2021	(420,168)	(554,252)	28,298	16,894	11,404
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (Loss) Income	79,297	79,297	3,982	3,982
Ending balance at Jun. 30, 2022	(339,941)	(474,955)	32,280	20,876	11,404
Beginning balance at Mar. 31, 2022	(383,187)	(517,620)	29,743	18,339	11,404
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (Loss) Income	42,665	42,665	2,537
Ending balance at Jun. 30, 2022	(339,941)	(474,955)	32,280	20,876	11,404
Beginning balance at Dec. 31, 2022	(348,006)	(483,670)	26,771	20,417	6,354
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (Loss) Income	(9,090)	(9,090)	257
Ending balance at Mar. 31, 2023	(356,654)	(492,760)	27,028	20,674	6,354
Beginning balance at Dec. 31, 2022	(348,006)	(483,670)	26,771	20,417	6,354
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (Loss) Income	(61,860)	(61,860)	(50)	(50)
Ending balance at Jun. 30, 2023	(408,928)	(545,530)	26,721	20,367	6,354
Beginning balance at Mar. 31, 2023	(356,654)	(492,760)	27,028	20,674	6,354
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (Loss) Income	(52,770)	(52,770)	(307)	(307)
Ending balance at Jun. 30, 2023	$ (408,928)	$ (545,530)	$ 26,721	$ 20,367	$ 6,354

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481372/852-10-55-10

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-12

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(19))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.6-05(4))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(4)(b))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(6))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(7))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 14: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480418/310-10-S99-2

Cash flows from Operating Activities:

XML 22 R10.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Net (Loss) Income

$ (61,860)

$ 79,297

Adjustments to Reconcile Net Loss to Net Cash (Used in) Provided by Operating Activities:

Change in Fair Value of Financial Instruments

16,560

4,326

Depreciation and Amortization

5,636

5,335

Amortization of Operating Lease Right-of-use Asset

1,290

1,884

Gain on Termination of Operating Lease Right-of-use Asset

(88)

Gain on Sale of Borrower Loans

(4,867)

(5,678)

Change in Fair Value of Servicing Rights

6,645

5,362

Stock-Based Compensation Expense

772

799

Change in Fair Value of Convertible Preferred Stock Warrants

27,724

(77,486)

Gain on Forgiveness of PPP Loan

(8,604)

Accrual of payment-in-kind interest on Term Loan

819

Other, Net

276

(43)

Changes in Operating Assets and Liabilities:

Purchase of Loans Held for Sale at Fair Value

(1,098,861)

(1,292,648)

Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value

1,057,828

1,214,053

(1,622)

(1,504)

Prepaid and Other Assets

(1,496)

(1,165)

(1,019)

(702)

3,817

9,687

(10,178)

4,839

Net Cash Used in Operating Activities

902

(635)

(57,634)

(62,971)

Cash Flows from Investing Activities:

Purchase of Borrower Loans Held at Fair Value

(125,796)

(143,785)

Proceeds from Sales and Principal Payments of Borrower Loans Held at Fair Value

94,316

97,780

Purchases of Property and Equipment

(7,502)

(6,697)

Net Cash Used in Investing Activities

(38,982)

(52,702)

Cash Flows from Financing Activities:

Proceeds from Issuance of Notes Held at Fair Value

123,544

144,310

Payments of Notes Held at Fair Value

(93,866)

(97,730)

Proceeds from Warehouse Lines

48,478

64,900

Principal Payments on Warehouse Lines

(21,127)

Payments of debt issuance costs

(1,878)

Proceeds from exercise of stock options

Net Cash Provided by Financing Activities

55,222

111,515

Net Decrease in Cash, Cash Equivalents and Restricted Cash

(41,394)

(4,158)

Cash, Cash Equivalents and Restricted Cash at Beginning of the Period

196,609

235,625

Cash, Cash Equivalents and Restricted Cash at End of the Period

155,215

231,467

Supplemental Disclosure of Cash Flow Information:

Cash Paid for Interest

48,303

25,047

Cash paid for operating leases included in the measurement of lease liabilities

1,665

2,931

Non-Cash Investing Activity- Accrual for Property and Equipment, Net

1,279

1,080

Non-Cash Financing Activity - Forgiveness of PPP Loan

8,604

Reconciliation to Amounts on Consolidated Balance Sheets:

43,830

55,118

Total Cash, Cash Equivalents and Restricted Cash

111,385

^[1]

176,349

$ 155,215

$ 231,467

[1]


	June 30, 2023		December 31, 2022
Assets of consolidated VIEs, included in total assets above:
Restricted Cash	$	20,565	$	11,838
Loans Held for Sale, at Fair Value	517,781		499,765

Prepaid and Other Assets	3,967		3,210
Total assets of consolidated variable interest entities	$	542,313	$	514,813
Liabilities of consolidated VIEs, included in total liabilities above:


Warehouse Lines	$	474,662	$	446,762
Total liabilities of consolidated variable interest entities	$	474,662	$	446,762

XML 23 R11.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Cash Flows (Unaudited) - Prosper Funding LLC - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Cash flows from Operating Activities:

Net (Loss) Income

$ (61,860)

$ 79,297

Adjustments to Reconcile Net (Loss) Income to Net Cash Used in Operating Activities:

Change in Fair Value of Financial Instruments

16,560

4,326

Gain on Sale of Borrower Loans

(4,867)

(5,678)

Change in Fair Value of Servicing Rights

6,645

5,362

Depreciation and Amortization

5,636

5,335

Changes in Operating Assets and Liabilities:

Purchase of Loans Held for Sale at Fair Value

(1,098,861)

(1,292,648)

Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value

1,057,828

1,214,053

3,817

9,687

(10,178)

4,839

Net Cash Used in Operating Activities

902

(635)

(57,634)

(62,971)

Cash Flows from Investing Activities:

Purchase of Borrower Loans Held at Fair Value

(125,796)

(143,785)

Proceeds from Sales and Principal Payments of Borrower Loans , at Fair Value

94,316

97,780

Purchases of Property and Equipment

(7,502)

(6,697)

Net Cash Used in Investing Activities

(38,982)

(52,702)

Cash Flows from Financing Activities:

Proceeds from Issuance of Notes Held at Fair Value

123,544

144,310

Payments of Notes , at Fair Value

93,866

97,730

Net Cash Provided by Financing Activities

55,222

111,515

Net Decrease (Increase) in Cash, Cash Equivalents and Restricted Cash

(41,394)

(4,158)

Cash, Cash Equivalents and Restricted Cash at Beginning of the Period

196,609

235,625

Cash, Cash Equivalents and Restricted Cash at End of the Period

155,215

231,467

Supplemental Disclosure of Cash Flow Information:

Cash Paid for Interest

48,303

25,047

Non-Cash Investing Activity- Accrual for Property and Equipment, Net

1,279

1,080

Reconciliation to Amounts on Consolidated Balance Sheets:

43,830

55,118

Total Cash, Cash Equivalents and Restricted Cash

111,385

^[1]

176,349

155,215

231,467

Cash flows from Operating Activities:

Net (Loss) Income

(50)

3,982

Adjustments to Reconcile Net (Loss) Income to Net Cash Used in Operating Activities:

Change in Fair Value of Financial Instruments

164

(267)

Other Non-Cash Changes in Borrower Loans, Loans Held for Sale and Notes

(39)

Gain on Sale of Borrower Loans

(5,724)

(6,481)

Change in Fair Value of Servicing Rights

5,436

4,578

Depreciation and Amortization

3,082

2,639

Changes in Operating Assets and Liabilities:

Purchase of Loans Held for Sale at Fair Value

(1,098,861)

(1,292,648)

Proceeds from Sales and Principal Payments of Loans Held for Sale at Fair Value

1,098,861

1,292,648

Other Assets

(202)

720

Net Related Party Receivable/Payable

(10,236)

4,796

(1,477)

2,089

Net Cash Used in Operating Activities

467

(7,938)

11,581

Cash Flows from Investing Activities:

Purchase of Borrower Loans Held at Fair Value

(125,796)

(143,785)

Proceeds from Sales and Principal Payments of Borrower Loans , at Fair Value

94,367

97,780

Purchases of Property and Equipment

(3,817)

(3,337)

Net Cash Used in Investing Activities

(35,246)

(49,342)

Cash Flows from Financing Activities:

Proceeds from Issuance of Notes Held at Fair Value

123,544

144,310

Payments of Notes , at Fair Value

93,866

97,730

Net Cash Provided by Financing Activities

29,678

46,580

Net Decrease (Increase) in Cash, Cash Equivalents and Restricted Cash

(13,506)

8,819

Cash, Cash Equivalents and Restricted Cash at Beginning of the Period

97,849

167,876

Cash, Cash Equivalents and Restricted Cash at End of the Period

84,343

176,695

Supplemental Disclosure of Cash Flow Information:

Cash Paid for Interest

23,299

20,078

Non-Cash Investing Activity- Accrual for Property and Equipment, Net

547

924

Reconciliation to Amounts on Consolidated Balance Sheets:

4,655

12,360

Total Cash, Cash Equivalents and Restricted Cash

79,688

164,335

$ 84,343

$ 176,695

[1]


	June 30, 2023		December 31, 2022
Assets of consolidated VIEs, included in total assets above:
Restricted Cash	$	20,565	$	11,838
Loans Held for Sale, at Fair Value	517,781		499,765

Prepaid and Other Assets	3,967		3,210
Total assets of consolidated variable interest entities	$	542,313	$	514,813
Liabilities of consolidated VIEs, included in total liabilities above:


Warehouse Lines	$	474,662	$	446,762
Total liabilities of consolidated variable interest entities	$	474,662	$	446,762

XML 24 R12.htm IDEA: XBRL DOCUMENT

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Jun. 30, 2023
Entity Information [Line Items]
BASIS OF PRESENTATION	Basis of Presentation Prosper Marketplace, Inc. (“PMI” or the “Company”) was incorporated in the state of Delaware on March 22, 2005. Except as the context requires otherwise, as used in these notes to the condensed consolidated financial statements of PMI, “Prosper,” “we,” “us,” and “our” refer to PMI and its wholly-owned subsidiaries, on a consolidated basis. The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and disclosure requirements for interim financial information and the requirements of Article 10 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, 2022. The balance sheet at December 31, 2022 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. PMI did not have any items of other comprehensive income or loss for any of the periods presented in the condensed consolidated financial statements as of and for the six months ended June 30, 2023 and 2022. The preparation of Prosper’s condensed consolidated financial statements and related disclosures in conformity with US GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in Prosper’s financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions. The accompanying interim condensed consolidated financial statements include the accounts of PMI, its wholly-owned subsidiaries and consolidated variable interest entities (“VIEs”). All intercompany balances have been eliminated in consolidation.
Prosper Funding LLC
Entity Information [Line Items]
BASIS OF PRESENTATION	Basis of Presentation Prosper Funding LLC (“PFL”) was formed in the state of Delaware in February 2012 as a limited liability company with Prosper Marketplace, Inc. (“PMI”) as its sole equity member. Except as the context otherwise requires, as used in these Notes to the condensed consolidated financial statements of Prosper Funding LLC, “PFL”, and the “Company” refers to Prosper Funding LLC and its wholly owned subsidiary, Prosper Depositor LLC, a Delaware limited liability company, on a consolidated basis. 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 Article 10 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, 2022. The balance sheet at December 31, 2022 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. PFL did not have any items of other comprehensive income or loss for any of the periods presented in the condensed consolidated financial statements as of and for the six months ended June 30, 2023 and 2022. The preparation of PFL's condensed consolidated financial statements and related disclosures in conformity with US GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in its condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material.

XML 25 R13.htm IDEA: XBRL DOCUMENT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2023
Entity Information [Line Items]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	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, 2022. There have been no changes to these accounting policies during the first six months of 2023. Fair Value Measurements Financial instruments measured at fair value consist principally of Borrower Loans, Loans Held for Sale (Note 4), Servicing Assets (Note 6), Credit Card Derivative (Note 5), Loan Trailing Fee Liabilities (Note 9), Debt (Note 10) and Convertible Preferred Stock Warrant Liability (Note 12). The estimated fair values of other financial instruments, including Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short-term nature. The estimated fair values of the Term Loan and Warehouse Lines (Note 10) do not approximate their carrying values due primarily to differences in the stated and market rates associated with these instruments. Refer to Note 7, Fair Value of Assets and Liabilities, for additional fair value disclosures. Restricted Cash Restricted cash consists primarily of cash deposits, money market funds and short term certificate of deposit accounts held as collateral as required for loan funding and servicing activities, and cash that investors or Prosper have on the marketplace that has not yet been invested in Borrower Loans or disbursed to the investor. Borrower Loans, Loans Held for Sale and Notes Borrower Loans are funded either through the Note Channel or through the Whole Loan Channel. Through the Note Channel, Prosper purchases Borrower Loans from WebBank, then issues Notes and holds the Borrower Loans until maturity. The obligation to repay a series of Notes issued through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans funded and Notes issued through the Note Channel are carried on Prosper’s condensed consolidated balance sheets as assets and liabilities, respectively. Prosper uses Warehouse Lines to purchase Loans Held for Sale that may be subsequently contributed to securitization transactions or sold to investors. Loans Held for Sale are included in “Loans Held for Sale, at Fair Value” on the Consolidated Balance Sheets. See Note 10, Debt for more details on Warehouse Lines. Borrower Loans and Loans Held for Sale are purchased from WebBank. Prosper places Borrower Loans and Loans Held for Sale on non-accrual status when they are 120 days past due. When a loan is placed on non-accrual status, Prosper stops accruing interest and reverses all accrued but unpaid interest as of such date. Additionally, Prosper charges-off Borrower Loans and Loans Held for Sale when they are 120 days past due. The fair value of loans 120 or more days past due generally consists of the expected recovery from debt sales in subsequent periods. Prosper has elected the fair value option for Borrower Loans, Loans Held for Sale and Notes. Changes in fair value of Borrower Loans funded through the Note Channel are largely offset by the changes in fair value of Notes due to the borrower payment-dependent design of the Notes. Changes in fair value of Loans Held for Sale are recorded through Proper's earnings and Prosper collects interest on Loans Held for Sale. Changes in the fair values of Borrower Loans, Loans Held for Sale and Notes are included in Change in Fair Value of Financial Instruments on the accompanying condensed consolidated statements of operations. Prosper primarily uses a discounted cash flow model to estimate the fair value of Borrower Loans, Loans Held for Sale and Notes. The key assumptions used in the valuation include default rates and prepayment rates derived primarily from historical performance, and discount rates based on estimates of the rates of return that investors would require when investing in financial instruments with similar characteristics. Credit Card Derivative The Company evaluated the terms of the Credit Card program agreement with Coastal Community Bank (“Coastal”) and determined that it contained features that met the definition of derivatives under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging. These features are freestanding financial instruments (as defined under ASC 480, Distinguishing Liabilities from Equity), and have been valued separately as derivatives. A right of offset exists between the derivatives, and they are presented net on the accompanying consolidated balance sheets. Changes in the fair value of the Credit Card Derivative, as well as settled transactions from the Credit Card portfolio, are recorded in Change in Fair Value of Financial Instruments on the accompanying Condensed Consolidated Statements of Operations. Refer to Note 5, Credit Card, for additional details on revenues and expenses related to the Credit Card product. Term Loan Prosper entered into a Credit Agreement, which provided for a Term Loan with a third-party financial institution in November 2022, which is more fully described in Note 10. This Term Loan is carried at amortized cost, net of discounts and issuance costs, which are subsequently amortized to Interest Expense on Term Loan over the life of the underlying agreement. Interest Expense on Term Loan is presented as a component of Expenses on the accompanying condensed consolidated statements of operations, except for any portion associated with Term Loan proceeds used to purchase Loans Held for Sale through the Company’s Warehouse Lines, which is presented in Interest Expense on Financial Instruments as a component of Net Interest Income on the accompanying condensed consolidated statement of operations. Leases Management determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are included on the Condensed Consolidated Balance Sheets in Property and Equipment, Net and in Other Liabilities, respectively. For certain leases with original terms of twelve months or less, PMI recognizes the lease expense as incurred and does not record ROU assets and lease liabilities. If a contract contains a lease, management evaluates whether it should be classified as an operating or finance lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of PMI's leases do not provide an implicit rate, management uses an incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The operating lease ROU assets are evaluated for impairment utilizing the same impairment model used for Property and Equipment. Consolidation of Variable Interest Entities The determination of whether to consolidate a VIE in which we have a variable interest requires a significant amount of analysis and judgment regarding whether we are the primary beneficiary of a VIE due to our holding a controlling financial interest in the VIE. A controlling financial interest in a VIE exists if we have both the power to direct the VIE’s activities that most significantly affect the VIE’s economic performance and a potentially significant economic interest in the VIE. The determination of whether an entity is a VIE considers factors, such as (i) whether the entity’s equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support and (ii) whether a holder’s equity investment at risk lacks any of the following characteristics of a controlling financial interest: the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the entity’s success, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the legal entity. Management regularly reviews and reconsiders its previous conclusions regarding the status of an entity as a VIE and whether we are required to consolidate or deconsolidate such VIE in the consolidated financial statements. Recent Accounting Pronouncements Accounting Standards Issued, to be Adopted by the Company in Future Periods In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” which provides optional expedients and exceptions for applying GAAP on contract modifications and hedge accounting, in order to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative referenced rates, such as the Secured Overnight Financing Rate. The optional guidance, which became effective on March 12, 2020, could be applied through December 31, 2022. In December 2022, the FASB issued No 2022-06 extending the sunset date of the relief provided under ASU No. 2020-04 to December 31, 2024. The Company amended its agreements and transitioned to SOFR for contracts that previously referenced LIBOR. The Company continues to evaluate potential future impacts that may result from the discontinuation of LIBOR or other reference rates as well as the accounting provided in this update on our financial condition, results of operations, and cash flows.
Prosper Funding LLC
Entity Information [Line Items]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Summary of Significant Accounting Policies PFL's significant accounting policies are included in Note 2, Summary of Significant Accounting Policies, in PFL’s Annual Report on Form 10-K for the year ended December 31, 2022. There have been no changes to these accounting policies during the first six months of 2023. Fair Value Measurements Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Borrower Loans, Loans Held for Sale, Accounts Receivable, Accounts Payable and Accrued Liabilities, Payable to Investors and Notes. The estimated fair values of Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short-term nature. Refer to Note 7 for additional fair value disclosures. Restricted Cash Restricted Cash consists primarily of cash deposits, money market funds and short-term certificate of deposit accounts held as collateral as required for long term leases, loan funding and servicing activities, and cash that investors have on our marketplace that has not yet been invested in Borrower Loans or disbursed to the investor. Borrower Loans, Loans Held for Sale and Notes With respect to the Note Channel, PFL purchases Borrower Loans from WebBank, then issues Notes and holds the Borrower Loans until maturity. The obligation to repay a series of Notes funded through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans and Notes funded through the Note Channel are carried on PFL’s condensed consolidated balance sheets as assets and liabilities, respectively. PFL places Borrower Loans and Loans Held for Sale on non-accrual status when they are 120 days past due. When a loan is placed on non-accrual status, PFL stops accruing interest and reverses all accrued but unpaid interest as of such date. Additionally, PFL charges-off Borrower Loans and Loans Held for Sale when they are 120 days past due. The fair value of loans 120 days past due generally consists of the expected recovery from debt sales in subsequent periods. Management has elected the fair value option for Borrower Loans, Loans Held for Sale, and Notes. Changes in fair value of Borrower Loans are largely offset by the changes in fair value of Notes due to the borrower payment-dependent design of the Notes. Changes in fair value of Borrower Loans, Loans Held for Sale and Notes are included in “Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net” on the condensed consolidated statements of operations. PFL primarily uses a discounted cash flow model to estimate the fair value of Borrower Loans, Loans Held for Sale and Notes. The key assumptions used in the valuation include default rates and prepayment rates derived primarily from historical performance and discount rates based on estimates of the rates of return that investors would require when investing in financial instruments with similar characteristics. Recent Accounting Pronouncements Accounting Standards Adopted In The Current Period No accounting standards were adopted in the current period for PFL. Accounting Standards Issued, To Be Adopted By PFL In Future Periods No issued and pending accounting standards were identified that are expected to have an impact on PFL.

XML 26 R14.htm IDEA: XBRL DOCUMENT

PROPERTY AND EQUIPMENT, NET

6 Months Ended

Jun. 30, 2023

PROPERTY AND EQUIPMENT, NET

Property and Equipment, Net

Property and Equipment consists of the following at the dates presented (in thousands):


	June 30, 2023		December 31, 2022
Internal-use software and website development costs	$	53,804	$	49,818
Operating lease right-of-use assets	24,449		27,051
Computer equipment	14,281		13,444
Leasehold improvements	6,805		7,157
Office equipment and furniture	2,928		2,810
Assets not yet placed in service	7,293		5,877
Property and equipment	109,560		106,157
Less: Accumulated depreciation and amortization	(69,908)		(67,343)
Total Property and Equipment, Net	$	39,652	$	38,814

PROPERTY AND EQUIPMENT, NET

Property and Equipment, Net

Property and equipment consist of the following as of the dates presented (in thousands):


	June 30, 2023		December 31, 2022
Internal-use software and web site development costs	$	40,864	$	37,428
Less accumulated depreciation and amortization	(29,891)		(27,424)
Total property and equipment, net	$	10,973	$	10,004

XML 27 R15.htm IDEA: XBRL DOCUMENT

BORROWER LOANS, LOANS HELD FOR SALE AND NOTES, AT FAIR VALUE

6 Months Ended

Jun. 30, 2023

BORROWER LOANS, LOANS HELD FOR SALE AND NOTES, AT FAIR VALUE

Borrower Loans, Loans Held for Sale and Notes, at Fair Value


	Borrower Loans				Loans Held for Sale				Notes
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Aggregate principal balance and interest outstanding	$	349,738	$	333,294	$	540,211	$	512,076	$	351,442	$	336,555
Fair value adjustments	(15,479)		(12,652)		(22,430)		(12,311)		(20,695)		(17,851)
Fair value	$	334,259	$	320,642	$	517,781	$	499,765	$	330,747	$	318,704

Borrower Loans

Loans Held for Sale

BORROWER LOANS, LOANS HELD FOR SALE AND NOTES, AT FAIR VALUE

Borrower Loans and Notes, at Fair Value

The aggregate principal balances outstanding and fair values of Borrower Loans and Notes as of June 30, 2023 and December 31, 2022, are presented in the following table (in thousands):


	Borrower Loans				Notes
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Aggregate principal balance outstanding and interest outstanding	$	349,738	$	333,294	$	351,442	$	336,555
Fair value adjustments	(15,479)		(12,652)		(20,695)		(17,851)
Fair value	$	334,259	$	320,642	$	330,747	$	318,704

As of June 30, 2023, outstanding Borrower Loans had original terms to maturity of 24, 36, 48 or 60 months, had monthly payments with fixed interest rates ranging from 5.46% to 33.00% and had various original maturity dates through June 2028. As of December 31, 2022, outstanding Borrower Loans had original maturities of either 24, 36, 48 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 33.00%, and had various original maturity dates through December 2027.

As of June 30, 2023, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $3.2 million and a fair value of $0.4 million. As of December 31, 2022, Borrower Loans that were 90 days or more delinquent had an aggregate principal amount of $2.7 million and a fair value of $0.3 million. PFL places loans on non-accrual status when they are over 120 days past due. As of June 30, 2023 and December 31, 2022, Borrower Loans in non-accrual status had a fair value of $0.3 million and $0.3 million, respectively.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

XML 28 R16.htm IDEA: XBRL DOCUMENT

CREDIT CARD	6 Months Ended
CREDIT CARD	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
CREDIT CARD	Credit CardFor the three months ended June 30, 2023 and 2022, the Company recognized $2.7 million and $3.0 million, respectively, of unrealized gains from fair value changes on the Credit Card Derivative. For the six months ended June 30, 2023 and 2022, the Company recognized $8.8 million and $3.9 million, respectively, of unrealized gains from fair value changes on the Credit Card Derivative. Changes from settled transactions underlying the Credit Card Derivative, including income from debt sales on charged off balances, were gains of $0.5 million and $0.4 million for the three months ended June 30, 2023 and 2022, respectively, and a loss of $1.0 million and a gain of $0.6 million, for the six months ended June 30, 2023 and 2022, respectively. These unrealized and settled gains and losses are included in Changes in Fair Value of Financial Instruments on the accompanying condensed consolidated statements of operations. The Company records revenue from various fees generated from the Credit Card program, including interchange fees, annual fees and late fees, net of a portion of the interchange fees that must be remitted to Coastal. These fees are included in Transaction Fees, Net on the accompanying condensed consolidated statements of operations. For the three months ended June 30, 2023 and 2022, these fees totaled $4.2 million and $1.1 million, respectively, and for the six months ended June 30, 2023 and 2022, these fees totaled $7.6 million and $1.5 million, respectively. Under the program agreement, Prosper is responsible for servicing the entire underlying Credit Card portfolio. Coastal pays the Company a 1% per annum servicing fee on the daily outstanding balance of receivables designated as Coastal Allocations. To the extent these servicing fees do not exceed the market servicing rate a market participant would require to service the entire Credit Card portfolio, the Company records a servicing obligation liability and measures it at fair value through the servicing period. The net balance of this servicing obligation liability is included in Other Liabilities on the accompanying condensed consolidated balance sheets (Note 9). Changes in the fair value of the servicing obligation liability are recorded in Servicing Fees, Net on the accompanying condensed consolidated statements of operations, and totaled $1.1 million and $1.1 million for the three months ended June 30, 2023 and 2022, respectively, and $2.0 million and $1.2 million for the six months ended June 30, 2023 and 2022, respectively.

XML 29 R17.htm IDEA: XBRL DOCUMENT

SERVICING ASSETS	6 Months Ended
SERVICING ASSETS	Jun. 30, 2023
Entity Information [Line Items]
SERVICING ASSETS	Servicing Assets Prosper accounts for Servicing Assets at their estimated fair values with changes in fair values recorded in Servicing Fees, Net on the accompanying condensed consolidated statement of operations. The initial asset or liability is recognized when Prosper sells Borrower Loans to unrelated third-party buyers through the Whole Loan Channel and the servicing rights are retained. The Servicing Assets are measured at fair value throughout the servicing period. The Company recognized a loss on the sale of such Borrower Loans in the amount of $2.0 million and a gain in the amount of $3.4 million for the three months ended June 30, 2023 and 2022, respectively, recorded in (Loss) Gain on Sale of Borrower Loans on the condensed consolidated statements of operations. The Company recognized a loss on the sale of such Borrower Loans in the amount of $3.4 million and a gain in the amount of $5.0 million for the six months ended June 30, 2023 and 2022, respectively, recorded in (Loss) Gain on Sale of Borrower Loans on the condensed consolidated statements of operations. As of June 30, 2023, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $3.2 billion, original terms to maturity of 24, 36, 48 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 33.00%, and various original maturity dates through June 2028. As of December 31, 2022, Borrower Loans that were sold but for which Prosper retained servicing rights had a total outstanding principal balance of $3.2 billion, original terms to maturity of either 24, 36, 48 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 33.00%, and various original maturity dates through December 2027. Contractually-specified servicing fees and ancillary fees totaling $7.7 million and $6.5 million for the three months ended June 30, 2023 and 2022, respectively, and $15.9 million and $13.2 million for the six months ended June 30, 2023 and 2022, respectively, are included in the condensed consolidated statements of operations in Servicing Fees, Net. Fair Value Valuation Method Prosper uses a discounted cash flow valuation methodology generally consisting of developing an estimate of future cash flows that are expected to occur over the life of a financial instrument and then discounts those cash flows at a rate of return that results in the fair value amount. Significant unobservable inputs presented in the table within Note 7 below are those that Prosper considers significant to the estimated fair values of the Level 3 Servicing Assets. The following is a description of the significant unobservable inputs provided in the table. Market Servicing Rate Prosper estimates adequate market servicing rates that would fairly compensate a substitute servicer should one be required, which includes the profit that would be demanded in the marketplace. This rate is stated as a fixed percentage of outstanding principal balance on a per annum basis. With the assistance of a valuation specialist, Prosper estimates these market servicing rates based on observable market rates for other loan types in the industry and bids from subservicing providers, adjusted for the unique loan attributes that are present in the specific loans that Prosper sells and services and information from backup service providers. Discount Rate The discount rate is a rate of return used to discount future expected cash flows to arrive at a present value, which represents the fair value of the loan servicing rights. We use a range of discount rates for the Servicing Assets based on comparable observed valuations of similar assets and publicly available disclosures related to servicing valuations, with comparability adjustments made to account for differences with Prosper’s servicing assets. Default Rate The default rate presented in Note 7 is an annualized, average estimate considering all Borrower Loan categories (i.e., risk ratings and duration), and represents an aggregate of conditional default rate curves for each credit grade or Borrower Loan category. Each point on a particular Borrower Loan category’s curve represents the percentage of principal expected to default per period based on the term and age of the underlying Borrower Loans. The assumption regarding defaults directly reduces servicing revenues because the amount of servicing revenues received is based on the amount collected each period. Prepayment Rate The prepayment rate presented in Note 7 is an annualized, average estimate considering all Borrower Loan categories (i.e., risk ratings and duration), and represents an aggregate of conditional prepayment rate curves for each credit grade or Borrower Loan category. Each point on a particular Borrower Loan category’s curve represents the percentage of principal expected to prepay per period based on the term and age of the underlying Borrower Loans. Prepayments reduce servicing revenues as they shorten the period over which we expect to collect fees on the Borrower Loans, which is used to project future servicing revenues.
Prosper Funding LLC
Entity Information [Line Items]
SERVICING ASSETS	Servicing Assets PFL accounts for Servicing Assets at their estimated fair values with changes in fair values recorded in Servicing Fees, Net on the condensed consolidated statements of operations. The initial asset or liability is recognized when PFL sells Borrower Loans to unrelated third-party buyers through the Whole Loan Channel and the servicing rights are retained. PFL recognized a loss on the sale of such Borrower Loans in the amount of $1.7 million and a gain in the amount of $3.8 million for the three months ended June 30, 2023 and 2022, respectively, recorded in (Loss) Gain on Sale of Borrower Loans on the condensed consolidated statements of operations. PFL recognized a loss on the sale of such Borrower Loans in the amount of $2.3 million and a gain in the amount of $6.0 for the six months ended June 30, 2023 and 2022, respectively, recorded in (Loss) Gain on Sale of Borrower Loans on the condensed consolidated statements of operations. As of June 30, 2023, Borrower Loans that were sold, but for which PFL retained servicing rights, had a total outstanding principal balance of $3.7 billion, original terms of 24, 36, 48 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 33.00%, and various original maturity dates through June 2028. As of December 31, 2022, Borrower Loans that were sold, but for which PFL retained servicing rights, had a total outstanding principal balance of $3.7 billion, original terms of either 24, 36, 48 or 60 months, monthly payments with fixed interest rates ranging from 5.31% to 33.00%, and various original maturity dates through December 2027. Contractually-specified servicing fees and ancillary fees totaled $10.1 million and $7.5 million for the three months ended June 30, 2023 and 2022, respectively, and $20.3 million and $15.1 million for the six months ended June 30, 2023 and 2022, and are included in Servicing Fees, Net on the condensed consolidated statements of operations. Fair Value Valuation Method PFL uses a discounted cash flow valuation methodology generally consisting of developing an estimate of future cash flows that are expected to occur over the life of a financial instrument and then discounting those cash flows at a rate of return that results in the fair value amount. Significant unobservable inputs presented in the table within Note 7 are those that PFL considers significant to the estimated fair values of the Level 3 Servicing Assets. The following is a description of the significant unobservable inputs provided in the table. Market Servicing Rate PFL estimates adequate market servicing rates that would fairly compensate a substitute servicer should one be required, which includes the profit that would be demanded in the marketplace. This rate is stated as a fixed percentage of outstanding principal balance on a per annum basis. With the assistance of a valuation specialist, PFL estimates these market servicing rates based on observable market rates for other loan types in the industry and bids from sub-servicing providers, adjusted for the unique loan attributes that are present in the specific loans that PFL sells and services and information from backup service providers. Discount Rate The discount rate is a rate of return used to discount future expected cash flows to arrive at a present value, which represents the fair value of the loan servicing rights. Management used a range of discount rates for the Servicing Assets based on comparable observed valuations of similar assets and publicly available disclosures related to servicing valuations, with comparability adjustments made to account for differences with PFL’s Servicing Assets. Default Rate The default rate presented in Note 7 is an annualized, average estimate considering all Borrower Loan categories (i.e., risk ratings and duration), and represents an aggregate of conditional default rate curves for each credit grade or Borrower Loan category. Each point on a particular Borrower Loan category’s curve represents the percentage of principal expected to default per period based on the term and age of the underlying Borrower Loans. The assumption regarding defaults directly reduces servicing revenues because the amount of servicing revenues received is based on the amount collected each period. Prepayment Rate The prepayment rate presented in Note 7 is an annualized, average estimate considering all Borrower Loan categories (i.e., risk ratings and duration), and represents an aggregate of conditional prepayment rate curves for each credit grade or Borrower Loan category. Each point on a particular Borrower Loan category’s curve represents the percentage of principal expected to prepay per period based on the term and age of the underlying Borrower Loans. Prepayments reduce servicing revenues as they shorten the period over which PFL expects to collect fees on the Borrower Loans, which is used to project future servicing revenues.

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481420/860-30-50-1A

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)(7)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-4

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(11))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)(4)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)(5)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//860/tableOfContent

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (cc)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)(5)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4D
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4D

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481420/860-30-50-1A

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481420/860-30-50-7

Reference 19: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-2

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-4

XML 30 R18.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES

6 Months Ended

Jun. 30, 2023

FAIR VALUE OF ASSETS AND LIABILITIES

Fair Value of Assets and Liabilities

Assets and liabilities carried at fair value on the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value:

Level 1 — The valuation is based on quoted prices in active markets for identical instruments.

Financial Instruments Recorded at Fair Value

The Convertible Preferred Stock Warrant Liability is valued using a Black-Scholes option pricing model. Refer to Note 12 for further details.

The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands):


June 30, 2023	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Loans Held for Sale at Fair Value	$	—	$	—	$	517,781	$	517,781
Borrower Loans, at Fair Value	—		—		334,259		334,259
SOFR rate swaption (Note 10)	—		707		—		707
Servicing Assets	—		—		12,833		12,833
Credit Card Derivative (Note 5)	—		—		19,542		19,542
Total Assets	$	—	$	707	$	884,415	$	885,122
Liabilities:
Notes, at Fair Value	$	—	$	—	$	330,747	$	330,747

Convertible Preferred Stock Warrant Liability	—		—		194,070		194,070
Loan Trailing Fee Liability (Note 9)	—		—		3,294		3,294
Credit Card servicing obligation liability (Note 5)	—		—		5,769		5,769
Total Liabilities	$	—	$	—	$	533,880	$	533,880


December 31, 2022	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Loans Held for Sale at Fair Value	$	—	$	—	$	499,765	$	499,765
Borrower Loans, at Fair Value	—		—		320,642		320,642
LIBOR rate swaption (Note 10)	—		1,289		—		1,289
Servicing Assets	—		—		12,562		12,562
Credit Card Derivative (Note 5)	$	—	$	—	10,782		10,782
Total Assets	$	—	$	1,289	$	843,751	$	845,040
Liabilities:
Notes, at Fair Value	$	—	$	—	$	318,704	$	318,704

Convertible Preferred Stock Warrant Liability	—		—		166,346		166,346
Loan Trailing Fee Liability (Note 9)	—		—		3,290		3,290
Credit Card servicing obligation liability (Note 5)	$	—	$	—	3,720		3,720
Total Liabilities	$	—	$	—	$	492,060	$	492,060

Significant Unobservable Inputs


	Range
Borrower Loans, Loans Held for Sale and Notes:	June 30, 2023	December 31, 2022
Discount rate	6.2% - 14.0%	5.4% - 13.2%
Default rate	1.6% - 18.7%	1.8% - 18.7%


	Range
Servicing Assets:	June 30, 2023	December 31, 2022
Discount rate	15.0% - 25.0%	15.0% - 25.0%
Default rate	1.8% - 18.9%	2.0% - 19.3%
Prepayment rate	12.2% - 29.6%	14.2% - 28.0%
Market servicing rate (1) (2)	0.648% - 0.842%	0.648% - 0.842%


	Range
Loan Trailing Fee Liability:	June 30, 2023	December 31, 2022
Discount rate	15.0% - 25.0%	15.0% - 25.0%
Default rate	1.8% - 18.9%	2.0% - 19.3%
Prepayment rate	12.2% - 29.6%	14.2% - 28.0%

At June 30, 2023 and December 31, 2022, the discounted cash flow methodology used to estimate the Notes fair values used the same projected cash flows as the related Borrower Loans.

Changes in Level 3 Fair Value Assets and Liabilities on a Recurring Basis

The following tables present additional information about Level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis (in thousands):


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held For Sale		Notes		Total
Balance at January 1, 2023	$	320,642	$	499,765	$	(318,704)	$	501,703
Purchase of Borrower Loans/Issuance of Notes	125,796		1,098,861		(123,543)		1,101,114
Principal repayments	(92,362)		(129,255)		93,867		(127,750)
Borrower Loans sold to third parties	(1,954)		(928,574)		—		(930,528)
Other changes	196		575		(262)		509
Change in fair value	(18,059)		(23,591)		17,895		(23,755)

Balance at June 30, 2023	$	334,259	$	517,781	$	(330,747)	$	521,293


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at January 1, 2022	$	267,626	$	243,170	$	(265,985)	$	244,811
Purchase of Borrower Loans/Issuance of Notes	143,785		1,292,648		(144,310)		1,292,123
Principal repayments	(96,956)		(83,180)		97,729		(82,407)
Borrower Loans sold to third parties	(824)		(1,130,873)		—		(1,131,697)
Other changes	153		359		(112)		400
Change in fair value	(11,891)		(9,431)		12,157		(9,165)

Balance at June 30, 2022	$	301,893	$	312,693	$	(300,521)	$	314,065


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held For Sale		Notes		Total
Balance at April 1, 2023	$	330,407	$	553,095	$	(327,686)	$	555,816
Purchase of Borrower Loans/Issuance of Notes	61,887		529,059		(60,901)		530,045
Principal repayments	(46,875)		(65,754)		47,583		(65,046)
Borrower Loans sold to third parties	(1,001)		(484,305)		—		(485,306)
Other changes	91		(188)		(209)		(306)
Change in fair value	(10,250)		(14,126)		10,466		(13,910)

Balance at June 30, 2023	$	334,259	$	517,781	$	(330,747)	$	521,293


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held For Sale		Notes		Total
Balance at April 1, 2022	$	281,624	$	284,123	$	(280,674)	$	285,073
Purchase of Borrower Loans/Issuance of Notes	76,891		803,326		(76,581)		803,636
Principal repayments	(48,746)		(43,734)		48,977		(43,503)
Borrower Loans sold to third parties	(489)		(724,595)		—		(725,084)
Other changes	90		79		(159)		10
Change in fair value	(7,477)		(6,506)		7,916		(6,067)

Balance at June 30, 2022	$	301,893	$	312,693	$	(300,521)	$	314,065


	Servicing Assets
Balance at January 1, 2023	$	12,562
Additions	4,867
Less: Changes in fair value	(4,596)
Balance at June 30, 2023	$	12,833


	Servicing Assets
Balance at January 1, 2022	$	8,761
Additions	5,677
Less: Changes in fair value	(4,115)
Balance at June 30, 2022	$	10,323


	Servicing Assets
Balance at April 1, 2023	$	12,716
Additions	2,554
Less: Changes in fair value	(2,437)
Balance at June 30, 2023	$	12,833


	Servicing Assets
Balance at April 1, 2022	$	8,680
Additions	3,696
Less: Changes in fair value	(2,053)
Balance at June 30, 2022	$	10,323


	Credit Card Derivative
Balance at January 1, 2023	$	10,782
Changes in fair value	8,760
Losses from settled transactions	(1,019)
Add: Net payments made	1,019
Balance at June 30, 2023	$	19,542


	Credit Card Derivative
Balance at January 1, 2022	$	7
Changes in fair value	3,863
Gains from settled transactions	577
Add: Net payments made	414
Balance at June 30, 2022	$	4,861


	Credit Card Derivative
Balance at April 1, 2023	$	16,883
Changes in fair value	2,659
Gains from settled transactions	454
Less: Net payments received	(454)
Balance at June 30, 2023	$	19,542


	Credit Card Derivative
Balance at April 1, 2022	$	885
Changes in fair value	2,985
Gains from settled transactions	351
Add: Net payments made	640
Balance at June 30, 2022	$	4,861


	Credit Card Servicing Obligation Liability





Fair Value at January 1, 2023	$	3,720
Change in fair value	2,049
Fair Value at June 30, 2023	$	5,769


	Credit Card Servicing Obligation Liability





Fair Value at January 1, 2022	$	—
Change in fair value	1,246
Fair Value at June 30, 2022	$	1,246


	Credit Card Servicing Obligation Liability





Fair Value at April 1, 2023	$	4,626
Change in fair value	1,143
Fair Value at June 30, 2023	$	5,769


	Credit Card Servicing Obligation Liability





Fair Value at April 1, 2022	$	188
Change in fair value	1,058
Fair Value at June 30, 2022	$	1,246


	Convertible Preferred Stock Warrant Liability
Balance as of January 1, 2023	$	166,346

Change in fair value	27,724
Balance as of June 30, 2023	$	194,070


	Convertible Preferred Stock Warrant Liability
Balance as of January 1, 2022	$	250,941

Change in fair value	(77,486)
Balance as of June 30, 2022	$	173,455


	Convertible Preferred Stock Warrant Liability
Balance as of April 1, 2023	$	162,081

Change in fair value	31,989
Balance as of June 30, 2023	$	194,070


	Convertible Preferred Stock Warrant Liability
Balance as of April 1, 2022	$	217,530

Change in fair value	(44,075)
Balance as of June 30, 2022	$	173,455

Loan Trailing Fee


	Loan Trailing Fee Liability
Balance at January 1, 2023	$	3,290
Issuances	1,132
Cash Payment of Loan Trailing Fee	(1,406)
Change in Fair Value	278
Balance at June 30, 2023	$	3,294


	Loan Trailing Fee Liability
Balance at January 1, 2022	$	2,161
Issuances	1,322
Cash Payment of Loan Trailing Fee	(1,010)
Change in Fair Value	101
Balance at June 30, 2022	$	2,574


	Loan Trailing Fee Liability
Balance at April 1, 2023	$	3,308
Issuances	543
Cash Payment of Loan Trailing Fee	(698)
Change in Fair Value	141
Balance at June 30, 2023	$	3,294


	Loan Trailing Fee Liability
Balance at April 1, 2022	$	2,194
Issuances	820
Cash Payment of Loan Trailing Fee	(500)
Change in Fair Value	60
Balance at June 30, 2022	$	2,574

Significant Recurring Level 3 Fair Value Input Sensitivity


Borrower Loans and Loans Held for Sale	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	852,040		$	820,407
Weighted-average discount rate	8.29		%	6.72		%
Weighted-average default rate	9.83		%	9.31		%

Fair value resulting from:
100 basis point increase in discount rate	$	843,644		$	812,061
200 basis point increase in discount rate	$	835,457		$	803,927
Fair value resulting from:
100 basis point decrease in discount rate	$	860,653		$	828,975
200 basis point decrease in discount rate	$	869,490		$	837,773

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	842,390		$	810,657
Applying a 1.2 multiplier to default rate	$	832,812		$	800,989
Fair value resulting from:
Applying a 0.9 multiplier to default rate	$	861,763		$	830,238
Applying a 0.8 multiplier to default rate	$	871,566		$	840,156


Notes	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	330,747		$	318,704
Weighted-average discount rate	8.31		%	6.87		%
Weighted-average default rate	11.69		%	11.36		%

Fair value resulting from:
100 basis point increase in discount rate	$	327,482		$	315,456
200 basis point increase in discount rate	$	324,299		$	312,291
Fair value resulting from:
100 basis point decrease in discount rate	$	334,095		$	322,037
200 basis point decrease in discount rate	$	337,532		$	325,461

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	326,971		$	314,892
Applying a 1.2 multiplier to default rate	$	323,223		$	311,112
Fair value resulting from:
Applying a 0.9 multiplier to default rate	$	334,551		$	322,547
Applying a 0.8 multiplier to default rate	$	338,387		$	326,425


Servicing Assets	June 30, 2023			December 31, 2022
Fair value, using the following assumptions	$	12,833		$	12,562
Weighted-average market servicing rate	0.65		%	0.65		%
Weighted-average prepayment rate	18.60		%	18.47		%
Weighted-average default rate	12.89		%	13.38		%

Fair value resulting from:
Market servicing rate increase of 0.025%	$	11,986		$	11,708
Market servicing rate decrease of 0.025%	$	13,679		$	13,415

Fair value resulting from:
Applying a 1.1 multiplier to prepayment rate	$	12,552		$	12,286
Applying a 0.9 multiplier to prepayment rate	$	13,118		$	12,842

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	12,598		$	12,305
Applying a 0.9 multiplier to default rate	$	13,069		$	12,820


Credit Card Derivative	June 30, 2023			December 31, 2022
Fair value, based on the following notional amount and rate assumptions:	$	19,542		$	10,782
Prosper Allocations outstanding	159,956			102,392
Discount rate on Prosper Allocations	24.46		%	26.23		%
Discount rate on Coastal Program Fee	8.60		%	9.26		%
Prepayment rate applied to Credit Card portfolio	9.19		%	10.08		%
Default rate applied to Credit Card portfolio	15.17		%	13.34		%

Fair value resulting from:
100 basis point increase in both discount rates	$	19,339		$	10,699
200 basis point increase in both discount rates	$	19,141		$	10,618
Fair value resulting from:
100 basis point decrease in both discount rates	$	19,749		$	10,866
200 basis point decrease in both discount rates	$	19,961		$	10,951

Fair value resulting from:
Applying a 1.1 multiplier to prepayment rate	$	19,259		$	10,625
Applying a 0.9 multiplier to prepayment rate	$	19,829		$	10,942

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	15,048		$	8,001
Applying a 0.9 multiplier to default rate	$	24,175		$	13,641


Credit Card servicing obligation liability:	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	5,769			3,720
Discount rate on Credit Card portfolio servicing obligation	8.60		%	9.26		%

Prepayment rate applied to Credit Card portfolio	9.19		%	10.08		%
Default rate applied to Credit Card portfolio	15.17		%	13.34		%
Market servicing rate	2.00		%	2.00		%

Fair value resulting from:
Market servicing rate increase of 0.10%	$	6,078		$	3,919
Market servicing rate decrease of 0.10%	$	5,461		$	3,521




Fair value resulting from:
Applying a 1.1 multiplier to prepayment rate	$	5,689		$	3,662
Applying a 0.9 multiplier to prepayment rate	$	5,851		$	3,779

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	5,619		$	3,636
Applying a 0.9 multiplier to default rate	$	5,924		$	3,806

Assets and Liabilities Not Recorded at Fair Value

The following table presents the fair value hierarchy for assets, and liabilities not recorded at fair value (in thousands):


June 30, 2023	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Cash and Cash Equivalents	$	43,830	$	43,830	$	—	$	—	$	43,830
Restricted Cash - Cash and Cash Equivalents	108,358		108,358		—		—		108,358
Restricted Cash - Certificates of Deposit	3,027		—		3,027		—		3,027
Accounts Receivable	5,084		—		5,084		—		5,084
Total Assets	$	160,299	$	152,188	$	8,111	$	—	$	160,299
Liabilities:
Accounts Payable and Accrued Liabilities	$	41,283	$	—	$	41,283	$	—	$	41,283
Payable to Investors	75,134		—		75,134		—		75,134

Warehouse Lines	474,662		—		475,008		—		475,008

Term Loan (Note 10)	74,293		—		76,978		—		76,978
Total Liabilities	$	665,372	$	—	$	668,403	$	—	$	668,403


December 31, 2022	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Cash and Cash Equivalents	$	83,446	$	83,446	$	—	$	—	$	83,446
Restricted Cash - Cash and Cash Equivalents	108,284		108,284		—		—		108,284
Restricted Cash - Certificates of Deposit	4,879		—		4,879		—		4,879
Accounts Receivable	3,462		—		3,462		—		3,462
Total Assets	$	200,071	$	191,730	$	8,341	$	—	$	200,071
Liabilities:
Accounts Payable and Accrued Liabilities	$	37,254	$	—	$	37,254	$	—	$	37,254
Payable to Investors	85,312		—		85,312		—		85,312
Warehouse Lines	446,762		—		444,329		—		444,329
Term Loan (Note 10)	73,407		—		76,191		—		76,191
Total Liabilities	$	642,735	$	—	$	643,086	$	—	$	643,086

FAIR VALUE OF ASSETS AND LIABILITIES

Fair Value of Assets and Liabilities

Assets and liabilities carried at fair value on the balance sheets are classified among three levels based on the observability of the inputs used to determine fair value:

Level 1 — The valuation is based on quoted prices in active markets for identical instruments.

Financial Instruments Recorded at Fair Value

The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands):


June 30, 2023	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Borrower Loans, at Fair Value	$	—	$	—	$	334,259	$	334,259
Servicing Assets	—		—		15,148		15,148
Total Assets	$	—	$	—	$	349,407	$	349,407
Liabilities:
Notes, at Fair Value	$	—	$	—	$	330,747	$	330,747

Loan Trailing Fee Liability	—		—		3,294		3,294
Total Liabilities	$	—	$	—	$	334,041	$	334,041


December 31, 2022	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Borrower Loans, at Fair Value	$	—	$	—	$	320,642	$	320,642
Servicing Assets	—		—		14,860		14,860
Total Assets	$	—	$	—	$	335,502	$	335,502
Liabilities:
Notes, at Fair Value	$	—	$	—	$	318,704	$	318,704

Loan Trailing Fee Liability	—		—		3,290		3,290
Total Liabilities	$	—	$	—	$	321,994	$	321,994

Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs used for PFL’s Level 3 fair value measurements at the dates presented:


	Range
Borrower Loans and Notes	June 30, 2023	December 31, 2022
Discount rate	6.9% - 13.7%	5.6% - 12.9%
Default rate	1.8% - 18.7%	1.8% - 18.2%


	Range
Servicing Assets	June 30, 2023	December 31, 2022
Discount rate	15.0% - 25.0%	15.0% - 25.0%
Default rate	1.6% - 18.9%	2.0% - 19.3%
Prepayment rate	12.2% - 29.6%	14.2% - 28.0%
Market servicing rate (1) (2)	0.648% - 0.842%	0.648% - 0.842%


	Range
Loan Trailing Fee Liability	June 30, 2023	December 31, 2022
Discount rate	15.0% - 25.0%	15.0% - 25.0%
Default rate	1.6% - 18.9%	2.0% - 19.3%
Prepayment rate	12.2% - 29.6%	14.2% - 28.0%

Changes in Level 3 Fair Value Assets and Liabilities on a Recurring Basis

The following tables present additional information about Level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis (in thousands):


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at January 1, 2023	$	320,642	$	—	$	(318,704)	$	1,938
Originations	125,796		1,098,861		(123,543)		1,101,114
Principal repayments	(92,362)		—		93,867		1,505
Borrower Loans sold to third parties	(1,954)		(1,098,861)		—		(1,100,815)
Other changes	196		—		(262)		(66)
Change in fair value	(18,059)		—		17,895		(164)

Balance at June 30, 2023	$	334,259	$	—	$	(330,747)	$	3,512


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at January 1, 2022	$	267,626	$	—	$	(265,985)	$	1,641
Originations	143,785		1,292,648		(144,310)		1,292,123
Principal repayments	(96,956)		—		97,729		773
Borrower Loans sold to third parties	(824)		(1,292,648)		—		(1,293,472)
Other changes	153		—		(112)		41
Change in fair value	(11,891)		—		12,157		266
Balance at June 30, 2022	$	301,893	$	—	$	(300,521)	$	1,372


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at April 1, 2023	$	330,407	$	—	$	(327,686)	$	2,721
Originations	61,887		529,059		(60,901)		530,045
Principal repayments	(46,875)		—		47,583		708
Borrower Loans sold to third parties	(1,001)		(529,059)		—		(530,060)
Other changes	91		—		(209)		(118)
Change in fair value	(10,250)		—		10,466		216

Balance at June 30, 2023	$	334,259	$	—	$	(330,747)	$	3,512


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at April 1, 2022	$	281,624	$	—	$	(280,674)	$	950
Originations	76,891		803,326		(76,581)		803,636
Principal repayments	(48,746)		—		48,977		231
Borrower Loans sold to third parties	(489)		(803,326)		—		(803,815)
Other changes	90		—		(159)		(69)
Change in fair value	(7,477)		—		7,916		439
Balance at June 30, 2022	$	301,893	$	—	$	(300,521)	$	1,372

The following tables present additional information about Level 3 Servicing Assets recorded at fair value (in thousands):


	Servicing Assets
Balance as of January 1, 2023	$	14,860
Additions	5,724
Less: Changes in fair value	(5,436)
Balance as of June 30, 2023	$	15,148


	Servicing Assets
Balance as of January 1, 2022	$	9,796
Additions	6,480
Less: Changes in fair value	(4,577)
Balance as of June 30, 2022	$	11,699


	Servicing Assets
Balance as of April 1, 2023	$	15,249
Additions	2,785
Less: Changes in fair value	(2,886)
Balance as of June 30, 2023	$	15,148


	Servicing Assets
Balance as of April 1, 2022	$	9,910
Additions	4,090
Less: Changes in fair value	(2,301)
Balance as of June 30, 2022	$	11,699

Loan Trailing Fee Liability

The following tables present additional information about Level 3 Loan Trailing Fee Liability measured at fair value on a recurring basis (in thousands):


	Loan Trailing Fee Liability
Balance as of January 1, 2023	$	3,290
Issuances	1,132
Cash payment of Loan Trailing Fee	(1,406)
Change in fair value	278
Balance as of June 30, 2023	$	3,294


	Loan Trailing Fee Liability
Balance as of January 1, 2022	$	2,161
Issuances	1,322
Cash payment of Loan Trailing Fee	(1,010)
Change in fair value	101
Balance as of June 30, 2022	$	2,574


	Loan Trailing Fee Liability
Balance as of April 1, 2023	3,308
Issuances	543
Cash payment of Loan Trailing Fee	(698)
Change in fair value	141
Balance as of June 30, 2023	$	3,294


	Loan Trailing Fee Liability
Balance as of April 1, 2022	2,194
Issuances	820
Cash payment of Loan Trailing Fee	(500)
Change in fair value	60
Balance as of June 30, 2022	$	2,574

Significant Recurring Level 3 Fair Value Asset and Liability Input Sensitivity


Borrower Loans:	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	334,259		$	320,642
Weighted-average discount rate	8.31		%	6.87		%
Weighted-average default rate	11.69		%	11.36		%

Fair value resulting from:
100 basis point increase in discount rate	$	330,965		$	317,380
200 basis point increase in discount rate	$	327,753		$	314,201
Fair value resulting from:
100 basis point decrease in discount rate	$	337,638		$	323,991
200 basis point decrease in discount rate	$	341,104		$	327,429

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	330,473		$	316,832
Applying a 1.2 multiplier to default rate	$	326,716		$	313,053
Fair value resulting from:
Applying a 0.9 multiplier to default rate	$	338,073		$	324,484
Applying a 0.8 multiplier to default rate	$	341,919		$	328,361


Notes	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	330,747		$	318,704
Weighted-average discount rate	8.31		%	6.87		%
Weighted-average default rate	11.69		%	11.36		%

Fair value resulting from:
100 basis point increase in discount rate	$	327,482		$	315,456
200 basis point increase in discount rate	$	324,299		$	312,291
Fair value resulting from:
100 basis point decrease in discount rate	$	334,095		$	322,037
200 basis point decrease in discount rate	$	337,532		$	325,461

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	326,971		$	314,892
Applying a 1.2 multiplier to default rate	$	323,223		$	311,112
Fair value resulting from:
Applying a 0.9 multiplier to default rate	$	334,551		$	322,547
Applying a 0.8 multiplier to default rate	$	338,387		$	326,425


Servicing Assets	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	15,148		$	14,860
Weighted-average market servicing rate	0.650		%	0.649		%
Weighted-average prepayment rate	18.93		%	18.77		%
Weighted-average default rate	12.28		%	12.63		%

Fair value resulting from:
Market servicing rate increase of 0.025%	$	14,149		$	13,850
Market servicing rate decrease of 0.025%	$	16,147		$	15,870

Fair value resulting from:
Applying a 1.1 multiplier to prepayment rate	$	14,816		$	14,534
Applying a 0.9 multiplier to prepayment rate	$	15,485		$	15,191

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	14,871		$	14,557
Applying a 0.9 multiplier to default rate	$	15,426		$	15,165

XML 31 R19.htm IDEA: XBRL DOCUMENT

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

Goodwill and Other Intangible Assets, Net

Goodwill

Other Intangible Assets

The following table presents the detail of other intangible assets subject to amortization as of the following date (dollars in thousands):


	June 30, 2023
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Remaining Useful Life (In Years)
Developed technology	$	3,060	$	(3,060)	$	—	—
User base and customer relationships	5,050		(4,911)		139		1.8
Brand name	60		(60)		—		—
Total Intangible Assets subject to amortization	$	8,170	$	(8,031)	$	139

Amortization expense for the three months ended June 30, 2023 and 2022 was not material.

Estimated amortization of purchased intangible assets for future periods is as follows (in thousands):


Year Ending December 31,

2023 (remainder thereof)	$	54
2024	85
Total	$	139

XML 32 R20.htm IDEA: XBRL DOCUMENT

OTHER LIABILITIES

6 Months Ended

Jun. 30, 2023

Other Liabilities [Abstract]

OTHER LIABILITIES

Other Liabilities

Other Liabilities consist of the following (in thousands):


	June 30, 2023		December 31, 2022
Operating lease liabilities (Note 15)	$	15,627	$	16,351
Deferred revenue	5,501		3,880
Credit Card servicing obligation liability (Note 5)	5,769		3,720
Loan trailing fee liability	3,294		3,290
Deferred income tax liability	658		658





Other	432		359
Total Other Liabilities	$	31,281	$	28,258

Additionally, disclosures around the operating lease liabilities are included in Note 15.

XML 33 R21.htm IDEA: XBRL DOCUMENT

DEBT	6 Months Ended
DEBT	Jun. 30, 2023
Debt Disclosure [Abstract]
DEBT	Debt Term Loan Credit Agreement On November 14, 2022, the Company entered into a Credit Agreement with a third-party financial institution, which provides for a $75 million Term Loan maturing on November 14, 2026. Proceeds received from the Term Loan were net of an original issue discount and the Company also incurred approximately $0.4 million in debt issuance costs. Both the original issue discount and the debt issuance costs are being amortized over the life of the Term Loan to interest expense using the effective interest method. Interest Borrowings under the Term Loan accrue interest at the Secured Overnight Financing Rate (“SOFR”) plus 9.0% per annum. In addition, all borrowings under the Term Loan accrue payment-in-kind (“PIK”) interest at 2.0% per annum. Any accrued PIK interest that remains unpaid at the end of each month is added to the outstanding principal balance of the Term Loan. Guarantees and Collateral PMI’s obligations under the Term Loan are guaranteed by PHL and BillGuard. All obligations under the Credit Agreement are secured by a first priority, perfected lien on substantially all of the assets of PMI (subject to exclusions such as certain cash amounts and deposit accounts), PHL and BillGuard, as well as equity interests in all of PMI’s subsidiaries with the exception of PGT. Covenants and Other Matters The Credit Agreement contains a number of covenants that, among other things and subject to certain exceptions and thresholds, restrict PMI’s ability to incur certain new indebtedness; incur certain liens; sell or otherwise dispose of all or substantially all its assets; make loans, advances, and guarantees; and pay dividends or make other distributions on equity interests. In addition, the Credit Agreement contains certain financial covenants with which the Company must remain in compliance as of the last business day of each month during the life of the Term Loan: •a minimum tangible net worth •a minimum net liquidity •a maximum leverage ratio •a minimum asset coverage ratio The Company is in compliance with all covenants as of June 30, 2023, as well as applicable monthly periods for the quarter then ended. The Credit Agreement also contains certain customary representations and warranties and affirmative covenants, and certain reporting obligations. In addition, the Term Loan lender will be permitted to accelerate all outstanding borrowings and exercise other specified remedies upon the occurrence of certain events of default (subject to certain grace periods and exceptions), which include, among other things, payment defaults, breaches of representations and warranties, covenant defaults, certain cross-defaults to other indebtedness, certain events of bankruptcy and insolvency, certain judgments and changes of control. Prosper Warehouse Trust Agreements Prosper’s consolidated VIEs, PWIT and PWIIT (together, “Warehouse VIEs”), each entered into an agreement (together, “Warehouse Agreements”) with certain lenders for committed revolving lines of credit (“Warehouse Lines”) during 2018 and 2019, respectively. In connection with the Warehouse Agreements, the Warehouse VIEs each entered into a security agreement with a bank as administrative agent and a national banking association as collateral trustee and paying agent. Proceeds under the Warehouse Lines may only be used to purchase certain unsecured consumer loans and related rights and documents from Prosper and to pay fees and expenses related to the Warehouse Lines. Both Warehouse VIEs are consolidated because Prosper is the primary beneficiary of the VIEs. The assets of the VIEs can be used only to settle obligations of the VIEs. Additionally, the creditors of the Warehouse Lines have no recourse to the general credit of Prosper. The loans held in the Warehouse VIEs are included in Loans Held for Sale, at Fair Value and Warehouse Lines are in Warehouse Lines in the condensed consolidated balance sheets. Both Warehouse Agreements contain the same certain covenants including restrictions on each Warehouse VIE's ability to incur indebtedness, pledge assets, merge or consolidate and enter into certain affiliate transactions. Each Warehouse Agreement also requires Prosper to maintain a minimum tangible net worth of $25 million, minimum net liquidity of $15 million and a maximum leverage ratio of 5:1. Tangible net worth is defined as the sum of (i) (A) Convertible Preferred Stock, (B) total Stockholders’ Deficit and (C) Convertible Preferred Stock Warrant Liability, less the sum of (ii) (A) goodwill and (B) intangible assets. Net liquidity is defined as the sum of cash, cash equivalents and Available for Sale Investments. The leverage ratio is defined as the ratio of total consolidated indebtedness other than non-recourse securitization indebtedness, non-recourse or limited recourse warehouse indebtedness and borrower dependent notes, to tangible net worth. As of June 30, 2023, Prosper was in compliance with the covenants under each Warehouse Agreement. PWIT Warehouse Line On January 19, 2018, through PWIT, Prosper entered into a Warehouse Agreement for a Warehouse Line with a national banking association. Effective June 12, 2018, the Warehouse Agreement was amended. The amendments included increasing the committed line of credit from $100 million to $200 million, extending the term of the PWIT Warehouse Line (including the final maturity date), amending the monthly unused commitment fee and reducing the rate at which the PWIT Warehouse Line bears interest. Subsequently the Warehouse Agreement was amended on June 20, 2019 to extend the facility, to reduce the interest rate and unused commitment fee and to expand the eligibility criteria for unsecured consumer loans that can be financed through the PWIT Warehouse Line. It was amended again on May 19, 2021 to extend the facility, to reduce the interest and advance rates and to include provisions for an alternative benchmark rate in light of the ongoing phaseout of LIBOR. On May 5, 2023, PMI further amended its PWIT Warehouse Line (“PWIT 2023 Extension”). The PWIT 2023 Extension increased the maximum borrowing amount from $200 million to $244 million, consisting of a $200 million Class A loan with the existing PWIT Warehouse Line national banking association and a $44 million Class B loan with an asset manager. Under the PWIT 2023 Extension, the total advance rate is 91.5%. Proceeds of loans purchased through the PWIT Warehouse Line may be borrowed, repaid and reborrowed until the earlier of June 20, 2024 or the occurrence of any accelerated amortization event or event of default. Repayment on any outstanding proceeds will be made over a 12-month period ending June 20, 2025, excluding the occurrence of any accelerated amortization event or event of default. Under the PWIT 2023 Extension, the Class A loan bears interest at a rate of one-month SOFR, plus a spread of 2.75% per annum, while the Class B loan bears interest at a rate of one-month SOFR, plus a spread of 8.50% per annum. The spread under both loans increases by 0.15% per annum effective January 1, 2024 unless a securitization or refinancing is executed prior to that date. Additionally, until June 20, 2024, both loans bear a daily unused commitment fee of 0.50% per annum on the undrawn portion available under each respective loan. As of June 30, 2023, Prosper had $203.3 million in debt and accrued interest outstanding under the PWIT Warehouse Line. This debt is secured by an aggregate outstanding principal balance of $223.2 million included in Loans Held for Sale, at Fair Value on the condensed consolidated balance sheets. At June 30, 2023 the undrawn portion available under the PWIT Warehouse Line was $42.2 million. Prosper incurred $2.2 million of deferred debt issuance costs associated with the PWIT Warehouse Line, including $0.3 million from the amendment signed on May 19, 2021, which are included in “Prepaids and Other Assets” and amortized to interest expense over the term of the revolving arrangement. Prosper maintains a swaption to limit the Company's exposure to increases in SOFR on up to $185.0 million of borrowings under the PWIT Warehouse Line. The swaption is recorded on the consolidated balance sheet at fair value in Prepaids and Other Assets. Any changes in the fair value are recorded in the Change in Fair Value of Financial Instruments on the condensed consolidated statement of operations. The fair value of the swaption was $0.7 million and $1.3 million as of June 30, 2023 and December 31, 2022, respectively. The change in fair value of the swaption was immaterial for the three months ended June 30, 2023 and 2022, respectively. The change in fair value of the swaption was a loss of $0.5 million and a gain of $0.4 million for the six months ended June 30, 2023 and 2022, respectively. PWIIT Warehouse Line On March 28, 2019, through PWIIT, Prosper entered into a second Warehouse Agreement for a $300 million Warehouse Line with a national banking association different than that of PWIT. Subsequently on March 4, 2021, PMI extended its $300 million PWIIT Warehouse Line (“PWIIT 2021 Extension”). The PWIIT 2021 Extension consisted of a $230 million Class A loan with the existing PWIIT Warehouse Line national banking association and a $70 million Class B loan with an asset manager. On February 10, 2023, PMI again extended its PWIIT Warehouse Line (“PWIIT 2023 Extension”). The PWIIT 2023 Extension increased the maximum borrowing amount from $300 million to $450 million, consisting of a $400 million Class A loan with the existing PWIIT Warehouse Line national banking association and a $50 million Class B loan with the existing asset manager. In May 2023, the Company further amended the PWIIT Warehouse Line, which included replacing the existing Class B lender with another third-party asset manager and lowering the spread on Class B borrowings. In July 2023, the PWIIT Warehouse Line was further amended, decreasing the maximum borrowing amount from $450 million to $300 million, consisting of a $265 million Class A loan and a $35 million Class B loan. The total advance rate on the PWIIT Warehouse Line is the lesser of (a) 90% and (b) the sum of defined Class A and B advance rates determined primarily on the basis of a proprietary calculation developed by the lenders, which is expected to range from approximately 80% to 90%. This advance rate became applicable to all new and existing borrowings under the PWIIT Warehouse Line at the time the PWIIT 2023 Extension was signed. Under the PWIIT 2023 Extension, proceeds of loans made under the PWIIT Warehouse Line may be borrowed, repaid and reborrowed until the earlier of March 3, 2024 or the occurrence of any accelerated amortization event or event of default. Repayment of any outstanding proceeds will be made over a 24-month period ending March 4, 2026, excluding the occurrence of any accelerated amortization event or event of default. Under the PWIIT Warehouse Line, the Class A loan bears interest at a per annum rate of the national banking association's asset-backed commercial paper rate, plus a spread of 2.85%. The spread increases by 0.375% during the first 12 months immediately following the termination of the revolving period with an additional increase of 0.375% thereafter. Additionally, the Class A loan bears a monthly unused commitment fee of 0.75% per annum on the undrawn portion available under the Class A loan. The Class B loan bears interest at a per annum rate of adjusted one-month SOFR, plus a spread of 8.75%. The spread increases by 0.375% during the first twelve months immediately following the termination of the revolving period with an additional increase of 0.375% thereafter. Additionally, the Class B loan bears a monthly unused commitment fee of 0.50% or 1.00% per annum on the undrawn portion available under the Class B loan, depending on the Class B loan utilization percentage. As of June 30, 2023, Prosper had $271.4 million in debt and accrued interest outstanding under the PWIIT Warehouse Line. This debt is secured by an aggregate outstanding principal balance of $312.8 million included in Loans Held for Sale, at Fair Value on the Consolidated Balance Sheets. At June 30, 2023 the undrawn portion available under the PWIIT Warehouse Line was $179.8 million. PMI incurred $1.3 million of debt issuance costs for the PWIIT 2021 Extension and $0.9 million for the PWIIT 2023 Extension, which are included in Prepaids and Other Assets and will be amortized to Interest Expense on Notes and Warehouse Lines over the term of the revolving arrangement. Paycheck Protection Program Loan In April 2020, the Company obtained an $8.4 million loan under the PPP, established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and sponsored by the U.S. Small Business Administration (“SBA”). The loan accrued interest at one percent per annum and had a two-year term through April 2022, with payments deferred until such time as an approval or denial of forgiveness was received from the SBA. The Company used the PPP Loan proceeds to cover payroll costs, rent and utilities in accordance with the relevant terms and conditions of the CARES Act. On March 21, 2022, the Company was notified by the SBA that all principal and interest under the loan, totaling $8.6 million, was forgiven in full through a forgiveness payment made on March 15, 2022 by the SBA to the lender of the PPP loan. As a result, the Company recognized a “Gain on Forgiveness of PPP Loan” for this amount on its accompanying Consolidated Statement of Operations for the six months ended June 30, 2022.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

NET INCOME (LOSS) PER SHARE

XML 34 R22.htm IDEA: XBRL DOCUMENT

NET INCOME (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Basic and diluted net income (loss) per share were calculated as follows for the periods presented (in thousands, except share and per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net (Loss) Income	$	(52,770)	$	42,665	$	(61,860)	$	79,297

Less: Net Income Allocated to Participating Securities	—		(28,663)		—		(53,352)
Net (Loss) Income Attributable to Common Stockholders	$	(52,770)	$	14,002	$	(61,860)	$	25,945
Denominator:
Weighted average shares used in computing basic net income (loss) per share	75,777,502		72,971,346		75,483,899		72,643,221
Effect of dilutive securities:
Stock options	—		58,531,983		—		62,524,031
Warrants	—		569,216		—		645,574
Convertible preferred stock warrants	—		213,264,845		—		213,264,845
Weighted average shares used in computing diluted Net Income (Loss) per Share	75,777,502		345,337,390		75,483,899		349,077,671
Net (Loss) Income Per Share – Basic	$	(0.70)	$	0.19	$	(0.82)	$	0.36
Net (Loss) Income Per Share – Diluted	$	(0.70)	$	0.04	$	(0.82)	$	0.07

The following common stock equivalents were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been anti-dilutive:


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
	(shares)	(shares)	(shares)	(shares)
Excluded securities:
Convertible preferred stock issued and outstanding, excluding shares held by consolidated VIE	158,365,655	158,365,655	158,365,655	158,365,655
Stock options issued and outstanding	80,918,455	12,880,655	80,519,177	14,355,673


Warrants issued and outstanding	1,080,349	511,133	1,080,349	434,775
Series E-1 convertible preferred stock warrants	35,544,141	—	35,544,141	—
Series F convertible preferred stock warrants	177,720,704	—	177,720,704	—
Total common stock equivalents excluded from diluted net (loss) income per common share computation	453,629,304	171,757,443	453,230,026	173,156,103

XML 35 R23.htm IDEA: XBRL DOCUMENT

CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY AND COMMON STOCK

6 Months Ended

Jun. 30, 2023

Stockholders' Equity Note [Abstract]

CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY AND COMMON STOCK

Convertible Preferred Stock, Convertible Preferred Stock Warrant Liability and Common Stock

Convertible Preferred Stock and Warrants


Convertible Preferred Stock	Par Value		Authorized Shares	Outstanding and Issued Shares		Liquidation Preference, Outstanding Shares
Series A	$	0.01	68,558,220	66,428,185	*	$	19,160
Series A-1	$	0.01	24,760,915	22,515,315		45,031
Series B	$	0.01	35,775,880	35,127,160	*	21,190
Series C	$	0.01	24,404,770	24,404,770		70,075
Series D	$	0.01	23,888,640	23,888,640		165,000
Series E-1	$	0.01	35,544,141	—		—
Series E-2	$	0.01	16,858,078	—		—
Series F	$	0.01	177,720,707	3		—
Series G	$	0.01	37,249,497	37,249,497		50,000
Total			444,760,848	209,613,570		$	370,456

* Series A and Series B Convertible Preferred Stock totals are inclusive of 34,670,420 and 16,577,495 shares, respectively, held by PGT, a consolidated VIE.

Dividends

Conversion

Liquidation Rights

stock, $0.84 per share for the Series F convertible preferred stock and $1.34 per share for the Series G convertible preferred stock.

Voting

Convertible Preferred Stock Warrant Liability

Series E-1 Warrants

The Company determined the fair value of the outstanding Series E-1 preferred stock warrants utilizing the following assumptions as of the following dates:


	June 30, 2023		December 31, 2022
Volatility	70.0	%	72.0	%
Risk-free interest rate	4.60	%	4.30	%
Expected term (in years)	2.75		2.75
Dividend yield	—	%	—	%

The above assumptions were determined as follows:

Expected Term: The expected term is the period of time for which the warrants are expected to be outstanding.

Dividend Yield: The expected dividend assumption is based on the Company’s current expectations about the Company’s anticipated dividend policy.

Series F Warrants

The Company determined the fair value of the outstanding Series F Warrants utilizing the following assumptions as of the following dates:


	June 30, 2023		December 31, 2022
Volatility	70.0	%	72.0	%
Risk-free interest rate	4.60	%	4.30	%
Expected term (in years)	2.75		2.75
Dividend yield	—	%	—	%

The above assumptions were determined using the same criteria described above for the Series E-1 Warrants.

The combined activity of the Convertible Preferred Stock Warrant Liability for the Six Months Ended June 30, 2023 and 2022 are presented in Note 7, Fair Value of Assets and Liabilities.

Common Stock

Common Stock Issued upon Exercise of Stock Options

For the six months ended June 30, 2023, PMI issued 2,313,011 shares of common stock upon the exercise of vested options for cash proceeds of $71 thousand.

The entire disclosure for equity.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Share-Based Payment Arrangement [Abstract]

XML 36 R24.htm IDEA: XBRL DOCUMENT

STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2023

STOCK-BASED COMPENSATION

Stock Option Activity

Stock option activity under the 2005 Plan and 2015 Plan is summarized for the six months ended June 30, 2023 below:


	Options Issued and Outstanding	Weighted Average Exercise Price
Balance as of January 1, 2023	77,727,763	$	0.13
Options issued	9,866,430	$	0.33
Options exercised	(2,313,011)	$	0.03
Options forfeited	(1,976,618)	$	0.38

Balance as of June 30, 2023	83,304,564	$	0.15
Options vested and expected to vest as of June 30, 2023	75,260,753	$	0.15
Options vested and exercisable as of June 30, 2023	57,273,400	$	0.07

Other Information Regarding Stock Options

The weighted-average remaining contractual term for options outstanding as of June 30, 2023 is 6.17 years.


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Volatility of common stock	66.59	%	68.50	%	66.62	%	66.95	%
Risk-free interest rate	3.34	%	2.93	%	3.44	%	2.57	%
Expected life (in years)	6.1 years		6.0 years		6.1 years		6.0 years
Dividend yield	—	%	—	%	—	%	—	%

Restricted Stock Unit Activity

In previous years, PMI granted RSUs to certain employees that are subject to three-year or four-year vesting terms and the occurrence of a liquidity event.

The following table summarizes the number of PMI’s RSU activity for six months ended June 30, 2023:


	Number of Shares		Weighted-Average Grant Date Fair Value
Unvested at January 1, 2013	2,602,383		$	1.04



Forfeited	(250)		2.18

Unvested at June 30, 2023	$	2,602,133	$	1.04

Share Based Compensation


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Origination and servicing	$	23	$	35	$	45	$	63
Sales and marketing	67		173		103		201
General and administrative	314		296		624		535
Total stock-based compensation	$	404	$	504	$	772	$	799

XML 37 R25.htm IDEA: XBRL DOCUMENT

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2023
Entity Information [Line Items]
INCOME TAXES	Income Taxes For the three months ended June 30, 2023 and 2022, PMI recognized $70 thousand and $20 thousand of income tax expense, respectively. For the six months ended June 30, 2023 and 2022, PMI recognized and $140 thousand and $40 thousand of income tax expense, respectively. The income tax expense relates to state income tax expense and the amortization of tax deductible goodwill which gives rise to an indefinite-lived deferred tax liability. No other income tax expense or benefit was recorded for the six month periods ended June 30, 2023 and 2022 due to a full valuation allowance recorded against the Company’s 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, it is not more likely than not that our deferred tax assets will be realized and therefore a full valuation allowance has been recorded.
Prosper Funding LLC
Entity Information [Line Items]
INCOME TAXES	Income TaxesPFL incurred no income tax provision for the six months ended June 30, 2023 and 2022. PFL is a U.S. disregarded entity and its income and loss are included in the income tax reporting of its parent, PMI. Since PMI is in a taxable loss position, is not currently subject to income taxes, and has fully reserved against its deferred tax asset, the net effective tax rate for PFL is 0%.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

XML 38 R26.htm IDEA: XBRL DOCUMENT

LEASES

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

LEASES

Leases

Operating Lease Right-of-Use (“ROU”) Assets

The following table summarizes the operating lease right-of-use assets as of June 30, 2023, which are included in “Property and Equipment, Net” on the condensed consolidated balance sheets.


	June 30, 2023
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
ROU Assets - Office buildings	$	23,549	$	10,742	$	12,807
ROU Assets - Other	900		866		34
Total right-of-use assets subject to amortization	$	24,449	$	11,608	$	12,841

Lease Liabilities


	June 30, 2023
Remainder of 2023	$	2,131
2024	4,391
2025	4,517
2026	4,432
2027	3,311
Thereafter	1,411
Total future minimum lease payments	$	20,193
Less imputed interest	(4,566)
Present value of future minimum lease payments	$	15,627


	June 30, 2023


Weighted average remaining lease term (in years)	4.49 years
Weighted average discount rate	11.24	%

XML 39 R27.htm IDEA: XBRL DOCUMENT

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 2023
Entity Information [Line Items]
COMMITMENTS AND CONTINGENCIES	Commitments and Contingencies In the normal course of its operations, Prosper becomes involved in various legal actions. Prosper maintains provisions it considers to be adequate for such actions. Prosper does not believe it is probable that the ultimate liability, if any, arising out of any such matters will have a material effect on Prosper's financial condition, results of operations or cash flows. Operating Commitments PMI, along with PFL, and WebBank has entered into: (i) an Asset Sale Agreement, dated July 1, 2016, between PFL and WebBank, as most recently amended by a Sixth Amendment dated October 5, 2022 (as amended, the “Sale Agreement”); (ii) the Marketing Agreement, dated July 1, 2016, between PMI and WebBank, as most recently amended by a Sixth Amendment dated June 25, 2021 (as amended, the “Marketing Agreement”); and (iii) the Stand By Purchase Agreement, dated July 1, 2016, between PMI and WebBank, as most recently amended by a Third Amendment dated June 25, 2021 (as amended, the “Purchase Agreement” and, collectively with the Sale Agreement and the Marketing Agreement, the “Origination and Sale Agreements”). Under the Origination and Sale Agreements, all Borrower Loans originated through the marketplace are made by WebBank under its bank charter. The Origination and Sale Agreements contain terms through February 1, 2025. Prosper is required, under the Origination and Sale Agreements, to maintain certain collateral requirements. In addition, pursuant to the Marketing Agreement, the marketing fee that Prosper receives in connection with the origination of each loan is partially reduced by an amount (the “Designated Amount”) calculated as a percentage of the principal amount of such loan based on the aggregate principal amount of loans originated for the applicable month. To the extent the aggregate Designated Amount for all loans originated during any month is less than $100,000 through February 1, 2025, Prosper is required to pay WebBank an amount equal to such deficiency. Accordingly, the minimum fee for the remaining six months of 2023 is $0.6 million. The minimum fee is $1.2 million for 2024, and $0.1 million in 2025. Additionally, Under the Origination and Sale Agreements, Prosper is required to maintain minimum net liquidity of $15.0 million at all times during the term of the agreement. Net liquidity is defined as the sum of Cash, Cash Equivalents and Available for Sale Investments. Violation of this covenant can result in termination of the contract with WebBank. As of June 30, 2023, the Company was in compliance with the covenant. Loan Purchase Commitments Prosper entered into an agreement with WebBank to purchase $9.4 million of Borrower Loans that WebBank originated during the last two business days of the quarter ended June 30, 2023. Prosper will purchase these Borrower Loans within the first three business days of the quarter ending September 30, 2023. Repurchase Obligation Under the terms of the loan purchase agreements between Prosper and investors that participate in the Whole Loan Channel, Prosper may, in certain circumstances, become obligated to repurchase a Borrower Loan from an investor. 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. Prosper recognizes a liability at fair value for the repurchase obligation when the Borrower Loans are sold. The fair value of the repurchase obligation is estimated based on historical experience. 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. The maximum potential amount of future payments associated with this obligation is the outstanding balances of the Borrower Loans issued to third parties through the Whole Loan Channel, which at June 30, 2023 is $3.2 billion. Prosper has accrued $0.4 million and $0.3 million as of June 30, 2023 and December 31, 2022, respectively, in regard to this obligation. Under the terms of the indenture and investor registration agreement, Prosper may, in certain circumstances, become obligated to either repurchase a Note or indemnify the investor for any losses resulting from nonpayment of a Note purchased in the Retail Channel. The decision to repurchase or indemnify is in Prosper’s sole discretion. These circumstances include, but are not limited to, the occurrence of verifiable identity theft, a technical error in the automated bidding tools which results in the purchase of a Note that does not match the investor’s investment criteria, or situations in which a loan listing includes a Prosper Rating that is different from the Prosper Rating that should have appeared in the listing for the corresponding Borrower Loan because either PFL inaccurately input data into, or inaccurately applied, the formula for determining the Prosper Rating and, as a result, the interest of the investor is materially and adversely affected. During the six months ended June 30, 2023 the Company repurchased $0.3 million of Notes under these circumstances, and has agreed to indemnify additional Notes with an unpaid principal balance of $1.0 million as of June 30, 2023. Regulatory Contingencies Prosper accrues for contingencies when a loss from such contingencies is probable and the amount of loss can be reasonably estimated. In determining whether a loss is probable and if it is possible to quantify the amount of the estimated loss, Prosper reviews and evaluates its litigation and regulatory matters on at least a quarterly basis in light of potentially relevant factual and legal developments. If Prosper determines that an unfavorable outcome is not probable or that the amount of a loss cannot be reasonably estimated, Prosper does not accrue for a potential litigation loss. If an unfavorable outcome is probable and Prosper can estimate a range of outcomes, an amount is recorded which management considers to be the best estimate within the range of potential losses that are both probable and estimable; however, if management cannot quantify the amount of the estimated loss, then the low end of the range of the potential losses is recorded. West Virginia Matter In January 2018, the Attorney General of the State of West Virginia (the “Attorney General”) initiated discussions regarding certain acts and practices of PMI and PFL that the Attorney General asserts may have violated the West Virginia Consumer Credit and Protection Act (the “Consumer Act”), to which Prosper responded with such information as was requested by the Attorney General. Following a period of more than a year with limited to no communication, in February 2020, Prosper received a proposed Assurance of Discontinuance (an “AOD”) from the Attorney General requesting that, without in any way admitting that any of its prior practices were in violation of the Consumer Act, Prosper agree to certain terms and conditions regarding its past and potential future conduct of its business with respect to customers in West Virginia, including a release by the Attorney General of any claims it may have related to the matters identified in the AOD. We cannot predict the outcome of the matter and any potential fines or penalties, if any, that may arise from the matter. Further, we are unable to estimate a range of outcomes and as a result no accrual has been made. No loans have been originated through the Prosper platform to West Virginians since June 2016.
Prosper Funding LLC
Entity Information [Line Items]
COMMITMENTS AND CONTINGENCIES	Commitments and Contingencies In the normal course of its operations, PFL becomes involved in various legal actions. PFL maintains provisions it considers to be adequate for such actions. The Company does not believe it is probable that the ultimate liability, if any, arising out of any such matters will have a material effect on financial condition, results of operations or cash flows. Operating Commitments PMI, along with PFL, and WebBank has entered into: (i) an Asset Sale Agreement, dated July 1, 2016, between PFL and WebBank, as most recently amended by a Sixth Amendment dated October 5, 2022 (as amended, the “Sale Agreement”); (ii) the Marketing Agreement, dated July 1, 2016, between PMI and WebBank, as most recently amended by a Sixth Amendment dated June 25, 2021 (as amended, the “Marketing Agreement”); and (iii) the Stand By Purchase Agreement, dated July 1, 2016, between PMI and WebBank, as most recently amended by a Third Amendment dated June 25, 2021 (as amended, the “Purchase Agreement” and, collectively with the Sale Agreement and the Marketing Agreement, the “Origination and Sale Agreements”). Under the Origination and Sale Agreements, all Borrower Loans originated through the marketplace are made by WebBank under its bank charter. The Origination and Sale Agreements contain terms through February 1, 2025. Prosper is required, under the Origination and Sale Agreements, to maintain certain collateral requirements. In addition, pursuant to the Marketing Agreement, the marketing fee that Prosper receives in connection with the origination of each loan is partially reduced by an amount (the “Designated Amount”) calculated as a percentage of the principal amount of such loan based on the aggregate principal amount of loans originated for the applicable month. To the extent the aggregate Designated Amount for all loans originated during any month is less than $100,000 through February 1, 2025, Prosper is required to pay WebBank an amount equal to such deficiency. Accordingly, the minimum fee for the remaining six months of 2023 is $0.6 million. The minimum fee is $1.2 million for 2024, and $0.1 million in 2025. Additionally, Under the Origination and Sale Agreements, Prosper is required to maintain minimum net liquidity of $15.0 million at all times during the term of the agreement. Net liquidity is defined as the sum of Cash, Cash Equivalents and Available for Sale Investments. Violation of this covenant can result in termination of the contract with WebBank. As of June 30, 2023, the Company was in compliance with the covenant. Loan Purchase Commitments Under the terms of PFL’s agreement with WebBank, PFL is committed to purchase $9.4 million of Borrower Loans that WebBank originated during the last two business days of the quarter ended June 30, 2023. PFL will purchase these Borrower Loans within the first three business days of the quarter ending September 30, 2023. Repurchase Obligation Under the terms of the loan purchase agreements between PFL and investors that participate in the Whole Loan Channel, PFL may, in certain circumstances, become obligated to repurchase a Borrower Loan from an investor. 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. PFL 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 repurchase obligation is the outstanding balances of the Borrower Loans issued through the Whole Loan Channel, which as of June 30, 2023 is $3.7 billion. PFL has accrued $0.4 million and $0.3 million as of June 30, 2023 and December 31, 2022, respectively, in regard to this obligation. Under the terms of the indenture and investor registration agreement, Prosper may, in certain circumstances, become obligated to either repurchase a Note or indemnify the investor for any losses resulting from nonpayment of a Note purchased in the Retail Channel. The decision to repurchase or indemnify is in Prosper’s sole discretion. These circumstances include, but are not limited to, the occurrence of verifiable identity theft, a technical error in the automated bidding tools which results in the purchase of a Note that does not match the investor’s investment criteria, or situations in which a loan listing includes a Prosper Rating that is different from the Prosper Rating that should have appeared in the listing for the corresponding Borrower Loan because either PFL inaccurately input data into, or inaccurately applied, the formula for determining the Prosper Rating and, as a result, the interest of the investor is materially and adversely affected. During the six months ended June 30, 2023 the Company has repurchased $0.3 million of the underlying notes. The Company is indemnifying an additional $1.0 million in outstanding Notes as of June 30, 2023. Regulatory Contingencies PFL accrues for contingencies when a loss from such contingencies is probable and the amount of loss can be reasonably estimated. In determining whether a loss is probable and if it is possible to quantify the amount of the estimated loss, PFL reviews and evaluates its litigation and regulatory matters on at least a quarterly basis in light of potentially relevant factual and legal developments. If PFL determines that an unfavorable outcome is not probable or that the amount of a loss cannot be reasonably estimated, PFL does not accrue for a potential litigation loss. If an unfavorable outcome is probable and PFL can estimate a range of outcomes, PFL records the amount management considers to be the best estimate within the range of potential losses that are both probable and estimable; however, if management cannot quantify the amount of the estimated loss, then PFL records the low end of the range of those potential losses. West Virginia Matter In January 2018, the Attorney General of the State of West Virginia (the “Attorney General”) initiated discussions regarding certain acts and practices of PMI and PFL that the Attorney General asserts may have violated the West Virginia Consumer Credit and Protection Act (the “Consumer Act”), to which PMI responded with such information as was requested by the Attorney General. Following a period of more than a year with limited to no communication, in February 2020, PMI received a proposed Assurance of Discontinuance (an “AOD”) from the Attorney General requesting that, without in any way admitting that any of its prior practices were in violation of the Consumer Act, PMI agreed to certain terms and conditions regarding its past and potential future conduct of its business with respect to customers in West Virginia, including a release by the Attorney General of any claims it may have related to the matters identified in the AOD. We cannot predict the outcome of the matter and any potential fines or penalties, if any, that may arise from the matter. Further, we are unable to estimate a range of outcomes and as a result no accrual has been made. No loans have been originated through the PFL platform to West Virginians since June 2016.

XML 40 R28.htm IDEA: XBRL DOCUMENT

RELATED PARTIES

6 Months Ended

Jun. 30, 2023

RELATED PARTIES

Related Parties


	Aggregate Amount of Notes Purchased the Three Months Ended June 30,				Interest Earned on Notes the Three Months Ended June 30,
Related Party	2023		2022		2023		2022
Executive officers and management	$	9	$	10	$	2	$	2
Directors (excluding executive officers and management)	—		—		—		—
Total	$	9	$	10	$	2	$	2


	Aggregate Amount of Notes Purchased the Six Months Ended June 30,				Interest Earned on Notes the Six Months Ended June 30,
Related Party	2023		2022		2023		2022
Executive officers and management	$	17	$	19	$	4	$	4
Directors (excluding executive officers and management)	—		—		—		1
Total	$	17	$	19	$	4	$	5


	Notes Balance as of
Related Party	June 30, 2023		December 31, 2022
Executive officers and management	$	53	$	52
Directors (excluding executive officers and management)	3		6
Total	$	56	$	58

RELATED PARTIES

Related Parties


	Aggregate Amount of Notes Purchased				Interest Earned on Notes
	Three Months Ended June 30,				Three Months Ended June 30,
Related Party	2023		2022		2023		2022
Executive officers and management	$	8	$	9	$	2	$	2
Directors (excluding executive officers and management)	—		—		—		—
Total	$	8	$	9	$	2	$	2


	Aggregate Amount of Notes Purchased				Interest Earned on Notes
	Six Months Ended June 30,				Six Months Ended June 30,
Related Party	2023		2022		2023		2022
Executive officers and management	$	15	$	18	$	4	$	3
Directors (excluding executive officers and management)	—		—		—		—
Total	$	15	$	18	$	4	$	3

The balance of Notes held by officers and directors who are not executive officers are as follows (in thousands):


	Notes Balance as of
Related Party	June 30, 2023		December 31, 2022
Executive officers and management	$	46	$	45
Directors (excluding executive officers and management)	—		—
Total	$	46	$	45

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

XML 41 R29.htm IDEA: XBRL DOCUMENT

SIGNIFICANT CONCENTRATIONS	6 Months Ended
SIGNIFICANT CONCENTRATIONS	Jun. 30, 2023
Risks and Uncertainties [Abstract]
SIGNIFICANT CONCENTRATIONS	Significant ConcentrationsProsper is dependent on third-party funding sources such as banks, asset managers, investment funds and Warehouse Lines to provide the funds to allow WebBank to originate Borrower Loans that the third party funding sources will later purchase. Of all Borrower Loans originated in the three months ended June 30, 2023, three individual third parties purchased 10.1%, 11.8% and 16.8% of all Borrower Loans originated. For the three months ended June 30, 2022, three individual third parties purchased 21.0%, 10.8% and 10.6% of all Borrower Loans originated, and the Company’s Warehouse VIEs purchased 8.7% of such loans. Of all Borrower Loans originated in the six months ended June 30, 2023, three individual third parties purchased 10.6%, 10.6% and 10.3% of all Borrower Loans originated, and the Company’s Warehouse VIEs purchased 14.0% of such loans. For the six months ended June 30, 2022, one individual party purchased 24.0% of such loans, and the Company’s Warehouse VIEs purchased 11.1% of such loans. Prosper receives all of its personal loan transaction fee revenue from WebBank. Prosper earns a transaction fee from WebBank for its services in facilitating originations of Borrower Loans issued by WebBank. The rate of the transaction fee for each individual Borrower Loan is based on the term and credit grade of the Borrower Loan. No individual borrower or investor accounted for 10% or more of consolidated net revenue for any of the periods presented.

XML 42 R30.htm IDEA: XBRL DOCUMENT

SEGMENTS

6 Months Ended

Jun. 30, 2023

SEGMENTS

egments


	Three Months Ended June 30, 2023
	Personal Loan		Home Equity		Credit Card		Total
Total Net Revenue	$	25,737	$	364	$	5,430	$	31,531
Impact of interest rates on fair value of loans held in consolidated trusts	6,037		—		—		6,037
Segment Adjusted Net Revenue	$	31,774	$	364	$	5,430	$	37,568


Segment Adjusted EBITDA	$	(5,551)	$	(889)	$	(2,460)	$	(8,900)
Depreciation expense:
Origination and Servicing							(2,340)
General and Administration - Other							(492)
Amortization of intangibles							(27)
Stock-based compensation							(404)
Change in Fair Value of Convertible Preferred Stock Warrants							(31,989)
Impact of interest rates on fair value of loans held in consolidated trusts							(6,037)
Interest income on cash and cash equivalents							358
Interest Expense on Term Loan							(2,869)
Net Loss Before Income Taxes							$	(52,700)

Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale	$	30,366	$	—	$	—	$	30,366
Interest Expense on Financial Instruments	(23,404)		—		—		(23,404)
Total Interest Income, Net	$	6,962	$	—	$	—	$	6,962


	Three Months Ended June 30, 2022
	Personal Loan		Home Equity		Credit Card		Total
Total Net Revenue	$	50,962	$	1,010	$	3,289	$	55,261
Impact of interest rates on fair value of loans held in consolidated trusts	3,550		—		—		3,550
Segment Adjusted Net Revenue	$	54,512	$	1,010	$	3,289	$	58,811


Segment Adjusted EBITDA	$	9,451	$	(324)	$	(3,860)	$	5,267
Depreciation expense:
Origination and Servicing							(1,962)
General and Administration - Other							(646)
Amortization of intangibles							(34)
Stock-based compensation							(504)
Change in Fair Value of Convertible Preferred Stock Warrants							44,075

Impact of interest rates on fair value of loans held in consolidated trusts							(3,550)
Interest income on cash and cash equivalents							39
Net Income Before Income Taxes							$	42,685

Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale	$	20,579	$	—	$	—	$	20,579
Interest Expense on Financial Instruments	(14,101)		—		—		(14,101)
Total Interest Income, Net	$	6,478	$	—	$	—	$	6,478


	Six Months Ended June 30, 2023
	Personal Loan		Home Equity		Credit Card		Total
Total Net Revenue	$	59,231	$	657	$	12,015	$	71,903
Impact of interest rates on fair value of loans held in consolidated trusts	7,244		—		—		7,244
Segment Adjusted Net Revenue	$	66,475	$	657	$	12,015	$	79,147


Segment Adjusted EBITDA	(10,831)		(1,763)		(2,642)		$	(15,236)
Depreciation expense:
Origination and Servicing							(4,466)
General and Administration - Other							(1,116)
Amortization of intangibles							(54)
Stock-based compensation							(772)
Change in Fair Value of Convertible Preferred Stock Warrants							(27,724)
Impact of interest rates on fair value of loans held in consolidated trusts							(7,244)
Interest income on cash and cash equivalents							713
Interest Expense on Term Loan							(5,821)
Net Loss Before Income Taxes							$	(61,720)

Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale	$	59,385	$	—	$	—	$	59,385
Interest Expense on Financial Instruments	(44,563)		—		—		(44,563)
Total Interest Income, Net	$	14,822	$	—	$	—	$	14,822


	Six Months Ended June 30, 2022
	Personal Loan		Home Equity		Credit Card		Total
Total Net Revenue	$	88,075	$	1,349	$	4,430	$	93,854
Impact of interest rates on fair value of loans held in consolidated trusts	5,334		—		—		5,334
Segment Adjusted Net Revenue	$	93,409	$	1,349	$	4,430	$	99,188


Segment Adjusted EBITDA	13,197		(1,132)		(7,392)		$	4,673
Depreciation expense:
Origination and Servicing							(3,980)
General and Administration - Other							(1,287)
Amortization of intangibles							(68)
Stock-based compensation							(799)
Change in Fair Value of Convertible Preferred Stock Warrants							77,486
Gain on Forgiveness of PPP Loan							8,604
Impact of interest rates on fair value of loans held in consolidated trusts							(5,334)
Interest income on cash and cash equivalents							42
Net Income Before Income Taxes							$	79,337

Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale	$	38,662	$	—	$	—	$	38,662
Interest Expense on Financial Instruments	(25,870)		—		—		(25,870)
Total Interest Income, Net	$	12,792	$	—	$	—	$	12,792

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

XML 43 R31.htm IDEA: XBRL DOCUMENT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2023
Entity Information [Line Items]
Basis of Presentation	Prosper Marketplace, Inc. (“PMI” or the “Company”) was incorporated in the state of Delaware on March 22, 2005. Except as the context requires otherwise, as used in these notes to the condensed consolidated financial statements of PMI, “Prosper,” “we,” “us,” and “our” refer to PMI and its wholly-owned subsidiaries, on a consolidated basis. The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and disclosure requirements for interim financial information and the requirements of Article 10 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, 2022. The balance sheet at December 31, 2022 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. PMI did not have any items of other comprehensive income or loss for any of the periods presented in the condensed consolidated financial statements as of and for the six months ended June 30, 2023 and 2022. The preparation of Prosper’s condensed consolidated financial statements and related disclosures in conformity with US GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in Prosper’s financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions. The accompanying interim condensed consolidated financial statements include the accounts of PMI, its wholly-owned subsidiaries and consolidated variable interest entities (“VIEs”). All intercompany balances have been eliminated in consolidation.
Fair Value Measurements	Fair Value Measurements Financial instruments measured at fair value consist principally of Borrower Loans, Loans Held for Sale (Note 4), Servicing Assets (Note 6), Credit Card Derivative (Note 5), Loan Trailing Fee Liabilities (Note 9), Debt (Note 10) and Convertible Preferred Stock Warrant Liability (Note 12). The estimated fair values of other financial instruments, including Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short-term nature. The estimated fair values of the Term Loan and Warehouse Lines (Note 10) do not approximate their carrying values due primarily to differences in the stated and market rates associated with these instruments.
Restricted Cash	Restricted Cash Restricted cash consists primarily of cash deposits, money market funds and short term certificate of deposit accounts held as collateral as required for loan funding and servicing activities, and cash that investors or Prosper have on the marketplace that has not yet been invested in Borrower Loans or disbursed to the investor.
Borrower Loans, Loans Held for Sale and Notes	Borrower Loans, Loans Held for Sale and Notes Borrower Loans are funded either through the Note Channel or through the Whole Loan Channel. Through the Note Channel, Prosper purchases Borrower Loans from WebBank, then issues Notes and holds the Borrower Loans until maturity. The obligation to repay a series of Notes issued through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans funded and Notes issued through the Note Channel are carried on Prosper’s condensed consolidated balance sheets as assets and liabilities, respectively. Prosper uses Warehouse Lines to purchase Loans Held for Sale that may be subsequently contributed to securitization transactions or sold to investors. Loans Held for Sale are included in “Loans Held for Sale, at Fair Value” on the Consolidated Balance Sheets. See Note 10, Debt for more details on Warehouse Lines. Borrower Loans and Loans Held for Sale are purchased from WebBank. Prosper places Borrower Loans and Loans Held for Sale on non-accrual status when they are 120 days past due. When a loan is placed on non-accrual status, Prosper stops accruing interest and reverses all accrued but unpaid interest as of such date. Additionally, Prosper charges-off Borrower Loans and Loans Held for Sale when they are 120 days past due. The fair value of loans 120 or more days past due generally consists of the expected recovery from debt sales in subsequent periods. Prosper has elected the fair value option for Borrower Loans, Loans Held for Sale and Notes. Changes in fair value of Borrower Loans funded through the Note Channel are largely offset by the changes in fair value of Notes due to the borrower payment-dependent design of the Notes. Changes in fair value of Loans Held for Sale are recorded through Proper's earnings and Prosper collects interest on Loans Held for Sale. Changes in the fair values of Borrower Loans, Loans Held for Sale and Notes are included in Change in Fair Value of Financial Instruments on the accompanying condensed consolidated statements of operations. Prosper primarily uses a discounted cash flow model to estimate the fair value of Borrower Loans, Loans Held for Sale and Notes. The key assumptions used in the valuation include default rates and prepayment rates derived primarily from historical performance, and discount rates based on estimates of the rates of return that investors would require when investing in financial instruments with similar characteristics.
Credit Card Derivative	Credit Card Derivative The Company evaluated the terms of the Credit Card program agreement with Coastal Community Bank (“Coastal”) and determined that it contained features that met the definition of derivatives under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging. These features are freestanding financial instruments (as defined under ASC 480, Distinguishing Liabilities from Equity), and have been valued separately as derivatives. A right of offset exists between the derivatives, and they are presented net on the accompanying consolidated balance sheets. Changes in the fair value of the Credit Card Derivative, as well as settled transactions from the Credit Card portfolio, are recorded in Change in Fair Value of Financial Instruments on the accompanying Condensed Consolidated Statements of Operations. Refer to Note 5, Credit Card, for additional details on revenues and expenses related to the Credit Card product.
Term Loan	Term Loan Prosper entered into a Credit Agreement, which provided for a Term Loan with a third-party financial institution in November 2022, which is more fully described in Note 10. This Term Loan is carried at amortized cost, net of discounts and issuance costs, which are subsequently amortized to Interest Expense on Term Loan over the life of the underlying agreement. Interest Expense on Term Loan is presented as a component of Expenses on the accompanying condensed consolidated statements of operations, except for any portion associated with Term Loan proceeds used to purchase Loans Held for Sale through the Company’s Warehouse Lines, which is presented in Interest Expense on Financial Instruments as a component of Net Interest Income on the accompanying condensed consolidated statement of operations.
Leases	Leases Management determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are included on the Condensed Consolidated Balance Sheets in Property and Equipment, Net and in Other Liabilities, respectively. For certain leases with original terms of twelve months or less, PMI recognizes the lease expense as incurred and does not record ROU assets and lease liabilities. If a contract contains a lease, management evaluates whether it should be classified as an operating or finance lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of PMI's leases do not provide an implicit rate, management uses an incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The operating lease ROU assets are evaluated for impairment utilizing the same impairment model used for Property and Equipment.
Consolidation of Variable Interest Entities	Consolidation of Variable Interest Entities The determination of whether to consolidate a VIE in which we have a variable interest requires a significant amount of analysis and judgment regarding whether we are the primary beneficiary of a VIE due to our holding a controlling financial interest in the VIE. A controlling financial interest in a VIE exists if we have both the power to direct the VIE’s activities that most significantly affect the VIE’s economic performance and a potentially significant economic interest in the VIE. The determination of whether an entity is a VIE considers factors, such as (i) whether the entity’s equity investment at risk is insufficient to allow the entity to finance its activities without additional subordinated financial support and (ii) whether a holder’s equity investment at risk lacks any of the following characteristics of a controlling financial interest: the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the entity’s success, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the legal entity. Management regularly reviews and reconsiders its previous conclusions regarding the status of an entity as a VIE and whether we are required to consolidate or deconsolidate such VIE in the consolidated financial statements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Standards Issued, to be Adopted by the Company in Future Periods In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” which provides optional expedients and exceptions for applying GAAP on contract modifications and hedge accounting, in order to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative referenced rates, such as the Secured Overnight Financing Rate. The optional guidance, which became effective on March 12, 2020, could be applied through December 31, 2022. In December 2022, the FASB issued No 2022-06 extending the sunset date of the relief provided under ASU No. 2020-04 to December 31, 2024. The Company amended its agreements and transitioned to SOFR for contracts that previously referenced LIBOR. The Company continues to evaluate potential future impacts that may result from the discontinuation of LIBOR or other reference rates as well as the accounting provided in this update on our financial condition, results of operations, and cash flows.
Prosper Funding LLC
Entity Information [Line Items]
Basis of Presentation	Prosper Funding LLC (“PFL”) was formed in the state of Delaware in February 2012 as a limited liability company with Prosper Marketplace, Inc. (“PMI”) as its sole equity member. Except as the context otherwise requires, as used in these Notes to the condensed consolidated financial statements of Prosper Funding LLC, “PFL”, and the “Company” refers to Prosper Funding LLC and its wholly owned subsidiary, Prosper Depositor LLC, a Delaware limited liability company, on a consolidated basis. 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 Article 10 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, 2022. The balance sheet at December 31, 2022 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. PFL did not have any items of other comprehensive income or loss for any of the periods presented in the condensed consolidated financial statements as of and for the six months ended June 30, 2023 and 2022. The preparation of PFL's condensed consolidated financial statements and related disclosures in conformity with US GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in its condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. These judgments, estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material.
Fair Value Measurements	Fair Value Measurements Financial instruments consist principally of Cash and Cash Equivalents, Restricted Cash, Borrower Loans, Loans Held for Sale, Accounts Receivable, Accounts Payable and Accrued Liabilities, Payable to Investors and Notes. The estimated fair values of Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, Accounts Payable and Accrued Liabilities, and Payable to Investors approximate their carrying values because of their short-term nature.
Restricted Cash	Restricted Cash Restricted Cash consists primarily of cash deposits, money market funds and short-term certificate of deposit accounts held as collateral as required for long term leases, loan funding and servicing activities, and cash that investors have on our marketplace that has not yet been invested in Borrower Loans or disbursed to the investor.
Borrower Loans, Loans Held for Sale and Notes	Borrower Loans, Loans Held for Sale and Notes With respect to the Note Channel, PFL purchases Borrower Loans from WebBank, then issues Notes and holds the Borrower Loans until maturity. The obligation to repay a series of Notes funded through the Note Channel is dependent upon the repayment of the associated Borrower Loan. Borrower Loans and Notes funded through the Note Channel are carried on PFL’s condensed consolidated balance sheets as assets and liabilities, respectively. PFL places Borrower Loans and Loans Held for Sale on non-accrual status when they are 120 days past due. When a loan is placed on non-accrual status, PFL stops accruing interest and reverses all accrued but unpaid interest as of such date. Additionally, PFL charges-off Borrower Loans and Loans Held for Sale when they are 120 days past due. The fair value of loans 120 days past due generally consists of the expected recovery from debt sales in subsequent periods. Management has elected the fair value option for Borrower Loans, Loans Held for Sale, and Notes. Changes in fair value of Borrower Loans are largely offset by the changes in fair value of Notes due to the borrower payment-dependent design of the Notes. Changes in fair value of Borrower Loans, Loans Held for Sale and Notes are included in “Change in Fair Value of Borrower Loans, Loans Held for Sale and Notes, Net” on the condensed consolidated statements of operations. PFL primarily uses a discounted cash flow model to estimate the fair value of Borrower Loans, Loans Held for Sale and Notes. The key assumptions used in the valuation include default rates and prepayment rates derived primarily from historical performance and discount rates based on estimates of the rates of return that investors would require when investing in financial instruments with similar characteristics.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Standards Adopted In The Current Period No accounting standards were adopted in the current period for PFL. Accounting Standards Issued, To Be Adopted By PFL In Future Periods No issued and pending accounting standards were identified that are expected to have an impact on PFL.

XML 44 R32.htm IDEA: XBRL DOCUMENT

PROPERTY AND EQUIPMENT, NET (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Property and Equipment

Property and Equipment consists of the following at the dates presented (in thousands):


	June 30, 2023		December 31, 2022
Internal-use software and website development costs	$	53,804	$	49,818
Operating lease right-of-use assets	24,449		27,051
Computer equipment	14,281		13,444
Leasehold improvements	6,805		7,157
Office equipment and furniture	2,928		2,810
Assets not yet placed in service	7,293		5,877
Property and equipment	109,560		106,157
Less: Accumulated depreciation and amortization	(69,908)		(67,343)
Total Property and Equipment, Net	$	39,652	$	38,814

Schedule of Property and Equipment

Property and equipment consist of the following as of the dates presented (in thousands):


	June 30, 2023		December 31, 2022
Internal-use software and web site development costs	$	40,864	$	37,428
Less accumulated depreciation and amortization	(29,891)		(27,424)
Total property and equipment, net	$	10,973	$	10,004

XML 45 R33.htm IDEA: XBRL DOCUMENT

BORROWER LOANS, LOANS HELD FOR SALE AND NOTES, AT FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Borrower Loans, Notes and Loans Held for Sale


	Borrower Loans				Loans Held for Sale				Notes
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Aggregate principal balance and interest outstanding	$	349,738	$	333,294	$	540,211	$	512,076	$	351,442	$	336,555
Fair value adjustments	(15,479)		(12,652)		(22,430)		(12,311)		(20,695)		(17,851)
Fair value	$	334,259	$	320,642	$	517,781	$	499,765	$	330,747	$	318,704

Schedule of Borrower Loans, Notes and Loans Held for Sale

The aggregate principal balances outstanding and fair values of Borrower Loans and Notes as of June 30, 2023 and December 31, 2022, are presented in the following table (in thousands):


	Borrower Loans				Notes
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Aggregate principal balance outstanding and interest outstanding	$	349,738	$	333,294	$	351,442	$	336,555
Fair value adjustments	(15,479)		(12,652)		(20,695)		(17,851)
Fair value	$	334,259	$	320,642	$	330,747	$	318,704

XML 46 R34.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value

The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands):


June 30, 2023	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Loans Held for Sale at Fair Value	$	—	$	—	$	517,781	$	517,781
Borrower Loans, at Fair Value	—		—		334,259		334,259
SOFR rate swaption (Note 10)	—		707		—		707
Servicing Assets	—		—		12,833		12,833
Credit Card Derivative (Note 5)	—		—		19,542		19,542
Total Assets	$	—	$	707	$	884,415	$	885,122
Liabilities:
Notes, at Fair Value	$	—	$	—	$	330,747	$	330,747

Convertible Preferred Stock Warrant Liability	—		—		194,070		194,070
Loan Trailing Fee Liability (Note 9)	—		—		3,294		3,294
Credit Card servicing obligation liability (Note 5)	—		—		5,769		5,769
Total Liabilities	$	—	$	—	$	533,880	$	533,880


December 31, 2022	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Loans Held for Sale at Fair Value	$	—	$	—	$	499,765	$	499,765
Borrower Loans, at Fair Value	—		—		320,642		320,642
LIBOR rate swaption (Note 10)	—		1,289		—		1,289
Servicing Assets	—		—		12,562		12,562
Credit Card Derivative (Note 5)	$	—	$	—	10,782		10,782
Total Assets	$	—	$	1,289	$	843,751	$	845,040
Liabilities:
Notes, at Fair Value	$	—	$	—	$	318,704	$	318,704

Convertible Preferred Stock Warrant Liability	—		—		166,346		166,346
Loan Trailing Fee Liability (Note 9)	—		—		3,290		3,290
Credit Card servicing obligation liability (Note 5)	$	—	$	—	3,720		3,720
Total Liabilities	$	—	$	—	$	492,060	$	492,060

Schedule of Quantitative Information About Significant Unobservable Inputs


	Range
Borrower Loans, Loans Held for Sale and Notes:	June 30, 2023	December 31, 2022
Discount rate	6.2% - 14.0%	5.4% - 13.2%
Default rate	1.6% - 18.7%	1.8% - 18.7%


	Range
Servicing Assets:	June 30, 2023	December 31, 2022
Discount rate	15.0% - 25.0%	15.0% - 25.0%
Default rate	1.8% - 18.9%	2.0% - 19.3%
Prepayment rate	12.2% - 29.6%	14.2% - 28.0%
Market servicing rate (1) (2)	0.648% - 0.842%	0.648% - 0.842%


	Range
Loan Trailing Fee Liability:	June 30, 2023	December 31, 2022
Discount rate	15.0% - 25.0%	15.0% - 25.0%
Default rate	1.8% - 18.9%	2.0% - 19.3%
Prepayment rate	12.2% - 29.6%	14.2% - 28.0%

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present additional information about Level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis (in thousands):


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held For Sale		Notes		Total
Balance at January 1, 2023	$	320,642	$	499,765	$	(318,704)	$	501,703
Purchase of Borrower Loans/Issuance of Notes	125,796		1,098,861		(123,543)		1,101,114
Principal repayments	(92,362)		(129,255)		93,867		(127,750)
Borrower Loans sold to third parties	(1,954)		(928,574)		—		(930,528)
Other changes	196		575		(262)		509
Change in fair value	(18,059)		(23,591)		17,895		(23,755)

Balance at June 30, 2023	$	334,259	$	517,781	$	(330,747)	$	521,293


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at January 1, 2022	$	267,626	$	243,170	$	(265,985)	$	244,811
Purchase of Borrower Loans/Issuance of Notes	143,785		1,292,648		(144,310)		1,292,123
Principal repayments	(96,956)		(83,180)		97,729		(82,407)
Borrower Loans sold to third parties	(824)		(1,130,873)		—		(1,131,697)
Other changes	153		359		(112)		400
Change in fair value	(11,891)		(9,431)		12,157		(9,165)

Balance at June 30, 2022	$	301,893	$	312,693	$	(300,521)	$	314,065


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held For Sale		Notes		Total
Balance at April 1, 2023	$	330,407	$	553,095	$	(327,686)	$	555,816
Purchase of Borrower Loans/Issuance of Notes	61,887		529,059		(60,901)		530,045
Principal repayments	(46,875)		(65,754)		47,583		(65,046)
Borrower Loans sold to third parties	(1,001)		(484,305)		—		(485,306)
Other changes	91		(188)		(209)		(306)
Change in fair value	(10,250)		(14,126)		10,466		(13,910)

Balance at June 30, 2023	$	334,259	$	517,781	$	(330,747)	$	521,293


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held For Sale		Notes		Total
Balance at April 1, 2022	$	281,624	$	284,123	$	(280,674)	$	285,073
Purchase of Borrower Loans/Issuance of Notes	76,891		803,326		(76,581)		803,636
Principal repayments	(48,746)		(43,734)		48,977		(43,503)
Borrower Loans sold to third parties	(489)		(724,595)		—		(725,084)
Other changes	90		79		(159)		10
Change in fair value	(7,477)		(6,506)		7,916		(6,067)

Balance at June 30, 2022	$	301,893	$	312,693	$	(300,521)	$	314,065

Schedule of Servicing Assets and Liabilities Measured at Fair Value


	Servicing Assets
Balance at January 1, 2023	$	12,562
Additions	4,867
Less: Changes in fair value	(4,596)
Balance at June 30, 2023	$	12,833


	Servicing Assets
Balance at January 1, 2022	$	8,761
Additions	5,677
Less: Changes in fair value	(4,115)
Balance at June 30, 2022	$	10,323


	Servicing Assets
Balance at April 1, 2023	$	12,716
Additions	2,554
Less: Changes in fair value	(2,437)
Balance at June 30, 2023	$	12,833


	Servicing Assets
Balance at April 1, 2022	$	8,680
Additions	3,696
Less: Changes in fair value	(2,053)
Balance at June 30, 2022	$	10,323


	Credit Card Derivative
Balance at January 1, 2023	$	10,782
Changes in fair value	8,760
Losses from settled transactions	(1,019)
Add: Net payments made	1,019
Balance at June 30, 2023	$	19,542


	Credit Card Derivative
Balance at January 1, 2022	$	7
Changes in fair value	3,863
Gains from settled transactions	577
Add: Net payments made	414
Balance at June 30, 2022	$	4,861


	Credit Card Derivative
Balance at April 1, 2023	$	16,883
Changes in fair value	2,659
Gains from settled transactions	454
Less: Net payments received	(454)
Balance at June 30, 2023	$	19,542


	Credit Card Derivative
Balance at April 1, 2022	$	885
Changes in fair value	2,985
Gains from settled transactions	351
Add: Net payments made	640
Balance at June 30, 2022	$	4,861


	Credit Card Servicing Obligation Liability





Fair Value at January 1, 2023	$	3,720
Change in fair value	2,049
Fair Value at June 30, 2023	$	5,769


	Credit Card Servicing Obligation Liability





Fair Value at January 1, 2022	$	—
Change in fair value	1,246
Fair Value at June 30, 2022	$	1,246


	Credit Card Servicing Obligation Liability





Fair Value at April 1, 2023	$	4,626
Change in fair value	1,143
Fair Value at June 30, 2023	$	5,769


	Credit Card Servicing Obligation Liability





Fair Value at April 1, 2022	$	188
Change in fair value	1,058
Fair Value at June 30, 2022	$	1,246


	Convertible Preferred Stock Warrant Liability
Balance as of January 1, 2023	$	166,346

Change in fair value	27,724
Balance as of June 30, 2023	$	194,070


	Convertible Preferred Stock Warrant Liability
Balance as of January 1, 2022	$	250,941

Change in fair value	(77,486)
Balance as of June 30, 2022	$	173,455


	Convertible Preferred Stock Warrant Liability
Balance as of April 1, 2023	$	162,081

Change in fair value	31,989
Balance as of June 30, 2023	$	194,070


	Convertible Preferred Stock Warrant Liability
Balance as of April 1, 2022	$	217,530

Change in fair value	(44,075)
Balance as of June 30, 2022	$	173,455

Schedule of Level 3 Liabilities Measured on Recurring Basis


	Loan Trailing Fee Liability
Balance at January 1, 2023	$	3,290
Issuances	1,132
Cash Payment of Loan Trailing Fee	(1,406)
Change in Fair Value	278
Balance at June 30, 2023	$	3,294


	Loan Trailing Fee Liability
Balance at January 1, 2022	$	2,161
Issuances	1,322
Cash Payment of Loan Trailing Fee	(1,010)
Change in Fair Value	101
Balance at June 30, 2022	$	2,574


	Loan Trailing Fee Liability
Balance at April 1, 2023	$	3,308
Issuances	543
Cash Payment of Loan Trailing Fee	(698)
Change in Fair Value	141
Balance at June 30, 2023	$	3,294


	Loan Trailing Fee Liability
Balance at April 1, 2022	$	2,194
Issuances	820
Cash Payment of Loan Trailing Fee	(500)
Change in Fair Value	60
Balance at June 30, 2022	$	2,574

Schedule of Fair Value Assumptions


Borrower Loans and Loans Held for Sale	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	852,040		$	820,407
Weighted-average discount rate	8.29		%	6.72		%
Weighted-average default rate	9.83		%	9.31		%

Fair value resulting from:
100 basis point increase in discount rate	$	843,644		$	812,061
200 basis point increase in discount rate	$	835,457		$	803,927
Fair value resulting from:
100 basis point decrease in discount rate	$	860,653		$	828,975
200 basis point decrease in discount rate	$	869,490		$	837,773

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	842,390		$	810,657
Applying a 1.2 multiplier to default rate	$	832,812		$	800,989
Fair value resulting from:
Applying a 0.9 multiplier to default rate	$	861,763		$	830,238
Applying a 0.8 multiplier to default rate	$	871,566		$	840,156


Notes	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	330,747		$	318,704
Weighted-average discount rate	8.31		%	6.87		%
Weighted-average default rate	11.69		%	11.36		%

Fair value resulting from:
100 basis point increase in discount rate	$	327,482		$	315,456
200 basis point increase in discount rate	$	324,299		$	312,291
Fair value resulting from:
100 basis point decrease in discount rate	$	334,095		$	322,037
200 basis point decrease in discount rate	$	337,532		$	325,461

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	326,971		$	314,892
Applying a 1.2 multiplier to default rate	$	323,223		$	311,112
Fair value resulting from:
Applying a 0.9 multiplier to default rate	$	334,551		$	322,547
Applying a 0.8 multiplier to default rate	$	338,387		$	326,425

Schedule Of Estimated Fair Value Of Sensitivity Assets And Liabilities


Servicing Assets	June 30, 2023			December 31, 2022
Fair value, using the following assumptions	$	12,833		$	12,562
Weighted-average market servicing rate	0.65		%	0.65		%
Weighted-average prepayment rate	18.60		%	18.47		%
Weighted-average default rate	12.89		%	13.38		%

Fair value resulting from:
Market servicing rate increase of 0.025%	$	11,986		$	11,708
Market servicing rate decrease of 0.025%	$	13,679		$	13,415

Fair value resulting from:
Applying a 1.1 multiplier to prepayment rate	$	12,552		$	12,286
Applying a 0.9 multiplier to prepayment rate	$	13,118		$	12,842

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	12,598		$	12,305
Applying a 0.9 multiplier to default rate	$	13,069		$	12,820


Credit Card servicing obligation liability:	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	5,769			3,720
Discount rate on Credit Card portfolio servicing obligation	8.60		%	9.26		%

Prepayment rate applied to Credit Card portfolio	9.19		%	10.08		%
Default rate applied to Credit Card portfolio	15.17		%	13.34		%
Market servicing rate	2.00		%	2.00		%

Fair value resulting from:
Market servicing rate increase of 0.10%	$	6,078		$	3,919
Market servicing rate decrease of 0.10%	$	5,461		$	3,521




Fair value resulting from:
Applying a 1.1 multiplier to prepayment rate	$	5,689		$	3,662
Applying a 0.9 multiplier to prepayment rate	$	5,851		$	3,779

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	5,619		$	3,636
Applying a 0.9 multiplier to default rate	$	5,924		$	3,806

Schedule of Derivative Assets Measured at Fair Value


Credit Card Derivative	June 30, 2023			December 31, 2022
Fair value, based on the following notional amount and rate assumptions:	$	19,542		$	10,782
Prosper Allocations outstanding	159,956			102,392
Discount rate on Prosper Allocations	24.46		%	26.23		%
Discount rate on Coastal Program Fee	8.60		%	9.26		%
Prepayment rate applied to Credit Card portfolio	9.19		%	10.08		%
Default rate applied to Credit Card portfolio	15.17		%	13.34		%

Fair value resulting from:
100 basis point increase in both discount rates	$	19,339		$	10,699
200 basis point increase in both discount rates	$	19,141		$	10,618
Fair value resulting from:
100 basis point decrease in both discount rates	$	19,749		$	10,866
200 basis point decrease in both discount rates	$	19,961		$	10,951

Fair value resulting from:
Applying a 1.1 multiplier to prepayment rate	$	19,259		$	10,625
Applying a 0.9 multiplier to prepayment rate	$	19,829		$	10,942

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	15,048		$	8,001
Applying a 0.9 multiplier to default rate	$	24,175		$	13,641

Schedule of Financial Instruments, Assets And Liabilities Not Recorded at Fair Value

The following table presents the fair value hierarchy for assets, and liabilities not recorded at fair value (in thousands):


June 30, 2023	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Cash and Cash Equivalents	$	43,830	$	43,830	$	—	$	—	$	43,830
Restricted Cash - Cash and Cash Equivalents	108,358		108,358		—		—		108,358
Restricted Cash - Certificates of Deposit	3,027		—		3,027		—		3,027
Accounts Receivable	5,084		—		5,084		—		5,084
Total Assets	$	160,299	$	152,188	$	8,111	$	—	$	160,299
Liabilities:
Accounts Payable and Accrued Liabilities	$	41,283	$	—	$	41,283	$	—	$	41,283
Payable to Investors	75,134		—		75,134		—		75,134

Warehouse Lines	474,662		—		475,008		—		475,008

Term Loan (Note 10)	74,293		—		76,978		—		76,978
Total Liabilities	$	665,372	$	—	$	668,403	$	—	$	668,403


December 31, 2022	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Cash and Cash Equivalents	$	83,446	$	83,446	$	—	$	—	$	83,446
Restricted Cash - Cash and Cash Equivalents	108,284		108,284		—		—		108,284
Restricted Cash - Certificates of Deposit	4,879		—		4,879		—		4,879
Accounts Receivable	3,462		—		3,462		—		3,462
Total Assets	$	200,071	$	191,730	$	8,341	$	—	$	200,071
Liabilities:
Accounts Payable and Accrued Liabilities	$	37,254	$	—	$	37,254	$	—	$	37,254
Payable to Investors	85,312		—		85,312		—		85,312
Warehouse Lines	446,762		—		444,329		—		444,329
Term Loan (Note 10)	73,407		—		76,191		—		76,191
Total Liabilities	$	642,735	$	—	$	643,086	$	—	$	643,086

Schedule of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value

The following tables present the fair value hierarchy for assets and liabilities measured at fair value (in thousands):


June 30, 2023	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Borrower Loans, at Fair Value	$	—	$	—	$	334,259	$	334,259
Servicing Assets	—		—		15,148		15,148
Total Assets	$	—	$	—	$	349,407	$	349,407
Liabilities:
Notes, at Fair Value	$	—	$	—	$	330,747	$	330,747

Loan Trailing Fee Liability	—		—		3,294		3,294
Total Liabilities	$	—	$	—	$	334,041	$	334,041


December 31, 2022	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Borrower Loans, at Fair Value	$	—	$	—	$	320,642	$	320,642
Servicing Assets	—		—		14,860		14,860
Total Assets	$	—	$	—	$	335,502	$	335,502
Liabilities:
Notes, at Fair Value	$	—	$	—	$	318,704	$	318,704

Loan Trailing Fee Liability	—		—		3,290		3,290
Total Liabilities	$	—	$	—	$	321,994	$	321,994

Schedule of Quantitative Information About Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs used for PFL’s Level 3 fair value measurements at the dates presented:


	Range
Borrower Loans and Notes	June 30, 2023	December 31, 2022
Discount rate	6.9% - 13.7%	5.6% - 12.9%
Default rate	1.8% - 18.7%	1.8% - 18.2%


	Range
Servicing Assets	June 30, 2023	December 31, 2022
Discount rate	15.0% - 25.0%	15.0% - 25.0%
Default rate	1.6% - 18.9%	2.0% - 19.3%
Prepayment rate	12.2% - 29.6%	14.2% - 28.0%
Market servicing rate (1) (2)	0.648% - 0.842%	0.648% - 0.842%


	Range
Loan Trailing Fee Liability	June 30, 2023	December 31, 2022
Discount rate	15.0% - 25.0%	15.0% - 25.0%
Default rate	1.6% - 18.9%	2.0% - 19.3%
Prepayment rate	12.2% - 29.6%	14.2% - 28.0%

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present additional information about Level 3 Borrower Loans, Loans Held for Sale and Notes measured at fair value on a recurring basis (in thousands):


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at January 1, 2023	$	320,642	$	—	$	(318,704)	$	1,938
Originations	125,796		1,098,861		(123,543)		1,101,114
Principal repayments	(92,362)		—		93,867		1,505
Borrower Loans sold to third parties	(1,954)		(1,098,861)		—		(1,100,815)
Other changes	196		—		(262)		(66)
Change in fair value	(18,059)		—		17,895		(164)

Balance at June 30, 2023	$	334,259	$	—	$	(330,747)	$	3,512


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at January 1, 2022	$	267,626	$	—	$	(265,985)	$	1,641
Originations	143,785		1,292,648		(144,310)		1,292,123
Principal repayments	(96,956)		—		97,729		773
Borrower Loans sold to third parties	(824)		(1,292,648)		—		(1,293,472)
Other changes	153		—		(112)		41
Change in fair value	(11,891)		—		12,157		266
Balance at June 30, 2022	$	301,893	$	—	$	(300,521)	$	1,372


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at April 1, 2023	$	330,407	$	—	$	(327,686)	$	2,721
Originations	61,887		529,059		(60,901)		530,045
Principal repayments	(46,875)		—		47,583		708
Borrower Loans sold to third parties	(1,001)		(529,059)		—		(530,060)
Other changes	91		—		(209)		(118)
Change in fair value	(10,250)		—		10,466		216

Balance at June 30, 2023	$	334,259	$	—	$	(330,747)	$	3,512


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets				Liabilities
	Borrower Loans		Loans Held for Sale		Notes		Total
Balance at April 1, 2022	$	281,624	$	—	$	(280,674)	$	950
Originations	76,891		803,326		(76,581)		803,636
Principal repayments	(48,746)		—		48,977		231
Borrower Loans sold to third parties	(489)		(803,326)		—		(803,815)
Other changes	90		—		(159)		(69)
Change in fair value	(7,477)		—		7,916		439
Balance at June 30, 2022	$	301,893	$	—	$	(300,521)	$	1,372

Schedule of Servicing Assets and Liabilities Measured at Fair Value

The following tables present additional information about Level 3 Servicing Assets recorded at fair value (in thousands):


	Servicing Assets
Balance as of January 1, 2023	$	14,860
Additions	5,724
Less: Changes in fair value	(5,436)
Balance as of June 30, 2023	$	15,148


	Servicing Assets
Balance as of January 1, 2022	$	9,796
Additions	6,480
Less: Changes in fair value	(4,577)
Balance as of June 30, 2022	$	11,699


	Servicing Assets
Balance as of April 1, 2023	$	15,249
Additions	2,785
Less: Changes in fair value	(2,886)
Balance as of June 30, 2023	$	15,148


	Servicing Assets
Balance as of April 1, 2022	$	9,910
Additions	4,090
Less: Changes in fair value	(2,301)
Balance as of June 30, 2022	$	11,699

Loan Trailing Fee Liability

The following tables present additional information about Level 3 Loan Trailing Fee Liability measured at fair value on a recurring basis (in thousands):


	Loan Trailing Fee Liability
Balance as of January 1, 2023	$	3,290
Issuances	1,132
Cash payment of Loan Trailing Fee	(1,406)
Change in fair value	278
Balance as of June 30, 2023	$	3,294


	Loan Trailing Fee Liability
Balance as of January 1, 2022	$	2,161
Issuances	1,322
Cash payment of Loan Trailing Fee	(1,010)
Change in fair value	101
Balance as of June 30, 2022	$	2,574


	Loan Trailing Fee Liability
Balance as of April 1, 2023	3,308
Issuances	543
Cash payment of Loan Trailing Fee	(698)
Change in fair value	141
Balance as of June 30, 2023	$	3,294


	Loan Trailing Fee Liability
Balance as of April 1, 2022	2,194
Issuances	820
Cash payment of Loan Trailing Fee	(500)
Change in fair value	60
Balance as of June 30, 2022	$	2,574

Schedule of Fair Value Assumptions


Borrower Loans:	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	334,259		$	320,642
Weighted-average discount rate	8.31		%	6.87		%
Weighted-average default rate	11.69		%	11.36		%

Fair value resulting from:
100 basis point increase in discount rate	$	330,965		$	317,380
200 basis point increase in discount rate	$	327,753		$	314,201
Fair value resulting from:
100 basis point decrease in discount rate	$	337,638		$	323,991
200 basis point decrease in discount rate	$	341,104		$	327,429

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	330,473		$	316,832
Applying a 1.2 multiplier to default rate	$	326,716		$	313,053
Fair value resulting from:
Applying a 0.9 multiplier to default rate	$	338,073		$	324,484
Applying a 0.8 multiplier to default rate	$	341,919		$	328,361


Notes	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	330,747		$	318,704
Weighted-average discount rate	8.31		%	6.87		%
Weighted-average default rate	11.69		%	11.36		%

Fair value resulting from:
100 basis point increase in discount rate	$	327,482		$	315,456
200 basis point increase in discount rate	$	324,299		$	312,291
Fair value resulting from:
100 basis point decrease in discount rate	$	334,095		$	322,037
200 basis point decrease in discount rate	$	337,532		$	325,461

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	326,971		$	314,892
Applying a 1.2 multiplier to default rate	$	323,223		$	311,112
Fair value resulting from:
Applying a 0.9 multiplier to default rate	$	334,551		$	322,547
Applying a 0.8 multiplier to default rate	$	338,387		$	326,425

Schedule Of Estimated Fair Value Of Sensitivity Assets And Liabilities


Servicing Assets	June 30, 2023			December 31, 2022
Fair value, using the following assumptions:	$	15,148		$	14,860
Weighted-average market servicing rate	0.650		%	0.649		%
Weighted-average prepayment rate	18.93		%	18.77		%
Weighted-average default rate	12.28		%	12.63		%

Fair value resulting from:
Market servicing rate increase of 0.025%	$	14,149		$	13,850
Market servicing rate decrease of 0.025%	$	16,147		$	15,870

Fair value resulting from:
Applying a 1.1 multiplier to prepayment rate	$	14,816		$	14,534
Applying a 0.9 multiplier to prepayment rate	$	15,485		$	15,191

Fair value resulting from:
Applying a 1.1 multiplier to default rate	$	14,871		$	14,557
Applying a 0.9 multiplier to default rate	$	15,426		$	15,165

XML 47 R35.htm IDEA: XBRL DOCUMENT

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Other Intangible Assets for the Period Presented

The following table presents the detail of other intangible assets subject to amortization as of the following date (dollars in thousands):


	June 30, 2023
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Remaining Useful Life (In Years)
Developed technology	$	3,060	$	(3,060)	$	—	—
User base and customer relationships	5,050		(4,911)		139		1.8
Brand name	60		(60)		—		—
Total Intangible Assets subject to amortization	$	8,170	$	(8,031)	$	139

Summary of Estimated Amortization of Purchased Intangible Assets

Estimated amortization of purchased intangible assets for future periods is as follows (in thousands):


Year Ending December 31,

2023 (remainder thereof)	$	54
2024	85
Total	$	139

XML 48 R36.htm IDEA: XBRL DOCUMENT

OTHER LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2023

Other Liabilities [Abstract]

Schedule of Other Liabilities

Other Liabilities consist of the following (in thousands):


	June 30, 2023		December 31, 2022
Operating lease liabilities (Note 15)	$	15,627	$	16,351
Deferred revenue	5,501		3,880
Credit Card servicing obligation liability (Note 5)	5,769		3,720
Loan trailing fee liability	3,294		3,290
Deferred income tax liability	658		658





Other	432		359
Total Other Liabilities	$	31,281	$	28,258

XML 49 R37.htm IDEA: XBRL DOCUMENT

NET INCOME (LOSS) PER SHARE (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Income (Loss) Per Share

Basic and diluted net income (loss) per share were calculated as follows for the periods presented (in thousands, except share and per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net (Loss) Income	$	(52,770)	$	42,665	$	(61,860)	$	79,297

Less: Net Income Allocated to Participating Securities	—		(28,663)		—		(53,352)
Net (Loss) Income Attributable to Common Stockholders	$	(52,770)	$	14,002	$	(61,860)	$	25,945
Denominator:
Weighted average shares used in computing basic net income (loss) per share	75,777,502		72,971,346		75,483,899		72,643,221
Effect of dilutive securities:
Stock options	—		58,531,983		—		62,524,031
Warrants	—		569,216		—		645,574
Convertible preferred stock warrants	—		213,264,845		—		213,264,845
Weighted average shares used in computing diluted Net Income (Loss) per Share	75,777,502		345,337,390		75,483,899		349,077,671
Net (Loss) Income Per Share – Basic	$	(0.70)	$	0.19	$	(0.82)	$	0.36
Net (Loss) Income Per Share – Diluted	$	(0.70)	$	0.04	$	(0.82)	$	0.07

Schedule of Dilutive Shares Excluded from the Diluted Net Income (Loss) Per Share Calculation

The following common stock equivalents were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been anti-dilutive:


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
	(shares)	(shares)	(shares)	(shares)
Excluded securities:
Convertible preferred stock issued and outstanding, excluding shares held by consolidated VIE	158,365,655	158,365,655	158,365,655	158,365,655
Stock options issued and outstanding	80,918,455	12,880,655	80,519,177	14,355,673


Warrants issued and outstanding	1,080,349	511,133	1,080,349	434,775
Series E-1 convertible preferred stock warrants	35,544,141	—	35,544,141	—
Series F convertible preferred stock warrants	177,720,704	—	177,720,704	—
Total common stock equivalents excluded from diluted net (loss) income per common share computation	453,629,304	171,757,443	453,230,026	173,156,103

XML 50 R38.htm IDEA: XBRL DOCUMENT

CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY AND COMMON STOCK (Tables)

6 Months Ended

Jun. 30, 2023

Stockholders' Equity Note [Abstract]

Schedule of Shares Authorized, Issued, Outstanding, Par Value and Liquidation Preference of Convertible Preferred Stock


Convertible Preferred Stock	Par Value		Authorized Shares	Outstanding and Issued Shares		Liquidation Preference, Outstanding Shares
Series A	$	0.01	68,558,220	66,428,185	*	$	19,160
Series A-1	$	0.01	24,760,915	22,515,315		45,031
Series B	$	0.01	35,775,880	35,127,160	*	21,190
Series C	$	0.01	24,404,770	24,404,770		70,075
Series D	$	0.01	23,888,640	23,888,640		165,000
Series E-1	$	0.01	35,544,141	—		—
Series E-2	$	0.01	16,858,078	—		—
Series F	$	0.01	177,720,707	3		—
Series G	$	0.01	37,249,497	37,249,497		50,000
Total			444,760,848	209,613,570		$	370,456

* Series A and Series B Convertible Preferred Stock totals are inclusive of 34,670,420 and 16,577,495 shares, respectively, held by PGT, a consolidated VIE.

Schedule of Assumptions Used

The Company determined the fair value of the outstanding Series E-1 preferred stock warrants utilizing the following assumptions as of the following dates:


	June 30, 2023		December 31, 2022
Volatility	70.0	%	72.0	%
Risk-free interest rate	4.60	%	4.30	%
Expected term (in years)	2.75		2.75
Dividend yield	—	%	—	%

The Company determined the fair value of the outstanding Series F Warrants utilizing the following assumptions as of the following dates:


	June 30, 2023		December 31, 2022
Volatility	70.0	%	72.0	%
Risk-free interest rate	4.60	%	4.30	%
Expected term (in years)	2.75		2.75
Dividend yield	—	%	—	%

XML 51 R39.htm IDEA: XBRL DOCUMENT

STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Summarized Option Activity under Option Plan

Stock option activity under the 2005 Plan and 2015 Plan is summarized for the six months ended June 30, 2023 below:


	Options Issued and Outstanding	Weighted Average Exercise Price
Balance as of January 1, 2023	77,727,763	$	0.13
Options issued	9,866,430	$	0.33
Options exercised	(2,313,011)	$	0.03
Options forfeited	(1,976,618)	$	0.38

Balance as of June 30, 2023	83,304,564	$	0.15
Options vested and expected to vest as of June 30, 2023	75,260,753	$	0.15
Options vested and exercisable as of June 30, 2023	57,273,400	$	0.07

Schedule of Fair Value of Stock Option Awards


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Volatility of common stock	66.59	%	68.50	%	66.62	%	66.95	%
Risk-free interest rate	3.34	%	2.93	%	3.44	%	2.57	%
Expected life (in years)	6.1 years		6.0 years		6.1 years		6.0 years
Dividend yield	—	%	—	%	—	%	—	%

Schedule of Restricted Stock Unit

The following table summarizes the number of PMI’s RSU activity for six months ended June 30, 2023:


	Number of Shares		Weighted-Average Grant Date Fair Value
Unvested at January 1, 2013	2,602,383		$	1.04



Forfeited	(250)		2.18

Unvested at June 30, 2023	$	2,602,133	$	1.04

Schedule of Stock Based Compensation Included in Consolidated Statements of Operations


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Origination and servicing	$	23	$	35	$	45	$	63
Sales and marketing	67		173		103		201
General and administrative	314		296		624		535
Total stock-based compensation	$	404	$	504	$	772	$	799

XML 52 R40.htm IDEA: XBRL DOCUMENT

LEASES (Tables)

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Summary of Operating Lease Right-of-Use Assets

The following table summarizes the operating lease right-of-use assets as of June 30, 2023, which are included in “Property and Equipment, Net” on the condensed consolidated balance sheets.


	June 30, 2023
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
ROU Assets - Office buildings	$	23,549	$	10,742	$	12,807
ROU Assets - Other	900		866		34
Total right-of-use assets subject to amortization	$	24,449	$	11,608	$	12,841

Schedule of Future Minimum Lease Payments


	June 30, 2023
Remainder of 2023	$	2,131
2024	4,391
2025	4,517
2026	4,432
2027	3,311
Thereafter	1,411
Total future minimum lease payments	$	20,193
Less imputed interest	(4,566)
Present value of future minimum lease payments	$	15,627

Summary of Other Information Related to Leases

Other information related to leases was as follows (dollars in thousands):


	June 30, 2023


Weighted average remaining lease term (in years)	4.49 years
Weighted average discount rate	11.24	%

XML 53 R41.htm IDEA: XBRL DOCUMENT

RELATED PARTIES (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Aggregate Amount of Notes Purchased and the Income Earned


	Aggregate Amount of Notes Purchased the Three Months Ended June 30,				Interest Earned on Notes the Three Months Ended June 30,
Related Party	2023		2022		2023		2022
Executive officers and management	$	9	$	10	$	2	$	2
Directors (excluding executive officers and management)	—		—		—		—
Total	$	9	$	10	$	2	$	2


	Aggregate Amount of Notes Purchased the Six Months Ended June 30,				Interest Earned on Notes the Six Months Ended June 30,
Related Party	2023		2022		2023		2022
Executive officers and management	$	17	$	19	$	4	$	4
Directors (excluding executive officers and management)	—		—		—		1
Total	$	17	$	19	$	4	$	5


	Notes Balance as of
Related Party	June 30, 2023		December 31, 2022
Executive officers and management	$	53	$	52
Directors (excluding executive officers and management)	3		6
Total	$	56	$	58

Schedule of Aggregate Amount of Notes Purchased and the Income Earned


	Aggregate Amount of Notes Purchased				Interest Earned on Notes
	Three Months Ended June 30,				Three Months Ended June 30,
Related Party	2023		2022		2023		2022
Executive officers and management	$	8	$	9	$	2	$	2
Directors (excluding executive officers and management)	—		—		—		—
Total	$	8	$	9	$	2	$	2


	Aggregate Amount of Notes Purchased				Interest Earned on Notes
	Six Months Ended June 30,				Six Months Ended June 30,
Related Party	2023		2022		2023		2022
Executive officers and management	$	15	$	18	$	4	$	3
Directors (excluding executive officers and management)	—		—		—		—
Total	$	15	$	18	$	4	$	3

The balance of Notes held by officers and directors who are not executive officers are as follows (in thousands):


	Notes Balance as of
Related Party	June 30, 2023		December 31, 2022
Executive officers and management	$	46	$	45
Directors (excluding executive officers and management)	—		—
Total	$	46	$	45

XML 54 R42.htm IDEA: XBRL DOCUMENT

SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment


	Three Months Ended June 30, 2023
	Personal Loan		Home Equity		Credit Card		Total
Total Net Revenue	$	25,737	$	364	$	5,430	$	31,531
Impact of interest rates on fair value of loans held in consolidated trusts	6,037		—		—		6,037
Segment Adjusted Net Revenue	$	31,774	$	364	$	5,430	$	37,568


Segment Adjusted EBITDA	$	(5,551)	$	(889)	$	(2,460)	$	(8,900)
Depreciation expense:
Origination and Servicing							(2,340)
General and Administration - Other							(492)
Amortization of intangibles							(27)
Stock-based compensation							(404)
Change in Fair Value of Convertible Preferred Stock Warrants							(31,989)
Impact of interest rates on fair value of loans held in consolidated trusts							(6,037)
Interest income on cash and cash equivalents							358
Interest Expense on Term Loan							(2,869)
Net Loss Before Income Taxes							$	(52,700)

Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale	$	30,366	$	—	$	—	$	30,366
Interest Expense on Financial Instruments	(23,404)		—		—		(23,404)
Total Interest Income, Net	$	6,962	$	—	$	—	$	6,962


	Three Months Ended June 30, 2022
	Personal Loan		Home Equity		Credit Card		Total
Total Net Revenue	$	50,962	$	1,010	$	3,289	$	55,261
Impact of interest rates on fair value of loans held in consolidated trusts	3,550		—		—		3,550
Segment Adjusted Net Revenue	$	54,512	$	1,010	$	3,289	$	58,811


Segment Adjusted EBITDA	$	9,451	$	(324)	$	(3,860)	$	5,267
Depreciation expense:
Origination and Servicing							(1,962)
General and Administration - Other							(646)
Amortization of intangibles							(34)
Stock-based compensation							(504)
Change in Fair Value of Convertible Preferred Stock Warrants							44,075

Impact of interest rates on fair value of loans held in consolidated trusts							(3,550)
Interest income on cash and cash equivalents							39
Net Income Before Income Taxes							$	42,685

Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale	$	20,579	$	—	$	—	$	20,579
Interest Expense on Financial Instruments	(14,101)		—		—		(14,101)
Total Interest Income, Net	$	6,478	$	—	$	—	$	6,478


	Six Months Ended June 30, 2023
	Personal Loan		Home Equity		Credit Card		Total
Total Net Revenue	$	59,231	$	657	$	12,015	$	71,903
Impact of interest rates on fair value of loans held in consolidated trusts	7,244		—		—		7,244
Segment Adjusted Net Revenue	$	66,475	$	657	$	12,015	$	79,147


Segment Adjusted EBITDA	(10,831)		(1,763)		(2,642)		$	(15,236)
Depreciation expense:
Origination and Servicing							(4,466)
General and Administration - Other							(1,116)
Amortization of intangibles							(54)
Stock-based compensation							(772)
Change in Fair Value of Convertible Preferred Stock Warrants							(27,724)
Impact of interest rates on fair value of loans held in consolidated trusts							(7,244)
Interest income on cash and cash equivalents							713
Interest Expense on Term Loan							(5,821)
Net Loss Before Income Taxes							$	(61,720)

Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale	$	59,385	$	—	$	—	$	59,385
Interest Expense on Financial Instruments	(44,563)		—		—		(44,563)
Total Interest Income, Net	$	14,822	$	—	$	—	$	14,822


	Six Months Ended June 30, 2022
	Personal Loan		Home Equity		Credit Card		Total
Total Net Revenue	$	88,075	$	1,349	$	4,430	$	93,854
Impact of interest rates on fair value of loans held in consolidated trusts	5,334		—		—		5,334
Segment Adjusted Net Revenue	$	93,409	$	1,349	$	4,430	$	99,188


Segment Adjusted EBITDA	13,197		(1,132)		(7,392)		$	4,673
Depreciation expense:
Origination and Servicing							(3,980)
General and Administration - Other							(1,287)
Amortization of intangibles							(68)
Stock-based compensation							(799)
Change in Fair Value of Convertible Preferred Stock Warrants							77,486
Gain on Forgiveness of PPP Loan							8,604
Impact of interest rates on fair value of loans held in consolidated trusts							(5,334)
Interest income on cash and cash equivalents							42
Net Income Before Income Taxes							$	79,337

Interest Income (Expense) Included in Segment Adjusted EBITDA
Interest Income on Borrower Loans and Loans Held for Sale	$	38,662	$	—	$	—	$	38,662
Interest Expense on Financial Instruments	(25,870)		—		—		(25,870)
Total Interest Income, Net	$	12,792	$	—	$	—	$	12,792

XML 55 R43.htm IDEA: XBRL DOCUMENT

PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Total Property and Equipment, Net	Total Property and Equipment, Net
Property and equipment	$ 109,560	$ 106,157
Less: Accumulated depreciation and amortization	(69,908)	(67,343)
Total Property and Equipment, Net	39,652	38,814
Prosper Funding LLC
Property, Plant and Equipment [Line Items]
Less: Accumulated depreciation and amortization	(29,891)	(27,424)
Total Property and Equipment, Net	10,973	10,004
Internal-use software and website development costs
Property, Plant and Equipment [Line Items]
Property and equipment	53,804	49,818
Internal-use software and website development costs \| Prosper Funding LLC
Property, Plant and Equipment [Line Items]
Property and equipment	40,864	37,428
Operating lease right-of-use assets
Property, Plant and Equipment [Line Items]
Operating lease right-of-use assets	24,449	27,051
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment	14,281	13,444
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	6,805	7,157
Office equipment and furniture
Property, Plant and Equipment [Line Items]
Property and equipment	2,928	2,810
Assets not yet placed in service
Property, Plant and Equipment [Line Items]
Property and equipment	$ 7,293	$ 5,877

XML 56 R44.htm IDEA: XBRL DOCUMENT

PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Line Items]
Depreciation and Amortization			$ 5,636	$ 5,335
Prosper Funding LLC
Property, Plant and Equipment [Line Items]
Depreciation and Amortization	$ 1,600	$ 1,300	3,082	2,639
Property Plant And Equipment
Property, Plant and Equipment [Line Items]
Depreciation and Amortization	2,800	2,600	5,600	5,300
Internal-use software and website development costs
Property, Plant and Equipment [Line Items]
Capitalized internal-use software and website development costs	$ 3,400	$ 2,600	$ 6,700	$ 5,300

XML 57 R45.htm IDEA: XBRL DOCUMENT

BORROWER LOANS, LOANS HELD FOR SALE AND NOTES, AT FAIR VALUE - Fair Value of Borrower Loans and Notes (Details) - USD ($)
$ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]

$ 334,259

$ 320,642

^[1]

517,781

499,765

330,747

318,704

Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]

334,259

320,642

Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]

330,747

318,704

Notes

Notes, Aggregate principal balance outstanding

351,442

336,555

Notes, Fair value adjustments

(20,695)

(17,851)

Notes | Prosper Funding LLC

330,747

318,704

Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]

Notes, Aggregate principal balance outstanding

351,442

336,555

Notes, Fair value adjustments

(20,695)

(17,851)

Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]

330,747

318,704

Borrower Loans

Borrower Loans, Aggregate principal balance outstanding

349,738

333,294

Fair value adjustments

(15,479)

(12,652)

Borrower Loans | Prosper Funding LLC

334,259

320,642

Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]

Borrower Loans, Aggregate principal balance outstanding

349,738

333,294

Fair value adjustments

(15,479)

(12,652)

Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]

334,259

320,642

Loans Held for Sale

Loans Held for Sale, Aggregate principal balance outstanding

540,211

512,076

Fair value adjustments

(22,430)

(12,311)

$ 517,781

$ 499,765

[1]


	June 30, 2023		December 31, 2022
Assets of consolidated VIEs, included in total assets above:
Restricted Cash	$	20,565	$	11,838
Loans Held for Sale, at Fair Value	517,781		499,765

Prepaid and Other Assets	3,967		3,210
Total assets of consolidated variable interest entities	$	542,313	$	514,813
Liabilities of consolidated VIEs, included in total liabilities above:


Warehouse Lines	$	474,662	$	446,762
Total liabilities of consolidated variable interest entities	$	474,662	$	446,762

XML 58 R46.htm IDEA: XBRL DOCUMENT

BORROWER LOANS, LOANS HELD FOR SALE AND NOTES, AT FAIR VALUE - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Non accrual status past due date					120 days
Total interest income, net	$ 6,962	$ 6,478	$ 14,822	$ 12,792
Borrower Loans
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Maturity term one, in months			24 months
Maturity term two, in months			36 months		36 months
Maturity term three, in months			48 months		48 months
Maturity term four, in months			60 months		60 months
Fixed interest rate, minimum			5.46%		5.31%
Fixed interest rate, maximum			33.00%		33.00%
Minimum number of days for which loans originated were delinquent			90 days		90 days
Fair value of loans originated	400		$ 400		$ 300
Loans in non-accrual status	300		300		300
Borrower Loans \| 90 days or more past due
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Aggregate principal amount	3,200		$ 3,200		$ 2,700
Loans Held for Sale
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Maturity term one, in months			24 months		24 months
Maturity term two, in months			36 months		36 months
Maturity term three, in months			48 months		48 months
Maturity term four, in months			60 months		60 months
Fixed interest rate, minimum			5.31%		5.31%
Fixed interest rate, maximum			33.00%		33.00%
Fair value of loans originated	500		$ 500		$ 200
Loans in non-accrual status	200		200		$ 200
Total interest income, net	17,100	8,900	$ 33,600	17,000
Minimum number of days for which loans held for sale were delinquent			90 days		90 days
Loans Held for Sale \| 90 days or more past due
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Aggregate principal amount	3,600		$ 3,600		$ 2,100
Prosper Funding LLC
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total interest income, net	880	$ 751	$ 1,742	$ 1,449
Prosper Funding LLC \| Borrower Loans
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Maturity term one, in months			24 months		24 months
Maturity term two, in months			36 months
Maturity term three, in months			48 months		48 months
Maturity term four, in months			60 months
Fixed interest rate, minimum			5.46%		5.31%
Fixed interest rate, maximum			33.00%		33.00%
Fair value of loans originated	400		$ 400		$ 300
Non accrual status past due date			120 days
Loans in non-accrual status	300		$ 300		300
Prosper Funding LLC \| Borrower Loans \| 90 days or more past due
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Aggregate principal amount	$ 3,200		$ 3,200		$ 2,700
Minimum \| Borrower Loans
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Maturity, in months					24 months
Minimum \| Prosper Funding LLC \| Borrower Loans
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Maturity term two, in months					36 months
Maximum \| Prosper Funding LLC \| Borrower Loans
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Maturity term four, in months					60 months

XML 59 R47.htm IDEA: XBRL DOCUMENT

CREDIT CARD (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
CREDIT CARD (Details) - USD ($) $ in Millions	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative [Line Items]
Various fees and charges	$ 4.2	$ 1.1	$ 7.6	$ 1.5
Servicing fee, percentage			1.00%
Change in fair value of servicing liability	(1.1)	1.1	$ (2.0)	1.2
Credit Card Derivative
Derivative [Line Items]
Revenue earned	2.7	3.0	8.8	3.9
Gain (loss) on settled transactions	$ 0.5	$ 0.4	$ (1.0)	$ 0.6

XML 60 R48.htm IDEA: XBRL DOCUMENT

SERVICING ASSETS (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
SERVICING ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Servicing Assets And Liabilities Fair Value [Line Items]
Gain on sale of borrower loans		$ (1,976)	$ 3,352	$ (3,366)	$ 5,031
Prosper Funding LLC
Servicing Assets And Liabilities Fair Value [Line Items]
Gain on sale of borrower loans		(1,696)	3,797	(2,336)	5,957
Servicing Assets
Servicing Assets And Liabilities Fair Value [Line Items]
Outstanding principle	$ 3,200,000	3,200,000		$ 3,200,000		$ 3,200,000
Maturity, in months						24 months
Maturity term one, in months				24 months
Maturity term two, in months				36 months		36 months
Maturity term three, in months				48 months		48 months
Maturity term four, in months				60 months		60 months
Fixed interest rate, minimum				5.31%		5.31%
Fixed interest rate, maximum				33.00%		33.00%
Contractually specified servicing fees, late charges and ancillary fees		7,700	6,500	$ 15,900	13,200
Servicing Assets \| Prosper Funding LLC
Servicing Assets And Liabilities Fair Value [Line Items]
Outstanding principle	$ 3,700,000	3,700,000		$ 3,700,000		$ 3,700,000
Fixed interest rate, minimum	5.31%			5.31%
Fixed interest rate, maximum	33.00%			33.00%
Contractually specified servicing fees, late charges and ancillary fees		$ 10,100	$ 7,500	$ 20,300	$ 15,100
Servicing Assets \| Prosper Funding LLC \| Minimum
Servicing Assets And Liabilities Fair Value [Line Items]
Maturity term one, in months	24 months			24 months
Maturity term two, in months	36 months
Maturity term three, in months	48 months			48 months
Servicing Assets \| Prosper Funding LLC \| Maximum
Servicing Assets And Liabilities Fair Value [Line Items]
Maturity term two, in months				36 months
Maturity term four, in months	60 months			60 months

XML 61 R49.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES - Fair Value Hierarchy (Details) - USD ($)
$ in Thousands

Jun. 30, 2023

Dec. 31, 2022

Assets:

^[1]

$ 517,781

$ 499,765

334,259

320,642

707

1,289

12,833

12,562

19,542

10,782

885,122

845,040

330,747

318,704

194,070

166,346

Credit Card servicing obligation liability (Note 5)

3,294

3,290

5,769

3,720

533,880

492,060

Assets:

334,259

320,642

15,148

14,860

349,407

335,502

330,747

318,704

3,294

3,290

334,041

321,994

Level 1 Inputs

Assets:

Credit Card servicing obligation liability (Note 5)

Level 1 Inputs | Prosper Funding LLC

Assets:

Level 2 Inputs

Assets:

707

1,289

707

1,289

Credit Card servicing obligation liability (Note 5)

Level 2 Inputs | Prosper Funding LLC

Assets:

Level 3 Inputs

Assets:

517,781

499,765

334,259

320,642

12,833

12,562

19,542

10,782

884,415

843,751

330,747

318,704

194,070

166,346

Credit Card servicing obligation liability (Note 5)

3,294

3,290

5,769

3,720

Level 3 Inputs | Prosper Funding LLC

533,880

492,060

Assets:

334,259

320,642

15,148

14,860

349,407

335,502

330,747

318,704

3,294

3,290

$ 334,041

$ 321,994

[1]


	June 30, 2023		December 31, 2022
Assets of consolidated VIEs, included in total assets above:
Restricted Cash	$	20,565	$	11,838
Loans Held for Sale, at Fair Value	517,781		499,765

Prepaid and Other Assets	3,967		3,210
Total assets of consolidated variable interest entities	$	542,313	$	514,813
Liabilities of consolidated VIEs, included in total liabilities above:


Warehouse Lines	$	474,662	$	446,762
Total liabilities of consolidated variable interest entities	$	474,662	$	446,762

XML 62 R50.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES - Significant Unobservable Inputs (Details)					1 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2022	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Servicing Assets:
Collection fee market rate				0.06%			0.06%
Prosper Funding LLC
Servicing Assets:
Collection fee market rate	0.06%				0.06%
Minimum
Servicing Assets:
Discount rate						15.00%	15.00%
Default rate						2.00%	1.80%
Prepayment rate						14.20%	12.20%
Market servicing rate			0.648%	0.648%		0.648%	0.648%
Weighted-average market servicing rate				0.708%			0.708%
Minimum \| Prosper Funding LLC
Servicing Assets:
Discount rate							15.00%	15.00%
Default rate							1.60%	2.00%
Prepayment rate							12.20%	14.20%
Market servicing rate	0.648%	0.648%					0.648%	0.648%
Weighted-average market servicing rate	0.708%	0.708%
Maximum
Servicing Assets:
Discount rate						25.00%	25.00%
Default rate						19.30%	18.90%
Prepayment rate						28.00%	29.60%
Market servicing rate				0.842%		0.842%	0.842%
Weighted-average market servicing rate				0.902%			0.902%
Maximum \| Prosper Funding LLC
Servicing Assets:
Discount rate							25.00%	25.00%
Default rate							18.90%	19.30%
Prepayment rate							29.60%	28.00%
Market servicing rate	0.842%	0.842%					0.842%	0.842%
Weighted-average market servicing rate	0.902%	0.902%
Discount rate \| Minimum
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.062	0.054			0.054		0.062	0.054
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.062	0.054			0.054		0.062	0.054
Discount rate \| Minimum \| Obligations
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.150	0.150			0.150		0.150	0.150
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.150	0.150			0.150		0.150	0.150
Discount rate \| Minimum \| Prosper Funding LLC
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.069	0.056			0.056		0.069	0.056
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.069	0.056			0.056		0.069	0.056
Discount rate \| Minimum \| Prosper Funding LLC \| Obligations
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.150	0.150			0.150		0.150	0.150
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.150	0.150			0.150		0.150	0.150
Discount rate \| Maximum
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.140	0.132			0.132		0.140	0.132
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.140	0.132			0.132		0.140	0.132
Discount rate \| Maximum \| Obligations
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.250	0.250			0.250		0.250	0.250
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.250	0.250			0.250		0.250	0.250
Discount rate \| Maximum \| Prosper Funding LLC
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.137	0.129			0.129		0.137	0.129
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.137	0.129			0.129		0.137	0.129
Discount rate \| Maximum \| Prosper Funding LLC \| Obligations
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.250	0.250			0.250		0.250	0.250
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.250	0.250			0.250		0.250	0.250
Default rate \| Minimum
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.016	0.018			0.018		0.016	0.018
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.016	0.018			0.018		0.016	0.018
Default rate \| Minimum \| Obligations
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.018	0.020			0.020		0.018	0.020
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.018	0.020			0.020		0.018	0.020
Default rate \| Minimum \| Prosper Funding LLC
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.018	0.018			0.018		0.018	0.018
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.018	0.018			0.018		0.018	0.018
Default rate \| Minimum \| Prosper Funding LLC \| Obligations
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.016	0.020			0.020		0.016	0.020
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.016	0.020			0.020		0.016	0.020
Default rate \| Maximum
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.187	0.187			0.187		0.187	0.187
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.187	0.187			0.187		0.187	0.187
Default rate \| Maximum \| Obligations
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.189	0.193			0.193		0.189	0.193
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.189	0.193			0.193		0.189	0.193
Default rate \| Maximum \| Prosper Funding LLC
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.187	0.182			0.182		0.187	0.182
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.187	0.182			0.182		0.187	0.182
Default rate \| Maximum \| Prosper Funding LLC \| Obligations
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.189	0.193			0.193		0.189	0.193
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.189	0.193			0.193		0.189	0.193
Prepayment rate \| Minimum \| Obligations
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.122	0.142			0.142		0.122	0.142
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.122	0.142			0.142		0.122	0.142
Prepayment rate \| Minimum \| Prosper Funding LLC \| Obligations
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.122	0.142			0.142		0.122	0.142
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.122	0.142			0.142		0.122	0.142
Prepayment rate \| Maximum \| Obligations
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.296	0.280			0.280		0.296	0.280
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.296	0.280			0.280		0.296	0.280
Prepayment rate \| Maximum \| Prosper Funding LLC \| Obligations
Borrower Loans, Loans Held for Sale, and Notes [Abstract]
Fair value assumptions	0.296	0.280			0.280		0.296	0.280
Loan Trailing Fee Liability [Abstract]
Fair value assumptions	0.296	0.280			0.280		0.296	0.280

XML 63 R51.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES - Significant Unobservable Inputs - Servicing Rights (Details)					1 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2022	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Servicing Rights at Fair Value [Line Items]
Collection fee market rate				0.06%			0.06%
Prosper Funding LLC
Servicing Rights at Fair Value [Line Items]
Collection fee market rate	0.06%				0.06%
Minimum
Servicing Rights at Fair Value [Line Items]
Discount rate						15.00%	15.00%
Default rate						2.00%	1.80%
Prepayment rate						14.20%	12.20%
Market servicing rate			0.648%	0.648%		0.648%	0.648%
Weighted-average market servicing rate				0.708%			0.708%
Minimum \| Prosper Funding LLC
Servicing Rights at Fair Value [Line Items]
Discount rate							15.00%	15.00%
Default rate							1.60%	2.00%
Prepayment rate							12.20%	14.20%
Market servicing rate	0.648%	0.648%					0.648%	0.648%
Weighted-average market servicing rate	0.708%	0.708%
Maximum
Servicing Rights at Fair Value [Line Items]
Discount rate						25.00%	25.00%
Default rate						19.30%	18.90%
Prepayment rate						28.00%	29.60%
Market servicing rate				0.842%		0.842%	0.842%
Weighted-average market servicing rate				0.902%			0.902%
Maximum \| Prosper Funding LLC
Servicing Rights at Fair Value [Line Items]
Discount rate							25.00%	25.00%
Default rate							18.90%	19.30%
Prepayment rate							29.60%	28.00%
Market servicing rate	0.842%	0.842%					0.842%	0.842%
Weighted-average market servicing rate	0.902%	0.902%

XML 64 R52.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES - Significant Unobservable Inputs - Loan Trailing Fee Liability (Details)	Jun. 30, 2023	Dec. 31, 2022
Discount rate \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.062	0.054
Discount rate \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.140	0.132
Discount rate \| Prosper Funding LLC \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.069	0.056
Discount rate \| Prosper Funding LLC \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.137	0.129
Discount rate \| Obligations \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.150	0.150
Discount rate \| Obligations \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.250	0.250
Discount rate \| Obligations \| Prosper Funding LLC \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.150	0.150
Discount rate \| Obligations \| Prosper Funding LLC \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.250	0.250
Default rate \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.016	0.018
Default rate \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.187	0.187
Default rate \| Prosper Funding LLC \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.018	0.018
Default rate \| Prosper Funding LLC \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.187	0.182
Default rate \| Obligations \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.018	0.020
Default rate \| Obligations \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.189	0.193
Default rate \| Obligations \| Prosper Funding LLC \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.016	0.020
Default rate \| Obligations \| Prosper Funding LLC \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.189	0.193
Prepayment rate \| Obligations \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.122	0.142
Prepayment rate \| Obligations \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.296	0.280
Prepayment rate \| Obligations \| Prosper Funding LLC \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.122	0.142
Prepayment rate \| Obligations \| Prosper Funding LLC \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assumptions	0.296	0.280

XML 65 R53.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES - Changes in Level 3 Fair Value Assets and Liabilities on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Total
Beginning balance, Total	$ 555,816	$ 285,073	$ 501,703	$ 244,811
Purchase of Borrower Loans/Issuance of Notes	530,045	803,636	1,101,114	1,292,123
Principal repayments	(65,046)	(43,503)	(127,750)	(82,407)
Borrower Loans sold to third parties	(485,306)	(725,084)	(930,528)	(1,131,697)
Other changes	(306)	10	509	400
Change in fair value	(13,910)	(6,067)		(9,165)
Change in fair value			(23,755)
Ending balance, Total	521,293	314,065	521,293	314,065
Prosper Funding LLC
Total
Beginning balance, Total	2,721	950	1,938	1,641
Purchase of Borrower Loans/Issuance of Notes	530,045	803,636	1,101,114	1,292,123
Principal repayments	(708)	(231)	(1,505)	(773)
Borrower Loans sold to third parties	(530,060)	(803,815)	(1,100,815)	(1,293,472)
Other changes	(118)	(69)	(66)	41
Change in fair value	216	439	(164)	266
Ending balance, Total	3,512	1,372	3,512	1,372
Notes
Liabilities
Beginning balance, Liabilities	(327,686)	(280,674)	(318,704)	(265,985)
Purchase of Borrower Loans/Issuance of Notes	(60,901)	(76,581)	(123,543)	(144,310)
Principal repayments	47,583	48,977	93,867	97,729
Borrower Loans sold to third parties	0	0	0	0
Other changes	(209)	(159)	(262)	(112)
Change in fair value	10,466	7,916	17,895	12,157
Ending balance, Liabilities	(330,747)	(300,521)	(330,747)	(300,521)
Notes \| Prosper Funding LLC
Liabilities
Beginning balance, Liabilities	(327,686)	(280,674)	(318,704)	(265,985)
Purchase of Borrower Loans/Issuance of Notes	(60,901)	(76,581)	(123,543)	(144,310)
Principal repayments	47,583	48,977	93,867	97,729
Borrower Loans sold to third parties	0	0	0	0
Other changes	(209)	(159)	(262)	(112)
Change in fair value	10,466	7,916	17,895	12,157
Ending balance, Liabilities	(330,747)	(300,521)	(330,747)	(300,521)
Borrower Loans
Assets
Beginning balance, Assets	330,407	281,624	320,642	267,626
Purchase of Borrower Loans/Issuance of Notes	61,887	76,891	125,796	143,785
Principal repayments	(46,875)	(48,746)	(92,362)	(96,956)
Borrower Loans sold to third parties	(1,001)	(489)	(1,954)	(824)
Other changes	91	90	196	153
Change in fair value	(10,250)	(7,477)	(18,059)	(11,891)
Ending balance, Assets	334,259	301,893	334,259	301,893
Borrower Loans \| Prosper Funding LLC
Assets
Beginning balance, Assets	330,407	281,624	320,642	267,626
Purchase of Borrower Loans/Issuance of Notes	61,887	76,891	125,796	143,785
Principal repayments	(46,875)	(48,746)	(92,362)	(96,956)
Borrower Loans sold to third parties	(1,001)	(489)	(1,954)	(824)
Other changes	91	90	196	153
Change in fair value	(10,250)	(7,477)	(18,059)	(11,891)
Ending balance, Assets	334,259	301,893	334,259	301,893
Loans Held for Sale
Assets
Beginning balance, Assets	553,095	284,123	499,765	243,170
Purchase of Borrower Loans/Issuance of Notes	529,059	803,326	1,098,861	1,292,648
Principal repayments	(65,754)	(43,734)	(129,255)	(83,180)
Borrower Loans sold to third parties	(484,305)	(724,595)	(928,574)	(1,130,873)
Other changes	(188)	79	575	359
Change in fair value	(14,126)	(6,506)	(23,591)	(9,431)
Ending balance, Assets	517,781	312,693	517,781	312,693
Loans Held for Sale \| Prosper Funding LLC
Assets
Beginning balance, Assets	0	0	0	0
Purchase of Borrower Loans/Issuance of Notes	529,059	803,326	1,098,861	1,292,648
Principal repayments	0	0	0	0
Borrower Loans sold to third parties	(529,059)	(803,326)	(1,098,861)	(1,292,648)
Other changes	0	0	0	0
Change in fair value	0	0	0	0
Ending balance, Assets	$ 0	$ 0	$ 0	$ 0

XML 66 R54.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES - Summary of Additional Information for Level 3 Fair Value Balances (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Servicing Assets
Beginning balance			$ 12,562
Ending balance	$ 12,833		12,833
Prosper Funding LLC
Servicing Assets
Beginning balance			14,860
Ending balance	15,148		15,148
Servicing Assets
Servicing Assets
Beginning balance			12,562
Ending balance	12,833		12,833
Servicing Assets \| Prosper Funding LLC
Servicing Assets
Beginning balance			14,860
Ending balance	15,148		15,148
Level 3 Inputs
Servicing Assets
Beginning balance			12,562
Ending balance	12,833		12,833
Level 3 Inputs \| Credit Card Derivative \| Derivative
Credit Card Derivative
Beginning balance, Assets	16,883	$ 885	10,782	$ 7
Change in fair value	2,659	2,985	8,760	3,863
Gains (losses) from settled transactions	454	351	(1,019)	577
Net payments received (made)	(454)	640	1,019	414
Ending balance, Assets	19,542	4,861	19,542	4,861
Level 3 Inputs \| Prosper Funding LLC
Servicing Assets
Beginning balance			14,860
Ending balance	15,148		15,148
Level 3 Inputs \| Servicing Assets
Servicing Assets
Beginning balance	12,716	8,680	12,562	8,761
Additions	2,554	3,696	4,867	5,677
Less: Changes in fair value	(2,437)	(2,053)	(4,596)	(4,115)
Ending balance	12,833	10,323	12,833	10,323
Level 3 Inputs \| Servicing Assets \| Prosper Funding LLC
Servicing Assets
Beginning balance	15,249	9,910	14,860	9,796
Additions	2,785	4,090	5,724	6,480
Less: Changes in fair value	(2,886)	(2,301)	(5,436)	(4,577)
Ending balance	15,148	11,699	15,148	11,699
Level 3 Inputs \| Convertible Preferred Stock Warrant Liability
Liabilities
Beginning balance	162,081	217,530	166,346	250,941
Change in fair value	31,989	(44,075)	27,724	(77,486)
Ending balance	194,070	173,455	194,070	173,455
Level 3 Inputs \| Credit Card Servicing Obligation Liability
Liabilities
Beginning balance	4,626	188	3,720	0
Change in fair value	1,143	1,058	2,049	1,246
Ending balance	5,769	1,246	5,769	1,246
Level 3 Inputs \| Loan Trailing Fee Liability
Liabilities
Beginning balance	3,308	2,194	3,290	2,161
Issuances	543	820	1,132	1,322
Cash Payment of Loan Trailing Fee	(698)	(500)	(1,406)	(1,010)
Change in fair value	141	60	278	101
Ending balance	3,294	2,574	3,294	2,574
Level 3 Inputs \| Loan Trailing Fee Liability \| Prosper Funding LLC
Liabilities
Beginning balance	3,308	2,194	3,290	2,161
Issuances	543	820	1,132	1,322
Cash Payment of Loan Trailing Fee	(698)	(500)	(1,406)	(1,010)
Change in fair value	141	60	278	101
Ending balance	$ 3,294	$ 2,574	$ 3,294	$ 2,574

XML 67 R55.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES - Fair Value Assumptions for Borrower Loans, Loans Held for Sale and Notes (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower Loans, at Fair Value	$ 334,259	$ 320,642
Notes, at Fair Value	330,747	318,704
Level 3 Inputs
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower Loans, at Fair Value	334,259	320,642
Notes, at Fair Value	330,747	318,704
Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower Loans, at Fair Value	334,259	320,642
Notes, at Fair Value	330,747	318,704
Prosper Funding LLC \| Level 3 Inputs
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower Loans, at Fair Value	334,259	320,642
Notes, at Fair Value	330,747	318,704
Notes
Fair Value Inputs Assets Quantitative Information [Line Items]
Notes, at Fair Value	330,747	318,704
Notes \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower Loans, at Fair Value		320,642
Notes, at Fair Value	330,747	318,704
Borrower loans and loans held for sale
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower Loans, at Fair Value	852,040	820,407
Borrower loans and loans held for sale \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower Loans, at Fair Value	334,259	320,642
Discount rate assumption \| 100 basis point increase \| Notes
Fair Value Inputs Assets Quantitative Information [Line Items]
Notes	327,482	315,456
Discount rate assumption \| 100 basis point increase \| Notes \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans		317,380
Notes	327,482	315,456
Discount rate assumption \| 100 basis point increase \| Borrower loans and loans held for sale
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	843,644	812,061
Discount rate assumption \| 100 basis point increase \| Borrower loans and loans held for sale \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	330,965	317,380
Discount rate assumption \| 200 basis point incease \| Notes
Fair Value Inputs Assets Quantitative Information [Line Items]
Notes	324,299	312,291
Discount rate assumption \| 200 basis point incease \| Notes \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans		314,201
Notes	324,299	312,291
Discount rate assumption \| 200 basis point incease \| Borrower loans and loans held for sale
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	835,457	803,927
Discount rate assumption \| 200 basis point incease \| Borrower loans and loans held for sale \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	327,753	314,201
Discount rate assumption \| 100 basis point decrease \| Notes
Fair Value Inputs Assets Quantitative Information [Line Items]
Notes	334,095	322,037
Discount rate assumption \| 100 basis point decrease \| Notes \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans		323,991
Notes	334,095	322,037
Discount rate assumption \| 100 basis point decrease \| Borrower loans and loans held for sale
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	860,653	828,975
Discount rate assumption \| 100 basis point decrease \| Borrower loans and loans held for sale \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	337,638	323,991
Discount rate assumption \| 200 basis point decrease \| Notes
Fair Value Inputs Assets Quantitative Information [Line Items]
Notes	337,532	325,461
Discount rate assumption \| 200 basis point decrease \| Notes \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans		327,429
Notes	337,532	325,461
Discount rate assumption \| 200 basis point decrease \| Borrower loans and loans held for sale
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	869,490	837,773
Discount rate assumption \| 200 basis point decrease \| Borrower loans and loans held for sale \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	341,104	327,429
Default rate assumption \| 10 percent increase \| Notes
Fair Value Inputs Assets Quantitative Information [Line Items]
Notes	326,971	314,892
Default rate assumption \| 10 percent increase \| Notes \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans		316,832
Notes	326,971	314,892
Default rate assumption \| 10 percent increase \| Borrower loans and loans held for sale
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	842,390	810,657
Default rate assumption \| 10 percent increase \| Borrower loans and loans held for sale \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	330,473	316,832
Default rate assumption \| 20 percent increase \| Notes
Fair Value Inputs Assets Quantitative Information [Line Items]
Notes	323,223	311,112
Default rate assumption \| 20 percent increase \| Notes \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans		313,053
Notes	323,223	311,112
Default rate assumption \| 20 percent increase \| Borrower loans and loans held for sale
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	832,812	800,989
Default rate assumption \| 20 percent increase \| Borrower loans and loans held for sale \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	326,716	313,053
Default rate assumption \| 10 percent decrease \| Notes
Fair Value Inputs Assets Quantitative Information [Line Items]
Notes	334,551	322,547
Default rate assumption \| 10 percent decrease \| Notes \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans		324,484
Notes	334,551	322,547
Default rate assumption \| 10 percent decrease \| Borrower loans and loans held for sale
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	861,763	830,238
Default rate assumption \| 10 percent decrease \| Borrower loans and loans held for sale \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	338,073	324,484
Default rate assumption \| 20 percent decrease \| Notes
Fair Value Inputs Assets Quantitative Information [Line Items]
Notes	338,387	326,425
Default rate assumption \| 20 percent decrease \| Notes \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans		328,361
Notes	338,387	326,425
Default rate assumption \| 20 percent decrease \| Borrower loans and loans held for sale
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	871,566	840,156
Default rate assumption \| 20 percent decrease \| Borrower loans and loans held for sale \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrower loans	$ 341,919	$ 328,361
Discount rate \| Discount rate assumption \| Notes
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair value assumptions	0.0831	0.0687
Discount rate \| Discount rate assumption \| Notes \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair value assumptions	0.0831	0.0687
Discount rate \| Discount rate assumption \| Borrower loans and loans held for sale
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair value assumptions	0.0829	0.0672
Discount rate \| Discount rate assumption \| Borrower loans and loans held for sale \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair value assumptions	0.0831	0.0687
Default rate \| Default rate assumption \| Notes
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair value assumptions	0.1169	0.1136
Default rate \| Default rate assumption \| Notes \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair value assumptions	0.1169	0.1136
Default rate \| Default rate assumption \| Borrower loans and loans held for sale
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair value assumptions	0.0983	0.0931
Default rate \| Default rate assumption \| Borrower loans and loans held for sale \| Prosper Funding LLC
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair value assumptions	0.1169	0.1136

XML 68 R56.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES - Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Servicing Assets And Liabilities Fair Value [Line Items]
Servicing Assets	$ 12,833	$ 12,562
Credit Card Servicing Obligation Liability
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative liability	5,769	3,720
Prosper Funding LLC
Servicing Assets And Liabilities Fair Value [Line Items]
Servicing Assets	15,148	14,860
Servicing Assets
Servicing Assets And Liabilities Fair Value [Line Items]
Servicing Assets	12,833	12,562
Servicing Assets \| Prosper Funding LLC
Servicing Assets And Liabilities Fair Value [Line Items]
Servicing Assets	15,148	14,860
Market servicing rate \| Servicing Assets \| Market servicing rate increase of 0.025%
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	11,986	11,708
Market servicing rate \| Servicing Assets \| Market servicing rate increase of 0.025% \| Prosper Funding LLC
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	14,149	13,850
Market servicing rate \| Servicing Assets \| Market servicing rate decrease of 0.025%
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	13,679	13,415
Market servicing rate \| Servicing Assets \| Market servicing rate decrease of 0.025% \| Prosper Funding LLC
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	16,147	15,870
Prepayment rate assumption \| Servicing Assets \| Applying a 1.1 multiplier to prepayment rate
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	12,552	12,286
Prepayment rate assumption \| Servicing Assets \| Applying a 1.1 multiplier to prepayment rate \| Prosper Funding LLC
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	14,816	14,534
Prepayment rate assumption \| Servicing Assets \| Applying a 0.9 multiplier to prepayment rate
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	13,118	12,842
Prepayment rate assumption \| Servicing Assets \| Applying a 0.9 multiplier to prepayment rate \| Prosper Funding LLC
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	15,485	15,191
Default rate assumption \| Servicing Assets \| Applying a 1.1 multiplier to default rate
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	12,598	12,305
Default rate assumption \| Servicing Assets \| Applying a 1.1 multiplier to default rate \| Prosper Funding LLC
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	14,871	14,557
Default rate assumption \| Servicing Assets \| Applying a 0.9 multiplier to default rate
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	13,069	12,820
Default rate assumption \| Servicing Assets \| Applying a 0.9 multiplier to default rate \| Prosper Funding LLC
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	$ 15,426	$ 15,165
Market servicing rate \| Servicing Assets
Servicing Assets And Liabilities Fair Value [Line Items]
Valuation techniques	0.65%	0.65%
Market servicing rate \| Servicing Assets \| Prosper Funding LLC
Servicing Assets And Liabilities Fair Value [Line Items]
Valuation techniques	0.65%	0.649%
Prepayment rate \| Credit Card Servicing Obligation Liability
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative liability, measurement input	0.0919	0.1008
Prepayment rate \| Servicing Assets
Servicing Assets And Liabilities Fair Value [Line Items]
Valuation techniques	18.60%	18.47%
Prepayment rate \| Servicing Assets \| Prosper Funding LLC
Servicing Assets And Liabilities Fair Value [Line Items]
Valuation techniques	18.93%	18.77%
Default rate \| Credit Card Servicing Obligation Liability
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative liability, measurement input	0.1517	0.1334
Default rate \| Servicing Assets
Servicing Assets And Liabilities Fair Value [Line Items]
Valuation techniques	12.89%	13.38%
Default rate \| Servicing Assets \| Prosper Funding LLC
Servicing Assets And Liabilities Fair Value [Line Items]
Valuation techniques	12.28%	12.63%
Discount rate on Prosper Allocations \| Credit Card Servicing Obligation Liability
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative liability, measurement input	0.0860	0.0926
Market servicing rate \| Credit Card Servicing Obligation Liability
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative liability, measurement input	0.0200	0.0200

XML 69 R57.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES - Schedule Credit Card Derivative Obligation Liability (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Servicing Assets And Liabilities Fair Value [Line Items]
Credit Card Derivative	$ 19,542	$ 10,782
Credit Card Servicing Obligation Liability
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative liability	$ 5,769	$ 3,720
Credit Card Servicing Obligation Liability \| Discount rate on Prosper Allocations
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative liability, measurement input	0.0860	0.0926
Credit Card Servicing Obligation Liability \| Prepayment rate
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative liability, measurement input	0.0919	0.1008
Credit Card Servicing Obligation Liability \| Prepayment rate \| Applying a 1.1 multiplier to prepayment rate
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative Liability, Expected Fair Value With Change In Assumptions	$ 5,689	$ 3,662
Credit Card Servicing Obligation Liability \| Prepayment rate \| Applying a 0.9 multiplier to prepayment rate
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative Liability, Expected Fair Value With Change In Assumptions	$ 5,851	$ 3,779
Credit Card Servicing Obligation Liability \| Default rate
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative liability, measurement input	0.1517	0.1334
Credit Card Servicing Obligation Liability \| Default rate \| Applying a 1.1 multiplier to default rate
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative Liability, Expected Fair Value With Change In Assumptions	$ 5,619	$ 3,636
Credit Card Servicing Obligation Liability \| Default rate \| Applying a 0.9 multiplier to default rate
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative Liability, Expected Fair Value With Change In Assumptions	$ 5,924	$ 3,806
Credit Card Servicing Obligation Liability \| Market servicing rate
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative liability, measurement input	0.0200	0.0200
Credit Card Servicing Obligation Liability \| Discount rate \| Market servicing rate increase of 0.10%
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative Liability, Expected Fair Value With Change In Assumptions	$ 6,078	$ 3,919
Credit Card Servicing Obligation Liability \| Discount rate \| Market servicing rate decrease of 0.10%
Servicing Assets And Liabilities Fair Value [Line Items]
Derivative Liability, Expected Fair Value With Change In Assumptions	$ 5,461	$ 3,521

XML 70 R58.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES - Schedule of Prosper's Estimated Fair Value of Derivative Assets (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Servicing Assets And Liabilities Fair Value [Line Items]
Credit Card Derivative	$ 19,542	$ 10,782
Credit Card Derivative
Servicing Assets And Liabilities Fair Value [Line Items]
Credit Card Derivative	19,542	10,782
Prosper Allocations outstanding	$ 159,956	$ 102,392
Discount rate on Prosper Allocations \| Credit Card Derivative
Servicing Assets And Liabilities Fair Value [Line Items]
Valuation techniques	0.2446	0.2623
Discount rate on Coastal Program Fee \| Credit Card Derivative
Servicing Assets And Liabilities Fair Value [Line Items]
Valuation techniques	0.0860	0.0926
Prepayment rate
Servicing Assets And Liabilities Fair Value [Line Items]
Prepayment rate increase	1.10%
Prepayment rate decrease	0.90%
Prepayment rate \| Credit Card Derivative
Servicing Assets And Liabilities Fair Value [Line Items]
Valuation techniques	0.0919	0.1008
Prepayment rate \| Credit Card Derivative \| Applying a 1.1 multiplier to prepayment rate
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	$ 19,259	$ 10,625
Prepayment rate \| Credit Card Derivative \| Applying a 0.9 multiplier to prepayment rate
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	$ 19,829	$ 10,942
Default rate
Servicing Assets And Liabilities Fair Value [Line Items]
Default rate increase	1.10%
Default rate decrease	0.90%
Default rate \| Credit Card Derivative
Servicing Assets And Liabilities Fair Value [Line Items]
Valuation techniques	0.1517	0.1334
Default rate \| Credit Card Derivative \| Applying a 1.1 multiplier to default rate
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	$ 15,048	$ 8,001
Default rate \| Credit Card Derivative \| Applying a 0.9 multiplier to default rate
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	24,175	13,641
Discount rate \| Credit Card Derivative \| Market servicing rate increase of 0.10%
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	19,339	10,699
Discount rate \| Credit Card Derivative \| Market servicing rate decrease of 0.10%
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	19,141	10,618
Discount rate \| Credit Card Derivative \| Market servicing rate decrease of 0.10%
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	19,749	10,866
Discount rate \| Credit Card Derivative \| Market servicing rate decrease of 0.20%
Servicing Assets And Liabilities Fair Value [Line Items]
Expected fair value with change in assumptions	$ 19,961	$ 10,951

XML 71 R59.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES - Schedule of Prosper's and Prosper Funding's Estimated Fair Value of Servicing Assets and Liabilities - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing rate increase	0.025%
Servicing rate decrease	0.025%
Prepayment rate assumption
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Prepayment rate increase	1.10%
Prepayment rate decrease	0.90%
Default rate assumption
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Default rate increase	1.10%
Default rate decrease	0.90%

XML 72 R60.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF ASSETS AND LIABILITIES - Financial Instruments, Assets and Liabilities not Recorded at Fair Value (Details) - USD ($)
$ in Thousands

Jun. 30, 2023

Dec. 31, 2022

Jun. 30, 2022

Assets:

$ 43,830

$ 83,446

$ 55,118

111,385

^[1]

113,163

^[1]

$ 176,349

5,084

3,462

1,132,909

1,128,404

41,283

37,254

75,134

85,312

^[1]

474,662

446,762

1,221,470

1,156,043

Carrying Amount

Assets:

43,830

83,446

5,084

3,462

160,299

200,071

41,283

37,254

75,134

85,312

474,662

446,762

Term Loan (Note 10)

73,407

Carrying Amount | Cash and Cash Equivalents

665,372

642,735

Assets:

Carrying Amount | Certificates of Deposit

108,358

108,284

Assets:

3,027

4,879

Balance at Fair Value

Assets:

43,830

83,446

5,084

3,462

160,299

200,071

41,283

37,254

75,134

85,312

475,008

444,329

Term Loan (Note 10)

76,978

76,191

Balance at Fair Value | Cash and Cash Equivalents

668,403

643,086

Assets:

Balance at Fair Value | Certificates of Deposit

108,358

108,284

Assets:

3,027

4,879

Level 1 Inputs

Assets:

43,830

83,446

152,188

191,730

Level 1 Inputs | Cash and Cash Equivalents

Assets:

Level 1 Inputs | Certificates of Deposit

108,358

108,284

Assets:

Level 2 Inputs

Assets:

5,084

3,462

8,111

8,341

41,283

37,254

75,134

85,312

475,008

444,329

Term Loan (Note 10)

76,978

76,191

Level 2 Inputs | Cash and Cash Equivalents

668,403

643,086

Assets:

Level 2 Inputs | Certificates of Deposit

Assets:

3,027

4,879

Level 3 Inputs

Assets:

Level 3 Inputs | Cash and Cash Equivalents

Assets:

Level 3 Inputs | Certificates of Deposit

Assets:

$ 0

[1]


	June 30, 2023		December 31, 2022
Assets of consolidated VIEs, included in total assets above:
Restricted Cash	$	20,565	$	11,838
Loans Held for Sale, at Fair Value	517,781		499,765

Prepaid and Other Assets	3,967		3,210
Total assets of consolidated variable interest entities	$	542,313	$	514,813
Liabilities of consolidated VIEs, included in total liabilities above:


Warehouse Lines	$	474,662	$	446,762
Total liabilities of consolidated variable interest entities	$	474,662	$	446,762

XML 73 R61.htm IDEA: XBRL DOCUMENT

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Goodwill And Other Intangible Assets [Line Items]
Goodwill	$ 36,368,000		$ 36,368,000
Goodwill impairment expense	0	$ 0
Net carrying value	139,000		$ 192,000
User base and customer relationships
Goodwill And Other Intangible Assets [Line Items]
Net carrying value	$ 139,000
Remaining Useful Life (In Years)	1 year 9 months 18 days
User base and customer relationships \| Minimum
Goodwill And Other Intangible Assets [Line Items]
Remaining Useful Life (In Years)	3 years
User base and customer relationships \| Maximum
Goodwill And Other Intangible Assets [Line Items]
Remaining Useful Life (In Years)	10 years

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

XML 74 R62.htm IDEA: XBRL DOCUMENT

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 8,170
Accumulated Amortization	(8,031)
Net Carrying Value	139	$ 192
Developed technology
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	3,060
Accumulated Amortization	(3,060)
Net Carrying Value	0
User base and customer relationships
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	5,050
Accumulated Amortization	(4,911)
Net Carrying Value	$ 139
Remaining Useful Life (In Years)	1 year 9 months 18 days
Brand name
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 60
Accumulated Amortization	(60)
Net Carrying Value	$ 0

XML 75 R63.htm IDEA: XBRL DOCUMENT

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Summary of Estimated Amortization of Purchased Intangible Assets (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (remainder thereof)	$ 54
2024	85
Total	$ 139

XML 76 R64.htm IDEA: XBRL DOCUMENT

OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Other Liabilities [Abstract]
Operating lease liabilities (Note 15)	$ 15,627	$ 16,351
Deferred revenue	5,501	3,880
Credit Card servicing obligation liability (Note 5)	5,769	3,720
Loan trailing fee liability	3,294	3,290
Deferred income tax liability	658	658
Other	432	359
Total Other Liabilities	$ 31,281	$ 28,258
Operating lease liability, location	Total Other Liabilities	Total Other Liabilities

XML 77 R65.htm IDEA: XBRL DOCUMENT

DEBT (Details) - USD ($)

1 Months Ended

6 Months Ended

May 05, 2023

Feb. 10, 2023

Mar. 04, 2021

Jun. 20, 2019

Apr. 30, 2020

Jun. 30, 2023

Jul. 31, 2023

May 04, 2023

Feb. 09, 2023

Dec. 31, 2022

Nov. 14, 2022

Jun. 30, 2022

May 19, 2021

Mar. 28, 2019

Jun. 12, 2018

Jan. 19, 2018

Fair value hedges, net

$ 19,542,000

$ 10,782,000

Warehouse lines

^[1]

474,662,000

446,762,000

Loans held for sale

^[1]

517,781,000

499,765,000

Interest Rate Swaption

Warehouse Agreement | Revolving Credit Facility

Fair value hedges, net

700,000

$ 1,300,000

Minimum tangible net worth

25,000,000

Minimum net liquidity

$ 15,000,000

Maximum leverage ratio

PWIT | Revolving Credit Facility

PWIT | Revolving Credit Facility | Interest Rate Swaption

$ 200,000,000

$ 100,000,000

12 months

$ 203,300,000

223,200,000

42,200,000

2,200,000

$ 300,000

Hedged asset, fair value hedge, cumulative increase (decrease)

(500,000)

$ 400,000

PWIIT | Revolving Credit Facility

PWIIT | Revolving Credit Facility | Subsequent Event

$ 244,000,000

$ 450,000,000

$ 200,000,000

$ 300,000,000

Repayment period

24 months

Advance rate

90.00%

91.50%

Warehouse lines

271,400,000

Loans held for sale

312,800,000

Undrawn portion

179,800,000

PWIIT | Revolving Credit Facility | Interest Rate Swaption

$ 300,000,000

Derivative notional amount

$ 185,000,000

PWIIT | Revolving Credit Facility | Minimum

PWIIT | Revolving Credit Facility | Maximum

Advance rate

80.00%

PWIIT Class A | Revolving Credit Facility

Advance rate

90.00%

$ 200,000,000

$ 400,000,000

$ 230,000,000

PWIIT Class A | Revolving Credit Facility | Subsequent Event

0.15%

Commitment fee percent

0.50%

0.75%

PWIIT Class B | Revolving Credit Facility

265,000,000

PWIIT Class B | Revolving Credit Facility | Subsequent Event

$ 44,000,000

$ 50,000,000

$ 70,000,000

PWIIT Class B | Revolving Credit Facility | Minimum

$ 35,000,000

PWIIT Class B | Revolving Credit Facility | Maximum

Commitment fee percent

0.50%

Commitment fee percent

1.00%

PPP Loan

Remaining contractual term (in years)

Face amount

$ 8,400,000

Stated interest rate

1.00%

2 years

Credit Agreement | Line of Credit

PWIIT Warehouse Line 2021 Extension | Revolving Credit Facility

Face amount

$ 75,000,000

Debt issuance costs, net

$ 400,000

PWIIT Warehouse Line 2023 Extension | Revolving Credit Facility

Debt issuance costs

1,300,000

Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | PWIIT Class A | Revolving Credit Facility

Debt issuance costs

$ 900,000

Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | PWIIT Class A | Revolving Credit Facility | Minimum

2.75%

Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | PWIIT Class B | Revolving Credit Facility

8.50%

Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | PWIIT Class B | Revolving Credit Facility | Minimum

8.75%

Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | PWIIT Class B | Revolving Credit Facility | Maximum

0.375%

Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Credit Agreement | Line of Credit

0.375%

Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Credit Agreement | Minimum | Line of Credit

9.00%

Paid-In-kind interest rate

2.00%

National Banking Associations Asset-Backed Commercial Paper Rate | PWIIT Class A | Revolving Credit Facility

National Banking Associations Asset-Backed Commercial Paper Rate | PWIIT Class A | Revolving Credit Facility | Minimum

2.85%

National Banking Associations Asset-Backed Commercial Paper Rate | PWIIT Class A | Revolving Credit Facility | Maximum

0.375%

Basis spread on variable rate, period two

0.375%

[1]


	June 30, 2023		December 31, 2022
Assets of consolidated VIEs, included in total assets above:
Restricted Cash	$	20,565	$	11,838
Loans Held for Sale, at Fair Value	517,781		499,765

Prepaid and Other Assets	3,967		3,210
Total assets of consolidated variable interest entities	$	542,313	$	514,813
Liabilities of consolidated VIEs, included in total liabilities above:


Warehouse Lines	$	474,662	$	446,762
Total liabilities of consolidated variable interest entities	$	474,662	$	446,762

XML 78 R66.htm IDEA: XBRL DOCUMENT

NET INCOME (LOSS) PER SHARE - Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net (Loss) Income	$ (52,770)	$ (9,090)	$ 42,665	$ 36,632	$ (61,860)	$ 79,297
Less: Net Income Allocated to Participating Securities	0		(28,663)		0	(53,352)
Net (Loss) Income Attributable to Common Stockholders	(52,770)		14,002		(61,860)	25,945
Net (Loss) Income Attributable to Common Stockholders	$ (52,770)		$ 14,002		$ (61,860)	$ 25,945
Denominator:
Weighted-Average Shares - Basic (in shares)	75,777,502		72,971,346		75,483,899	72,643,221
Effect of dilutive securities:
Stock options (in shares)	0		58,531,983		0	62,524,031
Warrants (in shares)	0		569,216		0	645,574
Convertible preferred stock warrants (in shares)	0		213,264,845		0	213,264,845
Weighted average shares used in computing diluted Net Income (Loss) per Share	75,777,502		345,337,390		75,483,899	349,077,671
Net (Loss) Income Per Share – Basic (in dollars per share)	$ (0.70)		$ 0.19		$ (0.82)	$ 0.36
Net (Loss) Income Per Share - Diluted (in dollars per share)	$ (0.70)		$ 0.04		$ (0.82)	$ 0.07

XML 79 R67.htm IDEA: XBRL DOCUMENT

NET INCOME (LOSS) PER SHARE - Dilutive Shares Excluded from Calculation (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total excluded securities (in shares)	453,629,304	171,757,443	453,230,026	173,156,103
Convertible preferred stock issued and outstanding, excluding shares held by consolidated VIE
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total excluded securities (in shares)	158,365,655	158,365,655	158,365,655	158,365,655
Stock options issued and outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total excluded securities (in shares)	80,918,455	12,880,655	80,519,177	14,355,673
Warrants issued and outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total excluded securities (in shares)	1,080,349	511,133	1,080,349	434,775
Series E-1 convertible preferred stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total excluded securities (in shares)	35,544,141	0	35,544,141	0
Series F convertible preferred stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total excluded securities (in shares)	177,720,704	0	177,720,704	0

XML 80 R68.htm IDEA: XBRL DOCUMENT

CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY AND COMMON STOCK - Additional Information (Details)						3 Months Ended		6 Months Ended
	Jul. 21, 2020 shares	Dec. 23, 2019 shares	Feb. 27, 2017 $ / shares shares	Dec. 16, 2016	Feb. 16, 2016	Jun. 30, 2023 USD ($) vote $ / shares shares	Jun. 30, 2022 USD ($) shares	Jun. 30, 2023 USD ($) time vote $ / shares shares	Jun. 30, 2022 USD ($) shares	Mar. 31, 2023 shares	Dec. 31, 2022 $ / shares shares	Mar. 31, 2022 shares	Dec. 31, 2021 shares	Sep. 20, 2017 $ / shares shares
Class of Stock [Line Items]
Common and preferred stock, shares authorized (in shares)														1,069,760,848
Common stock, authorized (in shares)						625,000,000		625,000,000			625,000,000			625,000,000
Common stock, par value (in dollars per share) \| $ / shares						$ 0.01		$ 0.01			$ 0.01			$ 0.01
Preferred stock, shares authorized (in shares)						444,760,848		444,760,848			444,760,848			444,760,848
Preferred stock, par value (in dollars per share) \| $ / shares														$ 0.01
Common stock, issued (in shares)						77,536,861		77,536,861			75,223,850
Common stock, outstanding (in shares)						76,600,926		76,600,926			74,287,915
Number of votes per share \| vote						1		1
Common Stock
Class of Stock [Line Items]
Stock split conversion ratio					5
Common stock, outstanding (in shares)						81,778,161	78,776,776	81,778,161	78,776,776	80,612,159	79,465,150	77,671,096	77,331,229
Exercise of stock options (in shares)								2,313,011
Cash proceeds \| $								$ 71,000
Series A
Class of Stock [Line Items]
Conversion ratio						1		1
Times the original issue \| time								3
Liquidation preference (in dollars per share) \| $ / shares						$ 0.29		$ 0.29
Preferred stock, shares authorized (in shares)						68,558,220		68,558,220
Series A \| Convertible Preferred Stock Held by Consolidated VIE
Class of Stock [Line Items]
Purchase of convertible preferred stock by consolidated VIE Prosper Grantor Trust (in shares)	34,670,420
Series B
Class of Stock [Line Items]
IPO value (at least) \| $								$ 2,000,000,000
Aggregate proceeds (at least) \| $								$ 100,000,000
Voting power (at least)								60.00%
Liquidation preference (in dollars per share) \| $ / shares						$ 0.60		$ 0.60
Preferred stock, shares authorized (in shares)						35,775,880		35,775,880
Series B \| Convertible Preferred Stock Held by Consolidated VIE
Class of Stock [Line Items]
Purchase of convertible preferred stock by consolidated VIE Prosper Grantor Trust (in shares)	16,577,495
Series A-1
Class of Stock [Line Items]
Voting power (at least)								14.00%
Conversion ratio						1,000,000		1,000,000
Liquidation preference (in dollars per share) \| $ / shares						$ 2.00		$ 2.00
Preferred stock, shares authorized (in shares)						24,760,915		24,760,915
Series D
Class of Stock [Line Items]
Voting power (at least)								60.00%
Liquidation preference (in dollars per share) \| $ / shares						$ 6.91		$ 6.91
Series E1 and E2 Preferred Stock
Class of Stock [Line Items]
Voting power (at least)								60.00%
Series F
Class of Stock [Line Items]
Voting power (at least)								60.00%
Preferred stock, liquidation preference, conversion basis								0.6667
Preferred stock, liquidation preference, conversion basis, after payment								0.3333
Liquidation preference (in dollars per share) \| $ / shares						$ 0.84		$ 0.84
Warrant to purchase (in shares)			177,720,706
Warrant expiration period			10 years
Change in fair value \| $						$ 26,700,000	$ (37,300,000)	$ 23,100,000	$ 65,800,000
Exercise price (in dollars per share) \| $ / shares			$ 0.01
Preferred stock, shares authorized (in shares)						177,720,707		177,720,707
Series G
Class of Stock [Line Items]
Voting power (at least)								60.00%
Conversion ratio						1.36		1.36
Liquidation preference (in dollars per share) \| $ / shares						$ 1.34		$ 1.34
Preferred stock, shares authorized (in shares)						37,249,497		37,249,497
Series C
Class of Stock [Line Items]
Liquidation preference (in dollars per share) \| $ / shares						$ 2.87		$ 2.87
Preferred stock, shares authorized (in shares)						24,404,770		24,404,770
Series E-1
Class of Stock [Line Items]
Liquidation preference (in dollars per share) \| $ / shares						$ 0.84		$ 0.84
Warrant to purchase (in shares)			15,277,006
Warrant expiration period				10 years
Change in fair value \| $						$ 5,300,000	$ (6,800,000)	$ 4,600,000	$ 11,700,000
Preferred stock, shares authorized (in shares)						35,544,141		35,544,141
Series E-2
Class of Stock [Line Items]
Preferred stock, liquidation preference, conversion basis								0.6667
Preferred stock, liquidation preference, conversion basis, after payment								0.3333
Liquidation preference (in dollars per share) \| $ / shares						$ 0.84		$ 0.84
Preferred stock, shares authorized (in shares)						16,858,078		16,858,078
Common Stock
Class of Stock [Line Items]
Purchase of stock by consolidated VIE (in shares)		2,196,665

XML 81 R69.htm IDEA: XBRL DOCUMENT

CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY AND COMMON STOCK - Summary of Shares Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 20, 2017
Class of Stock [Line Items]
Convertible preferred stock, par value (in dollars per share)	$ 0.01		$ 0.01
Convertible preferred stock, authorized (in shares)	444,760,848		444,760,848				444,760,848
Convertible preferred stock, issued (in shares)	209,613,570		209,613,570
Convertible preferred stock, outstanding (in shares)	209,613,570		209,613,570
Liquidation Preference, Outstanding Shares	$ 370,456		$ 370,456
Convertible Preferred Stock Held by Consolidated VIE
Class of Stock [Line Items]
Convertible preferred stock, outstanding (in shares)	51,247,915	51,247,915	51,247,915	51,247,915	51,247,915	51,247,915
Series A
Class of Stock [Line Items]
Convertible preferred stock, par value (in dollars per share)	$ 0.01
Convertible preferred stock, authorized (in shares)	68,558,220
Convertible preferred stock, issued (in shares)	66,428,185
Convertible preferred stock, outstanding (in shares)	66,428,185
Liquidation Preference, Outstanding Shares	$ 19,160
Series A \| Convertible Preferred Stock Held by Consolidated VIE
Class of Stock [Line Items]
Convertible preferred stock, issued (in shares)	34,670,420
Convertible preferred stock, outstanding (in shares)	34,670,420
Series A-1
Class of Stock [Line Items]
Convertible preferred stock, par value (in dollars per share)	$ 0.01
Convertible preferred stock, authorized (in shares)	24,760,915
Convertible preferred stock, issued (in shares)	22,515,315
Convertible preferred stock, outstanding (in shares)	22,515,315
Liquidation Preference, Outstanding Shares	$ 45,031
Series B
Class of Stock [Line Items]
Convertible preferred stock, par value (in dollars per share)	$ 0.01
Convertible preferred stock, authorized (in shares)	35,775,880
Convertible preferred stock, issued (in shares)	35,127,160
Convertible preferred stock, outstanding (in shares)	35,127,160
Liquidation Preference, Outstanding Shares	$ 21,190
Series B \| Convertible Preferred Stock Held by Consolidated VIE
Class of Stock [Line Items]
Convertible preferred stock, issued (in shares)	16,577,495
Convertible preferred stock, outstanding (in shares)	16,577,495
Series C
Class of Stock [Line Items]
Convertible preferred stock, par value (in dollars per share)	$ 0.01
Convertible preferred stock, authorized (in shares)	24,404,770
Convertible preferred stock, issued (in shares)	24,404,770
Convertible preferred stock, outstanding (in shares)	24,404,770
Liquidation Preference, Outstanding Shares	$ 70,075
Series D
Class of Stock [Line Items]
Convertible preferred stock, par value (in dollars per share)	$ 0.01
Convertible preferred stock, authorized (in shares)	23,888,640
Convertible preferred stock, issued (in shares)	23,888,640
Convertible preferred stock, outstanding (in shares)	23,888,640
Liquidation Preference, Outstanding Shares	$ 165,000
Series E-1
Class of Stock [Line Items]
Convertible preferred stock, par value (in dollars per share)	$ 0.01
Convertible preferred stock, authorized (in shares)	35,544,141
Convertible preferred stock, issued (in shares)	0
Convertible preferred stock, outstanding (in shares)	0
Liquidation Preference, Outstanding Shares	$ 0
Series E-2
Class of Stock [Line Items]
Convertible preferred stock, par value (in dollars per share)	$ 0.01
Convertible preferred stock, authorized (in shares)	16,858,078
Convertible preferred stock, issued (in shares)	0
Convertible preferred stock, outstanding (in shares)	0
Liquidation Preference, Outstanding Shares	$ 0
Series F
Class of Stock [Line Items]
Convertible preferred stock, par value (in dollars per share)	$ 0.01
Convertible preferred stock, authorized (in shares)	177,720,707
Convertible preferred stock, issued (in shares)	3
Convertible preferred stock, outstanding (in shares)	3
Liquidation Preference, Outstanding Shares	$ 0
Series G
Class of Stock [Line Items]
Convertible preferred stock, par value (in dollars per share)	$ 0.01
Convertible preferred stock, authorized (in shares)	37,249,497
Convertible preferred stock, issued (in shares)	37,249,497
Convertible preferred stock, outstanding (in shares)	37,249,497
Liquidation Preference, Outstanding Shares	$ 50,000

XML 82 R70.htm IDEA: XBRL DOCUMENT

CONVERTIBLE PREFERRED STOCK, CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY AND COMMON STOCK - Valuation Techniques (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Volatility \| Series E-1
Class of Stock [Line Items]
Fair value assumptions	0.700	0.720
Volatility \| Series F
Class of Stock [Line Items]
Fair value assumptions	0.700	0.720
Risk-free interest rate \| Series E-1
Class of Stock [Line Items]
Fair value assumptions	0.0460	0.0430
Risk-free interest rate \| Series F
Class of Stock [Line Items]
Fair value assumptions	0.0460	0.0430
Expected term (in years) \| Series E-1
Class of Stock [Line Items]
Remaining contractual term (in years)	2 years 9 months	2 years 9 months
Expected term (in years) \| Series F
Class of Stock [Line Items]
Remaining contractual term (in years)	2 years 9 months	2 years 9 months
Dividend yield \| Series E-1
Class of Stock [Line Items]
Fair value assumptions	0	0
Dividend yield \| Series F
Class of Stock [Line Items]
Fair value assumptions	0	0

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef
-Topic 272
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483014/272-10-45-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 272
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482987/272-10-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(d))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(27)(b))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(28))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-03(i)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479886/946-10-S99-3

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-03(i)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479886/946-10-S99-3

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-03(i)(2)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479886/946-10-S99-3

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-03(i)(2)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479886/946-10-S99-3

XML 83 R71.htm IDEA: XBRL DOCUMENT

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Financial statement impact			$ 772,000	$ 799,000
Options outstanding, term			6 years 2 months 1 day
Dividend yield	0.00%	0.00%	0.00%	0.00%
Stock options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized cost of unvested share-based compensation awards.	$ 0		$ 0
RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested restricted stock outstanding (in shares)	2,602,133		2,602,133		2,602,383
Weighted average grant date fair value (in dollars per share)	$ 1.04		$ 1.04		$ 1.04
Unamortized expense related to unvested stock-based awards	$ 3,100,000		$ 3,100,000
Weighted average vesting period			2 years 10 months 24 days
RSUs \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			3 years
RSUs \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			4 years

XML 84 R72.htm IDEA: XBRL DOCUMENT

STOCK-BASED COMPENSATION - Summarized Option Activity under Option Plan (Details) - 2005 Stock Plan and 2015 Stock Option Plan	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Options Issued and Outstanding
Beginning Balance (in shares) \| shares	77,727,763
Options issued (in shares) \| shares	9,866,430
Options exercised (in shares) \| shares	(2,313,011)
Options forfeited (in shares) \| shares	(1,976,618)
Ending balance (in shares) \| shares	83,304,564
Options vested and expected to vest (in shares) \| shares	75,260,753
Options vested and exercisable (in shares) \| shares	57,273,400
Weighted Average Exercise Price
Beginning balance (in dollars per share) \| $ / shares	$ 0.13
Options issued (in dollars per share) \| $ / shares	0.33
Options exercised (in dollars per share) \| $ / shares	0.03
Options forfeited (in dollars per share) \| $ / shares	0.38
Ending balance (in dollars per share) \| $ / shares	0.15
Options vested and expected to vest (in dollars per share) \| $ / shares	0.15
Options vested and exercisable (in dollars per share) \| $ / shares	$ 0.07

XML 85 R73.htm IDEA: XBRL DOCUMENT

STOCK-BASED COMPENSATION - Fair Value of Stock Option Awards (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Fair value of stock option awards [Abstract]
Volatility of common stock	66.59%	68.50%	66.62%	66.95%
Risk-free interest rate	3.34%	2.93%	3.44%	2.57%
Expected life (in years)	6 years 1 month 6 days	6 years	6 years 1 month 6 days	6 years
Dividend yield	0.00%	0.00%	0.00%	0.00%

XML 86 R74.htm IDEA: XBRL DOCUMENT

STOCK-BASED COMPENSATION - Summarized Activities for the Company's RSU's (Details) - RSUs	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, beginning balance (in shares) \| shares	2,602,383
Forfeited (in shares) \| shares	(250)
Unvested, ending balance (in shares) \| shares	2,602,133
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Unvested, beginning balance (in dollars per share) \| $ / shares	$ 1.04
Forfeited (in dollars per share) \| $ / shares	2.18
Unvested, ending balance (in dollars per share) \| $ / shares	$ 1.04

XML 87 R75.htm IDEA: XBRL DOCUMENT

STOCK-BASED COMPENSATION - Stock Based Compensation Included in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 404	$ 504	$ 772	$ 799
Origination and servicing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	23	35	45	63
Sales and marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	67	173	103	201
General and administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 314	$ 296	$ 624	$ 535

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(01)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(02)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(01)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(02)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

XML 88 R76.htm IDEA: XBRL DOCUMENT

INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended
INCOME TAXES (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Taxes [Line Items]
Income tax expense	$ 70,000	$ 20,000	$ 140,000	$ 40,000
Prosper Funding LLC
Income Taxes [Line Items]
Income tax expense			$ 0	$ 0
Net effective tax rate			0.00%