| Debt
|
|
|
|
|
|
|
|
• | Adequate compensation: We estimate adequate compensation as the rate a willing market participant would require to service loans with similar characteristics as those in the serviced portfolio. In the event of a lack of transparency and quantity of transactions related to trades of servicing rights of comparable loans (i.e., loans with comparable terms, unpaid principal balances, renewal rates and default rates) we may consider the actual cost incurred as a basis for determining what a market participant would require to service the loans. |
• | Discount rate: For servicing rights on loans, the discount rate reflects the time value of money and a risk premium intended to reflect the amount of compensation market participants would require. |
• | Renewal rate: We estimate the timing and probability that a borrower may renew their loan in advance of scheduled repayment, thus reducing the projected unpaid principal balance and expected term of the loan, which are used to project future servicing revenues. |
• | Default rate: We estimate the timing and probability of loan defaults and write-offs, thus reducing the projected unpaid principal balance and expected term of the loan, which are used to project future servicing revenues. |
1. | The financial assets are isolated from the transferor and its consolidated affiliates as well as its creditors. |
2. | The transferee or beneficial interest holders have the right to pledge or exchange the transferred financial assets. |
3. | The transferor does not maintain effective control of the transferred assets. |
|
2015 | 2014 | 2013 | |||||||||
Interest on unpaid principal balance | $ | 227,579 | $ | 172,472 | $ | 51,699 | |||||
Interest on deposits | 408 | 70 | 7 | ||||||||
Amortization of net deferred origination costs | (32,939 | ) | (27,267 | ) | 11,235 | ||||||
Total interest income | $ | 195,048 | $ | 145,275 | $ | 62,941 |
|
2015 | 2014 | ||||||
Term loans | $ | 482,596 | $ | 466,386 | |||
Lines of credit | 61,194 | 24,177 | |||||
Total unpaid principal balance | 543,790 | 490,563 | |||||
Net deferred origination costs | 8,952 | 13,544 | |||||
Total loans held for investment | $ | 552,742 | $ | 504,107 |
2015 | 2014 | 2013 | |||||||||
Balance at January 1 | $ | 49,804 | $ | 19,443 | $ | 9,288 | |||||
Provision for loan losses | 74,863 | 67,432 | 26,570 | ||||||||
Loans charged off | (78,485 | ) | (39,638 | ) | (17,651 | ) | |||||
Recoveries of loans previously charged off | 7,129 | 2,567 | 1,236 | ||||||||
Allowance for loan losses at December 31 | $ | 53,311 | $ | 49,804 | $ | 19,443 |
2015 | 2014 | ||||||
Non-delinquent loans | $ | 486,729 | $ | 430,689 | |||
Delinquent: paying (accrual status) | 28,192 | 40,049 | |||||
Delinquent: non-paying (non-accrual status) | 28,869 | 19,825 | |||||
Total | $ | 543,790 | $ | 490,563 |
2015 | 2014 | ||||||
By delinquency status: | |||||||
Non-delinquent loans | $ | 486,729 | $ | 430,689 | |||
1-14 calendar days past due | 21,360 | 23,954 | |||||
15-29 calendar days past due | 8,703 | 9,462 | |||||
30-59 calendar days past due | 10,347 | 10,707 | |||||
60-89 calendar days past due | 7,443 | 7,724 | |||||
90 + calendar days past due | 9,208 | 8,027 | |||||
Total unpaid principal balance | $ | 543,790 | $ | 490,563 |
2015 | 2014 | ||||||
Loans held for sale | $ | 696 | $ | 1,483 | |||
Net deferred origination costs | 10 | 40 | |||||
Loans held for sale, net | $ | 706 | $ | 1,523 |
|
2015 | ||||
Fair value at the beginning of period | $ | — | ||
Addition: | ||||
Servicing resulting from transfers of financial assets | 3,708 | |||
Changes in fair value: | ||||
Change in inputs or assumptions used in the valuation model | 1,051 | |||
Other changes in fair value (1) | (1,270 | ) | ||
Fair value at the end of period (Level 3) | $ | 3,489 |
|
Estimated Useful Life | 2015 | 2014 | |||||||
Computer/office equipment | 12 – 36 months | $ | 11,866 | $ | 7,249 | ||||
Capitalized internal-use software | 36 months | 15,674 | 10,599 | ||||||
Leasehold improvements | Life of lease | 15,417 | 6,343 | ||||||
Total property, equipment and software, at cost | 42,957 | 24,191 | |||||||
Less accumulated depreciation and amortization | (16,770 | ) | (10,262 | ) | |||||
Property, equipment and software, net | $ | 26,187 | $ | 13,929 |
|
Description | Type | Maturity Date | Weighted Average Interest Rate at December 31, 2015 | December 31, 2015 | December 31, 2014 | ||||||||
Funding Debt: | |||||||||||||
ODAST Agreement | Securitization Facility | May 2018 (1) | 3.4% | $ | 174,980 | $ | 174,972 | ||||||
PORT Agreement | Revolving | June 2017 | 2.7% | 59,415 | — | ||||||||
RAOD Agreement | Revolving | May 2017 | 3.3% | 47,465 | — | ||||||||
ODART Agreement | Revolving | September 2017 | 2.6% | 42,090 | 105,598 | ||||||||
ODAC Agreement | Revolving | May 2017 | 8.6% | 27,699 | 32,733 | ||||||||
SBAF Agreement | Revolving | Various(2) | 6.9% | 12,783 | 16,740 | ||||||||
ODAP Agreement | Revolving | August 2017 (3) | 5.0% | 8,819 | 56,686 | ||||||||
Partner Synthetic Participations | Term | Various(4) | Various | 6,861 | 1,199 | ||||||||
380,112 | 387,928 | ||||||||||||
Corporate Debt: | |||||||||||||
Square 1 Agreement | Revolving | October 2016 | 4.5% | 2,700 | 12,000 | ||||||||
$ | 382,812 | $ | 399,928 |
(1) | The period during which remaining cash flow can be used to purchase additional loans expires April 30, 2016 |
(2) | Maturity dates range from January 2016 through August 2017 |
(3) | The period during which new borrowings may be made under this facility expires in August 2016 |
(4) | Maturity dates range from January 2016 through October 2017 |
• | the increase of the total facility size from $111.8 million to $167.6 million. with the Class A commitments increased from $100 million to $150 million and the Class B commitments increased from $11.8 million to $17.6 million; |
• | the extension of the commitment termination date of the ODART Agreement by approximately one year to September 15, 2017; |
• | the extension of the date on or prior to which early termination fees may be payable in the event of a termination or other permanent reduction of the revolving commitments by approximately one year to May 15, 2017, and the ability to make certain partial commitment terminations without early termination fees; |
• | the termination of the Class B revolving lending commitment, the effect of which is to reduce the total facility capacity to $150 million; the termination was made at ODART's request and consented to by the Class B Revolving Lender. The ODART Second A&R Credit Agreement also contemplates the reintroduction, at ODART's election and administrative agent's consent, of one or more Class B Revolving Lending resulting in Class B commitments up to $17.6 million, thereby potentially restoring the facility size to up to$167.6 million. The borrowing base advance rate for reintroduced Class B revolving loans is 95% and the interest rate will be LIBOR plus 7.00%. |
2016 | $ | 69,046 | |
2017 | 277,308 | ||
2018 | 36,458 | ||
2019 | — | ||
2020 | — | ||
Thereafter | — | ||
Total | $ | 382,812 |
|
|
Series A | Series B | Series C | Series C-1 | Series D | Series E | Total Amount | ||||||||||||||||||||||
Balance, January 1, 2013 | 3,250 | 21,838 | 23,113 | 5,025 | — | — | 53,226 | |||||||||||||||||||||
Redemption of preferred stock(1) | (835 | ) | (193 | ) | — | — | — | — | (1,028 | ) | ||||||||||||||||||
Issuance of preferred stock(2) | — | — | — | — | 58,675 | — | 58,675 | |||||||||||||||||||||
Accretion of dividends on preferred stock | 144 | 1,273 | 1,636 | 376 | 4,041 | — | 7,470 | |||||||||||||||||||||
Balance, December 31, 2013 | $ | 2,559 | $ | 22,918 | $ | 24,749 | $ | 5,401 | $ | 62,716 | $ | — | $ | 118,343 | ||||||||||||||
Issuance of preferred stock(2) | — | — | — | — | — | 76,985 | 76,985 | |||||||||||||||||||||
Exercise of preferred stock warrants | — | 5,982 | — | 7,225 | — | 85 | 13,292 | |||||||||||||||||||||
Accretion of dividends on preferred stock | 124 | 1,240 | 1,570 | 413 | 4,619 | 4,918 | 12,884 | |||||||||||||||||||||
Conversion of preferred stock to common stock in connection with initial public offering | (2,683 | ) | (30,140 | ) | (26,319 | ) | (13,039 | ) | (67,335 | ) | (81,988 | ) | (221,504 | ) | ||||||||||||||
Balance, December 31, 2014 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
(1) | During 2013, we redeemed 1,514,698 shares of Series A and 91,460 shares of Series B stock held by investors. The differential between the redemption price and the carrying value of the shares of $5.3 million was charged to accumulated deficit in accordance with accounting for distinguishing liabilities from equity. |
(2) | Includes the conversion of a convertible note. |
|
|
2015 | 2014 | 2013 | ||||||
Federal statutory rate | 34.0 | % | 34.0 | % | 34.0 | % | ||
Effect of: | ||||||||
Change in valuation allowance | (28.0 | )% | (35.7 | )% | (40.3 | )% | ||
Federal effect of change in state and local tax valuation allowance | (6.0 | )% | 1.7 | % | 6.3 | % | ||
Income tax provision effective rate | — | % | — | % | — | % |
2015 | 2014 | ||||||
Deferred tax assets relating to: | |||||||
Net operating loss carryforwards | $ | 19,183 | $ | 12,271 | |||
Loan loss reserve | 20,231 | 18,989 | |||||
Imputed interest income | 729 | 444 | |||||
Loss on sublease | (20 | ) | 145 | ||||
Deferred rent | 1,613 | 664 | |||||
Miscellaneous items | 5 | 4 | |||||
Total gross deferred tax assets | 41,741 | 32,517 | |||||
Deferred tax liabilities: | |||||||
Internally developed software | 1,756 | 1,049 | |||||
Property, equipment and software | 4,613 | 214 | |||||
Origination costs | 3,394 | 5,164 | |||||
Total gross deferred tax liabilities | 9,763 | 6,427 | |||||
Deferred assets less liabilities | 31,978 | 26,090 | |||||
Less: valuation allowance | (31,978 | ) | (26,090 | ) | |||
Net deferred tax asset | $ | — | $ | — |
|
2015 | |||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | |||||||||||||||
Servicing assets | $ | — | $ | — | $ | 3,489 | $ | 3,489 | |||||||
Total assets | $ | — | $ | — | $ | 3,489 | $ | 3,489 |
December 31, 2015 | ||||
Unobservable input | Weighted Average | |||
Servicing assets | Discount rate | 30.00 | % | |
Cost of service(1) | 0.09 | % | ||
Renewal rate | 53.21 | % | ||
Default rate | 10.00 | % | ||
(1) Estimated cost of servicing a loan as a percentage of unpaid principal balance. |
Servicing Assets | |||
Default rate assumption: | |||
Default rate increase of 25% | $ | (145 | ) |
Default rate increase of 50% | $ | (282 | ) |
Cost to service assumption: | |||
Cost to service increase by 25% | $ | (79 | ) |
Cost to service increase by 50% | $ | (159 | ) |
2014 | |||
Warrant liability balance at January 1 | $ | 4,446 | |
Exercise of warrants | (10,766 | ) | |
Change in fair value | 11,232 | ||
Conversion of preferred stock warrants to common stock warrants upon IPO | (4,912 | ) | |
Warrant liability balance at December 31 | $ | — |
December 31, 2015 | |||||||||||||||||||
Description | Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||||
Loans held for investment | $ | 499,431 | $ | 545,740 | $ | — | $ | — | $ | 545,740 | |||||||||
Loans held for sale | 706 | 763 | — | — | 763 | ||||||||||||||
Total assets | $ | 500,137 | $ | 546,503 | $ | — | $ | — | $ | 546,503 | |||||||||
Description | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Fixed-rate debt | $ | 194,624 | $ | 190,411 | $ | — | $ | — | $ | 190,411 | |||||||||
Total fixed-rate debt | $ | 194,624 | $ | 190,411 | $ | — | $ | — | $ | 190,411 |
|
• | 7,200,000 shares of our common stock; |
• | 4% of the outstanding shares of our common stock as of the last day of our immediately preceding fiscal year, which is referred to as the threshold percentage; |
• | a percentage equal to the threshold percentage, plus the difference between the threshold percentage and the percentage added to the 2014 Plan for each prior fiscal year; or |
• | such other amount as our board of directors may determine. |
• | 1% of the outstanding shares of our common stock on the first day of such fiscal year; |
• | 1,800,000 shares of our common stock; or |
• | such other amount as may be determined by our board of directors. |
2015 | 2014 | 2013 | |||
Risk-free interest rate | 1.65-2.13% | 1.02-2.08% | 0.88-2.29% | ||
Expected term (years) | 5.5 - 6.0 | 3.2 - 6.1 | 5.8 - 8.5 | ||
Expected volatility | 41 - 47% | 35 - 59% | 54 - 60% | ||
Dividend yield | —% | —% | —% | ||
Weighted-average grant date fair value per share | $5.70 | $5.57 | $0.65 |
Number of Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | ||||||||||
Outstanding at January 1, 2015 | 10,371,469 | $ | 4.59 | — | — | ||||||||
Granted | 1,611,617 | $ | 13.84 | — | — | ||||||||
Exercised | (804,857 | ) | $ | 1.24 | — | — | |||||||
Forfeited | (430,878 | ) | $ | 7.42 | — | — | |||||||
Expired | (36,030 | ) | $ | 6.19 | — | — | |||||||
Outstanding at December 31, 2015 | 10,711,321 | $ | 6.16 | 7.8 | $ | 53,012 | |||||||
Exerciseable at December 31, 2015 | 5,146,604 | $ | 3.18 | 7.1 | $ | 37,857 | |||||||
Vested or expected to vest as of December 31, 2015 | 10,393,562 | $ | 6.00 | 7.8 | $ | 52,643 |
Number of RSUs | Weighted-Average Grant Date Fair Value | |||||
Unvested at December 31, 2014 | — | — | ||||
RSUs granted | 1,939,462 | $ | 12.99 | |||
RSUs vested | — | — | ||||
RSUs forfeited/expired | (86,010 | ) | $ | 16.06 | ||
Unvested at December 31, 2015 | 1,853,452 | $ | 12.85 | |||
Expected to vest after December 31, 2015 | 1,384,650 | $ | 12.98 |
2015 | 2014 | ||||
Risk-free interest rate | 0.27 | % | 0.17 | % | |
Expected term (years) | 0.50 | 0.75 | |||
Expected volatility | 42 | % | 42 | % | |
Dividend yield | — | % | — | % |
2015 | 2014 | ||||||
Sales and marketing | $ | 3,081 | $ | 686 | |||
Technology and analytics | 2,351 | 539 | |||||
Processing and servicing | 775 | 219 | |||||
General and administrative | 5,375 | 1,398 | |||||
Total | $ | 11,582 | $ | 2,842 |
|
For the years ending December 31, | |||
2016 | $ | 5,465 | |
2017 | 7,872 | ||
2018 | 8,142 | ||
2019 | 8,686 | ||
2020 | 8,951 | ||
Thereafter | 51,410 | ||
Total | $ | 90,526 |
|
December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | ||||||||||||||||
Gross revenues | 67,599 | 67,398 | 63,312 | 56,458 | 50,491 | 43,509 | 35,502 | 28,562 | |||||||||||||||
Net revenue | 42,299 | 46,033 | 43,015 | 28,312 | 25,401 | 22,060 | 18,628 | 7,343 | |||||||||||||||
Net income (loss) | (5,144 | ) | 3,507 | 4,748 | (5,342 | ) | (4,291 | ) | 354 | (1,054 | ) | (13,717 | ) | ||||||||||
Net loss attributable to common stockholders | (4,644 | ) | 3,733 | 4,980 | (5,342 | ) | (7,348 | ) | (3,273 | ) | (4,650 | ) | (16,321 | ) | |||||||||
Basic | (0.07 | ) | 0.05 | 0.07 | (0.08 | ) | (0.13 | ) | (0.51 | ) | (0.88 | ) | (3.47 | ) | |||||||||
Diluted | (0.07 | ) | 0.05 | 0.07 | (0.08 | ) | (0.13 | ) | (0.51 | ) | (0.88 | ) | (3.47 | ) |
|
Description | Balance at Beginning of Period | Charged to Cost and Expenses | Charged to Other Accounts | Deductions— Write offs | Balance at End of Period | |||||||||
(in thousands) | ||||||||||||||
Allowance for Loan Losses: | ||||||||||||||
2015 | 49,804 | 74,863 | 7,129 | (78,485 | ) | 53,311 | ||||||||
2014 | 19,443 | 67,432 | 2,567 | (39,638 | ) | 49,804 | ||||||||
2013 | 9,288 | 26,570 | 1,236 | (17,651 | ) | 19,443 | ||||||||
Deferred tax asset valuation allowance: | ||||||||||||||
2015 | 26,090 | (2,514 | ) | 8,402 | — | 31,978 | ||||||||
2014 | 26,199 | (5,826 | ) | 5,717 | — | 26,090 | ||||||||
2013 | 17,266 | — | 8,933 | — | 26,199 |
|
• | Adequate compensation: We estimate adequate compensation as the rate a willing market participant would require to service loans with similar characteristics as those in the serviced portfolio. In the event of a lack of transparency and quantity of transactions related to trades of servicing rights of comparable loans (i.e., loans with comparable terms, unpaid principal balances, renewal rates and default rates) we may consider the actual cost incurred as a basis for determining what a market participant would require to service the loans. |
• | Discount rate: For servicing rights on loans, the discount rate reflects the time value of money and a risk premium intended to reflect the amount of compensation market participants would require. |
• | Renewal rate: We estimate the timing and probability that a borrower may renew their loan in advance of scheduled repayment, thus reducing the projected unpaid principal balance and expected term of the loan, which are used to project future servicing revenues. |
• | Default rate: We estimate the timing and probability of loan defaults and write-offs, thus reducing the projected unpaid principal balance and expected term of the loan, which are used to project future servicing revenues. |
1. | The financial assets are isolated from the transferor and its consolidated affiliates as well as its creditors. |
2. | The transferee or beneficial interest holders have the right to pledge or exchange the transferred financial assets. |
3. | The transferor does not maintain effective control of the transferred assets. |
December 31, 2015 | |||||||||||||||||||
Description | Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||||
Loans held for investment | $ | 499,431 | $ | 545,740 | $ | — | $ | — | $ | 545,740 | |||||||||
Loans held for sale | 706 | 763 | — | — | 763 | ||||||||||||||
Total assets | $ | 500,137 | $ | 546,503 | $ | — | $ | — | $ | 546,503 | |||||||||
Description | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Fixed-rate debt | $ | 194,624 | $ | 190,411 | $ | — | $ | — | $ | 190,411 | |||||||||
Total fixed-rate debt | $ | 194,624 | $ | 190,411 | $ | — | $ | — | $ | 190,411 |
|
2015 | 2014 | 2013 | |||||||||
Interest on unpaid principal balance | $ | 227,579 | $ | 172,472 | $ | 51,699 | |||||
Interest on deposits | 408 | 70 | 7 | ||||||||
Amortization of net deferred origination costs | (32,939 | ) | (27,267 | ) | 11,235 | ||||||
Total interest income | $ | 195,048 | $ | 145,275 | $ | 62,941 |
|
2015 | 2014 | ||||||
Term loans | $ | 482,596 | $ | 466,386 | |||
Lines of credit | 61,194 | 24,177 | |||||
Total unpaid principal balance | 543,790 | 490,563 | |||||
Net deferred origination costs | 8,952 | 13,544 | |||||
Total loans held for investment | $ | 552,742 | $ | 504,107 |
2015 | 2014 | 2013 | |||||||||
Balance at January 1 | $ | 49,804 | $ | 19,443 | $ | 9,288 | |||||
Provision for loan losses | 74,863 | 67,432 | 26,570 | ||||||||
Loans charged off | (78,485 | ) | (39,638 | ) | (17,651 | ) | |||||
Recoveries of loans previously charged off | 7,129 | 2,567 | 1,236 | ||||||||
Allowance for loan losses at December 31 | $ | 53,311 | $ | 49,804 | $ | 19,443 |
2015 | 2014 | ||||||
Non-delinquent loans | $ | 486,729 | $ | 430,689 | |||
Delinquent: paying (accrual status) | 28,192 | 40,049 | |||||
Delinquent: non-paying (non-accrual status) | 28,869 | 19,825 | |||||
Total | $ | 543,790 | $ | 490,563 |
2015 | 2014 | ||||||
By delinquency status: | |||||||
Non-delinquent loans | $ | 486,729 | $ | 430,689 | |||
1-14 calendar days past due | 21,360 | 23,954 | |||||
15-29 calendar days past due | 8,703 | 9,462 | |||||
30-59 calendar days past due | 10,347 | 10,707 | |||||
60-89 calendar days past due | 7,443 | 7,724 | |||||
90 + calendar days past due | 9,208 | 8,027 | |||||
Total unpaid principal balance | $ | 543,790 | $ | 490,563 |
2015 | 2014 | ||||||
Loans held for sale | $ | 696 | $ | 1,483 | |||
Net deferred origination costs | 10 | 40 | |||||
Loans held for sale, net | $ | 706 | $ | 1,523 |
|
2015 | ||||
Fair value at the beginning of period | $ | — | ||
Addition: | ||||
Servicing resulting from transfers of financial assets | 3,708 | |||
Changes in fair value: | ||||
Change in inputs or assumptions used in the valuation model | 1,051 | |||
Other changes in fair value (1) | (1,270 | ) | ||
Fair value at the end of period (Level 3) | $ | 3,489 |
|
Estimated Useful Life | 2015 | 2014 | |||||||
Computer/office equipment | 12 – 36 months | $ | 11,866 | $ | 7,249 | ||||
Capitalized internal-use software | 36 months | 15,674 | 10,599 | ||||||
Leasehold improvements | Life of lease | 15,417 | 6,343 | ||||||
Total property, equipment and software, at cost | 42,957 | 24,191 | |||||||
Less accumulated depreciation and amortization | (16,770 | ) | (10,262 | ) | |||||
Property, equipment and software, net | $ | 26,187 | $ | 13,929 |
|
Description | Type | Maturity Date | Weighted Average Interest Rate at December 31, 2015 | December 31, 2015 | December 31, 2014 | ||||||||
Funding Debt: | |||||||||||||
ODAST Agreement | Securitization Facility | May 2018 (1) | 3.4% | $ | 174,980 | $ | 174,972 | ||||||
PORT Agreement | Revolving | June 2017 | 2.7% | 59,415 | — | ||||||||
RAOD Agreement | Revolving | May 2017 | 3.3% | 47,465 | — | ||||||||
ODART Agreement | Revolving | September 2017 | 2.6% | 42,090 | 105,598 | ||||||||
ODAC Agreement | Revolving | May 2017 | 8.6% | 27,699 | 32,733 | ||||||||
SBAF Agreement | Revolving | Various(2) | 6.9% | 12,783 | 16,740 | ||||||||
ODAP Agreement | Revolving | August 2017 (3) | 5.0% | 8,819 | 56,686 | ||||||||
Partner Synthetic Participations | Term | Various(4) | Various | 6,861 | 1,199 | ||||||||
380,112 | 387,928 | ||||||||||||
Corporate Debt: | |||||||||||||
Square 1 Agreement | Revolving | October 2016 | 4.5% | 2,700 | 12,000 | ||||||||
$ | 382,812 | $ | 399,928 |
(1) | The period during which remaining cash flow can be used to purchase additional loans expires April 30, 2016 |
(2) | Maturity dates range from January 2016 through August 2017 |
(3) | The period during which new borrowings may be made under this facility expires in August 2016 |
(4) | Maturity dates range from January 2016 through October 2017 |
2016 | $ | 69,046 | |
2017 | 277,308 | ||
2018 | 36,458 | ||
2019 | — | ||
2020 | — | ||
Thereafter | — | ||
Total | $ | 382,812 |
|
Series A | Series B | Series C | Series C-1 | Series D | Series E | Total Amount | ||||||||||||||||||||||
Balance, January 1, 2013 | 3,250 | 21,838 | 23,113 | 5,025 | — | — | 53,226 | |||||||||||||||||||||
Redemption of preferred stock(1) | (835 | ) | (193 | ) | — | — | — | — | (1,028 | ) | ||||||||||||||||||
Issuance of preferred stock(2) | — | — | — | — | 58,675 | — | 58,675 | |||||||||||||||||||||
Accretion of dividends on preferred stock | 144 | 1,273 | 1,636 | 376 | 4,041 | — | 7,470 | |||||||||||||||||||||
Balance, December 31, 2013 | $ | 2,559 | $ | 22,918 | $ | 24,749 | $ | 5,401 | $ | 62,716 | $ | — | $ | 118,343 | ||||||||||||||
Issuance of preferred stock(2) | — | — | — | — | — | 76,985 | 76,985 | |||||||||||||||||||||
Exercise of preferred stock warrants | — | 5,982 | — | 7,225 | — | 85 | 13,292 | |||||||||||||||||||||
Accretion of dividends on preferred stock | 124 | 1,240 | 1,570 | 413 | 4,619 | 4,918 | 12,884 | |||||||||||||||||||||
Conversion of preferred stock to common stock in connection with initial public offering | (2,683 | ) | (30,140 | ) | (26,319 | ) | (13,039 | ) | (67,335 | ) | (81,988 | ) | (221,504 | ) | ||||||||||||||
Balance, December 31, 2014 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
(1) | During 2013, we redeemed 1,514,698 shares of Series A and 91,460 shares of Series B stock held by investors. The differential between the redemption price and the carrying value of the shares of $5.3 million was charged to accumulated deficit in accordance with accounting for distinguishing liabilities from equity. |
(2) | Includes the conversion of a convertible note. |
|
2015 | 2014 | 2013 | ||||||
Federal statutory rate | 34.0 | % | 34.0 | % | 34.0 | % | ||
Effect of: | ||||||||
Change in valuation allowance | (28.0 | )% | (35.7 | )% | (40.3 | )% | ||
Federal effect of change in state and local tax valuation allowance | (6.0 | )% | 1.7 | % | 6.3 | % | ||
Income tax provision effective rate | — | % | — | % | — | % |
2015 | 2014 | ||||||
Deferred tax assets relating to: | |||||||
Net operating loss carryforwards | $ | 19,183 | $ | 12,271 | |||
Loan loss reserve | 20,231 | 18,989 | |||||
Imputed interest income | 729 | 444 | |||||
Loss on sublease | (20 | ) | 145 | ||||
Deferred rent | 1,613 | 664 | |||||
Miscellaneous items | 5 | 4 | |||||
Total gross deferred tax assets | 41,741 | 32,517 | |||||
Deferred tax liabilities: | |||||||
Internally developed software | 1,756 | 1,049 | |||||
Property, equipment and software | 4,613 | 214 | |||||
Origination costs | 3,394 | 5,164 | |||||
Total gross deferred tax liabilities | 9,763 | 6,427 | |||||
Deferred assets less liabilities | 31,978 | 26,090 | |||||
Less: valuation allowance | (31,978 | ) | (26,090 | ) | |||
Net deferred tax asset | $ | — | $ | — |
|
2015 | |||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | |||||||||||||||
Servicing assets | $ | — | $ | — | $ | 3,489 | $ | 3,489 | |||||||
Total assets | $ | — | $ | — | $ | 3,489 | $ | 3,489 |
December 31, 2015 | ||||
Unobservable input | Weighted Average | |||
Servicing assets | Discount rate | 30.00 | % | |
Cost of service(1) | 0.09 | % | ||
Renewal rate | 53.21 | % | ||
Default rate | 10.00 | % | ||
(1) Estimated cost of servicing a loan as a percentage of unpaid principal balance. |
Servicing Assets | |||
Default rate assumption: | |||
Default rate increase of 25% | $ | (145 | ) |
Default rate increase of 50% | $ | (282 | ) |
Cost to service assumption: | |||
Cost to service increase by 25% | $ | (79 | ) |
Cost to service increase by 50% | $ | (159 | ) |
2014 | |||
Warrant liability balance at January 1 | $ | 4,446 | |
Exercise of warrants | (10,766 | ) | |
Change in fair value | 11,232 | ||
Conversion of preferred stock warrants to common stock warrants upon IPO | (4,912 | ) | |
Warrant liability balance at December 31 | $ | — |
December 31, 2015 | |||||||||||||||||||
Description | Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||||
Loans held for investment | $ | 499,431 | $ | 545,740 | $ | — | $ | — | $ | 545,740 | |||||||||
Loans held for sale | 706 | 763 | — | — | 763 | ||||||||||||||
Total assets | $ | 500,137 | $ | 546,503 | $ | — | $ | — | $ | 546,503 | |||||||||
Description | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Fixed-rate debt | $ | 194,624 | $ | 190,411 | $ | — | $ | — | $ | 190,411 | |||||||||
Total fixed-rate debt | $ | 194,624 | $ | 190,411 | $ | — | $ | — | $ | 190,411 |
|
2015 | 2014 | 2013 | |||
Risk-free interest rate | 1.65-2.13% | 1.02-2.08% | 0.88-2.29% | ||
Expected term (years) | 5.5 - 6.0 | 3.2 - 6.1 | 5.8 - 8.5 | ||
Expected volatility | 41 - 47% | 35 - 59% | 54 - 60% | ||
Dividend yield | —% | —% | —% | ||
Weighted-average grant date fair value per share | $5.70 | $5.57 | $0.65 |
Number of Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | ||||||||||
Outstanding at January 1, 2015 | 10,371,469 | $ | 4.59 | — | — | ||||||||
Granted | 1,611,617 | $ | 13.84 | — | — | ||||||||
Exercised | (804,857 | ) | $ | 1.24 | — | — | |||||||
Forfeited | (430,878 | ) | $ | 7.42 | — | — | |||||||
Expired | (36,030 | ) | $ | 6.19 | — | — | |||||||
Outstanding at December 31, 2015 | 10,711,321 | $ | 6.16 | 7.8 | $ | 53,012 | |||||||
Exerciseable at December 31, 2015 | 5,146,604 | $ | 3.18 | 7.1 | $ | 37,857 | |||||||
Vested or expected to vest as of December 31, 2015 | 10,393,562 | $ | 6.00 | 7.8 | $ | 52,643 |
Number of RSUs | Weighted-Average Grant Date Fair Value | |||||
Unvested at December 31, 2014 | — | — | ||||
RSUs granted | 1,939,462 | $ | 12.99 | |||
RSUs vested | — | — | ||||
RSUs forfeited/expired | (86,010 | ) | $ | 16.06 | ||
Unvested at December 31, 2015 | 1,853,452 | $ | 12.85 | |||
Expected to vest after December 31, 2015 | 1,384,650 | $ | 12.98 |
2015 | 2014 | ||||
Risk-free interest rate | 0.27 | % | 0.17 | % | |
Expected term (years) | 0.50 | 0.75 | |||
Expected volatility | 42 | % | 42 | % | |
Dividend yield | — | % | — | % |
2015 | 2014 | ||||||
Sales and marketing | $ | 3,081 | $ | 686 | |||
Technology and analytics | 2,351 | 539 | |||||
Processing and servicing | 775 | 219 | |||||
General and administrative | 5,375 | 1,398 | |||||
Total | $ | 11,582 | $ | 2,842 |
|
For the years ending December 31, | |||
2016 | $ | 5,465 | |
2017 | 7,872 | ||
2018 | 8,142 | ||
2019 | 8,686 | ||
2020 | 8,951 | ||
Thereafter | 51,410 | ||
Total | $ | 90,526 |
For the years ending December 31, | |||
2016 | $ | 5,465 | |
2017 | 7,872 | ||
2018 | 8,142 | ||
2019 | 8,686 | ||
2020 | 8,951 | ||
Thereafter | 51,410 | ||
Total | $ | 90,526 |
|
December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | ||||||||||||||||
Gross revenues | 67,599 | 67,398 | 63,312 | 56,458 | 50,491 | 43,509 | 35,502 | 28,562 | |||||||||||||||
Net revenue | 42,299 | 46,033 | 43,015 | 28,312 | 25,401 | 22,060 | 18,628 | 7,343 | |||||||||||||||
Net income (loss) | (5,144 | ) | 3,507 | 4,748 | (5,342 | ) | (4,291 | ) | 354 | (1,054 | ) | (13,717 | ) | ||||||||||
Net loss attributable to common stockholders | (4,644 | ) | 3,733 | 4,980 | (5,342 | ) | (7,348 | ) | (3,273 | ) | (4,650 | ) | (16,321 | ) | |||||||||
Basic | (0.07 | ) | 0.05 | 0.07 | (0.08 | ) | (0.13 | ) | (0.51 | ) | (0.88 | ) | (3.47 | ) | |||||||||
Diluted | (0.07 | ) | 0.05 | 0.07 | (0.08 | ) | (0.13 | ) | (0.51 | ) | (0.88 | ) | (3.47 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|