As of January 17, 2010, Friend Finder Networks had a negative net worth equal to 8 million, million in cash on hand and 0 million in liabilities.
The company had also indicated that it lacked existing cash or cash from operations to repay a .5 million debt that was due July 31.
Friend Finder had not turned a net profit since at least 2008.
Ezra Shashoua, the company's chief financial officer, blamed the lower revenue on a drop in membership and increased advertising costs for affiliates, according to court documents.
First, I don’t think that any scam is involved here although there might be people who use the site to scam people unrelated to the site.
And I think that these “scammers” are on all types of dating sites.
The contemplated public offering, scheduled to reach the market on January 27, 2010 was delayed by FFN.Holland confirmed that the site "does not collect data regarding our members' sexual preferences."Leaked Source said breaking with usual tradition because of the kind of breach, it will not make the data searchable.Friend Finder Networks (formerly Various, Inc.) is an American internet company founded in 1996 by Andrew Conru.Millions of horny singles use the app, and more than 13.3 million people check it out every month.In addition to filtering matches by location, Be Naughty allows you to search by age, gender, sexual orientation, and photos, among other identifiers.When pressed on details, Ballou declined to comment further.But why Friend Finder Networks has held onto millions of accounts belonging to customers is a mystery, given that the site was sold to Penthouse Global Media in February."We are aware of the data hack and we are waiting on Friend Finder to give us a detailed account of the scope of the breach and their remedial actions in regard to our data," said Kelly Holland, the site's chief executive, in an email on Saturday.After discovering that users had been using the service to seek sexual partners, he launched Adult Friend Finder as a spin-off, followed later by other spin-offs dealing with different regions and niches.Much of the company's growth without investment capital has been attributed to its affiliate program, with more than 500,000 affiliates to date.Its flagship online dating services include Friend Finder and its various spin-off services (such as Adult Friend Finder, and other dating services targeting various territories and niche categories, such as the South America-focused Amigos.com, and Christian dating website Big Church), as well as niche websites for alternative lifestyles, and adult webcam websites.Friend Finder was launched in 1996 by Andrew Conru.