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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.
Shashoua also said credit card companies had refused to process transactions for the company's Internet businesses.
On November 13, 2016, it was reported that a database of over 412 million accounts, including usernames, e-mails, and passwords, had been breached and leaked from several Friend Finder Networks websites.
The company claimed it had "just been made aware of a potential data security issue and understands and fully appreciates the seriousness of the issue.""Until the investigation is completed, it will be difficult to determine with certainty the full scope of the incident, but we will continue to work vigilantly to address this potential issue and will provide updates," the company said.
Adult Friend Finder, which was founded in 1996, has more than 40 million members, according to its website.
The company could not be reached for further comment.
Friend Finder Networks (formerly Various, Inc.) is an American internet company founded in 1996 by Andrew Conru.
"The leaked records, contained in 15 Excel spreadsheets, are still online in an underground forum.
The forum is a so-called "hidden" website hosted on the Tor network, which helps masks the site's true IP address.