Much of the company's growth without investment capital has been attributed to its affiliate program, with more than 500,000 affiliates to date.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.
Case in point: the $249 Svakom Siime Eye, Wi-Fi-enabled vibrator -- which comes with a built-in camera for livestreaming and, according to security researchers at Pen Test Partners, an interface that can be easily hacked by anyone within Wi Fi range.
reports, because the smart dildo creates a Wi-Fi access point with the easily guessed default password of "88888888".
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.
The company had also indicated that it lacked existing cash or cash from operations to repay a $44.5 million debt that was due July 31.
It has cautioned that, unless it can repay or restructure its obligation, it will face “a material deficiency in our short term liquidity.” With these shortfalls in mind, the company again announced an intention to make an initial public offering of stock, representing a 49% stake in the company, with plans to use the proceeds to pay down its debt and become listed on the New York Stock Exchange.
The company primarily deals in adult entertainment, online dating, and social networking services.
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.
Adult website visitors are being told to put tape over their computer webcam to stop hackers secretly filming them to use as blackmail in demand for money.