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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 passwords were either stored as plain text or encrypted using the obsolete and insecure SHA-1 cipher.

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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.“Over the past several weeks, Friend Finder has received a number of reports regarding potential security vulnerabilities from a variety of sources,” Friend Finder Networks Vice President and Senior Counsel Diana Ballou told ZDNet.“Immediately upon learning this information, we took several steps to review the situation and bring in the right external partners to support our investigation.” Some of the claims were false extortion attempts, Ballou said, but the company “did identify and fix a vulnerability that was related to the ability to access source code through an injection vulnerability.” I’ve reached out to Friend Finder and will update this story if I hear back.Forget about sex—we're just talking real, honest-to-goodness, devoted yet totally low-maintenance friendships that you can have for the rest of your life. Notice the drop-down menu doesn't have an option above five, because you're a God-damned grownup who shouldn't be moving mid-lease.—When you _ _move, do you rent a moving truck or expect five of your older, married friends with minivans to haul your Hefty bags of costume jewelry and whimsical throw pillows and then not even order pizza for everyone? And, if you and your new adult friend end up seeing the same therapist, can you be chill about that, or are you going to get all territorial? Either way, would you judge a person who chose to play Mario Maker on a Friday night instead of attending your housewarming party and playing beer pong with a bunch of strangers? Here's a sampling from our hundred-item questionnaire:—How long can you go without talking to/seeing a friend before you worry that "something's up" or feel compelled to text "are we cool? —If your adult friend , like, "Hey, dude, where'd you go? Adult Friend Finder is an adult dating site that provides services to male and female users who seek short-term sexual encounters over the internet.During the survey period it was found, that 13 percent of responding individuals aged between 18 to 29 years reported that they were current users.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.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.

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