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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 contemplated public offering, scheduled to reach the market on January 27, 2010 was delayed by FFN.

Friend Finder had not turned a net profit since at least 2008.

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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.

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