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.
But an email trail on that a warning about the leak was sent by a cyber security consultant on 12 March.
Around two hours later an employee at Friend Finder Networks then replied with a “read receipt” to say that the warning email had been read.
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.
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.
On 21 May Channel 4 News revealed that hackers had posted the deeply personal sexual information of around 3.9m users of Adult Friend Finder, which is one of the world’s largest dating websites.
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.
The online dating company would not comment on the read receipt, but said its “leadership” only became aware of the breach on 20 May when contacted by Channel 4 News.
“Friend Finder employees receive hundreds of sales and marketing spam messages daily, including many from third party cyber security consultants, and any earlier communication on this specific issue was directed to junk mail folders and not considered a legitimate email,” the company said in a statement.