Company Presentation

February 2016

Forward-Looking Statements
This presentation, including the accompanying oral presentation (collectively, this presentation), does not constitute an offer to sell or the solicitation of an offer to buy any
securities. This presentation is provided by On Deck Capital, Inc. (OnDeck) for informational purposes only. No representations express or implied are being made by
OnDeck or any other person as to the accuracy or completeness of the information contained herein.
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other legal authority. Forwardlooking statements include statements about scalability, growing distribution channels, credit predictability and information concerning our future financial performance,
business plans and objectives, potential growth opportunities, financing plans, competitive position, industry environment and potential market opportunities. Forwardlooking statements can also be identified by words such as "will," "enables," "expects," "allows," "continues," "believes," "anticipates," "estimates" or similar expressions.
Forward-looking statements are neither historical facts nor assurances of future performance. They are based only on our current beliefs, expectations and assumptions
regarding the future of our business, anticipated events and trends, the economy and other future conditions. Moreover, we do not assume responsibility for the accuracy
and completeness of forward-looking statements. As such, they are subject to inherent uncertainties, changes in circumstances, known and unknown risks and other
factors that are difficult to predict and in many cases outside our control.
As a result, you should not rely on any forward-looking statements. Our expected results may not be achieved, and actual results may differ materially from our
expectations. Important factors that could cause actual results to differ from our forward-looking statements are the risks that we may not be able to manage our anticipated
or actual growth effectively, that our credit models do not adequately identify potential risks, and other risks, including those under the heading Risk Factors in our Annual
Report on Form 10-K for the year ended December 31, 2014 and in other documents that we file with the Securities and Exchange Commission, or SEC, from time to time
which are available on the SEC website at www.sec.gov. We undertake no obligation to publicly update any forward-looking statements for any reason after the date of this
presentation to conform these statements to actual results or to changes in our expectations, except as required by law.
In addition to the U.S. GAAP financial information, this presentation includes certain non-GAAP financial measures. We believe that non-GAAP measures can provide
useful supplemental information for period-to-period comparisons of our core business and is useful to investors and others in understanding and evaluating our operating
results. These non-GAAP measures have not been calculated in accordance with U.S. GAAP. You should not consider them in isolation or as a substitute for an analysis of
our results under U.S. GAAP. There are a number of limitations related to the use of these non-GAAP measures versus their nearest GAAP equivalents. For example,
neither Adjusted EBITDA nor Adjusted Net (Loss) Income is a substitute for Net (Loss) Income and Operating expense (or any of its components) net of stock-based
compensation is not a substitute for Operating expense (or any of its components) presented under GAAP. In addition, other companies may calculate non-GAAP financial
measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for
comparison. Adjusted EBITDA excludes some recurring costs, including interest expense associated with debt used for corporate purposes, non-cash stock-based
compensation, depreciation and amortization expense and fair value adjustment for our warrant liability. Therefore Adjusted EBITDA does not reflect interest expense, the
non-cash impact of stock-based compensation or working capital needs that will continue for the foreseeable future. Adjusted Net (Loss) Income excludes stock-based
compensation expense and warrant liability fair value adjustment which will continue for the foreseeable future and therefore will generally be more favorable than Net
(Loss) Income determined in accordance with GAAP. Please refer to the Non-GAAP Reconciliations at the end of this presentation for a description of these non-GAAP
measures and a reconciliation to Net (Loss) Income.
2

A Leading Online Platform for Small Business Lending

Originations

$4 Billion+ total originations

$MM

1,158

1,874

62% y-o-y originations growth

2014

Scalable financial model

2015

557

4Q '14

4Q '15

50

68

4Q '14

4Q '15

25

42

4Q '14

4Q '15

Gross Revenue
$MM

158

255

45,000+ small businesses served

2014

5th Generation proprietary credit scoring model

369

2015

Net Revenue
$MM

160
73

76 net promoter score

2014
1. Occurred subsequent to December 31, 2015.
2. Based on OnDecks Direct channel.

2015

Investment Highlights
Massive and underserved market

Proprietary analytics and scoring models

Integrated and scalable technology platform
Diversified customer acquisition channels
Robust funding platform
Experienced management team
Attractive financial profile
4

Small Business Lending Market is Massive and Underserved

$80-120Bn
Unmet
$80-120Bn
Demand
for Small
Unmet
Business
Demand
forLines
Small
of Credit
Business
Lines
of Credit

28MM
U.S. Small Businesses

$186Bn
Business Loan
Balances Under
$250,000 in
the U.S.
in Q3 15

45K+

$0.9Bn

OnDeck Unique Small

Businesses Served

OnDeck Loans Under

Management1

Sources: U.S. SBA, FDIC 09/30/15, Oliver Wyman, How New-Form Lending Will Shape Banks Small Business Strategies, 2013
1. As of December 31, 2015. Loans Under Management represents the unpaid principal balance of loans held for investment plus the amount of principal outstanding for
loans held for sale, excluding net deferred origination costs, plus the amount of principal outstanding of term loans the company serviced for others, each at the end of the
period.

Diversity of Small Businesses Creates Challenges

for Traditional Lenders
Cash Flow Profile
Restaurant

CHALLENGES FOR
TRADITIONAL LENDERS
Credit Card Rev.

Cash Rev.

Monthly Exp.

Inventory & Payroll

Landscaping Company

Landscaping Rev.

Snow Removal Rev.

Monthly Exp.

Q1

Subcontractor Rev.
Q2

Monthly Exp.
Q3

Diverse businesses require

manual underwriting

Technology and data

limitations

Lack of standardized small

business credit score

Fuel & Payroll

Plumbing Company

Repair Rev.

Supplies & Payroll

Q4
6

Leading to a Frustrating Borrowing Experience

for Small Businesses

FRUSTRATIONS FOR
SMALL BUSINESSES

Time consuming offline process

Non-tailored credit assessment

Product mismatch

Rigid collateral requirements

The OnDeck Score

Proprietary and Purpose Built for Small Business

5th Generation
proprietary credit scoring model

Transactional

Data

Score

Public
Records

100+

Credit

external data sources

Data

Proprietary Data
Analysis Platform

Probabilistic record linkage

Dimensionality reduction

Ensemble learning

small businesses in proprietary database

Exhaustive cross validation

Data

Feature engineering

Adaptive learning

D
Social

Data

2,000+
data points per application

Accounting

Risk Grading

10 Million+

Proprietary

Data
F
8

We Rely on the OnDeck Score for Greater Accuracy,

Predictability and Access
More Accurate than the Personal Credit Score
at Predicting Bad Credit Risk1

Resulting in Funding Significantly More

Loans for the Same Risk

100%

40

% of Defaults Eliminated

90%

20
10
10%
0%
100%

40%

20% 10% 0%

Random

Personal Credit
Score

OnDeck Score

Acceptance Rate (%)

OnDeck
Score
OnDeck Score
1.

Personal Credit Score

Analysis on OnDeck Score v5 using actual OnDeck loan performance data.

Random
9

The OnDeck Solution for Small Business Lending

Apply
Online
Minutes1

Traditional
Lending

1.
2.
3.

Offline
33

Hours2

Application time depends on customer having the required documentation available.

Source: Small business survey conducted by the Federal Reserve Bank of New York, Spring 2014.
Approximately 1/3 of customers are subjected to secondary, manual review process.

Approve
Automated
Review
As Fast As
Immediately3

Manual
Review
Weeks or Months

Fund
As Fast As
Same Day

Several
Days

10

Tailored Products for Small Businesses

Use Case

Line of Credit

(Launched in 2007)

(Launched in 2013)

Hiring
New
Staff

Marketing

Managing Cash Flow

Size

$5,000 $500,000

$5,000 $100,000

Term

3 36 months

6 months

Pricing

Annual Interest Rate as low as 5.99%1

Average 42% APR2

13.99% 36% APR

Payment

Automated daily or weekly payments

Automated weekly payments

Renewal opportunity at ~50% paid down

Draw on-demand

Availability
1.
2.

Buying
Inventory

Term Loan

For select customers.

Based on 4Q 15.

11

Established and Diverse Customer Base

$580,000

7 Years

Median Annual Revenue

Median Time in Business

700+
Industries

45,000+
Small Businesses Served
in all 50 U.S. states

12

Integrated and Scalable Technology Platform

Online
Customer
Experience

Data
Aggregation,
Analytics
and Scoring

Technology
Powered
Servicing &
Collections

$4 Billion+

80,000+

9 Million+

Total Originations1

Total Loans

Customer Payments

1. Occurred intra-quarter 1Q 16.

13

Diversified and Growing Distribution Channels

Channel Mix 4Q 15
29,516

Direct &
Strategic
Partners

18,790

80%
7,103
2013

2014

2015

8,131

7,625

5,955

20%

Funding
Advisors
2013

2014

2015
Direct and Strategic Partners

Numbers represent loan units.

Funding Advisors

14

Expanding Partner Ecosystem

OnDeck Enabling Partners to Expand Core Solutions and Value Added Services

SMB
Solutions

Online
Lending

ISOs/
Processors

Banks

as a service

Includes affiliates, subsidiaries and divisions. Pending partnership with Chase

announced in 12/1/2015 Form 8-K.

15

Hybrid Funding Model Focused on Diversity

Securitization /
Warehouse

Funding Mix 4Q 15
Marketplace

OnDeck
Target Mix

55-65% of Term Loan

Originations

35-45% of Term Loan

Originations

Investor
Type

Investors Seeking Fixed

Returns

Investors Seeking Variable

Returns

Flexibility

Scalable as Originations
Grow

Greater Product and

Investor Flexibility

Cost

Low Cost Execution

Profitable Revenue Stream

Resiliency

Capital-Light Structure,
Equity Contribution Aligns
Interests

Diversified Risk Exposure,

Servicing Fee Aligns
Interests

Securitization

Marketplace

Funding mix includes the principal balance outstanding in Loans Under Management as of December 31, 2015 for loans financed with funding debt or sold to OnDeck
Marketplace investors.

Warehouse
Lines
16

Consistent Portfolio Performance Over Time

Net Charge-offs by Cohort 1
9.0%

6.9%

6.4%
5.5%

6.9%

6.8%

5.5%

5.2%

4.4%
2.9%
0.9%
0.0%
2007

2008

2009

2010

2011

2012

2013

2014

1Q '15

2Q '15

3Q '15

1. Percentage of dollars loaned that are charged off.

2. As of December 31, 2015, principal balance of all term loans in Loans Under Managment still outstanding was 0% for all cohorts except the 2013, 2014, 1Q 15, 2Q 15, 3Q 15, 4Q 15
cohorts, which had principal outstanding of 0.1%, 1.8%, 11.5%, 26.1%, 56.8% and 88.2%, respectively.

4Q '15

17

Growth Strategy

Brand and direct

marketing

Product expansion

Strategic partnerships

Expand customer
lifetime value

Data and analytics

International expansion

18

Industry Leading Management Team

Team Experience

Management Team
Noah
Breslow

Howard
Katzenberg

James
Hobson

CEO

CFO

COO

Pamela
Rice

Paul
Rosen

Krishna
Venkatraman

Technology

Sales

Data & Analytics

Cynthia
Chen

Andrea
Gellert

Zhengyuan
Lu

Risk

Marketing

Capital Markets

Board of Directors
Noah Breslow

James Robinson III

Jane J. Thompson

Chairman of the Board

RRE Ventures
American Express

Walmart Financial Services

CFPB Advisory Board

Ronald Verni

Sandy Miller

Neil Wolfson

Sage Software

Institutional Venture Partners

SF Capital Group

David Hartwig

Bruce P. Nolop

Sapphire Ventures

E*TRADE Financial Corporation

19

Financial Highlights
Originations
$MM

1,158

1,874

Rapid Growth
2014

Compelling Customer LTV

2015

557

4Q '14

4Q '15

50

68

4Q '14

4Q '15

25

42

4Q '14

4Q '15

Gross Revenue
$MM

158

255

Capital Light Funding Model

2014

Demonstrated Operating Leverage

369

2015

Net Revenue
$MM

160
73
2014

2015

20

Illustrative Loan Economics

Revenues

Expenses

Origination Fee

Interest Income

Acquisition

Processing
and Servicing
Funding Costs

Loan
Profit

Losses

21

Compelling Customer Lifetime Value

All Customers Acquired in 2013
Average 2.3 loans per customer through 9 quarters

$3
$5

3.1x+
ROI

$6

or

$7

$83

$7

Return3

$9

($MM)

after
9 quarters

$8
$20

$27

$27

Investment

$17
Acquisition Contribution2
Cost1

+2Q

+3Q

+4Q

+5Q

+6Q

+7Q

+8Q

+9Q

Through
Dec 31, 2015

2013
1. Includes upfront internal and external commissions as well as direct marketing expenses.
2. Contribution is defined to include interest income and fees collected on initial and repeat loans, less acquisition costs for repeat loans, less the following items for both initial and repeat loans:
estimated third party processing and servicing expenses, estimated funding costs (excluding any cost of equity capital) and charge offs. For this purpose, processing and servicing expenses are
estimated based on the mix of new and renewal originations and outstanding principal balances. Includes all loans originated in the period. New and repeat loans sold funding cost is estimated
based on the average on-balance sheet cost of funds rate in the period. Estimates may be adjusted in subsequent periods to reflect updated information.
3. Return on Investment (ROI) is contribution divided by initial acquisition cost. Acquisition costs include upfront internal and external commissions as well as direct marketing expenses.
4. Figures may not foot due to rounding

22

Lifetime Value Improving Over Time

All Customers Acquired in 2013 and 2014
At comparable seasoning points, 2014 shows improved returns.

Cohort Contribution Per Customer 1

Return on Investment 2
3.5x

$8,000

2013

2013
2014

2014
2.5x

$3,000
1.5x

+5 Quarters
$(2,000)

1. Cumulative Contribution as defined on the previous page.

2. Return on Investment (ROI) as defined on the previous page.

+9 Quarters

0.5x

+5 Quarters

+9 Quarters

23

Demonstrated Operating Leverage, but Investing for Growth

Driving Efficiencies in Cost of Revenues

Expanding OpEx Investment to Support Growth

84%

81%

Operating Leverage
Potential

68%

63%

61%
54%

51%
37%

2012

2013

Funding Costs

Figures are based on a percentage of gross revenue.

2014

2015

Provision for Loan Losses

2012

2013

Processing & Servicing

Sales & Marketing

2014

2015

General & Administrative

Technology & Analytics
24

Adjusted EBITDA and Adjusted Net Income (Loss)

$16.2
$10.3

$0.6
($0.2)

$0.3
($0.8)

($1.1)

($4.6)

2014

2015

Adjusted EBITDA

See appendix for a reconciliation of these non-GAAP measures.

4Q 14

4Q 15

Adjusted Net Income (Loss)

25

Building Shareholder Value

Expand our addressable market and increase customer lifetime value with a full
spectrum of SMB credit products and by investing in long-term customer relationships

Drive sustainable net revenue growth for the longer term, prioritizing stable credit
quality across the portfolio

Leverage technology and analytics leadership to extend our competitive moats

while driving operating leverage and enhancing profitability

Diversify our funding sources by type and investor to balance risk retention with
flexibility and resiliency over an economic cycle
26

APPENDIX

Supplemental Key Performance Metrics Revisions1

Revised

Historical

Loans Held for Investment and Loan Held for Sale

Average of Months in the Period

Loans Held for Investment

Average of the Quarters in the Period

Business Day Adjusted Interest Income

Divided by Revised Average Loans

Interest Income
Divided by Average Loans

Funding Debt Outstanding Adjusted for ASC 835-302

Average of Months in the Period

Funding Debt Outstanding

Average of the Quarters in the Period

Funding Cost
Divided by Revised Average Funding Debt Outstanding

Funding Cost
Divided by Average Funding Debt Outstanding

Average Loans

Effective Interest Yield

Average Funding Debt Outstanding

Cost of Funds Rate

1. For summary purposes only and is qualified in its entirety by the descriptions of the Key Performance Metrics in our earnings release issued February 22, 2016.
2. In April 2015, the Financial Accounting Standards Board issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which amends ASC 835-30, Interest - Imputation of
Interest. ASU 2015-03 requires entities to reclassify the presentation of deferred debt issuance costs in their financial statements. Under the update to the accounting standard, an entity will
be required to present such deferred costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. This accounting standard is effective beginning
January 1, 2016 and is to be applied retrospectively.

28

Supplemental Key Performance Metrics Revisions1

Revised

Average Loans

Effective Interest Yield

$MM
530.3 534.5

Historical

535.2

550.5

541.2
513.2

564.8

35.7%

37.6%

1Q '15

2Q '15

3Q '15

35.9%

1Q '15

4Q '15

37.9%

37.6%

36.7%

532.6

2Q '15

$MM
385.6

383.4

1Q '15

363.9

359.8

2Q '15

34.2%

3Q '15

4Q '15

5.8%

5.8%

5.7%

5.8%

3Q '15

4Q '15

Cost of Funds Rate

Average Funding Debt Outstanding

393.2

34.8%

351.7

3Q '15

365.6

5.2%

364.4

4Q '15

5.2%

5.1%

5.0%

1Q '15

2Q '15

Three Months Ended / Ending

Annualization Table

Business Days in Period

Annualization Factor

1Q 15

2Q 15

3Q 15

4Q 15

1Q 16

2Q 16

3Q 16

4Q 16

61

64

65

62

62

64

64

61

4.1311

3.9375

3.8769

4.0645

4.0484

3.9219

3.9219

4.1148

1. Beginning with the quarter ending March 31, 2016, the Company is refining the calculation of Effective Interest Yield (EIY) and certain related definitions to reflect the substantial growth and
impact of OnDeck Marketplace and to present EIY on a business day adjusted basis. In addition, effective January 1, 2016, the company is adopting a new a GAAP requirement regarding the
presentation of deferred debt issuance costs related to average funding debt outstanding. In preparation for these changes and to enhance comparability of prior periods, the above table
contains the relevant Key Performance Metrics (1) as originally presented historically and (2) as revised to conform to the pending adoption of the 2016 calculation methodology and the
retrospective application of the new GAAP requirement regarding the presentation of deferred debt issuance costs. For summary purposes only and is qualified in its entirety by the descriptions
of the Key Performance Metrics in our earnings release issued February 22, 2016.

29

Current Debt Facilities: Considerable Existing Capacity

($MM)

Maturity Date

WA Interest
Rate

Principal
Outstanding

Borrowing
Capacity

Funding Debt 1,4

OnDeck Asset Securitization Trust LLC

May-18

3.4%

$175.0

$175.0

Prime OnDeck Receivable Trust, LLC

June-17

2.7%

59.4

100.0

Receivable Assets of OnDeck, LLC

May-17

3.3%

47.5

50.0

OnDeck Account Receivables Trust 2013-1 LLC

Sept-17

2.6%

42.1

150.0

On Deck Asset Company, LLC

May-17

8.6%

27.7

50.0

Jan 2016 through Aug 2017

6.9%

12.8

12.8

Aug-17 3

5.0%

8.7

100.0

Jan 2016 through Oct 2017

Various

6.9

6.9

$380.1

$644.7

$2.7

$20.0

Small Business Asset Fund 2009 LLC

On Deck Asset Pool, LLC
Partner Synthetic Participations 4
Total Funding Debt
Corporate Debt 1,4
On Deck Capital, Inc.
1.
2.
3.
4.

Oct-16

4.50%

Balances and Capacities as of December 31, 2015.

The period during which remaining cash flow can be used to purchase additional loans expires April 30, 2016.
The period during which new borrowings may be made expires in August 2016.
While the lenders under our corporate debt facility and partner synthetic participation have direct recourse to us as the borrower thereunder, lenders to our subsidiaries do not have
direct recourse to us.

30

Net Cumulative Lifetime Charge-off Ratios All Loans

As of December 31, 2015, net charge-off as a percentage of original Unpaid Principal Balance, all term loans in Loans Under Management represented.

31

Non-GAAP Operating Expense Reconciliation

Processing and Servicing Non-GAAP Expense Reconciliation

Sales and Marketing Non-GAAP Expense Reconciliation

($MM)
GAAP expense

Stock-based compensation
Expense excluding stock-based compensation

4Q '15
$17.1

4Q '14
$11.4

2015
$60.6

2014
$33.2

(0.9)

(0.4)

(3.1)

(0.7)

$16.2

$11.0

$57.5

$32.5

Stock-based compensation

25.3%

22.6%

23.8%

21.0%

(1.3)

(0.7)

(1.2)

(0.4)

23.9%

21.9%

22.6%

20.6%

GAAP expense

3.1%

3.1%

3.2%

2.9%

Stock-based compensation

(0.2)

(0.1)

(0.2)

(0.1)

Expense excluding stock-based compensation

2.9%

3.0%

3.1%

2.8%

Expense excluding stock-based compensation

Percentage of Originations

GAAP expense
Stock-based compensation
Expense excluding stock-based compensation

4Q '14

2015

2014

$4.0

$2.3

$13.1

$8.2

Stock-based compensation

(0.2)

(0.1)

(0.8)

(0.2)

Expense excluding stock-based compensation

$3.7

$2.2

$12.3

$8.0

GAAP expense

5.9%

4.6%

5.1%

5.2%

Stock-based compensation

(0.4)

(0.2)

(0.3)

(0.1)

Expense excluding stock-based compensation

5.5%

4.4%

4.8%

5.1%

4Q '15

4Q '14

12.7

6.0

General and Administrative Non-GAAP Expense Reconciliation

($MM)
GAAP expense
Stock-based compensation
Expense excluding stock-based compensation

Technology and Analytics Non-GAAP Expense Reconciliation

($MM)

4Q '15

Percentage of Gross Revenue

Percentage of Gross Revenue

GAAP expense

($MM)
GAAP expense

2015
42.7

2014

GAAP expense
Stock-based compensation

(0.6)

(0.2)

(2.4)

(0.5)

$5.8

$40.3

$16.9

18.9%

12.0%

16.7%

11.0%

(0.9)

(0.5)

(0.9)

(0.3)

17.9%

11.5%

15.8%

10.7%

4Q '14

$13.6

$7.7

2015
$45.3

2014
$21.7

(1.7)

(0.7)

(5.4)

(1.4)

$11.8

$7.0

$39.9

$20.3

20.1%

15.3%

17.8%

13.7%

Percentage of Gross Revenue

17.4

$12.1

4Q '15

Expense excluding stock-based compensation

(2.6)

(1.4)

(2.1)

(0.9)

17.5%

13.9%

15.7%

12.8%

Percentage of Gross Revenue

GAAP expense

Stock-based compensation
Expense excluding stock-based compensation

Operating expense (or its components) excluding stock-based compensation expense and the percentages computed using those metrics are not presented in accordance with GAAP and are
non-GAAP financial measures. Management believes they can provide useful supplemental information to investors and others for comparisons in understanding and evaluating our operating
expenses without the impact of non-cash stock-based compensation which can vary significantly from period to period.

32

Non-GAAP Adjusted EBITDA Reconciliation

Adjusted EBITDA

Twelve Months Ended

December 31,

Three Months Ended

December 31,

(000s)

2014

2015

2014

2015

Net Loss

($18,708)

($2,231)

($4,291)

($5,144)

398

306

124

56

Depreciation and Amortization

4,071

6,508

1,223

1,886

Stock-Based Compensation Expense

2,842

11,582

1,395

3,517

11,232

2,110

($165)

$16,165

$561

$315

Adjustments:
Corporate Interest Expense

Income Tax Expense

Warrant Liability Fair Value Adjustment

Adjusted EBITDA

Adjusted EBITDA represents our net income (loss), adjusted to exclude interest expense associated with debt used for corporate purposes (rather than funding costs associated with
lending activities), income tax expense, depreciation and amortization, stock-based compensation expense and warrant liability fair value adjustment. EBITDA is impacted by changes
from period to period in the fair value of the liability related to preferred stock warrants. Management believes that adjusting EBITDA to eliminate the impact of the changes in fair value
of these warrants is useful to analyze the operating performance of the business, unaffected by changes in the fair value of preferred stock warrants which are not relevant to the
ongoing operations of the business. All such preferred stock warrants converted to common stock warrants upon initial our initial public offering in December 2014.

33

Non-GAAP Adjusted (Loss) Income Reconciliation

Adjusted Net (Loss) Income

Twelve Months Ended

December 31,

Three Months Ended

December 31,

(000s)

2014

2015

2014

2015

Net (Loss) Income

($18,708)

($2,231)

($4,291)

($5,144)

2,842

11,582

1,395

3,517

958

500

11,232

2,110

($4,634)

$10,309

($786)

($1,127)

Adjustments:
Stock-Based Compensation Expense
Net loss attributable to non-controlling interest
Warrant Liability Fair Value Adjustment
Adjusted Net (Loss) Income

Adjusted Net Income (Loss) per share represents our net income (loss) adjusted to exclude net loss attributable to non-controlling interest, stock-based compensation expense and warrant
liability fair value adjustment, each on the same basis and with the same limitations as described above for Adjusted EBITDA, divided by the weighted average common shares outstanding
during the period. Adjusted Net Income (Loss) per share does not include the impact of accretion of dividends on redeemable convertible preferred stock or Series A and B preferred stock
redemptions. All such preferred stock converted to common stock upon our initial public offering in December 2014.

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Deferred Tax Asset

(000s)

As of December 31, 2015 As of December 31, 2014

Deferred tax assets relating to:

Net operating loss carryforwards
Loan loss reserve
Imputed interest income
Loss on sublease
Deferred rent
Miscellaneous items

$19,183
20,231
729
(20)
1,613
5

$12,271
18,989
444
145
664
4

Total gross deferred tax assets

$41,741

$32,517

$1,756
4,613
3,394

$1,049
214
5,164

Total gross deferred tax liabilities

$9,763

$6,427

Deferred assets less liabilities

31,978

26,090

(31,978)

(26,090)

Deferred tax liabilities:

Internally developed software
Property, equipment and software
Origination costs

Less: valuation allowance

Net deferred tax asset

1. Our net operating loss carryforwards for federal income tax purposes were approximately $50.6 million, $32.2 million and $47.5 million at December 31, 2015, 2014 and 2013, respectively,
and, if not utilized, will expire at various dates beginning in 2027. State net operating loss carryforwards were $49.8 million, $31.4 million and $47.2 million at December 31, 2015, 2014 and
2013, respectively. Net operating loss carryforwards and tax credit carryforwards reflected above may be limited due to historical and future ownership changes.

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