all member loans are unsecured obligations of individual borrower members with fixed interest rates , three-year or five-year maturities , minimum amounts of $ 1,000 and maximum amounts up to $ 35,000. the member loans are posted on our website pursuant to a program agreement with webbank , an fdic-insured , state-chartered industrial bank organized under the laws of the state of utah , approved loans are funded and issued by webbank and sold to us after closing . as a part of operating our lending platform , we verify the identity of members , obtain borrower members ' credit characteristics from consumer reporting agencies such as transunion , experian or equifax and screen borrower members for eligibility to participate in the platform and facilitate the posting of member loans . also , after acquiring the member loans from webbank , we service the member loans on an ongoing basis . as of december 31 , 2012 , the platform facilitated 95,902 member loans totaling approximately $ 1.2 billion since the platform 's inception . our agreement with webbank enables us to make our platform available to borrower members on a uniform basis nationwide , except that as of december 31 , 2012 , we do not currently offer member loans in idaho , indiana , iowa , maine , mississippi , nebraska and north dakota . we pay webbank a monthly service fee based on the amount of loans issued by webbank in each month , subject to a minimum monthly fee . to date , we have funded our operations primarily with proceeds from our preferred stock issuances and common stock issuances and now with the operations of the company , which are described under liquidity and capital resources in our management 's discussion and analysis of financial condition and results of operations . from inception of the company through december 31 , 2012 , we have raised approximately $ 102.5 million ( net ) through pref e rred equity financings . in june 2012 , we issued and sold via private placement a total of 2.5 million shares of series e convertible preferred stock at $ 7.00 per share for aggregate cash consideration of $ 17.5 million , less total transaction expenses of approximately $ 0.2 million that were recorded as a reduction to gross proceeds . 51 we have incurred net losses since our inception . our net loss was approximately $ 4.2 million for the nine months ended december 31 , 2012. we earn revenues from fees , primarily loan fees charged to borrower members , investor servicing fees and management fees charged by lca . we expect that the number of borrower and investor members and the volume of member loans facilitated through our platform will continue to increase , and that we will generate increased revenue from these fees . for the nine months ended december 31 , 2012 , we were cash-flow positive on an operating basis . we expect that will continue operating at or near breakeven during calendar year 2013. if our assumptions regarding continued growth and operating plan are incorrect , we may need to slow our investment spending , which could slow our rate of growth or ability to continue operating on a cash-flow positive basis , and our current liquidity resources may be consumed . significant accounting policies and estimates the preparation of our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the united states requires us to make judgments , assumptions , and estimates that affect the amounts reported in our consolidated financial statements and accompanying notes . we believe that the judgments , assumptions and estimates upon which we rely are reasonable based upon information available to us at the time that these judgments , assumptions and estimates are made . however , any differences between these judgments , assumptions and estimates and actual results could have a material impact on our statement of operations and financial condition . the accounting policies which are more fully described in note 2 to our consolidated financial statements reflect our most significant judgments , assumptions and estimates and which we believe are critical in understanding and evaluating our reported financial results include : ( 1 ) revenue recognition ; ( 2 ) fair value determination ; ( 3 ) allowance for loan losses ; and ( 4 ) share-based compensation ; and ( 5 ) provision for income taxes , net of valuation allowances for deferred tax assets . these estimates and assumptions are inherently subjective in nature , actual results may differ from these estimates and assumptions , and the differences could be material . member loans at fair value we have elected fair value accounting for the vast majority of member loans facilitated through the platform since october 13 , 2008 , including all member loans originated since october 1 , 2011 , and all related notes and certificates . the fair value election for these member loans , notes and certificates allows symmetrical accounting for the timing and amounts recognized for both expected unrealized losses and realized losses on the member loans and the related notes and certificates , consistent with the member payment dependent design of the notes and certificates . all of our member loans are unsecured but the gross potential credit risk to the company from member loans is significantly mitigated to the extent that loans are financed by notes or certificates that absorb the loans ' credit losses pursuant to the member payment dependency provision . story_separator_special_tag the increase in interest income in the nine months ended december 31 , 2012 , compared to the comparable period in the prior year is primarily due to the significant increase in the outstanding balances of member loans at fair value . the average balance of member loans at fair value outstanding during the nine months ended december 31 , 2012 , was $ 551.0 million as compared to an estimated average balance of $ 220.8 million during the nine months ended december 31 , 2011 , an increase of 150 % . for the nine months ended december 31 , 2012 and the fiscal year ended march 31 , 2012 , we recorded interest income from member loans at fair value , excluding loan origination fees , of $ 56.7 million and $ 31.9 million , respectively . the increase in interest income in the nine months ended december 31 , 2012 , compared to the prior fiscal year is primarily due to the significant increase in the outstanding balances of member loans at fair value in the latter period . the average balance of member loans at fair value outstanding during the nine months ended december 31 , 2012 , was $ 551.0 million as compared to an average balance of $ 249.3 million during the fiscal year ended march 31 , 2012 , an increase of 121 % . the increase was partially offset by the december 31 , 2012 period including nine months versus the march 31 , 2012 period including twelve months . interest earned on member loans at amortized cost subsequent to the effectiveness of our registration statement related to our notes in october 2008 , we periodically provided funds to originate some member loans at amortized cost which generated interest income on member loans at amortized cost . however , as we have increased our investor marketing efforts to increase the issuance of notes and certificates to finance loan purchases , the originations and outstanding balances of member loans at amortized cost have diminished . as noted earlier , we changed our accounting policy to elect fair value accounting for all loans originated on and after october 1 , 2011. accordingly , we did not facilitate any member loans at amortized cost for the nine months ended december 31 , 2012 and the balance of member loans at amortized cost was zero at december 31 , 2012. during 2012 , the remaining member loans at amortized costs were reclassified as member loans at fair value . for the nine months ended december 31 , 2012 and 2011 , we recorded interest income on member loans at amortized cost , including the amortization of deferred net loan origination fees and costs , of $ 0.1 million and $ 0.5 , respectively . the decline in interest income on member loans at amortized cost is primarily due to the decline in the balances of member loans at amortized cost for the nine months ended december 31 , 2012 , versus the balances in the nine months ended december 31 , 2011 , which was partially offset by more rapid amortization of the net deferred origination fees into interest income during the nine months ended december 31 , 2012. for the nine months ended december 31 , 2012 and the fiscal year ended march 31 , 2012 , we recorded interest income on member loans at amortized cost , including the amortization of deferred net loan origination fees and costs , of $ 0.1 million and $ 0.7 , respectively . the decline in interest income on member loans at amortized cost is primarily due to the decline in the balances of member loans at amortized cost for the nine months ended december 31 , 2012 , versus the balances in the fiscal year ended march 31 , 2012 , which was partially offset by more rapid amortization of the net deferred origination fees into interest income during the nine months ended december 31 , 2012. interest earned on cash and cash equivalents interest income from cash and cash equivalents is recognized as it is earned . for the nine months ended december 31 , 2012 , we recognized $ 0.03 million of interest income earned on cash and cash equivalents versus $ 0.02 million of interest income recognized for the nine months ended december 31 , 2011. the increase in interest earned during the nine months ended december 31 , 2012 compared to the comparable 2011 period was due to higher cash and cash equivalents balances in 2012. for the nine months ended december 31 , 2012 , we recognized $ 0.03 million of interest income earned on cash and cash equivalents versus $ 0.02 million of interest income recognized for the fiscal year ended march 31 , 2012. the low absolute amounts of interest earned on cash and cash equivalents reflects the current environment of very low short-term interest rates . the differences in interest income earned in the periods are primarily a function of changes in the balances of interest-bearing cash deposits on hand . we expect interest income from cash and cash equivalents to remain a small percentage of our revenue . 56 interest expense on notes and certificates we record interest expense on notes and certificates issued by the trust . we recorded interest expense for notes and certificates of $ 56.6 million and $ 19.3 million , respectively , for the nine months ended december 31 , 2012 and 2011. the increase in interest expense in the nine months ended december 31 , 2012 , compared to the comparable period in the prior year was primarily due to the significant increase in the outstanding balances of notes and certificates at fair value . the estimated average balance of notes and certificates at fair value outstanding during the nine months ended december 31 , 2012 , was $ 552.5 million as compared to an estimated average balance of $ 219.2 million

liquidity and capital resources the following table summarizes our cash flows for the nine months ended december 31 , 2012 and 2011 ( in thousands ) . replace_table_token_17_th net cash provided by ( used in ) operating activities was $ 0.8 million and ( $ 8.9 million ) , and ( $ 10.6 million ) for the nine months ended december 31 , 2012 and 2011 , and the fiscal year ended march 31 , 2012 , respectively . net cash provided by operating activities was positive for the nine months ended december 31 , 2012 , due to increases in accrued interest payable , accrued expenses and payable to member lenders . cash used in operating activities was used to fund ongoing operations such as compensation and benefits , legal and accounting services , marketing expenses and cost of service expenses . net cash used in investing activities for the nine months ended december 31 , 2012 and 2011 were $ 440.8 million and $ 146.5 million , respectively . net cash used in investing activities for the fiscal year ended march 31 , 2011 was $ 218.8 million . net cash used for the nine months ended december 31 , 2012 primarily represents originations of member loans at fair value of $ 608.2 million and a net increase in restricted cash of $ 2.6 million , partially offset by the repayment of member loans at fair value of $ 160.8 million and proceeds from sale of member loans of $ 9.9 million . net cash provided by financing activities for the nine months ended december 31 , 2012 and 2011 were $ 461.3 million and $ 166.8 million , respectively . net cash provided by financing activities for the fiscal year ended march 31 , 2012 was $ 247.3 million . net cash provided for the nine months ended december 31 , 2012 primarily represents proceeds from the issuance of notes and certificates at fair value of $ 606.9 million and the net proceeds from the issuance of series e preferred stock of $ 17.3 million , partially offset by payments on notes and certificates at fair value of $ 163.9 million .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources the following table summarizes our cash flows for the nine months ended december 31 , 2012 and 2011 ( in thousands ) . replace_table_token_17_th net cash provided by ( used in ) operating activities was $ 0.8 million and ( $ 8.9 million ) , and ( $ 10.6 million ) for the nine months ended december 31 , 2012 and 2011 , and the fiscal year ended march 31 , 2012 , respectively . net cash provided by operating activities was positive for the nine months ended december 31 , 2012 , due to increases in accrued interest payable , accrued expenses and payable to member lenders . cash used in operating activities was used to fund ongoing operations such as compensation and benefits , legal and accounting services , marketing expenses and cost of service expenses . net cash used in investing activities for the nine months ended december 31 , 2012 and 2011 were $ 440.8 million and $ 146.5 million , respectively . net cash used in investing activities for the fiscal year ended march 31 , 2011 was $ 218.8 million . net cash used for the nine months ended december 31 , 2012 primarily represents originations of member loans at fair value of $ 608.2 million and a net increase in restricted cash of $ 2.6 million , partially offset by the repayment of member loans at fair value of $ 160.8 million and proceeds from sale of member loans of $ 9.9 million . net cash provided by financing activities for the nine months ended december 31 , 2012 and 2011 were $ 461.3 million and $ 166.8 million , respectively . net cash provided by financing activities for the fiscal year ended march 31 , 2012 was $ 247.3 million . net cash provided for the nine months ended december 31 , 2012 primarily represents proceeds from the issuance of notes and certificates at fair value of $ 606.9 million and the net proceeds from the issuance of series e preferred stock of $ 17.3 million , partially offset by payments on notes and certificates at fair value of $ 163.9 million .
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 Suspicious Activity Report : all member loans are unsecured obligations of individual borrower members with fixed interest rates , three-year or five-year maturities , minimum amounts of $ 1,000 and maximum amounts up to $ 35,000. the member loans are posted on our website pursuant to a program agreement with webbank , an fdic-insured , state-chartered industrial bank organized under the laws of the state of utah , approved loans are funded and issued by webbank and sold to us after closing . as a part of operating our lending platform , we verify the identity of members , obtain borrower members ' credit characteristics from consumer reporting agencies such as transunion , experian or equifax and screen borrower members for eligibility to participate in the platform and facilitate the posting of member loans . also , after acquiring the member loans from webbank , we service the member loans on an ongoing basis . as of december 31 , 2012 , the platform facilitated 95,902 member loans totaling approximately $ 1.2 billion since the platform 's inception . our agreement with webbank enables us to make our platform available to borrower members on a uniform basis nationwide , except that as of december 31 , 2012 , we do not currently offer member loans in idaho , indiana , iowa , maine , mississippi , nebraska and north dakota . we pay webbank a monthly service fee based on the amount of loans issued by webbank in each month , subject to a minimum monthly fee . to date , we have funded our operations primarily with proceeds from our preferred stock issuances and common stock issuances and now with the operations of the company , which are described under liquidity and capital resources in our management 's discussion and analysis of financial condition and results of operations . from inception of the company through december 31 , 2012 , we have raised approximately $ 102.5 million ( net ) through pref e rred equity financings . in june 2012 , we issued and sold via private placement a total of 2.5 million shares of series e convertible preferred stock at $ 7.00 per share for aggregate cash consideration of $ 17.5 million , less total transaction expenses of approximately $ 0.2 million that were recorded as a reduction to gross proceeds . 51 we have incurred net losses since our inception . our net loss was approximately $ 4.2 million for the nine months ended december 31 , 2012. we earn revenues from fees , primarily loan fees charged to borrower members , investor servicing fees and management fees charged by lca . we expect that the number of borrower and investor members and the volume of member loans facilitated through our platform will continue to increase , and that we will generate increased revenue from these fees . for the nine months ended december 31 , 2012 , we were cash-flow positive on an operating basis . we expect that will continue operating at or near breakeven during calendar year 2013. if our assumptions regarding continued growth and operating plan are incorrect , we may need to slow our investment spending , which could slow our rate of growth or ability to continue operating on a cash-flow positive basis , and our current liquidity resources may be consumed . significant accounting policies and estimates the preparation of our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the united states requires us to make judgments , assumptions , and estimates that affect the amounts reported in our consolidated financial statements and accompanying notes . we believe that the judgments , assumptions and estimates upon which we rely are reasonable based upon information available to us at the time that these judgments , assumptions and estimates are made . however , any differences between these judgments , assumptions and estimates and actual results could have a material impact on our statement of operations and financial condition . the accounting policies which are more fully described in note 2 to our consolidated financial statements reflect our most significant judgments , assumptions and estimates and which we believe are critical in understanding and evaluating our reported financial results include : ( 1 ) revenue recognition ; ( 2 ) fair value determination ; ( 3 ) allowance for loan losses ; and ( 4 ) share-based compensation ; and ( 5 ) provision for income taxes , net of valuation allowances for deferred tax assets . these estimates and assumptions are inherently subjective in nature , actual results may differ from these estimates and assumptions , and the differences could be material . member loans at fair value we have elected fair value accounting for the vast majority of member loans facilitated through the platform since october 13 , 2008 , including all member loans originated since october 1 , 2011 , and all related notes and certificates . the fair value election for these member loans , notes and certificates allows symmetrical accounting for the timing and amounts recognized for both expected unrealized losses and realized losses on the member loans and the related notes and certificates , consistent with the member payment dependent design of the notes and certificates . all of our member loans are unsecured but the gross potential credit risk to the company from member loans is significantly mitigated to the extent that loans are financed by notes or certificates that absorb the loans ' credit losses pursuant to the member payment dependency provision . story_separator_special_tag the increase in interest income in the nine months ended december 31 , 2012 , compared to the comparable period in the prior year is primarily due to the significant increase in the outstanding balances of member loans at fair value . the average balance of member loans at fair value outstanding during the nine months ended december 31 , 2012 , was $ 551.0 million as compared to an estimated average balance of $ 220.8 million during the nine months ended december 31 , 2011 , an increase of 150 % . for the nine months ended december 31 , 2012 and the fiscal year ended march 31 , 2012 , we recorded interest income from member loans at fair value , excluding loan origination fees , of $ 56.7 million and $ 31.9 million , respectively . the increase in interest income in the nine months ended december 31 , 2012 , compared to the prior fiscal year is primarily due to the significant increase in the outstanding balances of member loans at fair value in the latter period . the average balance of member loans at fair value outstanding during the nine months ended december 31 , 2012 , was $ 551.0 million as compared to an average balance of $ 249.3 million during the fiscal year ended march 31 , 2012 , an increase of 121 % . the increase was partially offset by the december 31 , 2012 period including nine months versus the march 31 , 2012 period including twelve months . interest earned on member loans at amortized cost subsequent to the effectiveness of our registration statement related to our notes in october 2008 , we periodically provided funds to originate some member loans at amortized cost which generated interest income on member loans at amortized cost . however , as we have increased our investor marketing efforts to increase the issuance of notes and certificates to finance loan purchases , the originations and outstanding balances of member loans at amortized cost have diminished . as noted earlier , we changed our accounting policy to elect fair value accounting for all loans originated on and after october 1 , 2011. accordingly , we did not facilitate any member loans at amortized cost for the nine months ended december 31 , 2012 and the balance of member loans at amortized cost was zero at december 31 , 2012. during 2012 , the remaining member loans at amortized costs were reclassified as member loans at fair value . for the nine months ended december 31 , 2012 and 2011 , we recorded interest income on member loans at amortized cost , including the amortization of deferred net loan origination fees and costs , of $ 0.1 million and $ 0.5 , respectively . the decline in interest income on member loans at amortized cost is primarily due to the decline in the balances of member loans at amortized cost for the nine months ended december 31 , 2012 , versus the balances in the nine months ended december 31 , 2011 , which was partially offset by more rapid amortization of the net deferred origination fees into interest income during the nine months ended december 31 , 2012. for the nine months ended december 31 , 2012 and the fiscal year ended march 31 , 2012 , we recorded interest income on member loans at amortized cost , including the amortization of deferred net loan origination fees and costs , of $ 0.1 million and $ 0.7 , respectively . the decline in interest income on member loans at amortized cost is primarily due to the decline in the balances of member loans at amortized cost for the nine months ended december 31 , 2012 , versus the balances in the fiscal year ended march 31 , 2012 , which was partially offset by more rapid amortization of the net deferred origination fees into interest income during the nine months ended december 31 , 2012. interest earned on cash and cash equivalents interest income from cash and cash equivalents is recognized as it is earned . for the nine months ended december 31 , 2012 , we recognized $ 0.03 million of interest income earned on cash and cash equivalents versus $ 0.02 million of interest income recognized for the nine months ended december 31 , 2011. the increase in interest earned during the nine months ended december 31 , 2012 compared to the comparable 2011 period was due to higher cash and cash equivalents balances in 2012. for the nine months ended december 31 , 2012 , we recognized $ 0.03 million of interest income earned on cash and cash equivalents versus $ 0.02 million of interest income recognized for the fiscal year ended march 31 , 2012. the low absolute amounts of interest earned on cash and cash equivalents reflects the current environment of very low short-term interest rates . the differences in interest income earned in the periods are primarily a function of changes in the balances of interest-bearing cash deposits on hand . we expect interest income from cash and cash equivalents to remain a small percentage of our revenue . 56 interest expense on notes and certificates we record interest expense on notes and certificates issued by the trust . we recorded interest expense for notes and certificates of $ 56.6 million and $ 19.3 million , respectively , for the nine months ended december 31 , 2012 and 2011. the increase in interest expense in the nine months ended december 31 , 2012 , compared to the comparable period in the prior year was primarily due to the significant increase in the outstanding balances of notes and certificates at fair value . the estimated average balance of notes and certificates at fair value outstanding during the nine months ended december 31 , 2012 , was $ 552.5 million as compared to an estimated average balance of $ 219.2 million

