Company: PGYWW
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0000950103-25-015781
Chunk: 61

Company: Pagaya Technologies Ltd.
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 61
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 structure that has the effect of
concentrating voting power in our Class B Ordinary Shares, which are not publicly traded. Our Class A Ordinary Shares, which are publicly
traded, represent less than 20% of the voting power of all our outstanding shares. In certain circumstances, including under volatile
market conditions and considering the percentage of voting power represented by our publicly-traded Class A Ordinary Shares, we believe
it may be appropriate to employ alternative methods to determine the value of our assets other than the market capitalization method.
As indicated in the discussion under “—Passive foreign investment company considerations—PFIC status of Pagaya”
in Pagaya’s most recent Annual Report on Form 10-K, Pagaya believes it was not a PFIC for the taxable year ended December 31, 2024,
using a valuation method for its assets that is not based solely on the publicly quoted values of its market capitalization. However,
Pagaya’s PFIC status will depend in part on the proper valuation method with respect to its assets.Because Pagaya holds a significant
amount of passive assets, and because its market capitalization has been, and may continue to be, volatile, Pagaya cannot give any assurance
regarding its PFIC status for the taxable year ending December 31, 2025 or future taxable years. Even if Pagaya determines that it is
not a PFIC for a taxable year, there can be no assurance that the IRS will agree with that conclusion and that the IRS would not successfully
challenge Pagaya’s position. Because Pagaya’s PFIC status for any taxable year depends in part on the value of its assets
from time to time, Pagaya’s U.S. counsel expresses no opinion with respect to our PFIC status for any past, current or future taxable
year. U.S. Holders of Class A Ordinary Shares should be aware of the risk that Pagaya may be or become a PFIC and should review the section
and consult their tax advisors concerning the application of the PFIC rules to Class A Ordinary Shares in their particular circumstances.

Certain adverse U.S. federal income tax consequences
could apply to a U.S. Holder if Pagaya is treated as a PFIC for any taxable year during which such U.S. Holder holds Pagaya’s Class
A Ordinary Shares. Under the PFIC rules, if Pagaya was considered a PFIC at any time that a U.S. Holder holds its Class A Ordinary Shares,
it would continue to be treated as a PF