Company: PGYWW
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001883085-25-000050
Chunk: 54

Company: Pagaya Technologies Ltd.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 16
Chunk 54
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 variable interests in nonconsolidated VIEs (in thousands):Carrying AmountMaximum Exposure to LossVIE AssetsAs of December 31, 2024$628,038 $628,038 $10,708,146 As of December 31, 2023$591,030 $591,030 $8,363,402 From time to time, the Company may, but is not obligated to, purchase assets from the Financing Vehicles. Such repurchases can occur at the Company’s discretion. For the year ended December 31, 2024, the Company purchased approximately $39.9 million of loan principal from the Financing Vehicles, and included a loss of approximately $36.4 million in general and administrative expenses with respect to these loans. For the year ended December 31, 2023, the Company did not purchase assets or loans from the Financing Vehicles. For the year ended December 31, 2022, the Company purchased approximately $29.6 million of loan 

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principal from the Financing Vehicles, and included a loss of approximately $22.9 million in general and administrative expenses with respect to these loans. 

NOTE 9 - EMPLOYEE BENEFITS 

Severance pay — Under Israeli employment laws, Israeli employees of the Company are included under Section 14 of the Severance Pay Law, 5723-1963 (“Section 14”). According to Section 14, these employees are entitled to monthly payments made by the Company on their behalf with insurance companies. For the year ended December 31, 2024, 2023 and 2022, the Company incurred severance related expenses of $3.1 million, $3.1 million and $1.0 million, respectively.

Payments in accordance with Section 14 release the Company from any future severance payments with respect to those employees. The obligation to make the monthly deposits at a rate of 8.33% of their monthly salary is expensed as incurred. In addition, the aforementioned deposits are not recorded as an asset in the consolidated balance sheet, and there is no liability recorded as the Company does not have a future obligation to make any additional payments. 

NOTE 10 - LEASES 

The Company leases facilities under operating leases with various expiration dates through 2032. The Company leases office space in New York, Israel and several other locations. The security deposits for the leases are $3.3