Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 167

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 167
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NOTE 12 - SHARE BASED COMPENSATION

Share Options—Granted share options expire at the earlier of termination of employment or ten years from the date of grant. Share options generally vest over four years of the employment commencement date or with 25% vesting on the twelve-month anniversary of the employment commencement date, and the remaining on a pro-rata basis each quarter over the next three years. Any options, which are forfeited or not exercised before expiration, become available for future grants.  The following table summarized the Company’s share option activity during the nine months ended September 30, 2025: Number of OptionsWeighted Average Exercise PriceWeighted AverageRemaining ContractualTerm (Years)AggregateIntrinsic Value (000’s)Balance, December 31, 20244,042,901 $7.5 6.7$7,335 Granted2,500 9.7 Exercised(706,096)7.1 Forfeited(106,994)32.2 Balance, September 30, 20253,232,311 $6.8 6.0$73,611 Vested and exercisable, September 30, 20252,484,181 $4.3 5.1$62,755 The weighted-average grant-date fair value of options granted was approximately $9.7 for the nine months ended September 30, 2025. The aggregate intrinsic value of options exercised was approximately $16.0 million and $3.2 million for the nine months ended September 30, 2025 and 2024, respectively. The total grant date fair value of share options vested for the nine months ended September 30, 2025 and 2024, was $5.0 million and $28.4 million, respectively.The assumptions used to estimate the fair value of share options granted for the nine months ended September 30, 2025 were as follows: Expected volatility105.4 %Expected term (in years)5.6Risk free interest4.1 %Dividend yield0.0 %As of September 30, 2025, unrecognized compensation expense related to unvested share options was approximately $7.6 million, which is expected to be recognized over a remaining weighted-average period of 1.2 years. Restricted Stock Units (RSUs)—RSUs for new employees generally vest over two years of the employment commencement date with 50%