Company: PGYWW
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001883085-25-000082
Chunk: 19

Company: Pagaya Technologies Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 its involvement with unconsolidated VIEs represents the estimated loss that would be incurred under severe, hypothetical circumstances, for which the Company believes the possibility is remote, such as where the value of securitization notes and senior and residual certificates the Company holds as part of the risk retention requirement declines to zero. Below is a summary of the Company’s direct interest in (i.e., not held through Risk Retention Entities) variable interests in nonconsolidated VIEs (in thousands):Carrying AmountMaximum Exposure to LossVIE AssetsAs of March 31, 2025$627,469 $627,469 $10,382,325 As of December 31, 2024$628,038 $628,038 $10,708,146 

15

From time to time, the Company may, but is not obligated to, purchase assets from the Financing Vehicles. Such repurchases  occur at the Company’s discretion. See Note 9 for additional information. 

NOTE 7 - 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 $2.9 million and $3.3 million as of March 31, 2025 and December 31, 2024, respectively, which have been recognized as restricted cash, non-current in the unaudited condensed consolidated balance sheets. The Company’s operating lease expense consists of rent and variable lease payments. Variable lease payments such as common area maintenance were included in operating expenses. Rent expense for the Company’s short-term leases was immaterial for the periods presented. Operating lease expense was as follows (in thousands):Three Months Ended March 31,20252024Rent expense$2,839$2,909Variable lease payments$135$94Sublease income (1)$1,164$1,005(1) The Company entered into sublease agreements for certain leased office space, and the amounts were included in other expense, net in the consolidated statements of income. For three months ended March 31, 2025 and 2024, the Company recognized $0 and $0.4 million of the sublease impairment loss, respectively.Supplemental information related to the Company’s operating leases was as follows ($ in thousands):March 31, 2025December 31, 2024Weighted-average remaining lease term (in years