Company: PGYWW
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001883085-25-000050
Chunk: 28

Company: Pagaya Technologies Ltd.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 16
Chunk 28
---
 business strategies, the economic environment, and market conditions. As of December 31, 2022, the Company held $13.8 million of loans held for investment, all of which were transferred to available for sale on January 1, 2023. As of December 31, 2024 and December 31, 2023, the Company did not have any loans classified as held for investment.Equity Method and Other Investments The Company uses the equity method of accounting for investments in entities that the Company does not control but has the ability to exercise significant influence over the financial and operating policies of the investee. Under the equity method of accounting, the Company’s share of the investee’s underlying net income or loss is recorded as investment income or loss on the consolidated statements of operations. Distributions received from the investment reduce the Company’s carrying value of the investee. The Company elected to account for its equity investments using the measurement alternative, which is cost, less any impairment, adjusted for changes in fair value resulting from observable transactions for identical or similar investments of the same issuer. The investments are reviewed periodically to determine if their respective values have appreciated or have been impaired, and adjustments are recorded as necessary. During the year ended December 31, 2024, 2023 and 2022, the Company recorded a loss of $4.6 million and income of $0.5 million and $5.8 million, respectively, related to revaluation of its investments in privately held companies. See Note 7 for additional information. The following investments, including those accounted for under the equity method, are included within Equity method and other investments in the consolidated balance sheets as of December 31, 2024 and December 31, 2023 (in thousands): Carrying ValueDecember 31, 2024December 31, 2023Investments in Pagaya SmartResi F1 Fund, LP (1)$12,530 $17,357 Other (2)9,403 9,026 Total$21,933 $26,383 (1) The Company owns approximately 5.4% and is the general partner of Pagaya Smartresi F1 Fund LP.(2) Represents the Company’s proprietary investments. Income from these investments is included in Investment income in the consolidated statements of operations.Property and Equipment, Net Property and equipment are stated at historical cost, less accumulated depreciation and amortization. Depreciation of property and equipment is calculated using the straight