Company: PGYWW
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001883085-25-000082
Chunk: 30

Company: Pagaya Technologies Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 to the ESPP was $0.1 million for the three months ended March 31, 2025. Share-Based Compensation ExpenseThe following table presents the components and classification of share-based compensation for the three months ended March 31, 2025 and 2024 (in thousands): Three Months Ended March 31,20252024Technology, data and product development$1,097 $2,905 Selling and marketing4,780 2,852 General and administrative7,295 9,718 Total$13,172 $15,475 

NOTE 13 - INCOME TAXES 

Corporate Income TaxOrdinary taxable income in Israel is subject to a corporate tax rate of 23%. However, the Company has received an approval from the Israeli Tax authorities for Preferred Technological Enterprise (“PTE”) status and received approval on November 18, 2021. The Company is eligible for PTE status which is implemented commencing 2020. Income from a PTE is subject to 12% tax rate. The Company is currently in the process of obtaining a renewal of its PTE status.Foreign Exchange Regulations in Israel Under the Foreign Exchange Regulations, the Company calculates its tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into NIS according to the exchange rate as of December 31st of each year.  

23

Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence. The Company’s effective tax rates for the three months ended March 31, 2025 and 2024 are as follows (in thousands):Three Months Ended March 31,20252024Loss before income taxes$(48)$(26,659)Income tax (benefit) expense(2,540)5,003 Effective tax rateNMNMNM: Not MeaningfulThe Company’s tax rate is affected by recurring items, such as tax rates in foreign jurisdictions and the relative amounts of income the Company earns in those jurisdictions. The change in the effective tax rate was primarily due to discrete tax expenses related to a change in uncertain tax positions in the three months ended March 31, 2025. The difference between the effective tax rate and the statuary tax rate mainly related to valuation allowance in Israel, tax expenses in the United States, and a change in uncertain tax positions. The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In making that