Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 23

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 Structured Holding III LLC (“Risk Retention Entities”). As sponsor of securitization transactions, the Company is subject to risk retention requirements and established the Risk Retention Entities to meet these requirements. Below is a summary of assets and liabilities from the Company’s involvement with consolidated VIEs (i.e., Risk Retention Entities) (in thousands): 

17

 AssetsLiabilitiesNet AssetsAs of June 30, 2025$125,923 $— $125,923 As of December 31, 2024$142,584 $— $142,584 Unconsolidated VIEs The Company determined that it is not the primary beneficiary of the trusts which hold the loans and issue securities associated with the securitization transactions the Company sponsors. The Company does not have the power to direct or control the activities which most significantly affect the performance of the trusts, which was determined to be servicing loans. The Company’s maximum exposure to loss from 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 June 30, 2025$742,749 $742,749 $11,412,967 As of December 31, 2024$628,038 $628,038 $10,708,146 

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, subject to contractual requirements and limitations. 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 $3.1 million and $3.3 million as of June 30, 2025 and December 31, 2024, respectively, which have been recognized as restricted cash, non-current in the unaudited condensed consolidated balance