Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 38

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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5, 733,470 shares of Class A Ordinary Shares were reserved for issuance under the ESPP. Compensation expense related to the ESPP was $0.2 million and $0.4 million for the three and nine months ended September 30, 2025, respectively.Share-Based Compensation ExpenseThe following table presents the components and classification of share-based compensation for the three and nine months ended September 30, 2025 and 2024 (in thousands): 

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Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Technology, data and product development$1,243 $1,011 $3,666 $6,985 Sales and marketing5,452 2,875 18,963 9,594 General and administrative6,887 8,447 22,353 29,273 Total$13,582 $12,333 $44,982 $45,852 

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.  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 and nine months ended September 30, 2025 and 2024 are as follows (in thousands):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Income (loss) before income taxes$8,063 $(85,755)$29,556 $(180,581)Income tax (benefit) expense(15,210)(11,524)(12,772)7,991 Effective tax rateNMNMNMNMNM: Not MeaningfulThe Company’s