Company: PGYWW
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001883085-25-000050
Chunk: 76

Company: Pagaya Technologies Ltd.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 16
Chunk 76
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)Subsidiaries taxed at a different tax rate17,594 16,443 (2,524)Reduction in valuation allowance— (1,162)— Other2,637 1,170 (86)Income tax$24,576 $15,571 $16,400 Effective tax rateNM*NM*NM**NM = Not meaningful. Deferred Tax Assets and Liabilities Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 31, 2024 and 2023, a valuation allowance was provided reducing the deferred tax assets due to uncertainty of realizing future tax benefits from its net operating loss carryforwards and other deferred tax assets. 

F-42

Table of Contents

As of December 31, 2024 and 2023, deferred tax liabilities presented in the balance sheet are comprised as follows (in thousands): December 31,20242023Carry forward tax losses$13,912 $14,608 Research and development cost8,930 5,777 Compensations and benefits9,748 27,507 Operating lease liability5,525 7,111 Initial public offering costs— 1,551 Investments credit loss96,324 13,425 Interest expense8,082 — Other comprehensive income2,715 — Capital loss948 948 Equity method and other investments1,062 — Other983 794 Deferred tax assets before valuation allowance148,229 71,721 Valuation allowance140,020 61,334 Deferred tax assets8,209 10,387 Intangible assets(1,838)(687)Right-of-use assets(5,401)(7,694)Equity method investments(904)(1,327)Property and equipment(246)(666)Other(9)(120)Deferred tax liabilities(8,398)(10,494)Deferred tax liabilities, net$(189)$(107)As of December 31, 2024 the Company