EX-99.2 3 ny20004893x15_ex99-2.htm EXHIBIT 99.2
Exhibit 99.2

PAGAYA TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF SEPTEMBER 30, 2022 AND DECEMBER 31, 2021
(In thousands)

   
September 30,
    
December 31,
  
   
2022
    
2021
  
Assets
  
(Unaudited)
    
(Audited)
  
Current assets:
            
Cash and cash equivalents
  
$
327,896
    
$
190,778
  
Restricted cash
    
34,161
      
7,000
  
Short-term deposits
    
—
      
5,020
  
Fees and other receivables (including related party receivables of $43,340 and $32,332 as of September 30, 2022 and December 31, 2021, respectively)
    
52,122
      
32,332
  
Investments in loans and securities
    
2,446
      
5,142
  
Prepaid expenses and other current assets (including related party assets of $15,500 and $1,367 as of September 30, 2022 and December 31, 2021, respectively)
    
22,512
      
6,263
  
Total current assets
    
439,137
      
246,535
  
Restricted cash
    
4,762
      
6,797
  
Fees and other receivables (including related party receivables of $30,701 and $19,208 as of September 30, 2022 and December 31, 2021, respectively)
    
31,250
      
19,208
  
Investments in loans and securities
    
442,840
      
277,582
  
Equity method and other investments
    
25,807
      
14,841
  
Right-of-use asset
    
66,366
      
—
  
Property and equipment, net
    
28,202
      
7,648
  
Deferred tax assets, net
    
8,501
      
5,681
  
Deferred offering costs
    
—
      
11,966
  
Prepaid expenses and other assets
    
2,706
      
—
  
Total non-current assets
    
610,434
      
343,723
  
Total Assets
  
$
1,049,571
    
$
590,258
  
Liabilities and Shareholders’ Equity
                
Current liabilities:
                
Accounts payable
  
$
2,483
    
$
11,580
  
Accrued expenses and other liabilities (including related party liabilities of $537 and $2,510 as of September 30, 2022 and December 31, 2021, respectively)
    
40,343
      
17,093
  
Operating lease liability - current
    
8,983
      
—
  
Secured borrowing - current
    
26,251
      
—
  
Income taxes payable - current
    
10,924
      
—
  
Total current liabilities
    
88,984
      
28,673
  
Non-current liabilities:
                
Warrant liability
    
3,080
      
27,469
  
Secured borrowing - non-current
    
87,503
      
37,905
  
Operating lease liability - non-current
    
53,501
      
—
  
Income taxes payable - non-current
    
22,773
      
11,812
  
Total non-current liabilities
    
166,857
      
77,186
  
Total liabilities
    
255,841
      
105,859
  
Redeemable convertible preferred shares
            
307,047
  
Shareholders’ equity:
                
Ordinary shares
    
—
      
—
  
Additional paid-in capital
    
947,381
      
113,170
  
Accumulated deficit
    
(380,201
)
    
(111,878
)
Total Pagaya Technologies Ltd. Shareholders’ Equity
    
567,180
      
1,292
  
Noncontrolling interests
    
226,550
      
176,060
  
Total shareholders’ Equity
    
793,730
      
177,352
  
Total Liabilities and Shareholders’ Equity
  
$
1,049,571
    
$
590,258
  

PAGAYA TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)
FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021
(In thousands, except share and per share data)

   
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
​
  
2022
    
2021
    
2022
    
2021
  
Revenue
  
​
    
​
              
Revenue from fees (including related party revenues of $171,300 and $128,149 for the three months ended September 30, 2022 and 2021, respectively, and $492,300 and $301,604 for the nine months ended September 30, 2022 and 2021, respectively)
  
$
185,614
    
$
128,149
    
$
507,241
    
$
301,604
  
Other Income
                                
Interest income
    
13,666
      
8,455
      
43,127
      
18,256
  
Investment income (loss)(1)
    
4,675
      
(14
)
    
5,670
      
(2
)
Total Revenue and Other Income
    
203,955
      
136,590
      
556,038
      
319,858
  
Costs and Operating Expenses
                                
Production costs
    
129,115
      
81,731
      
326,375
      
181,505
  
Research and development
    
38,643
      
11,932
      
127,379
      
51,344
  
Sales and marketing
    
26,579
      
9,161
      
90,229
      
37,564
  
General and administrative
    
73,790
      
18,961
      
236,863
      
53,068
  
Total Costs and Operating Expenses
    
268,127
      
121,785
      
780,846
      
323,481
  
Operating Income (Loss)
    
(64,172
)
    
14,805
      
(224,808
)
    
(3,623
)
Other income (loss), net(2)
    
3,233
      
(32,768
)
    
9,846
      
(51,539
)
Income (Loss) Before Income Taxes
    
(60,939
)
    
(17,963
)
    
(214,962
)
    
(55,162
)
Income tax expense(2)
    
6,065
      
3,624
      
25,604
      
11,417
  
Net Loss
    
(67,004
)
    
(21,587
)
    
(240,566
)
    
(66,579
)
Less: Net income attributable to noncontrolling interests
    
7,785
      
6,570
      
27,757
      
14,116
  
Net Loss Attributable to Pagaya Technologies Ltd.
  
$
(74,789
)
  
$
(28,157
)
  
$
(268,323
)
  
$
(80,695
)
Per share data:
                                
Net loss attributable to Pagaya Technologies Ltd.
  
$
(74,789
)
  
$
(28,157
)
  
$
(268,323
)
  
$
(80,695
)
Less: Undistributed earnings allocated to participated securities
    
—
      
(3,153
)
    
(12,205
)
    
(13,494
)
Less: Deemed dividend distribution
    
—
      
—
      
—
      
(23,612
)
Net loss attributed to Pagaya Technologies Ltd.
  
$
(74,789
)
  
$
(31,310
)
  
$
(280,528
)
  
$
(117,801
)
Net loss per share attributable to Pagaya Technologies Ltd.:
                                
Basic and Diluted(3)
  
$
(0.11
)
  
$
(0.16
)
  
$
(0.73
)
  
$
(0.61
)
Weighted average shares outstanding:
                                
Basic and Diluted(3)
    
679,431,901
      
196,023,981
      
381,831,895
      
194,490,947
  
(1) Includes income from proprietary investments.
(2) Amounts for the nine months ended September 30, 2022 include certain adjustments for the second quarter of 2022 relating to deferred tax assets and warrant liability, which were not originally recorded as of and for the three and six months ended June 30, 2022.
(3) Prior period amounts have been retroactively adjusted to reflect the 1:186.9 stock split effected on June 22, 2022.

PAGAYA TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT)
FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021
(In thousands, except share amounts)

                                                 
   
Redeemable Convertible Preferred Shares
    
Ordinary Shares
  
                                 
​
  
Shares(1)
  
​
  
Amount
    
Shares(1)
  
​
  
Amount
  
​
  
Additional Paid-In Capital
  
​
  
Retained Earnings (Accumulated Deficit)
  
​
  
Total Pagaya Technologies Ltd. Shareholders’ Equity (Deficit)
    
Non-Controlling Interests
    
Total Shareholders’ Equity
  
Balance – June 30, 2021
    
402,666,012
      
$
278,626
      
191,056,558
      
$
—
      
$
103,930
      
$
(73,265
)
    
$
30,665
    
$
142,911
    
$
173,576
  
Issuance of Preferred D shares upon exercise of warrants
    
1,000,616
        
6,009
                                              
—
              
—
  
Issuance of ordinary shares upon exercise of share options
                      
2,857,595
                  
92
                  
92
              
92
  
Share-based compensation
                                          
3,857
                  
3,857
              
3,857
  
Contributions of interests in consolidated VIEs
                                                              
—
      
46,182
      
46,182
  
Return of capital to interests in consolidated VIEs
                                                              
—
      
(21,089
)
    
(21,089
)
Net income (loss)
                                                    
(28,157
)
      
(28,157
)
    
6,570
      
(21,587
)
Balance – September 30, 2021
    
403,666,628
      
$
284,635
      
193,914,153
      
$
—
      
$
107,879
      
$
(101,422
)
    
$
6,457
    
$
174,574
    
$
181,031
  

   
Redeemable Convertible Preferred Shares
    
Ordinary Shares
  
                                 
​
  
Shares(1)
  
​
  
Amount
    
Shares(1)
  
​
  
Amount
  
​
  
Additional Paid-In Capital
  
​
  
Retained Earnings (Accumulated Deficit)
  
​
  
Total Pagaya Technologies Ltd. Shareholders’ Equity (Deficit)
    
Non-Controlling Interests
    
Total Shareholders’ Equity
  
Balance – December 31, 2020
    
321,805,961
      
$
105,981
      
190,397,142
      
$
—
      
$
315
      
$
2,885
      
$
3,200
    
$
84,945
    
$
88,145
  
Issuance of Series D convertible preferred shares, net of issuance costs of $11
    
45,853,065
        
36,639
                                              
—
              
—
  
Issuance of Series E convertible preferred shares, net of issuance costs of $158
    
35,006,986
        
136,006
                                              
—
              
—
  
Issuance of Preferred D shares upon exercise of warrants
    
1,000,616
        
6,009
                                              
—
              
—
  
Issuance of ordinary shares upon exercise of share options
                      
3,517,011
                  
171
                  
171
              
171
  
Share-based compensation
                                          
62,974
                  
62,974
              
62,974
  
Deemed contribution
                                          
23,612
                  
23,612
              
23,612
  
Deemed dividend distribution
                                                    
(23,612
)
      
(23,612
)
            
(23,612
)
Issuance of ordinary share warrants
                                          
20,807
                  
20,807
              
20,807
  
Contributions of interests in consolidated VIEs
                                                              
—
      
129,970
      
129,970
  
Return of capital to interests in consolidated VIEs
                                                              
—
      
(54,457
)
    
(54,457
)
Net income (loss)
                                                    
(80,695
)
      
(80,695
)
    
14,116
      
(66,579
)
Balance – September 30, 2021
    
403,666,628
      
$
284,635
      
193,914,153
      
$
—
      
$
107,879
      
$
(101,422
)
    
$
6,457
    
$
174,574
    
$
181,031
  

   
Redeemable Convertible Preferred Shares
    
Ordinary Shares
  
                                 
​
  
Shares
  
​
  
Amount
    
Shares(1)
  
​
  
Amount
  
​
  
Additional Paid-In Capital
  
​
  
Retained Earnings (Accumulated Deficit)(2)
  
​
  
Total Pagaya Technologies Ltd. Shareholders’ Equity (Deficit)
    
Non-Controlling Interests
    
Total Shareholders’ Equity
  
Balance – June 30, 2022
    
—
      
$
—
      
653,914,376
      
$
—
      
$
878,255
      
$
(305,412
)
    
$
572,843
    
$
172,193
    
$
745,036
  
Issuance of ordinary shares upon exercise of warrants
                      
21,170,017
                                      
—
              
—
  
Issuance of ordinary shares upon exercise of share options
                      
5,573,732
                  
1,034
                  
1,034
              
1,034
  
Issuance of ordinary shares upon vesting of RSUs
                      
91,655
                                      
—
              
—
  
Issuance of ordinary shares related to commitment shares
                      
46,536
                  
1,000
                  
1,000
              
1,000
  
Share-based compensation
                                          
67,092
                  
67,092
              
67,092
  
Contributions of interests in consolidated VIEs
                                                              
—
      
63,466
      
63,466
  
Return of capital to interests in consolidated VIEs
                                                              
—
      
(16,894
)
    
(16,894
)
Net income (loss)
                                                    
(74,789
)
      
(74,789
)
    
7,785
      
(67,004
)
Balance – September 30, 2022
    
—
      
$
—
      
680,796,316
      
$
—
      
$
947,381
      
$
(380,201
)
    
$
567,180
    
$
226,550
    
$
793,730
  

   
Redeemable Convertible Preferred Shares
    
Ordinary Shares
                             
 
​
  
Shares(1)
  
​
  
Amount
    
Shares(1)
  
​
Amount
​
  
Additional Paid-In Capital
  
​
  
Retained Earnings (Accumulated Deficit)
  
​
  
Total Pagaya Technologies Ltd. Shareholders’ Equity (Deficit)
    
Non-Controlling Interests
    
Total Shareholders’ Equity
  
Balance – December 31, 2021
    
406,399,029
      
$
307,047
      
194,345,792
            
$
113,170
      
$
(111,878
)
    
$
1,292
    
$
176,060
    
$
177,352
  
Issuance of ordinary shares upon exercise of warrants
                      
21,170,017
                                
—
              
—
  
Issuance of ordinary shares upon exercise of share options
                      
15,606,239
            
1,480
                  
1,480
              
1,480
  
Issuance of ordinary shares upon vesting of RSUs
                      
96,326
                                
—
              
—
  
Issuance of ordinary shares related to commitment shares
                      
46,536
            
1,000
                  
1,000
              
1,000
  
Issuance of ordinary shares in connection with the Business Combination and PIPE Investment, net of issuance costs of $57,400
    
(406,399,029
)
      
(307,047
)
    
449,531,406
            
581,359
                  
581,359
              
581,359
  
Share-based compensation
                                    
229,797
                  
229,797
              
229,797
  
Reclassification of warrants
                                    
20,575
                  
20,575
              
20,575
  
Contributions of interests in consolidated VIEs
                                                        
—
      
92,988
      
92,988
  
Return of capital to interests in consolidated VIEs
                                                        
—
      
(70,255
)
    
(70,255
)
Net income (loss)
                                              
(268,323
)
      
(268,323
)
    
27,757
      
(240,566
)
Balance – September 30, 2022
    
—
      
$
—
      
680,796,316
    
$          —
    
$
947,381
      
$
(380,201
)
    
$
567,180
    
$
226,550
    
$
793,730
  
(1) Prior period amounts have been retroactively adjusted to reflect the 1:186.9 stock split effected on June 22, 2022.
(2) Amount as of June 30, 2022 includes certain adjustments for the second quarter of 2022 relating to deferred tax assets and warrant liability, which were not originally recorded as of and for the three and six months ended June 30, 2022.

PAGAYA TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021
(In thousands)

   
Nine Months Ended
September 30,
  
​
  
2022
    
2021
  
Cash flows from operating activities
  
​
        
Net loss
  
$
(240,566
)
  
$
(66,579
)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
                
Equity method income (loss)
    
(5,670
)
    
2
  
Depreciation and amortization
    
4,077
      
489
  
Share-based compensation
    
223,007
      
62,974
  
Fair value adjustment to warrant liability
    
(9,408
)
    
51,477
  
Issuance of ordinary shares related to commitment shares
    
1,000
      
—
  
Loss from investment in loans and securities
    
10,706
      
—
  
Change in operating assets and liabilities:
                
Fees and other receivables
    
(31,832
)
    
(16,929
)
Deferred tax assets, net
    
(2,820
)
    
(2,979
)
Prepaid expenses and other assets
    
(18,530
)
    
(17,221
)
Right-of-use asset
    
2,322
      
—
  
Accounts payable
    
(9,097
)
    
4,242
  
Accrued expenses and other liabilities
    
23,250
      
8,265
  
Operating lease liability
    
(6,204
)
    
—
  
Income tax payable
    
21,885
      
14,059
  
Net cash (used in) provided by operating activities
    
(37,880
)
    
37,800
  
Cash flows from investing activities
                
Proceeds from the sale/maturity/prepayment of:
                
Investments in loans and securities
    
88,538
      
27,935
  
Short-term deposits
    
5,020
      
—
  
Equity method and other investments
    
453
      
925
  
Payments for the purchase of:
                
Investments in loans and securities
    
(261,806
)
    
(142,146
)
Property and equipment
    
(18,266
)
    
(1,517
)
Equity method and other investments
    
(5,749
)
    
(22,991
)
Short-term deposits
    
—
      
(51,446
)
Net cash used in investing activities
    
(191,810
)
    
(189,240
)
Cash flows from financing activities
                
Proceeds from sale of ordinary shares in connection with the Business Combination and PIPE Investment, net of issuance costs
    
291,872
      
—
  
Proceeds from issuance of redeemable convertible preferred shares, net
    
—
      
172,645
  
Proceeds from issuance of ordinary share warrants, net
    
—
      
20,807
  
Proceeds from secured borrowing
    
94,094
      
—
  
Proceeds received from noncontrolling interests
    
92,988
      
129,970
  
Proceeds from revolving credit facility
    
26,000
      
—
  
Proceeds from exercise of stock options
    
1,480
      
171
  
Distribution made to noncontrolling interests
    
(70,255
)
    
(54,457
)
Distribution made to revolving credit facility
    
(26,000
)
    
—
  
Distribution made to secured borrowing
    
(18,245
)
    
—
  
Payment for deferred offering costs
    
—
      
(4,278
)
Net cash provided by financing activities
    
391,934
      
264,858
  
Net increase in cash, cash equivalents and restricted cash
    
162,244
      
113,418
  
Cash, cash equivalents and restricted cash, beginning of period
    
204,575
      
5,880
  
Cash, cash equivalents and restricted cash, end of period
  
$
366,819
    
$
119,298
  
Reconciliation of cash, cash equivalents, and restricted cash within the condensed consolidated statements of financial position to the amounts shown in the statements of cash flow above:
                
Cash and cash equivalents
  
$
327,896
    
$
101,236
  
Restricted cash - current
    
34,161
      
12,000
  
Restricted cash - non-current
    
4,762
      
6,062
  
Total cash, cash equivalents, and restricted cash
  
$
366,819
    
$
119,298