EX-99.2 3 ex992-unauditedfinancialst.htm EX-99.2 Document

PAGAYA TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022
(In thousands)
March 31,December 31,
20232022
Assets(Unaudited)(Audited)
Current assets:
Cash and cash equivalents$289,387 $309,793 
Restricted cash22,542 22,539 
Fees and other receivables (including related party receivables of $49,295 and $49,427 of March 31, 2023 and December 31, 2022, respectively)
58,469 59,219 
Investments in loans and securities3,274 1,007 
Prepaid expenses and other current assets (including related party assets of $16,369 and $18,783 as of March 31, 2023 and December 31, 2022, respectively)
25,550 27,258 
Total current assets399,222 419,816 
Restricted cash4,833 4,744 
Fees and other receivables (including related party receivables of $39,169 and $38,332 as of March 31, 2023 and December 31, 2022, respectively)
39,869 38,774 
Investments in loans and securities503,892 462,969 
Equity method and other investments26,881 25,894 
Right-of-use asset59,170 61,077 
Property and equipment, net34,126 31,663 
Goodwill9,782 — 
Intangible assets4,471 — 
Prepaid expenses and other assets114 142 
Total non-current assets683,138 625,263 
Total Assets$1,082,360 $1,045,079 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable$2,738 $1,739 
Accrued expenses and other liabilities (including related party liabilities of $692 and $636 as of March 31, 2023 and December 31, 2022, respectively)
27,513 49,496 
Operating lease liability - current7,988 8,530 
Secured borrowing - current45,807 61,829 
Income taxes payable - current11,675 6,424 
Total current liabilities95,721 128,018 
Non-current liabilities:
Warrant liability1,210 1,400 
Revolving credit facility95,000 15,000 
Secured borrowing - non-current118,430 77,802 
Operating lease liability - non-current46,399 49,097 
Income taxes payable - non-current8,637 7,771 
Deferred tax liabilities, net - non-current523 568 
Total non-current liabilities270,199 151,638 
Total liabilities365,920 279,656 
Shareholders’ equity (deficit):
Additional paid-in capital1,004,346 968,432 
Accumulated other comprehensive income (loss)(1,259)(713)
Accumulated deficit(475,170)(414,199)
Total Pagaya Technologies Ltd. shareholders’ equity527,917 553,520 
Noncontrolling interests188,523 211,903 
Total shareholders’ equity716,440 765,423 
Total Liabilities and Shareholders’ Equity$1,082,360 $1,045,079 

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PAGAYA TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS
FOR THREE MONTHS ENDED MARCH 31, 2023 AND 2022
(In thousands, except share and per share data)
Three Months Ended March 31,
20232022
Revenue(Unreviewed)
Revenue from fees (including related party revenues of $153,793 and $158,324 for the three months ended March 31, 2023 and 2022, respectively)
$175,254 $158,325 
Other Income
Interest income10,397 12,209 
Investment income (loss) (1)987 — 
Total Revenue and Other Income186,638 170,534 
Costs and Operating Expenses
Production costs125,057 92,280 
Research and development 21,131 23,626 
Sales and marketing14,300 13,046 
General and administrative51,126 51,594 
Total Costs and Operating Expenses211,614 180,546 
Operating Income (Loss)(24,976)(10,012)
Other income (loss), net(66,980)313 
Income (Loss) Before Income Taxes(91,956)(9,699)
Income tax expense (benefit)6,667 (186)
Net Loss Including Noncontrolling Interests(98,623)(9,513)
Less: Net income (loss) attributable to noncontrolling interests(37,652)8,759 
Net Loss Attributable to Pagaya Technologies Ltd.$(60,971)$(18,272)
Per share data:
Net loss attributable to Pagaya Technologies Ltd.$(60,971)$(18,272)
Less: Undistributed earnings allocated to participated securities— (5,984)
Net loss attributed to Pagaya Technologies Ltd.$(60,971)$(24,256)
Net loss per share attributable to Pagaya Technologies Ltd.:
Basic and Diluted (2)$(0.09)$(0.12)
Weighted average shares outstanding:
Basic and Diluted (2)711,070,368 204,605,121 
(1) Includes income from proprietary investments.
(2) Prior period amounts have been retroactively adjusted to reflect the 1:186.9 stock split effected on June 22, 2022.


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PAGAYA TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
FOR THREE MONTHS ENDED MARCH 31, 2023 AND 2022
(In thousands)

Three Months Ended March 31,
20232022
(Unreviewed)
Net Income (Loss) Including Noncontrolling Interests$(98,623)$(9,513)
Other Comprehensive Income (Loss):
Unrealized gain (loss) on securities available for sale, net15,792 — 
Comprehensive Income (Loss) Including Noncontrolling Interests(82,831)(9,513)
Less: Comprehensive income (loss) attributable to noncontrolling interests(21,314)— 
Comprehensive Income (Loss) Attributable to Pagaya Technologies Ltd.$(61,517)$(9,513)

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PAGAYA TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT)
FOR THREE MONTHS ENDED MARCH 31, 2023 AND 2022
(In thousands, except share amounts)

Redeemable Convertible Preferred SharesOrdinary Shares
Additional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings (Accumulated Deficit)Total Pagaya Technologies Ltd. Shareholders’ Equity (Deficit)Non-Controlling InterestsTotal Shareholders’ Equity
Shares(1)AmountShares(1)Amount
Balance – December 31, 2021406,399,029 $307,047 194,345,791 $— $113,170 $— $(111,878)$1,292 $176,060 $177,352 
Issuance of ordinary shares upon exercise of share options7,082,231 208 208 208 
Share-based compensation16,635 16,635 16,635 
Contributions of interests in consolidated VIEs— 8,547 8,547 
Return of capital to interests in consolidated VIEs— (29,658)(29,658)
Net income (loss)(18,272)(18,272)8,759 (9,513)
Balance – March, 2022 (Unreviewed)406,399,029 $307,047 201,428,023 $— $130,013 $— $(130,150)$(137)$163,708 $163,571 

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Redeemable Convertible Preferred SharesOrdinary Shares
(Class A and Class B)
Additional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings (Accumulated Deficit)Total Pagaya Technologies Ltd. Shareholders’ Equity (Deficit)Non-Controlling InterestsTotal Shareholders’ Equity
Shares(1)AmountShares(1)Amount
Balance – December 31, 2022— $— 683,311,591 $— $968,432 $(713)$(414,199)$553,520 $211,903 $765,423 
Issuance of ordinary shares upon exercise of warrants195,655 — — 
Issuance of ordinary shares upon exercise of share options2,059,317 484 484 484 
Issuance of ordinary shares upon vesting of RSUs324,948 — — 
Share-based compensation17,296 17,296 17,296 
Issuance of ordinary shares in connection with the acquisition of Darwin Homes, Inc. 18,181,746 18,134 18,134 18,134 
Contributions of interests in consolidated VIEs— 10,128 10,128 
Return of capital to interests in consolidated VIEs— (12,194)(12,194)
Other comprehensive income (loss)(546)(546)16,338 15,792 
Net income (loss)(60,971)(60,971)(37,652)(98,623)
Balance – March 31, 2023— $— 704,073,257 $— $1,004,346 $(1,259)$(475,170)$527,917 $188,523 $716,440 

(1) Prior period amounts have been retroactively adjusted to reflect the 1:186.9 stock split effected on June 22, 2022.


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PAGAYA TECHNOLOGIES LTD.
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
FOR THREE MONTHS ENDED March 31, 2023 AND 2022
(In thousands)
Three Months Ended March 31,
20232022
Cash flows from operating activities(Unreviewed)
Net loss including noncontrolling interests$(98,623)$(9,513)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Equity method income (loss)(987)— 
Depreciation and amortization3,516 477 
Share-based compensation16,367 16,635 
Fair value adjustment to warrant liability(190)469 
Write-off of capitalized software1,549 — 
Impairment loss on available-for-sale debt securities68,347 — 
Change in operating assets and liabilities:
Fees and other receivables(345)(1,220)
Deferred tax assets, net— (3,513)
Deferred tax liabilities, net(45)— 
Prepaid expenses and other assets3,528 43 
Right-of-use asset2,197 1,852 
Accounts payable999 (6,709)
Accrued expenses and other liabilities(22,573)(1,350)
Operating lease liability(3,530)(2,473)
Income tax payable6,117 2,479 
Net cash used in operating activities(23,673)(2,823)
Cash flows from investing activities
Proceeds from the sale/maturity/prepayment of:
Investments in loans and securities25,985 27,313 
Short-term deposits— 5,020 
Equity method and other investments— — 
Cash and restricted cash acquired from Darwin Homes, Inc. 1,608 — 
Payments for the purchase of:
Investments in loans and securities(121,732)(73,991)
Property and equipment(5,526)(1,513)
Equity method and other investments— (747)
Net cash used in investing activities(99,665)(43,918)
Cash flows from financing activities
Proceeds from secured borrowing82,031 53,337 
Proceeds received from noncontrolling interests10,128 8,547 
Proceeds from revolving credit facility100,000 — 
Proceeds from exercise of stock options484 208 
Distributions made to noncontrolling interests(12,194)(29,658)
Distributions made to revolving credit facility(20,000)— 
Distributions made to secured borrowing(57,425)(1,860)
Payments for deferred offering costs— (1,532)
Net cash provided by financing activities103,024 29,042 
Net increase in cash, cash equivalents and restricted cash(20,314)(17,699)
Cash, cash equivalents and restricted cash, beginning of period337,076 204,575 
Cash, cash equivalents and restricted cash, end of period$316,762 $186,876 
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated statements of financial position to the amounts shown in the statements of cash flow above:
Cash and cash equivalents$289,387 $183,504 
Restricted cash - current22,542 — 
Restricted cash - non-current4,833 3,372 
Total cash, cash equivalents, and restricted cash$316,762 $186,876 

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