Subject: About that balance sheet
Upstart uses Variable Interest Entities (VIE) for some of its loans.
VIEs came about in reaction to Enron's creative use of off balance
sheet arrangements to hide debt and boost profits.

VIEs come in two flavors: consolidated and unconsolidated. The consolidated
VIEs are included in the balance sheet numbers. The unconsolidated VIEs are
reported in a note. Upstart has a section in its 10-K that reports on both
its consolidated and unconsolidated VIEs (in Note 3 on the 10-K).

I'm not the sharpest saw in the shed. VIEs give me a headache. I found that
ChatGPT was surprisingly quite helpful in understanding VIEs.

Bottom line: the balance sheet for Upstart is less transparent than most.

Ears <long UPST>