Company: UP
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049230
Chunk: 64

Company: Wheels Up Experience Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 64
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 compensation cost related to the outstanding and unvested Executive Performance Plans was $118.7 million as of September 30, 2025 and is expected to be recognized over 3.3 years. As of September 30, 2025, the carrying amount of the outstanding Executive Performance Plans, including carrying amounts related to the CFO Performance Plan and CCO Performance Plan that until receipt of stockholder approval of such plans at the 2025 Annual Meeting were classified as mezzanine equity, was classified as equity in the condensed consolidated balance sheet under Additional paid-in capital.Fair Value EstimatesWe estimated fair value to measure compensation cost of the Executive Performance Plans on the date of grant using techniques that are considered to be consistent with the objective of measuring fair value. In selecting the 

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appropriate technique, management considered, among other factors, the nature of the instrument, the market risks that it embodies, and the expected means of settlement. Estimating fair values of the Executive Performance Plans requires the development of significant and subjective estimates that may, and are likely to, change over the duration of the instrument with related changes in internal and external factors. In addition, option-pricing models are highly volatile and sensitive to changes.The following table summarizes the significant assumptions used to estimate the fair value on the date of grant for the outstanding and unvested Executive Performance Plans granted during fiscal years 2024 and 2025:2025(1)2024(2)Expected term (in years)3.84.7Volatility105%70%Risk-free rate3.9%4.4%Expected dividend rate—%—%__________________(1)    Assumptions used in the Monte Carlo simulation related to the CFO Performance Plan, which was granted on March 31, 2025.(2)    Assumptions used in the Monte Carlo simulation related to the CCO Performance Plan, which was granted on May 20, 2024.Equity-Based Compensation ExpenseThe following table summarizes equity-based compensation expense for the three and nine months ended September 30, 2025 and 2024, respectively (in thousands):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Compensation expense for RSUs and PSUs$3,307 $1,672 $9,747 $8,004 Compensation expense for the Executive Performance Plans9,192 6,213 23,708 25,360 Total equity-based compensation expense