Company: UP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001819516-25-000028
Chunk: 56

Company: Wheels Up Experience Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 1
Chunk 56
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 summarizes the significant assumptions used to estimate the fair value on the date of grant for the outstanding and unvested Executive Performance Plans: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 under the Amended and Restated 2021 LTIP for the three months ended March 31, 2025 and 2024, respectively (in thousands).Three Months Ended March 31,20252024Compensation expense for RSUs and PSUs$3,134 $3,179 Compensation expense for the Executive Performance Plans9,527 8,032 Total equity-based compensation expense$12,661 $11,211 The following table summarizes equity-based compensation expense recognized by condensed consolidated statement of operations line item (in thousands):Three Months Ended March 31,20252024Cost of  revenue$78 $746 Technology and development434 283 Sales and marketing241 135 General and administrative11,908 10,047 Total equity-based compensation expense$12,661 $11,211 Earnout SharesAs part of the Business Combination, existing holders of WUP equity, including certain holders of WUP profits interests and restricted interests under the WUP Management Incentive Plan, but excluding holders of WUP stock options, have the right to receive up to 0.9 million additional shares of Common Stock (the “Earnout Shares”) that will vest, if at all, upon the achievement of separate market conditions. One-third of the Earnout Shares will meet the market conditions when the closing Common Stock price is greater than or equal to $125.00 for any 20 trading days 

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within a period of 30 consecutive trading days on or before July 13, 2026. An additional one-third will vest when the Common Stock is greater than or equal to $150.00 over the same measurement period. The final one-third will vest when the Common Stock is greater than or equal to $175.00 over