Company: UP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819516-25-000044
Chunk: 134

Company: Wheels Up Experience Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 134
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.Lease costs related to our leased corporate headquarters and other office space, including expenses for non-lease components, are allocated within the condensed consolidated statements of operations based on employee headcount. Sublease income is presented in General and administrative expenses in the condensed consolidated statements of operations, and was not material for each of the three and six months ended June 30, 2025 and 2024. As part of our continuing cost reduction initiatives, in the first quarter of 2025, we leased alternative corporate office space in New York City and vacated a larger leased corporate office space in New York City, for which we are actively seeking a sublease tenant. Vacating the former office space was identified as a triggering event for impairment testing for the impacted asset group, including the right-of-use asset and associated leasehold improvements and furniture. We estimated the fair value of the asset group using a discounted cash flow approach, which considered estimated future cash flows associated with the asset group. We recorded a non-cash impairment charge of $20.2 million during the three months ended March 31, 2025 representing the full carrying value of the 

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right of use asset for the vacated space. The impairment charge is presented in General and administrative expense in the condensed consolidated statements of operations for the six months ended June 30, 2025.Supplemental cash flow information related to operating leases were as follows (in thousands):Six Months Ended June 30,20252024Cash paid for amounts included in the measurement of operating lease liabilities:Operating cash flows paid for operating leases$9,877 $15,604 Right-of-use assets obtained in exchange for operating lease obligations$10,614 $3,017 Supplemental balance sheet information related to leases were as follows:June 30, 2025December 31, 2024Weighted-average remaining lease term (in years):Operating leases6.86.6Weighted-average discount rate:Operating leases10.5%10.1%As of June 30, 2025, maturities of lease liabilities were as follows (in thousands):Year ending December 31,Operating Leases2025 (remaining)$7,622 202613,164 202712,856 202811,259 202910,880 Thereafter27,516 Total lease payments 83,297 Less: Imputed interest(23,928)Total lease obligations$59,369 

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