Company: UP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001819516-25-000028
Chunk: 44

Company: Wheels Up Experience Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 1
Chunk 44
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 and $0.5 million were recorded in Interest expense in the condensed consolidated statement of operations for the three months ended March 31, 2025 and 2024, respectively.

7.FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, an exit price, in an orderly transaction between unaffiliated willing market participants on the measurement date under current market conditions. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available and activity in the markets used to measure fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.Level 1 -Quoted prices, unadjusted, in active markets for identical assets or liabilities that can be accessed at the measurement date.Level 2 -Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.Level 3 -Unobservable inputs developed using our own estimates and assumptions, which reflect those that market participants would use in pricing the asset or liability.

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Financial instruments that are measured at fair value on a recurring basis and their corresponding placement in the fair value hierarchy consisted of the following (in thousands):March 31, 2025Level 1Level 2Level 3Fair Value Assets:Money market funds$70,501 $— $— 70,501 Total assets$70,501 $— $— $70,501 Liabilities:Warrant liability - Public Warrants$— $13 $— $13 Warrant liability - Private Warrants— 7 — 7 Revolving Equipment Notes— — 316,576 316,576 Term loan— — 292,195 292,195 Total liabilities$— $20 $608,771 $608,791 December 31, 2024Level 1Level 2Level 3Fair ValueAssets:Money market funds$80,812 $— $— $80,812 Total assets$80,812 $— $— $80,812 Liabilities:Warrant liability - Public Warrants$— $13 $— $13 Warrant liability - Private Warrants— 7 — 7 Revolving