Company: UP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001819516-25-000028
Chunk: 124

Company: Wheels Up Experience Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 8
Chunk 124
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,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 $— $13 Warrant liability - Private Warrants— 7 — 7 Revolving Equipment Notes— — 317,484 317,484 Term Loan— — 284,845 284,845 Total liabilities$— $20 $602,329 $602,349 The carrying amount of Money market funds approximates fair value and is classified within Level 1, because we determined the fair value through quoted market prices. The Warrants (as defined below) were accounted for as a liability in accordance with ASC 815-40. The Warrant liability was measured at fair value upon assumption and on a recurring basis, with changes in fair value presented in the condensed consolidated statements of operations. As of each of March 31, 2025 and December 31, 2024, we used Level 2 inputs for the Warrants. See Note 10 for additional information about the Warrants.The estimated fair value of the Revolving Equipment Notes is categorized as a Level 3 valuation. We considered the appraised value of aircraft subject to first-priority liens under the Revolving Equipment Notes, as sourced during the fourth quarter of 2024 and as required under the Revolving Equipment Notes, to determine the fair value of the Revolving Equipment Notes as of March 31, 2025. The estimated fair value of the Term Loan is categorized as a Level 3 valuation. The estimated fair value as of March 31, 2025 was estimated using a discounted cash flows analysis, based on our current estimated incremental borrowing rate for a similar type of borrowing arrangement.  

19

The following table presents the changes in the fair value of the warrant liability (in thousands):Public WarrantsPrivate WarrantsTotal Warrant LiabilityFair value as of  December 31, 2024$13 $7 $20 Change in fair value of warrant liability— — — Fair value