Company: UP
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049230
Chunk: 53

Company: Wheels Up Experience Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 53
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 Liabilities:Warrant liability - Public Warrants(1)$— $13 $— $13 Warrant liability - Private Warrants(1)— 7 — 7 Revolving Equipment Notes(2)— — 296,994 296,994 Term Loan(2)— — 331,824 331,824 Total liabilities$— $20 $628,818 $628,838 December 31, 2024Level 1Level 2Level 3Fair ValueAssets:Money market funds(1)$80,812 $— $— $80,812 Total assets$80,812 $— $— $80,812 Liabilities:Warrant liability - Public Warrants(1)$— $13 $— $13 Warrant liability - Private Warrants(1)— 7 — 7 Revolving Equipment Notes(2)— — 317,484 317,484 Term Loan(2)— — 284,845 284,845 Total liabilities$— $20 $602,329 $602,349 __________________(1)Financial instrument measured on a recurring basis.(2)Financial instrument measured on a non-recurring basis.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 September 30, 2025 and December 31, 2024, we used Level 2 inputs for the Warrants. See Note 11 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 second quarter of 2025 and as required under the Revolving Equipment Notes, to determine the fair value of the Revolving Equipment Notes as of September 30, 2025. 

The estimated fair value of the Term Loan is categorized as a Level 3 valuation. The estimated fair value as of September 30, 2025 was estimated