Company: UP
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001819516-25-000028
Chunk: 158

Company: Wheels Up Experience Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 8
Chunk 158
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, 2024, primarily attributable to a $0.6 million decrease in IT expenses due to reduced spend on software. 

44

Sales and Marketing

Sales and marketing expenses increased by $0.7 million, or 3%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily attributable to a $2.7 million increase in employee compensation and allocable costs driven by higher headcount. This increase was partially offset by the absence of a $1.6 million one-time charge associated with terminating a consultancy agreement during the three months ended March 31, 2024 and a $0.5 million reduction in other marketing related expenses.

General and Administrative

General and administrative expenses increased by $20.6 million, or 57%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily driven by a $20.2 million non-cash, pre-tax right-of-use asset impairment charge associated with vacating our former New York City corporate office space in the first quarter of 2025 (see Note 8, Leases of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 “Financial Statements” in this Quarterly Report) and an increase of $1.9 million in stock compensation attributable to the Executive Performance Plans (as defined in Note 9, Stockholder’s Equity and Equity-Based Compensation of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 “Financial Statements” in this Quarterly Report). The increases were partially offset by the absence of a $1.3 million charge to bad debt expense associated with certain aged receivables related to the aircraft management business recorded during the three months ended March 31, 2024.

Depreciation and Amortization

Depreciation and amortization expenses increased $4.8 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily driven by increased amortization of capitalized software and a one-time impairment of certain leasehold improvements and furniture and fixtures associated with vacating our former New York City corporate office space (see Note 8, Leases of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 “Financial Statements” in this Quarterly Report).

Interest Income

Interest income increased $1.1 million for