Company: UP
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001819516-25-000012
Chunk: 287

Company: Wheels Up Experience Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 287
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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 consist of the following as of the dates indicated in the tables below (in thousands):December 31, 2024Level 1Level 2Level 3Fair Value Assets: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 December 31, 2023Level 1Level 2Level 3Fair Value Assets:Money market funds$94 $— $— $94 Total assets$94 $— $— $94 Liabilities:Warrant liability - Public Warrants$7 $— $— $7 Warrant liability - Private Warrants— 5 — 5 2022 Term Equipment Notes— — 256,256 256,256 Term Loan— — 297,800 297,800 Total liabilities$7 $5 $554,056 $554,068 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 were accounted for as a liability in accordance with ASC 815-40 (see Note 12). The Warrant liability was measured at fair value upon assumption and on a recurring basis, with changes in fair value presented in the consolidated statements of operations. As of December 31, 2024 and 2023, we used Level 2 inputs for the Warrants. See Note 12 for additional information about the Warrants.The estimated fair values of the Revolving Equipment Notes and 2022 Term Equipment Notes are categorized as Level 3 valuations. 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 Rev