I know there is separate WU thread but this cut/paste from the SEC filing this week is worth noting to all in the 135 space
Wheels Up Experience Inc. (the “Company” or “Wheels Up”) is unable to file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2023
(the “Form 10-Q”) by the prescribed due date.
As previously disclosed in its Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 23, 2023,
the Company is working with a number of advisors and industry participants around securing new strategic investments, raising capital, and
executing previously disclosed strategic divestitures. On August 8, 2023 the Company entered into a short-term capital infusion in the form
of a secured promissory note with Delta Air Lines, Inc. These efforts have involved significant resources and have been a priority for management,
thereby diverting significant management time and internal resources from the Company’s processes to review and complete its financial
statements and related disclosures in a manner that would permit a timely filing of the Form 10-Q. For this reason, the Company will be unable,
without unreasonable effort or expense, to complete and file the Form 10-Q within the prescribed time period.
The potential investments and/or capital raise described above are subject to market and other conditions that are not within
the Company’s control. Absent the ability of the Company to obtain this additional funding in the near-term, the Company has
concluded that there is substantial doubt about its ability to continue as a going concern for any meaningful period of time after
the filing of this Form 12b-25.
The Company is endeavoring to complete its financial close process and file its Form 10-Q on or before Monday, August 14, 2023, which is
within the five- calendar day extension provided by Rule 12b-25.
(Further in the report we have this interesting q/a found in the SEC Form 12b-25)
2. Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected
by the earnings statements to be included in the subject report or portion thereof? Yes x No ̈
(Wheels Up financial experts answered YES, the explanation is below)
During the three months ended June 30, 2023, the Company experienced a more material reduction in deferred revenue than expected,
which resulted in a substantial use of cash and cash equivalents. The Company also anticipates that it will have a material non-cash
goodwill impairment.
_______
Definition of terms in the last sentence
“A non-cash asset impairment charge is an accounting entry that reflects a reduction in the value of an asset due to a
decrease in its expected future cash flows or fair value”
That sounds ominous and is meant to be I suspect
Source: https://www.bgtrading.com.au/resourc...20fair%20value.
First let me say I’m totally empathetic to the 3000+ employees, all current pilots of WU, DPJ, Mountain Air and other operators
absorbed by WU. I saw a slow death at XO with Vista so I’ve had a small taste of that but it is never easy to see your
company discussed in forums in this manner and suffer with bad management decisions
If I I’ve offended anyone with my tone or words, my apologies.
Some of the professionals on here have greater insight to how a demise and dissolving of WU would affect us
all who operate in the 135 space.
id be interested to hear those thoughts. I simply ask for respectful comments as our friends at WU are still living in an uncertain
world at WU and that is never easy.
1. Topics for discussion are what this could mean for our fellow pilots, impact on overall job market.
2. Airplane liquidations in a larger than normal annual amount, opportunities or pitfalls?
3. Job openings/ideas for WU professionals who maybe thinking of leaving, websites are fine but specific names, contact info would be helpful and save the reader
time
4. Other impact no one is thinking of, I.e. impact on low time pilots entering job market with experienced pilots through possible furloughs, reductions, etc
looking for jobs
thanks for reading and posting