Company: WBI
Filing Date: 2025-09-08
Form Type: S-1/A
Source: 0000950170-25-113383
Chunk: 504

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-09-08
Form: S-1/A
Chunk 504
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39 |     |                  1.00 |
| Granted                          |     |               - |   |     |                  |     - |     |                       |
| Forfeited                        |     |               - |   |     |                  |     - |     |                       |
| Outstanding at June 30, 2025     |     |           4,122 |   |     | $                | 56.39 |     |                  0.51 |

The Incentive Units represent a substantive class of equity and are accounted for under FASB ASC 718, Compensation - Stock Compensation. U.S. GAAP requires recognition of compensation expense for such awards with performance conditions, such as return thresholds, once achievement of the condition is considered probable. The compensation expense recognized is based on the fair value of the rewards on the grant date. The compensation expense for the Incentive Units for the periods ended June 30, 2025 and 2024 was $50 thousand and $38 thousand, respectively. As of June 30, 2025 and December 31, 2024, remaining unrecognized compensation expense for the Incentive Units was $39 thousand and $78 thousand, respectively, and will be recognized over remaining term as the Incentive Units vest. There were no units forfeited during the six months ended June 30, 2025. The Company uses the Black-Scholes option valuation model to value units granted to employees that uses the assumptions noted in the following table. The same inputs were used for the units granted in both the 2024 and 2023 periods. Expected volatility is based on historical volatility of the Company's market and other factors. The expected term of awards granted represents the period of time that awards are expected to be outstanding. The risk-free rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. In addition, management considers the distribution priority schedule or "waterfall calculation" in its estimation process.

| Expected volatility      |     | 22.50 | % |
| Expected dividends       |     |  0.00 | % |
| Expected term (in years) |     |     3 |   |
| Risk-free rate           |     |  4.95 | % |
| Marketability discount   |     |  9.00 | % |

Note 7. Related Party Transactions Transactions between the Company and related parties are summarized as follows (in