Company: WBI
Filing Date: 2025-09-08
Form Type: S-1/A
Source: 0000950170-25-113383
Chunk: 489

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-09-08
Form: S-1/A
Chunk 489
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 are included in their tax returns even though such net taxable income or tax credits may not have actually been distributed. Accordingly, no federal tax provision has been made as of December 31, 2024 and 2023.

The Company is subject to Texas margin taxes. An estimate of state tax liability is calculated utilizing management estimates related to the deductibility of certain expenses and other factors. As of December 31, 2024 and 2023, the Company recorded $50 thousand and $0, respectively, for Texas state franchise taxes.

<div align='center'>F-117

Desert Environmental LLC and Subsidiaries

Notes to Consolidated Financial Statements</div>

The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense in the consolidated statements of operations. As of December 31, 2024 and 2023, the Company did not recognize any liabilities associated with payment for interest and penalties. Concentration of Credit Risk Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. At times, the Company maintains deposits in federally insured financial institutions in excess of federally insured limits. Management monitors the credit ratings and concentration of risk with these financial institutions on a continuing basis to safeguard cash deposits. The Company believes their exposure to the related risk is immaterial. The Company sells their services primarily to customers involved in the oil and gas exploration and production and midstream industry in west Texas and is almost entirely dependent upon the continued activity of such customers. Customers that individually comprised more than 10% of the Company’s consolidated operating revenues were as follows:

|            |     | Year EndedDecember 31, 2024 |   |     | Year EndedDecember 31, 2023 |   |
|:-----------|:----|----------------------------:|:--|:----|----------------------------:|:--|
| Customer A |     |                          26 | % |     |                          64 | % |
| Customer B |     |                          15 | % |     |                          25 | % |
| Customer C |     |                          11 | % |     |                          10 | % |
| Customer D |     |                          11 | % |     |                           - |   |
| Customer E |     |                          10 | % |     |                           - |   |

Note 3. Property, Plant and Equipment, net Property, plant and equipment, net consisted of the following at December 31, 2024