Company: WBI
Filing Date: 2025-08-22
Form Type: S-1
Source: 0000950170-25-111048
Chunk: 345

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-08-22
Form: S-1
Chunk 345
---
 only record the offset to the deferred tax asset in equity for the initial tax effects resulting from transactions among or with shareholders. As future changes in the deferred tax asset are not due to transactions among or with our shareholders, we intend to reflect those changes in earnings as component of income in the tax provision. Adjustments to the obligation under the Tax Receivable Agreement, which might result from, among other things, changes in expectations about the extent to which tax benefits subject to the Tax Receivable Agreement will be realized and tax rate changes, would also be recognized in earnings. This arrangement does not represent a tax based on income, but rather a contractual relationship between an entity and its shareholders and is accounted for under ASC 450—Contingencies. The effects of these adjustments are not an element of income tax expense as they do not relate to costs incurred in connection with compliance with income tax law. The Company made the following adjustments and assumptions in the preparation of the unaudited pro forma condensed combined statements of operations: (g) Reflects reduction in interest expense of $2.3 million for the six months ended June 30, 2025, and $15.2 million for the year ended December 31, 2024 associated with the pay down of the NDB Revolving Credit Facility, the WBM Revolving Credit Facility, and the Desert Environmental Term Loan. (h) Reflects estimated incremental income tax expense of $1.4 million for the six months ended June 30, 2025 and $4.2 million for the year ended December 31, 2024 associated with the Company’s results of operations assuming the Company’s earnings had been subject to federal income tax as a subchapter C Corporation using a statutory tax rate of approximately 21.5% and based on the Company’s ownership of approximately 24.0% ( % if the underwriters’ option to purchase additional Class A shares is exercised in full) of OpCo following completion of the contemplated transactions. This rate is inclusive of U.S. federal and state income taxes. (i) Reflects the reduction in condensed combined net income attributable to non-controlling interest for OpCo’s historical results of operations. Upon completion of the Corporate Reorganization, the non-controlling interest will be approximately 76% ( % if the underwriters’ option to purchase additional Class A shares is exercised in full). (j) On a pro forma basis, basic earnings per share and diluted earnings per share are the same as there were no anti-dilutive securities during