Company: WBI
Filing Date: 2025-09-15
Form Type: S-1/A
Source: 0001193125-25-202719
Chunk: 385

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-09-15
Form: S-1/A
Chunk 385
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 (income) |     | $                       | 9,529 |     | $    | (359 | ) |

Our management and employees participate in an equity-based incentive unit plan managed by WB NDB, the indirect parent of the Company. The Incentive Units consist of time-based awards of profits interest in WB NDB. On July 1, 2024, as a result of the Division described above, Incentive Units are still recognized as a deemed non-cash contribution or distribution from member’s equity on the Company’s consolidated balance sheets. However, any new issuances or any vested portion of income or expense of existing awards is no longer allocated to historical WB NDB operating subsidiaries following the Division and is therefore attributed 100% to the Company. As discussed above, the Incentive Units that previously received liability award accounting are now accounted for as equity awards at WB NDB which is considered a modification of the awards under ASC 718. In conjunction with the modification, there was no immediate incremental expense recognized as the fair value of the modified equity awards at the modification date was less than the fair value of the liability awards remeasured immediately prior to modification. As of the modification date, the Incentive Units had $2.9 million of unrecognized share-based compensation expense that will be recognized over a weighted average remaining term of 2.0 years. The Incentive Units prior to the modification date were estimated using a Monte Carlo Simulation with the following inputs to determine the remeasurement date fair values:

|                          |     | 6/30/2024 |           |   |     | 12/31/2023 |         |   |
|:-------------------------|:----|:----------|----------:|:--|:----|:-----------|--------:|:--|
| Estimated equity value   |     | $         | 1,541,210 |   |     | $          | 811,521 |   |
| Expected life (in years) |     |           |       1.7 |   |     |            |     2.8 |   |
| Risk-free interest rate  |     |           |       4.7 | % |     |            |     4.0 | % |
| Dividend yield           |     |           |         0 | % |     |            |       0 | % |
| Volatility               |     |           |        40 | % |     |            |      42