Company: WBI
Filing Date: 2025-09-08
Form Type: S-1/A
Source: 0000950170-25-113383
Chunk: 499

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-09-08
Form: S-1/A
Chunk 499
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. When observable market prices or inputs are not available, unobservable prices or inputs are used to estimate the fair value. The three levels of the fair value measurement hierarchy are as follows:

| Level 1 | Quoted market prices in active markets for identical assets or liabilities.                                                        |
| Level 2 | Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. |
| Level 3 | Unobservable inputs that are not corroborated by market data.                                                                      |

The Company's financial instruments consist primarily of cash and cash equivalents, accounts receivable, net of current expected credit losses and accounts payable. The carrying value of the Company's cash and cash equivalents, accounts receivable, net of expected credit losses and accounts payable approximate fair value due to their highly liquid nature or short-term maturity. The fair value of debt is the estimated amount the Company would have to pay to transfer its debt, including any premium or discount attributable to the difference between the stated interest rate and market rate of interest at the balance sheet date. Refer to Note 5. Debt for additional information. Non-recurring fair value measurements are performed for management incentive units, as disclosed in Note 6. Member's Equity, as well as, asset retirement obligations, as disclosed in Note 4. Asset Retirement Obligation. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Valuation techniques utilized to determine fair value are consistently applied. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires the application of management judgment and considers factors specific to the asset or liability. Interest Capitalization The Company capitalizes interest costs mainly during the construction period of our assets. Upon placing the underlying asset in service, these costs are depreciated over the estimated useful life of the corresponding assets for which interest costs were incurred. Allowance for Expected Credit Losses As of June 30, 2025 and December 31, 2024, the Company had $464 thousand and $140 thousand, respectively, for an allowance for expected credit losses. Income Taxes The Company is a limited liability company, and therefore has elected to be treated as a pass-through entity for federal income tax purposes. As a result, the net taxable income of the Company and any related tax credits