Company: WBI
Filing Date: 2025-09-15
Form Type: S-1/A
Source: 0001193125-25-202719
Chunk: 469

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-09-15
Form: S-1/A
Chunk 469
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 Events”) for an amount equal to the greater of (i) the amount of cash that a Series B Unit Holder would have been entitled to on an as-converted basis with Class A Units following the satisfaction of senior liquidation obligations, (ii) a pre-tax cumulative IRR of 15.0%, or (iii) 1.15 multiplied by the issue price minus the aggregate amount of any distributions received. In addition to receiving cash, the Series B Preferred Units can be redeemed for a variable number of Class A Units in the Company upon the occurrence of, among other things, a Series B Liquidation Event, an Initial Public Offering, certain equity transactions with a third party, or a merger or consolidation transaction meeting specific equity valuation requirements. The occurrence of any event requiring the redemption of the Series B Preferred Units is considered outside the control of the Company. As a result, the Company presented and accounted for the Series B Preferred Units as mezzanine equity at its fair value upon issuance, net of any issuance costs, on the consolidated balance sheets pursuant to ASC 480-10-S99-3A. Furthermore, the Series B Preferred Units are not required to be remeasured at each reporting date as they are not currently redeemable and are not probable of becoming redeemable. The carrying value of the Series A Preferred Units was $95.0 million as of June 30, 2025, and December 31, 2024. Redeemable Noncontrolling Interests On December 26, 2018, WaterBridge Operating issued 100,000 Series A-1 Preferred Units (the “Operating Preferred Units”) as consideration for the acquisition of certain produced-water assets from a customer. On September 30, 2022 (the “Exchange Date”), WB Operating entered into a nonmonetary equity exchange agreement with Holdings and the customer, wherein the customer surrendered all of their Operating Preferred Units in exchange for 117,322 Series A-1 Preferred Units in Holdings (the “Holdings Preferred Units”).

<div align='center'>F-102

WaterBridge Equity Finance LLC and Subsidiaries

Notes to the Unaudited Condensed Consolidated Financial Statements</div>

The Holdings Preferred Units represented a noncontrolling interest in a subsidiary, Holdings, and such noncontrolling interests were subject to potential cash redemption that rests outside of the control of Holdings (“Redeemable Noncontrolling Interest”). The Company presented and accounted for the Redeemable Noncontrolling Interest as mezzanine equity in consideration