Company: WBI
Filing Date: 2025-08-04
Form Type: DRS/A
Source: 0000950123-25-006924
Chunk: 353

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-08-04
Form: DRS/A
Chunk 353
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 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 | % |
| Marketability discount   |     | 18% - 19% |           |   |     | 24% - 26%  |         |   |

The Incentive Units were estimated using a Monte Carlo Simulation with the following inputs to determine the modification date fair value:

|                          |     | 7/1/2024  |         |   |
|:-------------------------|:----|:----------|--------:|:--|
|