Company: RMIX
Filing Date: 2025-11-12
Form Type: S-4
Source: 0001104659-25-110488
Chunk: 583

Company: Suncrete, Inc.
Filing Date: 2025-11-12
Form: S-4
Chunk 583
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The Company is party to a long-term supply agreement under which it is obligated to purchase minimum annual quantities of cement, rock, and sand at market prices through December 31, 2028. The agreement includes a true-up clause requiring the Company to either purchase any shortfall in minimum volumes in a subsequent period or settle the shortfall in cash at prevailing market rates. Accordingly, the agreement represents an unconditional purchase obligation under ASC 440. The Company entered into the supply agreement in 2024. During the Successor period from May 22, 2024 through December 31, 2024 and the Predecessor period from January 1, 2024 through July 30, 2024, the Company purchased approximately $11.5 million and $14.9 million, respectively, under the agreement.

As of December 31, 2024, the Company cannot reasonably estimate the aggregate future purchase commitment in dollar terms due to variable pricing and volume fluctuations. The Company expects to fulfill its purchase obligations in the normal course of operations.

During the Successor period from May 22, 2024 through December 31, 2024 and the Predecessor period from January 1, 2024 through July 29, 2024, the Company made purchases from three vendors that each individually represented more than 10% of total cost of goods sold in each period. As of each respective period-end date, these same vendors also individually accounted for more than 10% of total accounts payable. For the year ended December 31, 2023, purchases from two vendors individually exceeded 10% of total cost of goods sold and also represented more than 10% of total accounts payable as of that date. These vendors primarily supply cement, aggregates, and other raw materials used in the Company’s ready-mix operations. The loss of any one of these suppliers could have a material impact on operations in the short term; however, management believes alternative sources of supply are available.

#### Note 16.   Leases
In the normal course of business, the Company enters into various leases, primarily for buildings. The Company determines whether a contract contains a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized at the lease commencement date and are measured at the present value of future lease payments over the lease term, discounted using the Company’s incremental borrowing rate, unless the rate implicit in the lease is readily determinable. The ROU asset is initially measured as the lease liability adjusted