Company: RMIX
Filing Date: 2025-11-12
Form Type: S-4
Source: 0001104659-25-110488
Chunk: 661

Company: Suncrete, Inc.
Filing Date: 2025-11-12
Form: S-4
Chunk 661
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 its primary beneficiary. This topic requires a variable interest entity to be consolidated by a company if that company has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of, or receive benefits from the VIE that could potentially be significant to the VIE. SRM Leasing, LLC and subsidiary and Schwarz Sand, LLC are considered VIEs and SRM the primary beneficiary under the requirements of Accounting Standards Codification 810, Consolidation (ASC 810). An entity with a controlling interest in a VIE is generally deemed to be its primary beneficiary. Leasing’s revenues are derived substantially from SRM through leasing arrangements. SRM and Leasing are co-borrowers on Leasing’s primary long-term debt obligations totaling $0 and $265,502 at June 30, 2025, and December 31, 2024, respectively. There is subordinated financial support of Leasing through loans from common owners totaling $0 and $1,550,000 at June 30, 2025, and December 31, 2024, respectively. Furthermore, there is an implicit agreement that SRM will provide financial support to Leasing in order for Leasing to fund debt services obligations and operations. Based on these factors SRM has determined Leasing meets the definition of a VIE and SRM is its primary beneficiary.

F-121

TABLE OF CONTENTS

SRM, INC. DBA SCHWARZ READY MIX AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Periods Ended June 30, 2025, and December 31, 2024 Note 9. Variable Interest Entities (Continued) Sand’s revenues are derived substantially from SRM through the sale of its product. SRM and Sand are co-borrowers on a $3,000,000 line-of-credit facility as of June 30, 2025, and December 31, 2024. There is subordinated financial support of Sand through loans from common owners totaling $2,600 000 and $3,000,000 as of June 30, 2025, and December 31, 2024, respectively. Furthermore, there is an implicit agreement that SRM will provide financial support to Sand in order for it to fund operations. Based on these factors, SRM has determined that Sand meets the definition of a VIE and SRM is its primary beneficiary. Although SR