SEC Filing Document

Company: ERock, Inc.
Ticker: 
CIK: 2110029
Filing Type: S-1
Document Type: S-1
Date Filed: 2026-05-15
Accession Number: 0001193125-26-227199
Exchange: 
SIC Code: 3620
SIC Description: Electrical Industrial Apparatus
URL: https://www.sec.gov/Archives/edgar/data/2110029/000119312526227199/d12401ds1.htm

Chunk 88 of 119
Word Count: 1477
Character Count: 9171

Document Content:

common stock in the foreseeable future. However, if we do make distributions of cash or property on our Class A common stock (other than certain pro rata distributions of our stock), such distributions generally will constitute dividends for U.S. federal income tax purposes to the extent paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). Distributions in excess of our current and accumulated earnings and profits will constitute a tax-free return of capital that will be applied against and reduce (but not below zero) the U.S. Holder’s adjusted tax basis in our Class A common stock. Any remaining excess will be treated as gain realized on the sale or other disposition of the Class A common stock and will be treated as described under “U.S. Holders—Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Class A common stock.”

Dividends we pay to a U.S. Holder that is taxable as a corporation generally will qualify for the dividends received deduction
if the requisite holding period is satisfied, subject to other limitations, including with respect to debt-financed portfolio stock and extraordinary dividends. With certain exceptions (including, but not limited to, dividends treated as investment
income for purposes of investment interest deduction limitations), and provided certain holding period requirements are met, dividends we pay to a U.S. Holder that is not taxable as a corporation may constitute “qualified dividend
income” that would be eligible for taxation at the preferential U.S. federal income tax rates applicable to long-term capital gains. If the applicable holding period requirements are not satisfied, then a U.S. Holder that is taxable as a
corporation may not be able to qualify for the dividends received deduction and would have taxable income equal to the entire dividend amount, and a U.S. Holder that is not taxable as a corporation may be subject to tax on such dividend at regular
ordinary income tax rates instead of the preferential rate that applies to qualified dividend income. U.S. Holders should consult their own tax advisors regarding the availability of the dividends-received deduction and the reduced rate applicable
to qualified dividend income in their particular circumstances.

Gain or Loss on Sale, Taxable Exchange or Other
Taxable Disposition of Class A Common Stock. Upon a sale, taxable exchange or other taxable disposition of our Class A common stock, a U.S. Holder generally will recognize capital gain or loss in an amount equal to
the difference between the amount realized upon the disposition and the U.S. Holder’s adjusted tax basis in the Class A common stock. A U.S. Holder’s adjusted tax basis in its Class A common stock generally will equal the U.S.
Holder’s acquisition cost for the Class A common stock, less any prior distributions treated as a return of capital. Any capital gain or loss generally will be long-term capital gain or loss if the U.S. Holder’s holding period for
the Class A common stock so disposed of exceeds one year. If the holding period requirements are not satisfied, any gain on a sale or taxable disposition of

Table of Contents

the Class A common stock would be short-term capital gain taxed at short-term capital gains rates (generally equal to ordinary income tax rates). Long-term capital gains recognized by U.S.
holders that are not taxable as a corporation will be eligible to be taxed at reduced rates. The deductibility of capital losses is subject to limitations.

Information Reporting and Backup Withholding. In general, information reporting requirements may apply to dividends
paid to a U.S. Holder and to the proceeds of the sale, taxable exchange or other taxable disposition of our shares of Class A common stock, unless the U.S. Holder is an exempt recipient and demonstrates such status. Backup withholding
(currently at a rate of 24%) may apply to such payments if the U.S. Holder (i) fails to provide a taxpayer identification number and an IRS Form W-9 or other certification of exempt status or (ii) has been notified by the IRS that it is subject to
backup withholding (and such notification has not been withdrawn). Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules generally will be allowed as a refund or a credit against a U.S. Holder’s
U.S. federal income tax liability provided the required information is timely furnished to the IRS.

Non-U.S.
Holders

This section applies to you if you are a “Non-U.S.
Holder.” A “Non-U.S. Holder” is a beneficial owner of shares of our Class A common stock who or that is, for U.S. federal income tax purposes, an individual, corporation, trust or estate
that is not a U.S. Holder.

Taxation of Distributions. As described in the section entitled “Dividend
Policy,” we do not anticipate declaring or paying dividends to holders of our Class A common stock in the foreseeable future. However, if we do make distributions of cash or property on our Class A common stock (other than certain
pro rata distributions of our stock), such distributions generally will constitute dividends for U.S. federal income tax purposes to the extent paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax
principles). Distributions in excess of current and accumulated earnings and profits will constitute a tax-free return of capital that will be applied against and reduce (but not below zero) the Non-U.S.
Holder’s adjusted tax basis in our Class A common stock. Any remaining excess, will be treated as gain realized on the sale or other disposition of the Class A common stock and will be treated as described under “Non-U.S. Holders—Sale, Exchange or Other Taxable Disposition of Class A common stock.”

Subject to the discussion below under “—Additional Withholding Tax on Payments Made to Foreign
Accounts,” dividends paid to a Non-U.S. Holder of our Class A common stock that are not effectively connected with the Non-U.S. Holder’s conduct of
a trade or business within the United States generally will be subject to withholding of U.S. federal income tax at a 30% rate or such lower rate as may be specified by an applicable income tax treaty, provided the
Non-U.S. Holder furnishes a duly completed and properly executed IRS Form W-8BEN or
W-8BEN-E (or other applicable documentation) certifying qualification for the lower treaty rate. These certifications must be provided to the applicable withholding
agent prior to the payment of dividends and must be updated periodically. A Non-U.S. Holder that does not timely furnish the required documentation, but is eligible for a reduced rate of withholding tax under
an income tax treaty generally may obtain a refund or credit of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. If a Non-U.S. Holder holds our Class A common stock
through a foreign partnership or a foreign intermediary, the Non-U.S. Holder (and, in certain cases, the partnership or intermediary) may be required to provide additional documentation in order to obtain the benefits of an applicable income tax
treaty. Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under an applicable income tax treaty and the manner of claiming the benefits of such treaty.

Dividends that are effectively connected with a Non-U.S. Holder’s conduct of a
trade or business within the United States (and, if required by an applicable income tax treaty, are attributable to a permanent establishment or, individual fixed base maintained by such Non-U.S. Holder
within the United States) generally are not subject to the withholding tax described above if the Non-U.S. Holder provides a properly executed IRS Form W-8ECI

Table of Contents

(or other applicable successor form) certifying that the dividends are so connected. Instead, such dividends will be subject to U.S. federal income tax on a net income basis at graduated U.S.
federal income tax rates generally applicable to United States persons. Dividends received by a Non-U.S. Holder that is a corporation for U.S. federal income tax purposes that are effectively connected
with its conduct of a trade or business within the United States may be subject to an additional branch profits tax at a 30% rate (or such lower rate as may be specified by an applicable income tax treaty).

Sale, Exchange or Other Taxable Disposition of Class A common stock. Subject to the discussion below
under “—Additional Withholding Tax on Payments Made to Foreign Accounts,” a Non-U.S. Holder generally will not be subject to U.S. federal income or withholding tax on any gain
recognized upon the sale, exchange or other taxable disposition of shares of our Class A common stock, unless:

• such gain is effectively connected with the conduct by such Non-U.S.
Holder of a trade or business within the United States (and, if required by an applicable income tax treaty, is attributable to a permanent establishment or a fixed base maintained by such Non-U.S. Holder
within the United States);