SEC Filing Document

Company: ERock, Inc.
Ticker: 
CIK: 2110029
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2026-04-24
Accession Number: 0001193125-26-177695
Exchange: 
SIC Code: 3620
SIC Description: Electrical Industrial Apparatus
URL: https://www.sec.gov/Archives/edgar/data/2110029/000119312526177695/filename1.htm

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Rock Holdings, LLC Notes to Consolidated Financial Statements December 31, 2025 and 2024 Contract Costs The Company capitalizes incremental costs of obtaining a contract, such as sales commissions, if the Company expects to recover those costs. For the year ended December 31, 2025 and 2024, there was zero and $0.2 million, respectively, contract costs incurred that are recorded as deferred contract costs within other assets in the consolidated balance sheets and are amortized on a straight-line basis over the expected period of benefit, which is generally the contract term. The Company applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. Other Revenue Policies Sales Taxes: Amounts collected on behalf of their parties (such as sales and similar taxes) are excluded from revenue.

Shipping and Handling: The Company’s shipping and handling activities, which primarily relate to the
delivery of generators under Power System Sales Product and the transport of equipment for Power System Sales Installation Services, are treated as fulfillment activities rather than separate performance obligations. Shipping and handling costs are
included in cost of revenues and are recognized as incurred.

Depreciation and Amortization: All references to cost
of revenues throughout the consolidated financial statements and the notes to the consolidated financial statements are exclusive of depreciation and amortization.

Cash and Cash Equivalents

The Company considers cash on hand, cash in banks, and other highly liquid debt instruments purchased with an original maturity
of three months or less to be cash and cash equivalents.

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are recorded when invoices are issued and are presented in the consolidated balance sheets at amortized
cost, net of an allowance for credit losses. The Company routinely assesses the collectability of its accounts receivable. The Company monitors the credit quality of its counterparties through review of collections, credit ratings, and other
analyses. The Company develops its estimated allowance for credit losses primarily using an aging method and analyses of historical loss rates, as well as consideration of current and future conditions that could impact its counterparties’
credit quality and liquidity. Balances confirmed to be uncollectible are then written off against the allowance for credit losses.

The following is a summary of accounts receivable as of December 31, 2025 and 2024:

Accounts receivable, net

Power system sales accounts receivable $	17,229 $	10,462

Ongoing services accounts receivable 15,368 14,140

Other accounts receivable 1,165 4,031

Allowance for credit losses — —

Total accounts receivable, net $	33,762 $	28,633

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

Property and Equipment

Property and equipment are presented at cost, less accumulated depreciation, which is provided using the straight-line method
over the estimated useful lives of the individual assets (see Note 8 — Property and Equipment). Expenditures for major renewals and improvements are capitalized if they extend the useful life of the asset, while expenditures for
maintenance and repairs are expensed as incurred. Leasehold improvements are amortized over the shorter of their estimated useful lives or the life of the lease, plus renewal options the Company is reasonably certain to exercise. Sales and disposals
of property and equipment are removed at carrying cost, less accumulated depreciation with any resulting gain or loss reflected in earnings.

Impairment of Long-Lived Assets

The Company reviews its long-lived assets for impairment if events or changes in circumstances indicate that the carrying value
of such assets may not be recoverable, as required by ASC 360, Accounting for the Impairment or Disposal of Long-Lived Assets. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset or asset group
are compared to the asset or asset group’s carrying amount to determine if an impairment is necessary. If the carrying amount of an asset may not be recoverable, a write-down to fair value is recorded.

Fair values are determined based on the discounted cash flows or external appraisals, if applicable. Long-lived assets are
reviewed for impairment at the individual asset or the asset group level for which the lowest level of independent cash flows can be identified. No impairment of long-lived assets was recognized for the years ended December 31, 2025 and 2024.

Deferred Financing Costs

The Company defers financing costs, including debt discounts and debt issuance costs, and amortizes the costs over the terms of
the related debt using the effective interest method for term debt and straight-line method for revolving lines of credit, in accordance with ASC 470, Debt. Upon repayment of or in conjunction with a debt modification or exchange that
qualifies as an extinguishment under GAAP of the underlying debt agreement, the unamortized costs are charged to earnings as a component of interest expense.

Warrants

The Company determines the accounting classification of warrants it issues as either liability or equity classified by first
assessing whether the warrants meet liability classification in accordance with ASC 480, Distinguishing Liabilities from Equity (“ASC 480”), then in accordance with ASC 815, Derivatives and Hedging (“ASC 815”).
After all relevant assessments, the Company concludes whether the warrants are classified as liability or equity. Liability-classified warrants are recorded at fair value at issuance and are marked-to-market each reporting period with changes in fair value recognized in the consolidated statements of operations. These are included within other current liabilities and other noncurrent liabilities
in the consolidated balance sheets. Equity-classified warrants are recorded at fair value at issuance with no changes recognized subsequent to the issuance date. These are included within common units in the consolidated balance sheets.

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

Embedded Derivative Liabilities

The Company evaluates the embedded features of its financial instruments in accordance with ASC 480 and ASC 815. Certain
conversion options and redemption features are required to be bifurcated from their host instrument and accounted for as free-standing derivative financial instruments if certain criteria are met. The Company applies significant judgment to identify
and evaluate complex terms and conditions for its financial instruments to determine whether such instruments are derivatives or contain features that qualify as embedded derivatives. Embedded derivatives must be separately measured from the host
contract if all the requirements for bifurcation are met. The assessment of the conditions surrounding the bifurcation of embedded derivatives depends on the nature of the host contract and the features of the derivatives. Bifurcated embedded
derivatives are recorded at fair value at issuance and are marked-to-market each reporting period and are included within other noncurrent liabilities in the
consolidated balance sheets with changes in fair value recognized in the consolidated statements of operations.

Noncontrolling
Interest

The Company controls and holds an approximately 75% ownership in Enchanted Rock Reliability Services, LLC. As
such, the Company records a noncontrolling interest in the consolidated balance sheets to reflect the remaining noncontrolling interest’s share of the net assets of the subsidiary. For the years ended December 31, 2025 and 2024, Enchanted
Rock Reliability Services, LLC did not have activity related to the Company’s ongoing service profit-sharing arrangements.

Net
Loss Per Unit

The Company computes net loss per unit using the two-class
method required for participating securities. The Company considers its Series A Preferred Units to be participating securities because the holders have a nonforfeitable right to participate in distributions with common unitholders on a pro-rata basis in excess of their preferred return.

Under the two-class method, basic net loss per common unit is computed by dividing the net loss available to common unitholders by the weighted-average number of common units outstanding during the period. Net loss available
to common unitholders is determined by adjusting the Company’s net loss for deemed dividends related to the accretion of Series A Preferred Units to their redemption value, as well as the value transferred to Series A preferred unitholders
upon the settlement of warrants. Net loss is allocated between common units and the participating Series A Preferred Units based on their participating rights. The Company does not allocate losses to participating securities unless the securities
have a contractual obligation to share in the losses. Because the Series A Preferred Units do not have a contractual obligation to share in the Company’s losses, no portion of the net loss was allocated to them for the years ended
December 31, 2025 and 2024.

Diluted net loss per unit reflects the potential dilution that could occur if securities
or other contracts to issue common units were exercised or converted into common units. For the years ended December 31, 2025 and 2024, the effect of all potentially dilutive securities was anti-dilutive due to the Company’s net loss
position. Accordingly, diluted net loss per unit is the same as basic net loss per unit for the years ended December 31, 2025 and 2024.

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024