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

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discount was recorded as a contra-liability and netted against the notes payable balance in the condensed consolidated balance sheets, and amortized over the terms of the respective agreements. Debt discount amortization was $1.5 million and $0.4 million for the three months ended March 31, 2026 and the three months ended March 31, 2025, respectively. Table of Contents Enchanted Rock Holdings, LLC Notes to Condensed Consolidated Financial Statements (Unaudited) 12. MEZZANINE EQUITY Series A Preferred Units At March 31, 2026 and December 31, 2025, the Company had issued and outstanding 163,975 Series A Preferred Units, consisting of 19,167 Series A-1 Preferred Units and 144,808 Series A-2 Preferred Units, reflective of the retroactive adjustment for the stock split effective April 29, 2025. The Series A Preferred Units were originally issued on July 1, 2018 (the “Original Issue Date”). The following table summarizes the Company’s Series A Preferred Units authorized, issued, and outstanding:

Series Units Authorized Units Issued and Outstanding Issuance Price per Unit Redemption Value (in thousands) (1)

December 31, 2025

Series A-1 19,167 19,167 600.00 $	20,483

Series A-2 144,808 144,808 83.41 21,511

Total 163,975 163,975 $	41,994

March 31, 2026

Series A-1 19,167 19,167 600.00 $	20,880

Series A-2 144,808 144,808 83.41 21,929

Total 163,975 163,975 $	42,809

(1) The Series A Preferred Units are classified as mezzanine equity because they are redeemable at the option
of the holders. Non-cash preferred dividends are recorded to increase the carrying value of the preferred units to their redemption amount at each reporting date.

During 2025, in connection with the issuance of a new $15.3 million convertible note, the Company canceled a
lender’s existing warrants in exchange for an increased percentage interest in the Company’s residual distributions. This exchange was executed through a modification of the lender’s existing Series
A-2 Preferred Units, which maintained their original senior liquidation preference. As a result of this modification, the Company allocated an additional $4.7 million in investment value to the Series A-2 Preferred Units to reflect these enhanced residual distribution rights.

Classification and
Measurement

The Series A Preferred Units are classified as mezzanine equity and are recorded at their maximum
redemption value at each reporting date, with changes recognized as deemed preferred dividends.

For the three months ended
March 31, 2026 and 2025, the Company recorded deemed preferred dividends of $0.8 million and $0.8 million to adjust the carrying value of the Series A Preferred Units to their full redemption value.

Redemption Rights

The rights and preferences of the Series A Preferred Units, including distribution waterfall, conversion, anti-dilution, and
redemption mechanics, are described in the Company’s consolidated financial statements for the year ended December 31, 2025. There have been no changes to these terms for the three months ended March 31, 2026.

At March 31, 2026, the fifth anniversary of the Original Issue Date has passed. Consequently, the Series A Preferred Units
are currently redeemable at the option of the holders.

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Condensed Consolidated Financial Statements (Unaudited)

13. EQUITY

At March 31, 2026 and December 31, 2025, the Company had common units, which include Restricted Compensatory Units.
Each such class of units may be subdivided into one or more series as determined by the Board of Directors from time to time. At March 31, 2026, the common units constitute a single class of units, undifferentiated by series.

Common Units

For the three months ended March 31, 2026 and 2025, the Company did not issue any new voting common units.

Warrant Units

Pursuant to the terms of the 2023 Loan and Security Agreement (see Note 11 — Debt), the Company issued a warrant to a
bank to purchase 431 duly authorized and validly issued common units at an exercise price per unit of $0.01. The warrant is subject to certain adjustments and may be exercised at any time until August 4, 2033. The estimated fair value of the
warrant of $0.6 million was determined using the Black-Scholes option-pricing model. For this purpose, the Company assumed a risk-free interest rate of 4.78%, a probability weighted time to exit of two years, and 80.0% volatility. The Company
recorded the estimated fair value of the warrant as equity and other assets and will amortize the expense over the term of access to the line of credit.

Pursuant to the terms of the 2024 Credit Agreement (see Note 11 — Debt), the Company issued a warrant to an investor to
purchase 6,290 duly authorized and validly issued common units at an exercise price per unit of $0.01. The warrant is subject to certain adjustments and may be exercised at any time until February 27, 2034. The estimated fair value of the
warrant of $3.2 million was recorded as equity and a debt discount contra-liability, and the debt discount will be amortized over the term of the agreement.

Pursuant to the terms of the 2025 Credit Agreement (see Note 11 — Debt), the Company issued a warrant to an investor to
purchase 2,525 duly authorized and validly issued common units at an exercise price per unit of $0.01. The warrant is subject to certain adjustments and may be exercised at any time until December 22, 2035. The estimated fair value of the
warrant of $1.0 million was recorded as equity.

Warrant expense for the three months ended March 31, 2025 was
$0.2 million.

14. STOCK-BASED COMPENSATION

Restricted Compensatory Units

Compensation expense recorded for the Restricted Compensatory Units for the three months ended March 31, 2026 and 2025 was
$1.2 million and $1.5 million, respectively. The following table summarizes information related to nonvoting Restricted Compensatory Units currently held by employees and directors for the period presented:

Period Number of Restricted Compensatory Units Weighted Average Grant Date Fair Value

Unvested, December 31, 2025 82,899 $	223.09

Vested (6,215	) 130.50

Forfeited (261	) 450.65

Unvested, March 31, 2026 76,423 $	230.02

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Condensed Consolidated Financial Statements (Unaudited)

The Restricted Compensatory Units issued to employees were valued at
approximately $0.5 million for the three months ended March 31, 2025. The Restricted Compensatory Units vest generally over time in accordance with the terms of the applicable grant agreements. Time-based awards are classified as equity
awards and compensation expense included in the condensed consolidated statements of operations is recognized ratably as over the requisite service period.

For the three months ended March 31, 2026 and March 31, 2025, the Company granted zero Restricted Compensatory Units
to its Chief Executive Officer and other executive officers. No compensation cost has been recognized for the accelerated vesting as the performance condition is not considered probable at March 31, 2026 and 2025.

15. EARNINGS PER UNIT

The following table summarizes the basic and diluted earnings per common unit calculations:

Three Months Ended March 31,

Basic:

Net loss $	(17,212	) $	(15,937	)

Less: Deemed dividend related to Series A preferred units (816	) (755	)

Net loss attributable to common units - Basic (18,028	) (16,692	)

Weighted average number of common units outstanding - Basic 216,002 216,002

Basic net loss per common unit $	(83.46	) $	(77.28	)

Diluted:

Net loss attributable to common units - Basic $	(18,028	) $	(16,692	)

Net loss attributable to common unitholders - Diluted (18,028	) (16,692	)

Weighted average number of common units outstanding - Basic 216,002 216,002

Add: Potentially dilutive securities

Series A preferred units Anti-dilutive Anti-dilutive

Warrants Anti-dilutive Anti-dilutive

Restricted compensatory units (Vested and Nonvested) Anti-dilutive Anti-dilutive

Convertible notes Anti-dilutive Anti-dilutive

Weighted average number of common units outstanding—Diluted 216,002 216,002

Diluted net loss per common unit $	(83.46	) $	(77.28	)

The following potentially dilutive securities were excluded from the diluted weighted average
unit calculation because their effect would have been anti-dilutive given the Company’s net loss position:

Three Months Ended March 31,

Series A Preferred units 166,071 199,111

Warrants 9,246 20,081

Convertible notes 27,906 123,657

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Condensed Consolidated Financial Statements (Unaudited)

16. INCOME TAXES

The effective tax rate for the three months ended March 31, 2026 and 2025 was (3.03%) and (0.71%), respectively.

One Big Beautiful Bill Act

On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was enacted in the U.S. The Act includes
significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The Act has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. These
include changes in bonus depreciation on fixed assets and changes to the deductibility of section 174 (research and development) expenses. Currently there is no significant impact on the condensed consolidated financial statements.

17. COMMITMENTS AND CONTINGENCIES

Litigation