SEC Filing Document

Company: ERock, Inc.
Ticker: 
CIK: 2110029
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2026-04-01
Accession Number: 0001193125-26-138217
Exchange: 
SIC Code: 3620
SIC Description: Electrical Industrial Apparatus
URL: https://www.sec.gov/Archives/edgar/data/2110029/000119312526138217/filename1.htm

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requirements within the next twelve months include accounts payable and accrued liabilities, other current liabilities, and other obligations. We expect the cash required to meet these obligations to be primarily generated through a combination of cash from operations and our borrowing capacity under our 2025 Credit Agreement. Our long-term cash requirements under our various contractual obligations and commitments include: • Debt Obligations and Interest Payments—See Note 11—Debt, to our consolidated financial statements included in this prospectus for further detail of our debt and the timing of expected future principal and interest payments. • Operating Leases—See Note 9—Leases, in the Notes to our consolidated financial statements included in this prospectus for further detail of our obligations and the timing of expected future payments. believe the following sources will be sufficient to meet our anticipated cash requirements for at least the next twelve months while maintaining sufficient liquidity for normal operating purposes:

• our cash flows from operations; and

• availability of additional capital under our 2025 Credit Agreement.

Critical Accounting Estimates

Our financial statements, included elsewhere in this prospectus, are prepared in accordance with generally accepted accounting
principles (“GAAP”). The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. These estimates
are based on historical experience, current facts, and other assumptions that management considers reasonable under the circumstances. We regularly evaluate these estimates and assumptions, but actual results may differ materially from our
estimates. Any such differences could impact our future financial statement presentation, financial condition, results of operations, and cash flows.

Our significant accounting policies are described in Note 2—Summary of Significant Accounting Policies, to our
consolidated financial statements included in this prospectus. The discussion below focuses on our most critical accounting estimates that materially affect our consolidated financial statements and require management to make difficult, subjective,
or complex judgments. We believe that understanding these critical accounting estimates is essential to fully appreciating our consolidated financial condition and results of operations.

Revenue Recognition

We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts
with Customers, which requires revenue to be recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We generate
revenue primarily from the design, installation, and operation of distributed generation power systems that provide resiliency power for commercial and industrial customers in the United States.

Significant judgment is required in identifying and evaluating performance obligations, estimating standalone selling prices,
and determining the timing of revenue recognition. Many of our customer contracts

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include multiple performance obligations. In such cases, we account for each performance obligation separately if it is distinct. The transaction price is allocated to separate performance
obligations based on their relative standalone selling prices (“SSP”). Because determining SSP requires judgment, we generally estimate the SSP for our installation services using an expected cost plus a margin approach. When ongoing
maintenance services are included in a contract, their SSP is also estimated using this same approach.

The Company
provides installation services to prepare, construct, and install distributed generation power systems designed to provide resiliency power for commercial and industrial customers. These service contracts can occur over several months or a multiyear
period. The revenues through service contracts are generated under fixed-price contracts with certain reimbursable variable revenues and costs. The Company recognizes revenues over time because the Company’s performance creates or enhances an
asset that the customer controls as the asset is created or enhanced. The Company measures progress using the cost-to-cost method (percentage of costs incurred to total
estimated costs), as this best depicts the transfer of value to the customer.

Due to the nature of fixed-price
installation services contracts, costs can vary from estimates due to factors such as scope changes, unforeseen conditions, or material cost fluctuations that will directly impact revenue recognized each period. In preparing estimates, we draw on
our extensive experience with installing distributed generation power systems. We use this experience in conjunction with the project specifications as well as our database of historical information from similar projects to ensure that our estimates
are as accurate as possible, given current circumstances. We establish an estimated margin at contract inception and apply that margin to actual costs as they are incurred. We continuously monitor estimated costs at completion relative to the
original margin assumptions and recognize the impact of any increases or decreases in estimated margin in the period such changes are identified. When a change in estimate occurs, we record a cumulative
catch-up adjustment to reflect the effect on costs incurred to date. The revised estimated margin is then applied prospectively to costs incurred thereafter.

Changes in judgments or estimates could materially affect the timing and amount of revenue recognized, which may, in turn,
impact our reported financial results.

Additional Information

For information on our accounting policies and on accounting pronouncements that have impacted or may materially impact our
financial condition, results of operations, or cash flows, see Note 2—Summary of Significant Accounting Policies, to our consolidated financial statements included in this prospectus.

Recent Accounting Pronouncements

For a discussion of our recently adopted accounting pronouncements, as well as recently issued accounting standards not yet
adopted, see Note 2—Summary of Significant Accounting Policies, to our consolidated financial statements included elsewhere in this prospectus.

Quantitative and Qualitative Disclosures About Market Risk

In the normal course of business, we are exposed to various risks, including changes in interest rates. The following
information summarizes our financial instruments as of December 31, 2025, which may result in future gains or losses due to interest rate fluctuations.

Interest Rate Risk

We are exposed to interest rate risk on borrowings under the HSBC Term Loan and Revolving Credit Facility. The HSBC Term Loan
bears interest at a floating per annum rate equal to the greater of (A) the Prime

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Rate plus two and one quarter of one percent (2.25%) and (B) nine and one half of one percent (9.50%). The HSBC Revolving Credit Facility bears interest at a floating per annum rate equal to
the greater of (A) the Prime Rate plus one quarter of one percent (0.25%) and (B) six percent (6.0%). At December 31, 2025, the interest rate on the HSBC Term Loan was 9.50% per annum, and we had $30.0 million outstanding
thereunder. A hypothetical increase or decrease of 100 basis points in the Prime Rate on the amounts outstanding under the HSBC Term Loan as of December 31, 2025 would have an increase or decrease in annual cash interest of $0.2 million.
At December 31, 2025, the interest rate on the HSBC Revolving Credit Facility was 7.00% per annum, and we had no borrowings thereunder.

Commodity Price Risk

Volatility in the prices of raw materials and components, and our reliance on third-party suppliers, exposes us to indirect
commodity price risk and could adversely affect our profit margins. We currently rely on third-party suppliers for a significant portion of the components used in our manufacturing, instillation, and on-going
services of our power systems. We are currently seeing an industry-wide price fluctuation of key commodities used in our products, such as steel, copper and aluminum. The costs of these raw materials and parts are subject to substantial volatility
driven by shifting supply and demand, and fluctuations in currency exchange rates. Additionally, our procurement costs may be impacted by factors beyond our control, including changes in transportation expenses, government regulations, tariffs, and
broader economic conditions. Currently, we do not enter into hedging arrangements to mitigate commodity risk. Significant price changes for these raw materials and components could reduce our operating margins if we are unable to recover such
increases from our customers and could harm our business, financial condition and results of operations.

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BUSINESS

Overview

We are a
vertically integrated company that designs, deploys, operates and maintains multi-purpose distributed power systems, consisting of our proprietary, low emission, quick-response natural gas generator and embedded software technology, for our
customers. Our resilient, cost-effective, modular power systems can be rapidly deployed at a scale of more than 1 GW to meet our customers’ full range of power needs, including bridge, backup and dispatchable power applications, and are
supported by our O&M and asset management services. We deploy our systems in three applications: bridge (prime-to-backup), backup (resiliency) and dispatchable (flexible capacity) power.

• Bridge power
(prime-to-backup) . Our power systems deliver prime power in the near-term to accelerate time-to-power ahead of long-lead grid upgrades, which prevent our customers
from getting grid power. Once interconnection becomes available, the same assets typically transition to backup or flexible dispatch power service to support the customer or utility.

• Backup power (resiliency) . Our power systems provide highly reliable continuity for mission-critical
operations during grid disruptions and extreme weather events, and many of our existing deployments operate in this mode today.