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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which included $0.5 million of expense related to the 2023 Loan and Security Agreement as it was paid off during 2024. 14. STOCK-BASED COMPENSATION Restricted Compensatory Units Restricted Compensatory Units are treated as separate profits interests within the meaning as defined in the LLC Agreement, and it is the intention of the members that distributions in respect of Restricted Compensatory Units be limited to the extent necessary so that such Restricted Compensatory Units qualify as profits interests. Restricted Compensatory Units may be designated as voting units or nonvoting units, as approved by the Board of Directors. Compensation cost is measured at grant-date fair value and recognized as compensation expense using the straight-line method over the applicable requisite period. The awards may include performance conditions (e.g. company sale, distribution achievement, or IPO) that provide for accelerated vesting. Expense related to such conditions is recognized only when the event is considered probable.

The
Company has a right to repurchase vested units, but no obligation. The repurchase price is generally at fair market value, which allows the holder to bear the risks and rewards of ownership up to the repurchase date. The
Restricted Compensatory Units are not mandatorily redeemable. Compensation expense recorded for the Restricted Compensatory Units for the years ended December 31, 2025 and 2024, was $4.6 million

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Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

and $2.7 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, January 1, 2024 10,610 $	354.76

Granted 33,803 646.38

Vested (2,270	) 421.24

Forfeited (9,898	) 500.37

Unvested, December 31, 2024 32,245 $	611.09

Granted 68,996 95.22

Vested (14,576	) 371.63

Forfeited (3,797	) 624.37

Unvested, December 31, 2025 82,868 $	223.09

The Restricted Compensatory Units issued to employees were valued at approximately
$6.6 million and $21.8 million for the years ended December 31, 2025 and 2024, respectively. 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 consolidated statements of operations is recognized ratably as over the requisite service period.

During the years ended December 31, 2025 and 2024, the Company granted 62,817 and 4,059 Restricted Compensatory Units,
respectively, to its Chief Executive Officer and other executive officers. These awards vest over the applicable requisite service period as defined in the individual grant notices (ranging from three to six years) and are subject to the same
service and performance conditions as other Restricted Compensatory Units. No compensation cost has been recognized for the accelerated vesting as the performance condition is not considered probable as of December 31, 2025 and 2024.

The Company utilized the Black-Scholes option-pricing model to estimate the grant-date fair value of the Restricted
Compensatory Units. Assumptions utilized in the valuation of the Restricted Compensatory Units granted in 2025 and 2024 were as follows:

Expected term (years) 1.83-3.00 3.00

Volatility 90.00-105.00	% 90.00	%

Dividend yield 0.00	% 0.00	%

Risk free interest rate 3.49-3.90	% 4.36	%

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Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

15. EARNINGS PER UNIT

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

For the Year Ended December 31,

Basic:

Net loss $	(59,030	) $	(56,926	)

Less: Deemed dividend related to Series A preferred units (3,110	) (2,880	)

Less: Settlement of Warrants (4,697	) —

Less: Undistributed earnings allocable to Series A preferred units — —

Net loss available to common unitholders—Basic (66,837	) (59,806	)

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

Basic net loss per common unit $	(309.43	) $	(276.88	)

Diluted:

Net loss available to common unitholders—Basic $	(66,837	) $	(59,806	)

Reallocation of undistributed earnings allocable to Series A preferred units — —

Net loss available to common unitholders—Diluted (66,837	) (59,806	)

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

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 $	(309.43	) $	(276.88	)

16. INCOME TAXES

The Company’s income tax expense consisted of the following components:

Year Ended December 31,

Current

Federal $	— $	—

State 420 158

Deferred

Federal — —

State — —

Total income tax expense $	420 $	158

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Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

A reconciliation of the provision for income taxes at the statutory federal
tax rate to the Company’s actual income tax expense is as follows:

Year Ended December 31,

Tax computed at the federal statutory rate $	(12,396	) $	(11,921	)

Federal non-taxable income 12,396 11,921

State taxes 420 158

Total income tax expense $	420 $	158

Effective tax rate (0.71	%) (0.28	%)

Deferred income taxes are provided to reflect future tax consequence of temporary differences
between the tax basis of assets and liabilities and their reported amounts in the financial statements. In assessing the realizability of the deferred tax assets, the Company considers whether it is more likely than not that some or all of the
deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future income in periods in which deferred tax assets can be used. The Company does not have any federal or state net
operating losses. Currently there are no deferred taxes recorded on the Company’s consolidated balance sheets.

The
Company did not have any unrecognized tax benefits recorded as of December 31, 2025 and 2024.

The Company only has
tax jurisdictions in the United States (Federal and state presence). The Company’s tax years 2023 to present remain open for Federal examination. Tax years 2022 to present remain open for examination for state purposes.

One Big Beautiful Bill Act

On July 4, 2025, the One Big Beautiful Bill Act (the “Bill”) was enacted in the U.S. The Bill 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 legislation 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 Company’s
consolidated financial statements.

17. COMMITMENTS AND CONTINGENCIES

Litigation

From time to time, the Company is subject to various litigation and other claims in the normal course of business. The Company
establishes liabilities in connection with legal actions that management deems to be probable and estimable. No amounts have been accrued in the consolidated financial statements with respect to any matters as of December 31, 2025 and 2024.

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Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

Purchase Commitments

As of December 31, 2024, the Company had a certain
take-or-pay agreement for the purchase of natural gas generators from a single vendor. Total expenditures related to natural gas generator purchases from this supplier
amounted to $0.3 million in 2025 and $32.5 million in 2024. The expenditures in 2024 to this supplier include a full satisfaction of the 2025 purchase commitments, based on the starting dates for each contract year. As the contract was set
to expire in 2025, there are no future commitments under this purchase agreement.

18. RELATED-PARTY TRANSACTIONS

On December 27, 2024, the Company entered into the 2024 Note Purchase Agreement (see Note 11 — Debt — 2024
Note Purchase Agreement) with the investor holding Series A Preferred Units (see Note 12 — Mezzanine Equity). On this same date in connection with this agreement, the Company issued the $10.0 million December 2024 Convertible Note to the
investor. Under the terms of the agreement, upon issuance of the December 2024 Convertible Note, the Company issued a warrant to the investor which can be exercised in whole or in part for up to an aggregate of 6,680 common units with an exercise
price of $0.01 per unit.

19. SUBSEQUENT EVENTS

The Company has evaluated the period after the balance sheet date through April 1, 2026, the date the consolidated financial
statements were available to be issued, noting no material subsequent events.

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Shares

Class A Common Stock

PRELIMINARY PROSPECTUS

Joint Lead Book-Running Managers

Morgan Stanley J.P. Morgan

Joint Book-Running Managers

Barclays BofA Securities

Bookrunners

Evercore ISI Guggenheim Securities Wolfe | Nomura Alliance BNP PARIBAS