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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term, provide a purchase option that is reasonably certain to be exercised, have lease terms that constitute a major part of the remaining economic life of the asset, or result in the present value of lease payments equaling or exceeding substantially all of the fair value of the underlying asset. As a result, all active leases are accounted for as operating leases. Certain of the Company’s leases include one or more options to renew, with renewal terms that can extend the lease term from two to five years. The exercise of lease renewal options is typically at the Company’s discretion. Additionally, many leases contain early termination clauses; however, in active lease agreements, early termination typically requires the concurrence of both parties to the lease. The measurement of the lease term includes options to extend or renew the lease when it is reasonably certain that the Company will exercise that option.

The Company uses the rate implicit in the lease when such
rate readily determinable to determine the present value of future minimum lease payments for the Company’s operating leases. If the rate implicit in the lease contracts is not readily determinable, the Company determines the present value of
future minimum lease payments by using its incremental borrowing rate based on the information available at commencement date of the lease.

Under ASC 842, minimum lease payments are expensed on a straight-line basis over the term of the lease, including renewal
options the Company is reasonably certain to exercise. In addition, some leases may require additional contingent or variable lease payments based on factors specific to the individual agreement. Variable lease payments for which the Company is
typically responsible include payments of real estate taxes, insurance, maintenance, and other operating costs in addition to rent. These payments are expensed as incurred and recorded as variable lease costs.

The Company elected the short-term expedient and will not record ROU assets and lease liabilities onto its balance sheets for
leases with terms of 12 months or less (ASC 842-20-25-2). The Company also elected the practical expedient of not allocating
consideration between lease and non-lease components for all asset classes except for real estate leases. For real estate leases, the Company accounts for leases and
non-lease components separately.

Segments

The Company operates as one operating segment that designs, installs, and operates distributed generation power systems
designed to provide resiliency power for commercial and industrial customers located within the United States. See Note 4—Revenue Recognition, for additional information about the Company’s products and services. The Company’s
operations are managed as a unified business, with integrated processes for product development, marketing, sales, and customer support. As such, the Company reflects

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

its financial results as one reportable segment, which reflects the consolidated performance of its business activities. Management has determined that the Company’s chief operating
decision maker (“CODM”) is the Chief Executive Officer who has the ultimate responsibility for strategic decision making and resource allocation. The CODM uses consolidated net loss to allocate resources, as well as assess the
performance, primarily by monitoring actual results compared to prior periods and expected results. The primary measure of profit or loss used by the CODM to make these decisions is consolidated net loss. Significant expenses presented to the CODM
are at the consolidated level and are the same as those on the face of the consolidated statements of operations. The Company’s CODM does not use any segment assets to assess performance or decide how to allocate resources.

All of the Company’s assets are located in the United States.

Recently Issued Pronouncements

Income Taxes

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):
Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The amendments require, among other things, expanded rate reconciliation disclosures with specific categories and greater
disaggregation of income taxes paid by jurisdiction.

For public business entities, the amendments are effective for
annual periods beginning after December 15, 2024 (i.e., the Company’s fiscal year beginning January 1, 2025). The amendments are effective for interim periods within fiscal years beginning after December 15, 2025 (i.e.,
beginning with interim periods in fiscal year 2026). Early adoption is permitted. We adopted this guidance prospectively effective January 1, 2025, resulting in expanded disclosures that improve transparency into our tax positions and payments
across jurisdictions. See Note 16 — Income Taxes, for additional information.

Recently Issued Pronouncements
Not Yet Adopted

Internal-Use Software

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which
modernizes the accounting for internal-use software costs by increasing the operability of the recognition guidance considering different methods of software development. ASU
2025-06, which can be applied prospectively, retrospectively, or with a modified transition approach, will be effective for annual and interim periods within fiscal years beginning after December 15,
2027, with early adoption permitted. The Company is currently evaluating the effects that the adoption of this standard will have on its consolidated financial statements and disclosures.

Income Statement Presentation

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting
Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which increases the transparency of expense information presented in the statements
of operations through disclosures of expanded disaggregation of relevant expense captions. This guidance will be effective for annual periods beginning after December 15, 2026, and interim periods thereafter, with early adoption permitted. The
Company is currently evaluating the effects that the adoption of this standard will have on its consolidated financial statements and disclosures.

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

Financial Instruments—Credit Losses

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses
(Subtopic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments in this update provide a practical expedient for all entities when measuring expected credit losses for current accounts receivable and contract
assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. This guidance will be effective for annual periods beginning after December 15, 2025, and interim periods thereafter, with early adoption
permitted. The Company is currently evaluating the potential adoption of the practical expedient; however, it does not expect the adoption of this standard to have a material impact on its consolidated financial statements and related disclosures.

3. FAIR VALUE

The
Company’s financial instruments consist primarily of notes payable, warrants and derivative liabilities.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company records its financial assets and liabilities at fair value, in accordance with the framework for measuring fair
value in GAAP.

The Company’s warrant unit liability related to the 2024 Credit Agreement (see Note 11 — Debt
— 2024 Credit Agreement), and the warrant unit liability and derivative liability related to the December 2024 Convertible Note (see Note 11 — Debt — 2024 Note Purchase Agreement), measured at fair value on a recurring basis as of
December 31, 2025 and December 31, 2024, is as follows:

Level 1 Level 2 Level 3

Current Liabilities

Derivative liabilities $	— $	— $	10

Total $	— $	— $	10

Noncurrent Liabilities

Derivative liabilities $	— $	— $	3,363

Total $	— $	— $	3,363

Level 1 Level 2 Level 3

Current Liabilities

Derivative liabilities $	— $	— $	2,727

Total $	— $	— $	2,727

Noncurrent Liabilities

Warrant unit liabilities $	— $	— $	13,979

Derivative liabilities $	— $	— 1,492

Total $	— $	— $	15,471

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

The estimated fair value of the derivative liability included in other
noncurrent liabilities in the consolidated balance sheets was determined using the with and without method, taking the value of the December 2024 Convertible Note with the conversion option, less the value of the December 2024 Convertible Note
without the conversion option. The estimated fair value of the December 2024 Convertible Note was determined using the discounted cash flow method, assuming a discount rate of 17.25%.

Changes in Level 3 liabilities measured at fair value on a recurring basis for the year ended December 31, 2025,
were as follows:

Contingent warrant liability Warrant liability Derivative liability

Balance at January 1, 2024 $	— $	— $	—

Issuances 1,329 13,979 1,492

Changes in fair value included in earnings 1,398 — —

Balance at December 31, 2024 $	2,727 $	13,979 $	1,492

Issuances — — 9,049

Changes in fair value included in earnings (1,752	) (12,939	) (3,390	)

Extinguishment (975	) (1,040	) (3,778	)

Balance at December 31, 2025 $	— $	— $	3,373