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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us by ER Holdings are not sufficient to permit us to make payments under the Tax Receivable Agreement. For the sake of illustration, assuming all outstanding Class B Units are exchanged for shares of Class A Common Stock, the estimated tax benefits to us subject to the Tax Receivable Agreement would be approximately $ and the related undiscounted payment to the TRA Beneficiaries equal to 85% of the benefit would be approximately $ , assuming (i) exchanges occurred on the same day, (ii) a share price of $ per share of Class A common stock, (iii) no material changes in relevant tax law, (iv) a constant Table of Contents combined effective income tax rate of % and (v) that we have sufficient taxable income in each year to use on a current basis the increased depreciation, amortization and other tax benefits that are the subject of the Tax Receivable Agreement.

Our organizational structure, including the Tax Receivable
Agreement, confers certain benefits upon the TRA Beneficiaries that will not benefit certain holders of our Class A common stock to the same extent that they will benefit the TRA Beneficiaries.

Our organizational structure, including the Tax Receivable Agreement, confers certain benefits upon the TRA Beneficiaries that
will not benefit certain holders of our Class A common stock to the same extent that they will benefit the TRA Beneficiaries. Additionally, we are a holding company and have no material assets other than our ownership equity interests in ER
Holdings. As a consequence, our ability to declare and pay dividends to the holders of our Class A common stock is subject to ER Holdings providing distributions to us and the restrictions in our other organizational documents. If ER Holdings makes
such distributions, the holders of Class B Units generally will be entitled to receive equivalent distributions from ER Holdings on a pro rata basis. However, because we must pay taxes, make payments under the Tax Receivable Agreement, and pay
our expenses, any amounts ultimately paid as dividends to holders of our Class A common stock are expected to be less on a per share basis than the amounts distributed by ER Holdings to holders of Class B Units on a per unit basis. This feature and
other aspects of our organizational structure may adversely impact the future trading market for our Class A common stock.

a result of the Tax Receivable Agreement, interests of the Continuing Equity Unitholders may conflict with those of other holders of our Class A common stock including connection with certain potential future transactions.

As discussed above, our organizational “UP-C” structure, including the Tax
Receivable Agreement, confers certain benefits upon certain of the Continuing Equity Unitholders that will not benefit the holders of our Class A common stock. Certain of the Continuing Equity Unitholders may receive payments from us under the Tax
Receivable Agreement upon any redemption or exchange of their ER Holdings units, including in connection with a voluntary termination of the Tax Receivable Agreement or following a change of control transaction. Furthermore, so long as the Tax
Receivable Agreement is outstanding and in effect, any distributions we receive from Opco must first be used by us to meet our obligations under the Tax Receivable Agreement and to pay our taxes and other legal compliance obligations. As a result,
the interests of such Continuing Equity Unitholders may conflict with the interests of holders of our Class A common stock. For example, in connection with a change of control transaction, certain valuation assumptions in the Tax Receivable
Agreement would apply, potentially increasing the amount of, or accelerating the timing of, payments that otherwise would be made to the TRA Beneficiaries pursuant to the Tax Receivable Agreement. The prospect of receiving enhanced Tax Receivable
Agreement payments could impact the Continuing Equity Unitholders’ support for a change of control transaction and/or their view of the appropriateness of the consideration received for our Class A common stock, even though such
transactions might involve risks or may not prove beneficial to holders of our Class A common stock. Similarly, the cost associated with such enhanced payments may influence a prospective buyer’s valuation of our shares. In addition, the
structuring of future transactions may take into consideration tax or other considerations of such Continuing Equity Unitholders even in situations where no similar considerations are relevant to us or beneficial to our public stockholders. See
“Certain Relationships and Related Party Transactions—Tax Receivable Agreement” for a discussion of the Tax Receivable Agreement and the related likely benefits to be realized by us and certain Continuing Equity Unitholders.

The application of certain valuation assumptions under the Tax Receivable Agreement in the case of certain changes of control
or other events may impair our ability to consummate change of control transactions or negatively impact the value received by owners of our Class A common stock.

In the event of certain changes of control, certain material breaches of the Tax Receivable Agreement by us, or an insolvency
event, the calculation of certain future payments made under the Tax Receivable Agreement

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will use certain valuation assumptions, including that (i) in the case of a change of control, any exchangeable Class B Units of ER Holdings (other than those held by us) outstanding on
the date the change of control becomes effective are deemed to be exchanged for an amount equal to the market value of the corresponding number of shares of common stock on the date the change of control becomes effective and (ii) we will have
sufficient taxable income to fully use (A) the tax attributes covered by the Tax Receivable Agreement and (B) any remaining net operating losses subject to the Tax Receivable Agreement on a straight line basis over the shorter of the
statutory expiration period for such net operating losses or the 15-year period after the change of control or other relevant event. Such payments may significantly exceed the actual benefits we realize in respect of the tax attributes subject to
the Tax Receivable Agreement. We expect that the payments that we may make under the Tax Receivable Agreement following a change of control will be substantial and may be in excess of 85% of our actual cash tax benefits. As a result, the assumptions
adopted under the Tax Receivable Agreement in the case of a change of control may impair our ability to consummate change of control transactions or negatively impact the value received by owners of our Class A common stock in a change of
control transaction.

In certain cases, payments under the Tax Receivable Agreement to the TRA Beneficiaries may be accelerated or
significantly exceed any actual benefits we realize in respect of the tax attributes subject to the Tax Receivable Agreement.

Under the Tax Receivable Agreement, if we exercise our right to terminate the Tax Receivable Agreement early, or we breach any
of our material obligations under the Tax Receivable Agreement, our obligations under the Tax Receivable Agreement to make payments would be accelerated and based on certain assumptions, including an assumption that we would have sufficient taxable
income to fully use all potential future tax benefits that are subject to the Tax Receivable Agreement. See “Certain Relationships and Related Party Transactions—Tax Receivable Agreement.”

As a result, the amount we are required to pay under the Tax Receivable Agreement may significantly exceed 85% of the actual
cash tax benefits that we realize in respect of the tax attributes subject to the Tax Receivable Agreement or that are prior to the actual realization, if any, of such future tax benefits.

In certain circumstances, ER Holdings will be required to make distributions to us and the Continuing Equity Unitholders, and the
distributions that ER Holdings will be required to make may be substantial.

ER Holdings is expected to continue to
be treated as a partnership for U.S. federal income tax purposes and, as such, generally is not subject to U.S. federal income tax under existing law. Instead, taxable income will be allocated to its members, including us.