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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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

Changes in fair value are included in Interest Expense on the consolidated statement
of operations for the year ended December 31, 2025 and in Other Income on the consolidated statements of operations for the year ended December 31, 2024.

The Company’s equity-classified warrants included in common units in the consolidated balance sheet related to the 2025
Credit Agreement (see Note 11 — Debt — 2025 Credit Agreement) measured at relative fair value on issuance date of December 22, 2025 (see Note 13 — Equity — Warrant Units) and the Company’s equity-classified warrants
included in common units in the consolidated balance sheet related to the 2024 Credit Agreement (see Note 11 — Debt — 2024 Credit Agreement) measured at relative fair value on issuance date of February 27, 2024 (see Note 13 —
Equity — Warrant Units), are as follows:

Equity Level 1 Level 2 Level 3

Common unit warrants $	— $	— $	1,009

Total $	— $	— $	1,009

Equity Level 1 Level 2 Level 3

Common unit warrants $	— $	— $	3,207

Total $	— $	— $	3,207

The estimated fair value of the equity-classified warrants was determined using the
Black-Scholes option pricing model. For this purpose, the Company assumed a risk-free interest rate of 4.70%, a probability weighted time to exit of two years, and 75.0% volatility.

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

Financial Assets and Liabilities Not Measured at Fair Value on a
Recurring Basis

Debt Instruments — The term loans and convertible notes are based on rates currently offered
for instruments with similar maturities and terms (Level 2).

The following table presents the estimated fair values and
carrying values of debt instruments (see Note 11 — Debt):

Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value

2025 Credit Agreement 28,944 $	30,000 $	— $	—

2024 Credit Agreement — — 69,424 78,835

December 2024 Convertible Note 9,132 14,758 1,348 11,045

Additional 2024 Convertible Notes 8,974 14,560 — —

2025 Convertible Notes 12,934 21,769 — —

Rights offering convertible notes 44 44 — —

Total Outstanding Debt $	60,028 $	81,131 $	70,772 $	89,880

4. REVENUE RECOGNITION

Disaggregation of Revenues

The Company disaggregates revenue from contracts with customers on the basis of the types of power system sales and ongoing
services provided for the years ended December 31, 2025 and 2024:

Power system sales product revenues $	90,138 $	53,976

Power system sales installation services revenues 47,810 38,363

Power system sales revenues 137,948 92,339

Ongoing services revenues (1) 45,197 36,151

Total revenues $	183,145 $	128,490

(1) Includes service-type warranty revenue.

Remaining Performance Obligations

The following table presents estimated revenue allocated to remaining performance obligations for contracted revenues that are
unsatisfied (or partially satisfied) as of December 31, 2025:

Thereafter 123,418

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

The amount above represents the Company’s estimate of total
revenues that are expected to be realized from the remaining portion of executed and legally enforceable contracts related to Power System Sales Installation Services and the Ongoing Services. For purposes of calculating remaining performance
obligations from Power System Sales and Ongoing Services revenues, the Company includes estimated revenues from change orders and claims to the extent they are legally enforceable and it is probable that a significant reversal in the amount of
cumulative revenue recognized will not occur. Excluded from remaining performance obligations were variable consideration from ongoing service contracts that the Company has a right to invoice (e.g., usage-based fees) in accordance with performance.
Accordingly, the table above includes only the fixed consideration component of such agreements. Additionally, the Company excludes contracts with an original expected duration of one year or less.

5. CONTRACT ASSETS AND LIABILITIES

The following table reflects the changes in contract assets and contract liabilities for the years ended December 31, 2025
and 2024:

2025 2024 Change

Contract assets $	15,964 $	9,682 $	6,282

Contract liabilities (170,025	) (33,197	) (136,828	)

Contract assets and liabilities fluctuate period to period based on various factors,
including changes in the number and size of projects in progress at period-end and variability in billing and payment terms due to milestone billings. During the year ended December 31, 2025, the Company
entered into contracts with three customers that account for $117.9 million of total contract liabilities.

During the
years ended December 31, 2025 and 2024, the Company recognized revenue of $25.0 million and $25.6 million, respectively, that was included in contract liabilities at the beginning of the year.

6. INVENTORY

Inventory
is stated at the lower of cost or net realizable value. Inventory consists of fully assembled generators and other major equipment used for Power System Sales Installation Services contracts valued using the specific identification method and spare
parts inventory for Ongoing Services contracts valued using the average cost method.

Inventory consisted of the following
as of December 31, 2025 and 2024:

Natural gas generators $	10,017 $	57,744

Installation equipment 15,374 11,393

Spare parts inventory 18,290 11,350

Total inventory $	43,681 $	80,487

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

7. PREPAID EXPENSES

Prepaid expenses consisted of the following as of December 31, 2025 and 2024:

Prepaid power system sales equipment $	5,851 $	13,845

Prepaid general and administrative expenses 2,948 2,838

Total prepaid expenses $	8,799 $	16,683

8. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following as of December 31, 2025 and 2024:

Useful Lives (Years) 2025 2024

Equipment 5 - 15 $	15,852 $	11,721

Leasehold improvements 5 - 7 2,841 1,375

Trailers 5 103 53

Furniture and fixtures 5 - 7 521 347

Computers and software 5 13,128 3,016

Construction in progress 2,381 13,569

Less accumulated depreciation (7,281	) (3,300	)

Total property and equipment, net $	27,545 $	26,781

Depreciation expense for the years ended December 31, 2025 and 2024 was
$4.0 million and $1.8 million, respectively.

9. LEASES

The Company has long-term operating leases, comprised primarily of equipment, vehicles, and real estate lease arrangements.
Operating leases have remaining lease terms of one year to seven years.

As of December 31, 2025 and 2024, the
classification of leases in the consolidated balance sheets was as follows:

Classification 2025 2024

Right-of-use
assets

Operating leases Right-of-use assets, net $	10,832 $	11,670

Lease liabilities

Current

Operating leases Lease liabilities, current 3,343 2,773

Noncurrent

Operating leases Lease liabilities, noncurrent 8,019 9,361

Total lease liabilities $	11,362 $	12,134

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

Operating lease liabilities are based on the net present value of the
remaining lease payments over the remaining lease term. In determining the lease liability and the present value of lease payments, management used the incremental borrowing rate.