SEC Filing Document

Company: ERock, Inc.
Ticker: 
CIK: 2110029
Filing Type: DRS
Document Type: DRS
Date Filed: 2026-02-17
Accession Number: 0001193125-26-054926
Exchange: 
SIC Code: 3620
SIC Description: Electrical Industrial Apparatus
URL: https://www.sec.gov/Archives/edgar/data/2110029/000119312526054926/filename1.htm

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written notice to the Company, require the Company to redeem all outstanding Series A preferred units. The redemption price per unit is calculated to provide the holder with an 8% internal rate of return on the original issue price of the Series A preferred unit. Cash Flow Year ended December 31, 2025 compared to year ended December 31, 2024 The following table summarizes our cash flows by source (use) for the periods presented: Year Ended December 31, Change 2025 2024 Amount % (dollars in thousands) Net cash used in operating activities $ $ (24,210 ) $ % Net cash used in investing activities (9,000 ) Net cash provided by financing activities 31,243 Operating Activities Our operating activities consist of net loss adjusted for certain non-cash items, together with changes in operating assets and liabilities (working capital). For the year ended December 31, 2025, net cash was $ due to .

For the year
ended December 31, 2024, net cash used in operating activities was $24.2 million, primarily reflecting a net loss of $56.9 million, partially offset by non-cash items including paid-in-kind interest expense of $3.9 million, equity compensation expense related to compensatory units of $2.7 million, and other
non-cash adjustments totaling $8.4 million. Changes in working capital partially offset these amounts, providing $17.7 million of cash.

Investing Activities

Historically, our investing activities have primarily consisted of capital expenditures to support the growth and scalability
of our operations. For the years ended December 31, 2025 and 2024, net cash      investing activities was $     and $9.0 million, respectively.

For the year ended December 31, 2025, net cash      was $     due

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For the year ended December 31, 2024, we continued to make significant
investments in the development of our Granite Software Ecosystem, a proprietary platform that leverages operating data to enhance reliability and reduce costs. We remain focused on evolving the Granite Software Ecosystem to help customers optimize
system performance, lower operating costs, and accelerate project deployment timelines.

Financing Activities

For the year ended December 31, 2025, net cash      financing activities was
$     due to     .

For the year ended December 31, 2024, net cash
provided by financing activities was $31.2 million. On February 27, 2024, we entered into a five-year term credit agreement, which included a $75.0 million senior secured initial term loan and a $30.0 million delayed draw term
loan, maturing on February 27, 2029. A portion of the proceeds from the new term loan was used to repay all outstanding borrowings under our 2023 Loan and Security Agreement, totaling approximately $38.0 million.

During the year, we also issued $10.0 million of convertible promissory notes to an affiliated investor, incurred
$8.1 million in debt issuance costs, and paid distributions to common unit holders totaling $7.7 million.

Contractual Obligations and
Commitments

Our cash 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.

We 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

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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 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 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. Changes in estimates are
recognized on a cumulative catch-up basis in the period in which the revisions are made.

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.

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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 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