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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on an as-invoiced basis, applying the practical expedient to recognize revenue in the amount to which the entity has a right to invoice, if the entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date (e.g. usage-based fees). We also provide extended warranty services in connection with ongoing services that are identified as a separate performance obligation and are recognized ratably over the extended warranty period. Ongoing services revenue is driven by commissioned power systems and performing our obligations pursuant to O&M and asset management agreements. We expect that our ongoing services revenue to increase as we grow our installed base. • Service-Type Warranty: We sell separately priced service-type warranties that provide coverage beyond the standard manufacturer’s warranty. Revenues from these warranties are recognized ratably over the warranty period. Cost of Revenues

Total cost of revenues consists of cost of power system sales revenues, which includes cost of power system sales product
revenues and cost of power system sales installation services revenues, and cost of ongoing services revenues. The cost of ongoing services revenues can also include cost of warranty services revenues.

Cost of Power System Sales Revenues

• Cost of Power System Sales Product Revenues (Generators): Cost of power system sales product revenues
primarily reflect the direct expenditures associated with the engineering, procurement of the components and materials for, and assembly of, our power systems, including our high-efficiency reciprocating engines. These costs are generally recognized
at the point in time when control of the product is transferred to the customer. We expect that the cost of power system sales product revenues to increase as we contract for new power system projects, execute on our Contracted Power System Sales
Backlog and construct and install our power systems pursuant to ESI agreements.

• Cost of Power System Sales Installation Services Revenues: Cost of power system sales installation
services revenues reflect the construction and installation of our power systems at the customer’s site. These costs include the cost of labor to design our power systems, the cost of components and

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materials to build our power systems, the cost of labor to assemble and deliver our generators and the cost of labor and materials to construct and install our power systems. Costs related to
power system sales installation services revenues are recognized over time in a manner consistent with the recognition of the associated revenues, as project milestones are achieved or services are performed and accepted by the customer

Costs of warranties for power system sales are recognized as incurred and include labor, parts and
allocated overhead necessary to perform repair services. We do not accrue these costs and recognize the expense in the period the services are performed.

Cost of Ongoing Services Revenues

Cost of ongoing services revenues primarily consists of the expenses associated with operating, maintaining and managing our
power systems pursuant to Ongoing Services agreements. These costs span the term of each Ongoing Services agreement, beginning with the final commissioning and integration phase of installation and continuing with the operation, maintenance and
asset management of the applicable power system. These costs include the cost of labor to operate and maintain our power systems, the cost of components and materials to maintain our power systems and the cost of labor to manage electricity and
natural gas market participation of our power systems. We expect that the cost of service revenues to increase as we grow our installed base. Costs of warranties for ongoing services are recognized as incurred and include labor, parts and allocated
overhead necessary to perform repair services. We do not accrue these costs and recognize the expense in the period the services are performed.

Operating Expenses

General and Administrative
Expenses

General and administrative (“G&A”) expenses consist primarily of payroll and employee
benefits, including health insurance, 401(k) contributions, and annual incentive compensation, for corporate staff, as well as external professional fees, sales and marketing expenses and other miscellaneous expenses including utilities, rent and
insurance costs. We expect our G&A expenses to increase in future periods due to additional costs associated with operating as a public company, including increased legal and accounting expenses, as well as incremental headcount necessary to
support our continued growth.

Depreciation and Amortization Expense

We depreciate our assets on a straight-line basis over their estimated useful lives, which generally range from five to 15
years. We expect depreciation and amortization expense to increase in future periods as we continue to build out our new facility and expand our overall production capacity.

Interest Expense

Interest expense for the period primarily reflects charges incurred under our long-term debt facilities and financing
obligations. We expect these costs to decrease in future periods as a result of ongoing debt repayment initiatives. By reducing principal balances on our secured line of credit and lease obligations over time, we aim to lower our overall cost of
capital and improve net interest margins.

Other Income, Net

Other income primarily reflects financial results from activities secondary to our core power systems operations. This
primarily includes interest income earned on cash and cash equivalents held in interest-bearing money market accounts, which are maintained to support liquidity for future project deployments.

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Income Tax Expense

Determining income tax expense, deferred tax assets and liabilities, and unrecognized tax benefits requires significant
management judgment and involves estimates. Because we operate in multiple tax jurisdictions, uncertain tax positions are evaluated and recognized based on a “more likely than not” threshold and may be subject to examination by tax
authorities. Changes in tax laws, interpretations, or the outcomes of tax audits could materially affect our financial position, results of operations, and cash flows in future periods. We expect that the provision for income taxes will increase in
future periods due to the forecasted growth in revenues and net income associated with our contract backlog.

Results of Operations

The following table presents selected consolidated statements of operations data for the periods indicated. This information is
derived from, and should be read in conjunction with, our consolidated financial statements and the accompanying notes included elsewhere in this prospectus.

For the Year Ended December 31 Change

2025 2024 Amount %

(dollars in thousands)

Consolidated Statements of Operations:

Power system sales product revenues $ $	53,976 $ %

Power system sales installation services revenues 38,363

Power system sales revenues 92,339

Ongoing services revenues 36,151

Total revenues 128,490

Cost of power system sales product revenues 50,748

Cost of power system sales installation services revenues 29,742

Cost of power system sales
revenues (1) 80,490

Cost of ongoing services
revenues (1) 30,790

Total cost of revenues 111,280

General and administrative expenses 57,887

Depreciation and amortization expense 1,859

Loss from operations (42,536	)

Interest expense 14,331

Other income, net 99

Loss before income taxes (56,768	)

Income tax expense 158

Net loss (56,926	)

Deemed dividend related to Series A preferred units 2,880

Net loss attributable to common units $ $	(59,806	) $ %

Other Financial Data:

Net loss margin % (44.3	)%

Adjusted EBITDA $ $	(34,912	)

Adjusted EBITDA margin % (27.2	)%

(1)	Cost of revenue excludes depreciation and amortization

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Comparison of the years ended December 31, 2025 and 2024

Net Loss and Net Loss Margin

Net loss     by $     , or     %, for the year ended
December 31, 2025, compared to 2024. This     was primarily attributable to     . Net loss margin     by $     , or     %,
for the year ended December 31, 2025, compared to 2024. This     was primarily attributable to     .

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA     by $     , or     %, for the year
ended December 31, 2025, compared to 2024. This was primarily attributable to     . Adjusted EBITDA Margin     by $    , or     % for the year ended
December 31, 2025, compared to 2024. This     was primarily attributable to     .

For more information regarding our non-GAAP measures Adjusted EBITDA and Adjusted EBITDA Margin, and a reconciliation to their
most comparable GAAP measures, see “—Non-GAAP Financial Measures.”

Total Revenue

For the Year Ended December 31, Change

2025 2024 Amount %

(dollars in thousands)

Power system sales product revenues $ $	53,976 $ %

Power system sales installation services revenues 38,363

Power system sales revenues 92,339

Ongoing services revenues 36,151

Total revenues $ $	128,490 $ %

Total revenue for the year ended December 31, 2025, was     , a
of $    , or     %, compared to $128.5 for the year ended December 31, 2024. This      was driven by a $     in power
system sales revenues and a $     in ongoing service revenues, primarily reflecting     .

Power system sales product revenues      $     , or
%, for the year ended December 31, 2025, compared to the prior year. This      was driven by a $     in     .

Power system sales installation services revenues     $     , or
%, for the year ended December 31, 2025, compared to the prior year. This      was driven by a $     in     .