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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been subject to federal income tax as a subchapter C corporation using a statutory tax rate of approximately % and based on the Company’s ownership of approximately % of ER Holdings following completion of the contemplated transactions. This rate is inclusive of U.S. federal and state income taxes. (g) Reflects the reduction in consolidated net loss attributable to non-controlling interest for ER Holdings’ historical results of operations. Upon completion of the Reorganization, the non-controlling interest will be approximately %. Table of Contents (h) On a pro forma basis, basic net loss per share and diluted net loss per share are the same as there were no antidilutive securities during the periods presented. Net loss per share on a pro forma basis is computed as follows: Year Ended December 31, 2025 (dollars in thousands) Pro forma net loss before income taxes $ Pro forma income tax expense Pro forma net loss

Pro forma net loss attributable to members’/stockholders’ equity

Net loss attributable to noncontrolling interests

Pro forma loss available to Class A common stock

Weighted average shares of Class A common stock outstanding

Pro forma net income (loss) available to Class A common stock per share

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the unitholders and the Board of Directors of Enchanted Rock Holdings, LLC:

Opinion on the Financial Statements

have audited the accompanying consolidated balance sheet of Enchanted Rock Holdings, LLC and subsidiaries (the “Company”) as of December 31, 2024, the related consolidated statements of operations, changes in mezzanine equity and
members’ equity, and cash flows for the year ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the year ended December 31, 2024, in conformity with accounting principles generally accepted in the United
States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the
Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the
United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required
to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing
an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Houston, TX

February 17,

We have served as the Company’s auditor since 2024.

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CONSOLIDATED FINANCIAL STATEMENTS

Enchanted Rock Holdings,

Consolidated Balance Sheet

As of December 31, 2024

(in thousands, except unit value amounts)

Assets

Current assets:

Cash and cash equivalents $	21,913

Accounts receivable, net 28,633

Inventory 80,487

Contract assets 9,682

Prepaid expenses 16,683

Other current assets 3,511

Total current assets 160,909

Property and equipment, net 26,781

Right-of-use
assets, net 11,670

Other assets 8,324

Total assets $	207,684

Liabilities and Equity

Current liabilities:

Accounts payable $	31,959

Accrued liabilities and other payables 16,309

Contract liabilities 33,197

Lease liabilities 2,773

Deferred income 41,332

Other current liabilities 2,961

Total current liabilities 128,531

Notes payable 70,772

Noncurrent lease liabilities 9,361

Warrant unit liabilities 13,979

Other noncurrent liabilities 1,778

Total liabilities $	224,421

Commitments and contingencies (Note 17)

Mezzanine equity:

Series A preferred units (163,975 units authorized, issued and outstanding at December 31,

Total mezzanine equity 38,883

Members’ equity:

Common units (216,002 units authorized, issued and outstanding at December 31, 2024) (55,658	)

Noncontrolling interest 38

Total members’ equity (55,620	)

Total liabilities and equity $	207,684

The accompanying notes are an integral part of these consolidated financial statements.

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Enchanted Rock Holdings, LLC

Consolidated Statement of Operations

For the Year Ended December 31, 2024

(in thousands, except unit and per unit amounts)

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 products revenues 50,748

Cost of power system sales installation revenues 29,742

Cost of power system sales revenues

Cost of ongoing services revenues

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	)

Net loss per common unit

Basic $	(276.88	)

Diluted $	(276.88	)

Weighted average common units outstanding

Basic 216,002

Diluted 216,002

(1)	Cost of revenues excludes depreciation and amortization.

The accompanying notes are an integral part of these consolidated financial statements.

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Enchanted Rock Holdings, LLC

Consolidated Statement of Changes in Mezzanine Equity and Members’ Equity

For the Year Ended December 31, 2024

(in thousands, except unit amounts)

Series A Preferred Units Common Units

Number of Units Mezzanine Equity Number of Units Members’ Equity Noncontrolling Interest Total Members’ Equity

Balance at January 1, 2024 163,975 $	36,003 216,002 $	5,973 $	38 $	6,011

Net loss — — — (56,926	) — (56,926	)

Stock-based compensation — — — 2,662 — 2,662

Deemed dividend related to Series A preferred units — 2,880 — (2,880	) — (2,880	)

Warrant units issued — — — 3,207 — 3,207

Dividends to common units ($35.62 dividend per unit) — — — (7,694	) — (7,694	)

Balance at December 31, 2024 163,975 $	38,883 216,002 $	(55,658	) $	38 $	(55,620	)

The accompanying notes are an integral part of these consolidated financial statements.

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Enchanted Rock Holdings, LLC

Consolidated Statement of Cash Flows

For the Year Ended December 31, 2024

(in thousands)

Cash flows from operating activities

Net loss $	(56,926	)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization expense 1,859

Amortization of deferred financing costs 1,719

Amortization of operating lease ROU asset 3,406

Warrant expense 1,175

Amortization of sales commissions and fees 275

Paid in kind interest expense 3,938

Stock-based compensation 2,662

Gain on disposal of assets 1

Changes in operating assets and liabilities:

Accounts receivable, net 29,915

Inventory (30,831	)

Contract assets 6,545

Prepaid expenses 5,013

Other current assets 406

Other assets (8,283	)

Accounts payable (2,913	)

Accrued liabilities and other payables 21,844

Contract liabilities (7,735	)

Operating lease liabilities (3,246	)

Other liabilities 6,966

Net cash used in operating activities (24,210	)

Cash flows from investing activities

Capital expenditures (9,000	)

Net cash used in investing activities (9,000	)

Cash flows from financing activities

Dividends paid to common unit holders (7,694	)

Proceeds from notes payable 85,000

Payments of notes payable (37,988	)

Payments of deferred financing costs (8,075	)

Net cash provided by financing activities 31,243

Net change in cash and cash equivalents (1,967	)

Cash and cash equivalents

Beginning of year 23,880

End of year $	21,913

Supplemental disclosures of cash flow information

Interest paid $	6,820

Income taxes paid $	100

Supplemental noncash financing and investing activities

Accrued capital expenditures $	114

Warrants issued with debt agreement $	10,197

The accompanying notes are an integral part of these consolidated financial statements.

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Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2024

1. NATURE OF OPERATIONS