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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issue date of the applicable 2025 Convertible Note and continues until the earlier of the note’s maturity or any event that triggers conversion or repayment prior to maturity. Amounts outstanding under the 2025 Convertible Notes will mature on December 27, 2026, with respect to 2025 Convertible Notes originally issued under the 2024 Note Purchase Agreement, or on April 29, 2027, with respect to 2025 Convertible Notes originally issued on or after the effective date of the A&R Note Purchase Agreement. As of December 31, 2025, the Company had issued $35.3 million of convertible promissory notes toward the maximum aggregate amount of $65.0 million. The Company believes it was in compliance with all financial covenants under the A&R Note Purchase Agreement and the 2025 Convertible Notes as of that date. The 2025 Convertible Notes are measured at amortized cost and have a net carrying value of $12.9 million as of December

During the year ended December 31, 2025, the Company executed a debt restructuring related to the 2024
Note Purchase Agreement and 2024 Credit Agreement. As a result of the debt restructuring, the Company recognized a loss on extinguishment of debt related to the 2024 Note Purchase Agreement of $11.8 million, inclusive of debt issuance costs write
offs of $0.2 million and net write offs of debt discounts of $10.7 million.

2023 Loan and Security Agreement

On August 4, 2023, the Company entered into a three-year term credit agreement for a revolving line of credit equal to the
lesser of (i) $40.0 million or (ii) the borrowing base as determined by the bank from time to time in accordance with the credit agreement (the “2023 Loan and Security Agreement”), with a maturity date of August 4, 2026.

On February 27, 2024, the Company paid off the outstanding $38.0 million of the note payable. During the year
ended December 31, 2024, interest expense recognized related to the 2023 Loan and Security Agreement was $1.4 million.

Deferred Financing Costs

Debt Issuance Costs

The Company paid approximately $1.5 million of debt issuance costs for the year ended December 31, 2025, of which
approximately $1.1 million was related to the 2025 Credit Agreement and $0.4 million was related to the December 2024 Convertible Notes and 2025 Convertible Notes. The Company paid approximately $5.5 million of debt issuance costs for
the year ended December 31, 2024, of which approximately $5.3 million was related to the 2024 Credit Agreement, and $0.2 million was related to the December 2024 Convertible Note. The debt issuance costs were recorded as a
contra-liability and netted against the notes payable balance in the consolidated balance sheets. Debt issuance costs related to the 2025 Credit Agreement were recorded equally as a contra-liability and as deferred financing within other assets in
the consolidated balance sheets. These costs are amortized over the terms of the respective agreements. Amortization of debt issuance costs for the years ended December 31, 2025 and 2024, was $0.7 million and $0.4 million,
respectively.

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Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

As a result of the Company fully paying down the 2024 Credit Agreement,
the Company recognized a loss on extinguishment of debt during the year ended December 31, 2025 that included $4.2 million of write offs of debt issuance costs.

As a result of the amended and restated December 2024 Convertible Note and Additional 2024 Convertible Notes, and issuance of
2025 Convertible Notes, the Company recognized a loss on extinguishment of debt during the year ended December 31, 2025 that included write offs of debt issuance costs of $0.2 million.

Debt Discount

The Company recorded a debt discount of approximately $14.7 million during the year ended December 31, 2025, of which
approximately $0.5 million was related to the 2025 Credit Agreement, 11.6 million was related to the December 2024 Convertible Notes and 2025 Convertible Notes, and $2.6 million was related to the 2024 Credit Agreement. The Company
recorded a debt discount of approximately $13.6 million during the year ended December 31, 2024, of which approximately $5.1 million was related to the 2024 Credit Agreement, and $8.5 million was related to the December 2024
Convertible Note. Of the $5.1 million debt discount related to the 2024 Credit Agreement, approximately $1.9 million was attributable to a discount paid to the lender, and approximately $3.2 million was attributable to the fair value
of the warrants issued. Of the $8.5 million debt discount related to the December 2024 Convertible Note, approximately $7.0 million was attributable to the fair value of the warrant liability, and approximately $1.5 million was
attributable to the fair value of the derivative liability. The debt discount was recorded as a contra-liability and netted against the notes payable balance in the consolidated balance sheets, and amortized over the terms of the respective
agreements. Debt discount amortization for the years ended December 31, 2025 and 2024, was $4.2 million and $0.4 million, respectively.

As a result of the Company fully paying down the 2024 Credit Agreement, the Company recognized a loss on extinguishment of
debt during the year ended December 31, 2025 that included write offs of debt discounts of $6.4 million.

As a result
of the amended and restated December 2024 Convertible Note and Additional 2024 Convertible Notes, and issuance of 2025 Convertible Notes, the Company recognized a loss on extinguishment of debt during the year ended December 31, 2025 that included
net write offs of debt discounts of $10.7 million.

Loan Commitment Asset

The Company paid $0.8 million to a lender in relation to the delayed draw term loan portion of the 2024 Credit Agreement
during the year ended December 31, 2024. These costs were recorded as a loan commitment asset and included in other assets in the consolidated balance sheets, and amortized straight-line over the term of access to the lines of credit.
Amortization of the loan commitment asset for the year ended December 31, 2025 and December 31, 2024, was $0.4 million and $0.9 million, which included $0.5 million of expense related to the 2023 Loan and Security Agreement
as it was paid off during 2024. These costs are included in interest expense in the consolidated statements of operations.

12. MEZZANINE EQUITY

Series A Preferred Units

On July 1, 2018, the principal and accrued unpaid interest of a $10.0 million convertible promissory note issued to
an investor was converted into 25,162 Series A-2 Preferred Units, with a stated value of $480 per

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Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

unit and a liquidation preference of $12.6 million. In addition, on July 1, 2018, the Company issued 19,167 Series A-1 Preferred Units with a
stated value of $600 per unit and a liquidation preference of $12.0 million. Except for the difference in original stated value and resulting liquidation preference, the Series A-1 and Series A-2 Preferred Units have identical voting, dividend, and redemption rights.

December 31, 2025 and 2024, the Company had issued and outstanding 163,975 Series A Preferred Units, consisting of 19,167 Series A-1 Preferred Units and 144,808 Series
A-2 Preferred Units, reflective of the retroactive adjustment for the stock split effective April 29, 2025. The Series A Preferred Units were originally issued on July 1, 2018 (the “Original
Issue Date”).

The following table summarizes the Company’s Series A Preferred Units authorized, issued, and
outstanding as of December 31, 2025 and 2024:

Series Units Authorized Units Issued and Outstanding Issuance Price per Unit Redemption Value (in thousands) (1)

December 31, 2024

Series A-1 19,167 19,167 600.00 $	18,965

Series A-2 144,808 144,808 83.41 19,918

Total 163,975 163,975 $	38,883

December 31, 2025

Series A-1 19,167 19,167 600.00 $	20,483

Series A-2 144,808 144,808 83.41 21,511

Total 163,975 163,975 $	41,994

(1) The Series A Preferred Units are classified as mezzanine equity because they
are redeemable at the option of the holders. Non-cash preferred dividends are recorded to increase the carrying value of the preferred units to their redemption amount at each reporting date.

During 2025, in connection with issuing a new $15.3 million convertible note, the Company canceled a lender’s
existing warrants in exchange for an increased percentage interest in the Company’s residual distributions. This exchange was executed through a modification of the lender’s existing Series A-2
Preferred Units, which maintained their original senior liquidation preference. As a result of this modification, the Company allocated an additional $4.7 million in investment value to the Series A-2
Preferred Units to reflect these enhanced residual distribution rights.

Classification and Measurement

The Series A Preferred Units contain redemption features that are not solely within the control of the Company. Specifically,
the holders of a majority of the Series A Preferred Units (the “Preferred Member Majority”) may demand redemption of the units at any time on or after the fifth anniversary of the Original Issue Date. Accordingly, these units are
classified as mezzanine equity in the consolidated balance sheets.