SEC Filing Document

Company: ERock, Inc.
Ticker: 
CIK: 2110029
Filing Type: S-1
Document Type: S-1
Date Filed: 2026-05-15
Accession Number: 0001193125-26-227199
Exchange: 
SIC Code: 3620
SIC Description: Electrical Industrial Apparatus
URL: https://www.sec.gov/Archives/edgar/data/2110029/000119312526227199/d12401ds1.htm

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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. Accounts Receivable and Allowance for Credit Losses The following is a summary of accounts receivable, net: March 31, 2026 December 31, 2025

Power system sales accounts receivable $	81,590 $	17,229

Ongoing services accounts receivable 22,141 15,368

Other accounts receivable 3,284 1,165

Allowance for credit losses — —

Total accounts receivable, net $	107,015 $	33,762

Accounts receivable carrying value approximates fair value due to its short-term nature.

5. CONTRACT ASSETS AND LIABILITIES

The following table reflects the balances in contract assets and contract liabilities:

March 31, 2026 December 31, 2025 Change

Contract assets $	10,786 $	15,964 $	(5,178	)

Contract liabilities (471,215	) (170,025	) (301,190	)

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.

For the three months ended March 31, 2026 and 2025, the Company recognized revenue of $7.2 million and
$6.8 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, work-in-progress 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.

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Enchanted Rock Holdings, LLC

Notes to Condensed Consolidated Financial Statements (Unaudited)

Inventory consisted of the following:

March 31, 2026 December 31, 2025

Natural gas generators $	7,253 $	10,017

Installation equipment 40,771 15,374

Spare parts inventory 12,677 18,290

Total inventory $	60,701 $	43,681

7. PREPAID EXPENSES

Prepaid expenses consisted of the following:

March 31, 2026 December 31, 2025

Prepaid power system sales equipment $	8,674 $	5,851

Prepaid general and administrative expenses 6,906 2,948

Total prepaid expenses $	15,580 $	8,799

8. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

Useful Lives (Years) March 31, 2026 December 31, 2025

Equipment 5 - 15 $	16,501 $	15,852

Leasehold improvements 5 - 7 2,841 2,841

Trailers 5 103 103

Furniture and fixtures 5 - 7 717 521

Computers and software 5 13,302 13,128

Construction in progress 5,791 2,381

Less accumulated depreciation (8,578	) (7,281	)

Total property and equipment, net $	30,677 $	27,545

Depreciation expense for the three months ended March 31, 2026 and 2025 was
$1.3 million and $1.1 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.

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Enchanted Rock Holdings, LLC

Notes to Condensed Consolidated Financial Statements (Unaudited)

The classification of leases in the condensed consolidated balance sheets was
as follows:

Classification March 31, 2026 December 31, 2025

Right-of-use
assets

Operating leases Right-of-use
assets, net $	24,774 $	10,832

Lease liabilities

Current

Operating leases Lease liabilities, current 3,901 3,343

Noncurrent

Operating leases Lease liabilities, noncurrent 25,915 8,019

Total lease liabilities $	29,816 $	11,362

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.

Operating lease expense for the three months ended March 31, 2026 and 2025 was $1.6 million and $1.0 million,
respectively, and is included in cost of power system sales revenues, cost of ongoing services revenues, and general and administrative expenses in the condensed consolidated statements of operations.

The following is the aggregate future lease payments for operating leases as of March 31, 2026:

Remainder of 2026 $	4,460

Thereafter 6,936

Total undiscounted lease payments 39,138

Less imputed interest (9,322	)

Lease liabilities $	29,816

For the three months ended March 31, 2026 and 2025, cash paid for operating leases was
$1.1 million and $1.0 million, respectively. For the three months ended March 31, 2026 and the year ended December 31, 2025, Right-of-use
(“ROU”) assets obtained in exchange for the lease obligations for operating leases were $15.0 million and $3.1 million, respectively.

The weighted-average remaining lease term of operating leases is approximately six years. The weighted-average discount rate
used to determine the operating lease liabilities at March 31, 2026 and December 31, 2025 was 8.66% and 6.73%, respectively.

During the three months ended March 31, 2026, the Company recorded noncash additions of $14.7 million to operating lease
right-of-use assets in exchange for operating lease liabilities of $18.7 million related to the commencement of a new operating lease for a facility in Houston, Texas. The right-of-use asset was measured net of a $4.0 million tenant improvement
allowance.

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Enchanted Rock Holdings, LLC

Notes to Condensed Consolidated Financial Statements (Unaudited)

10. PAYABLES AND ACCRUED LIABILITIES

The following is a summary of payables and accrued liabilities:

March 31, 2026 December 31, 2025

Accounts payable

Power system sales payable $	8,705 $	9,211

Ongoing services payable 12,630 4,226

General and administrative payable 3,096 2,050

Other payables 3,478 1,062

Total accounts payable $	27,909 $	16,549

Accrued liabilities and other payables

Accrued salaries $	3,338 $	6,396

Accrued operating expenses 13,472 17,067

Accrued commissions and fees 450 515

Accrued sales tax payable 1,888 929

Short term note payable 838 1,328

Total accrued liabilities and other payables $	19,986 $	26,235

11. DEBT

The Company’s debt obligation consisted of the following:

March 31, 2026 December 31, 2025

2025 Credit Agreement $	30,119 $	30,000

December 2024 Convertible Note 12,035 11,606

Additional 2024 Convertible Notes 11,827 11,405

2025 Convertible Notes 17,556 16,930

Rights offering convertible notes 75 73

Total notes payable, gross 71,612 70,014

Less: unamortized deferred debt issuance costs (779	) (863	)

Less: unamortized debt discount (7,631	) (9,123	)

Total notes payable, net 63,202 60,028

Less: current portion — (44	)

Total notes payable, net, noncurrent portion $	63,202 $	59,984

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Enchanted Rock Holdings, LLC

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents details of our outstanding debt obligations
repayment schedule as of March 31, 2026:

Remainder of 2026 $	—

(1) The Company has debt obligations that contain paid-in-kind (“PIK”) provisions. PIK interest (estimated at approximately $50 million), computed at the contractual rate specified in a debt agreement, is added to the principal balance of a
debt and recorded as interest expense over the life of the obligation. Thus, the actual payment of PIK interest may be deferred until the time of debt principal repayment.

2025 Credit Agreement

On December 22, 2025, the Company entered into a loan and security agreement (the “2025 Credit Agreement”),
which provides for a senior secured term loan in the initial principal amount of $30.0 million (the “2025 Term Loan”) and a senior secured revolving credit facility with commitments in the aggregate amount of $30.0 million (the
“2025 Revolver”). Borrowings under the 2025 Credit Agreement are secured by a lien on all equipment, inventory, receivables, general intangibles, and substantially all other personal property owned, including a pledge of the equity
interests in its subsidiaries.

Interest Rate and Fees