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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storage alone under current build-out timelines. Traditional energy solutions are currently insufficient to meet the magnitude of this demand. Existing infrastructure is under significant strain, with grid congestion and long interconnection queues posing critical barriers to new capacity. In major markets like Northern Virginia, connection timelines for new data center capacity now extend to approximately seven years. Furthermore, global supply chains for essential components, such as transformers and turbines, face multi-year backlogs and lead times ranging from 15 to 24 months. These constraints have led to intensifying reliability risks. Approximately 20% of new data center projects globally are at risk of delay due to grid limitations. Simultaneously, extreme weather events and surging peak loads from EV charging are increasing outage exposure across the U.S. grid. Given that data centers require uninterrupted, firm power with extremely low tolerance for outages, the demand for resilient, “always-on” power solutions has never been higher.

To mitigate grid constraints and ensure operational continuity, there is an increasing trend toward co-locating large loads with onsite or near-site distributed generation. We believe that strategically siting data centers in areas with available grid headroom and utilizing onsite flexible backup systems are vital
for maintaining reliability. In this context, natural gas remains a critical firm resource. We anticipate natural gas-fired generation will expand significantly to meet data center loads through 2035,
particularly in the United States, where it serves as a leading dispatchable source to support renewable integration. We are well positioned to deliver on the significant market demand for dispatchable, resilient and cost-effective power solutions
that can be quickly deployed and commissioned. Through delivering 99.999% reliability and the capability to deliver in less than six months, with full project commissioning typically achieved within 12 to 18 months from contract signing, we provide
one of the few scalable solutions capable of addressing near-term capacity needs, particularly in high-growth regions like Texas and California. As natural gas remains a critical firm resource supporting renewable integration, our modular, low-emission solutions enable hyperscale data centers, industrial facilities and utilities to procure reliable, firm power at substantial

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scale, often reaching several hundred megawatts or over a gigawatt, without the prolonged lead times inherent in traditional transmission expansion. This combination of speed, reliability and
flexibility positions us to capture significant share in an increasingly capacity-constrained U.S. power market.

How We Evaluate Our
Operations

Our management uses a variety of financial and operating metrics to evaluate and analyze the performance
of our business. These metrics help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. The key metrics we use to evaluate our business are
provided below.

Non-GAAP Financial Measures

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit and Adjusted Gross Margin are financial measures that are not
prepared in accordance with GAAP. These non-GAAP financial measures should be read in conjunction with the most directly comparable financial measure calculated and presented in accordance with GAAP.

We believe presenting these non-GAAP financial measures provides useful information to
investors because they highlight trends in our underlying operating performance, facilitate comparisons of our core results over time and across peers, and reflect how our management evaluates our business. We also use these non-GAAP financial measures internally for strategic planning, budgeting, forecasting, performance measurement, and resource allocation. We believe that providing investors with access to these measures allows for
greater transparency and facilitates comparisons to our historical operating results.

These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the most directly comparable financial measure prepared in accordance with GAAP. In addition, other companies,
including companies in our industry, may define these non-GAAP financial measures differently, which may limit their usefulness as comparative measures.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA and Adjusted EBITDA Margin are utilized by our management and other users of our financial statements such as
investors, commercial banks, research analysts and others, to assess our operating performance. Management believes these measures are useful because they each allow us to compare our operating performance on a consistent basis across periods.
Management also believes Adjusted EBITDA is a useful indicator of our operating performance and Adjusted EBITDA Margin is useful because it provides insight on profitability.

Net loss is the GAAP measure most directly comparable to Adjusted EBITDA, and net loss margin is the GAAP measure most
directly comparable to Adjusted EBITDA Margin. We define Adjusted EBITDA as net loss before net interest expense; depreciation and amortization expense; income tax expense; stock-based compensation; and other items management deems non-operational or not reflective of ongoing core operations (e.g. changes in fair value of warrant unit liabilities, professional fees associated with debt and equity transactions, legal settlements). We define
Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues.

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The table below presents a reconciliation of net loss and net loss
margin to Adjusted EBITDA and Adjusted EBITDA Margin:

For the Year Ended Change

2025 2024 Amount %

Net loss $	(59,030	) $	(56,926	) $	(2,104	) 3.7	%

Interest expense 755 14,331 (13,576	) (94.7	%)

Depreciation and amortization expense 3,993 1,859 2,134 114.8	%

Loss on debt extinguishment 24,182 — 24,182 N/A

Income tax expense 420 158 262 165.8	%

Stock-based compensation 4,610 2,662 1,948 73.2	%

Change in fair value of warrants (1) (1,752	) 1,398 (3,150	) (225.3	%)

Non-recurring professional fees (2) 4,176 1,606 2,570 160.0	%

Adjusted EBITDA $	(22,646	) $	(34,912	) $	12,266 (35.1	%)

Net loss margin (32.2	%) (44.3	%) 12.1	%

Adjusted EBITDA Margin (12.4	%) (27.2	%) 14.8	%

(1)	Non-cash change in fair value of our warrant liability at
December 31, 2024. See Note 13—Equity —Warrant Units, to our consolidated financial statements included in this prospectus for more details.

(2)	Professional fees represent (i) consulting, legal, accounting, and other expenses in connection with
the evaluation of potential non-recurring capital markets transactions in 2025 and 2024, (ii) certain consulting, legal, and corporate expenses in connection with debt modifications that occurred in April
2025, and (iii) certain non-recurring placement fees associated with key hires in 2025.

Adjusted Gross Profit and Adjusted Gross Margin

Adjusted Gross Profit and Adjusted Gross Margin are non-GAAP financial measures. We define Adjusted Gross Profit as GAAP gross
profit, adjusted to exclude reimbursable variable revenues and costs. We define Adjusted Gross Margin as Gross Margin less reimbursable revenue and cost. Reimbursable variable revenues and costs represents certain revenues and expenses where we
serve as the principal in transactions and control the use and timing of the products and services that are being utilized. We reimburse customers for revenues earned on their behalf and are reimbursed for the expenses we incur without a mark-up.

We present Adjusted Gross Profit and Adjusted Gross Margin because we believe these measures provide management and
investors with a more meaningful view of the underlying economics and profitability of our core operations. Because reimbursable variable revenues and costs are recorded on a gross basis under U.S. GAAP and, by design, offset one another with no
material contribution to profit, their inclusion in GAAP revenues and cost of revenues can cause reported gross margin percentages to fluctuate significantly depending on the frequency of underlying activities which can be driven by unpredictable
changes in market conditions. By excluding these revenues, Adjusted Gross Margin reflects the margin we earn on the goods and services where we bear economic risk, exercise pricing judgment, and generate value for our customers.

We use Adjusted Gross Profit and Adjusted Gross Margin internally to evaluate segment-level performance, assess pricing and
cost trends, and benchmark our profitability against peers whose revenue recognition practices may differ with respect to reimbursable items. We believe this perspective enhances investors’ understanding of the operating leverage and margin
trajectory of our business.

Adjusted Gross Profit and Adjusted Gross Margin have limitations as analytical tools. They
are not substitutes for GAAP gross profit or GAAP gross margin, and our calculations may not be comparable to similarly titled measures reported by other companies because other entities may not define or calculate these measures in the same manner.
In addition, while reimbursable variable costs are excluded because they have immaterial net margin impact, they do represent real cash flows and contractual obligations that affect our

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working capital and liquidity. Accordingly, these non-GAAP measures should be considered alongside, and not as alternatives to, the GAAP financial measures included in our consolidated financial
statements.

For the Year Ended Change

2025 2024 Amount %

Total Revenues $	183,145 $	128,490 54,655 42.5	%

Total Cost of Revenues 145,151 111,280 33,871 30.4	%

Less: Depreciation and amortization expense 3,993 1,859 2,134 114.8	%

Total Gross Profit $	34,001 $	15,351 18,650 121.5	%

Less: Reimbursable revenue (16,336	) (13,903	) (2,433	) 17.5	%

Add: Reimbursable cost 16,156 14,042 2,114 15.1	%

Adjusted Gross Profit $	33,821 $	15,490 18,331 118.3	%