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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which may, in turn, impact our reported financial results. Additional information For information on our accounting policies and on accounting pronouncements that have impacted or may materially impact our financial condition, results of operations, or cash flows, see Note 2 – Summary of Significant Accounting Policies, to our consolidated financial statements included in this prospectus. Table of Contents Recent Accounting Pronouncements For a discussion of our recently adopted accounting pronouncements, as well as recently issued accounting standards not yet adopted, see Note 2 – Summary of Significant Accounting Policies, to our consolidated financial statements included in this prospectus. Quantitative and Qualitative Disclosures About Market Risk In the normal course of business, we are exposed to various risks, including changes in interest rates. The following information summarizes our financial instruments as of December 31, 2025, which may result in future gains or losses due to interest rate fluctuations. Interest Rate Risk

We are exposed to interest rate risk on borrowings under the HSBC Term Loan and Revolving Credit Facility. The HSBC Term Loan
bears interest at a floating per annum rate equal to the greater of (A) the Prime Rate plus two and one quarter of one percent (2.25%) and (B) nine and one half of one percent (9.50%). The HSBC Revolving Credit Facility bears interest at a
floating per annum rate equal to the greater of (A) the Prime Rate plus one quarter of one percent (0.25%) and (B) six percent (6.0%). At December 31, 2025, the interest rate on the HSBC Term Loan was 9.50% per annum, and we had
$30.0 million outstanding thereunder. A hypothetical increase or decrease of 100 basis points in the Prime Rate on the amounts outstanding under the HSBC Term Loan as of December 31, 2025 would have an increase or decrease in annual cash
interest of $0.2 million. At December 31, 2025, the interest rate on the HSBC Revolving Credit Facility was 7.00% per annum, and we had no borrowings thereunder.

Commodity Price Risk

Volatility in the prices of raw materials and components, and our reliance on third-party suppliers, exposes us to indirect
commodity price risk and could adversely affect our profit margins. We currently rely on third-party suppliers for a significant portion of the components used in our manufacturing, instillation, and on-going
services of our power systems. We are currently seeing an industry-wide price fluctuation of key commodities used in our products, such as steel, copper and aluminum. The costs of these raw materials and parts are subject to substantial volatility
driven by shifting supply and demand, and fluctuations in currency exchange rates. Additionally, our procurement costs may be impacted by factors beyond our control, including changes in transportation expenses, government regulations, tariffs, and
broader economic conditions. Currently, we do not enter into hedging arrangements to mitigate commodity risk. Significant price changes for these raw materials and components could reduce our operating margins if we are unable to recover such
increases from our customers and could harm our business, financial condition and results of operations.

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BUSINESS

Overview

We are a
vertically integrated company that designs, deploys, operates and maintains multi-purpose distributed power systems, consisting of our proprietary, low emission, quick-response natural gas generator and embedded software technology, for our
customers. Our resilient, cost-effective, modular power systems can be rapidly deployed at a scale of more than 1 GW to meet our customers’ full range of power needs, including bridge, backup and dispatchable power applications, and are
supported by our O&M and asset management services. We deploy our systems in three applications: bridge (prime-to-backup), backup (resiliency) and dispatchable (flexible capacity) power.

• Bridge power
(prime-to-backup) . Our power systems deliver prime power in the near-term to accelerate time-to-power ahead of long-lead grid upgrades, which prevent our customers
from getting grid power. Once interconnection becomes available, the same assets typically transition to backup or flexible dispatch power service to support the customer or utility.

• Backup power (resiliency) . Our power systems provide highly reliable continuity for mission-critical
operations during grid disruptions and extreme weather events, and many of our existing deployments operate in this mode today.

• Dispatchable power (flexible capacity) . Our power systems are configured as on-demand, fast-response
resources and can be deployed by contract to market-facing objectives (such as peak-load management or grid-stability services).

We primarily serve data centers, utilities and large C&I businesses across eight U.S. states, with our largest operating
footprints located in California and Texas, where we anticipate disproportionate growth and market potential driven by high data center demand in the near- and medium-term. With over 15 years of operational experience, over 2,000 deployed units
across approximately 400 operational sites consisting of an installed base of approximately 1,000 MW and Contracted Power System Sales Backlog of approximately $1.22 billion as of December 31, 2025, we believe we are one of the most
established, proven providers of bridge, backup and dispatchable power applications for the growing distributed power generation market.

Target states represent those currently in our pipeline or designated as target geographies
by our management.

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Over the last 15 years, we have established deep expertise and a proven
track record in the deployment of complex integrated power systems through our ERock Platform. We refer to the delivery and operation of our generators and integrated software technology through our comprehensive, turnkey ESI, O&M and asset
management services platform, supported by our deep development, operational and market domain expertise in integrated power systems, as our “ERock Platform.”

Most of our sales include the comprehensive design, delivery, installation and long-term
services provided by the ERock Platform, with platform sales representing 100% and     % of all generators sold in 2024 and 2025 respectively. Leveraging our ERock Platform, we help customers meet evolving energy demands by
delivering cost-effective, turnkey speed-to-power and resiliency solutions that supplement and maximize traditional grid infrastructure. Our power systems are engineered for superior operational stability,
including:

• Reliability . Our systems are capable of 99.999% reliability.

• Diesel-equivalent transient performance . Our generators meet or exceed rigorous ISO 8528-5 G3 diesel standards, delivering fast, stable responses to sudden load swings, and we believe we are currently the only provider of natural gas generation that meets utility-grade transient performance
requirements for diesel units, which reduces the need for additional technology to deliver required power quality.

• Quieter, cleaner and rapidly deployed . Our power systems are typically quieter, cleaner, more resilient
and dispatchable, and can be deployed and commissioned more rapidly than traditional grid infrastructure and other conventional alternatives.

• No water-based cooling . As water use by data centers is receiving increasing scrutiny, our power
systems are designed to operate without any water-based cooling.

Our experienced O&M teams handle
all aspects of preventive and corrective maintenance, and our purpose-built software that is embedded in our power systems provides extensive operational data capture and analytical capabilities, enabling greater resilience of generator technology
and dynamic, insight-driven maintenance schedules. These performance attributes and our expertise in developing, deploying and maintaining integrated

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power systems differentiate us from our competitors and support our strong customer relationships, which is evidenced by our proven track record of delivering reliable, integrated power
solutions.

Once connected to the grid, we also assist customers to maximize the return on their
investment in our power systems by leveraging its multi-purpose dispatchable power capabilities through our market operations and dispatch management platform, acting as advisor or agent for owners of our deployed power systems of 724 MW. These
services allow customers to utilize our power systems for backup power as and when needed or to strategically dispatch capacity from our power systems during peak demand or scarcity events—ultimately enabling our power systems to become a grid
asset. Our asset optimization capabilities and market expertise enable us to monetize our power systems capacity, reduce costs to customers in almost any market and reduce times to grid interconnection. Our distributed power systems have
consistently operated in support of the grid.