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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a majority of the outstanding Series A preferred units may, by written notice to the Company, require the Company to redeem all outstanding Series A preferred units. The redemption price per unit is calculated to provide the holder with an 8% internal rate of return on the original issue price of the Series A preferred unit. Cash Flows for the three months ended March 31, 2026 compared to three months ended March 31, 2025 The following table summarizes our cash flows by source (use) for the periods presented: Three Months Ended March 31, Change (in thousands, except percentages) 2026 2025 Amount % Net cash provided by (used in) operating activities $ 196,983 $ (8,289 ) $ 205,272 (2476.4 %) Net cash used in investing activities (4,082 ) (1,181 ) (2,901 ) 245.6 % Net cash (used in) provided by financing activities (490 ) 9,493 (9,983 ) (105.2 %) Operating Activities

Our operating activities consist of net loss adjusted for certain non-cash items,
together with changes in operating assets and liabilities (working capital). Changes in working capital totaled $207.2 million, which include the following:

• A $301.2 million increase in contract liabilities primarily driven by new customer deposits associated
with contracts entered into during the three months ended March 31, 2026.

• A $69.3 million increase in accounts receivable primarily driven by increased customer sales.

• A $17.0 million increase in inventory primarily due to build up of inventory related to manufacturing
ramp up.

For the three months ended March 31, 2026, net cash provided by operating activities was
$197.0 million, an increase of $205.3 million from the prior year primarily driven by changes in working capital. Changes in working capital increases from the prior year were primarily driven by an increase of $301.2 million in
contract

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liabilities in 2026 compared to the increase of $5.3 million in contract liabilities in 2025, an increase of $69.3 million in accounts receivable in 2026 compared to the
$6.9 million decrease in 2025, and an increase of $17.0 million in inventory in 2026 compared to the $1.5 million increase in 2025.

Investing Activities

Historically, our investing activities have primarily consisted of capital expenditures to support the growth and scalability
of our operations. For the three months ended March 31, 2026 and 2025, net cash used in investing activities was $4.1 million and $1.2 million, respectively.

For the three months ended March 31, 2026, net cash used in investing activities was primarily driven by investment in
our Hyperion and Titan Facilities, representing a significant step forward in the development and deployment of our next-generation energy infrastructure.

Financing Activities

For the three months ended March 31, 2026, net cash used in financing activities was $0.5 million. During the
quarter, we made voluntary payments of principal and paid-in-kind interest totaling $0.5 million.

For the three months ended March 31, 2025, net cash provided by financing activities was $9.5 million. During the
quarter, we made voluntary payments of principal and paid-in-kind interest totaling $0.5 million. In addition, during the quarter, we issued $10.0 million of
convertible promissory notes to an affiliated investor.

Cash Flows for the year ended December 31, 2025 compared to year ended
December 31, 2024

The following table summarizes our cash flows by source (use) for the periods presented:

Years Ended December 31, Change

(in thousands, except percentages) 2025 2024 Amount %

Net cash provided by (used in) operating activities $	116,501 $	(24,210	) $	140,711 (581.2	%)

Net cash used in investing activities (4,667	) (9,000	) 4,333 (48.1	%)

Net cash (used in) provided by financing activities (25,650	) 31,243 (56,893	) (182.1	%)

Operating Activities

Our operating activities consist of net loss adjusted for certain non-cash items,
together with changes in operating assets and liabilities (working capital). Changes in working capital totaled $132.1 million, which include the following:

• A $136.8 million increase in contract liabilities primarily driven by new customer deposits associated
with contracts entered into during 2025.

• A $36.8 million decrease in inventory primarily due to direct generators sales to customers during 2025.

• A $11.7 million decrease in other liabilities primarily due to the mark-to-market on our warrant unit liabilities during 2025.

• A $15.5 million decrease in accounts payable due to the timing of various vendor payments.

For the year ended December 31, 2025, net cash provided by operating activities was
$116.5 million, an increase of $140.7 million from the prior year primarily driven by changes in working capital. Changes in working capital increases from prior year were primarily driven by an increase in contract liabilities of

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$136.8 million in 2025 compared to the decrease of $7.7 million in contract liabilities in 2024 as well as a decrease of $36.8 million in inventory in 2025 compared to the
$30.8 million increase in 2024. These amounts were partially offset by the year over year $35.0 million increase in accounts receivable and the $18.7 million decrease in other liabilities.

Investing Activities

Historically, our investing activities have primarily consisted of capital expenditures to support the growth and scalability
of our operations. For the years ended December 31, 2025 and 2024, net cash used in investing activities was $4.7 million and $9.0 million, respectively.

For the year ended December 31, 2025, net cash used in investing activities was primarily driven by continued investment
in the concurrent development and expansion of the Granite Software Ecosystem and the ERT500 generators (Thanos Project), representing a significant step forward in the development and deployment of our next-generation energy infrastructure.

For the year ended December 31, 2024, we continued to make significant investments in the development of its Granite
Software Ecosystem, a proprietary platform that leverages operating data to enhance reliability and reduce costs. We remain focused on evolving the Granite Software Ecosystem to help customers optimize system performance, lower operating costs, and
accelerate project deployment timelines.

Financing Activities

For the year ended December 31, 2025, net cash used in financing activities was $25.7 million. During the year, we
made voluntary payments of all principal and paid-in-kind interest totaling $79.2 million. On December 22, 2025, the Company entered into a Loan and Security
Agreement that consisted of a $30.0 million term loan and a $30.0 million revolving credit facility, with a maturity date of November 29, 2030. In addition, during the year, we issued $25.4 million of convertible promissory notes
to an affiliated investor.

For the year ended December 31, 2024, net cash provided by financing activities was
$31.2 million. On February 27, 2024, we entered into a five-year term credit agreement, which included a $75.0 million senior secured initial term loan and a $30.0 million delayed draw term loan, maturing on February 27,
2029. A portion of the proceeds from the new term loan was used to repay all outstanding borrowings under our 2023 Loan and Security Agreement, totaling approximately $38.0 million.

During 2024, we also issued $10.0 million of convertible promissory notes to an affiliated investor, incurred
$8.1 million in debt issuance costs, and paid distributions to common unit holders totaling $7.7 million.

Contractual Obligations and
Commitments

Our cash requirements within the next twelve months include accounts payable and accrued liabilities,
other current liabilities, and other obligations. We expect the cash required to meet these obligations to be primarily generated through a combination of cash from operations and our borrowing capacity under our 2025 Credit Agreement.

Our long-term cash requirements under our various contractual obligations and commitments include:

• Debt Obligations and Interest Payments – See Note 11 – Debt and Note 19 – Subsequent Events,
to our condensed consolidated financial statements included in this prospectus for further detail of our debt and the timing of expected future principal and interest payments.

• Operating Leases – See Note 9 – Leases, in the Notes to our condensed consolidated financial
statements included in this prospectus for further detail of our obligations and the timing of expected future payments.

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We believe the following sources will be sufficient to meet our anticipated
cash requirements for at least the next twelve months while maintaining sufficient liquidity for normal operating purposes:

• our cash flows from operations; and

• availability of additional capital under our 2025 Credit Agreement.

Tax Receivable Agreement