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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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. Table of Contents 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

Concurrently with the closing of the IPO, we will enter into the Tax Receivable Agreement with the TRA Beneficiaries and a
designated TRA representative. The Tax Receivable Agreement will provide for payment by us to the TRA Beneficiaries of 85% of the amount of the net cash tax savings, if any, that we actually realize or are deemed to realize (calculated using certain
assumptions) as a result of our use of certain tax benefits resulting from (i) certain increases in, or adjustments to, the tax basis of assets of ER Holdings and its subsidiaries resulting from exchanges of ER Holdings membership interests in
the future, (ii) certain tax attributes available to us as a result of the Reorganization, and (iii) certain other tax benefits related to our entering into the Tax Receivable Agreement, including tax benefits attributable to payments that
we make under the Tax Receivable Agreement. We will retain the remaining 15% of such amount of the net cash tax savings. See “Certain Relationships and Related Person Transactions—Proposed Transactions with ERock, Inc.—Tax
Receivable Agreement.”

The payments that we will be required to make under the Tax Receivable Agreement may be
substantial. For the sake of illustration, assuming all outstanding membership interests in ER Holdings held by TRA Beneficiaries are exchanged for shares of Class A Common Stock immediately after this offering, the estimated tax benefits to us
subject to the Tax Receivable Agreement would be approximately $  and the related undiscounted payment to the TRA Beneficiaries equal to 85% of the benefit would be approximately $ , assuming (i) that the Continuing Equity Unitholders
redeemed or exchanged all of their Class B Units immediately after the consummation of the IPO at $ per share of our Class A common stock, (ii) that the Continuing Profits Interest Unitholders converted all of their Class M Units
for Class B Units of equivalent value at the time of the conversion immediately after the IPO, and the resulting Class B Units were redeemed or exchanged in accordance with clause (i), (iii) no material changes in relevant tax law,
(iv) a constant combined effective income tax rate of % and (v) that we have sufficient taxable income in each year to realize on a current basis the increased depreciation, amortization and other tax benefits that are the subject of the
Tax Receivable Agreement. Additionally, if we were to elect to terminate the Tax Receivable Agreement immediately after this offering, based on an initial public offering price of $    per share of our Class A Common
Stock, we estimate that we would be required to pay approximately $    million in the aggregate under the Tax Receivable Agreement. This early termination payment is equal to the present value of all payments that would be
required to be paid by ERock under the Tax Receivable Agreement, and is determined by taking into account certain assumptions and using a discount rate equal to the lesser of (a) 6.5% and (b) the Secured Overnight Financing Rate, as reported by
the Wall Street Journal (SOFR) plus 400 basis points. The actual future payments to the TRA Beneficiaries will vary based on the factors discussed above, and estimating the amount of payments that may be made under each Tax Receivable Agreement is
by its nature imprecise, insofar as the calculation of amounts payable depends on a variety of factors and future events. See “Risk Factors—Risks Related to Our Corporate Structure, Our Class A Common Stock and this Offering.”

Payments under the Tax Receivable Agreement are generally intended to partially compensate TRA Beneficiaries for tax
savings that we realize as a result of the tax attributes that these TRA Beneficiaries deliver to us in connection with the UP-C structure. As such, we generally expect payments to the TRA Beneficiaries to
affect our liquidity in a manner comparable to the payment of taxes we would have owed in the absence of the UP-C structure. Because payments under the Tax Receivable Agreement are generally determined with
reference to the cash tax savings we actually realize based on our filed tax returns, they generally arise on an annual basis following the end of each taxable year in which we realize the relevant tax savings, and we retain 15% of such savings.
Taken together, this means that, on a current-pay basis and setting aside the acceleration scenarios described below, the Tax Receivable Agreement is not expected to require payments that exceed those that
would

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have been required in the absence of the UP-C structure; instead, it redirects a portion of a tax expense we would in any event have incurred, while
leaving ERock with an incremental 15% cash benefit that would not otherwise have been available to it. Accordingly, we do not expect the Tax Receivable Agreement payments, in the ordinary course of business, to impair our ability to meet other
operating or financing needs to any greater extent than our income tax obligations would in the absence of the UP-C structure.

However, the timing and amount of the Tax Receivable Agreement payments may be affected by a number of factors. The amount of
payments in any given year will depend on, among other things, the extent to which Continuing Equity Unitholders and Continuing Profits Interest Unitholders exchange their units, our taxable income in that year and any prior years, applicable tax
rates, and the outcome of any tax audits or other proceedings. In addition, under the Tax Receivable Agreement, if we exercise our right to terminate the Tax Receivable Agreement early, or we breach any of our material obligations under the Tax
Receivable Agreement, our obligations under the Tax Receivable Agreement to make payments would be accelerated and based on certain assumptions, including an assumption that we would have sufficient taxable income to fully use all potential future
tax benefits that are subject to the Tax Receivable Agreement. As a result, the amount we are required to pay under the Tax Receivable Agreement may significantly exceed 85% of the actual cash tax benefits that we realize in respect of the tax
attributes subject to the Tax Receivable Agreement or the amounts may need to be paid prior to the actual realization, if any, of such future tax benefits. See “Risk Factors—Risks Related to Our Corporate Structure, Our Class A
Common Stock and this Offering.”

Critical Accounting Estimates

At March 31, 2026, there have been no significant changes to our critical accounting estimates since our audited
consolidated financial statements.

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 condensed consolidated financial statements included elsewhere 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 at March 31, 2026, 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 2025 Term Loan and 2025 Revolver. The 2025 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 2025 Revolver 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 March 31, 2026, the interest rate on the 2025 Term Loan was 9.50% per annum, and we had $30.1 million
outstanding thereunder. A hypothetical increase or decrease of 100 basis points in the Prime Rate on the amounts outstanding under the 2025 Term Loan at March 31, 2026 would have an increase or decrease in annual cash interest of
$0.2 million. At March 31, 2026, the interest rate on the 2025 Revolver was 7.00% per annum, and we had no borrowings thereunder.

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Commodity Price Risk