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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Financial Statements December 31, 2025 and 2024 unit and a liquidation preference of $12.6 million. In addition, on July 1, 2018, the Company issued 19,167 Series A-1 Preferred Units with a stated value of $600 per unit and a liquidation preference of $12.0 million. Except for the difference in original stated value and resulting liquidation preference, the Series A-1 and Series A-2 Preferred Units have identical voting, dividend, and redemption rights. December 31, 2025 and 2024, the Company had issued and outstanding 163,975 Series A Preferred Units, consisting of 19,167 Series A-1 Preferred Units and 144,808 Series A-2 Preferred Units, reflective of the retroactive adjustment for the stock split effective April 29, 2025. The Series A Preferred Units were originally issued on July 1, 2018 (the “Original Issue Date”). The following table summarizes the Company’s Series A Preferred Units authorized, issued, and outstanding as of December 31, 2025 and 2024:

Series Units Authorized Units Issued and Outstanding Issuance Price per Unit Redemption Value (in thousands) (1)

December 31, 2024

Series A-1 19,167 19,167 600.00 $	18,965

Series A-2 144,808 144,808 83.41 19,918

Total 163,975 163,975 $	38,883

December 31, 2025

Series A-1 19,167 19,167 600.00 $	20,483

Series A-2 144,808 144,808 83.41 21,511

Total 163,975 163,975 $	41,994

(1) The Series A Preferred Units are classified as mezzanine equity because they are
redeemable at the option of the holders. Non-cash preferred dividends are recorded to increase the carrying value of the preferred units to their redemption amount at each reporting date.

During 2025, in connection with issuing a new $15.3 million convertible note, the Company canceled a lender’s
existing warrants in exchange for an increased percentage interest in the Company’s residual distributions. This exchange was executed through a modification of the lender’s existing Series A-2
Preferred Units, which maintained their original senior liquidation preference. As a result of this modification, the Company allocated an additional $4.7 million in investment value to the Series A-2
Preferred Units to reflect these enhanced residual distribution rights.

Classification and Measurement

The Series A Preferred Units contain redemption features that are not solely within the control of the Company. Specifically,
the holders of a majority of the Series A Preferred Units (the “Preferred Member Majority”) may demand redemption of the units at any time on or after the fifth anniversary of the Original Issue Date. Accordingly, these units are
classified as mezzanine equity in the consolidated balance sheets.

Since the Series A Preferred Units became redeemable
as of July 1, 2023, the Company records the units at their maximum redemption value at each reporting date. Changes in the redemption value are recognized immediately as they occur and are recorded as preferred dividends against common units.

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

For the years ended December 31, 2025 and 2024, the Company recorded
preferred dividends of $3.1 million and $2.9 million to adjust the carrying value of the Series A Preferred Units to their full redemption value.

Dividends and Distributions

The holders of Series A Preferred Units are entitled to receive cumulative priority distributions ahead of common units equal
to their “Liquidation Preference” (1.0x the applicable preferred issue price). Following this priority payment and specific distributions to certain common unit holders, Series A holders participate pari passu with other classes until
they have received aggregate distributions equal to two times (2.0x) their issue price. Thereafter, subject to catch-up provisions for holders of Restricted Compensatory Units, Series A Preferred Unit holders
participate ratably in any remaining distributions in accordance with their respective percentage interests.

Conversion Rights

• Automatic Conversion: Each Series A Preferred Unit shall automatically be converted into common units
immediately upon the closing of a Qualified Public Offering (IPO).

• Conversion Ratio: The number of common units to be issued upon conversion is determined by a “Conversion
Number,” which is calculated as the quotient of (i) the amount the Series A Preferred Unit would receive if the Company’s fair market value were distributed in full to members, divided by (ii) the amount a common unit would
receive in the same theoretical distribution.

• Anti-Dilution Protection: The Series A Preferred Units benefit from anti-dilution provisions that adjust the
applicable preferred issue price and number of units to protect the value of the conversion right in the event of dilutive issuances.

Redemption Rights:

• Redemption Event: Upon the occurrence of a “Redemption Event,” the Preferred Member Majority may
demand that the Company redeem all outstanding Series A Preferred Units. A Redemption Event is defined as (i) a company sale, (ii) the closing of an IPO, or (iii) the fifth anniversary of the Original Issue Date.

• Redemption Price: The redemption price per unit is equal to the “Redemption Value,” defined as the
amount necessary to result in the holder receiving an 8% Internal Rate of Return on the applicable Issue Price.

• Events of Default: If the Company fails to redeem the Series A Preferred Units upon a valid demand following a
Redemption Event, the annual return rate used to calculate the Redemption Value shall increase from 8.0% to 12.0% until the redemption price is paid in full.

• Current Status: As of December 31, 2025, the fifth anniversary of the Original Issue Date has passed.
Consequently, the Series A Preferred Units are currently redeemable at the option of the holders.

13. EQUITY

As of December 31, 2025 and 2024, the Company had common units, which include Restricted Compensatory Units. Each such
class of units may be subdivided into one or more series as determined by the Board of Directors from time to time. As of December 31, 2025, the common units constitute a single class of units, undifferentiated by series.

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

Common Units

During 2025 and 2024, the Company did not issue any new voting common units.

Warrant Units

Pursuant to the terms of the 2023 Loan and Security Agreement (see Note 11 — Debt), the Company issued a warrant to a
bank to purchase 431 duly authorized and validly issued common units at an exercise price per unit of $0.01. The warrant is subject to certain adjustments and may be exercised at any time until August 4, 2033. The estimated fair value of the
warrant of $0.6 million was determined using the Black-Scholes option-pricing model. For this purpose, the Company assumed a risk-free interest rate of 4.78%, a probability weighted time to exit of two years, and 80.0% volatility. The Company
recorded the estimated fair value of the warrant as equity and other assets and will amortize the expense over the term of access to the line of credit.

Pursuant to the terms of the 2024 Credit Agreement (see Note 11 — Debt), the Company issued a warrant to an investor to
purchase 6,290 duly authorized and validly issued common units at an exercise price per unit of $0.01. The warrant is subject to certain adjustments and may be exercised at any time until February 27, 2034. The estimated fair value of the
warrant of $3.2 million was recorded as equity and a debt discount contra-liability, and the debt discount will be amortized over the term of the agreement.

Pursuant to the terms of the 2025 Credit Agreement (see Note 11 — Debt), the Company issued a warrant to an investor to
purchase 2,525 duly authorized and validly issued common units at an exercise price per unit of $0.01. The warrant is subject to certain adjustments and may be exercised at any time until December 22, 2035. The estimated fair value of the
warrant of $1.0 million was recorded as warrant equity.

Warrant expense for the year ended December 31, 2025,
was $0.6 million. Warrant expense for the year ended December 31, 2024, was $1.2 million, which included $0.5 million of expense related to the 2023 Loan and Security Agreement as it was paid off during 2024.

14. STOCK-BASED COMPENSATION

Restricted Compensatory Units

Restricted Compensatory Units are treated as separate profits interests within the meaning as defined in the LLC Agreement, and
it is the intention of the members that distributions in respect of Restricted Compensatory Units be limited to the extent necessary so that such Restricted Compensatory Units qualify as profits interests. Restricted Compensatory Units may be
designated as voting units or nonvoting units, as approved by the Board of Directors.

Compensation cost is measured at
grant-date fair value and recognized as compensation expense using the straight-line method over the applicable requisite period. The awards may include performance conditions (e.g. company sale, distribution achievement, or IPO) that provide
for accelerated vesting. Expense related to such conditions is recognized only when the event is considered probable.