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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to period based on various factors, including changes in the number and size of projects in progress at period-end and variability in billing and payment terms due to milestone billings. During the year ended December 31, 2025, the Company entered into contracts with three customers that account for $117.9 million of total contract liabilities. During the years ended December 31, 2025 and 2024, the Company recognized revenue of $25.0 million and $25.6 million, respectively, that was included in contract liabilities at the beginning of the year. 6. INVENTORY Inventory is stated at the lower of cost or net realizable value. Inventory consists of fully assembled generators and other major equipment used for Power System Sales Installation Services contracts valued using the specific identification method and spare parts inventory for Ongoing Services contracts valued using the average cost method. Inventory consisted of the following as of December 31, 2025 and 2024:

Natural gas generators $	10,017 $	57,744

Installation equipment 15,374 11,393

Spare parts inventory 18,290 11,350

Total inventory $	43,681 $	80,487

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

7. PREPAID EXPENSES

Prepaid expenses consisted of the following as of December 31, 2025 and 2024:

Prepaid power system sales equipment $	5,851 $	13,845

Prepaid general and administrative expenses 2,948 2,838

Total prepaid expenses $	8,799 $	16,683

8. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following as of December 31, 2025 and 2024:

Useful Lives (Years) 2025 2024

Equipment 5 - 15 $	15,852 $	11,721

Leasehold improvements 5 - 7 2,841 1,375

Trailers 5 103 53

Furniture and fixtures 5 - 7 521 347

Computers and software 5 13,128 3,016

Construction in progress 2,381 13,569

Less accumulated depreciation (7,281	) (3,300	)

Total property and equipment, net $	27,545 $	26,781

Depreciation expense for the years ended December 31, 2025 and 2024 was $4.0 million
and $1.8 million, respectively.

9. LEASES

The Company has long-term operating leases, comprised primarily of equipment, vehicles, and real estate lease arrangements.
Operating leases have remaining lease terms of one year to seven years.

As of December 31, 2025 and 2024, the
classification of leases in the consolidated balance sheets was as follows:

Classification 2025 2024

Right-of-use
assets

Operating leases Right-of-use assets, net $	10,832 $	11,670

Lease liabilities

Current

Operating leases Lease liabilities, current 3,343 2,773

Noncurrent

Operating leases Lease liabilities, noncurrent 8,019 9,361

Total lease liabilities $	11,362 $	12,134

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

Operating lease liabilities are based on the net present value of the
remaining lease payments over the remaining lease term. In determining the lease liability and the present value of lease payments, management used the incremental borrowing rate.

Operating lease expense for the years ended December 31, 2025 and 2024 was $4.2 million and $4.1 million,
respectively, and is included in cost of power system sales revenues, cost of ongoing services revenues, and general and administrative expenses in the consolidated statements of operations.

The following is the aggregate future lease payments for operating leases as of December 31, 2025:

Thereafter 294

Total undiscounted lease payments 12,680

Less imputed interest (1,318	)

Lease liabilities $	11,362

Cash paid during 2025 and 2024 for operating leases was $4.1 million and
$3.9 million, respectively. During 2025 and 2024, ROU assets obtained in exchange for the lease obligations for operating leases were $3.1 million and $2.2 million, respectively.

The weighted-average remaining lease term of operating leases is approximately four years. The weighted-average discount rate
used to determine the operating lease liabilities as of December 31, 2025 and 2024 was 6.73% and 4.33%, respectively.

On December 8, 2025, the Company entered into a new 7.5-year lease agreement for a new storage facility. The lease is expected
to commence in March 2026, upon completion of the build-out. At the commencement date, the Company expects to recognize a Right-of-Use (ROU) asset of approximately $14.7 million and a corresponding lease liability of approximately $18.7 million,
inclusive of a $4.0 million tenant improvement allowance, based on initial direct costs and present value of future lease payments.

10. PAYABLES AND
ACCRUED LIABILITIES

The following is a summary of payables and accrued liabilities as of December 31, 2025 and

Accounts payable

Power system sales payable $	9,211 $	22,228

Ongoing services payable 4,226 4,080

General and administrative payable 2,050 2,894

Other payables 1,062 2,757

Total accounts payable $	16,549 $	31,959

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

Accrued liabilities and other payables

Accrued salaries $	6,396 $	2,741

Accrued operating expenses 17,067 11,423

Accrued commissions and fees 515 694

Accrued sales tax payable 929 104

Short term note payable 1,328 1,347

Total accrued liabilities and other payables $	26,235 $	16,309

11. DEBT

The Company’s debt obligation as of December 31, 2025 and 2024 consisted of the following:

2025 Credit Agreement $	30,000 $	—

2024 Credit Agreement — 78,921

December 2024 Convertible Note 11,606 10,016

Additional 2024 Convertible Notes 11,405 —

2025 Convertible Notes 16,930 —

Rights offering convertible notes 73 —

Total notes payable, gross 70,014 88,937

Less: unamortized deferred debt issuance costs (863	) (5,019	)

Less: unamortized debt discount (9,123	) (13,146	)

Total notes payable, net 60,028 70,772

Less: current portion (44	) —

Total notes payable, net, noncurrent portion $	59,984 $	70,772

The following table presents details of our outstanding debt obligations repayment schedule as
of December 31, 2025:

Thereafter 89,523

2025 Credit Agreement

On December 22, 2025, the Company entered into a loan and security agreement (the “2025 Credit Agreement”),
which provides for a senior secured term loan in the initial principal amount of $30.0 million (the “2025 Term Loan”) and a senior secured revolving credit facility with commitments in the aggregate amount of $30.0 million (the
“2025 Revolver”).

If (i) on or before June 30, 2027 the Company’s unrestricted cash falls
below a threshold specified in the 2025 Credit Agreement, or (ii) before December 1, 2027 (the “Default Amortization Date”), the Company

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December
31, 2025 and 2024

consolidated adjusted EBITDA falls below a threshold specified in the 2025 Credit Agreement, then on the first day of the month following the occurrence of an event described in the preceding
clauses (i) or (ii) (the “Amortization Trigger Date”) the 2025 Term Loan will amortize in 24 equal monthly installments based on a fully amortizing straight line amortization schedule, with the 2025 Term Loan maturing on the 23rd
such installment after the Amortization Trigger Date. If the Amortization Trigger Date does not occur before the Default Amortization Date, the 2025 Term Loan will amortize in 36 equal monthly installments based on a fully amortizing straight line
amortization schedule and will mature on November 29, 2030.

Borrowings under the 2025 Credit Agreement are secured
by a lien on all equipment, inventory, receivables, general intangibles, and substantially all other personal property owned by the Company, including a pledge of the equity interests in its subsidiaries.

Interest under the 2025 Credit Agreement is payable monthly and accrues at a rate equal to (x) in the case of the 2025
Term Loan, the greater of (i) the prime rate plus 2.25% and (ii) 9.50%, and (y) in the case of principal amounts outstanding under the 2025 Revolver, the greater of (i) the prime rate plus 0.25% and (ii) 6.00%. The 2025 Term Loan is
subject to a fee, payable upon the maturity or earlier prepayment of the 2025 Term Loan, in the amount of 7.00% of the initial principal amount of the 2025 Term Loan. Additionally, voluntary prepayments or mandatory prepayments resulting from an
event of default are subject to a prepayment premium equal to 3.00% of the principal amount prepaid if occurring in the first year, 2.00% in the second year, and 1.00% in the third year. The 2025 Revolver is also subject to an unused line fee,
payable quarterly, in the amount of 0.25% of the average unused commitments under the 2025 Revolver. For the year ended December 31, 2025, the effective interest rate on the 2025 Term Loan was 12.1%, which includes the stated interest rate and
the amortization of the debt discount, capitalized debt issuance costs, and the final payment fee.

The 2025 Credit
Agreement includes certain affirmative and restrictive covenants common in such agreements that apply to the Company and its subsidiaries, including, among others (i) a minimum current ratio of at least 1.25:1.00 and (ii) minimum
unrestricted cash of $12.5 million, and (iii) subject to certain customary exceptions, restrictions on the ability to incur debt, grant liens, make investments or distributions, engage in new businesses other than those reasonably related
to those currently engaged in by the Company and its subsidiaries, or perform mergers and other fundamental corporate changes.