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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December 31, Change 2025 2024 Amount % (dollars in thousands) Power system sales product revenues $ $ 53,976 $ % Power system sales installation services revenues 38,363 Power system sales revenues 92,339 Ongoing services revenues 36,151 Total revenues $ $ 128,490 $ % Total revenue for the year ended December 31, 2025, was , a of $ , or %, compared to $128.5 for the year ended December 31, 2024. This was driven by a $ in power system sales revenues and a $ in ongoing service revenues, primarily reflecting . Power system sales product revenues $ , or %, for the year ended December 31, 2025, compared to the prior year. This was driven by a $ in . Power system sales installation services revenues $ , or %, for the year ended December 31, 2025, compared to the prior year. This was driven by a $ in .

Ongoing services revenues     $    , or     %, for the
year ended December 31, 2025, compared to the prior year. This      was driven by a $     in     .

Total Cost of Revenues

For the Year Ended December 31, Change

2025 2024 Amount %

(dollars in thousands)

Cost of power system sales product revenues $ $	50,748 $ %

Cost of power system sales installation services revenues 29,742

Cost of power system sales
revenues (1) 80,490

Cost of ongoing services revenues (1) 30,790

Total cost of revenues $ $	111,280 $ %

(1) Cost of revenues excludes depreciation and amortization.

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Total cost of revenue      by
$     for the year ended December 31, 2025, compared to 2024. This      was driven by     .

Cost of power system sales product revenues     $    , or
%, for the year ended December 31, 2025, compared to the prior year. This      was driven by a $     in     .

Cost of power system sales installation revenues     $     , or
%, for the year ended December 31, 2025, compared to the prior year. This     was driven by a $     in     .

Cost of ongoing services revenues     $    , or     %,
for the year ended December 31, 2025, compared to the prior year. This      was driven by a $     in     .

Operating Expenses

For the Year Ended December 31, Change

2025 2024 Amount %

(dollars in thousands)

General and administrative expenses $ $	57,887 $ %

Depreciation and amortization expense 1,859

General and administrative expenses      by
$    , or     %, for the year ended December 31, 2025, compared to 2024. The      was primarily driven by

Depreciation and amortization expense      by $    , or
%, for the year ended December 31, 2025, compared to 2024. This      was primarily driven by     .

Other Income and Expenses

For the Year Ended December 31, Change

2025 2024 Amount %

(dollars in thousands)

Interest expense $ $	14,331 $ %

Other income, net 99

Interest expense      to $     for the year
ended December 31, 2025, compared to $14.3 million in 2024. This      was primarily due to     .

Other income, net      by $    , or     %, for the
year ended December 31, 2025, compared to 2024. This      was primarily driven by     .

Provision
for Income Taxes

For the Year Ended December 31, Change

2025 2024 Amount %

(dollars in thousands)

Income tax expense $ $158 $ %

Income tax expense      by $    , or
%, for the year ended December 31, 2025, compared to 2024. This      was primarily attributable to     .

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Liquidity and Capital Resources

Our working capital is substantially influenced by the factors discussed above and fluctuates based on the timing and amount
of borrowings and repayments of long-term debt, as well as the timing of cash collections from customers and payments to vendors. As of December 31, 2025, we had unrestricted cash and cash equivalents of $    ,
consisting of highly liquid investments with maturities of three months or less, including money market funds. At December 31, 2025 and 2024, working capital was $     and $32.4 million, respectively. The
$     was primarily due to     .

Management believes that our existing
cash and cash equivalents, together with amounts available under the 2025 Credit Agreement, will be sufficient to meet obligations due or anticipated to be due within one year, including operating expenses, working capital needs, and current
commitments for capital expenditures. However, our future capital requirements may vary depending on a number of factors, including those described in the section entitled “Risk Factors.” Additional equity or debt financing may be
required, and there can be no assurance that such financing will be available on acceptable terms or at all. If additional financing is unavailable, or if we cannot expand operations or capitalize on business opportunities due to insufficient
capital, its business, financial condition, and operating results could be materially adversely affected.

Future capital
requirements will depend on factors such as revenue growth, timing and level of spending on research and development and other business initiatives, growth in system builds and corresponding working capital needs, expansion of sales and marketing
activities, market acceptance of products, our ability to secure financing for customer use of products, the timing of installations and inventory buildup in anticipation of future projects, and overall economic conditions. To support our growth
plans, we may need to raise additional funds through equity or debt financing, and failure to secure such financing could affect future revenues, cash flows, and results of operations.

2024 Credit Agreement

On February 27, 2024, we entered into a five-year term credit agreement (the “2024 Credit Agreement”), which
provides for a $75.0 million senior secured initial term loan and a $30.0 million delayed draw term loan, each maturing on February 27, 2029.

On November 26, 2025, we paid off all outstanding principal, accrued interest, and other fees in order to terminate the
2024 Credit Agreement.

2024 Note Purchase Agreement and Amended and Restated Note Purchase Agreement

On December 27, 2024, we entered into a note purchase agreement with an affiliated investor (the “2024 Note Purchase
Agreement”) pursuant to which the lender agreed to purchase a minimum aggregate principal amount of $20.0 million and a maximum aggregate principal amount of $50.0 million of convertible promissory notes. These notes are convertible
into equity securities having rights, privileges, preferences, and restrictions identical to those issued in a future equity financing.

In connection with the notes, we agreed to issue a warrant to each lender with an exercise price of $0.01 per unit. The number
of common units exercisable under each warrant is calculated by dividing the aggregate principal amount of the note purchased by 1,497.

On April 29, 2025, we entered into an amended and restated note purchase agreement (the “A&R Note Purchase
Agreement”) which amended and restated the 2024 Note Purchase Agreement and the notes issued thereunder, and pursuant to which the lenders agreed to purchase convertible promissory notes in an aggregate principal amount not to exceed
$65.0 million (the “2025 Convertible Notes”), inclusive of the $20.0 million of notes issued under the 2024 Note Purchase Agreement. The 2025 Convertible Notes are convertible into equity securities having rights, privileges,
preferences, and restrictions identical to those issued in a future equity financing.

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In connection with the A&R Note Purchase Agreement, all warrants
previously issued under the 2024 Note Purchase Agreement were cancelled. For more information on the A&R Note Purchase Agreement, see Note 19 – Subsequent Events, to our consolidated financial statements included in this prospectus.

Rights Offering

The A&R Note Purchase Agreement also authorizes a rights offering to existing equity holders (other than current lenders
and their affiliates) of up to $4.96 million of 2025 Convertible Notes, provided that the amount of all 2025 Convertible Notes may not exceed $65.0 million. Purchasers participating in the rights offering are entitled to receive additional
common units (“RO Units”), the number of which is determined pursuant to a specified formula tied to the purchaser’s principal investment and an aggregate principal reference amount of $35.0 million.

December 2024 Convertible Note and Amended and Restated Notes

On December 27, 2024, pursuant to the 2024 Note Purchase Agreement, we issued a $10.0 million convertible promissory
note (the “December 2024 Convertible Note”) to an investor, with a maturity date of the later of (i) December 27, 2026 and (ii) for so long as the 2024 Credit Agreement remains outstanding, the date that is six months
following the stated maturity date of the 2024 Credit Agreement.

The December 2024 Convertible Note bears interest at 15%
per annum, compounding quarterly, with interest payable in kind (“PIK”), meaning that accrued interest is added to the principal balance. Interest begins accruing on the issue date and continues until the earlier of the note’s
maturity or any event that triggers conversion or repayment prior to maturity, at the lender’s election. For more information on the December 2024 Convertible Note, see Note 11 – Debt, to our consolidated financial statements included in
this prospectus.