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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6,966 Net cash used in operating activities (24,210 ) Cash flows from investing activities Capital expenditures (9,000 ) Net cash used in investing activities (9,000 ) Cash flows from financing activities Dividends paid to common unit holders (7,694 ) Proceeds from notes payable 85,000 Payments of notes payable (37,988 ) Payments of deferred financing costs (8,075 ) Net cash provided by financing activities 31,243 Net change in cash and cash equivalents (1,967 ) Cash and cash equivalents Beginning of year 23,880 End of year $ 21,913 Supplemental disclosures of cash flow information Interest paid $ 6,820 Income taxes paid $ 100 Supplemental noncash financing and investing activities Accrued capital expenditures $ 114 Warrants issued with debt agreement $ 10,197 The accompanying notes are an integral part of these consolidated financial statements. Table of Contents Enchanted Rock Holdings, LLC Notes to Consolidated Financial Statements December 31, 2024 1. NATURE OF OPERATIONS

Enchanted Rock Holdings, LLC (together with its consolidated subsidiaries, “ER Holdings” or “the
Company”) was formed and incorporated pursuant to the laws of the State of Delaware in 2018. The Company is subject to the terms of the Limited Liability Company Agreement (as amended and restated, the “LLC Agreement”) effective
July 1, 2018. The Company designs, deploys, sells, operates and maintains multi-purpose distributed generation power systems, consisting of proprietary, low emission, quick-response natural gas generated and embedded software technology, for
its customers.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements include the accounts of Enchanted Rock Holdings, LLC and its consolidated
subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated. All amounts presented in the
footnotes are in thousands, except number of common and preferred units and per common and preferred unit amounts unless otherwise stated.

Use of Estimates

The preparation of the consolidated financial statements in accordance with GAAP requires the use of estimates and assumptions
by management in determining the reported amounts of assets and liabilities, revenue and expenses and disclosures regarding contingent assets and liabilities. Actual results could differ from those estimates.

Regulation

The Company’s operations, including its wholesale transactions, transmission service, and compliance with state-mandated
reliability standards, are subject to the regulatory oversight of various state regulatory authorities including both the Public Utility Commission of Texas and the Electric Reliability Council of Texas as well as California Public Utilities
Commission. Failure to comply with laws and regulations established by such regulatory agencies could result in suspension or revocation of license required for the Company to conduct its business. The Company is not aware of any violations or
noncompliance with laws and regulations discussed above.

Revenue Recognition

The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting
Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, which requires revenue to be recognized when or as control of promised goods or services is transferred to customers in an amount that reflects the
consideration the Company expects to be entitled to in exchange for those goods or services.

Performance
Obligations

A performance obligation is a promise in a contract with a customer to transfer a distinct good or
service. The Company’s contracts generally include one or more of the following performance obligations:

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December

Power System Sales Revenues

• Power System Sales Product Revenues (Generators). The Company sells generators to commercial and
industrial customers. The Company generally recognizes product revenue from the sale of generators at a point in time when control is transferred to the customers. In certain
“bill-and-hold” arrangements where the customer requests the Company to warehouse the generator until the site is ready for installation, control transfers
when the generator is ready for physical transfer to the customer, as the Company has a present right to payment, the customer can direct the use of the generators (i.e. requests shipment to its facility), and legal title has passed to the customer.
Furthermore, the generator is identified separately as belonging to the customer, and the Company cannot use the generator or direct it to another customer.

• Power System Sales Installation Services Revenues . The Company provides installation services to
prepare, construct, and install distributed generation power systems designed to provide resiliency power for commercial and industrial customers. These service contracts can occur over several months or a multiyear period. The revenues through
service contracts are generated under fixed-price contracts with certain reimbursable variable costs. The Company recognizes revenues over time because the Company’s performance creates or enhances an asset that the customer controls as the
asset is created or enhanced. The Company measures progress using the cost-to-cost method (percentage of costs incurred to total estimated costs), as this best depicts
the transfer of value to the customer.

Ongoing Services Revenues

• Ongoing Services. The Company provides ongoing services to operate and maintain distributed generation
power systems designed to provide resiliency power for commercial and industrial customers. These services primarily consist of operations and maintenance (“O&M”) services and asset management services arrangements. The
Company’s ongoing services are generally stand-ready obligations satisfied over time. For fixed-fee arrangements, the Company recognizes revenue either (i) ratably over the contract term or
(ii) on an as-invoiced basis, applying the practical expedient to recognize revenue in the amount to which the entity has a right to invoice, if the entity has a right to consideration from a customer in
an amount that corresponds directly with the value to the customer of the entity’s performance completed to date (e.g. usage-based fees).

• Service-Type Warranty. The Company sells separately priced service-type warranties that provide
coverage beyond the standard manufacturer’s warranty. Revenues from these warranties are recognized ratably over the warranty period. For the year ended December 31, 2024, there was $0.9 million of service warranty revenues
recognized in the consolidated financial statements.

Contract Combination

In some instances, the Company enters into contracts that include Power System Product Sales, Power System Installation
Services, Ongoing Services, and/or Service-Type Warranties negotiated as a package and entered into at or near the same time with the same customer. The Company evaluates whether such contracts should be combined and accounted for as a single
contract when the criteria for contract combination are met. Although these products and services may be negotiated together and combined into a single contract, the Company has determined that they represent distinct performance obligations
services that are capable of being distinct and for which the customer can benefit independently. Accordingly, the Company accounts for these goods and services separately and allocates the transaction price to each based on their relative
standalone selling prices.

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Consolidated Financial Statements

December

Transaction Price and Variable Consideration

The Company allocates the transaction price to each distinct performance obligation based on relative stand-alone selling
prices. Stand-alone selling prices are based on observable prices when available; otherwise, the Company estimates stand-alone selling prices using an expected cost plus margin approach, applied consistently in similar circumstances.

Variable consideration amounts, including performance incentives, early pay discounts, and penalties, may also cause changes
in contract estimates. The amount of variable consideration is estimated based on either the expected value method or the most likely amount method, depending on which method the Company expects to better predict the amount of consideration to which
it will be entitled. The estimated amount is constrained such that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur once the uncertainty is resolved.

Certain of the Company’s contracts for Ongoing Services include variable consideration in the form of a profit-sharing
arrangements that entitles the Company to receive a share of monthly positive cash flows. The performance fees related to these arrangements are generally constrained.

Contract Estimates and Modifications

Due to the nature of fixed-price Installation Services contracts, costs can vary from estimates due to factors such as scope
changes, unforeseen conditions, or material cost fluctuations that will directly impact revenue recognized each period. Changes in estimates are recognized on a cumulative catch-up basis in the period in which
the revisions are made. For the period presented, the amount of revenue recognized in the current period from performance obligations satisfied (or partially satisfied) in prior periods was not material.

On occasion, the Company approves change orders that modify the scope and price of a contract and accounts for those change
orders as follows:

• If the change order adds distinct goods or services and those goods and services are priced at standalone
selling prices, it is accounted for as a separate contract.

• If the change order is not distinct (e.g., additional installation work), it is accounted for as part of the
existing contract, and the effect on the transaction price and measure of progress is recognized as a cumulative catch-up adjustment to revenue.

Contract Balances & Payment Terms