In connection with the Company’s IPO, all outstanding Series A Preferred Units converted into Class A units of ER Holdings (“Class A Units”) or Class B units of ER Holdings (“Class B Units”) dependent upon the holder of the original units. At June 30, 2026, there are no outstanding Series A Preferred Units.

At December 31, 2025, 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:


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

During 2025, in connection with the issuance of 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.

The Series A Preferred Units are classified as mezzanine equity and are recorded at their maximum redemption value at each reporting date, with changes recognized as deemed preferred dividends.

For the three months ended June 30, 2026 and 2025, the Company recorded deemed preferred dividends of $0.7 million and $0.8 million to adjust the carrying value of the Series A Preferred Units to their full redemption value. For the six months ended June 30, 2026 and 2025, the Company recorded deemed preferred dividends of $1.5 million and $1.5 million to adjust the carrying value of the Series A Preferred Units to their full redemption value.

The rights and preferences of the Series A Preferred Units, including distribution waterfall, conversion, anti-dilution, and redemption mechanics, are described in the Company’s consolidated financial statements for the year ended December 31, 2025 included in the Prospectus.