We are Short Electro Optic Systems Holdings Ltd $EOS.AX
Our new report “EOS Behind the Hype: Unmasking the Dark Reality of the Mysterious Korean Contract” can be found here: grizzlyreports.com/eos/
Electro Optic Systems Holdings Ltd EOS.AX is an Australian developer and manufacturer of advanced electro-optic systems, including remote weapon systems, surveillance and fire control systems for military customers. EOS’s stock price doubled in mid-December 2025 on the back of the announcement of a major contract with an anonymous Korean counterpart. Investors see this contract not only as validation, but also as a major contributor to EOS’ revenue growth going forward.
While investors are speculating about the identity of the big Korean counterpart to this contract, we found proof in local Korean media articles that the counterpart is a company called “Goldrone Co., Ltd”.
A closer look at Goldrone makes us believe that the contract announcement is intentionally misleading and utterly unrealistic.
Goldrone is a tiny agricultural drone company that seems to lack the resources to buy US$80 million worth of products and services from EOS.
Our research into Goldrone shows that:
- Revenue peaked at US$476,000 in 2018 while incurring a US$400,000 net loss.
- The company seems to have only three employees and operates out of a restaurant complex.
- Goldrone business activity and announcements have died down over the years after multiple failures, leaving the impression of a currently defunct business.
- Goldrone is currently attempting to raise around US$343,000 to stay afloat.
We find the statements that $EOS.AX made in the investor call dedicated to the new Korean contract announcements aggressively misleading, and sometimes bordering on outright lies.
Amongst other things EOS management stated on the investor call regarding the acquisition that “in most defense deals, the counterpart does not want to be nominated” and that “for the time being, they asked us to keep silent, keep it confidential and we respect it”. Goldrone is neither a defense company nor does Goldrone appear to be coy about the agreement, as Goldrone itself made a detailed public announcement about this contract and it was covered in local Korean media.
$EOS.AX was previously investigated and recently fined by Australian regulators for shoddy disclosures. EOS seems to have been under pressure to deliver tangible progress to investors and EOS sold its apparently only profitable business unit in 2024 and losses are mounting.
Our research in the acquisition of MARSS by $EOS.AX in January 2026 uncovers a multitude of issues. We believe management has lied about past revenues and is misrepresenting the economic opportunity of this acquisition.
We find the sizable contract announcements of $EOS.AX during 2025 highly questionable and management’s statements about them misleading.
In conclusion, we see a dishonest management team that will soon fail under the pressure of its own lies and worsening financials.
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