Grizzly Research's new critical investigative research report on Electro Optic Systems Holdings Ltd (ASX:EOS).
- Electro Optic Systems Holdings Ltd (ASX: EOS) 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 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 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 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 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.
Introduction
Electro Optic Systems Holdings Limited (EOS), listed on the Australian Securities Exchange (ASX: EOS), specializes in designing, manufacturing, and exporting electro-optic systems for the global defense and space domains.
EOS financials have seen mounting pressure since EOS sold its only profitable business unit “EM Solutions” in 2024.
Source: Compiled from company sources/filings
Luckily for EOS, the company was able to secure an US$80 million contract with an anonymous Korean counterpart, which EOS proudly announced on December 15th, 2025. Investors seemed ecstatic as EOS stock price went up 50% on the two days following the announcement and approximately 100% over the next three weeks.
The identity of the Korean counterpart has been subject to investor speculation and was never officially disclosed by EOS. We identified the Korean counterpart as Goldrone Co., Ltd, a tiny company that seems to completely lack the resources to fulfill such an agreement. In light of our findings, we conclude that the Korean contract is but a smoke and mirrors show to mislead investors.
This is not the first time that EOS seems to have been dishonest as they were recently fined by Australian regulators over disclosure matters.
We also question the latest acquisition announced in January 2026 which is deserving of further scrutiny by investors and regulators.
Read the full report here by Grizzly Research
