Electro Optic Systems Holdings (ASX:EOS) rejected the conclusions contained in a report released by Grizzly Research, according to a Tuesday filing with the Australian bourse.

On Feb. 6, Grizzly Research said the company's stock price doubled in December 2025, following the disclosure of an $80 million contract with an anonymous Korean counterpart, which Grizzly identified as a company called Goldrone.

The research firm claimed that the contract announcement was "intentionally misleading and utterly unrealistic," describing Goldrone as a "tiny" agricultural drone company that appears to lack the resources needed to fulfill the contract.

Electro Optic Systems said the report was published without any prior inquiry, and has a "significant" adverse effect on its share price.

The change in share price to AU$11.02 on Jan. 13 from AU$1.31 on Jan. 2, 2025, were due to a wide range of factors, including global macroeconomic conditions and changes in technology, the company said.

Goldrone is a legal entity with "modest financial capacity," and it is common for conditional contracts to mature in stages over time, the company added.

The company said it has signed a conditional contract for $80 million to become effective if Goldrone pays a deposit of about $18 million and provides the company with a letter of credit for the remaining amount due.

Shares of Electro Optic Systems fell 1% in recent Tuesday trade.