EOS agrees to pay $4m penalty over 2022 disclosure breach

The news: Electro Optic Systems (EOS) has agreed to pay a $4 million penalty handed down by the Australian Securities and Investments Commission for breaching its continuous disclosure obligations by not disclosing a materially significant revenue decline in 2022.

The numbers: The counterdrone maker initially issued 2022 revenue guidance of $212.3 million between May and June 2022, before becoming aware in July of that year that it was likely to be $164 million, with a possible extra $27 million. This update was not disclosed until 14 weeks later on 31 October 2022.

The context: A statement released to the ASX after market close on Wednesday said the Federal Court handed down its judgment on Wednesday, determining that the appropriate penalty was $4 million and made orders for payment by EOS.

The company agreed to pay the penalty and ASIC’s costs.

Separate to this case, EOS in March 2026 also had to update its continuous disclosure policy after the ASX found that a conditional high energy laser contract announced in December 2025 “failed to adequately describe market sensitive information”.