"EOS should be a classic business case of what not to invest in" – I can't work out whether this is humorous irony or bitter irony. But perhaps you haven't followed EOS for very long and so aren't aware of recent history. Here is a highly abbreviated potted recent history, omitting the autonomous optical-sensing robots.
As of 2018, EOS consisted of three business units: Defence, Space, a research arm covering research in both defence and space arenas. Defence, with the RWS, was the only profitable unit and subsidised the operation of the other two units.
In 2019, EOS acquired EM Solutions, a profitable business that was immediately accretive to EOS' revenue.
In 2019, EOS also made a "breakthrough" development in the Space division by re-engineering the adaptive optics technology used to astronomers to correct atmospheric disturbance of incoming light from space to also correct outgoing light from Earth-based laser emitters. This paved the way for laser-optical communications at 20x the bandwidth of radio channels using only 0.1% of the power normally required to communicate with satellites by laser.
By the end of 2019, EOS decided to embark on an ambitious project to utilise these developments and leverage its research satellite to prove and develop a Space Communications division.
During 2020 and 2021, EOS committed itself totally to developing a network of medium-Earth orbit satellites to provide instant, full-time, global network coverage using laser technology for both ground/space and space/space communication links. The vision was immense. But EOS could not engage sufficient interest from technology partners, customers or vendors.
By 2022, it was clear that not only could Spacelink never be a success, EOS had sunk every last bit of its financial and intellectual capital into the venture. Hovering on the brink of disaster the previous board and management resigned and the company had to accept whatever ruinous terms were imposed on it by financiers in order to remain solvent.
So basically what you're invested in today is the smoking, battered remnant of what EOS was only four years ago. This is not a shining phoenix rising rejuvenated from the ashes of a previous life. It's a limping, crippled invalid desperately trying to recover and rehabilitate from the injuries it sustained in a corporate car crash. It will be years still before it can recover, if it ever can. All eggs are in the Defence division at the moment, and all those Defence eggs are in the RWS basket. If RWS can't gain traction – and it has been trying for a decade now without ever approaching anything like "mainstream" status – then EOS is basically done.
"EOS should be a classic business case of what not to invest in" – I wholeheartedly agree.
EOS Price at posting:
$1.60 Sentiment: Hold Disclosure: Held
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