“We are 100% confident that the backlog is fake,” the short report reads. 

Iceberg claims that Eos failed to inform investors that Brideglink had its assets foreclosed. Iceberg states that 62% of Eos’s backlog is attributable to Bridgelink.

“This unsettling practice persists till today. One customer,  Bridgelink Commodities, accounts for half of EOS’s backlog by MWh or ~62% ($331 million) of its total dollar value,” Iceberg’s report reads. “The relationship with Bridgelink began in March 2022 with an initial order of up to 500 MWh, and later in June 2022, the contract was enlarged to 1 GWh.”

Price Action: Eos opened the day trading at around $3.60 a share. Then, at 12:00 pm ET when the short report came out, the stock dropped to a low of $1.24, more than 70% off its open price. Since then, the stock has rebounded slightly and is currently trading around $2.70 a share.