Electro Optic Systems Holdings (ASX:EOS) said non-executive director Robert Nicholson did not have inside information and did not violate its trading policy when he executed an on-market purchase of the company's shares on March 30, according to a Thursday filing with the Australian bourse.

Responding to a query from the exchange, the company said its secretary forwarded Nicholson's request to trade to the CEO and CFO within 15 minutes of receiving it, satisfying the requirements of its trading policy.

Electro Optic Systems added that when its executives approved the trade, they were not aware of an announcement that was subsequently made, which included a $7 million contract with Northrop Grumman and an update on a separate award.

"These matters were not disclosed in papers previously provided to the board generally or to Mr. Nicholson," the company said, noting that the announcement in question "was only drafted after the trade had been effected, and finalized in the morning of Tuesday, 31 March 2026."

Electro Optic Systems' shares fell almost 2% in recent Friday trade.