CybAero publishes Annual Report 2016 with the auditor’s report that differs from the standard form
CybAero has published the annual report for 2016, it is now available on the company website, as well as attached as a PDF in the release.
The audit report differs from the standard design and has been submitted June 8th 2017. The auditors reject that the statement and balance sheets are adopted, but recommends discharge from liability for the Board members and the CEO.
The motive for the unclean audit report, according to the auditors are the following (quotes from the audit report):
“In our opinion, due to how significant the circumstance described under Basis for opinions is, the annual accounts have not been prepared in accordance with the Annual Accounts Act and do not present fairly the financial position of Cybaero AB as of December 31, 2016 and its financial performance for the year then ended in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts.”
“The company reports receivables from buyers in the amount of SEK 48.3 (45.6) million. The statutory administration report states that delivery projects have been delayed and incurred higher costs due to ongoing activities in development, testing, system integration and delivery preparations. The final factory tests planned for 2016 are still not complete. These circumstances are material for assessing the value of this asset item and it cannot be ruled out that the client will call into question its obligation to pay in full or in part. The receivables from buyers item is therefore impaired. It is difficult to assess the impairment amount, but we estimate it is significant.”
“In addition, capitalized expenditure for research and development was recognized at a value of SEK 40.0 (46.5) million. The economic conditions for realizing expected benefits must be established for capitalization to be permitted. We believe that these expenses are no longer eligible for recognition in the balance sheet as a result of the uncertainty surrounding payment for the receivables from buyers item combined with insufficient financing and negative financial performance. As a result, this balance sheet item is impaired by SEK 40.0 million and is not reported in accordance with the Swedish Annual Accounts Act. An amount corresponding to the impairment loss should have been charged to the income statement.”
“The statutory administration report states that the company needs to raise capital. There is significant uncertainty regarding the company’s ability to continue as a going concern given that financing had not yet been secured at the time of submission of this auditor's report.”
On the basis of the company's current business plan, the board estimates that a planned bridge loan, expected client payments and additional planned financing cover the company’s capital needs for the coming twelve-month period.
ACC Group AB submitted a demand letter for late payment fees in relation to the demonstration system in 2017. CybAero has disputed this claim.
Michael Auerbach, Chairman of the Board
Telephone: 013-465 29 00
This information is information that CybAero AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 21:00 CET on June 8th 2017.
CybAero develops and manufactures Remotely Piloted Aircraft Systems (RPAS) for safer and more effective aerial operations in various environments, including those hazardous in nature. The company has made a great international impact with its APID One helicopter, which can be adapted for both military and civilian applications such as coastal and border surveillance, search and rescue missions, and mapping. CybAero’s head office is located in the Mjärdevi Science Park in Linköping, Sweden. The company has around 50 employees and has been listed on the Nasdaq First North since 2007. FNCA Sweden AB is the company's certified adviser.