CybAero publishes Annual Report 2015 with the auditor's report that differs from the standard form

CybAero has published the annual report for 2015, it is now available on the
company website, as well as attached as a PDF in this release.

The audit report differs from the standard design and has been submitted May
11th2016. 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 auditors are the following
(quotes from the audit report): ”The asset Receivables from buyers in the
balance sheet amounts to SEK 45.6m. The previous year, the receivable was SEK
43.6m. As can be read from the Directors´ report the development of the systems
as well as the upgrades asked for from the customers have caused a delay in
excess of one year. Furthermore, it can be read from the Directors´ report that
the final tests shall be performed in early 2016. These circumstances are in our
opinion of relevance for the valuation of the asset as they have led payments
related to the receivable to be outstanding and in our opinion it cannot be
eliminated that the circumstances ultimately may mean that the customer will
deny, in whole or in part, the obligation to pay the receivable. Due to this
there is a need for a write-down of Receivables from buyers. The size of the
write-down is difficult to assess, but in our opinion the amount is material.”

”Capitalized expenditure for research and development in the balance sheet
amounts to SEK 46.5m per December 31, 2015. One of the criteria for recognizing
such expenditure as an asset is that there are sufficient financial resources at
hand in order to realize the expected economic benefits of the intangible asset.
As a consequence of the uncertainty associated with the payment of systems in
combination with the fact that additional financing of sufficient size is not at
hand and the negative earnings, we conclude that the capitalized expenditure for
research and development in the balance sheet is not accounted for in compliance
with the Annual Accounts Act. Furthermore, a charge should have been made in the
income statement with an amount equal to the write-down”.

The Board believes that the value of the recorded account receivable is correct
and that the customer will pay for the delivery of the systems. Furthermore, the
Board believes that the value of capitalized development costs can be justified
in the light of the existing framework agreement with the client as well as a
significantly increased interest from the market for its products. The Board
believes that the audit report does not present any significant impact on the
company's ability to future financing.
For more information, please contact:
Mikael Hult, CEO CybAero AB, phone: +46 (0)13-465 29 00 email:
mikael.hult@cybaero.se

Web: www.cybaero.se        Videos: www.youtube.com/cybaero
About CybAero
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.