As expected, the German Financial Reporting Enforcement Panel (FREP) has identified an accounting error for the 2017 financial year. Specifically, this relates to the following violations of applicable accounting standards in the annual financial statements of the company as of 31 December 2017:

1. The management report of the company for the 2017 financial year is incorrect in several respects: the presentation and analysis of the earnings situation is not appropriate, the risk report is not complete and the revenue amount of EUR 13 million forecast for the 2018 financial year is overstated by more than 95%.

2. The recoverability of the goodwill of EUR 21.2 million – resulting from the merger with STARAMBA GmbH in 2016 – recognized in the financial statements of the Company as of 31 December, 2017 could not be proven.

3. The information in the notes in connection with a capital increase of EUR 3,6 million and the presentation of the effects of the transaction on the financial position of STARAMBA SE are not appropriate.

The Managing Director and Administrative Board of NEXR Technologies SE have agreed to the FREP’s error detection. Following this declaration of consent, the Federal Financial Supervisory Authority (BaFin) was informed of the final examination result of the FREP in accordance with Section 342b (6) Sentence 1 No. 3 HGB. In addition, the Company will publish the error findings in the Federal Gazette in coordination with BaFin.

Furthermore, the corresponding accounting errors have already been taken into account in the 2018 annual financial statements. The 2018 annual financial statements of STARAMBA SE (now trading under the name NEXR Technologies SE) have been certified by the auditor. The determination of the errors does not affect sales and earnings for the current fiscal year.