MOSCOW, April 21, 2008 (PRIME NEWSWIRE) -- NNRF, Inc. (Pink Sheets:NNRI) filed its 10K annual report on April 15, 2008. The report includes the audited financial statements of NNRF Inc. and the management discussion and analysis covering corporate activities for the fiscal year ended December 31, 2007.
NNRF, Inc. previously reported that the company would begin equity accounting for its proportionate interest in ZAO ATOLL (ATOLL) as of December 31, 2007. Accordingly, in its consolidated income statement for the fiscal year ended December 31, 2007, NNRF recorded $5,662,717 as its proportionate share of ATOLL's net income for ATOLL's fiscal year ended December 31, 2007. NNRF, Inc. owned 13.75% of ATOLL during the first quarter ended March 31, 2007 and 50% of ATOLL thereafter. During the fiscal years ended December 31, 2007 and 2006, income recognized from the Company's investment in ATOLL was $5,662,717 and $39,780, respectively. The increase is related to the increased ownership in ATOLL and an increase in ATOLL's net income.
The 10K report includes a description of ATOLL's operations for 2007 including reference to ATOLL's gross revenue for 2007 of $43,123,001. This number is lower than amounts that were previously reported for Q1, Q2 and Q3 due to a change in accounting procedures related to long term contracts and an extension of a single significant contract from 24 months to 36 months. This difference came about as a result of our US auditors participation in the annual audit of ATOLL in Moscow, which resulted in a correction in the method of application of US GAAP accounting standards for long term contracts. Additionally, this correction in method of application of US GAAP accounting standards resulted in higher than previously reported net income margins for ATOLL's fiscal year ended December 31 2007. A portion of the revenues previously reported in the quarterly reports related to this long term contract will now be recorded in 2008 and 2009. ATOLL's audited net income remained in line with previously reported quarterly amounts.
As of December 31, 2007, NNRF has been a public operating Company for approximately 18 months. The Company is pleased that its cash investment of approximately $2 million in ATOLL has generated income to the company of approximately $5.6 million in this period. Additionally, the Company expects to be reporting revenue related to its technologies in the first half of 2008. NNRF believes that these positive results are an affirmation that the Company is successfully executing its business plan.
For further information, please refer to the Company's annual report, available at http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=5866031-1107226737&type=sect&TabIndex=2&companyid=113147&ppu=%252fdefault.aspx%253fcik%253d1175860.
ABOUT NNRF:
NNRF is a U.S. corporation with executive and operations offices in Moscow, Russia; Munich, Germany and North America. NNRF, through its Russian based partners offers design and manufacturing of specialized products for nuclear reactors and nuclear waste management; proprietary nuclear shielding, decommissioning and decontamination technologies; and engineering/design services for a range of environmental challenges. NNRF's management team has extensive industry and government service including extensive in-house expertise in all aspects of radiological protection and radiological waste management.
SAFE HARBOR STATEMENT:
Statements in this press release that are not historical facts are forward-looking statements, including statements regarding announcements of financial results, business potential and other prospective presentations by NNRF. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, our ability to obtain additional financing that will allow us to continue our current and future operations and whether demand for our products in domestic and international markets will continue to expand. NNRF undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in NNRF's expectations with regard to these forward-looking statements or the occurrence of unanticipated events.