<PAGE>

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)
[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended:            March 31, 2000
                                        ----------------------------------------
                                       OR
[ ]      TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the transition period from:  _________________ to _________________

Commission file number:                   000-25855
                       ---------------------------------------------------------

                              CVI Technology, Inc.
--------------------------------------------------------------------------------
                     (Exact name of small business issuer as
                            specified in its charter)

               Nevada                                    91-1696010
-----------------------------------               ------------------------------
   (State or other jurisdiction of                     (IRS Employer
    incorporation or organization)                   Identification No.)

                  6830 Spencer Street, Las Vegas, Nevada 89119
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (702) 733-7195
--------------------------------------------------------------------------------
                           (Issuer's telephone number)

                           Casinovations Incorporated
--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

         Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.

        YES [X]   NO [ ]

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

         Check whether the registrant filed all documents and reports required
to be filed by Section 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by court.

        YES [ ]   NO [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

         State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:



    10,746,144 shares of common stock, $.001 par value, as of April 20, 2000
--------------------------------------------------------------------------------

         Transitional Small Business Disclosure Format (check one);

        YES [ ]   NO [X]

<PAGE>

                                   FORM 10-QSB

                                TABLE OF CONTENTS


                                                                           PAGE
                                                                          NUMBER
                                                                          ------

PART I.  FINANCIAL INFORMATION

     Item 1.      Financial Statements                                       3

                  Balance Sheet                                              3

                  Statement of Operations                                    4

                  Statement of Cash Flows                                    5

                  Notes to Financial Statements                              6

     Item 2.      Management's Discussion and Analysis of
                  Financial Condition and Results of Operations              7

PART II. OTHER INFORMATION

     Item 1.      Legal Proceedings                                          13

     Item 2.      Changes in Securities and Use of Proceeds                  13

     Item 3.      Defaults Upon Senior Securities                            13

     Item 4.      Submission of Matters to a Vote of Security Holders        13

     Item 5.      Other Information                                          13

     Item 6.      Exhibits and Reports on Form 8-K                           14

SIGNATURE                                                                    15

EXHIBIT INDEX                                                                16

                                      -2-
<PAGE>

PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

<TABLE>
                                     CVI TECHNOLOGY, INC.
                                        BALANCE SHEET

<CAPTION>
                                                          (UNAUDITED)
                                                            March 31,     December 31,
                                                              2000            1999
                                                         -------------    -------------
<S>                                                      <C>              <C>
                       ASSETS
Current assets:
   Cash and cash equivalents                             $    181,870     $  1,169,924
   Accounts receivable, trade                               1,420,072          150,074
   Other receivables                                           26,984          192,794
   Inventories                                              1,727,840        1,642,195
   Prepaid expenses                                            89,611          290,921
                                                         -------------    -------------
     Total current assets                                   3,446,377        3,445,908

Property and equipment, including revenue producing
   equipment, at cost, net of accumulated depreciation
   of $718,174 and $532,797                                 2,703,489        2,851,637

Intangible assets, at cost, net of
   accumulated amortization of $67,384 and $60,268            231,318          212,438
Deferred interest                                             661,833          611,119
Deposits                                                      583,576          507,823
                                                         -------------    -------------
                                                         $  7,626,593     $  7,628,925
                                                         =============    =============
        LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Current portion of leases payable                     $  1,478,587     $  1,266,631
   Accounts payable                                         1,013,868          853,062
   Accrued expenses                                           429,018          354,865
   Accrued interest                                            78,584           95,209
   Current portion of stockholder loans                       108,499          105,130
   Convertible debt                                           200,000                -
   Customer deposits                                          168,633          171,068
                                                         -------------    -------------
     Total current liabilities                              3,477,189        2,845,964

Leases payable                                              2,962,444        2,480,394
Convertible debt                                            1,500,000        1,500,000
Stockholder loans                                             161,350          190,277
                                                         -------------    -------------
     Total liabilities                                      8,100,983        7,016,635

Stockholders' equity:
   Common stock, $.001 par value,
     40,000,000 shares authorized, 10,746,144 shares
     and 10,746,144 shares issued and outstanding,
     respectively                                              10,746           10,746
   Additional paid-in capital                              16,956,363       16,956,363
   Deficit accumulated during development stage           (17,441,498)     (16,354,821)
                                                         -------------    -------------
     Total stockholders' equity                              (474,389)         612,289
                                                         -------------    -------------
                                                         $  7,626,593     $  7,628,925
                                                         =============    =============
</TABLE>

            See accompanying notes to unaudited financial statements.

                                      -3-
<PAGE>

                              CVI TECHNOLOGY, INC.
                             STATEMENT OF OPERATIONS
                   THREE MONTHS ENDED MARCH 31, 2000 AND 1999
                                   (UNAUDITED)


                                                        Three Months Ended
                                                    March 31,        March 31,
                                                      2000             1999
                                                  -------------    -------------

Sales                                             $  1,367,961     $     15,500
Rental income                                          323,979           46,520
Other Income                                            17,894            7,054
                                                  -------------    -------------
                                                     1,709,834           69,074

Cost of sales                                        1,265,422            5,745
                                                  -------------    -------------
Gross margin                                           444,412           63,329

General and administrative                             935,646        1,086,838
Research and development                               380,970           69,661
                                                  -------------    -------------
(Loss) from operations                                (872,201)      (1,093,170)

Interest expense, net                                  171,861           78,448
Interest expense - related parties                      42,615           45,262
                                                  -------------    -------------
                                                       214,476          123,710
                                                  -------------    -------------
(Loss) before income taxes                          (1,086,677)      (1,216,880)
Provision for income taxes                                   -                -
                                                  -------------    -------------

Net income (loss)                                 $ (1,086,677)    $ (1,216,880)
                                                  =============    =============

Basic earnings (loss) per share                   $      (0.10)    $      (0.17)
                                                  =============    =============

Weighted average shares outstanding                 10,749,144        7,253,547
                                                  =============    =============

            See accompanying notes to unaudited financial statements.

                                      -4-
<PAGE>

<TABLE>
                                                CVI TECHNOLOGY, INC.
                                              STATEMENTS OF CASH FLOWS
                                     THREE MONTHS ENDED MARCH 31, 2000 AND 1999
                                                    (UNAUDITED)
<CAPTION>

                                                                         Three Months Ended
                                                                  --------------------------------
                                                                  March 31, 2000    March 31, 1999
                                                                  --------------    --------------
<S>                                                               <C>               <C>
Net (loss)                                                        $  (1,086,677)    $  (1,216,880)
   Adjustments to reconcile net income (loss) to net
     cash provided by operating activities:
     Depreciation and amortization                                      192,493            44,527
     Amortization of deferred interest                                   85,968            35,176
   Changes in assets and liabilities:
     (Increase) decrease in trade accounts receivable                (1,269,998)          (61,744)
     (Increase) decrease in other receivables                           165,810                 -
     (Increase) decrease in inventory                                   (85,645)         (354,743)
     (Increase) decrease in prepaid expenses                            201,310             5,543
     (Increase) decrease in other assets                                      -           (30,451)
     Increase (decrease) in accounts payable                            160,806          (297,975)
     Increase (decrease) in accrued expenses                             57,528            47,288
     Increase (decrease) in customer deposits                            (2,435)                -
                                                                  --------------    --------------
       Total adjustments                                               (494,163)         (612,379)
                                                                  --------------    --------------
Net cash (used in) operating activities                              (1,580,839)       (1,829,259)
                                                                  --------------    --------------
Cash flows from investing activities:
   Acquisition of plant and equipment                                   (44,345)         (211,569)
   Equipment produced and held for rental                                     -                 -
   Increase in patents and trademarks                                   (18,881)           (3,550)
   Deposits                                                             (75,754)                -
                                                                  --------------    --------------
Net cash (used in) investing activities                                (138,980)         (215,119)
                                                                  --------------    --------------
Cash flows from financing activities:
   Common stock sold for cash                                                 -         1,210,523
   Repayment of shareholder loans                                       (25,558)         (150,000)
   Proceeds from leases payable                                         841,465           295,182
   Repayment of leases payable                                         (284,141)         (109,111)
   Proceeds from convertible debentures                                 200,000         1,900,000
   Repayment of notes payable                                                 -            (3,375)
                                                                  --------------    --------------
Net cash provided by financing activities                               731,766         3,143,219
                                                                  --------------    --------------
Increase (decrease) in cash                                            (988,053)        1,098,841
Cash and cash equivalents, beginning of period                        1,169,924           200,749
Cash and cash equivalents,
   end of period                                                  $     181,871     $   1,299,590
                                                                  ==============    ==============
</TABLE>

            See accompanying notes to unaudited financial statements.

                                      -5-
<PAGE>

                              CVI TECHNOLOGY, INC.
                          Notes to Financial Statements
                                   (Unaudited)


NOTE 1 - BASIS OF PRESENTATION.

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions incorporated in Regulation 10-SB of the Securities and
Exchange Commission. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring adjustments and accruals) considered necessary for a fair
presentation have been included.

The results of operations for the periods presented are not necessarily
indicative of the results to be expected for the full year. The accompanying
financial statements should be read in conjunction with the Company's audited
financial statements for the year ended December 31, 1999, as included in the
Company's Annual Report on Form 10-KSB as filed with the Securities and Exchange
Commission on March 30, 2000.

Certain reclassifications have been made to amounts presented in prior periods
for comparability to the current period presentation.

Basic loss per share was computed using the weighted average number of common
shares outstanding.

NOTE 2 - STATEMENT REGARDING COMPUTATION OF LOSS PER SHARE.

Fully diluted loss per share excludes any dilutive effects of options, warrants
and convertible securities. Fully diluted loss per share is not presented
because the effect would be anti-dilutive.

NOTE 3 - CONVERTIBLE DEBT.

The Company received proceeds of $200,000 from the placement of a convertible
note in the first quarter of 2000. The Convertible Note is with VIP's
Industries, Inc., an entity controlled by the Chairman of the Board of the
Company. The debt accrues interest until its maturity on June 1, 2000, at 10%
per annum, and is convertible into restricted shares of Common Stock after May
1, 2000 at a rate of $2.75 per share.

NOTE 4 - EQUIPMENT FINANCING.

For the three months endings March 31, 2000, the Company received proceeds of
$830,000 from a third-party leasing company through which the Company has
financed most of its furniture, equipment, and tooling.

                                      -6-
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS.

STATEMENT ON FORWARD-LOOKING INFORMATION

         Certain information included herein contains statements that may be
considered forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of
the Securities Exchange Act of 1934, as amended (the "Exchange Act"), such as
statements relating to plans for future expansion, capital spending, future
operations, sources of liquidity and financing sources. Such forward-looking
information involves important risks and uncertainties that could significantly
affect anticipated results in the future, and accordingly, such results may
differ from those expressed in any forward-looking statements made herein. These
risks and uncertainties include, but are not limited to, those relating to
liquidity requirements for the Company, the continued growth of the gaming
industry, the success of the Company's product-development, marketing and sales
activities, vigorous competition in the gaming industry, dependence on existing
management, gaming regulations (including actions affecting licensing and
product approvals), leverage and debt service (including sensitivity to
fluctuations in interest rates), issues related to the Year 2000, domestic or
global economic conditions, and changes in federal or state tax laws or the
administration of such laws.

OVERVIEW

         The Company's primary business is the development, manufacturing and
marketing of various gaming concepts and products that increase the security,
productivity and profitability for the global gaming industry.

         From inception, the Company has been a "Development Stage Company"
performing research and development, product prototyping, field testing of
products, development of manufacturing capabilities, inventory acquisition,
development of distribution channels, staffing and obtaining a building with
sufficient capacity to house future growth. In the first quarter of 2000, the
Company had sufficient sales development and revenue growth such that the
Company is considered an operating company.

         As of March 1, 2000, the Company had placed 456 Random Ejection
Shufflers(TM) (the "Shufflers") under rental contracts. The Company has the
majority of the parts required to build an additional 600 Shufflers.
Additionally, the Company has shipped 12,220 units of its SecureDrop(TM)
products. The Company believes that customer interest in both the Shuffler and
SecureDrop(TM) products continues to be very strong.

         The following discussion summarizes the Company's results of operations
for the three months ended March 31, 2000 and 1999 and the Company's liquidity
and capital resources.

RESULTS OF OPERATIONS

     THREE MONTHS ENDED MARCH 31, 2000 AND 1999

         REVENUES. For the three months ended March 31, 2000, the Company
generated total revenues of $1,709,834 compared to $69,074 for the three months
ended March 31, 1999. The revenues for the three months ended March 31, 2000,
consisted of Shuffler rentals of $261,377, Shuffler sales of $280,635,
SecureDrop(TM) sales of $1,087,326 table game rentals of $60,442, and other
sales of $20,054. The Company believes revenue will continue to increase through
additional SecureDrop(TM) sales, projected increases in the number of Shuffler
sales through international distributors and continued placement of Shufflers
for rent.

                                      -7-
<PAGE>

         COST OF SALES. For the three months ended March 31, 2000, the cost of
sales was $1,265,420, compared to $5,745 for the three months ended March 31,
1999. The cost of sales for the three months ended March 31, 2000, consisted of
approximately $676,143 for SecureDrop(TM), $98,560 for depreciation expense
associated with the Shufflers held for rental, $281,338 for costs related to
servicing the Shufflers held for rental, $96,305 for costs related to sales of
the Shuffler, and $113,076 for labor and other manufacturing costs in excess of
the Company's estimated total manufacturing costs. The increase in cost of sales
was due to the increase in Shuffler sales and rentals and SecureDrop(TM) sales.

         SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. For the three months
ended March 31, 2000, selling, general and administrative expenses decreased
approximately $151,192, or approximately 14%, to $935,646, compared to
$1,086,838 for the three months ended March 31, 1999. For the three months ended
March 31, 2000, selling, general and administrative expenses included: salaries
and related costs of $390,422; advertising and marketing services of $26,667;
gaming industry show costs of $185,960; travel and entertainment costs of
$72,036; printing and office expenses of $63,877; depreciation and amoritization
of $47,906; office rent and utilities of $84,416; legal expenses of $36,928; and
$27,434 in other miscellaneous expenses.

         INTEREST EXPENSE. For the three months ended March 31, 2000, the
Company incurred interest expenses, net of interest income, of $214,476 compared
to $123,710 for the three months ended March 31, 1999. This increase was
primarily attributable to the increased borrowings by the Company.

         NET INCOME (LOSS). For the three months ended March 31, 2000, the
Company had a net loss of $1,086,677, compared to a net loss of $1,216,880 for
the three months ended March 31, 1999. The decrease in net loss was primarily
due to continued development of the Company's customer base and the introduction
of the SecureDrop(TM) product line. Basic loss per share was $0.10, based on
10,749,144 weighted average shares outstanding, for the three months ended March
31, 2000, compared to $0.17, based on 7,253,547 weighted shares outstanding, for
the three months ended March 31, 1999.

LIQUIDITY AND CAPITAL RESOURCES

         OVERVIEW. As a result of the Company's efforts to transition from a
development stage company to an operating company, it has generated cash flow
deficits from operations, including cash used in operating activities of
$1,580,839 and $1,829,259 in the three months ended March 31, 2000 and 1999,
respectively. In addition, to fund its development activities, the Company used
cash in investing activities of $138,980 and $215,119 in the three months ended
March 31, 2000 and 1999, respectively. Consequently, the Company has been
substantially dependent on cash from financing activities to fund development
and operating activities, receiving cash from financing activities of $731,766
and $3,143,219 in the three months ended March 31, 2000 and 1999, respectively.
The Company will continue to require cash from financing activities for both its
current operating needs and to fund its anticipated expansion into non-gaming
areas until operations begin to generate sufficient cash flow to provide for
such cash requirements.

         WORKING CAPITAL. At March 31, 2000, the Company had cash, cash
equivalents and investments of $181,870, compared to $1,169,924 at December 31,
1999. At March 31, 2000, the Company's working capital was ($30,811), compared
to $599,944 at December 31, 1999. At March 31, 2000, the Company's current
ratio, I.E. the ratio of current assets to current liabilities, was .99 compared
to 1.21 at December 31, 1999. Until the Company's normalized cash flows from
operations are achieved, the Company will be relying upon existing cash
balances, accounts receivables, institutional sources of debt and equity capital
for working capital purposes.

                                      -8-
<PAGE>

         CASH FLOW. For the three months ended March 31, 2000, net cash used in
operating activities was $1,580,839, compared to $1,829,259 for the three months
ended March 31, 1999. Cash used in operating activities during the three months
ended March 31, 2000, is net of depreciation and amortization of $278,461,
compared to $79,703 for the three months ended March 31, 1999 and reflects
increases in accounts receivable of $290,772, compared to $61,744 for the three
months ended March 31, 1999; increases in inventory of $85,645, compared to
$354,743 for the three months ended March 31, 1999; a decrease in prepaid
expenses of $201,310, compared to a decrease of $5,543 for the three months
ended March 31, 1999; increases in other receivables of $813,416, compared to
none for the three months ended March 31, 1999; increases in accounts payable of
$160,806, compared to a decrease of $297,975 for the three months ended March
31, 1999; increases in accrued expenses of $57,528, compared to an increase of
$47,288 for the three months ended March 31, 1999; and a decrease in customer
deposits of $2,435, compared to none for the three months ended March 31, 1999.

         For the three months ended March 31, 2000, the Company used net cash in
investing activities of $138,980, Compared to $215,119 for the three months
ended March 31, 1999. Cash used in investing activities consisted primarily of
the acquisition of equipment and tooling in the amount of $44,345, the
acquisition of patents in the amount of $18,881 and $75,754 for deposits.

         For the three months ended March 31, 2000, net cash provided by
financing activities was $731,766, compared to $3,143,219 for the three months
ended March 31, 1999. The decrease is attributable to the company beginning to
generate cash from sales of SecureDrop(TM) and Shufflers and its decreased
reliance on cash from financing. Cash from financing activities consisted of
$200,000 from the placement of convertible notes and proceeds of $841,465 from
leases payable, reduced by the repayment of leases payable of $284,141 and the
repayment of shareholder loans of $25,558.

         CONVERTIBLE DEBT. The Company received proceeds of $200,000 from the
placement of a convertible note in the first quarter of 2000. The Convertible
Note is with VIP's Industries, Inc., an entity controlled by the Chairman of the
Board of the Company. The debt accrues interest until its maturity on June 1
2000, at 10% per annum, and is convertible into restricted shares of Common
Stock after May 1, 2000, at $2.75 per share.

         EQUIPMENT FINANCING. For the three months endings March 31, 2000, the
Company received proceeds of $830,000 from an unrelated leasing company through
which the Company has financed most of its furniture, equipment, and tooling.

OUTLOOK

         Based on presently known commitments and plans, the Company believes
that it will be able to fund 2000 operations and required expenditures through
cash on hand, cash flow from operations, cash from private or public placement
of debt or equity or from lease financing sources. In the event that such
sources are insufficient or unavailable, the Company will need to seek cash from
private or public placements of debt or equity, institutional or other lending
sources or change operating plans to accommodate such liquidity issues. No
assurances can be given that the Company will successfully obtain necessary
liquidity sources.

RISK FACTORS AND FORWARD-LOOKING INFORMATION

         THIS REPORT CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS WITHIN THE
MEANING OF SECTION 27A OF THE SECURITIES ACT AND SECTION 21E OF THE EXCHANGE
ACT. SUCH STATEMENTS REFER TO EVENTS THAT COULD OCCUR IN THE FUTURE AND MAY BE
IDENTIFIED BY THE USE OF WORDS SUCH AS "INTEND," "PLAN," "BELIEVE," CORRELATIVE
WORDS, AND OTHER EXPRESSIONS INDICATING THAT FUTURE EVENTS ARE CONTEMPLATED.
SUCH STATEMENTS ARE SUBJECT TO INHERENT RISKS AND UNCERTAINTIES, AND ACTUAL
RESULTS COULD DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING
STATEMENTS AS A RESULT OF CERTAIN OF THE RISK FACTORS SET FORTH BELOW AND
ELSEWHERE IN THIS REPORT. IN ADDITION TO THE OTHER INFORMATION CONTAINED HEREIN,
INVESTORS SHOULD CAREFULLY CONSIDER THE FOLLOWING RISK FACTORS.

                                      -9-
<PAGE>

         LIMITED OPERATING RESULTS; NO INDEPENDENT MARKET RESEARCH OF POTENTIAL
DEMAND FOR CURRENT OPERATIONS. The Company has been in the development stage and
has achieved limited sales of its products. The Company's activities have been
limited to analyzing the gaming industry, consulting with persons in the gaming
industry, negotiating interim financing arrangements, developing products,
establishing a distribution network for its products, marketing its products to
the gaming industry, manufacturing its products and commencing product sales.
Although the Company anticipates significant sales development and revenue
growth during 2000, there is no guarantee that the Company will generate
sufficient revenue to sustain its operations. No independent organization has
conducted market research providing management with independent assurance from
which to estimate potential demand for the Company's business operations.

         FOCUS ON NON-GAMING MARKETS. To date, the Company has developed,
manufactured, marketed and sold its products solely to the gaming industry. The
Company has recently begun to explore the expansion of its focus to the
non-gaming application of certain of its products and technology. The expanded
focus to non-gaming markets will have significant risks for the Company,
including, but not limited to, management's lack of experience in non-gaming
markets, the need to hire sales and technical persons with expertise in
non-gaming markets, additional research, development, distribution and marketing
expenses necessary to proceed into non-gaming application of the Company's
products and technology, significant competitive factors and forces applicable
to non-gaming markets and a variety of other factors. There is no assurance that
the Company will be able to successfully execute the strategy to expand a
significant portion of its marketing and product technology strategies to
non-gaming markets.

         REGULATION. The gaming industry is a highly regulated industry and is
subject to numerous statutes, rules and regulations administered by the gaming
regulatory authorities of each jurisdiction. Generally, the Company and other
entities which seek to introduce gaming products or concepts into such
jurisdictions may be required to submit applications relating to their
activities or products (including detailed background information concerning
controlling persons within their organization) which are then reviewed for
approval. The Company may incur significant expenses in seeking to obtain
licenses for its gaming products and concepts, and no assurance can be given
that its products will be approved in any particular jurisdiction. The failure
to obtain such approval in any jurisdiction in which the Company may seek to
introduce its products or concepts could have a material adverse effect on the
Company's business.

         ADDITIONAL FINANCING WILL BE REQUIRED. Based on presently known
commitments and plans, the Company believes that it will be able to fund its
2000 operations and required expenditures through cash on hand, cash flow from
operations, private placement of debt and stock and cash from lease financing
sources. In the event that such sources are insufficient, the Company will need
to seek cash from private and/or public placements of debt or equity,
institutional or other lending sources or change operating plans to accommodate
such liquidity issues. No assurances can be given that the Company will
successfully locate necessary liquidity sources.

         INFLUENCE ON ELECTION OF DIRECTORS AND ALL OTHER MATTERS BY A
CONTROLLING STOCKHOLDER. A certain stockholder of the Company has voting power
over approximately 52.7% of the outstanding shares of common stock. As a result,
this stockholder will be able to influence the election of directors and all
other matters submitted to a vote of the Company's stockholders.

         UNCERTAINTY OF MARKET FOR COMPANY'S PRODUCTS. The Company has only
recently completed development and begun distribution of the Shuffler and
SecureDrop(TM). Although the market appears to be receptive to the Company's
products, there is no guarantee that the market will remain receptive and that
the Company's future products will be received by the market in the same manner.

                                      -10-
<PAGE>

         BENEFIT TO MANAGEMENT. The Company may, in the future, compensate the
Company's management with substantial salaries and other benefits. The payment
of future larger salaries, commissions and the costs of these benefits may be a
burden on the Company and may be a factor in limiting or preventing the Company
from achieving profitable operations in the future. However, the Company would
not continue to compensate management with such substantial salaries and other
benefits under circumstances where to do so would have a material negative
effect on the Company's financial condition.

         STOCKHOLDERS MAY BEAR RISK OF LOSS. The capital stock of the Company is
at risk of complete loss if the Company's operations are unsuccessful.

         COMPETITION. There is significant competition in the gaming industry.
The Company competes with established companies and other entities (many of
which possess substantially greater resources than the Company). Almost all of
the companies with which the Company competes are substantially larger, have
more substantial histories, backgrounds, experience and records of successful
operations, greater financial, technical, marketing and other resources, more
employees and more extensive facilities than the Company now has, or will have
in the foreseeable future. It is also likely that other competitors will emerge
in the near future. There is no assurance that the Company will continue to
compete successfully with other established gaming product manufacturers. The
Company shall compete on the basis of quality and price. Inability to compete
successfully might result in increased costs, reduced yields and additional
risks to the Company's stockholders.

         RISKS OF PROPRIETARY PRODUCTS AND GAMES. The Company places its
proprietary products, except SecureDrop(TM), in casinos under short-term lease
arrangements, making these games susceptible to replacement due to pressure from
competitors, changes in economic conditions, obsolescence, and declining
popularity. The Company intends to maintain and expand the number of installed
proprietary products through enhancement of existing products, introduction of
new products, and customer service, but there can be no assurance that these
efforts will be successful. Introduction of new proprietary products involves
significant risks, including whether the Company will be able to place its
products with casinos and in non-gaming industries, the economic terms on which
these industries will accept the products, and the popularity of the products.
The Company has filed trademark and patent applications to protect its
intellectual property rights in certain of its trademarks and innovations on
certain of its proprietary products, respectively. At this time, however, the
United States Patent and Trademark Office has not acted upon all of these
applications. There can be no assurance that the pending patent or trademark
applications will actually issue as patents or trademark registrations or that
any of these rights will not be infringed by others. Certain of the Company's
products and games do or may have independent protection of the products and
games themselves, and it is possible that competitors could produce a similar
product or game without violating any legal rights of the Company. The Company
intends to aggressively promote its trademarks to build goodwill and customer
loyalty. There can be no assurance, however, that the Company will be successful
in these efforts, that innovations will be subject to legal protection, or that
the innovations will give a competitive advantage to the Company.

         LACK OF DIVIDENDS. There can be no assurance that the operations of the
Company will become profitable. At the present time, the Company intends to use
any earnings which may be generated to finance the growth of the Company's
business.

         DEPENDENCE ON KEY INDIVIDUALS. The future success of the Company is
highly dependent upon the management skills of its key employees and the
Company's ability to attract and retain qualified key employees. The inability
to obtain and employ these individuals would have a serious effect upon the
business of the Company. The Company has entered into an employment agreement
with Steven J. Blad, its President and Chief Executive Officer. There can be no
assurance that the Company will be successful in retaining its key employees or
that it can attract or retain the additional skilled personnel required.

                                      -11-
<PAGE>

         VULNERABILITY TO FLUCTUATIONS IN THE ECONOMY. Demand for the Company's
products is dependent on, among other things, general economic conditions and
international currency fluctuations which are cyclical in nature.
Prolonged recessionary periods may be damaging to the Company.

         "PENNY" STOCK REGULATION OF BROKER-DEALER SALES OF COMPANY SECURITIES.
The Company does not presently meet the requirements for a NASDAQ Small Cap
Market listing. The OTC Bulletin Board has no quantitative written standards and
is not connected with the NASD. Until the Company obtains a listing on the
NASDAQ Small Cap Market, if ever, the Company's securities may be covered by
Rule 15g-9 under the Exchange Act which imposes additional sales practice
requirements on broker-dealers who sell such securities to persons other than
established customers and accredited investors (generally institutions with
assets in excess of $5,000,000 or individuals with net worth in excess of
$1,000,000 or annual income exceeding $200,000 or $300,000 jointly with his or
her spouse). For transactions covered by the rule, the broker-dealer must
furnish, to all investors in penny stocks, a risk disclosure document required
by Rule 15g-9 of the Exchange Act, make a special suitability determination of
the purchaser and have received the purchaser's written agreement to the
transaction prior to the sale. In order to approve a person's account for
transactions in penny stock, the broker or dealer must (i) obtain information
concerning the person's financial situation, investment experience and
investment objectives; (ii) reasonably determine, based on the information
required by paragraph (i), that transactions in penny stock are suitable for the
person and that the person has sufficient knowledge and experience in financial
matters so that the person may reasonably be expected to be capable of
evaluating the risks of transactions in penny stock; and (iii) deliver to the
person a written statement setting forth the basis on which the broker or dealer
made the determination required by paragraph (ii) of this section, stating in a
highlighted format that it is unlawful for the broker or dealer to effect a
transaction in a designated security subject to the provisions of paragraph (ii)
of this section unless the broker or dealer has received, prior to the
transaction, a written agreement for the transaction from the person, which
states in a highlighted format immediately preceding the customer signature line
that the broker or dealer is required to provide the person with the written
statement and the person should not sign and return the written statement to the
broker or dealer if it does not accurately reflect the person's financial
situation, investment experience and investment objectives and obtain from the
person a manually signed and dated copy of the written statement. A penny stock
means any equity security other than a security (i) registered, or approved for
registration upon notice of issuance on a national securities exchange that
makes transaction reports available pursuant to 17 CFR 11Aa3-1; (ii) authorized
or approved for authorization upon notice of issuance, for quotation in the
NASDAQ system; (iii) that has a price of five dollars or more; or (iv) whose
issuer has net tangible assets in excess of $2,000,000 demonstrated by financial
statements dated less than fifteen months previously that the broker or dealer
has reviewed and has a reasonable basis to believe are true and complete in
relation to the date of the transaction with the person. Consequently, the rule
may affect the ability of broker-dealers to sell the Company's securities.


PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

         On August 8, 1998, Pinnacle Performance, Inc. ("Pinnacle") filed a
complaint in the District Court of the Fourth Judicial District of the State of
Idaho, Ada County, Idaho (Case No. CV OC 9705098D) against the Company and a
former employee of Pinnacle (who is now an employee of the Company). The
complaint alleged claims for breach of contract and tortious interference with
contract. The Court granted summary judgment in favor of the Company and vacated
the trial. Plaintiff has appealed the granting of summary judgment in favor of
the Company.

                                      -12-
<PAGE>

         On November 22, 1999, Moll Industries, Inc. ("Moll") filed a complaint
(Case No. 817296) against the Company in the Superior Court of the State of
California for the County of Orange, California. The second amended complaint
alleges claims for breach of contract, quantum meruit, an accounting, and
declaratory relief, and arises from a dispute between the parties regarding the
manufacture of parts for the Shuffler. The Company is preparing a response to
Moll's Second Amended Complaint.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS.

         None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

         None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

         0n March 21, 2000, through a written consent of stockholders,
stockholders holding approximately 68.4% of the outstanding shares of the
Company's common stock voted to approve, among other things, the amendment and
restatement of the Company's Articles of Incorporation providing for a change in
the Company's name from "Casinovations Incorporated" to "CVI Technology, Inc."
and the amendment and restatement of the Company's Bylaws.

ITEM 5.  OTHER INFORMATION.

         REGULATORY APPROVALS. As of May 10, 2000, the Company had installed the
equipment to begin a field trial of the SecureDrop(TM) 3000 System at the Jokers
Wild Casino in Henderson, Nevada. The Company is awaiting final approval from
the Nevada Gaming Control Board to begin the field trial for the SecureDrop(TM)
3000 System and the SecureDrop(TM) Mobile Count System. On August 4, 1999, the
Company received approval from the Nevada Gaming Control Board to sell its
SecureDrop(TM) 2000 System in the State of Nevada. The Company already has
approval in several other gaming jurisdictions to sell the SecureDrop(TM) 2000
and 3000 series and the Mobile Count System of SecureDrop(TM). The Company is
continuing its development of the SecureDrop(TM) 4000 System and the
SecureDrop(TM) 5000 System.

         COMPANY'S NAME CHANGE. On May 2, 2000, the corporate name change of
Casinovations Incorporated to CVI Technology, Inc. (the "Company") became
effective, as the Company filed with the Nevada Secretary of State a Certificate
of Amendment and Restatement of Articles of Incorporation. The change in
corporate name reflects the expansion of the Company's business to industries
outside the gaming industry.

                                      -13-
<PAGE>

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

         (a)  Exhibits.
              ---------

         Exhibit Number      Description
         --------------      -----------

              3.01           Amended and Restated Bylaws of CVI Technology, Inc.

             27.01           Financial Data Schedule


         (b)  Reports on Form 8-K.
              --------------------

         During the three month period ended March 31, 2000, the Company filed
with the Securities and Exchange Commission Forms 8-K: (i) on March 16, 2000,
reporting the termination of its relationship with Timpano Gaming, Inc. for the
Company's distribution of the Wild Jackpot Poker and Twin Baccarat table games,
the termination of its relationship with T&P Gaming, Inc. for the Company's
distribution of the Wild Hold 'em Fold `em table game, and the termination of
its relationship with Bonus Blackjack, Inc. for the Company's distribution of
the Bonus Blackjack table game; and (ii) on March 24, 2000, reporting the
approval by the Company's Board of Directors of the change in the the name of
the Company from "Casinovations Incorporated" to "CVI Technology, Inc." and the
creation of two wholly-owned subsidiaries.

                                      -14-
<PAGE>

                                    SIGNATURE

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                 CVI Technology, Inc.
                                       -----------------------------------------
                                                     (Registrant)

Date:  May 12, 2000               By:      /S/ Michael C. McDonald
                                       -----------------------------------------
                                           Michael C. McDonald
                                  Its:     Chief Financial Officer and Treasurer

                                      -15-
<PAGE>

                                  EXHIBIT INDEX

Exhibit Number                     Description                      Page Number
--------------                     -----------                      -----------

    3.01          Amended and Restated Bylaws of CVI Technology, Inc.    17

   27.01          Financial Data Schedule                                30

                                      -16-