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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-QSB
 QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2006
 CVF TECHNOLOGIES CORPORATION
  NEVADA
    
    0-29266
    
    87-0429335(State or other jurisdiction
    
    (Commission File
    
    (I.R.S. Employerof incorporation or organization)
    
    Number)
    
    Identification No.)
 
 þ o
 o þ
  o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONItem 1. Financial StatementsItem 2 MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONItem 3. Controls and ProceduresPART II  OTHER INFORMATIONItem 2 Unregistered Sales of Equity Securities and Use of ProceedsItem 6. ExhibitsSIGNATURESEXHIBIT INDEXEX-11EX-31.1EX-31.2EX-32    Table of Contents  
  
  CVF TECHNOLOGIES CORPORATION AND SUBSIDIARIES  CONSOLIDATED BALANCE SHEETS
 (Expressed in U.S. Currency)September 30,
    
    
    December 31,2006
    
    
    2005(unaudited)
    
    
    (audited)ASSETSCURRENT ASSETS:Cash and cash equivalents
    
    $
    1,874,640
    
    
    $
    3,793,577Restricted cash
    
    
    1,159,505
    
    
    
    2,724,316Trade receivables
    
    
    590,639
    
    
    
    11,005Loans receivable
    
    
    16,105
    
    
    
    Inventory
    
    
    50,062
    
    
    
    9,932Prepaid expenses and other
    
    
    89,809
    
    
    
    31,660TOTAL CURRENT ASSETS
    
    
    3,780,760
    
    
    
    6,570,490Property and equipment, net of accumulated depreciation
    
    
    25,576
    
    
    
    5,699Loans receivable
    
    
    142,251
    
    
    
    142,251Equity investment in Biorem (see Note 4)
    
    
    422,033
    
    
    
    626,000Holdings available for sale, at market
    
    
    18,628
    
    
    
    1,058TOTAL ASSETS
    
    $
    4,389,248
    
    
    $
    7,345,498LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIES:Notes payable  other
    
    $
    
    
    
    $
    25,000Accounts payables and accrued liabilities
    
    
    2,436,209
    
    
    
    2,260,153TOTAL CURRENT LIABILITIES
    
    
    2,436,209
    
    
    
    2,285,153LONG-TERM LIABILITIES:Deferred income taxes
    
    
    90,052
    
    
    
    87,424Minority interest
    
    
    897,805
    
    
    
    916,936Pension obligation
    
    
    619,049
    
    
    
    614,898TOTAL LONG-TERM LIABILITIES
    
    
    1,606,906
    
    
    
    1,619,258Redeemable
Series A preferred stock, $0.001 par value, redeemable at $18.25 per share, authorized 500,000 shares,
issued and outstanding 1,592 shares (2005: 3,477)
    
    
    29,054
    
    
    
    63,4554,072,169
    
    
    
    3,967,866STOCKHOLDERS EQUITY:Series C convertible preferred stock, $0.001 par value,
issued and outstanding nil (2005; 100,000) shares, stated value $1,000,000
    
    
    
    
    
    
    100Common stock, $0.001 par value, authorized 50,000,000 shares,
12,657,735 issued (2005: 13,820,396) and in
treasury 1,644,361 (2005: 481,700)
    
    
    14,302
    
    
    
    14,302Warrants
    
    
    111,094
    
    
    
    111,094Additional paid in capital
    
    
    29,593,512
    
    
    
    30,620,178Treasury stock
    
    
    (3,204,592
    )
    
    
    (2,747,174
    )Accumulated other comprehensive loss
    
    
    (145,896
    )
    
    
    (220,190
    )Accumulated deficit
    
    
    (26,051,341
    )
    
    
    (24,400,678
    )TOTAL STOCKHOLDERS EQUITY
    
    
    317,079
    
    
    
    3,377,632TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    4,389,248
    
    
    $
    7,345,498




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CVF TECHNOLOGIES CORPORATION AND SUBSIDIARIES  CONSOLIDATED STATEMENT OF OPERATIONS
 (UNAUDITED)
 (Expressed in U.S. Currency)Three months ended September 30,
    
    
    Nine months ended September 30,2006
    
    
    2005
    
    
    2006
    
    
    2005SALES
    
    $
    802,975
    
    
    $
    92,916
    
    
    $
    1,003,295
    
    
    $
    340,938Cost of sales
    
    
    636,142
    
    
    
    31,122
    
    
    
    764,349
    
    
    
    104,713GROSS MARGIN
    
    
    166,833
    
    
    
    61,794
    
    
    
    238,946
    
    
    
    236,225EXPENSES:Selling, general and administrative
    
    
    537,742
    
    
    
    441,238
    
    
    
    1,649,001
    
    
    
    1,300,549TOTAL EXPENSES
    
    
    537,742
    
    
    
    441,238
    
    
    
    1,649,001
    
    
    
    1,300,549(Loss) from continuing operations before under noted items
    
    
    (370,909
    )
    
    
    (379,444
    )
    
    
    (1,410,055
    )
    
    
    (1,064,324
    )OTHER (EXPENSES) INCOMEInterest income (expense), net
    
    
    26,743
    
    
    
    (33,453
    )
    
    
    106,924
    
    
    
    (39,534
    )(Loss) income from equity investees
    
    
    (76,054
    )
    
    
    1,229
    
    
    
    (266,661
    )
    
    
    67,747Other (expense), net
    
    
    (216
    )
    
    
    59,046
    
    
    
    (137,033
    )
    
    
    34,703Gain on sale of holdings
    
    
    
    
    
    
    228,263
    
    
    
    
    
    
    
    1,027,137TOTAL OTHER INCOME (EXPENSE)
    
    
    (49,527
    )
    
    
    255,085
    
    
    
    (296,770
    )
    
    
    1,090,053Income (Loss) before income taxes and minority interest
    
    
    (420,436
    )
    
    
    (124,359
    )
    
    
    (1,706,825
    )
    
    
    25,729Income taxes (recovery)
    
    
    10,951
    
    
    
    (38,288
    )
    
    
    13,283
    
    
    
    (111,917
    )Income (Loss) before minority interest
    
    
    (431,387
    )
    
    
    (86,071
    )
    
    
    (1,720,108
    )
    
    
    137,646Minority interest in loss
    
    
    11,271
    
    
    
    
    
    
    
    71,604
    
    
    
    NET INCOME (LOSS)
    
    $
    (420,116
    )
    
    $
    (86,071
    )
    
    $
    (1,648,504
    )
    
    $
    137,646BASIC INCOME (LOSS) PER SHARE
    
    $
    (0.03
    )
    
    $
    (0.01
    )
    
    $
    (0.13
    )
    
    $
    0.01DILUTED INCOME (LOSS) PER SHARE
    
    $
    (0.03
    )
    
    $
    (0.01
    )
    
    $
    (0.13
    )
    
    $
    0.01WEIGHTED SHARES USED IN COMPUTATION  BASIC
    
    
    12,671,613
    
    
    
    13,820,396
    
    
    
    13,007,012
    
    
    
    13,817,578WEIGHTED SHARES USED IN COMPUTATION  DILUTED
    
    
    12,671,613
    
    
    
    13,820,396
    
    
    
    13,007,012
    
    
    
    13,872,389




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CVF TECHNOLOGIES CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF CASH FLOWS
 (UNAUDITED)
 (Expressed in U.S. Currency)Nine months ended September 30,2006
    
    
    2005CASH FLOW FROM OPERATING ACTIVITIES:Net income (loss) from continuing operations
    
    $
    (1,648,504
    )
    
    $
    137,646Adjustments to reconcile net loss
from operating activities:Depreciation and amortization
    
    
    2,077
    
    
    
    9,897Minority interest in losses of subsidiaries
    
    
    (71,604
    )
    
    
    Pension expense
    
    
    4,151
    
    
    
    793Deferred income tax
    
    
    2,628
    
    
    
    (113,926
    )Stock option compensation
    
    
    (7,000
    )
    
    
    (44,300
    )Issuance of restricted stock
    
    
    107,900
    
    
    
    Loss (income) from equity investees
    
    
    266,661
    
    
    
    (67,747
    )Changes in non-cash working capital itemsDecrease (increase) in trade receivables
    
    
    (579,634
    )
    
    
    10,732(Increase) in loans receivables
    
    
    (16,105
    )
    
    
    (Increase) decrease in inventory
    
    
    (40,130
    )
    
    
    7,318(Increase) in prepaid expenses and other
    
    
    (58,149
    )
    
    
    14,526(Decrease) in trade payables and accrued liabilities
    
    
    178,684
    
    
    
    (35,114
    )(210,521
    )
    
    
    (217,821
    )CASH (USED IN) OPERATING ACTIVITIES
    
    
    (1,859,025
    )
    
    
    (80,175
    )CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:Proceeds from sale of holdings
    
    
    
    
    
    
    171,384Investment in investee companies
    
    
    (60,369
    )
    
    
    CASH PROVIDED BY INVESTING ACTIVITIES
    
    
    (60,369
    )
    
    
    171,384CASH FLOWS (USED) FROM FINANCING ACTIVITIES:Redemption of Series A preferred shares
    
    
    (34,401
    )
    
    
    Redemption of Series C preferred shares
    
    
    (1,121,667
    )
    
    
    Purchase of treasury shares
    
    
    (457,418
    )
    
    
    Repayment of debt
    
    
    (25,000
    )
    
    
    57,964Exercise of stock options
    
    
    
    
    
    
    23,200CASH PROVIDED (USED IN) BY FINANCING ACTIVITIES
    
    
    (1,638,486
    )
    
    
    81,164EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS
    
    
    74,132
    
    
    
    (159,802
    )NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
    
    
    (3,483,748
    )
    
    
    12,571CASH AND CASH EQUIVALENTS  beginning of period
    
    
    6,517,893
    
    
    
    112,648CASH AND CASH EQUIVALENTS  end of period
    
    $
    3,034,145
    
    
    $
    125,219




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CVF TECHNOLOGIES CORPORATION AND SUBSIDIARIES
 STATEMENT OF COMPREHENSIVE INCOME
 (UNAUDITED)
 (Expressed in U.S. Currency)Three months ended September 30,
    
    
    Nine months ended September 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Net Income (loss)
    
    $
    (420,116
    )
    
    $
    (86,071
    )
    
    $
    (1,648,504
    )
    
    $
    137,646Other comprehensive income, net of tax:Foreign currency translation adjustments
    
    
    6
    
    
    
    (174,803
    )
    
    
    76,238
    
    
    
    (118,199
    )Unrealized holding gains:Unrealized holding losses arising during period (see note below)
    
    
    (3,023
    )
    
    
    (713
    )
    
    
    (1,944
    )
    
    
    (413
    )Total other comprehensive income
    
    
    (3,017
    )
    
    
    (175,516
    )
    
    
    74,294
    
    
    
    (118,612
    )Comprehensive income (loss) during period
    
    $
    (423,133
    )
    
    $
    (261,587
    )
    
    $
    (1,574,210
    )
    
    $
    19,034Note: Unrealized holding losses are net of tax (benefit) of ($2,015) and
($475) for the three months ended September 30, 2006 and 2005
respectively and ($1,296) and ($275) for the nine months
ended September 30, 2006 and 2005 respectively.




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CVF TECHNOLOGIES CORPORATION AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005  (UNAUDITED)
  1.
    
    BASIS OF PRESENTATION
    2.
    
    ACCOUNTING POLICIES




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3.
    
    SUBSIDIARY ANNUAL SHAREHOLDERS MEETING
  4.
    
    SUBSIDIARY BIOREM GOES PUBLIC
   5.
    
    EQUITY AND DEBT INVESTMENT IN XYLODYNE CORPORATION




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6.
    
    INCOME (LOSS) PER SHARE
  7.
    
    INVENTORYInventory consists of the following:
 September 30, 2006
    
    
    December 31, 2005Finished goods
    
    $
    116,065
    
    
    $
    75,935Less obsolescence reserve
    
    
    (66,003
    )
    
    
    (66,003
    )$
    50,062
    
    
    $
    9,932




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8.
    
    INVESTMENTS
  Nine Months Ended September 30,2006
    
    2005Net Sales
    
    $
    7,885,807
    
    
    $
    6,776,699Gross profit on sales
    
    
    2,293,760
    
    
    
    2,775,546Net income (loss)
    
    $
    (1,157,225
    )
    
    $
    20,073
  9.
    
    CONCENTRATION OF CREDIT RISK
  10.
    
    DEPENDENCY ON SUPPLIER




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11.
    
    SERIES C PREFERRED STOCK REDEMPTION
   12.
    
    REDEEMABLE SERIES A PREFERRED STOCK REDEMPTION
  13.
    
    STOCK BUYBACK PLAN
  14.
    
    ISSUANCE OF RESTRICTED CVF COMMON SHARES




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15.
    
    INTERIM FINANCIAL STATEMENT DISCLOSURES
  16.
    
    SEGMENTED INFORMATION




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ElectricIdentification
    
    Natural
    
    Vehicles
    
    CorporateSystems
    
    Horticultural
    
    & Parts
    
    Administration
    
    Total2006
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $Sales
    
    
    
    
    
    
    148,095
    
    
    
    855,200
    
    
    
    
    
    
    
    1,003,295(Loss) from
continuing operations
before other income
    
    
    (119,213
    )
    
    
    (130,860
    )
    
    
    (44,926
    )
    
    
    (1,115,056
    )
    
    
    (1,410,055
    )Other income (expense)
    
    
    (39,897
    )
    
    
    52,142
    
    
    
    (4,180
    )
    
    
    (304,834
    )
    
    
    (296,769
    )(Loss) from
continuing operations
before income taxes
and minority interest
    
    
    (159,110
    )
    
    
    (78,718
    )
    
    
    (49,107
    )
    
    
    (1,419,890
    )
    
    
    (1,706,825
    )2005Sales
    
    
    315,939
    
    
    
    24,999
    
    
    
    
    
    
    
    
    
    
    
    340,938(Loss) from
continuing operations
before other income
(expense)
    
    
    (127,791
    )
    
    
    (18,846
    )
    
    
    
    
    
    
    (917,687
    )
    
    
    (1,064,324
    )Other income (expense)
    
    
    (81,063
    )
    
    
    41,474
    
    
    
    
    
    
    
    1,129,642
    
    
    
    1,090,053Income (loss) from
continuing operations
before income taxes
    
    
    (208,854
    )
    
    
    22,628
    
    
    
    
    
    
    
    211,955
    
    
    
    25,729
 17.
    
    EQUITY INVESTEE SRE FILES BANKRUPTCY IN MARCH 2005
  18.
    
    CONTINGENCIES




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MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION




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
    
    general economic and business conditions;
    
    foreign currency fluctuations, particularly involving the Canadian dollar:
    
    the Companys ability to find additional suitable investments and the ability of those
investments to generate an acceptable return on invested capital; and
    
    the uncertainties and risks involved in investing in early-stage development companies
which can arise because of the lack of a customer base, lack of name recognition and
credibility, the need to locate and retain experienced management and the need to develop and
refine the business and its operations, among other reasons.
    
    the Companys ability to obtain capital to fund its operations and those of its investees.
  
  (a)
    
    The Company carried out an evaluation, under the supervision and with the
participation of the Companys management, including the Companys Chief Executive Officer
and Chief Financial Officer, of the effectiveness of the design and operation of the
Companys disclosure controls and procedures. Based upon that evaluation, the Companys
Chief Executive Officer and Chief Financial Officer concluded that the Companys
disclosure controls and procedures are effective as of the end of the period covered by
this report.(b)
    
    There has been no significant change in the Companys internal controls over
financial reporting that occurred during the last fiscal quarter that has materially
affected, or is reasonably likely to materially affect, the Companys internal control
over financial reporting.




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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
 Small Business Issuer Purchases of Equity Securities
 Total No. of shares
    
    Maximum Approximate DollarTotal Number
    
    Average
    
    purchased as part of
    
    Value of shares that may yetof Shares
    
    Price Paid
    
    publicly announced plans
    
    be purchased under publiclyPERIOD
    
    Purchased
    
    per Share
    
    or programs
    
    announced plans or programsJanuary 2006
    
    
    84,100
    
    
    $
    0.33
    
    
    
    84,100
    
    
    $
    470,543.00February 2006
    
    
    49,300
    
    
    $
    0.36
    
    
    
    49,300
    
    
    $
    451,889.50March 2006
    
    
    38,100
    
    
    $
    0.38
    
    
    
    38,100
    
    
    $
    436,875.60April 2006
    
    
    879,961
    
    
    $
    0.40
    
    
    
    879,961
    
    
    $
    82,733.95May 2006
    
    
    89,800
    
    
    $
    0.37
    
    
    
    89,800
    
    
    $
    47,940.14June 2006
    
    
    4,600
    
    
    $
    0.33
    
    
    
    4,600
    
    
    $
    46,445.14September 2006
    
    
    16,800
    
    
    $
    0.23
    
    
    
    16,800
    
    
    $
    42,581.14TOTAL
    
    
    1,162,661
    
    
    $
    0.39
    
    
    
    1,162,661
    
    
    $
    46,445.14
 
  (11)
    
    Statement re computation of per share earnings(31.1)
    
    Certification of Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.(31.2)
    
    Certification of Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.(32)
    
    Certifications Pursuant to 18 U.S.C. 1350 As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
 
    CVF TECHNOLOGIES CORPORATIONBy:
    
    /s/ Jeffrey I. DrebenName:
    
    Jeffrey I. DrebenTitle:
    
    Chairman of the Board, President
and   Chief Executive OfficerBy:
    
    /s/ Robert L. MillerName:
    
    Robert L. MillerTitle:
    
    Chief Financial Officer




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No.
    
    Description(11)
    
    Statement re computation of per share earnings.(31.1)
    
    Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002.(31.2)
    
    Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002.(32)
    
    Certifications Pursuant to 18 U.S.C. 1350 As Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.