<PAGE>
                     U.S. 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 June 30, 2003



                          CVF TECHNOLOGIES CORPORATION
        (Exact name of small business issuer as specified in its charter)

             NEVADA                       0-29266               87-0429335
 (State or other jurisdiction           (Commission File    (I.R.S. Employer
   of incorporation or organization)      Number)           Identification No.)


                            8604 Main Street, Suite 1
                          WILLIAMSVILLE, NEW YORK 14221
                                 (716) 565-4711
               (Address, including zip code, and telephone number,
          including area code, of issuer's principal executive offices)

     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[ ]

     As of July 25, 2003, there were 10,706,049 shares of common stock, $0.001
par value per share, of the issuer outstanding.

     Transitional Small Business Disclosure Format (check one): Yes [ ]  No [X]


<PAGE>



                         PART I - FINANCIAL INFORMATION
Item 1. Financial Statements


                  CVF TECHNOLOGIES CORPORATION AND SUBSIDIARIES
                  ---------------------------------------------
                           CONSOLIDATED BALANCE SHEETS
                           ---------------------------

<TABLE>
<CAPTION>
                                                                                          (Expressed in U.S. Currency)

                                                                                         June 30,           December 31,
                                                                                           2003                 2002
                                                                                        (unaudited)           (audited)
                                                                                       ------------         ------------
                                                                                         (Note 2)              (Note 2)
<S>                                                                                    <C>                  <C>
                                              ASSETS
                                              ------

CURRENT ASSETS:
      Cash and cash equivalents                                                        $  1,032,885         $    218,003
      Trade receivables (Note 6)                                                          1,640,019              940,559
      Inventory (Note 7)                                                                    486,395              419,764
      Prepaid expenses and other                                                             52,770               56,794
      Income taxes receivable                                                                36,363              492,299
                                                                                       ------------         ------------
           TOTAL CURRENT ASSETS                                                           3,248,432            2,127,419
Property and equipment, net of accumulated depreciation                                     215,001              201,327
Loans receivable                                                                            142,443              144,399
Holdings available for sale, at market                                                       18,377               62,505
Technology, net of accumulated amortization                                                 418,384              529,152
Goodwill                                                                                  1,405,222            1,405,222
                                                                                       ------------         ------------
           TOTAL ASSETS                                                                $  5,447,859         $  4,470,024
                                                                                       ============         ============


                               LIABILITIES AND STOCKHOLDERS' EQUITY
                               ------------------------------------

CURRENT LIABILITIES:
      Bank indebtedness                                                                $     16,484         $          -
      Current portion of long-term debt (Note 17)                                           471,234               85,860
      Loans past due or in default                                                          212,865              182,431
      Accounts payables and accrued liabilities                                           5,600,723            3,762,186
      Preferred and other non-voting stock of subsidiaries                                  185,525              159,000
                                                                                       ------------         ------------
           TOTAL CURRENT LIABILITIES                                                      6,486,831            4,189,477
                                                                                       ------------         ------------
Notes payable - officers and directors (Note 17)                                            504,628              241,680
Deferred income taxes                                                                       217,981              259,454
Minority interest                                                                           116,136              217,167
Pension obligation                                                                          532,280              465,566
                                                                                       ------------         ------------
                                                                                          1,371,025            1,183,867
                                                                                       ------------         ------------
Redeemable Series A preferred stock, $0.001 par value, redeemable at $18.25 per
         share, authorized 500,000 shares,
         issued and outstanding 3,477 shares                                                 63,455               63,455
                                                                                       ------------         ------------
                                                                                          7,921,311            5,436,799
                                                                                       ------------         ------------

STOCKHOLDERS' (DEFICIT) EQUITY:
      Common stock, $0.001 par value, authorized 50,000,000 shares,
          10,706,049 issued and 481,700 in treasury                                          11,188               11,095
      Series B convertible preferred stock, $0.001 par value,
         liquidation preference of 130% of stated value, authorized,
         issued and outstanding 339,000 shares (Note 10)                                        339                  339
      Warrants                                                                              111,094              111,094
      Additional paid in capital                                                         28,134,754           27,927,197
      Treasury stock                                                                     (2,747,174)          (2,747,174)
      Accumulated other comprehensive loss                                               (1,508,847)          (1,066,589)
      Accumulated deficit                                                               (26,474,806)         (25,202,737)
                                                                                       ------------         ------------
           TOTAL STOCKHOLDERS' EQUITY                                                    (2,473,452)            (966,775)
                                                                                       ------------         ------------
           TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                  $  5,447,859         $  4,470,024
                                                                                       ============         ============
</TABLE>

                 See notes to consolidated financial statements



<PAGE>





                  CVF TECHNOLOGIES CORPORATION AND SUBSIDIARIES
                  ---------------------------------------------
                      CONSOLIDATED STATEMENT OF OPERATIONS
                      ------------------------------------

                                   (UNAUDITED)
                                   -----------
<TABLE>
<CAPTION>

                                                                 (Expressed in U.S. Currency)

                                                                 Three months ended June 30,      Six months ended June 30,
                                                                     2003            2002            2003            2002
                                                                 ------------    ------------    ------------    ------------
                                                                   (Note 2)        (Note 2)        (Note 2)        (Note 2)

<S>                                                              <C>             <C>             <C>             <C>
SALES (Note 9)                                                   $  2,868,990    $  1,492,677    $  4,427,848    $  3,908,638

Cost of sales (Note 9)                                              1,880,421         812,311       2,700,520       2,763,000
                                                                 ------------    ------------    ------------    ------------

GROSS MARGIN                                                          988,569         680,366       1,727,328       1,145,638
                                                                 ------------    ------------    ------------    ------------

EXPENSES:
      Selling, general and administrative                           1,485,120       1,171,961       2,868,748       2,153,393
      Research and development                                         45,601          93,204         176,630         189,262
                                                                 ------------    ------------    ------------    ------------
TOTAL EXPENSES                                                      1,530,721       1,265,165       3,045,378       2,342,655
                                                                 ------------    ------------    ------------    ------------

(Loss) from continuing operations before under noted items           (542,152)       (584,799)     (1,318,050)     (1,197,017)
                                                                 ------------    ------------    ------------    ------------

OTHER (EXPENSES) INCOME
      Interest (expense), net                                         (28,784)        (34,040)        (73,562)        (58,700)
      Other income, net                                                45,139          14,739         119,258          22,296
      Gain (Loss) from equity investees                                     -             310               -         (28,235)
      Gain on sale of holdings                                            288          63,491           7,194         253,997

                                                                 ------------    ------------    ------------    ------------
TOTAL OTHER INCOME                                                     16,643          44,500          52,890         189,358
                                                                 ------------    ------------    ------------    ------------

(Loss) from continuing operations before
      recovery of income taxes                                       (525,509)       (540,299)     (1,265,160)     (1,007,659)

(Recovery) of income taxes                                            (33,868)       (446,049)        (64,142)       (474,494)
                                                                 ------------    ------------    ------------    ------------

(Loss) from continuing operations before the following:              (491,641)        (94,250)     (1,201,018)       (533,165)

Minority interest in loss                                              47,278          47,914         127,938          95,646
                                                                 ------------    ------------    ------------    ------------

Net (loss) from continuing operations                                (444,363)        (46,336)     (1,073,080)       (437,519)

 Gain (Loss) from operations of discontinued business (Note 3)              -           4,989               -        (111,762)

 Gain on discontinuance of business (Note 3)                                -         516,245               -         516,245

                                                                 ------------    ------------    ------------    ------------
NET INCOME (LOSS)                                                $   (444,363)   $    474,898    $ (1,073,080)   $    (33,036)
                                                                 ============    ============    ============    ============

BASIC INCOME (LOSS) PER SHARE
(Loss) from continuing operations                                $      (0.05)   $      (0.01)   $      (0.12)   $      (0.05)
Income from discontinued business                                           -            0.05               -            0.04
                                                                 ------------    ------------    ------------    ------------
BASIC INCOME (LOSS) PER SHARE                                    $      (0.05)   $       0.04    $      (0.12)   $      (0.01)
                                                                 ============    ============    ============    ============

                                                                 ------------    ------------    ------------    ------------
DILUTED INCOME (LOSS) PER SHARE                                  $      (0.05)   $       0.03    $      (0.12)   $      (0.01)
                                                                 ============    ============    ============    ============

WEIGHTED SHARES USED IN COMPUTATION - BASIC                        10,706,049      10,314,467      10,699,399      10,188,820
                                                                 ============    ============    ============    ============
WEIGHTED SHARES USED IN COMPUTATION - DILUTED                      10,706,049      12,672,251      10,699,399      10,188,820
                                                                 ============    ============    ============    ============
</TABLE>

                 See notes to consolidated financial statements

<PAGE>



                  CVF TECHNOLOGIES CORPORATION AND SUBSIDIARIES
                  ---------------------------------------------

                      CONSOLIDATED STATEMENT OF CASH FLOWS
                      ------------------------------------

                                   (UNAUDITED)
                                   -----------

<TABLE>
<CAPTION>
                                                                                  (Expressed in U.S. Currency)

                                                                                   Six Months Ended June 30,
                                                                                -------------------------------
                                                                                   2003                 2002
                                                                                -----------         -----------
                                                                                  (Note 2)            (Note 2)
<S>                                                                             <C>                 <C>
CASH FLOW FROM OPERATING ACTIVITIES:
      Net loss from continuing operations                                       $(1,073,080)        $  (549,281)

      Adjustments to reconcile net loss from operating activities:
           Depreciation and amortization                                            212,550             197,395
           Loss from equity investees                                                     -              28,235
           Gain on sale of holdings                                                  (7,194)           (253,997)
           Minority interest in losses of subsidiaries                             (127,938)            (95,646)
           Pension expense                                                           14,692              13,362
           Deferred tax income                                                      (64,142)            578,432
           Stock option compensation                                                182,650             117,462
           Warrants compensation                                                          -              34,767

      Changes in non-cash working capital items
           Decrease (increase) in trade receivables                                (505,705)            170,264
           (Increase) in inventory                                                    3,165             345,250
           (Increase) decrease in prepaid expenses and other                         12,581               9,810
           Decrease in income taxes receivable                                      412,154          (1,032,084)
           Increase (decrease) in trade payables and accrued liabilities          1,128,675            (767,409)
                                                                                -----------         -----------
                                                                                  1,261,488            (654,159)
                                                                                -----------         -----------

CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES                                     188,408          (1,203,440)
                                                                                -----------         -----------


CASH FLOWS FROM INVESTING ACTIVITIES:
      Disposal of property and equipment                                             (8,630)             (3,424)
      Investments in and advances to equity investees                                     -             (28,602)
      Purchase of holdings available for sale                                             -                (290)
      Proceeds from sale of holdings                                                 46,724             734,283
      Proceeds from sale of subsidiary                                                    -             494,878
                                                                                -----------         -----------
CASH PROVIDED BY INVESTING ACTIVITIES                                                38,094           1,196,845
                                                                                -----------         -----------

CASH FLOWS FROM FINANCING ACTIVITIES:

      Increase in bank indebtedness                                                  15,364            (125,309)
      Decrease in restricted cash                                                         -             127,608
      Increase in note payable to officer                                           553,360                   -
      Purchase of treasury stock                                                          -              (1,045)
                                                                                -----------         -----------
CASH PROVIDED BY FINANCING ACTIVITIES                                               568,724               1,254
                                                                                -----------         -----------

NET CASH APPLIED TO DISCONTINUED OPERATIONS                                               -             (64,332)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
      CASH EQUIVALENTS                                                               19,656              16,557
                                                                                -----------         -----------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                814,882             (53,116)

CASH AND CASH EQUIVALENTS - beginning of period                                     218,003             422,538
                                                                                -----------         -----------

CASH AND CASH EQUIVALENTS - end of period                                       $ 1,032,885         $   369,422
                                                                                ===========         ===========
</TABLE>



                 See notes to consolidated financial statements

<PAGE>



                  CVF TECHNOLOGIES CORPORATION AND SUBSIDIARIES
                  ---------------------------------------------

                        STATEMENT OF COMPREHENSIVE INCOME
                        ---------------------------------

                                   (UNAUDITED)
                                   -----------

<TABLE>
<CAPTION>
                                                                        (Expressed in U.S. Currency)


                                                                         Three months ended June 30,   Six months ended June 30,
                                                                             2003           2002           2003           2002
                                                                         -----------    -----------    -----------    -----------

<S>                                                                      <C>            <C>            <C>            <C>
Net Income (loss)                                                        $  (444,363)   $   474,898    $(1,073,080)   $   (33,036)
                                                                         -----------    -----------    -----------    -----------


Other comprehensive income, net of tax:

      Foreign currency translation adjustments                              (257,369)       249,211       (436,950)       243,510

      Unrealized holding gains:

      Unrealized holding losses arising during period (see note below)        (1,002)       (46,545)        (5,308)      (305,454)
                                                                         -----------    -----------    -----------    -----------

      Total other comprehensive income (loss)                               (258,371)       202,666       (442,258)       (61,944)
                                                                         -----------    -----------    -----------    -----------

      Comprehensive (loss) during period                                 $  (702,734)   $   677,564    $(1,515,338)   $   (94,980)
                                                                         ===========    ===========    ===========    ===========
</TABLE>


    Note: Unrealized holding losses are net of tax (benefit) of ($668) and
          ($31,030) for the three months ended June 30, 2003 and 2002
          respectively and ($3,539) and ($203,636) for the six months ended June
          30, 2003 and 2002, respectively.


                 See notes to consolidated financial statements


<PAGE>

                  CVF TECHNOLOGIES CORPORATION AND SUBSIDIARIES
                  ---------------------------------------------

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

                     SIX MONTHS ENDED JUNE 30, 2003 AND 2002
                     ---------------------------------------
                                   (UNAUDITED)
                                   -----------

                          (Expressed in U.S. Currency)

1.       BASIS OF PRESENTATION
         ---------------------

                  The accompanying financial statements are unaudited, but
         reflect all adjustments which, in the opinion of management, are
         necessary for a fair presentation of financial position and the results
         of operations for the interim periods presented. All such adjustments
         are of a normal and recurring nature. The results of operations for any
         interim period are not necessarily indicative of the results attainable
         for a full fiscal year.

         The preparation of financial statements in conformity with generally
         accepted accounting principles requires management to make estimates
         and assumptions that affect the amounts reported in the financial
         statements and accompanying notes. Actual results could differ from
         those estimates.

         Certain of the comparative figures have been reclassified to conform
         with the presentation adopted in the current period. The Canadian
         dollar is the functional currency used by the Company, whereas the
         reporting currency is the U.S. dollar.

2.       GOING CONCERN
         -------------

                  These consolidated financial statements have been prepared on
         a going concern basis, which presumes that assets will be realized and
         liabilities discharged in the normal course of business over the
         foreseeable future. The Company's current liabilities exceed its
         current assets and the Company has incurred significant losses over the
         quarter and for the past five years, which have reduced the Company's
         cash reserves, and depleted stockholders' equity. Further, the Company
         has contingent liabilities (note 15). These conditions raise
         substantial doubt about the Company's ability to continue in the normal
         course of business as a going concern.

                  The Company's primary need for cash is to maintain its ability
         to support the operations and ultimately the carrying values of certain
         of its individual investee companies. The Company is actively pursuing
         the sale of a portion of its interests in two of its investee companies
         as a source of funds, and reduction of cash flow needs. The Company
         will continue to assist its investee companies in their efforts to
         obtain outside financing in order to fund the growth and development of
         their respective businesses and has taken steps to reduce the operating
         cash requirements of the parent company and its investees. The Company
         is also seeking outside

<PAGE>

         investment. There is no assurance that these initiatives will be
         successful or that the Company or certain of its investees will have
         adequate cash resources and capital to be able to continue as going
         concerns.

                  The Company's ability to continue to realize assets and
         discharge liabilities in the normal course of business is uncertain.
         These financial statements do not include any of the adjustments to the
         amounts or classification of assets and liabilities that might be
         necessary should the Company be unable to continue its business in the
         normal course.

3.       DISCONTINUED BUSINESS/SEGMENT
         -----------------------------

                  On April 19, 2002, as part of its business plan, the Company
        completed the sale of its interest in its subsidiary, Dantec
        Corporation. Prior to the sale, CVF held a 54% interest in Dantec. As a
        result of the sale, Dantec has been accounted for as discontinued
        operation. Revenue from Dantec to June 30, 2002 was $103,363. The
        results in 2002 are shown on the income statement as a separate line
        item, "loss from operations of discontinued business".

4.       LOSS PER SHARE
         --------------

                  Basic loss per share amounts are computed by dividing net loss
         from continuing operations available to common stockholders from
         continuing operation and loss from discontinued operations, and net
         loss available to common stockholders by the weighted average number of
         common shares outstanding during the period. The net loss from
         continuing operations and net loss available to common stockholders
         consists of net loss from continuing operations and net loss amounts
         reduced by the dividends on the Company's Series A and B preferred
         stock. Diluted loss per share reflects the per share amount that would
         have resulted if diluted potential common stock had been converted to
         common stock, as prescribed by SFAS 128. The Company has presented
         dilutive income per share in those periods where there was net income
         and therefore reduced income per share and not presented dilutive loss
         per share information when the dilution would reduce the loss per
         share.

5.       STOCK BASED COMPENSATION PLANS
         ------------------------------

                  The Company accounts for stock-based compensation plans under
         Accounting Principles Board Opinion 25, (APB 25) Accounting for Stock
         Issued to Employees and the related interpretation, for which no
         compensation cost is recorded in the statement of operations for the
         estimated fair value of stock options issued with an exercise price
         equal to the fair value of the common stock on the date of grant.
         Statement of Financial Accounting Standards No. 123 (SFAS 123)
         Accounting for Stock-Based Compensation, as amended by Statement of
         Financial Accounting Standards No. 148 (SFAS 148) Accounting for Stock-
         Based Compensation - Transition and Disclosure, requires that
         companies, which do not elect to account for stock-based compensation
         as prescribed by this statement, disclose the pro-forma effects on
         earnings and earnings per share as if SFAS 123 has been adopted.


<PAGE>


                  If the Company had applied the recognition provisions of SFAS
         123 using the Black-Scholes option pricing model, the resulting
         pro-forma net income (loss) available to common shareholders, and
         pro-forma net income (loss) available to common shareholders per share
         would be as follows:



<TABLE>
<CAPTION>
---------------------------------------- ---------------------------------- ----------------------------------
                                         For the three months ended         For the six months ended
                                         --------------------------         ------------------------
                                                     June 30,                           June 30,
                                                     ---------                          --------
---------------------------------------- --------------- ------------------ ----------------- ----------------
                                              2003             2002               2003             2002
                                              ----             ----               ----             ----
---------------------------------------- --------------- ------------------ ----------------- ----------------
<S>                                      <C>             <C>                <C>               <C>
Net (loss) income available to common
shareholders, as reported                $(529,528)      $   424,008        $(1,242,474)      $(135,286)
---------------------------------------- --------------- ------------------ ----------------- ----------------
Deduct (Add): Stock-based
compensation, net of tax                       -             110,548              -            (110,548)
---------------------------------------- --------------- ------------------ ----------------- ----------------
Net (loss) available to common
shareholders, pro-forma                  $(529,528)      $   313,460        $(1,242,474)      $(245,834)
                                         ==========      ===========        ============      ==========
---------------------------------------- --------------- ------------------ ----------------- ----------------

---------------------------------------- --------------- ------------------ ----------------- ----------------
Basic earnings (loss) per share:
---------------------------------------- --------------- ------------------ ----------------- ----------------
                          As reported -  $    (.05)      $      .04         $      (.12)      $     (.01)
---------------------------------------- --------------- ------------------ ----------------- ----------------
                            Pro-forma -  $    (.05)      $      .03         $      (.12)      $     (.02)
---------------------------------------- --------------- ------------------ ----------------- ----------------
Diluted earnings (loss) per share:
---------------------------------------- --------------- ------------------ ----------------- ----------------
                          As reported -  $    (.05)      $      .03         $      (.12)      $     (.01)
---------------------------------------- --------------- ------------------ ----------------- ----------------
                            Pro-forma -  $    (.05)      $      .02         $      (.12)      $     (.02)
---------------------------------------- --------------- ------------------ ----------------- ----------------
</TABLE>



         The above stock-based employee compensation expense has been determined
         utilizing a fair value method, the Black-Scholes option-pricing model.

         The Company has recorded no compensation expense for stock options
         granted to employees during the three or six months ended June 30, 2003
         and 2002.

         In accordance with SFAS 123, the fair value of each option grant has
         been estimated as of the date of the grant using the Blach-Scholes
         option pricing model with the following weighted average assumptions:

<TABLE>
<CAPTION>
-------------------- ---------------------------------- ----------------------------------------------
                                                        For the Six months Ended June 30,
-------------------- ---------------------------------- ------------------------ ---------------------
                                                                 2003                    2002
                                                                 ----                    ----
-------------------- ---------------------------------- ------------------------ ---------------------
<S>                                                           <C>                    <C>
                     Risk free interest rate                     5.0%                    5.0%
-------------------- ---------------------------------- ------------------------ ---------------------
                     Expected life                             5.0 years              5.0 years
-------------------- ---------------------------------- ------------------------ ---------------------
                     Dividend rate                               0.00%                  0.00%
-------------------- ---------------------------------- ------------------------ ---------------------
                     Expected volatility                         95.2%                  95.2%
-------------------- ---------------------------------- ------------------------ ---------------------
</TABLE>

6.       TRADE RECEIVABLES
         -----------------

                  Included in trade receivables at June 30, 2003 is $525,272 of
         earned but unbilled receivables.


<PAGE>

7.       INVENTORY
         ---------

         Inventory consists of the following:

<TABLE>
<CAPTION>
                                                     June 30, 2003                  December 31,2002
                                                     -------------                  ----------------
<S>                                                  <C>                                <C>
                  Raw Material                       $  368,068                         $  263,237
                  Finished goods                        118,327                            156,527
                                                    -----------                         ----------
                                                     $  486,395                         $  419,764
                                                     ----------                         ----------
</TABLE>



8.       INVESTMENTS
         -----------

                  The following table provides certain summarized unaudited
         financial information related to the Company's equity basis holdings:

<TABLE>
<CAPTION>
                                       Six Months Ended  June 30,
                                      ---------------------------
                                         2003              2002
                                      ---------------------------

<S>                                   <C>               <C>
         Net Sales                    $  94,486         $  49,319

         Gross profit on sales           31,180            32,196
                                      ---------         ---------
         Net  loss                    $(112,787)        $ (84,942)
                                      ---------         ---------
</TABLE>

9.       REVENUE
         -------

                  In 2002 and in previous years a significant portion of the
         Company's revenue had been derived from sales by its subsidiary SRE.
         SRE develops and manufactures certain controls that are added to
         machine parts and supplied to an original equipment manufacturer (OEM).
         Prior to April 1, 2002, the Company was required to supply the machine
         parts (at no mark-up) and the SRE manufactured controller with mark-up
         under this arrangement. The agreement with the OEM was amended at the
         beginning of the second quarter 2002, such that SRE is no longer
         required to supply the machine parts but continues to supply the
         manufactured controller. As a result of this change in the business
         arrangement, CVF no longer records the value of the machine parts in
         its sales or cost of sales. Had this arrangement existed at the
         beginning of 2002, the Company's sales and cost of sales for the first
         quarter 2002 would each have been $1,321,935 lower than the reported
         amount. The change in this arrangement has had no effect on the
         Company's gross margin dollars.


<PAGE>


10.      SERIES B PREFERRED DIVIDENDS
         ----------------------------

                  In accordance with the terms of the Company's Series B
         Convertible Preferred Stock (the "Series B Preferred"), the holder
         thereof is entitled to receive when, as and if declared by the board of
         directors, out of funds legally available for the payment of dividends,
         dividends at the rate of 6% per annum computed on the amount invested
         payable in cash or shares of common stock at the option of the Company
         on June 30 and December 31 each year. The terms of the Series B
         Preferred limit the number of shares that may be issued in payment of
         such dividend and the maximum amount of shares have previously been
         issued in satisfaction of the dividend. In accordance with its terms,
         no further common shares may be issued in payment of dividends on the
         Series B Preferred. The Company has determined that in accordance with
         the Nevada General Corporation Law with respect to dividends accrued
         and unpaid as of June 30, 2003 of $439,216, there are no funds legally
         available for payment. By the terms of the Series B preferred, the
         dividend rate computed on the liquidation preference thereof ($3.42
         million) increases from 6% to 10% per annum until all accrued and
         unpaid dividends are paid in full. Such higher dividend rate has been
         in effect since July 1, 2002.

               The terms of the Series B preferred provide that any such shares
         outstanding on the third anniversary of issue [October 2002] [the
         "Mandatory Conversion Date"], were to be converted to common stock of
         the Company. However, the terms of the Series B preferred also limit
         the number of shares that can be issued in connection with payment of
         dividends or on conversion. As these would be exceeded on a mandatory
         conversion, no conversion occurred under this provision (note 15).

11.      INTERIM FINANCIAL STATEMENT DISCLOSURES
         ---------------------------------------

                  Certain information and footnote disclosures normally included
         in annual financial statements presented in accordance with generally
         accepted accounting principles have been condensed or omitted from the
         accompanying unaudited interim financial statements. Reference is made
         to the Company's audited financial statements for the year ended
         December 31, 2002 included in the Company's Annual Report on Form
         10-KSB filed with the Securities and Exchange Commission on April 15,
         2003.

12.      IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS
         ----------------------------------------------

         The Company has implemented new accounting standards as follows.

         Accounting for Impairment or Disposal of Long-Lived Assets

         In August 2001, the FASB issued SFAS 144, "Accounting for the
         Impairment or Disposal of Long-Lived Assets". SFAS 144 established a
         single model for the impairment of long-lived asset and broadens the
         presentation of discontinued operations to include a component of an
         entity or defined by APB 30. SFAS 144 is effective for years beginning
         after December 15, 2001. As a result of adopting this
<PAGE>

         standard, the disposal of Dantec is included as the discontinuance of
         an operation. Guarantor's Accounting and Disclosure Requirements for
         Guarantees, Including Indirect Guarantees of Indebtedness of Others

         In November 2002, the FASB issued FASB Interpretation 45, "Guarantor's
         Accounting and Disclosure Requirements for Guarantees, Including
         Indirect Guarantees of Indebtedness of Others." This interpretation
         significantly changes current practice in the accounting for, and
         disclosure of, guarantees. The adoption of this interpretation did not
         have a material impact on the consolidated financial statements.

         Accounting for Stock Based Compensation-Transition and Disclosure

         In December 2002, the FASB issued SFAS 148, "Accounting for Stock-Based
         Compensation Transition and Disclosure." SFAS 148 is effective for
         2003, and increases the disclosure requirements for stock based
         compensation plans. The impact of implementation of SFAS 148 in 2002
         was to increase the Company's proforma stock compensation disclosure in
         the quarterly and annual audited financial statements ended December
         31, 2002.

         New accounting standards that have been issued but not yet adopted by
         the Company and which may have a material effect on the financial
         statements are as follows.

         Consolidation of Variable Interest Entities

         In January of 2003, FASB issued Interpretation No. 46 (FIN 46),
         "Consolidation of Variable Interest Entities." FIN 46 requires
         investors with a majority of the variable interests in a variable
         interest entity ("VIE") to consolidate the entity and also requires
         majority and significant variable interest investors to provide certain
         disclosures about their involvement with entities that qualify as a
         VIE. A VIE is an entity in which the equity investors do not have a
         controlling interest or in which the equity at risk is insufficient to
         finance the entity's activities without receiving subordinated
         financial support from other parties. CVF is currently reviewing its
         portfolio of investments to determine whether any of its investees
         qualify as a VIE. It is possible that the Company's investments in
         Petrozyme and IMT will require consolidation as a VIE, on adoption of
         this standard in the third quarter of 2003.

         Accounting for Asset Retirement Obligations

         In June 2001, the FASB issued SFAS 143, "Accounting for Asset
         Retirement Obligations" SFAS 143 addresses financial accounting and
         reporting for obligations associated with the retirement of tangible
         long-lived assets and the associated asset retirement costs. It
         requires recognition of the fair value of a liability for an asset
         retirement obligation in the period in which it is incurred if a
         reasonable estimate of fair value can be made. This standard is
         effective for the Company's 2003 year. The Company has determined that
         it does not have any asset retirement obligations.


<PAGE>


         Accounting for Derivative Instruments and Hedging

         In May 2003, the FASB issued SFAS 149 "Amendment of Statement 133 on
         Derivative Instruments and Hedging activities". The statement clarifies
         and amends accounting for derivative instruments including certain
         derivative instruments embedded in other contracts and for hedging
         activities under SFAS 133. SFAS 149 is effective for contracts entered
         into or modified after June 30, 2003. The Company is currently
         reviewing the impact of this standard on its financial statements.

         Accounting for Certain Financial Instruments with Characteristics of
         both Assets and Liabilities

         In May 2003, the FASB issued SFAS 150, "Accounting for Certain
         Financial Instruments with Characteristics of both Assets and
         Liabilities". SFAS 150 addresses the accounting for these types of
         freestanding financial instruments: mandatory redeemable shares, put
         options and forward purchase contracts, and instruments that are
         liabilities under this Statement that can be settled for shares. This
         modified after May 31, 2003, and is otherwise effective at the
         beginning after June 15, 2003. The Company is currently reviewing its
         financial instruments to determine the impact of this standard on its
         financial statements.

13.      STOCK OPTIONS AND WARRANTS
         --------------------------

                  During 2002, the Compensation Committee of the Board of
         Directors approved an adjustment to the exercise price for all options
         held by our employees, including executive officers, as well as certain
         consultants. The revised exercise price was established by reference to
         the closing bid price of the Company's common stock on April 16, 2002,
         which was $0.16. Options to purchase approximately 1,415,500 shares of
         common stock were repriced. The repriced options are all fully vested.
         These options are subject to variable plan accounting using the
         intrinsic value method as prescribed by APB-25. As the fair market
         value of the Company's stock as of June 30, 2003 was $0.29, additional
         compensation expense of $182,650 was recorded during the quarter.

         The Company also issued warrants which were priced at $0.16 on April
         16, 2002. The warrants are fully vested and accounted for at their fair
         value at the issue date in accordance with SFAS 123.





<PAGE>


14.      SEGMENTED INFORMATION
         ---------------------

                  The Company has five reportable segments: bioremediation,
         machine controls, precious gem identification, natural horticultural
         and general corporate. In 2002, as a result of growth in the natural
         horticultural segment, as a percentage of consolidated sales, the
         Company reallocated business units to business segments to more
         appropriately group units for chief operating decision purposes and
         reporting in accordance with SFAS 131. This change was applied on a
         retroactive basis. The bioremediation segment consists of one company
         that applies bio-filtration technology to odor and air pollution
         control for environmental applications. The machine controls segment
         designs, manufactures and sells electric motor controls to electric
         vehicle manufacturers. The gem identification segment consists of one
         company that has developed identification and database systems, and
         markets its products and services to the companies in the precious gem
         business, including producers, cutters, distributors and retailers. The
         natural horticultural segment consists of one company that develops,
         manufactures and markets natural fertilizers, insecticides and
         herbicides. The Company's general corporate segment includes one
         company which provides funding and management overview services to the
         holdings. This segment's profits include interest income and gains on
         sales of its various holdings.

         The Company evaluates performance and allocates resources based on
         continuing profit or loss from operations before income taxes,
         depreciation and research and development. The accounting policies of
         the reportable segments are the same as those described in the summary
         of significant accounting policies.

         There are no intersegment sales, transfers, or profit or loss.


         Industry Segments for the Six Months Ended June 30, 2003 and 2002

<TABLE>
<CAPTION>
                              Biorem-        Machine    Identification     Natural        Corporate
                              ediation       Controls      Systems      Horticultural  Administration     Total

<S>                            <C>           <C>           <C>            <C>            <C>            <C>
2003                              $            $             $              $              $                $
----
Sales                          3,106,043       743,728      332,739         245,338              -        4,427,848
Income (Loss) from               459,438     (327,854)     (61,412)       (436,826)      (951,396)      (1,318,050)
continuing operations
before other income
Other income                      29,128       (6,057)     (28,838)                         58,657           52,890
Income (loss) from               488,566     (333,911)     (90,250)       (436,826)      (892,739)      (1,265,160)
continuing operations
before income  taxes

2002
----
Sales                          1,524,236     1,803,497      328,581         252,324              -        3,908,638
Income (Loss) from               264,255     (370,008)       11,282       (281,756)      (820,790)      (1,197,017)
continuing operations
before other income
(expense)
Other income (expense)           (2,121)         3,878     (38,809)               -        226,410          189,358
(Loss) from continuing           262,134     (366,130)     (27,527)       (281,756)      (594,380)      (1,007,659)
operations before income
taxes
</TABLE>


<PAGE>

15.      CONTINGENCIES
         --------------

                  The Company is currently under a routine audit by the Internal
         Revenue Service ("IRS"). Although the audit is routine, the IRS has
         indicated that it will review the treatment of capital loss benefits of
         $2,532,000 claimed in a prior year. No assessments have been issued in
         this matter and the Company believes that it has adequately provided
         for its tax liabilities. Should an adjustment be proposed or assessed,
         the Company would plan to vigorously oppose any material revisions to
         its refunds. Any loss arising from such matter will be recorded when
         determinable.

                    As the Company has not converted its outstanding Series B
         preferred shares to common stock, and the Company has not paid all
         dividends on the Series B preferred shares, the holder of the Company's
         Series B preferred shares has attempted to require that the Company
         redeem the shares at 135% of face value plus accrued and unpaid
         dividends, $4,737,609 at June 30, 2003. The Company has denied the
         redemption request on the basis that the holder does not have a right
         to require such redemption.

         The right of the holder may become disputed and the Company may be
         required to defend its position. While the Company believes that it has
         the right to deny such redemption, the outcome of any such a dispute is
         not determinable with certainty. Any redemptions of preferred shares
         would be subject to the limitations imposed by Nevada corporate law.
         These laws would prevent cash payment on redemption, based on the
         Company's current financial position.

16.      COMMON SHARES ISSUED
         --------------------

                  In January 2003, the Company issued 92,593 shares of its
         common stock in consideration of legal services to the Company. The
         expense associated with this was $25,000 and was accrued as an expense
         in 2002.

17.      DEBT DUE TO OFFICERS AND DIRECTORS OF SUBSIDIARIES
         --------------------------------------------------

                  Included in current portion of long-term debt and in long term
         notes payable - officers and directors - are amounts due to subsidiary
         officers and subsidiary directors totaling $471,234 and $504,628
         respectively at June 30, 2003. These notes accrue interest at varying
         interest rates from Canadian prime interest rate plus 3% or 4%, to
         fixed rates of 5%, 10% or 12%. In conjunction with one of these loans a
         director of one of the subsidiaries received warrants to purchase
         100,000 shares of CVF's common stock at $0.30 per share. These warrants
         expire on December 19, 2003.

<PAGE>

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
         ---------------------------------------------------------


OVERVIEW:

CVF Technologies Corporation ("CVF" or the "Company") is involved in the
business of developing and managing early and expansion stage companies
primarily engaged in the environmental technology sector. CVF's mandate is to
acquire significant holdings in new and emerging technology companies and then
to assist them in their management, and through them to engage in their
respective businesses. CVF's current holdings include investments made in its
investee companies during the period from 1989 to the present.

CVF's mandate is to generate revenues and profits through consolidation of the
operating results of its investee companies. CVF also endeavors to realize gains
through the eventual sale of all or a portion of its holdings in these companies
at such time as management determines that CVF's funds can be better deployed in
other industries or companies. CVF's goal is to maximize the value of its
holdings in its investee companies for the Company's shareholders. One important
way that CVF accomplishes this is by taking an investee company public at the
appropriate time. This has been done with the investee companies Certicom
Corporation and TurboSonic Technologies, Inc. CVF plans to offer its
shareholders the opportunity to directly participate in public offerings of its
investee companies, where this is considered appropriate.

After CVF's initial investment, an investee company often requires additional
capital to meet its business plan. Consequently, the Company actively assists
its investee companies in obtaining additional capital which is usually sourced
through CVF's own resources or via other participants.


RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2003 COMPARED TO THE
THREE MONTHS ENDED JUNE 30, 2002:

Consolidated sales of CVF subsidiaries for the three months ended June 30, 2003
amounted to $2,868,990, representing an increase of $1,376,313 (92%) compared to
sales of $1,492,677 for the same period in 2002. On a stand-alone basis, CVF has
no sales from operations. Sales and gross profit from sales reflect the
operations of CVF's consolidated subsidiaries only. The consolidated
subsidiaries are Biorem Technologies Inc. ("Biorem"), Gemprint(TM) Corporation
("Gemprint"), SRE Controls Inc. ("SRE"), Ecoval Corporation ("Ecoval"), and CVF
Capital Management Corporation ("CVF Capital Management"). CVF records profit
and loss using the equity method for companies in which CVF holds 50% to 20%
ownership. These companies are Petrozyme Technologies Inc. ("Petrozyme") and IMT
Systems ("IMT"). The results of RDM Corporation ("RDM") and TurboSonic
Technologies Inc. ("TurboSonic"), companies in which CVF has less than 20%
ownership, are not included in the Consolidated Statement of Operations

For the three months ended June 30, 2003, Biorem's sales increased by $1,293,030
or 146% compared to the same quarter of 2002. This increase was mainly due to a
major installation currently on-going at a food processing plant in Ontario,
Canada. SRE's sales increased in the 2003 period by $42,604 or 15% from the 2002
period. In response to new products SRE has seen an improved general sales
outlook. Gemprint's sales increased by $29,216 or 18% compared to the same
quarter of 2002. Ecoval's sales increased by $11,463 or 7% compared to the same
quarter of 2002.

CVF's gross margin of $988,569 for the second quarter of 2003 represents an
increase of $308,203 (45%) from the same period last year. This increase is
mainly due to Biorem which had $347,841 higher gross margin in the second
quarter of 2003 due to higher sales volumes. Also SRE had $28,230 higher gross
margin in the second quarter of 2003 as SRE moves to selling new higher margin
products. Gross margin of CVF as a percentage of sales decreased to 34.5% for
the second quarter of 2003 from 45.6% for the second quarter of 2002. This gross
margin percentage decrease is attributable to Biorem where a major installation
is underway with lower than normal gross margin percentages.

<PAGE>

Selling, general and administrative expenses on a consolidated basis for the
three months ended June 30, 2003 amounted to $1,485,120, representing an
increase of $313,160 (27%) compared to expense of $1,171,960 for the same period
in 2002. Of this increase, $182,650 is due to compensation expense recorded due
to the increase in the market price of CVF common stock. Other increases in
expenses relate to the sales increase at Biorem. Management continues to
undertake a concerted effort to effect an overall reduction in administrative
costs. Over the past year CVF has undertaken many initiatives to lower the
Company's expenses. (See further discussion in the Liquidity and Capital
Resources section).

Research and development expenses for the second quarter of 2003 amounted to
$45,601 compared to $93,204 incurred in the comparable 2002 period, or a
decrease of $47,603 (51%). Spending was decreased at most of the investee
companies after higher levels in the first quarter of 2003.

Net interest expense decreased to $28,784 for the second quarter of 2003
compared to net interest expense of $34,040 for the second quarter of 2002. This
decrease is due to higher cash balances on hand in the 2003 period compared to
the 2002 period requiring less borrowings.

Gain on sale of holdings amounted to $288 in the 2003 period compared to $63,491
in the 2002 period. In the 2002 period the Company sold a significant portion of
its holdings in RDM and TurboSonic. The remaining holdings are relatively small
and are not expected to contribute significant gains to the Company.

Recovery of income taxes amounted to $33,868 in the 2003 period compared to a
recovery of $446,049 in the 2002 period. During the 2002 period the Company
received a significant U.S. federal income tax refund.

Minority interest portion of the loss decreased to $47,278 in the second quarter
of 2003 from $47,914 in the comparable 2002 period. This amount in both periods
is related to Gemprint and SRE, which both incurred losses during the quarter.

Loss from operations of discontinued business was a $4,989 income in the 2002
period. This reflects Dantec's 2002 income for the second quarter 2002.

Gain on discontinuance of business in the 2002 period reflects the gain recorded
on the sale of CVF's interest in Dantec on April 19, 2002.

CVF on a consolidated basis recorded a net loss of $444,363 for the three months
ended June 30, 2003 resulting from the operations described above. This compares
to a net income of $474,898 incurred in the corresponding period of 2002. It
should be noted that the income in the 2002 period was due to the recovery of
income taxes which was $412,181 higher in the 2002 period, the gain on the sale
of Dantec which totaled $516,245 in the 2002 period, and $63,491 due to gain on
sale of holdings in the 2002 period. By excluding these nonrecurring items
(income tax refund, Dantec sale gain, and sale of holdings gain) from 2002 and
2003, the 2002 loss would have been $550,887 or $72,368 higher than the 2003
loss of $478,519.

RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2003 COMPARED TO THE SIX
MONTHS ENDED JUNE 30, 2002:

Consolidated sales of CVF for the six months ended June 30, 2003 amounted to
$4,427,848, representing an increase of $519,210 (13%) compared to sales of
$3,908,638 for the same period in 2002. Biorem's sales increased by $1,581,807
or 104% compared to the same period of 2002. This increase was mainly due to a
major installation currently on-going at a food processing plant in Ontario,
Canada. SRE's sales decreased in the 2003 period by $1,059,769 (59%) from the
2002 period. SRE develops and manufactures certain controls that are added to
machine parts and supplied to an original equipment manufacturer (OEM). Prior to
April 1, 2002, the company was required to supply the machine parts (at no
mark-up) and the SRE manufactured controller with mark-up under this
arrangement. The agreement with the OEM was amended at the beginning of the 2002
second quarter, such that SRE was no longer required to supply the machine parts
but continued to supply the manufactured controller. As a result of this change
in the

<PAGE>

business arrangement, CVF no longer records the value of the machine parts in
its sales or cost of sales. Had this arrangement changed at the beginning of the
2002 first quarter, the Company's sales and cost of sales for the 2002 quarter
would each have been $1,321,935 lower than the reported amount. (or SRE's sales
would be $262,166 or 54 % higher in the 2003 period compared to the 2002
period). The change in this arrangement has had no effect on the Company's gross
margin dollars.

CVF's gross margin of $1,727,328 for the first six months of 2003 represents an
increase of $581,690 (51%) from the same period last year. Gross margin as a
percentage of sales increased to 39.0% for the first six months of 2003 from
29.3% for the first six months of 2002. This increase in the more recent period
is mainly due to the change in the business arrangement at SRE with one of its
customers (as previously discussed) had an effect of increasing the gross margin
percentage. If this change had occurred at the beginning of 2002 the overall
gross margin percentage for the 2002 period would have been 44.3% instead of
29.3%.

Selling, general and administrative expenses on a consolidated basis amounted to
$2,868,748 for the first six months of 2003. This represents an increase of
$715,355 or 33% over the first six months of 2002.

The increase in expenses generally relate to the sales increase at Biorem. Of
this increase, $112,650 is due to one of the Company's subsidiaries settling a
claim with a former officer. Management continues to undertake a concerted
effort to effect an overall reduction in administrative costs. Over the past 9
months CVF has undertaken many initiatives to lower the Company's expenses. (See
further discussion in the Liquidity and Capital Resources section).

Research and development expenses for the six months ended June 30, 2003 were
$176,630 compared to $189,262 in the 2002 period, or a decrease of $12,632 (7%).
The largest decrease in spending was at SRE (an $39,900 or 34% decrease) as in
2002 SRE was developing a significant new product requiring a significant amount
of R&D.

Net interest expense for the first six months of 2003 increased to $73,562 from
$58,700 in the 2002 period. This increase in expense is due to lower average
cash balances invested during the 2003 period.

Losses of CVF from equity holdings (entities in which CVF has a 50% or less
ownership) decreased to $nil in the 2003 period from $28,235 in the 2002 period.
CVF's investment in its equity holdings was reduced to zero in prior periods and
CVF did not invest or guarantee any additional amounts in respect to these
companies in the 2003 period.

Gain on sale of holdings amounted to $7,194 in the 2003 period compared to
$253,997 in the 2002 period. In the 2002 period the Company sold a significant
portion of its holdings in RDM and TurboSonic. The remaining holdings are
relatively small and are not expected to contribute significant gains to the
Company.

Recovery of income taxes amounted to $64,142 in the 2003 period compared to a
recovery of $474,494 in the 2002 period. During the 2002 period the Job Creation
and Worker Assistance Act of 2002 was signed into law which included changing
the carryback period for net operating losses from 2 years to 5 years. Due to
this change in law the company filed its 2001 tax return along with a refund
application.

Minority interest portion of the loss increased to $127,938 in the 2003 period
from $95,646 in the comparable 2002 period. This amount in both periods is
related to Gemprint and SRE, which both incurred losses during the period.

Loss from operations of discontinued business was a $111,762 loss in the 2002
period. This reflects Dantec's 2002 loss for the 2002 period.

Gain on discontinuance of business in the 2002 period reflects the gain recorded
on the sale of CVF's interest in Dantec on April 19, 2002.

<PAGE>

CVF recorded a net loss of $1,073,080 for the six months ended June 30, 2003
resulting from the operations described above. This compares to a net loss of
$33,036 incurred in the corresponding period of 2002. It should be noted that
the net loss in the 2002 period included the recovery of income taxes which was
$410,352 higher in the 2002 period, the gain on the sale of Dantec which totaled
$516,245 in the 2002 period, and the gain on sale of holdings which was $246,803
higher in the 2002 period. By excluding these nonrecurring items (income tax
refund, Dantec sale gain, and sale of holdings gain) from 2002 and 2003, the
2002 net loss would have been $1,277,772 or $133,356 higher than the 2003 net
loss of $1,144,416.


LIQUIDITY AND CAPITAL RESOURCES:

Stockholders' deficit as of June 30, 2003 amounted to $2,473,452 compared to a
deficit of $966,775 at December 31, 2002. This net increase in the deficit of
$1,506,677 is primarily attributable to a net loss of $1,073,080 which was
recognized in the same period, an increase in accumulated other comprehensive
loss of $442,258 (mainly attributable to foreign exchange adjustments) and
dividends accrued during the period totaling $168,622. This was offset somewhat
by the increase in the market price of CVF common stock and the resulting stock
option compensation expense recorded totaling $182,650.

The current ratio of CVF at June 30, 2003 is .50 to 1, which is almost unchanged
from .51 to 1 at December 31, 2002.

CVF management anticipates that over the next twelve month period CVF should
have sufficient cash from various sources to sustain itself. Between cash on
hand, the issuance of new securities, and the sales of a portion of its holdings
in certain investee companies, the Company expects to have enough cash to fund
itself and certain of its investee companies that are currently not profitable.
Additionally, CVF has minimal outside debt and a line of credit could be sought.

Over the past two years CVF has undertaken many initiatives to lower the parent
company's expenses. These initiatives have included lowering the head count of
its office staff as well as the elimination of one executive position. The use
of consultants has been significantly reduced except those consultants who have
been satisfied to receive their fee in CVF common shares. Travel and
entertainment has been significantly reduced over the last year and will
continue at the reduced level going forward. CVF management has adopted a very
aggressive cost and expenditure controls and monitoring policy. In accordance
with Nevada law and the terms of the Series B Preferred Stock, the Company has
not paid certain dividends on its Series B Preferred shares and has refused the
demand of the holder for conversion or redemption of such shares.

The Company no longer anticipates having to fund Gemprint or Biorem as both are
currently operating on positive cash flow, although no assurances can be given
that this trend will continue.

As at June 30, 2003 the cash balance was $1,032,885 which is an increase of
$814,882 compared to December 31, 2002. The Company has taken steps to reduce
its operating cash requirements to the range of $120,000 monthly. The primary
source of cash for the Company is expected to be from sale of a portion of its
investments in it subsidiaries or from CVF issuing additional securities. The
company is pursuing opportunities to raise funds from potential investors in
CVF. In addition, certain subsidiaries are producing a positive cash flow and
will be able to supplement other cash requirements. If the above mentioned
liquidity events do not occur, the Company estimates that it could run out of
operating cash in the second quarter of 2004, if other sources of cash are not
available. The Company will also continue to assist its investee companies in
their efforts to obtain outside financing in order to fund their growth and
development of their business plans. Certain of the Company's financial
obligations included in current liabilities related to items that will not be
paid in the near term. The Company will carefully manage its cash payments on
such obligations.

<PAGE>

CRITICAL ACCOUNTING POLICIES:

An understanding of CVF's accounting policies is necessary for a complete
analysis of our results, financial position, liquidity and trends. We focus your
attention on the following accounting policies of the Company:

Going concern - These consolidated financial statements have been prepared on a
going concern basis, which presumes that assets will be realized and liabilities
discharged in the normal course of business over the foreseeable future. The
Company's current liabilities exceed its current assets and the Company has
incurred losses over the year and for the past five years, which have reduced
the Company's cash reserves, and depleted stockholders' equity. Further, the
Company has contingent liabilities. These conditions raise substantial doubt
about the consolidated Company's ability to continue in the normal course of
business as a going concern.

The Company's primary need for cash is to maintain its ability to support the
operations and ultimately the carrying values of certain of its individual
investee companies. The Company is actively pursuing the sale of a portion of
its interests in two of its investee companies as a source of funds, and
reduction of cash flow needs. The Company will continue to assist its investee
companies in their efforts to obtain outside financing in order to fund the
growth and development of their respective businesses and has taken steps to
reduce the operating cash requirements of the parent company and its investees.
The Company is also seeking outside investment. There is no assurance that these
initiatives will be successful or that the Company or certain of its investees
will have adequate cash resources and capital to be able to continue as going
concerns.

The Company's ability to continue to realize assets and discharge liabilities in
the normal course is uncertain and dependent on these and other initiatives. The
accompanying financial statements do not include any of the adjustments to the
amounts or classification of assets and liabilities that might be necessary
should the Company be unable to continue its business in the normal course.

Revenue recognition - Revenue from the sale of manufactured products is
recognized when the goods are shipped and accepted by the customer. The Company
recognizes revenue on long-term contracts on the percentage of completion basis,
based on costs incurred relative to the estimated total contract costs. Losses
on such contracts are accrued when the estimate of total costs indicates that a
loss will be realized. Contract billings in excess of costs and accrued profit
margins are included as deferred revenue, which is part of current liabilities.
Service revenue is recognized when the services are performed.

Inventory - Finished goods are stated at the lower of cost or market using the
first-in, first-out method of costing. Raw materials are stated at the lower of
cost or replacement value, using the first-in, first-out method.

Goodwill - In June 2001, the FASB issued SFAS No. 141, "Business Combinations"
and SFAS No. 142, "Goodwill and Other Intangible Assets". SFAS No. 141 requires
that the purchase method of accounting be used for all business combinations
initiated after June 30, 2001. SFAS No. 141 also specifies criteria which
intangible assets acquired in purchase method business combinations after June
30, 2001 must meet to be recognized and reported apart from goodwill. SFAS No.
142 addresses the initial recognition and measurement of intangible assets
acquired outside of a business combination and the accounting for goodwill and
other intangible assets subsequent to their acquisition. SFAS No. 142 requires
that intangible assets with finite useful lives be amortized, and that goodwill
and intangible assets with indefinite lives no longer be amortized, but instead
be tested for impairment at least annually.

The Company adopted the provisions of SFAS No. 141 on July 1, 2001. Such
adoption had no effect on the Company's financial position or results of
operations. The Company adopted the provisions of SFAS No. 142 effective January
1, 2002, at which time the amortization of the Company's existing goodwill
ceased. The new standard also required that the Company test the goodwill for
impairment. Any impairment, arising from the test, is charged to income. As of
December 31, 2002 the Company's goodwill was tested and the Company calculated
that no impairment existed at that time. No further circumstances

<PAGE>

have arisen during the second quarter of fiscal 2003 that would indicate an
impairment of goodwill has occurred subsequent to year end.

Intangible assets with finite useful lives are amortized over their estimated
useful lives. Intangible assets are reviewed for impairment when there are
indications that the carrying value of an asset may not be recoverable over its
estimated useful life. Impairment testing involves estimating the fair value of
intangible assets using anticipated future cash flows and comparing the fair
value to the carrying value of the asset. The Company's only intangible asset is
acquired technology of Ecoval which is amortized over 5 years.

Contingencies - the Company is currently under a routine audit by the Internal
Revenue Service ("IRS"). As part of the routine audit, the IRS has indicated
that they will review the treatment of capital losses claimed in the prior year
and refunds of $2,532,000 received in 2001. No assessments have been issued in
this matter and the Company is unable to determine the likelihood of adjustments
if any to prior year tax refunds. Should an adjustment be proposed or assessed,
management intends to defend the matter vigorously. The resolution of this
matter may require several years.

As the Company has not converted its outstanding Series B shares to common
stock, and the Company has not paid all dividends on the Series B shares, the
holder of the Company's Series B preferred stock has attempted to require that
the Company redeem the shares at 135% of face value plus accrued and unpaid
dividends, $4,737,609 at June 30, 2003. The Company has denied the redemption
request. The ultimate right of the holder may become disputed and the Company
may be required to defend its position. While the Company believes that it has
the right to deny such redemption, the ultimate outcome of any such a dispute is
not determinable with certainty. Any redemptions of preferred shares would be
subject to the limitations imposed by Nevada corporate law. These laws would
restrict a cash payment on redemption, based on the Company's current financial
position.

Stock Options/Warrants - The Compensation Committee of the Board of Directors
approved an adjustment to the exercise price for all options held by our
employees, including executive officers, as well as certain consultants. The
revised exercise price was established by reference to the closing bid price of
the Company's common stock on April 16, 2002, which was $0.16. Options to
purchase approximately 1,415,500 shares of common stock were repriced, resulting
in the "variable" method for determining compensation expense being implemented
under APB 25. Under this method, expense is recorded for the quoted market price
of the stock issued or, in the case of options, for the difference between the
stock's quoted market price on the date of grant and the option exercise price.
Increases and decreases (but not below the fair value of the stock at the date
of the change in exercise price) in the quoted market price of the stock between
the date of grant and the measurement date result in a change in the measure of
compensation for the award. As the stock price at June 30, 2003 was $0.29,
additional compensation expense of $182,650 was recorded during the period.

The Company also issued warrants which were priced at $0.16 on April 16, 2002.
The warrants are fully vested and subject to fair value accounting in accordance
with SFAS 123.


FINANCIAL CONSIDERATIONS:

Early Stage Development Companies. Each of the investees is an early stage
development company with a limited relevant operating history upon which an
evaluation of its prospects can be made. As such, there can be no assurance of
the future success of any of the investees.

Quarterly Fluctuations. CVF's financial results have historically been, and will
continue to be, subject to quarterly and annual fluctuations due to a variety of
factors, primarily resulting from the nature of the technology companies in
which it invests. Any shortfall in revenues in a given quarter may impact CVF's
results of operations due to an inability to adjust expenses during the quarter
to match the level of revenues for the quarter. There can be no assurance that
CVF will report income in any period in the future. While some of CVF's
investees have consistently reported losses, CVF has recorded income in certain
fiscal

<PAGE>

periods and experienced fluctuations from period to period due to the
sale of some of its holdings, other one-time transactions and similar events.

Rapid Technological Change. The markets for CVF's investees products are
generally characterized by rapidly changing technology, evolving industry
standards, changes in customer needs and frequent new product introductions. The
future success of the investees will depend on their ability to enhance current
products, develop new products on a timely and cost-effective basis that meet
changing customer needs and to respond to emerging industry standards and other
technological changes. There can be no assurance that the investees will be
successful in developing new products or enhancing their existing products on a
timely basis, or that such new products or product enhancements will achieve
market acceptance.

FORWARD LOOKING STATEMENTS:

CVF believes that certain statements contained in this Quarterly Report on Form
10-QSB constitute "forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause
the Company's actual results, performance or achievements to vary materially
from the Company's expected results, performance or achievements. These factors
include, among others, the following:

     -    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.
     -    the Company's ability to satisfy or otherwise manage its obligations
          under its Series B Preferred Stock including its obligation to redeem
          such stock for cash, convert such stock to common shares or pay
          dividends thereon.

The Company will not update any forward-looking statements to reflect actual
results or changes in the factors affecting the forward-looking statements.

Item 3. Controls and Procedures

          (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 Office 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.
               Disclosure controls and procedures are controls and procedures
               that are designed to ensure that information required to be
               disclosed in Company reports filed or submitted under the
               Exchange Act is recorded, processed, summarized and reported
               within the time periods specified in the SEC rules and forms.

          (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..

<PAGE>

PART II - OTHER INFORMATION

Item 3. Changes in Securities

         As the Company has not converted its outstanding Series B preferred
shares to common stock, and the Company has not paid all dividends on the Series
B preferred shares, the holder of the Company's Series B preferred stock has
attempted to require that the Company redeem the shares for 135% of outstanding
face value plus accrued and unpaid dividends, or $4,737,609 at June 30, 2003.
The Company has denied the redemption request on the basis that the holder does
not have a right to require such redemption. The right of the holder may become
disputed and the Company may be required to defend its position. While the
Company believes that it has the right to deny such redemption, the outcome of
any such a dispute is not determinable with certainty. Any redemption of
preferred shares would be subject to the limitations imposed by Nevada corporate
law. These laws would prevent cash payment on redemption, based on the Company's
current financial position. The amount of dividends in arrears, relating to the
Series B shares, as of June 30, 2003 total $433,072 and as of the date of filing
of this report (August 14, 2003) total $474,805.





Item 6. Exhibits and Reports on Form 8-K

        (a)     Exhibits

        (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

        (b)     Reports on Form 8-K.

                        The Company filed a Current Report on Form 8-K on July
                        1, 2003 and an amendment to that report on July 9, 2003
                        in connection with the dismissal of its auditors.










<PAGE>



 SIGNATURES

                  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.

DATED:    August 14, 2003


                                       CVF TECHNOLOGIES CORPORATION



                                       By:    /s/ Jeffrey I. Dreben
                                          -----------------------------------
                                       Name:  Jeffrey I. Dreben
                                       Title: Chairman of the Board, President
                                                and Chief Executive Officer

                                       By:   /s/ Robert L. Miller
                                          -----------------------------------
                                       Name:  Robert L. Miller
                                       Title: Chief Financial Officer






<PAGE>




                                  EXHIBIT INDEX

 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

(b)     Reports on Form 8-K.

        The Company filed a Current Report on Form 8-K on July 1, 2003 and an
        amendment to that report on July 9, 2003 in connection with the
        dismissal of its auditors.