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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
  CVF TECHNOLOGIES CORPORATION
  NEVADA
    
    0-29266
    
    87-0429335(State or other jurisdiction
of incorporation or organization)
    
    (Commission File
Number)
    
    (I.R.S. Employer
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)June 30,
    
    
    December 31,2006
    
    
    2005(unaudited)
    
    
    (audited)ASSETSCURRENT ASSETS:Cash and cash equivalents
    
    $
    2,279,316
    
    
    $
    3,793,577Restricted cash
    
    
    1,156,783
    
    
    
    2,724,316Trade receivables
    
    
    74,648
    
    
    
    11,005Loans receivable
    
    
    16,126
    
    
    
    Inventory
    
    
    143,299
    
    
    
    9,932Prepaid expenses and other
    
    
    76,994
    
    
    
    31,660TOTAL CURRENT ASSETS
    
    
    3,747,166
    
    
    
    6,570,490Property and equipment, net of accumulated depreciation
    
    
    14,012
    
    
    
    5,699Loans receivable
    
    
    142,251
    
    
    
    142,251Equity investment & notes receivable in Biorem (see Note 3)
    
    
    489,964
    
    
    
    626,000Holdings available for sale, at market
    
    
    23,726
    
    
    
    1,058TOTAL ASSETS
    
    $
    4,417,119
    
    
    $
    7,345,498LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIES:Notes payable  other
    
    $
    
    
    
    $
    25,000Accounts payables and accrued liabilities
    
    
    2,026,720
    
    
    
    2,260,153TOTAL CURRENT LIABILITIES
    
    
    2,026,720
    
    
    
    2,285,153LONG-TERM LIABILITIES:Deferred income taxes
    
    
    92,202
    
    
    
    87,424Minority interest
    
    
    910,144
    
    
    
    916,936Pension obligation
    
    
    627,040
    
    
    
    614,898TOTAL LONG-TERM LIABILITIES
    
    
    1,629,386
    
    
    
    1,619,258Redeemable 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
    
    
    
    63,4553,719,561
    
    
    
    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,
12,674,535 issued (2005; 13,820,396) and in
treasury 1,627,561 (2005; 481,700)
    
    
    14,302
    
    
    
    14,302Warrants
    
    
    111,094
    
    
    
    111,094Additional paid in capital
    
    
    29,546,562
    
    
    
    30,620,178Treasury stock
    
    
    (3,200,728
    )
    
    
    (2,747,174
    )Accumulated other comprehensive loss
    
    
    (142,879
    )
    
    
    (220,190
    )Accumulated deficit
    
    
    (25,630,793
    )
    
    
    (24,400,678
    )TOTAL STOCKHOLDERS EQUITY
    
    
    697,558
    
    
    
    3,377,632TOTAL
LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    4,417,119
    
    
    $
    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 June 30,
    
    
    Six months ended June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005SALES
    
    $
    179,652
    
    
    $
    98,879
    
    
    $
    200,320
    
    
    $
    248,022Cost of sales
    
    
    113,327
    
    
    
    33,643
    
    
    
    128,207
    
    
    
    73,591GROSS MARGIN
    
    
    66,325
    
    
    
    65,236
    
    
    
    72,113
    
    
    
    174,431EXPENSES:Selling, general and administrative
    
    
    616,416
    
    
    
    400,219
    
    
    
    1,111,259
    
    
    
    859,311TOTAL EXPENSES
    
    
    616,416
    
    
    
    400,219
    
    
    
    1,111,259
    
    
    
    859,311(Loss) from continuing operations before under noted items
    
    
    (550,091
    )
    
    
    (334,983
    )
    
    
    (1,039,146
    )
    
    
    (684,880
    )OTHER (EXPENSES) INCOMEInterest income (expense), net
    
    
    29,597
    
    
    
    17,905
    
    
    
    80,181
    
    
    
    (6,081
    )(Loss) income from equity investees
    
    
    (143,355
    )
    
    
    39,110
    
    
    
    (190,607
    )
    
    
    66,518Other (expense), net
    
    
    (132,336
    )
    
    
    (8,974
    )
    
    
    (136,817
    )
    
    
    (24,343
    )Gain on sale of holdings
    
    
    
    
    
    
    75,222
    
    
    
    
    
    
    
    798,874TOTAL OTHER INCOME (EXPENSE)
    
    
    (246,094
    )
    
    
    123,263
    
    
    
    (247,243
    )
    
    
    834,968Income (Loss) before income taxes and minority interest
    
    
    (796,185
    )
    
    
    (211,720
    )
    
    
    (1,286,389
    )
    
    
    150,088Income taxes (recovery)
    
    
    589
    
    
    
    (36,723
    )
    
    
    2,332
    
    
    
    (73,629
    )Income (Loss) before minority interest
    
    
    (796,774
    )
    
    
    (174,997
    )
    
    
    (1,288,721
    )
    
    
    223,717Minority interest in loss
    
    
    49,220
    
    
    
    
    
    
    
    60,333
    
    
    
    NET INCOME (LOSS)
    
    $
    (747,554
    )
    
    $
    (174,997
    )
    
    $
    (1,228,388
    )
    
    $
    223,717BASIC INCOME (LOSS) PER SHARE
    
    $
    (0.06
    )
    
    $
    (0.01
    )
    
    $
    (0.09
    )
    
    $
    0.02DILUTED INCOME (LOSS) PER SHARE
    
    $
    (0.06
    )
    
    $
    (0.01
    )
    
    $
    (0.09
    )
    
    $
    0.02WEIGHTED SHARES USED IN COMPUTATION  BASIC
    
    
    12,942,638
    
    
    
    13,820,396
    
    
    
    13,177,491
    
    
    
    13,816,146WEIGHTED SHARES USED IN COMPUTATION  DILUTED
    
    
    12,942,638
    
    
    
    13,820,396
    
    
    
    13,177,491
    
    
    
    13,870,957




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CVF TECHNOLOGIES CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF CASH FLOWS
 (UNAUDITED)
 (Expressed in U.S. Currency)Six Months Ended June 30,2006
    
    
    2005CASH FLOW FROM OPERATING ACTIVITIES:Net income (loss) from continuing operations
    
    $
    (1,228,388
    )
    
    $
    223,717Adjustments to reconcile net loss
from operating activities:Depreciation and amortization
    
    
    1,593
    
    
    
    7,747Minority interest in losses of subsidiaries
    
    
    (60,333
    )
    
    
    (81,993
    )Pension expense
    
    
    12,142
    
    
    
    (24,712
    )Deferred income tax
    
    
    4,778
    
    
    
    Stock option compensation
    
    
    (4,200
    )
    
    
    (44,300
    )Issuance of restricted stock
    
    
    53,950
    
    
    
    Loss (income) from equity investees
    
    
    190,607
    
    
    
    (66,518
    )Changes in non-cash working capital itemsDecrease (increase) in trade receivables
    
    
    (63,643
    )
    
    
    24,995(Increase) in loans receivables
    
    
    (16,126
    )
    
    
    (Increase) decrease in inventory
    
    
    (133,367
    )
    
    
    3,429(Increase) in prepaid expenses and other
    
    
    (45,334
    )
    
    
    (237
    )(Decrease) in trade payables and accrued liabilities
    
    
    (228,655
    )
    
    
    (237,734
    )(288,588
    )
    
    
    (419,323
    )CASH (USED IN) OPERATING ACTIVITIES
    
    
    (1,516,976
    )
    
    
    (195,606
    )CASH FLOWS FROM INVESTING ACTIVITIES:Proceeds from sale of holdings
    
    
    
    
    
    
    144,383CASH PROVIDED BY INVESTING ACTIVITIES
    
    
    
    
    
    
    144,383CASH FLOWS (USED) FROM FINANCING ACTIVITIES:Redemption of Series C preferred shares
    
    
    (1,121,667
    )
    
    
    Purchase of treasury shares
    
    
    (453,554
    )
    
    
    Repayment of debt
    
    
    (25,000
    )
    
    
    (4,991
    )Exercise of stock options
    
    
    
    
    
    
    23,200Purchase of public company shares
    
    
    (51,586
    )
    
    
    CASH PROVIDED (USED IN) BY FINANCING ACTIVITIES
    
    
    (1,651,807
    )
    
    
    18,209EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS
    
    
    86,989
    
    
    
    56,904NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
    
    
    (3,081,794
    )
    
    
    23,890CASH AND CASH EQUIVALENTS  beginning of period
    
    
    6,517,893
    
    
    
    112,648CASH AND CASH EQUIVALENTS  end of period
    
    $
    3,436,099
    
    
    $
    136,538




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CVF TECHNOLOGIES CORPORATION AND SUBSIDIARIES
 STATEMENT OF COMPREHENSIVE INCOME
 (UNAUDITED)
 (Expressed in U.S. Currency)Three months ended June 30,
    
    
    Six months ended June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Net Income (loss)
    
    $
    (747,554
    )
    
    $
    (174,997
    )
    
    $
    (1,228,388
    )
    
    $
    223,717Other comprehensive income, net of tax:Foreign currency translation adjustments
    
    
    (1,855
    )
    
    
    37,981
    
    
    
    76,232
    
    
    
    56,604Unrealized holding gains:Unrealized holding losses arising during period
(see note below)
    
    
    967
    
    
    
    161
    
    
    
    1,079
    
    
    
    300Total other comprehensive income
    
    
    (888
    )
    
    
    38,142
    
    
    
    77,311
    
    
    
    56,904Comprehensive income (loss) during period
    
    $
    (748,442
    )
    
    $
    (136,855
    )
    
    $
    (1,151,077
    )
    
    $
    280,621
 
 Note: Unrealized
holding losses are
net of tax (benefit)
of $645 and
$107 for the three
months ended June
30, 2006 and 2005
respectively and
$719 and $200 for
the six months
ended June 30, 2006
and 2005
respectively.




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CVF TECHNOLOGIES CORPORATION AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 SIX MONTHS ENDED JUNE 30, 2006 AND 2005  (UNAUDITED)
  BASIS OF PRESENTATION
    ACCOUNTING POLICIES




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SUBSIDIARY BIOREM GOES PUBLIC
   EQUITY AND DEBT INVESTMENT IN XYLODYNE CORPORATION
  INCOME (LOSS) PER SHARE




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INVENTORY
  June 30, 2006
    
    
    December 31, 2005Finished goods
    
    $
    209,302
    
    
    $
    75,935Less obsolescence reserve
    
    
    (66,003
    )
    
    
    (66,003
    )$
    143,299
    
    
    $
    9,932
 INVESTMENTS
  Six Months Ended June 30,2006
    
    2005Net Sales
    
    $
    5,363,351
    
    
    $
    4,068,283Gross profit on sales
    
    
    1,327,024
    
    
    
    1,613,629Net income (loss)
    
    $
    (830,435
    )
    
    $
    45,732
  SERIES C PREFERRED STOCK REDEMPTION




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STOCK BUYBACK PLAN
  ISSUANCE OF RESTRICTED CVF COMMON SHARES
  INTERIM FINANCIAL STATEMENT DISCLOSURES
  SEGMENTED INFORMATION




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Identification
    
    Natural
    
    Electric
    
    CorporateSystems
    
    Horticultural
    
    Vehicles
    
    Administration
    
    Total$
    
    $
    
    $
    
    $
    
    $2006Sales
    
    
    
    
    
    
    131,985
    
    
    
    68,334
    
    
    
    
    
    
    
    200,319(Loss) from
continuing operations
before other income
    
    
    (102,445
    )
    
    
    (63,469
    )
    
    
    (113,080
    )
    
    
    (760,152
    )
    
    
    (1,039,146
    )Other income (expense)
    
    
    (69,935
    )
    
    
    54,202
    
    
    
    
    
    
    
    (231,510
    )
    
    
    (247,243
    )(Loss) from
continuing operations
before income taxes
    
    
    (172,380
    )
    
    
    (9,267
    )
    
    
    (113,080
    )
    
    
    (991,662
    )
    
    
    (1,286,389
    )2005Sales
    
    
    238,054
    
    
    
    9,968
    
    
    
    
    
    
    
    
    
    
    
    248,022(Loss) from
continuing operations
before other income
(expense)
    
    
    (78,249
    )
    
    
    (23,068
    )
    
    
    
    
    
    
    (583,563
    )
    
    
    (684,880
    )Other income (expense)
    
    
    (47,752
    )
    
    
    (14,095
    )
    
    
    
    
    
    
    896,815
    
    
    
    834,968Income (loss) from
continuing operations
before income taxes
    
    
    (126,001
    )
    
    
    (37,163
    )
    
    
    
    
    
    
    313,252
    
    
    
    150,088
 EQUITY INVESTEE SRE FILES BANKRUPTCY IN MARCH 2005




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CONTINGENCIES
  SUBSEQUENT EVENT




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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
    
    
    $
    46,445.14TOTAL
    
    
    1,145,861
    
    
    $
    0.39
    
    
    
    1,145,861
    
    
    $
    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




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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.