WILLIAMSVILLE, N.Y., Nov. 15 /PRNewswire-FirstCall/ -- CVF Technologies Corporation (OTC:CNVT) (BULLETIN BOARD: CNVT) a holding company that is involved in the business of developing and managing early stage companies primarily engaged in the clean-tech sector today reported financial results for the third quarter 2007. Third Quarter 2007 Financial Results -- CVF's financial results can best be understood by examining the growth prospects for its portfolio companies. In this report CVF will again emphasize the potential of its portfolio companies. Judging CVF on its income statement alone is not very helpful due to significant changes in revenue and income that can occur from quarter to quarter and from year to year. An example of how this revenue fluctuation can occur is when CVF's ownership interest in one of its portfolio companies goes below 50%. The portfolio company may still have significant revenue as does Biorem whose revenue was cdn $2,547,000 for the third quarter 2007 and cdn $6,532,000 for the first nine months of 2007. However that revenue is not shown in CVF's income statement. It is therefore important to focus on CVF's business model which is to invest its capital and human resources primarily in early stage, clean-tech companies with significant growth potential. The intent is to develop these companies until they either go public as did Biorem in January 2005, or are acquired as was Gemprint in December 2005. When these events occur there will be a significant increase in CVF's income, as there was in 2005, when Gemprint was sold, and in 2004, when CVF realized gains on Biorem. In order to pass this realization of value to its shareholders CVF may initiate a stock repurchase program as it did in 2006, when it repurchased a total of $1,626,400 of its preferred and common shares, or it may decide to issue dividends to its shareholders. Portfolio Highlights -- Biorem -- (24% owned by CVF) had revenue of cdn $2,547,000 in the third quarter 2007 (which is not included in CVF's consolidated revenue due to GAAP accounting rules). The Company's long sales cycle and the variability in the size of the Company's orders may cause revenue fluctuations period to period. The reduced bookings toward the end of 2006 slowed the revenue in 2007, however the majority of the new business opportunities remain intact and Biorem expects those opportunities to be realized in the months ahead. As of September 30, 2007 the order backlog increased by cdn $500,000 to cdn $9,500,000 from the cdn $9,000,000 reported at the end of the second quarter, the second straight quarter of backlog increase. Also, sales increased to cdn $2,547,400 from cdn $2,214,600 in the prior quarter, representing two consecutive quarters of sales increase. Biorem focused on building its order backlog, cost reduction and price adjustments to improve its gross margin. Biorem is projecting that the sales momentum and backlog increase that has been building for two straight quarters will continue. Since March 1, the Company has been receiving orders at an annualized rate well exceeding cdn $14,000,000. To offset the significant decrease in the value of the US dollar, the Company has been shifting operational and project expenses to the US in order to match the US based orders. Total operating expenses in the quarter of cdn $1,589,000 was up cdn $290,000 or 22% compared to the prior year. The variance is primarily attributable to cdn $227,000 foreign exchange loss, which is reflective of the decrease in the value of US dollar denominated working capital assets. Biorem, at September 30, 2007, had cash and cash equivalents in the amount of cdn $1,938,000 and net working capital of cdn $3,833,000 (which is not included in CVF's consolidated balance sheet due to GAAP accounting rules). The cash balance and the unused credit facilities available to Biorem are considered adequate to fund the future operating requirements of the business. Xylodyne Corporation -- (40% owned by CVF) In March and April of 2006 CVF invested cdn $325,000 in Xylodyne Corporation, a newly formed company which focuses on the development and distribution of 4-wheel drive off road electric vehicles. These vehicles are offered to the personal recreational market as well as to government agencies, conservation authorities and the mining industry. Xylodyne is currently focusing its efforts on building its distribution network for its vehicles in the US and Canada. It has now signed dealers in New York, Delaware, Maryland, Massachusetts, and Ontario as it aggressively builds its US and Canadian dealer network for its electric vehicles. CVF owns 40% of the equity of the company plus holds a two-year note for $313,000 (Cdn) from Xylodyne. Xylodyne achieved sales of $1,391,800 and a loss of $4,900 for the first nine months of 2007. Ecoval -- (85% owned by CVF) The Ecosense herbicide, produced and marketed by Scotts Canada, its licensee, is available in every major retail chain in Canada and has become the leading environmentally friendly herbicide in Canada. Ecoval has also signed an exclusive distribution agreement with Plant Products the largest commercial, non-retail horticultural distributor in Canada for Ecoval's EcoClear herbicide product. The Scotts and Plant Products agreements are expected to make Ecoval's herbicide the dominant product of the non-chemical herbicide products in Canada. Ecoval now plans to leverage off its success in Canada to begin an aggressive marketing campaign in the US as it seeks out partners similar to what has been achieved in Canada. Ecoval is continuing its negotiations with large multinational corporations to offer its herbicide product to the US market in an exclusive distribution agreement. An agreement of this type has the potential to produce significant income to Ecoval in future years. Ecoval hopes to complete these negotiations in the coming months. Ecoval is also in serious negotiations with a number of companies to add additional products. G.P. Royalty Distribution Corporation (formerly Gemprint Corp.) -- (65% owned by CVF) was formed to receive potential royalty distributions from Collectors Universe Corp who purchased the assets of Gemprint in December 2005. The royalty agreement is for $1 for each Gemprint over 100,000 Gemprints per year until December 2010. Based on Collectors Universe's recent press releases they have made their G Cal diamond grading program a core part of their business model and Gemprint is a key component of it. Petrozyme -- (50% owned by CVF) is continuing to explore marketing opportunities for its proprietary biologically based remediation technologies for the petroleum and petrochemical industries. The company is seeking a partnership or licensing agreement with a major North American environmental company as well as licensing agreements in the Middle East. CVF GAAP financial results for the third quarter 2007 -- On a consolidated basis CVF reported a decrease in revenue of $565,200 for the third quarter 2007 due to the decrease in sales from Xylodyne, its new investee company. Net loss for the third quarter 2007 of $810,000 compared to net loss of $420,100 in the third quarter 2006 due primarily to the increased loss at Biorem and foreign exchange losses from the rapid increase in the value of the Canadian dollar. This equates to a loss per share of $0.06 for the third quarter 2007 compared to a loss per share of $0.03 for the third quarter 2006. CVF GAAP financial results for the first nine months 2007 -- On a consolidated basis CVF reported an increase in revenue of $549,900 or 54%. This was due to Xylodyne (the new investee company which began operations in April 2006) sales increasing by $536,600. Loss for the first nine months 2007 was $1,654,000 compared to a loss of $1,648,500 in the first nine months of 2006. This equates to a loss per share of $0.13 for the 2007 first nine months compared to a loss per share of $0.13 for the first nine months of 2006. Included in the first nine months of 2007 is $63,700 of expense due to decline in the US dollar compared to $145,100 in the first nine months of 2006. It should also be noted that Biorem's quarterly revenue of cdn $2,547,400 and its nine month revenue of cdn $6,531,600 is not consolidated in CVF's financial statements as CVF owns less than 50% of Biorem. CVF Technologies Corporation (http://www.cvfcorp.com/) is headquartered in Williamsville, New York. CVF is a technology development company, whose principal business is sourcing, funding and managing emerging pre-public, clean-tech companies with significant market potential. Certain statements made in this press release which are not historical facts are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these statements involve risks and uncertainties, which may cause actual results or achievements to be materially different from any future results and achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, product demand and market acceptance risks for the products and technologies of CVF's subsidiary companies and investees; the impact of competitive products, technologies and pricing; delays or difficulties in developing, producing, testing and selling new products and technologies; the ability of the company's subsidiaries and investees to obtain necessary financing for their operations and to consummate initial public offerings of their stock; the effect of the Company's accounting policies; the effect of trade restrictions and other risks detailed in the company's Statement on Form 10-SB/A filed with the U.S. Securities and Exchange Commission and any subsequent filings with the Commission. For more information please contact: http://www.cvfcorp.com/ DATASOURCE: CVF Technologies Corporation CONTACT: Robert L. Miller, Chief Financial Officer, +1-716-565-4711, or Jeffrey Dreben, President & CEO, +1-716-565-4711, both of CVF Technologies Corporation Web site: http://www.cvfcorp.com/

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