7/30/2019 CVF Technologies Corporation CVF Technologies Reports
Results for First Quarter
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Abstract (Summary)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
itsshareholders. 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.
(c)Copyright 2008, Business & Finance Week via
VerticalNews.com
CVF Technologies Corporation (BULLETIN BOARD: CNVT) a holding
company that is involved in the business ofdeveloping and managing
early stage companies primarily engaged in the clean-tech sector
reported financial results forthe first quarter 2008.
2008 First Quarter Financial Results -- Judging CVF on its
income statement alone is not very helpful due to
significantchanges in revenue and income that can occur from
quarter to quarter and from year to year. An example of how
thisrevenue fluctuation can occur is when CVF's ownership interest
in one of its portfolio companies goes below 50%. Theportfolio
company may still have significant revenue as does Biorem whose
revenue was cdn $3,184,200 for the first quarterended March 31,
2008. However that revenue is not shown in CVF's income statement.
It is therefore important to focus onCVF's business model which is
to invest its capital and human resources primarily in early stage,
clean-tech companies withsignificant growth potential. The intent
is to develop these companies until they either go public as did
Biorem in January2005, 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 wassold. In order
to pass this realization of value to its shareholders CVF may
initiate a stock repurchase program as it did in2006, when it
repurchased a total of $1,626,400 of its preferred and common
shares, or it may decide to issue dividends toits shareholders. It
may also decide to invest some of its funds in its current
portfolio or in new business opportunities.
Portfolio Highlights -- Biorem -- (23% owned by CVF) announced
this week the receipt of a new order in the amount of cdn$3.1
million from the Regional Municipality of York for two in-ground
Biofiltair odor control systems at the Duffin Creek plantin
Pickering, Ontario. BIOREM's Biofiltair system is the technology of
choice for the Region and was pre-selected based onthe Company's
track record of delivering high-quality projects.
"This is an important order for Biorem which leverages our
engineering and process knowledge and continues our evolutionto
larger projects," said Peter Bruijns, Biorem President and CEO.
"The population expansion in Greater Toronto and otherurban areas
across North America continues to create demand for odor control at
public works facilities. We are pleased to
be a leader in this growing market."
Xylodyne Corporation -- (40% owned by CVF) In March and April of
2006 CVF invested cdn $325,000 in XylodyneCorporation, a newly
formed company which focuses on the development and distribution of
4-wheel drive off road electricvehicles. The mission of Xylodyne
Corporation is to further the sales of environmentally friendly
electric vehicles. Xylodynehas two business units: Recreational
Vehicles and Engineering Services. The Recreational Vehicle group
sells and servicesoff road electric vehicles that are targeted at
outdoorsmen but also has applications in the mining and turf care
area. TheEngineering Services group assists companies in the
development of new electric and hybrid vehicles. In 2007,
Xylodyneestablished a joint venture with Ecoval to develop and
market a line of products into Ecoval's sales channels. The first
ofthese initiatives should launch in mid-2008.
Xylodyne is currently focusing its efforts on building its
distribution network for its vehicles in the US and Canada, where
ithas now signed dealers in New York, Delaware, Maryland,
Massachusetts, and Ontario. CVF owns 40% of the equity of the
Databases selected: Multiple databases...
CVF Technologies Corporation; CVF Technologies Reports Results
for First
QuarterAnonymous. Business & Finance Week. Atlanta: May 26,
2008. pg. 304
Full Text (1275 words)
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7/30/2019 CVF Technologies Corporation CVF Technologies Reports
Results for First Quarter
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company plus holds a two year note for cdn $313,000 from
Xylodyne. In 2008 Xylodyne will continue to aggressively workto
expand its dealer network in the northeastern United States and
Canada.
Ecoval -- (85% owned by CVF) The Ecosense herbicide, produced
and marketed by Scotts Canada, its licensee, isavailable 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-retailhorticultural distributor in Canada for
Ecoval's EcoClear herbicide product. The Scotts and Plant Products
agreements areexpected to make Ecoval's herbicide the dominant
product of the non-chemical herbicide category in Canada. Ecoval
nowplans to leverage off its success in Canada to begin an
aggressive marketing campaign in the US as it seeks out
partnerssimilar to what has been achieved in Canada. Ecoval is
continuing its negotiations with several companies to offer
itsherbicide product to the US market in an exclusive distribution
agreement. An agreement of this type has the potential toproduce
significant income to Ecoval in future years. Ecoval hopes to
complete these negotiations in the coming months.Ecoval is also in
serious discussions with a number of companies to add additional
products.
Ecoval will continue to grow its sales by further promotion of
its current product line. This includes supporting the
currentmarketing programs, signing up new distribution partners and
licensees, and entering new markets. Ecoval will also look tocut
expenses through improvements in manufacturing, raw materials cost,
and logistical management. The company isworking on a number of
business development projects to launch new products into Ecoval's
distribution channels, includingthe joint venture with Xylodyne
Corporation.
G.P. Royalty Distribution Corporation -- (formerly Gemprint
Corp,) - (65% owned by CVF) was formed to receive potentialroyalty
distributions from Collectors Universe Corp who purchased the
assets of Gemprint in December 2005. The royaltyagreement is for $1
for each Gemprint over 100,000 Gemprints per year until December
2010. Gemprint is a unique non-
invasive identification system for diamonds. Based on Collectors
Universe's recent press releases, their G Cal diamondgrading
program is described as 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
basedremediation technologies for the petroleum and petrochemical
industries. The company is seeking a partnership or
licensingagreement with a major North American environmental
company as well as licensing agreements in the Middle East.
CVF GAAP financial results for first quarter 2008 -- On a
consolidated basis CVF reported a decrease in revenue of$569,600
for the first quarter 2008 primarily due to a decrease in sales
from Xylodyne, its new investee company. It shouldalso be noted
that Biorem's revenue of cdn $3,184,200 for the first quarter 2008
is not consolidated in CVF's financialstatements as CVF owns less
than 50% of Biorem.
Net loss for the first quarter 2008 was $965,500 compared to a
loss of $437,900 in the first quarter 2007. This equates to aloss
per share of $0.08 for the first quarter 2008 compared to a loss
per share of $0.03 for the first quarter 2007. Most ofthis increase
in the loss was due to adoption of FASB 157 and FASB 159 which
requires recognition of the change in themarket value of the Biorem
shares held by CVF. This translated into a loss of $542,600 which
is recognized in the loss forthe first quarter 2008. Adoption of
FASB 157 and FASB 159 also required CVF to show the market value of
the Bioremshares held by CVF on its balance sheet. The total shown
in the balance sheet on March 31, 2008 is $2,128,500.
CVF Technologies Corporation (www.cvfcorp.com) is headquartered
in Williamsville, New York. CVF is a technologydevelopment company,
whose principal business is sourcing, funding and managing emerging
pre-public, clean-techcompanies with significant market
potential.
Keywords: CVF Technologies Corporation.
This article was prepared by Business & Finance Week editors
from staff and other reports. Copyright 2008, Business &Finance
Week via VerticalNews.com.
Indexing (document details)
Subjects: Acquisitions & mergers, Recreational vehicles,
Public works, Income statements, Expansion,Automobile dealers
Author(s): Anonymous
Document types: Expanded Reporting
Publication title: Business & Finance Week. Atlanta: May 26,
2008. pg. 304
Source type: Periodical
ProQuest document ID: 1523028321
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