SOURCE: CTD Holdings, Inc.

CTD Holdings, Inc. Logo

August 15, 2014 08:00 ET

CTD Holdings Reports Progress in Orphan Drug Development and Acquires Equity Capital in Second Quarter

The Company's Strong Cash Balance Supports the Development of Its Drug Product Platform

ALACHUA, FL--(Marketwired - August 15, 2014) - CTD Holdings, Inc. (OTCQB: CTDH), a family of biotechnology growth companies based on cyclodextrin chemistry, today reported continued progress on its orphan drug development in its second-quarter filing with the Securities and Exchange Commission. Validation of the manufacturing process for the Trappsol® Cyclo™ product is proceeding as expected, and the Company plans to file its Drug Master File with the Food and Drug Administration in the third quarter. In the second quarter and July, the Company closed on two rounds of private equity totaling $2.725 million.

Second Quarter and July 2014 highlights include:

  • Cash in the quarter increased to $1.5 million from $269,000 at the end of 2013. At the time of filing, cash has increased to more than $3 million.
  • The Company entered into a Securities Purchase and Collaboration Agreement with Novit LP, raising $1 million in equity capital and issuing 4 million shares of common stock.
  • As part of the agreement with Novit LP, the Company expanded its Board of Directors from five to six seats with the appointment of F. Patrick Ostronic.
  • In July, the Company raised $1.725 million in equity through a group of qualified investors led by Novit LP and issued 1.725 million shares of common stock.

"We believe that shifting our emphasis to biotechnology in all divisions will position CTD for future growth," said CEO Dr. Jeffrey Tate. "With the capital on hand, we are positioned to continue rapid progress on the development of our Trappsol® Cyclo™ product platform for the orphan drug and additional indications."

CTD HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

         
  June 30,
2014
  December 31,
2013
 
         
ASSETS  
CURRENT ASSETS        
 Cash and cash equivalents $ 1,491,289   $ 268,516  
 Accounts receivable, net   39,647     99,282  
 Inventory   278,207     241,005  
 Other current assets   30,472     10,056  
  Total current assets   1,839,615     618,859  
             
PROPERTY AND EQUIPMENT, NET   1,654,755     1,627,254  
             
OTHER ASSETS            
 Property held for sale   400,000     400,000  
 Deferred tax asset   135,000     120,000  
 Deferred costs, net   21,621     23,354  
  Total other assets   556,621     543,354  
             
TOTAL ASSETS $ 4,050,991   $ 2,789,467  
             
LIABILITIES AND STOCKHOLDERS' EQUITY  
             
CURRENT LIABILITIES            
 Accounts payable and accrued expenses $ 84,676   $ 142,607  
 Current portion of long-term debt   56,318     56,318  
  Total current liabilities   140,994     198,925  
             
LONG-TERM LIABILITIES            
 Long-term debt, less current portion   767,061     795,457  
             
STOCKHOLDERS' EQUITY            
Common stock, par value $.0001 per share, 100,000,000 shares authorized, 52,455,882 and 37,455,882 shares issued and outstanding, respectively   5,245     3,745  
 Preferred stock, par value $.0001 per share,5,000,000 shares authorized; Series A, 0 and 1 share issued and outstanding   -     -  
 Additional paid-in capital   5,323,909     3,923,049  
 Accumulated deficit   (2,186,218 )   (2,131,709 )
  Total stockholders' equity   3,142,936     1,795,085  
             
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,050,991   $ 2,789,467  
       
       

CTD HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

         
 
 
Three Months Ended
June 30,
 
 
Six Months Ended
June 30,
 
 
  2014   2013   2014   2013  
                 
REVENUES                
 Product sales $ 173,584   $ 708,322   $ 733,909   $ 1,291,813  
    173,584     708,322     733,909     1,291,813  
                         
EXPENSES                        
 Personnel   122,568     78,862     237,389     159,290  
 Cost of products sold (exclusive of depreciation and amortization, shown separately below)   22,962     145,504     94,850     361,329  
 Research and development   30,614     -     79,133     -  
 Repairs and maintenance   20,731     10,038     38,217     13,229  
 Professional fees   77,586     44,564     142,989     87,695  
 Office and other   69,771     23,484     113,829     49,634  
 Amortization and depreciation   38,482     35,391     76,301     70,782  
 Freight and shipping   3,803     1,837     5,896     4,703  
    386,517     339,680     788,604     746,662  
                         
OPERATING INCOME (LOSS)   (212,933 )   369,642     (54,695 )   545,151  
                         
OTHER INCOME (EXPENSE)                        
 Investment and other income   230     270     2,403     985  
 Interest expense   (8,731 )   (15,211 )   (17,217 )   (32,357 )
    (8,501 )   (14,941 )   (14,814 )   (31,372 )
                         
INCOME (LOSS) BEFORE INCOME TAXES   (221,434 )   353,701     (69,509 )   513,779  
                         
 Income tax benefit (expense)   70,000     (90,000 )   15,000     (130,000 )
                         
NET INCOME (LOSS) $ (151,434 ) $ 263,701   $ (54,509 ) $ 383,779  
                         
NET INCOME (LOSS) PER COMMON SHARE $ .00   $ .01   $ .00   $ .01  
                         
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING   52,055,882     36,889,535     47,261,438     36,889,535  
             
             

CTD HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)

     
  Six Months Ended  
  June 30,  
  2014   2013  
CASH FLOWS FROM OPERATING ACTIVITIES        
 Net income (loss) $ (54,509 ) $ 383,779  
             
 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:            
  Depreciation and amortization   76,301     70,782  
  Deferred income taxes   (15,000 )   130,000  
  Increase or decrease in:            
  Accounts receivable   59,635     (105,439 )
  Inventory   (37,202 )   90,141  
  Other current assets   (20,416 )   901  
  Accounts payable and accrued expenses   (57,931 )   28,462  
  Total adjustments   5,387     214,847  
             
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES   (49,122 )   598,626  
             
CASH FLOWS FROM INVESTING ACTIVITIES            
 Purchase of equipment and building improvements   (102,069 )   (1,127 )
             
NET CASH USED IN INVESTING ACTIVITIES   (102,069 )   (1,127 )
             
CASH FLOWS FROM FINANCING ACTIVITIES            
 Loan costs   -     (9,498 )
 Principal payments on notes payable   (28,396 )   (70,845 )
 Payments on line of credit   -     (7,513 )
 Proceeds from sale of common stock   1,402,360     -  
             
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES   1,373,964     (87,856 )
             
NET INCREASE IN CASH AND CASH EQUIVALENTS   1,222,773     509,643  
             
CASH AND CASH EQUIVALENTS, beginning of period   268,516     22,839  
             
CASH AND CASH EQUIVALENTS, end of period $ 1,491,289   $ 532,482  
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION            
 Cash paid for interest $ 17,217   $ 32,357  
             
 Cash paid for income taxes $ -   $ -  
       

About the Company: 
CTD Holdings, Inc. is a family of biotechnology growth companies based on cyclodextrin chemistry. Its individual divisions distribute and manufacture the trademarked Trappsol® and Aquaplex® cyclodextrins, cyclodextrin derivatives, and cyclodextrin complexes for biotechnology and life science companies involved in research, pharmaceutical, medical device, cosmetics and nutrition markets. Sphingo Biotechnology, Inc. is developing Trappsol® Cyclo™, an orphan drug designated product, for the treatment of Niemann Pick Type C, a rare and fatal genetic disease in young children. NanoSonic Products, Inc. operates the world's only cGMP pulse drying facility for the production of ultra-pure cyclodextrin derivatives and pharmaceutical grade Aquaplex® cyclodextrin complexes. CTD, Inc. supplies cyclodextrins to biotechnology and life science researchers around the globe from the world's largest catalog of cyclodextrins. The companies offer a wide variety of cyclodextrin related manufacturing services to worldwide customers, including custom formulation, manufacturing, and commercial scale supply of pharmaceutical grade cyclodextrin complexes. For additional information, visit the Company's websites: www.ctd-holdings.com and www.cyclodex.com

Safe Harbor Statement:
This press release contains "forward-looking statements" about the Company's current expectations about future results, performance, prospects and opportunities. Statements that are not historical facts, such as "anticipates," "believes" and "expects" or similar expressions, are forward-looking statements. These statements are subject to a number of risks, uncertainties and other factors that could cause actual results in future periods to differ materially from what is expressed in, or implied by, these statements. The factors which may influence the Company's future performance include the Company's ability to obtain additional capital to expand operations as planned, success in attracting additional customers and profitable contracts, and regulatory risks associated with producing food and pharmaceutical grade products. These and other risk factors are described from time to time in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Company's reports on Forms 10-K and 10-Q. Unless required by law, the Company assumes no obligation to update or revise any forward-looking statements as a result of new information or future events.

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