SOURCE: CTD Holdings, Inc.

CTD Holdings, Inc. Logo

May 14, 2014 15:01 ET

CTD Holdings Reports Strong Product Sales and Acquires Equity Capital in First Quarter

The Company's Strong Cash Balance and Cash Flows Position It for Continued Growth

ALACHUA, FL--(Marketwired - May 14, 2014) - CTD Holdings, Inc., a manufacturer of cyclodextrins, (OTCQB: CTDH), reported product sales of $560,325 for the first quarter ended March 31, 2014. The Trappsol® Cyclo™ orphan drug product generated first-quarter sales of $418,000, a 97% increase from the same period a year ago. Cash increased to $873,000 during the first quarter due to strong sales and $500,000 raised in a private placement of equity.

First Quarter 2014 highlights include:

  • Sales of the Company's orphan drug Trappsol® Cyclo™ increased 97% from the same period in 2013.
    
  • Cash flows from operations rose 70% to $194,000, compared with $114,000 in the same period in 2013.
    
  • The Company raised $500,000 in equity through the private placement of 10 million shares of common stock.
    
  • The Company expanded its Board of Directors to six seats, and appointed N. Scott Fine, Markus W. Sieger and F. Patrick Ostronic to the board.
    
  • The Company entered into a Securities Purchase and Collaboration Agreement with Novit LP under which the Company issued 4 million shares of common stock and raised $1 million in equity capital.

"The Company has positioned itself for continued growth in the first quarter. The strong sales in the Sphingo Biotechnology division validate our focus on the biotechnology sector for expansion," said Dr. Jeffrey Tate, President of CTD Holdings, Inc. "Our expanded Board is a dynamic team, directing the expansion of our core businesses. I look forward to continued growth as we move forward."

   
CTD HOLDINGS, INC.  
CONSOLIDATED BALANCE SHEETS  
(Unaudited)  
   
   March 31,
2014
  December 31,
2013
 
            
ASSETS  
CURRENT ASSETS           
  Cash and cash equivalents  $872,504   $268,516  
  Accounts receivable, net   60,198    99,282  
  Inventory   259,997    241,005  
  Other current assets   33,212    10,056  
   Total current assets   1,225,911    618,859  
            
PROPERTY AND EQUIPMENT, NET   1,648,617    1,627,254  
            
OTHER ASSETS           
  Property held for sale   400,000    400,000  
  Deferred tax asset   65,000    120,000  
  Deferred costs, net   22,488    23,354  
   Total other assets   487,488    543,354  
            
TOTAL ASSETS  $3,362,016   $2,789,467  
            
LIABILITIES AND STOCKHOLDERS' EQUITY  
            
CURRENT LIABILITIES           
  Accounts payable and accrued expense  $149,464   $142,607  
  Line of credit   20,625    -  
  Current portion of long-term debt   56,318    56,318  
   Total current liabilities   226,407    198,925  
            
LONG-TERM LIABILITIES           
  Long-term debt, less current portion   781,239    795,457  
            
STOCKHOLDERS' EQUITY           
Common stock, par value $.0001 per share, 100,000,000 shares authorized, 48,455,882 and 37,455,882 shares issued and outstanding, respectively   4,845    3,745  
Preferred stock, par value $.0001 per share, 5,000,000 shares authorized; Series A, zero and one share issued and outstanding, respectively   -    -  
  Additional paid-in capital   4,384,309    3,923,049  
  Accumulated deficit   (2,034,784 )  (2,131,709 )
   Total stockholders' equity   2,354,370    1,795,085  
            
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $3,362,016   $2,789,467  
                 
                 
   
CTD HOLDINGS, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(Unaudited)  
   
   Three Months Ended  
   March 31,  
   2014   2013  
            
REVENUES           
  Product sales  $560,325   $583,491  
            
EXPENSES           
  Personnel   114,821    80,428  
  Cost of products sold (exclusive of amortization and depreciation, shown separately below)   120,407    215,825  
  Repairs and maintenance   17,486    3,191  
  Professional fees   65,403    43,131  
  Office and other   44,058    26,150  
  Amortization and depreciation   37,819    35,391  
  Freight and shipping   2,093    2,866  
    402,087    406,982  
            
OPERATING INCOME   158,238    176,509  
            
OTHER INCOME (EXPENSES)           
  Investment and other income   2,173    715  
  Interest expense   (8,486 )  (17,146 )
    (6,313 )  (16,431 )
            
INCOME BEFORE INCOME TAXES   151,925    160,078  
            
  Income taxes   55,000    40,000  
            
NET INCOME  $96,925   $120,078  
            
NET INCOME PER COMMON SHARE  $.00   $.00  
            
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING   42,466,993    36,889,535  
                 
                 
   
CTD HOLDINGS, INC.  
CONSOLIDATED STATEMENTS OF CASH FLOWS  
Increase (Decrease) in Cash and Cash Equivalents  
(Unaudited)  
   
   Three Months Ended  
   March 31,  
   2014   2013  
CASH FLOWS FROM OPERATING ACTIVITIES           
  Net income  $96,925   $120,078  
  Adjustments to reconcile net income to net cash provided by (used in) operating activities:           
   Depreciation and amortization   37,819    35,391  
   Deferred income taxes   55,000    40,000  
   Increase or decrease in:           
   Accounts receivable   39,084    (186,095 )
   Inventory   (18,992 )  4,429  
   Other current assets   (23,156 )  2,275  
   Accounts payable and accrued expenses   6,857    97,571  
    Total adjustments   96,612    6,429  
            
NET CASH PROVIDED BY OPERATING ACTIVITIES   193,537    113,649  
            
CASH FLOWS FROM INVESTING ACTIVITIES           
  Purchase of equipment and building improvements   (58,316 )  (833 )
            
NET CASH USED IN INVESTING ACTIVITIES   (58,316 )  (833 )
            
CASH FLOWS FROM FINANCING ACTIVITIES           
  Payments on notes payable   (14,218 )  (34,502 )
  Proceeds from line of credit   20,625    (3,491 )
  Proceeds from sale of common stock, net of direct offering costs   462,360    -  
            
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES   468,767    (37,993 )
            
NET INCREASE IN CASH AND CASH EQUIVALENTS   603,988    74,823  
            
CASH AND CASH EQUIVALENTS, beginning of period   268,516    22,839  
            
CASH AND CASH EQUIVALENTS, end of period  $872,504   $97,662  
            
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION           
  Cash paid for interest  $8,486   $17,146  
            
  Cash paid for income taxes  $-   $-  
                 
                 

About the Company: 

The CTD Holdings, Inc. Family of Companies manufactures and markets the trademarked Trappsol® and Aquaplex® cyclodextrins, cyclodextrin derivatives, and cyclodextrin complexes for research, nutrition, cosmetic and medical markets. 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. 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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