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CTD Holdings, Inc. Q1 2010 Report: Growth Amidst Challenges

$CYTHW
Form 10-Q
Filed on: 2010-05-14
Source
CTD Holdings, Inc. Q1 2010 Report: Growth Amidst Challenges

Here are the key insights extracted from the financial report of CTD Holdings, Inc. for the quarter ended March 31, 2010:

General Overview

  • Company Name: CTD Holdings, Inc.
  • Filing Type: 10-Q (Quarterly Report)
  • Period Ended: March 31, 2010
  • Location: High Springs, Florida
  • Commission File Number: 0-24930
  • Outstanding Shares: 33,410,295 common shares as of May 3, 2010.

Financial Performance

  • Total Assets: Increased from $1,295,459 (Dec 31, 2009) to $1,322,766 (Mar 31, 2010).
  • Current Assets: Decreased from $564,559 to $510,062.
  • Cash and Cash Equivalents: Decreased from $338,872 to $251,921.
  • Accounts Receivable: Increased from $40,425 to $74,350.
  • Inventory: Slightly decreased from $185,262 to $181,291.
  • Total Liabilities: Increased from $93,676 to $65,281.
  • Stockholders' Equity: Increased from $1,201,783 to $1,257,485.

Income Statement Highlights

  • Product Sales: Increased 41% to $169,524 (Mar 31, 2010) from $120,496 (Mar 31, 2009).
  • Net Loss: Increased to $91,521 for the three months ended March 31, 2010, compared to a loss of $52,957 for the same period in 2009.
  • Net Loss per Common Share: $0.00 for both periods.

Key Expenses

  • Personnel Expenses: Decreased by 17% to $83,298.
  • Consulting Stock Expense: Introduced in 2010 at $66,000, reflecting the hiring of a consultant for public relations activities.
  • Professional Fees: Increased by 32% to $65,716.
  • Total Expenses: Increased to $269,227 in Q1 2010 from $174,877 in Q1 2009.

Cash Flow Analysis

  • Net Cash Provided by Operating Activities: Only $127 for Q1 2010, down from $6,012 in Q1 2009.
  • Cash Used for Investing Activities: Increased significantly to $87,078 from $22,237, primarily due to capital expenditures for a spray drying facility.
  • Ending Cash Balance: $251,921, down from $338,872 at the beginning of the year.

Strategic Developments

  • Inventory Management: Maintains sufficient inventory for two years of sales for two key products (THPB and TRMB-P).
  • Future Plans: Seeking debt financing to complete a new spray drying facility expected to cost $500,000.
  • Growth Strategy: Focused on increasing product offerings and creating operational affiliates in sectors utilizing cyclodextrins.

Risks and Considerations

  • Customer Concentration: Sales to two major customers accounted for 44% of total sales in Q1 2010, reflecting significant revenue volatility.
  • Foreign Supply Risks: Dependence on foreign suppliers for product sourcing, which can be affected by currency fluctuations.

Conclusion

CTD Holdings, Inc. is experiencing growth in sales but continues to face challenges with operating losses and cash flow management. The company's strategic investments in new facilities and products indicate a focus on long-term growth, though reliance on a few major customers and foreign suppliers presents ongoing risks.