Are you interested in Cyclo for NPC research?
Letters from the PresidentPRESIDENT’S LETTER March 30, 2009 We thought it was going to be tough to top 2007 - $650,000 earnings yielding a 3.6 cents/per share earnings number; and it was! We must really have had some sharp investors out there to see right through that 3.6 cent EPS number on a stock that was selling for 3.0 cents per share. Simple arithmetic gives a P/E less than 1.0 – WOW! And still no buyers to speak of. Oh well, what the accountants give, they can take back; and they always do. In 2008 we gave back $200,000 of the $450,000 income tax benefit of 2007. So, combined with a $92,000 write off of the unfinished database and the non-cash expenses from stock to officers, a very good year of almost $500,000 in product sales becomes a year with a $213,000 loss. Those same clever investors should see that cash equivalents at the end of 2008 were more than $60,000 above those for 2007; total assets were about the same as 2007 if you account for the $375,000 of deferred tax asset. [Remember that deferred tax asset that knocked our profit down $200,000 in 2008? Well that’s the same deferred tax asset that added $375,000 to the 2007 balance sheet. Take that away and the 2007 total assets looks a lot like the 2008 assets – still almost $500,000 above 2006.]; and the company gets to add to its tax loss carryover. Finally there’s a property and equipment entry at cost (FASB rules) on the balance sheet, that is conservatively worth twice that amount. Still, no takers for a stock that’s been 2-3 cents a share for a very longtime? You can take a horse to water, but you can’t make him drink. Management made the hard decision to stop the formal development of the Cyclodextrin Patent Database. Although it would be a real money maker in about two more years, it was going to cost another $50-60k to get to that point and then another $40,000 over the next few years to maintain it and work out the bugs. Payback would take at least 5 years. Hence, cut it loose! The cyclodextrin band wagon is picking up speed, so CTD can be pretty sure of steady revenue production for the near term, even in the face of the current economic recession. In the first quarter of 2008 several new opportunities in the pharmaceutical and environmental engineering areas have come to the forefront that make increased IR/PR efforts very likely. Keep your eye on the OTCBB for stock symbol CTDH. The Joszef Szejtli Research Park development effort moves up in the line of projects that will get attention in 2009. Look for greater use of CD’s in rare diseases and for compassionate use, applications. An association with work in the Children’s Alzheimer area and in the prevention of the transmission of the HIV virus will provide CTD with some quality media coverage in the upcoming quarter. Management doesn’t believe that current economic conditions will be detrimental to the overall direction of the growth of CTD. The company will protect its cash position and will very selectively choose its opportunities for news releases. Respectfully Submitted, CE Strattan Pres/CEO CTD Holdings, Inc (05/24/2006) Q1/06 Letter From The President |