Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 12, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'CTD HOLDINGS INC | ' |
Entity Central Index Key | '0000922247 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 37,562,355 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $539,930 | $22,839 |
Accounts receivable, net | 15,969 | 65,271 |
Inventory | 101,378 | 205,155 |
Other current assets | 5,178 | 10,945 |
Total current assets | 662,455 | 304,210 |
PROPERTY AND EQUIPMENT, NET | 1,570,858 | 1,608,283 |
OTHER ASSETS | ' | ' |
Property held for sale | 495,456 | 495,456 |
Deferred tax asset | 90,000 | 200,000 |
Deferred costs, net | 24,470 | 10,288 |
Total other assets | 609,926 | 705,744 |
TOTAL ASSETS | 2,843,239 | 2,618,237 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued expenses | 59,617 | 83,502 |
Line of credit | 38,417 | 94,487 |
Current portion of long-term debt | 56,318 | 140,797 |
Total current liabilities | 154,352 | 318,786 |
LONG-TERM LIABILITIES | ' | ' |
Long-term debt, less current portion | 809,443 | 750,776 |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock, par value $.0001 per share, 100,000,000 shares authorized, 37,455,882 and 36,889,535 shares issued and outstanding, respectively | 3,745 | 3,688 |
Preferred stock, par value $.0001 per share,5,000,000 shares authorized; Series A, 1 share issued and outstanding | ' | ' |
Additional paid-in capital | 3,923,048 | 3,881,605 |
Accumulated deficit | -2,047,349 | -2,336,618 |
Total stockholders' equity | 1,879,444 | 1,548,675 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $2,843,239 | $2,618,237 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Balance Sheets [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 37,455,882 | 36,889,535 |
Common stock, shares outstanding | 37,455,882 | 36,889,535 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Series A preferred stock, shares issued | 1 | 1 |
Series A preferred stock, shares outstanding | 1 | 1 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
REVENUES | ' | ' | ' | ' |
Product sales | $167,288 | $157,375 | $1,459,101 | $690,544 |
Drying services | ' | ' | ' | 56,930 |
Total revenues | 167,288 | 157,375 | 1,459,101 | 747,474 |
EXPENSES | ' | ' | ' | ' |
Personnel | 123,538 | 74,190 | 282,828 | 248,412 |
Cost of products sold (exclusive of depreciation and amortization, shown separately below) | 29,091 | 23,218 | 390,420 | 155,995 |
Repairs and maintenance | 6,977 | 3,815 | 20,206 | 14,388 |
Professional fees | 32,962 | 28,111 | 120,657 | 129,369 |
Office and other | 35,151 | 18,133 | 84,785 | 95,300 |
Amortization and depreciation | 40,960 | 36,028 | 111,742 | 106,901 |
Freight and shipping | 1,623 | 2,505 | 6,326 | 8,721 |
Total Operating expenses | 270,302 | 186,000 | 1,016,964 | 759,086 |
OPERATING INCOME (LOSS) | -103,014 | -28,625 | 442,137 | -11,612 |
OTHER INCOME (EXPENSE) | ' | ' | ' | ' |
Investment and other income (expense) | 900 | -26 | 1,885 | 1,026 |
Interest expense | -12,396 | -17,087 | -44,753 | -45,811 |
Total other income (expense) | -11,496 | -17,113 | -42,868 | -44,785 |
INCOME (LOSS) BEFORE INCOME TAXES | -114,510 | -45,738 | 399,269 | -56,397 |
Income tax benefit (provision) | 20,000 | ' | -110,000 | ' |
NET INCOME (LOSS) | ($94,510) | ($45,738) | $289,269 | ($56,397) |
NET INCOME (LOSS) PER COMMON SHARE | $0 | $0 | $0.01 | $0 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | 37,441,316 | 36,679,892 | 37,073,462 | 36,610,011 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income (loss) | $289,269 | ($56,397) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 111,742 | 106,901 |
Deferred income taxes | 110,000 | ' |
Stock compensation to employees | 40,000 | ' |
Increase or decrease in: | ' | ' |
Accounts receivable | 49,302 | 31,962 |
Inventory | 103,777 | -32,843 |
Other current assets | 5,767 | ' |
Accounts payable and accrued expenses | -23,885 | 21,131 |
Total adjustments | 396,704 | 127,151 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 685,973 | 70,754 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Purchase of equipment and building improvements | -65,344 | -90,138 |
NET CASH USED IN INVESTING ACTIVITIES | -65,344 | -90,138 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from sale of common stock | ' | 50,000 |
Principal payments on notes payable | -25,812 | -71,906 |
Loan costs | -21,656 | ' |
Payments on line of credit | -56,070 | -711 |
NET CASH USED IN FINANCING ACTIVITIES | -103,538 | -22,617 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 517,091 | -42,001 |
CASH AND CASH EQUIVALENTS, beginning of period | 22,839 | 127,077 |
CASH AND CASH EQUIVALENTS, end of period | 539,930 | 85,076 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' |
Cash paid for interest | 44,753 | 45,811 |
Cash paid for income taxes | ' | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation [Abstract] | ' |
BASIS OF PRESENTATION: | ' |
(1) BASIS OF PRESENTATION | |
The accompanying consolidated financial statements include CTD Holdings, Inc. and its subsidiaries. | |
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. | |
Operating results for the nine month period ended September 30, 2013, are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2013 | |
Inventory [Abstract] | ' |
INVENTORY | ' |
(2) INVENTORY | |
Our inventory includes $26,300 of work-in-process inventory at September 30, 2013. We did not have work-in-process inventory at December 31, 2012. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Long-Term Debt and Line of Credit [Abstract] | ' | ||||
LONG-TERM DEBT | ' | ||||
(3) LONG-TERM DEBT | |||||
In July 2013, our mortgage was refinanced with the execution of a note for $578,988. Monthly payments of $3,506, including principal and interest at 3.99%, are due beginning August 2013 through and including June 2023, with a final balloon payment of approximately $350,000 due in July 2023. The note is secured by a mortgage on our Alachua property. The note has a prepayment penalty that starts at 5% within the first year and decreases 1% annually thereafter. There is no prepayment penalty if the loan is repaid with cash on hand. | |||||
Prior to July 2013, our mortgage note payable was collateralized by land and a building located in Alachua, Florida. Monthly payments were $2,995, including principal and interest at 5.375%. Payments were due beginning January 1, 2011 through and including August 1, 2015, with a final balloon payment of approximately $376,000 due in September 2015. In July 2013, this note was repaid in connection with the mortgage note described above. | |||||
In July 2013, our equipment note was refinanced with the execution of a note for $295,890. Monthly payments of $4,051, including principal and interest at 3.99%, are due beginning August 2013 through and including July 2020. The note is collateralized by all of our equipment. The mortgage on our High Springs property was released in connection with the refinancing. There is a prepayment penalty of 2% of the outstanding balance if we refinance the loan with another financial institution within five years. There is no prepayment penalty if the loan is repaid with cash on hand. | |||||
Prior to July 2013, our equipment note payable was collateralized by substantially all the Company’s assets, including a mortgage on our 40 acre complex located in High Springs, Florida and was guaranteed by C.E. Rick Strattan, the Company’s Chairman and Chief Executive Officer. Monthly payments were $2,833, including principal and interest at 6.5%, with a final balloon payment of approximately $252,000 due in March 2016. The loan was also subject to an annual minimum debt service coverage ratio of 1.25. In July 2013, this note was repaid in connection with the mortgage note described above. | |||||
Prior to July 2013, our solar equipment note payable was collateralized by the solar electric system with monthly payments of $2,290, including principal and interest at 10%. In July 2013, this note was repaid in connection with the mortgage note described above. | |||||
Prior to July 2013, we had financed the balance due to the contractor for the installation of our pulse dryer that was installed in 2011. The terms of the note required monthly payments of $8,244, including interest at 8.5%, with final payment of $28,685 plus interest due in February 2014. The loan was collateralized by the pulse dryer. In July 2013, this note was repaid in connection with the mortgage note described above. | |||||
As a result of the refinancing, we are required to maintain an annual debt service coverage ratio (EBITDA to interest expense and prior period current portion of long-term debt) of not less than 1.3. Each of the mortgage note and the equipment note are guaranteed by our subsidiaries Nanosonic Products, Inc., Cyclodextrin Technologies Development, Inc., and Sphingo Biotech, Inc., as well as by the personal guarantee of our chairman and chief executive officer. | |||||
Long-term debt obligations for the next five years and thereafter are as follows: | |||||
Year Ending | Year | ||||
December 31, | |||||
2013 (remaining three months) | $ | 14,033 | |||
2014 | 57,569 | ||||
2015 | 59,941 | ||||
2016 | 62,411 | ||||
2017 | 64,982 | ||||
2018 | 67,658 | ||||
Thereafter | 539,167 | ||||
$ | 865,761 | ||||
Line_of_Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2013 | |
Long-Term Debt and Line of Credit [Abstract] | ' |
LINE OF CREDIT | ' |
(4) LINE OF CREDIT | |
In July 2013, we refinanced our $100,000 line of credit, with interest due monthly at prime plus 1.8%, with a minimum rate of 4.75%, due in full on July 17, 2014, unless further extended. The line of credit is collateralized by our inventory, accounts receivable, equipment, general intangibles and fixtures. The credit line is cross collateralized with the our equipment and mortgage loans. We owe $38,417 on this line of credit as of September 30, 2013. The line of credit is guaranteed by our subsidiaries Nanosonic Products, Inc., Cyclodextrin Technologies Development, Inc., and Sphingo Biotech, Inc., as well as by the personal guarantee of our chairman and chief executive officer. | |
Prior to July 2013, our line of credit was due on demand, with interest due monthly on outstanding balances at the higher of prime plus 2% or 6.5%. The credit line was cross collateralized with the equipment loan, was collateralized by substantially all our assets, including a mortgage on our High Springs property and was guaranteed by our chairman and chief executive officer. We owed $94,487 on this line of credit as of December 31, 2012. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes [Abstract] | ' |
INCOME TAXES: | ' |
(5) INCOME TAXES: | |
For the three months ended September 30, 2013, the Company reported a net loss and recorded a $20,000 income tax benefit, which increased our deferred tax asset. For the nine months ended September 30, 2013, the Company reported net income and recorded an $110,000 income tax provision, which decreased our deferred tax asset. We have unused net operating loss carryforwards totaling approximately $960,000 at December 31, 2012 that may be applied against 2013 taxable income. | |
The Company reported a net loss for the three and nine months ended September 30, 2012, and recorded no income tax benefit or provision for these periods, and increased its deferred tax asset and its related valuation allowance by approximately $7,000 and $10,000, respectively, which resulted in no change in the net deferred tax asset, based on management's expectation of future taxable income which may not exceed its current deferred tax asset. |
Net_Income_Loss_Per_Common_Sha
Net Income (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2013 | |
Net Income (Loss) Per Common Share [Abstract] | ' |
NET INCOME (LOSS) PER COMMON SHARE | ' |
(6) NET INCOME (LOSS) PER COMMON SHARE: | |
Net income (loss) per common share is computed using a simple weighted average of common shares outstanding during the periods presented. |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2013 | |
Concentrations [Abstract] | ' |
CONCENTRATIONS: | ' |
(7) CONCENTRATIONS: | |
Sales to two major customers accounted for 66% of total sales for the nine months ended September 30, 2013. Sales to two major customers accounted for 37% of total sales for the nine months ended September 30, 2012. | |
Substantially all 2013 and 2012 inventory purchases were from three vendors. | |
The Company has two sources for Aquaplex inventory. However, the Company has manufactured these products in the past and could do so again, if necessary. There are multiple sources for its Trappsol inventory products. |
Stock_Transactions
Stock Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Stock Transactions [Abstract] | ' |
Stock Transactions | ' |
(8) STOCK TRANSACTIONS | |
In July 2013, we granted 555,556 shares of common stock to certain of our officers and employees as discretionary bonuses. Each of Rick Strattan (our Chief Executive Officer), Jeff Tate (our President), George Fails (our Operations Manager) and Kevin Strattan (Director of Operations at our subsidiary, CTD, Inc.) was granted 138,889 shares. Each award was valued at $10,000 based upon 80% of the closing price on July 3, 2013. The Company expensed $40,000 for the three and nine months ended September 30, 2013. There were no stock awards for the nine months ended September 30, 2012. | |
In September 2013, we issued 10,791 shares of common stock to a construction subcontractor for work performed. The shares were valued at $1,500 based upon the closing price on August 23, 2013. | |
In September 2012, the Company received $50,000 for 314,465 shares of common stock and warrants to purchase an additional 314,465 of common stock at $0.25 per share. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Long-Term Debt and Line of Credit [Abstract] | ' | ||||
Maturities of long-term debt obligations | ' | ||||
Year Ending | Year | ||||
December 31, | |||||
2013 | $ | 14,033 | |||
2014 | 57,569 | ||||
2015 | 59,941 | ||||
2016 | 62,411 | ||||
2017 | 64,982 | ||||
2018 | 67,658 | ||||
Thereafter | 539,167 | ||||
$ | 865,761 |
Inventory_Details
Inventory (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventory (Textual) | ' | ' |
Inventory, work-in-process | $26,300 | ' |
Long_Term_Debt_Details
Long Term Debt (Details) (USD $) | Sep. 30, 2013 |
Maturities of Long -term debt obligations | ' |
2013 | $14,033 |
2014 | 57,569 |
2015 | 59,941 |
2016 | 62,411 |
2017 | 64,982 |
2018 | 67,658 |
Thereafter | 539,167 |
Total Long-term debt obligations | $865,761 |
Long_Term_Debt_Details_Textual
Long Term Debt (Details Textual) (USD $) | 1 Months Ended | 9 Months Ended |
Jul. 31, 2013 | Sep. 30, 2013 | |
Long-Term Debt (Textual) | ' | ' |
Debt service coverage ratio | ' | 1.3 |
Land and building [Member] | ' | ' |
Long-Term Debt (Textual) | ' | ' |
Note payable | $578,988 | ' |
Monthly installment payment, including principal and interests | 3,506 | 2,995 |
Maturity date of notes | 31-Jul-23 | 1-Sep-15 |
Accrued interest rate per year | 3.99% | 5.38% |
Debt Instrument, Date of First Required Payment | 31-Jul-13 | 1-Jan-11 |
Payment of Final balloon (principal and accrued interest) | 350,000 | 376,000 |
Description of prepayment penalty | 'Penalty that starts at 5% within the first year and decreases 1% annually thereafter. | ' |
Equipment [Member] | ' | ' |
Long-Term Debt (Textual) | ' | ' |
Note payable | 295,890 | ' |
Monthly installment payment, including principal and interests | 4,051 | 2,833 |
Maturity date of notes | ' | 1-Mar-16 |
Accrued interest rate per year | 3.99% | 6.50% |
Payment of Final balloon (principal and accrued interest) | ' | 252,000 |
Area of complex | ' | 40 |
Debt service coverage ratio | ' | 1.25 |
Description of prepayment penalty | 'Penalty of 2% of the outstanding balance if we refinance the loan with another financial institution within five years. | ' |
Solar Electric System [Member] | ' | ' |
Long-Term Debt (Textual) | ' | ' |
Monthly installment payment, including principal and interests | ' | 2,290 |
Accrued interest rate per year | ' | 10.00% |
Pulse Dryer [Member] | ' | ' |
Long-Term Debt (Textual) | ' | ' |
Monthly installment payment, including principal and interests | ' | 8,244 |
Maturity date of notes | ' | 28-Feb-14 |
Accrued interest rate per year | ' | 8.50% |
Payment of Final balloon (principal and accrued interest) | ' | $28,685 |
Line_of_Credit_Details
Line of Credit (Details) (USD $) | Sep. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
Line of Credit (Textual) | ' | ' | ' | ' |
Line of credit, amount | ' | $100,000 | ' | ' |
Line of credit, interest due in addition to prime rate | ' | 1.80% | 2.00% | ' |
Line of credit, interest due in addition to prime rate maximum interest rate | ' | ' | 6.50% | ' |
Line of credit, minimum interest rate | ' | 4.75% | ' | ' |
Amount related to line of credit owed by Company | ' | ' | ' | 94,487 |
Current borrowing under line of credit | $38,417 | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Income Taxes (Textual) | ' | ' | ' | ' | ' |
Income tax benefit (expense) | ($20,000) | ' | $110,000 | ' | ' |
Net operating loss carryforwards | ' | ' | ' | ' | 960,000 |
Increase in valuation allowance | ' | $7,000 | ' | $10,000 | ' |
Concentrations_Details
Concentrations (Details) (Accounts Receivable [Member], Customer Concentration Risk [Member]) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Customer | Customer | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ' | ' |
Concentrations (Textual) | ' | ' |
Number of major customers accounted for accounts receivable | 2 | 2 |
Concentration risk, percentage | 66.00% | 37.00% |
Stock_Transactions_Details
Stock Transactions (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Aug. 23, 2013 | Jul. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Transactions Textual [Abstract] | ' | ' | ' | ' | ' | ' |
Stock Granted, Shares | ' | 555,556 | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | $40,000 | $40,000 | ' |
Stock based compensation awards | ' | ' | ' | ' | ' | 0 |
Number of shares issued to subcontractors | ' | ' | ' | ' | 10,791 | ' |
Shares issued to subcontractors, Value | 1,500 | ' | ' | ' | ' | ' |
Purchase Price of Common Stock, Percent | ' | 80.00% | ' | ' | ' | ' |
Proceeds from common stock and warrant issuance | ' | ' | 50,000 | ' | ' | ' |
Stock issued under stock transaction | ' | ' | 314,465 | ' | ' | ' |
Warrant Issued Detachable Stock Purchases | ' | ' | 314,465 | ' | ' | ' |
Share Price | ' | ' | $0.25 | ' | ' | $0.25 |
Chief Executive Officer [Member] | ' | ' | ' | ' | ' | ' |
Stock Transactions Textual [Abstract] | ' | ' | ' | ' | ' | ' |
Stock Granted, Shares | ' | 138,889 | ' | ' | ' | ' |
Share-based compensation expense | ' | 10,000 | ' | ' | ' | ' |
President [Member] | ' | ' | ' | ' | ' | ' |
Stock Transactions Textual [Abstract] | ' | ' | ' | ' | ' | ' |
Stock Granted, Shares | ' | 138,889 | ' | ' | ' | ' |
Share-based compensation expense | ' | 10,000 | ' | ' | ' | ' |
Chief Operating Officer [Member] | ' | ' | ' | ' | ' | ' |
Stock Transactions Textual [Abstract] | ' | ' | ' | ' | ' | ' |
Stock Granted, Shares | ' | 138,889 | ' | ' | ' | ' |
Share-based compensation expense | ' | 10,000 | ' | ' | ' | ' |
Director [Member] | ' | ' | ' | ' | ' | ' |
Stock Transactions Textual [Abstract] | ' | ' | ' | ' | ' | ' |
Stock Granted, Shares | ' | 138,889 | ' | ' | ' | ' |
Share-based compensation expense | ' | 10,000 | ' | ' | ' | ' |