UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark One)
  /X/   Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities
        Exchange Act of 1934
        For the Quarterly Period Ended: September 30, 2000
                           or

  / /   Transition Report Pursuant to Section 13 or 15 (d) of the Securities
        Exchange Act of 1934
        For the Period from __________ to __________

                         Commission File Number: 0-6333

                            HYDRON TECHNOLOGIES, INC.
                            -------------------------
             (Exact name of Registrant as specified in its charter)

              New York                                 13-1574215
              --------                                 ----------
(State or other jurisdiction of          (I.R.S. Employer Identification Number)
 incorporation or organization)

1001 Yamato Road, Suite 403
Boca Raton, Florida 33431                                (561) 994-6191
-------------------------                                --------------
(Address of Principal Executive Offices)         (Registrant's telephone number)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. X Yes _ No.

 Number of shares of common stock outstanding as of October 31, 2000: 4,975,136

<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

                                      Index

Part I. Financial Information

Item 1. Financial Statements (Unaudited)

   Condensed consolidated balance sheets-- September 30, 2000 and December 31,
   1999

   Condensed consolidated statements of operations -- Three months ended
   September 30, 2000 and 1999; nine months ended September 30, 2000 and 1999

   Condensed consolidated statements of cash flows -- Nine months ended
   September 30, 2000 and 1999

   Notes to condensed consolidated financial statements-- September 30, 2000

Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations

Part II. Other Information

Item 6. Exhibits and Reports on Form 8-K

Signatures

                                       2
<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

                      Condensed Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                              September 30, 2000  December 31, 1999
                                                                 (Unaudited)            (Note)
<S>                                                             <C>                 <C>
ASSETS

Current Assets
      Cash and cash equivalents                                 $    282,966        $    653,916
      Trade accounts receivable                                       96,239              38,490
      Inventories                                                  1,512,892           1,438,292
      Prepaid expenses and other current assets                       68,801             118,453
                                                                ------------        ------------
                                     Total current assets          1,960,898           2,249,151

Property and equipment, less accumulated
          depreciation of $874,181 and $758,081 at
          2000 and 1999, respectively                                171,179             286,743
Investment in joint venture                                               --              62,721
Deferred product costs, less accumulated
          amortization of $5,131,991 and $4,623,451 at
          2000 and 1999, respectively                                842,438           1,060,238
Deposits                                                              58,210             176,450
                                                                ------------        ------------
                                     Total Assets               $  3,032,725        $  3,835,303
                                                                ============        ============

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
      Accounts payable                                          $    121,107        $    127,543
      Accrued liabilities                                            644,722             642,488
                                                                ------------        ------------
          Total current liabilities                                  765,829             770,031

Commitments and contingencies                                             --

Shareholders' equity
      Common stock - $.01 par value
          30,000,000 shares authorized; 5,035,336 shares
          issued; and 4,975,136 shares outstanding                    50,353              50,353
      Additional paid-in capital                                  19,501,837          19,501,837
      Accumulated deficit                                        (16,846,136)        (16,047,760)
      Treasury stock, at cost; 60,200 shares                        (439,158)           (439,158)
                                                                ------------        ------------
          Total Shareholders' equity                               2,266,896           3,065,272
                                                                ------------        ------------
          Total liabilities and shareholders equity             $  3,032,725        $  3,835,303
                                                                ============        ============

<FN>
Note:     The balance sheet at December 31, 1999 has been derived from the audited financial statements at that date but does not
          include all of the information and footnotes required by generally accepted accounting principles for complete financial
          statements.
</FN>
</TABLE>

            See notes to condensed consolidated financial statements.

                                       3
<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

                 Condensed Consolidated Statement of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>
                                              Three months ended September 30   Nine months ended Septmber 30
                                                   2000             1999             2000             1999
                                               -----------      -----------      -----------      -----------
<S>                                            <C>              <C>              <C>              <C>
Net Sales                                      $   375,063      $   902,679      $ 1,655,315      $ 2,111,853
Cost of sales                                      112,260          311,238          550,775          697,637
                                               -----------      -----------      -----------      -----------
Gross profits                                      262,803          591,441        1,104,540        1,414,216

Expenses
      Royalty expense                               16,986           41,591           80,939          116,150
      Research and development                      18,259           25,042           58,268          191,565
      Selling, general & administration            491,990          543,646        1,446,199        1,636,684
      Employment contract settlement costs              --               --               --          569,093
      Depreciation & amortization                  111,300          123,330          333,900          364,468
                                               -----------      -----------      -----------      -----------
          Total expenses                           638,535          733,609        1,919,306        2,877,960
                                               -----------      -----------      -----------      -----------
Operating loss                                    (375,732)        (142,168)        (814,766)      (1,463,744)

Interest income                                      4,540           16,958           16,390           65,608
Joint venture equity pick-up                            --            1,995               --            7,991
                                               -----------      -----------      -----------      -----------
          Loss before income taxes                (371,192)        (123,215)        (798,376)      (1,390,145)

Income taxes expense                                    --               --               --               --
                                               -----------      -----------      -----------      -----------
          Net loss                             $  (371,192)     $  (123,215)     $  (798,376)     $(1,390,145)
                                               ===========      ===========      ===========      ===========
Basic and diluted loss per share
      Net loss per common share                $     (0.07)     $     (0.02)     $     (0.16)     $     (0.28)
                                               ===========      ===========      ===========      ===========
</TABLE>

            See notes to condensed consolidated financial statements

                                       4
<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

                 Condensed Consolidated Statements of Cash Flow
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                  Nine months ended September 30
                                                                      2000             1999
<S>                                                                <C>              <C>
Operating Activities                                               $  (798,376)     $(1,390,145)

Net Loss
     Adjustments to reconcile net loss to
      Net Cash used by operating activities
          Depreciation and amortization                                333,900          364,468
          Loss on disposal of equipment                                                  63,567
          Equity in earnings of joint venture                                            (7,991)
          Cost of stock issued for services                                              72,656

     Change in operating assets and liabilities
          Trade accounts receivables                                   (57,749)         349,495
          Inventories                                                  (74,599)          (3,350)
          Prepaid expenses and other current assets                     49,652          (83,956)
          Deposits                                                     118,241          (20,863)
          Accounts payable                                              (6,436)          94,790
          Accrued liabilities                                            2,233            7,058
                                                                   -----------      -----------
     Net cash provided (used) by operating activities                 (433,134)        (554,271)

Investing activities
     Capital expenditures, net                                            (537)         (11,700)
     Proceeds from liquidation of joint venture                         62,721
                                                                   -----------      -----------
          Net cash provided (used) by investing activities              62,184          (11,700)

Financing activities
     Net cash provided (used) by financing activities                       --               --
                                                                   -----------      -----------
          Net increase (decrease) in cash and cash equivalents        (370,950)        (565,971)

Cash and cash equivalents at beginning of period                       653,916        2,127,781
                                                                   -----------      -----------
Cash and cash equivalents at end of period                         $   282,966      $ 1,561,810
                                                                   ===========      ===========
</TABLE>

            See notes to condensed consolidated financial statements

                                       5

<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

                               September 30, 2000

Note A -- Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. 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 of Hydron Technologies, Inc.
(the "Company"), all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the three and nine month periods ended September 30, 2000 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 2000. For further information, refer to the consolidated financial
statements and footnotes included in the Company's Annual Report on Form 10-K
for the year ended December 31, 1999.

Note B - Inventories

Inventories consist of the following:

                               September 30,  December 31,
                                   2000           1999

Finished goods                  $  841,818     $  753,692
Raw material and components        671,074        684,600
                                ----------     ----------
                                $1,512,892     $1,438,292

Note B - Distribution Agreement

Effective September 1, 1999, the Company entered into a marketing and
distribution agreement (the "Home Shopping Agreement") with HSN, that grants HSN
an exclusive worldwide license to market and distribute certain of the Company's
proprietary consumer products through various forms of electronic retailing. The
Home Shopping Agreement also grants HSN a non-exclusive license to market Hydron
products through all other methods of distribution in certain countries outside
the United States.

Under the terms of the Home Shopping Agreement, HSN is required to make
specified product purchases during the period ending 12 months following the
date on which the products first aired on HSN's television programs. Should HSN
exceed a certain threshold amount in retail sales of Hydron products to
consumers during the first twelve months, it is required to make specified
product purchases during the second 12 months following the date of the first
airing. The term of the Home Shopping Agreement may be automatically renewed
after the Initial Term (two years after date of the first airing) for an
indefinite number of successive one-year periods, subject to HSN's achieving
certain escalating threshold levels in product purchases. However, beginning in
the third contract year, HSN will no longer be required to meet specified
product purchases, except to maintain exclusivity.

                                       6
<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

                               September 30, 2000

The Company launched its products on HSN's television network on September 16,
1999. Hydron products have since been featured in "Hydron Skin Care Solutions"
hours during 7 of the first 11 months of the Home Shopping Agreement and are
expected to air regularly on HSN's television programs. In addition to selling
Hydron products on-air, HSN provides brand development, and marketing promotion
and support for the products, including direct mail, sampling, outbound
telemarketing, package inserts, advertising and publicity programs, the costs
and expenses of which are shared equally by HSN and the Company.

Although management believes that there are other avenues for selling its
products, including the Hydron catalog, the loss of HSN as a customer would have
a material adverse effect on the Company's business.

Note C - Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per
share:

<TABLE>
<CAPTION>
                                                       Three Months Ended                 Nine Months Ended
                                                          September 30,                     September 30,
                                                       2000             1999            2000             1999
<S>                                                <C>              <C>              <C>             <C>
Numerator:
  Net income (loss) is both the numerator
    for basic earnings per share (income
    available to common shareholders) and the
    numerator for diluted earnings per share
    (income available to common shareholders
    after assumed conversions or exercise
    of outstanding options and warrants,
    if dilutive)                                   $  (371,192)     $  (123,215)     $ (798,376)     $(1,390,145)
                                                   ===========      ===========      ==========      ===========
Denominator:
  Denominator for basic earnings per share
    (weighted-average shares)                        4,975,136        4,945,576       4,975,136        5,015,299
  Effect of dilutive securities: Stock options
    and warrants                                            --               --              --               --
                                                   -----------      -----------      ----------      -----------
  Denominator for dilutive earnings per share
    (adjusted weighted-average)                      4,975,136        4,945,576       4,975,136        5,015,299
                                                   ===========      ===========      ==========      ===========
Basic earnings per share                           $      (.07)     $      (.02)     $     (.16)     $      (.28)
                                                   ===========      ===========      ==========      ===========
Diluted earnings per share                         $      (.07)     $      (.02)     $     (.16)     $      (.28)
                                                   ===========      ===========      ==========      ===========
</TABLE>

                                       7
<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

                               September 30, 2000

Options and warrants to purchase 350,000 shares of common stock were outstanding
at June 30, 2000, but were not included in the computation of diluted earnings
per share because the effect would be antidilutive to the net loss per share for
the period.

                                       8
<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations

Business
--------

Hydron Technologies, Inc. ("the Company") markets a broad range of consumer and
oral health care products using a moisture-attracting ingredient (the "Hydron(R)
polymers"), and owns a non-prescription drug delivery system for topically
applied pharmaceuticals, which uses such polymer. The Company holds U.S. and
international patents on, what Management believes is the only known
cosmetically acceptable method to suspend the Hydron polymer in a stable
emulsion for use in personal care/cosmetic products. The Company has
concentrated its sales and development activities primarily on the application
of these biocompatible, hydrophilic polymers in various personal care/cosmetic
products for consumers and, to a lesser extent; oral care products for dental
professionals. The Company is developing other personal care/cosmetic products
for consumers using Hydron polymers and can use its patented technology as a
topical drug delivery system.

The Company has entered into a license agreement with National Patent
Development Corp. ("National Patent"), which provides for reciprocal royalty
payments based on the sale of certain of each party's products. The Company
intends to continue to explore the efficacy of using its technology as a topical
drug delivery system and would, when appropriate, either seek licensing
arrangements with third parties, or develop and market proprietary products
through its own efforts.

Hydron products had been marketed on QVC through regularly scheduled hour-long
programs from April 1994 through May 1999 under licensing agreement. The Company
continues to sell certain products to QVC, on a non-exclusive basis, so that QVC
can resell these products to their customers who had previously purchased the
products and wish to re-order Hydron products.

Effective September 1, 1999, the Company entered into a marketing and
distribution agreement (the "Home Shopping Agreement") with HSN that grants HSN
an exclusive worldwide license to market and distribute certain of the Company's
proprietary consumer products through various forms of electronic retailing. The
Home Shopping Agreement also grants HSN a non-exclusive license to market Hydron
products through all other methods of distribution in certain countries outside
the United States.

Hydron products have been marketed on HSN through regularly scheduled hour-long
programs since September 1999. The hour-long live broadcasts generally feature
most currently available products, which are sold individually or in collections
(packaging of products in various combinations). Hydron products have since been
featured regularly on HSN's television network and are expected to continue to
air regularly.

Under the terms of the Home Shopping Agreement, HSN was required to make
specified product purchases during the period ending 12 months following the
date on which the products first aired on HSN's television programs (Beginning
September 16, 1999). The term of the Home Shopping Agreement may be
automatically renewed after the Initial Term (two years after date of the first
airing) for an indefinite number of successive one-year periods, subject to
HSN's achieving certain escalating threshold levels in product purchases.
However, beginning in the third contract year, HSN will no longer be required to
meet specified product purchases, except to maintain exclusivity.

                                       9
<PAGE>

Business (continued)
-------------------

In February 2000, HSN management asked the Company to replace Mr. Tauman as
on-air spokesperson for the Hydron line as per the Home Shopping Agreement. The
Company subsequently re-hired Ms. Lauren Anderson as spokesperson. Ms. Anderson
has previously represented the Company as spokesperson at QVC.

In addition to selling Hydron products on-air, HSN provides brand development,
and marketing promotion and support for the products, including direct mail,
sampling, outbound telemarketing, package inserts, advertising and publicity
programs, the costs and expenses of which are shared equally by HSN and the
Company.

In November 1996, the Company opened a new channel of distribution for Hydron
products with the launch of its proprietary Catalog. This full color Catalog
offers the Company's personal care products for sale directly to consumers. The
Catalog also provides information on new Hydron products, educates consumers on
proper skin and hair care and facilitates re-ordering. The Company is currently
exploring new ways to enhance Catalog sales and operations.

Historically, the majority of Hydron products are sold in connection with on-air
marketing. Although Management believes that there are other avenues for selling
the Company's products, including the Hydron Catalog, the loss of HSN as a
customer would have a material adverse effect on the Company's business. The
Company has not decided what actions, if any, it plans to take under such
circumstances.


Results of Operations
---------------------

Net sales for the three months ended September 30, 2000 were $375,063; a
decrease of $527,616, or 58%, from net sales of $902,679 for the three months
ended September 30, 1999. Net sales for the nine months ended September 30, 2000
were $1,655,315; a decrease of $456,538, or 22%, from net sales of $2,111,853
for the nine months ended September 30, 1999.

Catalog net sales for the three months ended September 30, 2000 were $276,213; a
decrease of $10,218, or 4%, from catalog net sales of $286,431 for the three
months ended September 30, 1999. Catalog net sales for the nine months ended
September 30, 2000 were $795,407, an increase of $130,877, or 20% from catalog
net sales of $664,530 for the nine months ended September 30, 1999.

The decrease in catalog sales for the three months ended September 30, 2000 was
due to a shift in promotional activities. Last year the Company had a heavy,
full-line promotion that created abnormal sales levels for this period. In 2000
the Company has maintained a more balance promotional schedule. The increase in
catalog sales for the nine months ended September 30, 2000 was the result of an
overall strategic effort to improve catalog activity to current customers. The
Company has begun testing new direct marketing programs targeted at new
potential customers. Further testing will determine new catalog marketing
programs for future expansion.

Non-catalog net sales, to HSN and QVC, for the three months ended September 30,
2000 were $98,850, a decrease of $517,398, or 84%, from non-catalog net sales of
$616,248 for the three months ended September 30, 1999. Non-catalog net sales
for the nine months ended September 30, 2000 were $859,909; a decrease of
$587,414, or 41%, from non-catalog net sales of $1,447,323 for the nine

                                       10
<PAGE>

Results of Operations (continued)
--------------------------------

months ended September 30, 1999. The decrease in non-catalog sales resulted
primarily from lower than anticipated net sales to HSN. Sales to HSN did not
meet the requirements for the first twelve months of the HSN agreement. Hydron
has entered discussions with HSN to achieve a satisfactory solution to this
contract shortfall. In addition, the Company is working with HSN to implement
program changes that will rectify this situation for the second twelve months of
the initial two years of the contract. Hydron' products have not been featured
on-air since August 29th. Management anticipates restart of regularly scheduled
programs upon the successful conclusion of HSN discussions. QVC sales were
$30,886 for the three months ended September 30, 2000, down from $306,363 for
the three months ended September 30, 1999, and reflect an anticipated steady
decline in volume, as Hydron has not been actively marketed to the QVC's
customers since May 1999.

Hydron has broadened is relation with HSN by securing a two-year agreement with
Home Shopping Espanol (HSE), a rapidly expanding division of Home Shopping,
L.P., to air Hydron products on HSE's Spanish-language television shopping
programming. Hydron has retained Charytin Goyco as Spokesperson for the Latin
American Market for the same two- year period. The market launch is scheduled
for the last week of November.

Approximately 26% and 68% of the Company's sales for the three months ended
September 30, 2000 and 1999, respectively, were to HSN and QVC. Approximately
52% and 69% of the Company's sales during the nine months ended September 30,
2000 respectively were to HSN AND QVC. Management anticipates that sales to HSN
will grow to be a larger percentage of the Company's sales and, absent the
consummation of marketing or distribution arrangements with third parties other
than HSN, the Company's dependence upon direct response television as a
distribution channel will remain significant. Any disruption in the Company's
relationship with HSN would have a material adverse effect on the business,
financial condition and results of operations of the Company.

The Company's overall gross profit margin for the three months ended September
30, 2000 was 70%, as compared to 66% for the three months ended September 30,
1999. The Company's overall gross profit margin for the nine months ended
September 30 was 67% for 2000 and 1999.

The gross profit margin on catalog sales for the three months ended September
30, 2000 was 85%, as compared to 67% for the three months ended September 30,
1999. The gross profit margin on catalog sales for the nine months ended
September 30, 2000 was 83%, as compared to 82% for the nine months ended
September 30, 1999. The increase in the catalog gross profit margin for the
three months ended September 30, 2000 was a result of a shift of product mix.
The catalog gross profit margin for the nine months ended September 30, 2000 was
maintained at parity with year ago.

The gross profit margin on non-catalog sales for the three months ended
September 30, 2000 was 55%, as compared to 57% for the three months ended
September 30, 1999. The gross profit margin on non-catalog sales for the nine
months ended September 30, 2000 was 59%, as compared to 60% for the nine months
ended September 30, 1999. The decrease in non-catalog gross profit margins was
the result of the mix of products sold.

Research and development ("R&D") expenses reflect the Company's efforts to
identify new product opportunities, develop and package the products for
commercial sale, perform appropriate efficacy and safety tests, and conduct
consumer panel studies and focus groups. R&D expenses for the three months

                                       11
<PAGE>

Results of Operations (continued)
---------------------------------

ended September 30, 2000 were $18,259, a decrease of $6,783, or 27%, from R&D
expenses of $25,042 for the three months ended September 30, 1999. R & D
expenses for the nine months ended September 30, 2000 were $58,268, a decrease
of $133,297, or 79%, from R & D expenses of $191,565 for the nine months ended
September 30, 1999. The amount of R&D expenses per year varies, depending on the
nature of the development work during each year, as well as the number and type
of products under development at such time.

Selling, general and administrative ("SG&A") expenses for the three months ended
September 30, 2000 were $491,990; a decrease of $51,656, or 10%, from SG&A
expenses of $543,646 for the three months ended September 30, 1999. Such
expenses for the nine months ended September 30, 2000 were $1,446,199; a
decrease of $190,481, or 12%, from SG&A expenses of $1,636,680 for the nine
months ended September 30, 1999.

Employment contract settlement cost in 1999 are attributable primarily to the
litigation settlement with the Company's former president, which was settled on
June 2, 1999, and with the voluntary early termination of an executive officer's
employment contract on May 31, 1999. The settlement of the litigation resulted
in settlement payments of approximately $373,000, including the issuance of
75,000 shares of the Company's common stock valued at approximately $73,000. The
termination of an executive officer's employment contract, that would have
otherwise provided for continued employment through April 30, 2003, resulted in
payroll and related costs of approximately $109,000.

Interest and investment income for the three months ended September 30, 2000 was
$4,540, a decrease of $12,418, or 73%, from interest and investment income of
$16,958 for the three months ended September 30, 1999. Interest and investment
income for the nine months ended September 30, 2000 was $16,389, a decrease of
$49,219, or 75%, from interest and investment income of $65,608 for the nine
months ended September 30, 1999. These decreases were due to lower cash balances
in the 2000 periods compared to the 1999 periods. The Company maintains a
conservative investment strategy, deriving investment income primarily from U.S.
Treasury securities.

The net loss for the three months ended September 30, 2000 was $371,192, as
compared to a net loss of $123,215 for the three months ended September 30,
1999. The net loss for the nine months ended September 30, 2000 was $798,376, as
compared to a net loss of $1,390,145 for the nine months ended September 30,
1999. The decrease in the net losses resulted primarily from the factors
discussed above.


Liquidity and Financial Resources
---------------------------------

The Company's working capital was approximately $1,195,069 at September 30,
2000, including cash and cash equivalents of approximately $282,966.

Investing activities for the nine months ended September 30, 2000 were limited
to $537 for capital expenditures and receipt of $62,721 of equity upon
liquidation of a joint venture.

There were no financing activities during the nine months ended September 30,
2000.

                                       12
<PAGE>

Liquidity and Financial Resources (continued)
--------------------------------------------

The Company has incurred significant losses over the past four years. The
ability of the Company to continue, as a going concern is dependent on
increasing sales and reducing operating expenses.

Management's plan to increase sales and reduce operating expenses includes
several specific actions. Catalog sales will be emphasized since they have
higher profit margins and represent markets that are growing more rapidly than
the Company's traditional television market. Direct marketing techniques will be
used to reach new and current consumers such as promotions mailed to targeted
consumers, Web site specials, promotions to other Web site customers, and direct
e-mail promotions to current customers. In addition, the Company is evaluating
private label opportunities and is currently having discussions with third party
marketers who want to expand foreign operations.

Inventory write-downs and contract settlements of $1,414,461 and $1,069,967 were
incurred in the years ended December 31, 1999 and 1998, respectively. Steps have
been taken to prevent these types of charges in the future. In addition, annual
operating expenses have been reduced an estimated $700,000 by reducing payroll
cost, warehouse cost, consulting fees, legal fees, and insurance premiums.

Based on the above plan and the Company's present cash position, the absence of
any short or long term debt, arrangements with third parties for contractual
manufacturing and R&D, and the Company's present business strategy, management
believes that the Company has adequate resources to meet normal, recurring
obligations, for at least the next twelve months, as they become due. Further,
in view of the payment terms in connection with sales to HSN, management does
not anticipate any difficulty in financing foreseeable inventory requirements.

The Company does not have the financial resources to sustain a national
advertising campaign to market its products in a conventional retail mode. In
view of the foregoing, Management's strategy has been to enter into marketing,
licensing and distribution agreements with third parties (such as HSN, and QVC)
which have greater financial resources than those of the Company and that can
enhance the Company's product introductions with appropriate national marketing
support programs.

The effect of inflation has not been significant upon either the operations or
financial condition of the Company.


Cautionary Statement Regarding Forward Looking Statements
---------------------------------------------------------

Certain statements contained in this Report on Form 10-Q are forward looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including statements
regarding the Company's expectations, hopes, intentions, beliefs or strategies
regarding the future. Forward looking statements include the Company's
liquidity, anticipated cash needs and availability, and the anticipated expense
levels under the heading "Management's Discussion and Analysis of Financial
Condition and Results of Operations." All forward looking statements included in
this document are based on information available to the Company on the date of
this Report, and the Company assumes no obligation to update any such forward
looking statement. It is important to note the Company's actual results could
differ materially from those expressed or implied in such forward looking
statements. You should also consult the Company's Annual Report on Form 10-K for
the year ended December 31, 1998 as well as those factors listed from time to
time in the Company's other reports filed

                                       13
<PAGE>

with the Securities and Exchange Commission pursuant to the Securities Exchange
Act of 1934 and the Securities Act of 1933.

                                       14
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Part II - Other Information

Item 6.  Exhibits and Reports on Form 8-K

A - Exhibits - 27.1 - Financial Data Schedule

B - Current report on Form 8-K
         Date of Report, June 29, 2000, reporting items 4 and 7.
         Date of Report, May 31, 2000, reporting items 4 and 7.

                                       15
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                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                                HYDRON TECHNOLOGIES, INC.

                                                By: /s/ William A. Fagot
                                                -------------------------------
                                                William A. Fagot
                                                Chief Financial Officer

Dated: November 15, 2000

                                       16

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                                 EXHIBIT INDEX

EXHIBIT NO.    EXHIBIT DESCRIPTION
-----------    -------------------
   27          Financial Data Schedule