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: June 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 August 15, 2000:
4,975,136

                                       1
<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

                                      Index

Part I. Financial Information

Item 1. Financial Statements (Unaudited)

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

   Condensed consolidated statements of operations -- Three months ended June
   30, 2000 and 1999; six months ended June 30, 2000 and 1999

   Condensed consolidated statements of cash flows -- Six months ended June 30,
   2000 and 1999

   Notes to condensed consolidated financial statements-- June 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

<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

                      Condensed Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                                     June 30, 2000         December 31, 1999
ASSETS                                                                (Unaudited)                (Note)
<S>                                                                    <C>                     <C>
Current assets:
   Cash and cash equivalents                                           $   300,766             $   653,916
   Trade accounts receivable                                               199,377                  38,490
   Inventories                                                           1,546,563               1,438,292
   Prepaid expenses and other current assets                               105,025                 118,453
                                                                       -----------             -----------
   Total current assets                                                  2,151,731               2,249,151

Property and equipment, less
   Accumulated depreciation of $835,481 and
   $758,081 at 2000 and 1999, respectively                                 209,879                 286,743
Investment in joint venture                                                 62,720                  62,721
Deferred product costs, less
   accumulated amortization of $5,059,394 and
   $4,623,451 at 2000 and 1999, respectively                               915,038               1,060,238
Deposits                                                                    87,765                 176,450
                                                                       -----------             -----------
                                                                       $ 3,427,133             $ 3,835,303
                                                                       ===========             ===========

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
   Accounts payable                                                  $     150,694            $    127,543
   Accrued liabilities                                                     638,351                 642,488
                                                                       -----------             -----------
   Total current liabilities                                               789,045                 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                                                 (16,474,944)            (16,047,760)
   Treasury stock, at cost; 60,200 shares                                  (439,18)               (439,158)
                                                                       -----------             -----------
     Total shareholders' equity                                          2,638,088               3,065,272
                                                                       -----------             -----------

                                                                       $ 3,427,133             $ 3,835,303
                                                                       ===========             ===========
</TABLE>

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.

            See notes to condensed consolidated financial statements.

                                       3
<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

                 Condensed Consolidated Statements Of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>
                                     Three months ended June 30   Six months ended June 30
                                          2000          1999          2000          1999
                                      -----------   -----------   -----------   -----------
<S>                                           <C>           <C>           <C>           <C>
Net sales                             $   607,862   $   623,092   $ 1,280,252   $ 1,209,174
Cost of sales                             222,199       199,849       438,514       386,399
Gross profits                             385,663       423,243       841,738       822,775

Expenses
   Royalty expense                         30,000        38,821        63,953        74,559
   Research and development                21,859        62,072        40,009       166,523
   Selling, general & administration      506,908       474,947       954,209     1,093,038
   Employment contract
      settlement costs                         --       569,093            --       569,093
   Depreciation & amortization            111,300       118,970       222,600       241,138
                                      -----------   -----------   -----------   -----------
                  Total Expenses          670,067     1,263,903     1,280,771     2,144,351

                                      -----------   -----------   -----------   -----------
Operating loss                           (284,404)     (840,660)     (439,033)   (1,321,576)

Interest income                             5,674        24,809        11,850        48,650
Joint venture equity pick-up                   --         3,127            --         5,996
                                      -----------   -----------   -----------   -----------
Loss before income taxes              ($  278,730)  ($  812,724)  ($  427,183)  ($1,266,930)

Income tax expense                             --            --            --            --
                                      ===========   ===========   ===========   ===========
Net loss                              ($  278,730)  ($  812,724)  ($  427,183)  ($1,266,930)
                                      ===========   ===========   ===========   ===========

Basic and diluted loss
   per share -Net loss                ($     0.06)  ($     0.16)  ($     0.09)  ($     0.26)
                                      ===========   ===========   ===========   ===========
</TABLE>

            See notes to condensed consolidated financial statements.

                                       4
<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                     Six Months Ended June 30,
                                                         2000         1999
<S>                                                  <C>           <C>
Operating activities:
Net loss                                             $  (427,183)  $(1,266,930)
   Adjustments to reconcile net loss to
     Net Cash used by operating activities:

       Depreciation and Amortization                     222,600       241,138
       Loss on disposal of equipment                                    63,567
       Equity in earnings of joint venture                              (5,996)
       Cost of stock issued for services                                72,656

   Changes in operating assets and liabilities
     Trade accounts receivables                         (160,887)      259,695
     Inventories                                        (108,271)       85,299
     Prepaid expenses and other current assets            13,428       (86,074)
     Deposits                                             88,685        83,379
     Accounts Payable                                     23,151       (58,801)
     Accrued liabilities                                  (4,137)      (36,692)
                                                     -----------   -----------
Net cash provided (used) by operating activities        (352,614)     (648,759)

Investing activities:
   Capital expenditures, net                                (536)           --
                                                     -----------   -----------
     Net cash used by investing activities                  (536)           --

Financing activities:
   Net cash provided (used) by financing activities           --            --
                                                     -----------   -----------
Net increase (decrease) in cash
   and cash equivalents                                 (353,150)     (648,759)

Cash and cash equivalents at
   beginning of period                                   653,916     2,127,781
                                                     -----------   -----------
Cash and cash equivalents at
   end of period                                     $   300,766   $ 1,479,022
                                                     ===========   ===========
</TABLE>


            See notes to condensed consolidated financial statements.

                                       5
<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

                                  June 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 six month periods ended June 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:
                                   June 30, 2000            December 31, 1999

Finished goods                       $  890,884                 $ 753,692
Raw materials and components            655,679                   684,600
                                    -----------               -----------
                                    $ 1,546,563               $ 1,438,292

Note C - Distribution Agreement

The Company entered into a license agreement with QVC, Inc. ("QVC") in 1993,
whereby QVC was granted exclusive rights to market and distribute the Company's
proprietary consumer products using Hydron polymers in the Western Hemisphere.
In 1996, the Company and QVC modified their license agreement (Amended License
Agreement). The Amended License Agreement provided the Company with certain
retail marketing rights, and increased the minimum product purchase requirements
QVC was required to meet on a biannual basis to maintain their exclusive rights
to market Hydron consumer products through direct response television.

                                       6
<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements
                                   (Unaudited)

                                  June 30, 2000

Note C - Distribution Agreement (continued)

Pursuant to the Amended License Agreement, certain retail marketing rights
formerly held by Direct to Retail (DTR), which rights were granted by QVC to DTR
under a separate agreement, reverted to the Company. Such retail marketing
rights include prestige retail channels of distribution such as traditional
department and specialty stores, boutique stores and beauty salons, as well as
catalog sales.

On June 11, 1997, the Company and QVC renegotiated the Amended License Agreement
(Renegotiated License Agreement) pursuant to which the term of the Amended
License Agreement was extended for one year, with the next two year term
commencing on June 1, 1997.

Under the terms of the Renegotiated License Agreement, QVC was required to meet
certain minimum product purchase requirements for a two-year period, including
annual minimum product purchase requirements, to maintain its exclusive rights.
No obligation existed for QVC to purchase the Company's product except to
maintain such exclusive rights, and no assurances could be given that QVC would
meet the escalating minimum purchase levels for subsequent years in order to
maintain such exclusive rights. If QVC had met the stipulated minimum product
purchase requirements, then the Renegotiated License Agreement renews
automatically. If QVC did not meet the annual or biannual minimum product
purchase requirements, then the Company could elect to continue or terminate the
Renegotiated License Agreement as of the end of each contract year during the
term.

Effective May 31, 1999, the Company terminated the Renegotiated License
Agreement as a result of QVC's failure to satisfy the annual minimum product
purchase requirements for the period ended May 31, 1999. Under the terms of the
Renegotiated License Agreement, QVC had a period of 30 days, commencing with the
Company's notice to QVC of its decision to terminate, to satisfy the minimum
product purchase requirements. As the deficiency was not cured during that time,
the Renegotiated License Agreement terminated May 31, 1999. Under the terms of
the Renegotiated License Agreement, following termination thereof, the Company
could not market or sell certain Hydron products through direct response
television in the Western Hemisphere, for a period of three months ending
September 1, 1999.

The Company continues to sell certain product to QVC, on a non-exclusive basis,
so that QVC can resell these products to their customers who had previously
purchased and wish to re-order Hydron products.

                                       7
<PAGE>

Note C - Distribution Agreement (continued)

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.

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.

                                       8
<PAGE>

                   HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements
                                   (Unaudited)

                                                       June 30, 1999

Note D - Earnings Per Share

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

<TABLE>
<CAPTION>
                                                                Three Months Ended                  Six Months Ended
                                                                     June 30,                           June 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)                                             $ (278,730)      $ (812,724)        $(427,183)   $ (1,266,930)

Denominator:
  Denominator for basic earnings per share
    (weighted-average shares)                                 4,975,136        4,940,631         4,975,136       4,925,467
  Effect of dilutive securities: Stock options
    and warrants                                                 -                -                 -               -
                                                             ----------       ----------         ---------    ------------
  Denominator for dilutive earnings per share
    (adjusted weighted-average)                               4,975,136        4,940,631         4,975,136       4,925,467
                                                             ==========       ==========         =========    ============


Basic earnings per share                                        $ (.06)           $(.16)           $ (.09)          $(.26)
                                                                =======           ======           =======          ======

Diluted earnings per share                                      $ (.06)           $(.16)           $ (.09)          $(.26)
                                                                =======           ======           =======          ======
</TABLE>

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.

                                       9
<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 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.

                                       10
<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.

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 June 30, 2000 were $607,862, a decrease of
$15,230, or 2%, from net sales of $623,092for the three months ended June 30,
1999. Net sales for the six months ended June 30, 2000 were $1,280,252, an
increase of $71,078, or 6%, from net sales of $1,209,174 for the six months
ended June 30, 1999.

Catalog net sales for the three months ended June 30, 2000 were $289,612, an
increase of $84,350, or 41%, from catalog net sales of $205,262 for the three
months ended June 30, 1999. Catalog net sales for the six months ended June 30,
2000 were $519,193, an increase of $141,094, or 37% from catalog net sales of
$378,099 for the six months ended June 30, 1999. The increase in catalog sales
for the three months ended June 30, 2000 was the result of targeted promotional
activities. The increase in catalog sales for the six months ended June 30, 2000
was the result of an overall strategic effort to improve catalog activity to
current customers.

Non-catalog net sales, to HSN and QVC, for the three months ended June 30, 2000
were $318,250, a decrease of $99,580, or 24%, from non-catalog net sales of
$417,830 for the three months ended June 30, 1999. Non-catalog net sales for the
six months ended June 30, 2000 were $761,059, a decrease of $70,016, or 8%, from
non-catalog net sales of $831,075 for the six months ended June 30, 1999. The
decrease in non-catalog sales resulted primarily from lower than anticipated net
sales to HSN. Sales to HSN will not meet their goal for the first twelve months
of the HSN agreement primarily from a reduction in the amount and quality of
airtime provided by HSN. The company is working with HSN to rectify this
situation for the second twelve months. QVC sales were $155,338 for the three
months

                                       11
<PAGE>

Results of Operations (continued)

ended June 30, 2000, down from $417,830 for the three months ended June 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.

Approximately 52% and 69% of the Company's sales for the three months ended June
30, 2000 and 1999, respectively, were to HSN and QVC. Approximately 59% and 68%
of the Company's sales during the six months ended June 30, 2000 and 1999,
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 June 30,
2000 was 63%, as compared to 68% for the three months ended June 30, 1999. The
Company's overall gross profit margin for the six months ended June 30, 2000 was
66%, as compared to 68% for the six months ended June 30, 1999.

The gross profit margin on catalog sales for the three months ended June 30,
2000 was 81%, as compared to 81% for the three months ended June 30, 1999. The
gross profit margin on catalog sales for the six months ended June 30, 2000 was
79%, as compared to 82% for the six months ended June 30, 1999. The catalog
gross profit margin for the three months ended June 30, 1999 was maintained at
parity with year ago. The decrease in catalog gross profit margin for the six
months ended June 30, 2000 was a result of a shift of product mix.

The gross profit margin on non-catalog sales for the three months ended June 30,
2000 was 57%, as compared to 61% for the three months ended June 30, 19998. The
gross profit margin on non-catalog sales for the six months ended June 30, 2000
was 60%, as compared to 62% for the six months ended June 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 ended
June 30, 2000 were $21,859, a decrease of $40,212, or 65%, from R&D expenses of
$62,072 for the three months ended June 30, 2000. 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
June 30, 2000 were $506,908, an increase of $31,961, or 7%, from SG&A expenses
of $474,947 for the three months ended June 30, 1999. Such expenses for the six
months ended June 30, 2000 were $954,209, a decrease of $138,829, or 13%, from
SG&A expenses of $1,093,038 for the six months ended June 30, 1999.

                                       12
<PAGE>

Results of Operations (continued)

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 June 30, 2000 was
$5,674, a decrease of $22,262, or 77%, from interest and investment income of
$27,936 for the three months ended June 30, 1999. Interest and investment income
for the six months ended June 30, 2000 was $11,850, a decrease of $42,796, or
78%, from interest and investment income of $54,646 for the six months ended
June 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 June 30, 2000 was $278,730, as compared
to a net loss of $812,724 for the three months ended June 30, 1999. The net loss
for the six months ended June 30, 2000 was $427,183, as compared to a net loss
of $1,266,930 for the six months ended June 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 $1,362,685 at June 30, 2000,
including cash and cash equivalents of approximately $300,766.

Investing activities were limited to $536 for capital expenditures for the six
months ended June 30, 2000.

There were no financing activities during the six months ended June 30, 2000.

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.

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.

                                       13
<PAGE>

Liquidity and Financial Resources (continued)

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, QVC and
the

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

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.

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<PAGE>

                                   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: September 13, 2000

                                       15
<PAGE>

                                 EXHIBIT INDEX

EXHIBIT NO.       DESCRIPTION
-----------       -----------

27.1              Financial Data Schedule