SECURITIES AND EXCHANGE COMMISSION 
 
                        Washington, D. C.   20549 
 
                                FORM 10-QSB 
 
               Quarterly Report Under Section 13 or 15(d) 
                 of The Securities Exchange Act of 1934 
 
 
For Quarter Ended: June 30, 1997      Commission file number:  0-24930 
 
          CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC. 
      (Exact name of registrant as specified in its charter) 
 
 
        Florida                                       59-3029743 
  (State or other jurisdiction               IRS Employer Identification No.  
of incorporation or organization) 
 
 
    3713 S.W. 42nd Avenue, Suite 3, Gainesville, Florida, 32608-2531 
        (Address of principal executive offices)          (Zip Code) 
 
 
Registrant's telephone number, including area code:   352-375-6822 
 
 
Former name, former address and former fiscal year, if changed since last  
report: N/A. 
 
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.  Yes 
 
As of August 12, 1997, the Company had outstanding 1,235,110 shares of 
its common stock. 
<PAGE> 
 
 
PART I:  Financial Information

Item 1 - Financial Statement


                  CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.

                 QUARTERLY STATEMENTS FOR THE SIX MONTHS ENDED 
                             JUNE 30, 1997 AND 1996

















CONTENTS                                                                  PAGE

BALANCE SHEET                                                              1-2
STATEMENTS OF OPERATIONS                                                     3
STATEMENTS OF CASH FLOWS                                                   4-5
NOTES TO FINANCIAL STATEMENTS                                             6-12


<PAGE>

                   CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                                 BALANCE SHEET
                        SIX MONTHS ENDED JUNE 30, 1997
                                  (Unaudited)


                                    ASSETS

CURRENT ASSETS
    Cash and Cash Equivalents                                         $  9,861
    Accounts Receivable                                                 41,394
    Inventory                                                           83,334
    Deposits and Prepaid Expenses                                       11,396
    Note Receivable - Employee, Current Portion                          3,217
    Deferred Tax Asset                                                 137,036
                                                                      ________
  TOTAL CURRENT ASSETS                                                 286,238
                                                                      ________
  PROPERTY AND EQUIPMENT
    Furniture and Equipment                                             49,670
    Leasehold Improvements                                              24,800
                                                                      ________
                                                                        74,470
    Less:  Accumulated Depreciation                                    (47,726)
                                                                      ________
  TOTAL PROPERTY AND EQUIPMENT                                          26,744
                                                                      ________
  OTHER ASSETS
    Advances to and Investment in Joint Venture                         40,582
    License Fee                                                         10,000
    Deferred Offering Costs                                                    
    Deferred Tax Asset                                                  67,964
                                                                      ________
  TOTAL OTHER ASSETS                                                   118,546
                                                                      ________
TOTAL ASSETS                                                          $431,528
                                                                      ========


                                (CONTINUED)

                                    -1-
<PAGE>
                    CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                                  BALANCE SHEET
                         SIX MONTHS ENDED JUNE 30, 1997
                                   (Unaudited)
                                   (CONCLUDED)


                        LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES
    Accounts Payable and Accrued Expenses                          $    19,962
    Note Payable on Line-of-Credit                                      14,001
    Payable to Officer                                                   3,253
                                                                   ___________
  TOTAL CURRENT LIABILITIES                                             37,216

  COMMON STOCK SUBJECT TO REPURCHASE
    Common Stock, Par Value $.0001 Per Share, 
      100,000 Shares Authorized, 25,000 Shares 
      Issued and Outstanding,                                            7,025
                                                                   ___________

  STOCKHOLDERS' EQUITY
    Voting Common Stock, Par Value $.0001 Per Share, 
    9,900,000 Shares Authorized, 1,200,110 Shares Issued 
    and Outstanding; Non-Voting Common Stock, Par Value
    $.0001 Per Share, 10,000,000 Shares Authorized, 0 
    Shares Issued                                                          120
    Additional Paid-In Capital                                       1,670,434
    Accumulated Deficit                                             (1,283,267)
                                                                   ___________
  TOTAL STOCKHOLDERS' EQUITY                                           387,287
                                                                   ___________

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                         $   431,528
                                                                   ===========



                 See Accompanying Notes to Financial Statements.

                                       -2-
<PAGE>
                    CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                             STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                         Three Months            Six Months
                                        Ended June 30,         Ended June 30,
                                       1997       1996        1997       1996

Product Sales                       $  60,244  $ 116,037  $ 139,854  $ 146,813
Cost of Products Sold                  15,941     10,014     37,239     14,540
                                    _________  _________  _________  _________
GROSS PROFIT                           44,303    106,023    102,615    132,273
                                    _________  _________  _________  _________
OPERATING EXPENSES
  Advertising                           8,194      3,309     11,014      6,832
  Depreciation and Amortization         8,183      9,047     16,291     31,049
  Consulting Fees                          --      1,500         --      1,500
  Office Expenses                       8,285     10,028     17,956     17,407
  Professional Fees                     9,656     11,196     20,289     20,384
  Public Offering Costs               131,122         --    131,122         --
  Travel and Entertainment              1,462      5,110      1,670      9,112
  Rent                                  5,610      5,373     11,220     10,746
  Research and Development Costs        1,855      1,983      3,905      3,933
  Salaries and Benefits                46,687     28,658     73,847     57,153
  Taxes and Licenses                    3,454      2,971      6,634      7,542
                                    _________  _________  _________  _________
TOTAL OPERATING EXPENSES              224,508     79,175    293,948    165,658
                                    _________  _________  _________  _________
LOSS FROM OPERATIONS                 (180,205)    26,848   (191,333)  (33,385)
                                    _________  _________  _________  _________
OTHER INCOME (EXPENSE)
  Investment and Other Income             964        362      1,621        967
  Gain (Loss) Due to Change in 
  Redemption Price on Common Stock 
  Subject To Repurchase                11,725     (3,125)       787    (3,125)
  Equity in Loss from 
    Unconsolidated Subsidiary            (122)    (3,613)      (244)   (9,099)
  Interest Expense                       (447)    (1,015)    (1,240)   (1,272)
                                    _________  _________  _________  _________
TOTAL OTHER INCOME (EXPENSE)           12,120     (7,391)       924   (12,529)
                                    _________  _________  _________  _________
INCOME (LOSS) BEFORE INCOME TAX      (168,085)    19,457   (190,409)  (45,914)

INCOME TAX                            (24,350)        --    (24,350)        --
                                    _________  _________  _________  _________
NET INCOME (LOSS)                   $(192,435) $  19,457  $(214,759) $(45,914)
                                    =========  =========  =========  =========
NET INCOME (LOSS) PER
  COMMON SHARE                      $    (.16) $     .02  $    (.18) $   (.04)
                                    =========  =========  =========  =========
WEIGHTED AVERAGE NUMBER OF
  COMMON SHARES OUTSTANDING         1,225,110  1,100,100  1,225,110  1,099,558
                                    =========  =========  =========  =========

                  See Accompanying Notes to Financial Statements.

                                        -3-
<PAGE>
                     CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                            STATEMENTS OF CASH FLOWS
                 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
                    SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                                    (Unaudited)




                                                           1997        1996
CASH FLOWS FROM OPERATING ACTIVITIES
  Net Income (Loss)                                     $(214,759)   $(45,914)
                                                        _________    _________
  Adjustments to Reconcile Net Income (Loss) to
    Net Cash Used for Operating Activities:
      Depreciation and Amortization                        16,291       31,049
      Gain on Sale of Investments                          (1,137)          --
      Deferred Compensation Earned                         18,500        2,875
      Equity in Loss of Unconsolidated
        Joint Venture                                         244        9,099
      (Gain) Loss Based on Redemption Price of
        Common Stock Subject to Repurchase                   (787)       3,125
      Decrease (Increase) in Accounts Receivable           64,798      (6,781)
      Increase in Inventory                                (6,955)       (598)
      Decrease (Increase) in Deposits 
        and Prepaid Expenses                               (7,383)       8,535
      Decrease (Increase) in Deferred Costs               127,531     (24,510)
      Decrease in Deferred Tax Assets                      24,350           --
      (Decrease) Increase in Accounts Payable 
        and Accrued Expenses                                9,420     (36,682)
                                                        _________    _________
      Total Adjustments                                   244,872     (13,888)
                                                        _________    _________
NET CASH PROVIDED BY (USED FOR) OPERATING 
  ACTIVITIES                                               30,113     (59,802)
                                                        _________    _________
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of Investments                                 (21,167)          --
  Proceeds from Sale of Investments                         1,137           --
  Return of Principal on Investments                       21,167           --
  Advances to Joint Venture                                    --     (17,000)
  Purchase of Equipment and Leasehold
    Improvements                                             (742)       (530)
  Repayment of Employee Loan                                8,354        2,819
  Cash Loan to Employee                                    (1,822)       (962)
                                                        _________    _________
NET CASH PROVIDED BY (USED IN) INVESTING 
  ACTIVITIES                                                6,927     (15,673)
                                                        _________    _________





                                    (CONTINUED)

                                        -4-
<PAGE>
                   CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                            STATEMENTS OF CASH FLOWS
                 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
                      SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                                    (Unaudited)
                                    (CONCLUDED)



                                                          1997        1996
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds From Issuance of Common Stock,
    Net of Offering Costs                                     --         3,025
  Proceeds from Line-of-Credit                            14,000        39,700
  Payments on Line-of-Credit                             (52,199)      (1,000)
  Proceeds from Loan Payable to Officer                    3,253            --
  Payments on Loan Payable to Officer                         --       (6,421)
                                                        ________     _________
NET CASH PROVIDED BY (USED IN) FINANCING 
  ACTIVITIES                                             (34,946)       35,304
                                                        ________     _________

NET INCREASE (DECREASE) IN CASH AND CASH 
  EQUIVALENTS                                              2,094      (40,171)

CASH AND CASH EQUIVALENTS, Beginning of Period             7,767        46,773
                                                        ________     _________
CASH AND CASH EQUIVALENTS, End of Period                $  9,861     $   6,602
                                                        ========     =========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
  Cash Paid During the Year For:
    Interest                                           $   1,240     $   1,272

SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND 
  FINANCE ACTIVITY
    Equity in Loss of Unconsolidated Joint Venture      $    244      $  9,099
    Common Stock Issued for Services                    $     --      $ 12,000
    Contribution by Stockholder                         $     --      $  6,000





                  See Accompanying Notes to Financial Statements.

                                        -5-
<PAGE>
                    CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                          NOTES TO FINANCIAL STATEMENTS
                    SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                                   (Unaudited)



The information presented herein as of June 30, 1997, and for the three and 
six months ended June 30, 1997 and 1996, is unaudited. 


NOTE 1 - BASIS OF PRESENTATION

The accompanying financial statements have been prepared in accordance with 
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB and Rule 10-01 of Regulations 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, all adjustments (consisting of normal required 
adjustments) considered necessary for a fair presentation have been included. 

Operating results for the six month period ended June 30, 1997, are not 
necessarily indicative of the results that may be expected for the year ending
December 31, 1997. For further information, refer to the financial statements 
and footnotes thereto included in the Company's annual report on Form 10-KSB 
for the year ended December 31, 1996.


NOTE 2 - COMMITMENTS

Effective January 1, 1995, the Company obtained an exclusive right to market a
dietary supplement in the United States for three years. The Company agreed to
approximately $60,000 for this right.  The agreement allows the Company to 
recover this fee through discounts on inventory purchased through December 31,
1997.  Prior to December 31, 1995, the amortization of this license fee was 
recognized as discounts were received.  However, after consultation with the 
Securities and Exchange Commission, the license fee is now being amortized on 
a straight-line basis over the three-year period of the contract.  The total 
accumulated amortization under the straight-line method since the inception of
the contract through June 30, 1996 was $30,000.  Since $7,200 was recorded as 
of December 31, 1995, an additional $17,800 was recognized as amortization 
expense in the first six months of 1996.  Amortization expense of $10,000 has 
been recognized for the six month period ended June 30, 1997.

On August 1, 1994, the Company entered into a five year consulting agreement 
(renewable annually by mutual agreement) with Yellen Associates (Yellen), an 
unrelated company. Yellen agreed to provide ideas for new products in the 
nutritional, geriatric, and related health fields; to find companies and/or 
products suitable for acquisition; to find products suitable for manufacture 
and/or distribution; and to secure customers for Company products. All 
products offered by Yellen and accepted by the Company will belong exclusively
to the 





                                        -6-
<PAGE>
                    CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                          NOTES TO FINANCIAL STATEMENTS
                    SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                                   (Unaudited)
                                   (CONTINUED)


NOTE 2 - COMMITMENTS (continued)

Company with all related rights. In return, the Company agreed to pay Yellen 
$2,000 per month for nine months. In May 1996, the Company discontinued its 
monthly payment to Yellen in accordance with the agreement. Additionally, the
Company will pay Yellen royalties of up to 5% of sales for products acquired
through Yellen, or Cyclodextrin sales made by Yellen for three to five years.
The Company also agreed to sell to Yellen over a period of three years from
August 1, 1994, up to 30,000 shares of Company stock at a discount of 50% of
the market price quoted at the time of purchase, contingent upon the amount of
commissions and royalties.  The conditions were not met, therefore, the 
Company is not obligated to sell shares to Yellen at the agreed upon discount.

On July 7, 1994, the Company entered into a five year noncancelable operating 
lease for office space, commencing November 1994.  The Company has an option 
to rent additional space and a purchase option in which ten percent of the 
lease payments may be applied to the purchase price. 

Rent expense under the foregoing lease and all other operating leases was
$11,220 and $10,746 for the six months ended June 30, 1997 and 1996, 
respectively.

In January 1996, the Company entered into an agreement with Geller 
International Associates (Geller), an unrelated company, to provide various 
public relations services. In return, the Company agreed to pay Geller $2,000
per month plus out-of-pocket expenses with the first six months being 
guaranteed.  In addition, the Company agreed to pay Geller 1% of net moneys
received as a result of Geller's efforts to secure funding for the current
public offering.  The total amount paid to Geller to date is $10,461.  Of this
amount, $0 and $10,461 were paid during the six months ended June 30, 1997 and
1996, respectively.

Since all the services performed by Geller to date represent activities for
the purpose of promoting the current public offering, the total consulting 
fees paid to Geller to date have been deferred.  In addition, Rick Strattan, 
president of the Company, gave Geller $6,000 worth of the Company stock on 
behalf of the Company to provide the above mentioned services.  The value of 
the stock given was recorded as a contribution to the Company and the related 
expense to Geller was deferred.

The agreement with Geller was cancelled at the end of the initial six months.

Effective February 5, 1996, the Company filed Form SB-2 Registration Statements
with the Securities and Exchange Commission for a proposed securities offering
of 250,000 shares of common stock and 125,000 common stock purchase warrants 
with a combined proposed maximum aggregate offering price of $1,250,500. This 
offering expired in April 1997.



                                        -7-
<PAGE>
                    CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                          NOTES TO FINANCIAL STATEMENTS
                    SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                                   (Unaudited)
                                   (CONTINUED)


NOTE 2 - COMMITMENTS (continued)

One January 1, 1996, the Company resolved to issue 48,000 shares of its common
stock to various unrelated parties for services performed in connection with 
the Company's anticipated self-underwritten stock offering as noted above. 
Furthermore, two of these parties acknowledge that in the event the gross 
proceeds of the offering are less than $500,000, then one-half of their shares
(20,000) shall be returned to the Company. The shares issued will bear a 
restrictive legend. The Company valued the 48,000 shares at $12,000 which is 
approximately 50% less than the bid price at the date of issuance. The quoted 
market price was not used to value the stock since the stock does not trade 
freely in an established market. Of these shares, 47,000 were issued on August
19, 1996. The other 1,000 shares, valued at $250, will not be issued.

Since all the costs associated with these shares were directly attributable to
the proposed offering, they were classified as deferred charges. In addition, 
all other specific incremental professional fees incurred in 1996 and 1997 
which were clearly and directly attributable to the Company's effort to obtain
equity financing were deferred. The total amount deferred for the six months 
ended June 30, 1996, was $42,510. These deferred professional costs were to be
offset against the net proceeds of the offering. Since no proceeds were 
received from the offering, all of the deferred offering costs were expensed 
upon expiration of the offering. The amount of public offering costs expensed 
during the six months ended June 30, 1997, was $131,122.

In May 1996, the Company entered into an agreement with Diversified Corporate 
Consulting Group, L.C. (Diversified), an unrelated company, to provide 
consulting services to be completed within 12 months. In return, the Company 
agreed to pay Diversified common stock of the Company, in a quantity equal to 
10% of all outstanding common stock, in lieu of document licensing fees and of
required cash payments for up to an aggregate of 130 hours of hourly 
consulting and licensing fees. The common stock issued to Diversified on July 
29, 1996, under this agreement was 110,010 shares.

The Company entered into an agreement with Cyclops h.f. (Cyclops), a company 
located in Reykjavik, Iceland, in May 1996 to secure limited exclusivity to 
certain inventions embodied in patents owned by Cyclops for the purpose of 
creating an organization that will commercialize products using those 
inventions. In consideration, the Company agrees to share equally with Cyclops
the net profits derived from products commercialized by the Company or 
affiliates of the Company that use the inventions. This agreement expired in 
May 1997.







                                     -8-
<PAGE>
                    CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                          NOTES TO FINANCIAL STATEMENTS
                    SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                                   (Unaudited)
                                  (CONTINUED)


NOTE 2 - COMMITMENTS (concluded)

On April 22, 1997, the Company entered into an agreement with Atlantic 
Syndication Network, Inc. (ASNI) for the production of a five-minute interview
segment. The Company paid $2,500 during the six months ended June 30, 1997, to
reserve production time, and committed to provide ASNI with 10,000 shares of 
the Company's non-voting common stock. The Company also granted ASNI an option
to purchase up to 25,000 shares of its non-voting common stock at a purchase 
price of $1 per share, within one year of May 31, 1997. As of June 30, 1997, 
the videotaping of the interview segment had not yet taken place, no shares 
had been provided to ASNI, and no stock options had been exercised.


NOTE 3 - EMPLOYEE STOCK PLANS

During 1994, the Company adopted a nonqualified employee stock issuance plan 
to provide incentives to employees.  Stock issued under this plan is at the 
discretion of the Board of Directors of the Company and bears a restrictive 
legend.  All shares issued pursuant to this Plan must be held for a minimum of
two years and become fully vested after five years.  During the three year 
period beginning on the first day of the third year after issuance and ending 
five years after issuance, the Company shall purchase all or any part of the 
shares from the employee upon the employee's written request; the purchase 
price of the shares shall be 50% of the then current market value of the 
shares.

In December 1994, the Company issued 25,000 shares to employees for future 
services under this plan.  The Company valued the 25,000 shares at $37,500, 
which was approximately 50% less than the bid price at the date of issuance.  
The quoted market price was not used to value the stock since the stock does 
not trade freely in an established market and, thus, a market price could not 
accurately be established. The Company recorded the $37,500 as stock issued
for future services, which is classified as a reduction to stockholders' 
equity in the accompanying financial statements. The Company is amortizing 
this amount to expense over five years on the straight-line basis, the 
estimated benefit period of the future services. Any unamortized amount will 
be charged to expense if an employee terminates employment with the Company.

In June 1995, the Company purchased 10,000 shares of its own common stock, 
issued under the employee stock issuance plan as noted above, and originally 
valued at $15,000, for $25,000 from a former employee, payable over the next 
twelve months. As of June 30, 1996, the former employee had been fully paid. 
This stock was held in treasury and reissued under the employee stock plan, 
valued at $6,250, which was 50% less than the market price at the date of 
issuance.





                                     -9-
<PAGE>
                    CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                          NOTES TO FINANCIAL STATEMENTS
                    SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                                   (Unaudited)
                                  (CONTINUED)


NOTE 3 - EMPLOYEE STOCK PLANS (concluded)

As of June 30, 1997, all of the remaining employees holding stock issued under
the employee stock issuance plan noted above, terminated employment with the 
Company. At that time, the remaining unamortized amount of the stock issued 
for future services was charged to expense.

The Company expensed $2,875 and $18,500 under the stock issuance plan for the 
six months ended June 30, 1997 and 1996, respectively.

Effective November 15, 1995, the Company adopted an employee stock purchase 
plan.  Under this plan, employees may purchase shares of Company stock up to 
the amount of their gross pay for the period.  These shares will be restricted
from sale for two years; therefore, they will be sold to employees at 50% of 
the most recent trading price at the date of purchase.  This plan will expire 
at the next private/public offering of Company stock.  As of June 30, 1996, 
employees had purchased 33,400 shares for $9,953 under this plan.  These 
shares were all issued on September 6, 1996.


NOTE 4 - COMMON STOCK SUBJECT TO REPURCHASE

As detailed in Note 3 above, the Company established a nonqualified employee 
stock issuance plan in 1994, and issued shares under this plan in December, 
1995 and 1994.  Also, as noted above, the stock issued under this Plan is 
redeemable by the Company at the option of the employee, at 50% of the then 
current market value.  The employee can demand redemption at any time 
beginning on the first day of the third year after issuance ending five years 
after issuance.

The Company has reserved 100,000 of its 10,000,000 voting common stock shares 
authorized to be used under this Plan.

The common stock subject to repurchase is reflected on the balance sheet at 
50% of the market value as of the balance sheet date. Change in the redemption
amount are recognized in the accompanying Statement of Operations as "Gain 
(Loss) Due to Change in Redemption Price on Common Stock Subject to 
Repurchase." Common stock subject to repurchase is redeemable by the holders 
as follows:

          Year Ending                          Shares   Amount
             1997                              15,000   $4,215
             1998                              10,000    2,810
                                               ______   ______
          Total                                25,000   $7,025
                                               ======   ======




                                     -10-
<PAGE>
                    CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                          NOTES TO FINANCIAL STATEMENTS
                    SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                                   (Unaudited)
                                   (CONTINUED)


NOTE 5 - MAJOR CUSTOMERS

Sales to three customers for the six months ended June 30, 1997 consisted of 
approximately 66% of total sales. Sales to four customers were approximately 
74% of total sales for the six months ended June 30, 1996.


NOTE 6- LINE-OF-CREDIT

The Company had a $75,000 line of credit with a bank as of June 30, 1996.  
That line-of-credit was reduced to $25,000 as of June 30, 1997.  Interest is 
due monthly at prime plus 2%. Any outstanding principal and interest is due in
March 1998. The line is collateralized by accounts receivable and inventory. 
As of June 30, 1997, there is $14,001 outstanding on this line-of-credit. 
Total interest expense of $770 was recorded related to this line-of-credit for
the six months ended June 30, 1997.


NOTE 7 - JOINT VENTURES

Effective May 1, 1996, the Company entered into a joint venture agreement with 
Ocumed, Inc. (Ocumed), an unrelated company. The joint venture is organized as 
Ocudex, Inc. (Ocudex) with the Company and Ocumed each owning 50% of Ocudex. 
The Company has committed to funding Ocudex up to $120,000 over the next 
twelve months. The Company advanced Ocudex $51,000 as of June 30, 1997 and 
1996, respectively.

The Company accounts for its investment in the Ocudex joint venture using the 
equity method of accounting whereby its investment is carried at cost, 
including advances, adjusted for the Company's share of earnings and losses.
The Company experienced a realized loss associated with this investment of 
$244 and $9,099 for the six months ending June 30, 1997 and 1996, 
respectively. In March 1997, the Company entered into a joint venture 
agreement with Jurox PTY Limited (Jurox), an unrelated company, in order to 
develop a new product.  According to the agreement, each party shall be 
separately responsible for their own costs for the development of the product,
then the Company agrees to provide the developed product to Jurox at the cost 
to manufacture plus 10%.  Jurox agrees to pay the Company royalties on net 
sales of the product as follows:

     5% of net sales for the first year of sales,
     4% of net sales for the second year of sales, and
     3% of net sales for a further 8 years.

No transactions have taken place as of June 30, 1997.




                                     -11-
<PAGE>
                    CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                         NOTES TO FINANCIAL STATEMENTS
                    SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                                   (Unaudited)
                                   (CONCLUDED)


NOTE 8 - INCOME TAXES

During the six months ended June 30, 1997, the Company determined that the 
valuation allowance related to the deferred tax asset should be increased from
50% to 60%. This increase in the valuation allowance, netted with the 
additional net operating loss experienced for the six months ended June 30, 
1997, resulted in additional income tax expense of $24,350, which decreased 
the deferred tax asset computed as follows:

     Income Tax Benefit From Additional Loss                    $ 25,840
     Change in Deferred Taxes Due to Increase in
       Deferred Tax Allowance From 50% to 60%                    (50,190)
                                                                ________
     Net Income Tax Expense                                     $(24,350)
                                                                ========


NOTE 9 - COMPUTATION OF PER SHARE EARNINGS

Net loss per share is based on the weighted average number of shares 
outstanding during the periods, less treasury stock owned by the Company. 
Those stock options outstanding that are dilutive have been considered in 
determining net loss per share and the weighted average number of shares 
outstanding.


                                     -12-
<PAGE>
Management Discussion and Analysis

Liquidity and Capital Resources

As of June 30, 1997, the Company's operating (tax deferred asset removed) 
liquidity as measured by its total current assets was $149,202 compared to 
$194,351 at year end 1996, and $139,133 as of June 30, 1996.  The reduction 
from year end 1996 is largely attributable to the $52,200 pay off of the line 
of credit in the first quarter of 1997.  The operating history of the company 
has shown that current assets decrease during the first 2 or 3 quarters of 
each year to finance operations.  Management monitors the operating health of 
the company by the percentage reduction of these assets and the rate at which 
they recover.  Operating current assets are actually up more than 7%  (149,202
vs $139,133) from last year.  At June 30, 1996 the company had recovered 82% 
of its total current asset value as of the previous year end ($139,133 of 
$170,400 - Note: This figure did not include a deferred tax asset) and this 
year has recovered 73% ($149,202 of $202,910 - Note: For comparison the 
deferred tax asset is removed) of the 1996 year end value.  Accordingly, 
management has used and expects to use current assets to maintain operations 
during the second and third quarters of 1997.  The rate at which these current
assets recover is a measure of the operating health of the company; by year 
end management expects another increase in this parameter over the previous 
year.

Neither total product sales ($146,813 vs $139,854) nor total operating 
expenses ($165,658 vs $162,826  Note: For comparison the public offering costs
have been removed) for the first six months of 1996 compared to the first six 
months of 1997 differ by more than 5%, showing that the company's revenue flow
is becoming less volatile.

Inventory continues to be dominated (61%) by the unsold Garlessencer and 
therefore masks the steady movement of the other components of that inventory.
However, the slight increase from December 31, 1996 ($76,379) to June 30, 1997
($83,334) reflects purchases of cyclodextrins in response to demand for the 
Company's cyclodextrin products (product sales of $139,854 vs $146,813 in the 
first six months) and the Company's building of inventory of APT-Flavors, a 
line of cyclodextrin encapsulated flavors.

In management's continuing efforts to keep expenses down, personnel are 
evaluated for productivity.  In the second quarter, effective June 15, 1997, 
one laboratory person was replaced.  The replacement provides the company with
a significant improvement in the product sales to salary ratio.  It is 
anticipated in the third quarter that similarly advantageous economizing will 
take place.

The three year period of time (starting January 1, 1995) in which the Company 
can recover its licensing prepayment for Garlessence of $60,000 through 
discounted purchases of raw materials will expire at the end of this year.  As
of June 30, 1997 the Company has recovered $9,137 of that prepayment through 
discounts.  In 1996 the Securities and Exchange Commission recommended that 
the license fee be amortized on a straight line basis retroactive to the 
beginning of the licensing agreement; therefore the total accumulated 
amortization expense through June 30, 1997 is $50,000.
The company will continue to seek out the distribution arrangements that will
allow it to recover all of its licensing prepayment fee and to meet its 
commitments to the licensor.  Since the Garlessencer inventory has a greater 
than five year shelf life, the Company expects to eventually recover its 
investment in this material, but is not optimistic that this will happen in 
calendar year 1997.

To meet the financial needs of expected future growth, the Company registered 
with the SEC to sell in a public offering in 1996 and 1997 $1.25 million worth
of common shares and warrants of the Company.  As of June 30, 1997 no sales of
these equity instruments have occurred.  Since this offering closed April 30, 
1997 the Company is expensing this quarter the previously capitalized deferred
offering costs ($131,122).  While most of these offering costs were non-cash, 
the net result is a large negative impact on the financial results reported in
the second quarter.

On February 1, 1997, the Company paid its outstanding balance of $52,200 on 
its $75,000 Line of Credit down to $1 and accepted a new credit line of 
$25,000.  As of June 30, 1997, $14,000 has been drawn on this line of credit 
compared to $43,700 for the same period in 1996.

The Company is in the third year of  a five-year lease for 3,000 square feet 
of space for an office, laboratory, and manufacturing plant.  The Company 
moved into the building during October 1994.  Rent payments are $18,000 in 
year one, $18,900 in year two, $19,484 in year three, $20,844 in year four, 
and $21,888 in year five.  The Company also has a purchase option on this 
space in which ten percent of the lease payments may be applied to the 
purchase price.  The Company may exercise an option to lease an additional 
3,000 square feet of adjoining space.  The Company houses its administrative 
offices, laboratory, and manufacturing facility in this complex, utilizing an 
aggregate of approximately 1,650 square feet.  This facility has been built, 
and can be expanded, according to "GMP" (good manufacturing practices) 
specifications in anticipation of the commercial needs of the markets the 
Company serves.  The remaining 1,350 square feet of space is for pilot plant 
manufacturing and an analytical laboratory.  However, this expansion will 
require additional funding and there is no assurance that any additional 
funding will be available.  Management has no immediate plans for this 
expansion.

On May 1, 1995 the Company entered into a joint venture operating as Ocudex, 
Inc.  The Company and Ocumed, Inc., an unrelated company, each own 50% of 
Ocudex.  The Company has agreed to fund on a best efforts basis up to $10,000 
per month for not more than 12 months.  As of June 30, 1997 the Company has 
advanced a total of $51,000 and realized a loss of $10,918 to date.  The 
Company has advanced no additional funds to Ocudex in 1997.  The Company may 
apply additional funds during 1997 to be used for inventory and production 
costs and also to defray the costs of raising equity capital that will allow 
Ocudex to obtain FDA approval for proprietary cyclodextrin-improved generic 
ophthalmic drugs using cyclodextrin complexes brought to it by CTD.  The 
initial and immediate benefit of successfully obtaining such funding will be 
to allow CTD to book a net asset value that will qualify it for NASDAQ small 
cap listing.  As of June 30, 1997 there have been no sales recorded by Ocudex 
of any products.

In May of 1996 the Company entered into a contractual agreement with 
Diversified Corporate Consulting Group, LLC (DCCG), whereby the Company agreed
to transfer 110,010 shares of CTD's voting common stock to DCCG in return for 
future financial services related to business and financial public relations 
improvement.

In the second quarter of 1996, the Company amended its Articles of 
Incorporation whereby the number of voting shares authorized was increased 
from 5,000,000 to 10,000,000.  In addition, non-voting common shares were 
created.  The total amount of non-voting common shares authorized is 
10,000,000.

In continuing to implement its strategic plan of acquiring and developing new 
products through licensing and joint ventures, the Company, on March 10, 1997,
entered into a royalty-bearing agreement with Jurox Pty, Ltd, an Australian 
company manufacturing and selling veterinary pharmaceuticals, to jointly 
develop a cyclodextrin/alfaxalone veterinary anesthetic product.

In the second quarter CTD was awarded a judgement against WTDT, a production 
company and television station in South Florida, for breach of contract to 
provide services related to the marketing and sales of  Garlessence.  The 
Company spent $22,000 to secure these services and has requested $50,000 in 
compensatory costs and damages.  WTDT has filed for protection under Chapter 
11 bankruptcy rules.  Since the expectation of receiving any revenue from this
judgement is very low, the Company will wait until year end to decide how this
will be treated in its financial statements.



Results of Operations

Sales of cyclodextrins and related manufactured complexes have historically 
been volatile.  Sales are primarily to large pharmaceutical and food companies
for research and development purposes.  Sales have also been concentrated 
among a few large customers.  Total revenues were $139,854 and $146,813 for 
six months ended June 30, 1997 and 1996, respectively.  The volatility of the 
Company's revenues appear to have stabilized and are expected to continue to 
grow through the year 2000.  However, sales volatility will continue to make 
the Company's cash use planning from quarter to quarter difficult.  The 
Company is making consistent progress to moderate this volatility by expanding
its product line to more routinely purchased products.  The company introduced
a new product line of cyclodextrin complexes called APT-Flavors and APT-
Fragrances at the International Food Technology show in Orlando, Florida in 
June of this year.

The Company's gross profit margin decreased from 90.0% for the first six 
months of 1996 to 73% for the first six months of 1997, due primarily to two 
large sales totaling approx. $41,000 at less than
 10% gross profit.  The future sales of Garlessence at a gross profit of 
approximately 25% will contribute to overall profitability, but at a 
substantial reduction in gross profit percentage for the year; therefore the 
Company does not expect this past trend of increasing gross profit margins to 
continue.

Taking into account that the costs of the Public offering ($131,122) appeared 
in the financial statements for the first time in the second quarter of '97 as
a result of adherence to accounting rules and the fact that they consisted 
mostly of non-cash items (stock issuance), management feels that it has held 
the line on real operating expenses when one compares the first 6 months of 
1996 ($165,658) to the first 6 months of 1997 ($162,826 - deferred offering 
expense removed).  This small reduction in real operating expenses was 
implemented while still expanding the Company's sales base, developing new 
products, and  implementing its strategy of creating operational affiliates 
that will use CD's in herbal medicines, wastewater remediation, and 
pharmaceuticals.  If one chooses to include the public offering costs, then 
the statement of operations shows a 77% increase in operating expenses from 
the first six months of 1996 ($165,658) to the same period in 1997 ($293,948),
entirely fueled by the largely non-cash public offering expenses.

At December 31, 1995, the Company had a net operating loss carryforward 
totaling approximately $1,322,000 that may be offset against future taxable 
income through the year 2011.  No tax benefit had been reported in the 1995 or
prior year financial statements, however, because the Company believed there 
was greater than 50% chance that the carryforward would expire unused.  During
1996 the Company had taxable income after considering non-deductible expenses 
that utilized approximately $4,000 of the carryforward from prior years.  
Because a portion of the tax loss carryover was used and anticipated 
profitability in the future, the Company determined that a valuation allowance
of 50% of the future tax benefit was appropriate.  Accordingly the Company  
recognized an income tax benefit in 1996 to reflect this change in accordance 
with SFAS No. 109.  Because of the additional losses incurred during the first
six months of 1997 the company has determined that a valuation allowance of 
60% would be more appropriate.  Accordingly, additional income tax expense of 
$24,350 has been recognized.  The  tax benefit from the change in deferred tax 
asset valuation allowance related to the net operating loss carryforward is 
$205,000.  The current portion of this deferred tax asset is valued at 
$137,036 and represents all of the increase in the value of total assets from 
June 30, 1996 ($303,811) to June 30, 1997 ($431,528).  Note that in the 
preceding discussion of total current assets this deferred tax asset has been 
removed uniformly from all the financial comparisons in order to more 
accurately reflect the day to day operating status of the company.


<PAGE> 
PART II: Other Information 
 
 
Item 6.  Exhibits and Reports on Form 8-K 
 
None. 
 
(a)  Exhibits 
 
Exhibit     Description                                             Page 
 
   (2)      Plan of Acquisition, Reorganization, Arrangement, 
            Liquidation or Succession                                None 
 
   (3)      Articles of Incorporation and By-Laws: 
            (i) Certificate of Incorporation filed August 9, 1990,  
            incorporated by reference to the Company's Form 10-SB 
            filed with the U.S. Securities and Exchange Commission 
            February 1, 1994. 
 
            (ii)  By-Laws incorporated by reference to the Company's  
            Form 10-SB filed with the U.S. Securities and Exchange 
            Commission February 1, 1994. 
 
            (iii) Certificates of Amendment to the Articles of 
            Incorporation filed November 18, 1993, and September 24, 
            1993, incorporated by reference to the Company's Form 10-SB 
            filed with the U.S. Securities and Exchange Commission 
            February 1, 1994. 
 
   (4)      Instruments defining the Rights of Security Holders      None 
 
  (10)     Material Contracts                                        None 
 
  (12)     Statement re: Computation of Per Share Earnings           Note 9,

                         Financial Statements
 
  (15)      Letter re: Unaudited Interim Financial Information       None 
 
  (18)      Letter re: Change in Accounting Principles               None 
 
  (19)      Report Furnished to Security Holders                     None 
 
  (22)      Published Report re: Matters Submitted to Vote of 
            Security Holders                                         None 
 
  (23)      Consents of Experts and Counsel                          None 
 
  (24)      Power of Attorney                                        None 
 
  (27)     Financial Data Schedule 
 
  (99)      Additional Exhibits                                      None 
 
(b) Reports on Form 8-K                                              None 
<PAGE> 
     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. 
 
 
Dated:  August 13, 1997 
 
                                          /s/ C. E. RICK STRATTAN 
                                          C. E. RICK STRATTAN 
                                          President, Chief Executive Officer, 
                                          Chief Financial Officer 
<PAGE>