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: September 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 November 12, 1997, the Company had outstanding 1,235,110 shares of 
its common stock. 

<PAGE> 
 
 
PART I:  Financial Information











                  CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.

                 QUARTERLY STATEMENTS FOR THE NINE MONTHS ENDED
                         SEPTEMBER 30, 1997 AND 1996

































CONTENTS                                                           PAGE

BALANCE SHEET                                                       1-2
STATEMENTS OF OPERATIONS                                            3-4
STATEMENTS OF CASH FLOWS                                            5-6
NOTES TO FINANCIAL STATEMENTS                                      7-13



<PAGE>
                   CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                                 BALANCE SHEET
                      NINE MONTHS ENDED SEPTEMBER 30, 1997
                                  (Unaudited)



                                    ASSETS

CURRENT ASSETS
    Cash and Cash Equivalents                                 $ 51,778 
    Investments                                                  8,175 
    Accounts Receivable                                         24,110 
    Inventory                                                   86,013 
    Deposits and Prepaid Expenses                                6,360 
    Note Receivable - Employee, Current Portion                  3,274 
    Deferred Tax Asset                                         137,036 
                                                              ________ 
  TOTAL CURRENT ASSETS                                         316,746 
                                                              ________ 
  PROPERTY AND EQUIPMENT
    Furniture and Equipment                                     57,686 
    Leasehold Improvements                                      24,800 
                                                              ________ 
                                                                82,486 
    Less:  Accumulated Depreciation                            (52,010)
                                                              ________ 
  TOTAL PROPERTY AND EQUIPMENT                                  30,476 
                                                              ________ 
  OTHER ASSETS
    Advances to and Investment in Joint Venture                 40,459 
    License Fee                                                  5,000 
    Deferred Tax Asset                                          67,964 
                                                              ________ 
  TOTAL OTHER ASSETS                                           113,423 
                                                              ________ 
TOTAL ASSETS                                                  $460,645 
                                                              ======== 






                                (CONTINUED)

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


                        LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES
    Accounts Payable and Accrued Expenses                   $    41,807 
    Note Payable on Line-of-Credit                               14,001 
    Payable to Officer                                            9,045 
    Unearned Income                                               8,202 
                                                            ___________ 
  TOTAL CURRENT LIABILITIES                                      73,055 

  COMMON STOCK SUBJECT TO REPURCHASE
    Common Stock, Par Value $.0001 Per Share, 
      100,000 Shares Authorized, 25,000 Shares 
      Issued and Outstanding,                                    6,250 
                                                           ___________ 

  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                                                  121 
    Additional Paid-In Capital                               1,676,053 
    Unrealized Loss on Investments                                (547)
    Accumulated Deficit                                     (1,294,287)
                                                           ___________ 
  TOTAL STOCKHOLDERS' EQUITY                                   381,340 
                                                           ___________ 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                 $   460,645 
                                                           =========== 





                 See Accompanying Notes to Financial Statements.

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


                                 Three Months          Nine Months
                             Ended September 30,   Ended September 30,
                               1997       1996       1997       1996

Product Sales               $  51,375  $  53,527  $ 191,229  $ 200,340
Cost of Products Sold           7,567      7,712     44,807     22,252
                            _________  _________  _________  _________
GROSS PROFIT                   43,808     45,815    146,422    178,088

CONSULTING SERVICES AND 
  OTHER OPERATING REVENUE      43,331         --     43,331         --
                            _________  _________  _________  _________
TOTAL OPERATING REVENUE        87,139     45,815    189,753    178,088

OPERATING EXPENSES
  Advertising                  12,046      1,275     23,060      8,107
  Depreciation and Amortization 9,284      9,229     25,575     40,278
  Consulting Fees              27,390         --     27,390      1,501
  Office Expenses               5,762      8,396     23,718     25,803
  Professional Fees            12,633      4,763     32,922     25,146
  Public Offering Costs        (1,155)        --    129,967         --
  Travel and Entertainment      2,006      1,637      3,675     10,748
  Rent                          5,610      5,373     16,830     16,119
  Research and Development
    Costs                       2,454      2,050      6,359      5,983
  Salaries and Benefits        19,716     37,024     93,563     94,177
  Taxes and Licenses            3,546      3,477     10,181     11,019
                            _________  _________  _________  _________
TOTAL OPERATING EXPENSES       99,292     73,224    393,240    238,881
                            _________  _________  _________  _________
LOSS FROM OPERATIONS          (12,153)   (27,409)  (203,487)   (60,793)
                            _________  _________  _________  _________
OTHER INCOME (EXPENSE)
  Investment and Other Income   1,124      1,024      2,745      1,991
  Gain (Loss) Due to Change 
  in Redemption Price on 
  Common Stock Subject To 
  Repurchase                      775      3,125      1,563         --
  Equity in Loss from 
    Unconsolidated Subsidiary    (123)       (35)      (367)    (9,134)
  Interest Expense               (643)    (1,243)    (1,883)    (2,515)
                            _________  _________  _________  _________
TOTAL OTHER INCOME (EXPENSE)    1,133      2,871      2,058     (9,658)
                            _________  _________  _________  _________





                                    (CONTINUED)

                                        -3-
<PAGE>
                    CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                             STATEMENTS OF OPERATIONS
                                   (Unaudited)
                                   (Concluded)

                                 Three Months          Nine Months
                              Ended September 30,   Ended September 30,
                               1997       1996       1997       1996

INCOME (LOSS) BEFORE INCOME 
  TAX                         (11,020)   (24,538)  (201,429)   (70,451)
INCOME TAX                         --         --    (24,350)        --
                            _________  _________  _________  _________
NET INCOME (LOSS)           $ (11,020) $ (24,538) $(225,779) $ (70,451)
                            =========  =========  =========  =========
NET INCOME (LOSS) PER
  COMMON SHARE              $    (.01) $    (.02) $    (.18) $    (.06)
                            =========  =========  =========  =========
WEIGHTED AVERAGE NUMBER OF
  COMMON SHARES OUTSTANDING 1,235,110  1,183,803  1,229,615  1,127,178
                            =========  =========  =========  =========



                  See Accompanying Notes to Financial Statements.

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

                                                   1997        1996
CASH FLOWS FROM OPERATING ACTIVITIES
  Net Income (Loss)                             $(225,779)   $ (70,451)
                                                _________    _________
  Adjustments to Reconcile Net Income (Loss) to
    Net Cash Used for Operating Activities:
      Depreciation and Amortization                25,575       40,278
      Gain on Sale of Investments                  (2,066)          --
      Stock Issued for Services                        --        9,000
      Deferred Compensation Earned                 18,500        4,312
      Equity in Loss of Unconsolidated
        Joint Venture                                 367        9,134
      (Gain) Loss Based on Redemption Price of
        Common Stock Subject to Repurchase         (1,563)          --
      Decrease (Increase) in Accounts Receivable   82,082        8,342
      Increase in Inventory                        (9,634)        (406)
      Decrease (Increase) in Deposits 
        and Prepaid Expenses                       (2,347)      15,492
      Decrease (Increase) in Deferred Costs       127,531      (40,615)
      Decrease in Deferred Tax Assets              24,350           --
      (Decrease) Increase in Accounts Payable 
        and Accrued Expenses                       31,265      (38,198)
      Increase in Unearned Income                   8,202           --
                                                _________    _________
Total Adjustments                                 302,262        7,339 
                                                _________    _________
NET CASH PROVIDED BY (USED FOR) OPERATING 
  ACTIVITIES                                       76,483      (63,112)
                                                _________    _________
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of Investments                         (36,745)          --
  Proceeds from Sale of Investments                 2,066           --
  Return of Principal on Investments               28,024           --
  Advances to Joint Venture                            --      (17,000)
  Purchase of Equipment and Leasehold
    Improvements                                   (8,758)        (530)
  Repayment of Employee Loan                        9,054        5,302
  Cash Loan to Employee                            (2,579)      (2,142)
                                                _________    _________
NET CASH PROVIDED BY (USED IN) INVESTING 
  ACTIVITIES                                       (8,938)     (14,370)
                                                _________    _________






                                    (CONTINUED)

                                        -5-
<PAGE>
                   CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                            STATEMENTS OF CASH FLOWS
                 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
                      NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
                                    (Unaudited)
                                    (CONCLUDED)



                                                  1997          1996
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds From Issuance of Common Stock,
    Net of Offering Costs                          5,620         3,025
  Proceeds from Line-of-Credit                    14,000        49,700
  Payments on Line-of-Credit                     (52,199)       (2,500)
  Proceeds from Loan Payable to Officer            9,045         1,465
  Payments on Loan Payable to Officer                 --        (6,421)
                                                ________     _________
NET CASH PROVIDED BY (USED IN) FINANCING 
  ACTIVITIES                                     (23,534)       45,269
                                                ________     _________

NET INCREASE (DECREASE) IN CASH AND CASH 
  EQUIVALENTS                                     44,011       (32,213)

CASH AND CASH EQUIVALENTS, Beginning of Period     7,767        46,773
                                                ________     _________
CASH AND CASH EQUIVALENTS, End of Period        $ 51,778     $  14,560
                                                ========     =========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
  Cash Paid During the Year For:
    Interest                                 $   1,883     $   2,515

SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING 
  AND FINANCE ACTIVITY
    Equity in Loss of Unconsolidated Joint
      Venture                                $    367      $   9,134
    Common Stock Issued for Services         $  5,620      $  21,000
    Contribution by Stockholder              $     --      $   6,000














                  See Accompanying Notes to Financial Statements.

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



The information presented herein as of September 30, 1997, and for the three 
and nine months ended September 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 nine month period ended September 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 September 30, 1996 was $35,000. 
Since $7,200 was recorded as of December 31, 1995, an additional $27,800 was 
recognized as amortization expense in the first nine months of 1996.  
Amortization expense of $15,000 has been recognized for the nine month period 
ended September 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 





                                        -7-
<PAGE>
                    CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                          NOTES TO FINANCIAL STATEMENTS
                    NINE MONTHS ENDED SEPTEMBER 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 
$16,830 and $16,119 for the nine months ended September 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 relation services. In return, the Company agreed to pay Geller $2,000 
per month plus out-of-pocket expenses with the first nine 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 nine months ended September 
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 noted below, the total 
consulting fees paid to Geller were deferred in 1996 and expensed in 1997.  
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 in 
1996 and expensed in 1997.

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.


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


NOTE 2 - COMMITMENTS (continued)

On 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 
nine months ended September 30, 1996, was $127,371. 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 nine months ended 
September 30, 1997, was $129,967.

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.







                                     -9-
<PAGE>
                    CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                          NOTES TO FINANCIAL STATEMENTS
                    NINE MONTHS ENDED SEPTEMBER 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 nine months ended 
September 30, 1997, to reserve production time, and also issued to ASNI 
10,000 shares of the Company's 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 
September 30, 1997, 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 amortized this 
amount to expense over five years on the straight-line basis, the estimated 
benefit period of the future services, with any unamortized amount to be 
charged to expense if an employee terminates employment with the Company.

In September 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 September 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.






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


NOTE 3 - EMPLOYEE STOCK PLANS (concluded)

On 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 $4,313 and $18,500 under the stock issuance plan for the 
nine months ended September 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 
September 30, 1996, employees had purchased 33,400 shares for $9,953 under 
this plan.  These shares were all issued on September 6, 1996. No additional 
shares were purchased as of September 30, 1997.


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   $3,750
             1998                              10,000    2,500
                                               ______   ______
          Total                                25,000   $6,250
                                               ======   ======



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


NOTE 5 - MAJOR CUSTOMERS

Sales to three customers for the nine months ended September 30, 1997 
consisted of approximately 69% of total sales. Sales to four customers were 
approximately 70% of total sales for the nine months ended September 30, 
1996.


NOTE 6- LINE-OF-CREDIT

The Company had a $75,000 line of credit with a bank as of September 30, 
1996.  That line-of-credit was reduced to $25,000 as of September 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 September 30, 1997, there is $14,001 
outstanding on this line-of-credit. Total interest expense of $1,146 was 
recorded related to this line-of-credit for the nine months ended September 
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 committed to funding Ocudex up to $120,000 during 
the first twelve months. The Company advanced Ocudex $51,000 as of September
30, 1997 and 1996.

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 
$367 and $9,134 for the nine months ending September 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 September 30, 1997.





                                     -12-
<PAGE>
                    CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                         NOTES TO FINANCIAL STATEMENTS
                    NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
                                   (Unaudited)
                                   (CONCLUDED)


NOTE 8 - INCOME TAXES

During the nine months ended September 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 nine months ended September 
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.



                                     -13-
<PAGE>
STATEMENT RE:  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.


<PAGE>
Item 2. Management's discussion and Analysis of Financial Condition and 
Results of Operation.

Liquidity and Capital Resources

As of September 30, 1997, the Company's operating (tax deferred asset 
removed) liquidity as measured by its total current assets was $179,710 
compared to $202,910 at year end 1996, and $149,202 at June 30, 1997.  The 
increase from the second quarter in 1997 is largely attributable to a deposit 
for services received by the Company on a new Product Development study begun 
in the third quarter.  The operating history of the company has shown that 
current assets decrease during the first, second and/or third 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 during the year.  These assets are actually up more than 38%  
(179,710 vs $129,733) from this point last year.  At September 30, 1996 the 
company had recovered 76% of its total current asset value as of the previous 
year end ($129,733 of $170,400 - Note: This figure did not include a deferred 
tax asset) and in 1997 has recovered 88% ($179,710 of $202,910 - Note: For 
comparison the deferred tax asset is removed) of the 1996 year end value.  
Even though management used current assets in the second and third quarters 
to maintain operations, the Company has increased the rate at which it has 
recovered current assets (76% in 1996 vs. 88% in 1997).  This increase 
indicates the growth in the operating health of the company.  By year end 
management expects an increase in total current assets over the previous year 
end current assets.

Total product and service sales ($234,560 vs $200,340) for the first nine 
months of 1997 have increased over 17% when compared to the first nine months 
of 1996, while real operating expenses ($262,118 deferred offering expense 
removed vs 238,881) have increased less  than 10%, showing that the company's 
revenue flow is increasing.

Inventory continues to be dominated (68.5%) by the unsold Garlessence(r) and 
therefore masks the steady movement of the other components of that 
inventory.  Inventory has increased from December 31, 1996 ($76,379) to 
September 30, 1997 ($86,013) reflecting purchases of cyclodextrins in 
response to anticipated increased demand for the Company's cyclodextrin 
products.  Even though product sales have decreased over the comparable nine 
month periods ($191,229 - nine months of 1997 vs $200,340 - nine months of 
1996), management believes the inventory purchases are prudent.

In management's continuing efforts to keep expenses down, personnel are 
evaluated for productivity.  In the second quarter, effective June 15, one 
laboratory person was replaced and in the third quarter, effective July 15, 
one administration position was terminated and one administration person was 
replaced.  These changes in personnel provide the company with a significant 
improvement in the product sales to salary ratio.  As of September 30, it is 
anticipated that no further personnel changes will be made for the year 1997 
as the Company is operating efficiently.

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 September 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 September 30, 1997, is $55,000.

The company will continue to seek out distribution arrangements that will 
allow it to recover all of its Garlessence(r) licensing prepayment fee and to 
meet its commitments to the licensor.  As of September 30, the company has 
instituted a program of television advertisements and has contracted a 
fulfillment company to handle these sales of Garlessence(r) resulting in an 
additional advertising expense of $11,506 in 1997.  Management is optimistic 
that these advertisements will increase consumer awareness and sales of 
Garlessence(r).  Since the Garlessence(r) inventory has a greater than five 
year shelf life, the Company expects to eventually recover all of its 
investment in this material, but does not expect 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 April 30, 1997, no 
sales of these equity instruments had occurred.  Since this offering closed 
April 30, 1997, the Company expensed in the second quarter the previously 
capitalized deferred offering costs ($131,122).  While most of these offering 
costs were non-cash, the net result was 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 September 30, 1997, $14,000 has been drawn on this line of 
credit compared to $52,200 for the same period in 1996.  In the third 
quarter, the Company also obtained a Line of Credit from a second local bank 
in the amount of $25,000.  As of September 30, 1997, no advances have been 
drawn on this  line.  Management feels that this decrease in the amount of 
advances drawn on the line of credit and the increase in the lines of credit 
available reflect the stronger cash flow position of the Company. 
 
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 September 30, 1997 the Company 
has advanced a total of $51,000 and realized a loss of $11,041 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 September 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.

In a continuing effort to let the public know about the benefits of 
cyclodextrins, the Company accepted the opportunity to appear on the premier 
of a proposed new television show called The Stock Show.  The purpose of this 
weekly series was to bring to the attention of its viewers NASDAQ bulletin 
board companies that presented significant growth opportunities.  In April of 
1997, Company management entered into an agreement with Atlantic Syndication 
Network, Inc. (ASNI), a Las Vegas based production company, to contribute to 
the production fees necessary to produce the first show as follows:
     (a)     $2,500.00  cash
     (b)     10,000 shares of freely trading, voting common stock of CTD
     (c )     options to purchase 25,000 shares of non-voting common stock of 
CTD for $1.00/share

In return, CTD would be guaranteed at least two airings of the 1/2 hour show 
on television and satellite networks as ASNI could secure the air-time.  At 
least two airings of the show occurred on KDOC, a Los Angeles TV station; and 
LVTN (Las Vegas TV Network), a satellite TV network.  The Company also 
received tapes of the show for its own promotional uses.

In an effort to expand the revenue base through service oriented products,  
the Company entered into an agreement with NuPharm, Inc.,a Canadian company 
manufacturing metered dose inhalants (MDI's).  The Company agreed to provide 
research and development services for NuPharm on cyclodextrin/respiratory 
drug complexes for potential use in MDI's.  CTD expects to recognize 
increasing revenues from these services and other similar services provided 
by the Company.

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.  In efforts to offset this 
volatility, the Company has expanded its revenue producing activities to 
include providing research and development services for unrelated companies.   
Sales of both products and services have been concentrated among a few large 
customers.  Total product and service revenues were $234,560 and $200,340 for 
the nine months ended September 30, 1997 and 1996, respectively.  The 
volatility of the Company's revenues appears to have stabilized and the 
revenues are expected to continue to grow through the year 2000.  In addition 
to offering more service oriented products, the Company introduced a new 
product line of cyclodextrin complexes called AP(r)-Flavors and AP(r)-
Fragrances at the International Food Technology show in Orlando, Florida, in 
June of this year.

The Company's gross profit margin on product sales decreased from 88.8% for 
the first nine months of 1996 to 76.6% for the first nine months of 1997, due 
primarily to two large sales in the second quarter totaling approximately 
$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 the 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 1997 
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 nine months 
of 1996 ($238,881) to the first nine months of 1997 ($262,118 - deferred 
offering expense removed).  The Company kept the increase in real operating 
expenses to less than 10% even while  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.  However, if one chooses to include the 
public offering costs, then the statement of operations shows a 65% increase 
in operating expenses from the first nine months of 1996 ($238,881) to the 
same period in 1997 ($393,240), 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 was recognized in the second 
quarter.  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.  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:  November 14, 1997 
 
                                          /s/ C. E. RICK STRATTAN 
                                          C. E. RICK STRATTAN 
                                          President, Chief Executive Officer, 
                                          Chief Financial Officer