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: March 31, 1998      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 April 30, 1998, the Company had outstanding 1,225,110 shares of its
common stock.

<PAGE>


PART I:  Financial Information











                  CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.

                 QUARTERLY STATEMENTS FOR THE THREE MONTHS ENDED
                         March 31, 1998 AND 1997

































CONTENTS                                                           PAGE

BALANCE SHEET                                                     F-1 to F-2
STATEMENTS OF OPERATIONS                                          F-3
STATEMENTS OF CASH FLOWS                                          F-4 to F-5
NOTES TO FINANCIAL STATEMENTS                                     F-6 to F-9



<PAGE>
                   CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                                 BALANCE SHEET
                                  (Unaudited)
<TABLE>
<CAPTION>
                                    ASSETS
                                                                 March 31, 1998
                                                                 --------------
<S>                                                               <C>
CURRENT ASSETS
 Cash and cash equivalents                                        $      9,945
 Investments                                                            18,556
 Accounts receivable                                                    17,898
 Inventory                                                              85,898
 Deferred tax asset                                                     12,000
 Other current assets                                                    9,853
                                                                  ------------
     Total current assets                                              154,151

PROPERTY AND EQUIPMENT
 Furniture and equipment                                                61,915
 Leasehold improvements                                                 24,800
                                                                  ------------
                                                                        86,715
 Less: Accumulated depreciation                                         59,205
                                                                  ------------
     Total property and equipment                                       27,510

OTHER ASSETS
 Deferred offering costs                                                50,000
 Deferred tax asset                                                    238,000
                                                                  ------------
     Total other assets                                                288,000
                                                                  ------------
TOTAL ASSETS                                                      $    469,661
                                                                  ============
</TABLE>
                                  (Continued)

                                      F-1
<PAGE>

                  CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                                 BALANCE SHEET
                                  (Unaudited)
                                  (Concluded)
<TABLE>
<CAPTION>
                      LIABILITIES AND STOCKHOLDERS' EQUITY
                                                                 March 31, 1998
                                                                 --------------
<S>                                                               <C>
CURRENT LIABILITIES
 Accounts payable and accrued expenses                            $     45,184
 Notes payable                                                          17,738
 Payable to Officer                                                     16,582
                                                                  -------------
     Total current liabilities                                          79,504

COMMON STOCK SUBJECT TO REPURCHASE,  par value $.0001 
  per share,  100,000 shares authorized, 5,000 shares 
  issued and outstanding                                                 1,405
                                                                  -------------

STOCKHOLDERS' EQUITY
 Class A common stock, par value $.0001 per share,  
  9,900,000 shares authorized, 1,220,110 shares 
  issued and outstanding;  Class B non-voting common 
  stock, par value $.0001 per share, 10,000,000 shares
  authorized, 0 shares issued and outstanding                              120
 Additional paid-in capital                                          1,670,744
 Unrealized loss on investments                                         (2,494)
 Accumulated deficit                                                (1,279,619)
                                                                  -------------
     Total stockholders' equity                                        388,752
                                                                  -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        $    469,661
                                                                  =============
</TABLE>

                See Accompanying Notes to Financial Statements

                                      F-2
<PAGE>

                  CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                           STATEMENTS OF OPERATIONS
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                        Three Months Ending
                                                             March 31,
                                                  -----------------------------
                                                       1998            1997
                                                  --------------   ------------
<S>                                               <C>              <C>
PRODUCT SALES                                     $      44,284    $    79,610

COST OF PRODUCTS SOLD                                     8,667         21,298
                                                  --------------   ------------
GROSS PROFIT                                             35,618         58,312

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES             57,529         69,440
                                                  --------------   ------------
LOSS FROM OPERATIONS                                    (21,912)       (11,128)

OTHER INCOME (EXPENSE)
 Investment and other income                              2,532            657
 Loss due to change in redemption price
  on common stock subject to repurchase                    -           (10,938)
 Equity in loss from unconsolidated joint venture          -              (122)
 Interest expense                                          (854)          (793)
                                                  --------------   ------------
     Total other income (expense)                         1,678        (11,196)
                                                  --------------   ------------
NET LOSS                                                (20,234)       (22,324)
                                                  ==============   ============
NET LOSS PER COMMON SHARE                         $        (.02)   $      (.02)
                                                  ==============   ============
WEIGHTED AVERAGE NUMBER OF COMMON
 SHARES OUTSTANDING                                    1,220,110      1,225,110
                                                  ==============   ============
</TABLE>

                See Accompanying Notes to Financial Statements

                                     F-3
<PAGE>

                  CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                           STATEMENTS OF CASH FLOWS
               Increase (Decrease) in Cash and Cash Equivalents
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                         Three Months Ending
                                                              March 31,
                                                     --------------------------
                                                        1998           1997
                                                     ------------  ------------
<S>                                                  <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES
 Net loss                                            $   (20,234)  $   (22,324)
                                                     ------------  ------------
 Adjustments to reconcile net loss to net cash 
  provided by (used for)  operating activities:
   Depreciation and amortization                           3,571         8,108
   Gain on sale of investments                              (556)         (368)
   Deferred compensation earned                             -            1,438
   Equity in loss of unconsolidated joint venture           -              122
   Loss based on redemption price of common
     stock subject to repurchase                            -           10,938
   Decrease in accounts receivable                        23,638        63,018
   (Increase) decrease in inventory                        1,098        (9,916)
   Increase in other current assets                       (4,773)       (6,953)
   Increase in deferred offering costs                   (15,000)         -
   Increase in accounts payable and
    accrued expenses                                       8,047         5,472
                                                     ------------  ------------
        Total adjustments                                 16,025        72,159
                                                     ------------  ------------
    NET CASH PROVIDED BY (USED FOR) OPERATING
     ACTIVITIES                                           (4,209)       49,835
                                                     ------------  ------------
CASH FLOWS FROM INVESTING ACTIVITIES
 Purchase of equipment and leasehold improvements         (3,733)         -
 Loan to employee                                           -             (779)
 Repayment of employee loan                                  814         5,889
 Proceeds from sale of investment                          9,059         4,400
 Purchases of investments                                 (8,202)      (21,167)
                                                     ------------  ------------
    NET CASH USED IN INVESTING ACTIVITIES                 (2,062)      (11,657)

CASH FLOWS FROM FINANCING ACTIVITIES
 Net proceeds (payments) on line-of-credit                (6,141)      (52,199)
 Proceeds (payments) from investment margin account       (2,556)         -
 Proceeds from loan payable to stockholder                16,770          -
 Payment to stockholder on loan                             (188)         -
                                                     ------------  ------------
    NET CASH PROVIDED BY (USED FOR) FINANCING
     ACTIVITIES                                            7,885       (52,199)
                                                     ------------  ------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS       1,614       (14,021)

CASH AND CASH EQUIVALENTS, beginning of period             8,331         7,767
                                                     ------------  ------------
CASH AND CASH EQUIVALENTS (OVERDRAFT),
 end of period                                       $     9,945   $    (6,254)
                                                     ============  ============
</TABLE>

                                  (Continued)
                                      F-4
<PAGE>

                  CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                           STATEMENTS OF CASH FLOWS
               Increase (Decrease) in Cash and Cash Equivalents
                                  (Unaudited)
                                  (Concluded)
<TABLE>
<CAPTION>
                                                         Three Months Ending
                                                              March 31,
                                                     --------------------------
                                                        1998           1997
                                                     ------------  ------------
<S>                                                  <C>          <C>
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest             $       854   $       793
                                                     ============  ============
</TABLE>

                See Accompanying Notes to Financial Statements

                                     F-5
<PAGE>

                   CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                          NOTES TO FINANCIAL STATEMENTS
                   THREE MONTHS ENDED MARCH 31, 1998 AND 1997
                                  (Unaudited)


The information  presented herein as of March 31, 1998, and for the three months
ended March 31, 1998 and 1997, is unaudited.

(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 three month  period  ended  March 31,  1998,  are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 1998. For further  information,  refer to the financial  statements
and footnotes thereto included in the Company's annual report of Form 10-KSB for
the year ended December 31, 1997.

(2) COMMITMENTS:

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 $5,859
and $5,610 for the three months ended March 31, 1998 and 1997, respectively.

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
pay  approximately  $60,000 for this right.  The agreement allows the Company to
recover this fee through  discounts on inventory  purchased through December 31,
1997. The license fee was amortized on a straight-line basis over the three year
period  of  the  contract  and  was  fully   amortized  at  December  31,  1997.
Amortization  expense in 1997 was $20,000.  In January 1998,  this agreement was
extended  until  December  31,  1998,  including  the right of first  refusal to
reobtain its  exclusive  marketing  rights  during this  period.  The Company is
required to order  additional  inventory of  approximately  $15,000 by March 31,
1998, under the terms of this agreement  extension.  This agreement deadline was
further  extended  on  March  23,  1998  to  June  1,  1998.  The  Company  paid
approximately $5,500 in January 1998 toward this obligation.

In May 1996, the Company  entered into an agreement with  Diversified  Corporate
Consulting Group, L.C., an unrelated company,  to provide consulting services to
be completed within 12 months. In return, the Company issued Diversified 110,110
shares  of the  Company's  common  stock,  a  quantity  equal to 10% of all then
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.

                                     F-6
<PAGE>

                   CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                          NOTES TO FINANCIAL STATEMENTS
                   THREE MONTHS ENDED MARCH 31, 1998 AND 1997
                                  (Unaudited)

(2) COMMITMENTS (Continued):

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  would   commercialize   products  using  those
inventions.  In consideration,  the Company agreed 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.

In April 1997, the Company  entered into an agreement with Atlantic  Syndication
Network,  Inc.  (ASNI) for the  production of a half hour premier cable program.
The Company  paid $2,500 in 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 March 31, 1998, no stock options had been exercised.

The Company has other commitments as discussed in Notes 6 and 8.

(3) COMMON STOCK SUBJECT TO REPURCHASE:

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.

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

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 was classified as a reduction to stockholders' equity in
the accompanying  financial  statements.  The Company amortized this amount over
five years on the  straight-line  basis,  the  estimated  benefit  period of the
future services.

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.

                                     F-7
<PAGE>

                   CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                          NOTES TO FINANCIAL STATEMENTS
                   THREE MONTHS ENDED MARCH 31, 1998 AND 1997
                                  (Unaudited)

(3) COMMON STOCK SUBJECT TO REPURCHASE:  (Continued)


The Company  expensed $1,437 under the stock issuance plan for the quarter ended
March 31, 1997.

In 1997 the Common  Stock  Subject to  Repurchase  was  reflected on the balance
sheet at 50% of the market value as of the balance sheet date, which resulted in
a $10,938  expense in the  accompanying  statement of operations as "Gain (loss)
due to change in  redemption  price on common stock subject to  repurchase."  In
1998 the common stock subject to repurchase is reflected on the balance sheet at
50% of the market value as of June 30, 1997, the employees  termination date. No
shares  have  been  repurchased  by the  Company  through  March 31,  1998.  The
Company's  obligation to repurchase  the remaining  5,000 shares of common stock
expires in 1999.

(4)      MAJOR CUSTOMERS AND SUPPLIERS:

Sales to the three largest  customers  were  approximately  67% and 73% of total
sales for the three months ended March 31, 1998 and 1997, respectively.

(5) NOTES PAYABLE:

The Company has a $25,000  line-of-credit  with a local bank  during  1997.  The
monthly minimum  payment is calculated  based on the  outstanding  balance.  The
interest  rate varies  monthly at prime plus 3% (currently  11.5%).  The Company
owes  approximately  $17,738 at March 31, 1998.  The credit line can be canceled
and payment of the outstanding  amount due can be required on demand by the bank
at anytime.

(6) JOINT VENTURES:

Effective May 1, 1995, the Company entered into a joint venture  agreement under
the name of Ocudex,  Inc. (Ocudex).  The Company and Ocumed,  Inc., an unrelated
company,  each own 50% of Ocudex.  The Company has advanced Ocudex $51,000 as of
March 31,  1998.  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  reduced  its  investment  in the joint  venture to zero at
December 31, 1997, due to uncertainty as to recovery of these amounts.

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 March 31, 1998.

                                     F-8
<PAGE>

                   CYCLODEXTRIN TECHNOLOGIES DEVELOPMENT, INC.
                          NOTES TO FINANCIAL STATEMENTS
                   THREE MONTHS ENDED MARCH 31, 1998 AND 1997
                                  (Unaudited)

(7)      INCOME TAXES:

During the three  months ended March 31, 1998 and 1997,  the Company  provided a
100%  valuation  allowance  for  the  income  tax  benefit  resulting  from  the
respective net loss for the periods presented.  Therefore, no income tax expense
or benefit is provided in the accompanying statement of operations.

(8) DEFERRED OFFERING COSTS:

On October 14, 1997,  the Company  entered into a financial  services  agreement
with an unrelated company for financial  consulting  services related to raising
additional  capital.  Under this  agreement,  the  Company  issued an option for
600,000 shares of the Company's  common stock with an exercise price of $.25 per
share,  which is  approximately  50% of the market price on the date the parties
agreed to the terms of the  agreement.  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 also
agreed to pay the consultant $85,000 in installments of $20,000 in October 1997,
and $5,000 each month  thereafter  until November 1998.  Beginning in March 1998
the  agreement  was  amended to provide  apyment of the  remaining  installments
through  the future  issuance of the  Company's  common  stock.  The Company has
accrued all earned but unpaid amounts at March 31, 1998. The number of shares to
be issued is determined  monthly by dividing $5,000 by 50% of the average market
price of the stock during the month the compensation is earned.  The Company had
paid  $42,500  and  accrued  $7,500  as of March  31,  1998.  The  agreement  is
cancelable by either party by giving sixty days notice.

As  the  Company  is  currently  preparing  for a  private  placement  to  raise
additional  capital in 1998, the costs under this agreement and the direct costs
of preparing a business plan have been classified as deferred charges. The total
amount  deferred at December  31,  1997,  is $35,000.  These and any  additional
deferred  costs will be offset  against the net proceeds of the offering or will
be expensed upon the expiration of the offering.

(9) NET LOSS PER COMMON SHARE:

Net loss per common share is computed in accordance with the new requirements of
Statement of Financial Accounting Standards No. 128 (SFAS 128) at March 31, 1998
and 1997. SFAS 128 requires net loss per share  information to be computed using
a simple  weighted  average of common  shares  outstanding  during  the  periods
presented.  SFAS 128 eliminated the previous requirement that earnings per share
include the effect of any dilutive common stock  equivalents in the calculation.
Common shares  outstanding  do not include  common stock subject to  repurchase.
There was no effect on the 1998 or previously  reported 1997 net loss per common
share amounts as a result of this change in accounting method.

The stated net loss per share  amounts do not  include  any  potential  dilutive
effect if certain  options  issued in 1997 to  purchase  an  additional  625,000
shares of the Company's common stock were exercised.

                                     F-9
<PAGE>
Item 2. Management Discussion and Analysis

Liquidity and Capital Resources
As of March 31, 1998,  the  Company's  working  capital was $74,647  compared to
$108,781 at December 31, 1997.  This  reduction is due primarily to the purchase
of office equipment and the loss from operations.

Total product sales decreased  during the first quarter of 1998 by $35,326 (44%)
compared to the first quarter of 1997.  This decrease in sales is due to general
sales volatility as historically experienced by the Company. However, April 1998
orders  already  exceed the level of sales for the three  months ended March 31,
1998. Selling,  General and Administrative expenses (SG&A) decreased by over 17%
due principally to reduced personnel costs.

Inventory  continues to be dominated (68%) by the Garlessence(R)  retail product
and  therefore  masks  the  steady  movement  of the  other  components  of that
inventory.  While  product  sales have  decreased,  management  has continued to
maintain appropriate  inventory levels in response to the normal customer sales.
Management  expects consulting fee revenues to increase which may offset product
sale volatility.

The three year  period of time  (starting  January 1, 1995) in which the Company
could recover its original  licensing  fee for  Garlessence  of $60,000  through
discounted purchases of raw materials expired at the end of 1997 and the license
fee has been fully  amortized.  The Company has recovered  $9,137 of its license
fee through  purchase  discounts.  The Company  continues to negotiate  with the
German  company to maintain  its  exclusivity  in the U.S.  The Company has been
assured  that it has  right-of-first-refusal  status and may continue to recover
its original licensing fee through purchase discounts until December 31, 1998.

The Company will continue to seek out distribution  arrangements that will allow
it to recover all of its Garlessence(R)  licensing  prepayment fee and inventory
costs and to meet its commitments to the licensor. In the first quarter of 1998,
the Company sold less than $100 of Garlessence. However, Management is currently
working  with a small health  products  telemarketing  company in Arizona,  Life
Enrichment,  to include  Garlessence(R)  in its  promotions.  Advertisement  and
promotion  of  Garlessence(R)  by Life  Enrichment  is  expected to begin in the
second quarter of 1998. Management believes that as a last resort it can recover
at least the inventory  value of the  Garlessence(R)  by selling it to companies
that purchase such inventory.  Since the Garlessence(R)  inventory has a greater
than five year shelf  life,  the  Company  fully  expects to recover  all of its
investment in this product.

In order to alleviate a potential  short term cash shortage  resulting  from the
reduced  sales  levels  in  December  1997 and  early in  1998,  Rick  Strattan,
President,  made a shareholder's  loan to the Company in March of  approximately
$16,800  ($13,000 from a 4.9%  personal  loan account;  and $3,800 from a 90 day
same as cash purchase of computer equipment).  Historically,  there is always at
least one period during each year where slow sales cause a receivables lag. Such
periods  can be  weathered  by  extending  the  Company's  payables.  Management
believed  that a short term loan from a friendly  creditor  would be better than
extending  payables at this time.  The loan is being  amortized  over a 12 month
period at 8% interest with payments due the first of each month. Management does
not expect further funding to be required to meet the Company's cash needs.

To meet the  financial  needs of expected  future  growth,  the Company  filed a
registration  statement with the SEC to make a public  offering in 1996 and 1997
of 250,000 shares of common stock and 125,000 warrants of the Company. No shares
of stock were sold in this offering.  The offering closed April 30, 1997 and the
Company expensed the previously  capitalized  deferred offering costs ($127,467)
in the second quarter of 1997. While most of these offering costs were non-cash,
the net result was a large negative impact on the financial results reported for
the year ended December 31, 1997.

In February 1998, the Company paid off the outstanding balance of $14,001 on its
first line of credit.  This credit line was not  renewed.  As of March 31, 1998,
approximately $17,750 is outstanding on the remaining $25,000 line of credit.

The Company is in the fourth 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.

The Company's  right-of-first-refusal  (ROFR) with Cyclops h.f. (CyC) to certain
inventions  embodied in patents  owned by Cyclops  expired in September of 1997.
Licenses to specific  ophthalmic drugs benefiting from CyC's inventions will now
have to be  negotiated  with the German  company  that holds these  rights.  The
Company feels confident that rights to these inventions can be obtained at least
for sales in the United States.  Contingent upon a successful  private placement
of the  Company's  stock in the  second  or third  quarter  of 1998 the  Company
expects  to file New  Drug  Applications  with the Food and Drug  Administration
(FDA) for the  licensed  ophthalmic  products.  There is no  assurance  that the
Company  will be able to  obtain  licenses  to the CyC  inventions  or that  the
private  placement  proposed will raise sufficient  capital to undertake the New
Drug Applications.

On May 1, 1995 the Company  entered  into a joint  venture  operating as Ocudex,
Inc. The Company and Ocumed,  Inc., (Ocumed) an unrelated company,  each own 50%
of Ocudex.  The Company had agreed to provide  funds on a best efforts  basis of
not more than  $10,000  per month for up to 12 months.  As of March 31, 1998 the
Company had advanced a total of $51,000 and realized  losses of $11,094 to date.
Since  there was no  activity  at Ocudex  during  all of 1997 and the  Company's
efforts  to  acquire  the assets of Ocumed,  did not  materialize,  the  Company
provided an allowance in the fourth quarter of 1997 for the remaining investment
in the amount of $40,406.  The corporate shell will remain  available for future
use as the Company will continue to work with Ocumed to bring  ophthalmic  drugs
using cyclodextrins to the market.

In May of 1996 the Company entered into a contractual agreement with Diversified
Corporate Consulting Group, LLC (DCCG),  whereby the Company transferred 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  as
defined in its  agreement.  While  this  agreement  expired in May of 1997,  the
Company continues to utilize DCCG's services on a best efforts basis. Management
anticipates  benefits  will be realized in 1998 from the  retaining of DCCG (now
called Genesis Consulting (GCLLC)).

Through  GCLLC the Company  retained the services of  Burckhardt & Company,  Inc
(B&C). to coordinate the private placement that will make possible the Company's
planned  ophthalmic  drug  applications  to the FDA.  Planning  for this private
placement began in late 1997 and the Company has spent $40,000 and $2,500 in the
form of consulting fees to B&C and Executive Concepts, respectively. The Company
has also recorded  $2,500 in stock to be issued to Executive  Concepts and $5000
in stock to be issued to B&C. Since these costs are directly attributable to the
proposed private placement,  they have been classified as deferred charges.  The
total  amount  deferred  as of March 31,  1998 is  $50,000.  B&C has advised the
Company that the private  placement  should be complete in the second quarter of
1998.

The private placement is expected to raise $2,000,000; to be used as follows:

   Initial costs to secure Licenses and 
        Intellectual Property                                       $   250,000
   File IND                                                              50,000
   Complete IND studies                                                 300,000
   Working Capital for completing Phase I & II studies                  850,000
   Working Capital for Administering IND through Phase 
        II applications                                                 400,000
   Private Placement Costs                                              150,000
                                                                    ------------
   Total                                                             $2,000,000

The Company  expects the above  process to be  completed  within 12 months of an
initial IND  application;  such  application  could occur as early as the end of
June 1998. Management expects to be able to move several related ophthalmic drug
products through the above process at much reduced incremental costs. Using this
strategy,  the Company anticipates  licensing one or more of the drugs that have
completed  phase II studies to interested  ophthalmic  manufacturing  companies,
thereby  creating  revenue from these  licenses early in 1999.  These  licensing
arrangements  provide a proof of concept  and  thereby  are  expected to provide
credibility for a possible future public offering.  Using the licensing revenues
and/or the proceeds of such a public offering, the Company expects to take drugs
not out-licensed, completely through marketing approval by the FDA (Phase III).

While there are no assurances that the above private placement can be completed,
both B&C and GCLLC have committed  considerable resources to its accomplishment.
Management  has  structured  the  drug  applications  so that  even if only  50%
($1,000,000) of the private placement  proceeds become available to the Company,
the  Company  will be able to  complete  phase II studies on at least one of the
ophthalmic  drugs to be  submitted;  however the planned  economies of multiple,
related  drug  applications  will be lost.  Once the phase I and II studies  are
complete,  Management  believes it can approach investors for additional funding
based on the phase I and II data.  Additional  capital  will be  required if the
Company  is to  complete  the phase III  approvals  itself.  Without  additional
capital, the Company could license the phase I and II data and through licensing
royalties over time generate revenue.

In the case that less than the  $1,000,000 is raised,  the Company will allocate
funds  between doing an IND for the best  pharmaceutical  candidate and creating
retail  over-the-counter  products that require minimal regulatory  intervention
such as  contact  lens  soak  solutions,  benzocaine  patches,  plaque-softening
chewing gum,  etc to be marketed or  sub-licensed  by the Company.  In the event
that  no  further  funding  is  available,   Management  believes  that  it  can
sub-license its secured licensing rights along with the completed IND to a large
ophthalmic company to recover its costs and generate revenues.

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. As of March 31, 1998 no
sales of these products have occurred.

During 1997 CTD was awarded a judgement in the amount of $50,000 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(R).  The Company paid WTDT $22,000 in 1995 to secure their  services
and was awarded additional  compensatory  costs and damages.  WTDT has filed for
protection  under  Chapter 11  bankruptcy  rules.  No amount is  expected  to be
recovered  from this  judgement  and the  Company  has not  recorded  any amount
related to this judgement 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 OTC 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. As of December 31,
1997 the  agreement  with ASNI has been  completed  and no  further  events are
expected.

In  response   to  the  need  for   consulting   services  by  major   companies
commercializing  CD  applications,  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.  No consulting  revenues  were  recognized in the three
months ended March 31, 1997 and 1996, respectively.

Management has evaluated the Company's  computer systems to determine the impact
of the Year 2000 (Y2K) on the Company's operations. Management has completed its
evaluation  and  determined  that both the  hardware  and  software  used by the
Company  are Y2K  capable  and no  additional  cost or impact on  operations  is
expected.

Results of Operations
Sales of  cyclodextrins  and related  manufactured  complexes  are  historically
highly volatile. In efforts to offset this volatility,  the Company continues to
expand its  revenue  producing  activities  to include  providing  research  and
development  services for unrelated  companies and expanding its inventory line
to include

more routinely  purchased products.  While sales are still volatile,  Management
feels that these efforts will reduce the  volatility  and that total product and
service sales will continue to grow through the year 2000.

Total product  sales for the quarter ended March 31, 1998 were $44,284  compared
to $79,610 for the same period in 1997.  While  total  sales  between  these two
periods  decreased  44%,  management  expects  the food  industry's  interest in
cyclodextrins  to  increase  due to the  Food and  Drug  Administration's  (FDA)
announcement that Beta  cyclodextrin is now Generally  Recognized As Safe (GRAS)
in certain food related  applications.  The Company has already  experienced the
impact of the FDA's  approval as orders of product for April 1998 exceed  actual
sales for the three months ended March 31, 1998

Product  sales are  primarily to large  pharmaceutical  and food  companies  for
research and development purposes. Sales of both products and services have been
concentrated among a few large customers.

The Company's gross profit margin on product sales increased from 73% to 80% for
the  first  quarter  of 1997 and  1998,  respectively.  Future  retail  sales of
Garlessence at a gross profit of  approximately  25% will  contribute to overall
profitability,  but at a substantial  reduction in gross profit percentage.  The
Company expects the prior trend of decreasing  gross profit margins to re-emerge
as the cost of  cyclodextrins  rises and retail sales of  Garlessence  and other
lower margin products occur.

Selling,  general and administrative  (SG&A) expenses for the first quarter 1998
($57,529 vs.  $69,440)  decreased 17% from the first quarter 1997. This decrease
is primarily  the result of a reduction in personnel  and related  costs made in
1997.  Management  continues to monitor  SG&A  expenses in efforts to keep these
expenses minimized.

The Company's net loss from operations for the three months ended March 31, 1998
was  $21,912  versus  $11,128  for the same  period in 1997  primarily  due to a
$35,326  decrease in sales between the two periods offset by reduced expenses in
the 1998  period.  The  Company  will  continue  to develop  new  products,  and
implement its strategy of creating operational  affiliates that will use CD's in
herbal medicines, wastewater remediation, and pharmaceuticals.


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

   (4)      Instruments defining the Rights of Security Holders         None

  (10)      Material Contracts                                          None

  (11)      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:  May 14, 1998

                                          /s/ C. E. RICK STRATTAN
                                          C. E. RICK STRATTAN
                                          President, Chief Executive Officer,
                                          Chief Financial Officer