Cyclo Therapeutics Inc (CYTH)

[octagramt]

easy to read version, use yahoo! finance. http://finance.yahoo.com/q/is?s=CTDH.OB+Income+Statement&annual shows net loss of $193,000 (scroll to bottom of page to see final result after expenses are deducted from income)

then switch to cash flow: http://finance.yahoo.com/q/cf?s=CTDH.OB+Cash+Flow&annual The net loss of $193,000 is being offset by adjustments of approximately $302,000, which is why the total positive cash flow (approximately $108,000) is due to adjustments only. Positive total cash flow needs to be due to net income, not adjustments as it is now. To take a closer look at the adjustments go here: http://www.sec.gov/Archives/edgar/data/922247/000092224710000002/ctdh10k2009a.txt One question that comes to mind is why are they including the $255,388 of 'Stock compensation to employees' as part of their 'Adjustments to reconcile net loss to net cash provided by operating activities'? The company made money by paying stock to it's employees? This doesn't seem right as compensation is a company expense, not a profit. Perhaps that line in the report is simply worded poorly. If this was excluded, total operations for the year would have been negative.