anik20220630

anik20220630_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-14027

Anika Therapeutics, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	04-3145961
(State or Other Jurisdiction of	(I.R.S. Employer Identification No.)
Incorporation or Organization)

32 Wiggins Avenue, Bedford, Massachusetts 01730

(Address of Principal Executive Offices) (Zip Code)

(781) 457-9000

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered

Common Stock, par value $0.01 per share	ANIK	NASDAQ Global Select Market

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐

Accelerated filer ☒

Non-accelerated filer ☐

Smaller reporting

company ☐

Emerging growth

company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

APPLICABLE ONLY TO CORPORATE ISSUERS:

As of July 29, 2022, there were 14,599,937 outstanding shares of Common Stock, par value $0.01 per share.

ANIKA THERAPEUTICS, INC.

TABLE OF CONTENTS

		Page
Part I	Financial Information
Item 1.	Condensed Consolidated Financial Statements (unaudited):	3
	Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021	3
	Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2022 and 2021	4
	Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2022 and 2021	5
	Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021	6
	Notes to Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29
Part II	Other Information
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 6.	Exhibits	31
Signatures		32

References in this Quarterly Report on Form 10-Q to “we,” “us,” “our” and “our company,” and other similar references refer to Anika Therapeutics, Inc. and its subsidiaries unless the context otherwise indicates.

Anika, Anika Therapeutics, Anikavisc, Arthrosurface, Cingal, Hyaff, Monovisc, Orthovisc, Parcus Medical, Tactoset, Hyvisc and WristMotion are our registered trademarks that appear in this Quarterly Report on Form 10-Q. For convenience, these trademarks appear in this Quarterly Report on Form 10-Q without ® and ™ symbols, but that practice does not mean that we will not assert, to the fullest extent under applicable law, our rights to the trademarks. This Quarterly Report on Form 10-Q also contains trademarks and trade names that are the property of other companies and licensed to us.

PART I:

FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

Anika Therapeutics, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)

	June 30,			December 31,
ASSETS	2022			2021
Current assets:
Cash and cash equivalents	$	91,392		$	94,386
Accounts receivable, less allowance for credit losses of $1,405 and $1,442 at June 30, 2022 and December 31, 2021, respectively		32,172			29,843
Inventories, net		35,336			36,010
Prepaid expenses and other current assets		8,956			8,289
Total current assets		167,856			168,528
Property and equipment, net		48,087			47,602
Right-of-use assets		31,607			20,957
Other long-term assets		20,914			20,285
Intangible assets, net		78,490			82,382
Goodwill		7,169			7,781
Total assets	$	354,123		$	347,535

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,165		$	7,633
Accrued expenses and other current liabilities		16,951			17,847
Contingent consideration		4,315			4,315
Total current liabilities		29,431			29,795
Other long-term liabilities		587			1,258
Deferred tax liability		8,220			10,157
Lease liabilities		29,732			19,240
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.01 par value; 1,250 shares authorized, no shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively					-
Common stock, $0.01 par value; 90,000 shares authorized, 14,598 and 14,441 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		146			144
Additional paid-in-capital		72,851			67,081
Accumulated other comprehensive loss		(6,646	)		(5,718	)
Retained earnings		219,802			225,578
Total stockholders’ equity		286,153			287,085
Total liabilities and stockholders’ equity	$	354,123		$	347,535

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Anika Therapeutics, Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income

(in thousands, except per share data)

(unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Revenue	$	39,657		$	38,145		$	76,350		$	72,437
Cost of product revenue		14,795			17,333			29,684			30,651
Gross Profit		24,862			20,812			46,666			41,786

Operating expenses:
Research & development		6,975			7,293			13,132			13,654
Selling, general & administrative		21,268			17,989			40,469			36,164
Change in fair value of contingent consideration		-			(13,650	)		-			(18,470	)
Total operating expenses		28,243			11,632			53,601			31,348
(Loss) income from operations		(3,381	)		9,180			(6,935	)		10,438
Interest and other income (expense), net		96			(50	)		(58	)		(93	)
(Loss) income before income taxes		(3,285	)		9,130			(6,993	)		10,345
(Benefit from) provision for income taxes		(442	)		2,599			(1,217	)		976
Net (loss) income	$	(2,843	)	$	6,531		$	(5,776	)	$	9,369

Net (loss) income per share:
Basic	$	(0.20	)	$	0.45		$	(0.40	)	$	0.65
Diluted	$	(0.20	)	$	0.45		$	(0.40	)	$	0.64

Weighted average common shares outstanding:								-
Basic		14,555			14,393			14,511			14,368
Diluted		14,555			14,627			14,511			14,583

Net (loss) income	$	(2,843	)	$	6,531		$	(5,776	)	$	9,369
Foreign currency translation adjustment		(847	)		199			(928	)		(310	)
Comprehensive (loss) income	$	(3,690	)	$	6,730		$	(6,704	)	$	9,059

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Anika Therapeutics, Inc. and Subsidiaries

Consolidated Statements of Stockholders' Equity

(in thousands)

(unaudited)

	Six Months Ended June 30, 2022
												Accumulated
	Common Stock											Other			Total
	*Number of*			*$.01 Par*		*Additional Paid*			*Retained*			*Comprehensive*			*Stockholders'*
	*Shares*			*Value*		*in Capital*			*Earnings*			*Loss*			*Equity*
Balance, January 1, 2022		14,441		$	144	$	67,081		$	225,578		$	(5,718	)	$	287,085
Issuance of common stock for equity awards		1			-		15									15
Vesting of restricted stock units		106			1		(1	)								-
Stock-based compensation expense							2,545									2,545
Retirement of common stock for minimum tax withholdings		(30	)		-		(844	)								(844	)
Net income										(2,933	)					(2,933	)
Other comprehensive income													(81	)		(81	)
Balance, March 31, 2022		14,518		$	145	$	68,796		$	222,645		$	(5,799	)	$	285,787
Vesting of restricted stock units		61			1		(1	)								-
Issuance of ESPP shares		20			-		-									-
Stock-based compensation expense							4,081									4,081
Retirement of common stock for minimum tax withholdings		(1	)		-		(25	)								(25	)
Net income										(2,843	)					(2,843	)
Other comprehensive income													(847	)		(847	)
Balance, June 30, 2022		14,598		$	146	$	72,851		$	219,802		$	(6,646	)	$	286,153

Six Months Ended June 30, 2021

SEC Form 10-Q filed by Anika Therapeutics Inc.