anik20240630

anik20240630_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, 2024

☐	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 Incorporation or Organization)	(I.R.S. Employer Identification No.)

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	Emerging growth
			company ☐	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, 2024, there were 14,796,726 outstanding shares of Common Stock, par value $0.01 per share.

ANIKA THERAPEUTICS, INC.

TABLE OF CONTENTS

		Page
Part I	Financial Information	3
Item 1.	Condensed Consolidated Financial Statements (unaudited):	3
	Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023	3
	Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2024 and 2023	4
	Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2024 and 2023	5
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22
Item 4.	Controls and Procedures	22
Part II	Other Information	22
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults Upon Senior Securities	23
Item 4.	Mine Safety Disclosures	23
Item 5.	Other Information	23
Item 6.	Exhibits	24
Signatures		25

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

ANIKA, ANIKA THERAPEUTICS, ARTHROSURFACE, CINGAL, HYAFF, HYALOFAST, HYVISC, INTEGRITY, MONOVISC, ORTHOVISC, PARCUS MEDICAL, and TACTOSET 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

Condensed Consolidated Balance Sheets

(in thousands, except per share data)

(unaudited)

	June 30,			December 31,
ASSETS	2024			2023
Current assets:
Cash and cash equivalents	$	62,822		$	72,867
Accounts receivable, net		33,773			35,961
Inventories		51,464			46,386
Prepaid expenses and other current assets		6,941			8,095
Total current assets		155,000			163,309
Property and equipment, net		47,685			46,198
Right-of-use assets		27,765			28,767
Other long-term assets		19,524			18,672
Deferred tax assets		1,362			1,489
Intangible assets, net		3,969			4,626
Goodwill		7,350			7,571
Total assets	$	262,655		$	270,632

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	9,994		$	9,860
Accrued expenses and other current liabilities		16,127			21,199
Total current liabilities		26,121			31,059
Other long-term liabilities		407			404
Lease liabilities		25,789			26,904
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.01 par value; 1,250 shares authorized, no shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		-			-
Common stock, $0.01 par value; 90,000 shares authorized, 15,080 issued and 14,839 outstanding and 14,848 issued and 14,660 outstanding at June 30, 2024 and December 31, 2023, respectively		148			147
Additional paid-in-capital		93,156			90,009
Accumulated other comprehensive loss		(6,416	)		(5,943	)
Retained earnings		123,450			128,052
Total stockholders’ equity		210,338			212,265
Total liabilities and stockholders’ equity	$	262,655		$	270,632

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

Anika Therapeutics, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(in thousands, except per share data)

(unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2024			2023			2024			2023
Revenue	$	41,921		$	44,302		$	82,444		$	82,226
Cost of product revenue		14,556			15,330			30,451			30,411
Gross Profit		27,365			28,972			51,993			51,815

Operating expenses:
Research & development		7,398			8,914			15,562			17,314
Selling, general & administrative		19,806			23,689			41,333			50,685
Total operating expenses		27,204			32,603			56,895			67,999
Income (loss) from operations		161			(3,631	)		(4,902	)		(16,184	)
Interest and other income, net		595			561			1,187			1,100
Income (loss) before income taxes		756			(3,070	)		(3,715	)		(15,084	)
Provision for (benefit from) income taxes		844			(329	)		887			(1,993	)
Net loss	$	(88	)	$	(2,741	)	$	(4,602	)	$	(13,091	)

Net loss per share:
Basic	$	(0.01	)	$	(0.19	)	$	(0.31	)	$	(0.89	)
Diluted	$	(0.01	)	$	(0.19	)	$	(0.31	)	$	(0.89	)

Weighted average common shares outstanding:
Basic		14,839			14,688			14,769			14,671
Diluted		14,839			14,688			14,769			14,671

Net loss	$	(88	)	$	(2,741	)	$	(4,602	)	$	(13,091	)
Foreign currency translation adjustment		(101	)		14			(473	)		286
Comprehensive loss	$	(189	)	$	(2,727	)	$	(5,075	)	$	(12,805	)

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

Anika Therapeutics, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders' Equity

(in thousands, except per share data)

(unaudited)

	Six Months Ended June 30, 2024
	Common Stock												Accumulated
	Number of			$.01 Par			Additional Paid			Retained			Other Comprehensive			Total Stockholders'
	Shares			Value			in Capital			Earnings			Loss			Equity
Balance, January 1, 2024		14,660		$	147		$	90,009		$	128,052		$	(5,943	)	$	212,265
Issuance of common stock for equity awards		1			-			23			-			-			23
Vesting of restricted stock units		250			2			(2	)		-			-			-
Stock-based compensation expense		-			-			3,430			-			-			3,430
Retirement of common stock for minimum tax withholdings		(90	)		(1	)		(2,295	)		-			-			(2,296	)
Net loss		-			-			-			(4,514	)		-			(4,514	)
Other comprehensive loss		-			-			-			-			(372	)		(372	)
Balance, March 31, 2024		14,821		$	148		$	91,165		$	123,538		$	(6,315	)	$	208,536
Issuance of common stock for equity awards		2			-			53			-			-			53
Vesting of restricted stock units		49			1			(1	)		-			-			-
Issuance of ESPP shares		24			-			411			-			-			411
Stock-based compensation expense		-			-			3,103			-			-			3,103
Repurchase of common stock		(53	)		(1	)		(1,369	)		-			-			(1,370	)
Retirement of common stock for minimum tax withholdings		(4	)		-			(206	)		-			-			(206	)
Net loss		-			-			-			(88	)		-			(88	)
Other comprehensive loss		-			-			-			-			(101	)		(101	)
Balance, June 30, 2024		14,839		$	148

SEC Form 10-Q filed by Anika Therapeutics Inc.