# EDGAR Filing Document

**Accession Number:** 0000898437
**File Stem:** 0001171843-23-001426
**Filing Date:** 2023-3
**Character Count:** 37861
**Document Hash:** 36222422631376a6e71526517cdbe272
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001171843-23-001426.hdr.sgml**: 20230306

**ACCESSION NUMBER**: 0001171843-23-001426

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230306

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230306

**DATE AS OF CHANGE**: 20230306

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Anika Therapeutics, Inc.
- **CENTRAL INDEX KEY:** 0000898437
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
- **IRS NUMBER:** 043145961
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14027
- **FILM NUMBER:** 23709025

**BUSINESS ADDRESS:**
- **STREET 1:** 32 WIGGINS AVENUE
- **CITY:** BEDFORD
- **STATE:** MA
- **ZIP:** 01730
- **BUSINESS PHONE:** (781) 457-9000

**MAIL ADDRESS:**
- **STREET 1:** 32 WIGGINS AVENUE
- **CITY:** BEDFORD
- **STATE:** MA
- **ZIP:** 01730

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ANIKA THERAPEUTICS INC
- **DATE OF NAME CHANGE:** 19970114

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ANIKA RESEARCH INC
- **DATE OF NAME CHANGE:** 19930309

?xml version="1.0" encoding="utf-8"?Form 8-K

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

### Washington, D.C. 20549
_________________

### FORM 8-K
_________________

#### CURRENT REPORT

#### Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

#### Date of Report (Date of earliest event reported): March 6, 2023
_______________________________

#### Anika Therapeutics, Inc.
(Exact name of registrant as specified in its charter)

_______________________________

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-14027** | **04-3145961** |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (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)

#### Not Applicable
(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

---

| | |
|:---|:---|
| Title of each class | 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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

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

**Item 2.02. Results of Operations and Financial Condition.**

The following information, including the exhibit attached hereto, is intended to be furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing.

On March 6, 2023, Anika Therapeutics, Inc. issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2022. The full text of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

**Item 9.01. Financial Statements and Exhibits.**

***(d) Exhibits.***

---

| | |
|:---|:---|
| **<u>Exhibit Number</u>** | **<u>Description</u>** |
| [99.1](exh_991.htm) | [Press Release of Anika Therapeutics, Inc. dated March 6, 2023](exh_991.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

#### SIGNATURE
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 hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Anika Therapeutics, Inc.** | **Anika Therapeutics, Inc.** |
| Date: March 6, 2023 | By: | <u>/s/ CHERYL R. BLANCHARD&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> |
|  |  | CHERYL R. BLANCHARD |
|  |  | President and Chief Executive Officer |

---

## Exhibit 99.1

**EXHIBIT 99.1**

**Anika Reports Fourth Quarter and Year-End Fiscal 2022 Financial Results**

*Delivered Fourth Quarter Revenue Growth of 11% and Full Year 2022 Revenue Growth of 6%*

*Completed First Surgeries and Initiated Limited Market Release of New RevoMotion™ Reverse Shoulder Arthroplasty System*

*Commenced Full Market Release of X-Twist™ Fixation System in Sports Medicine*

*Hyalofast<sup>®</sup>, Anika's Off-the-Shelf Single-Stage Cartilage Repair Product, Designated as a Breakthrough Device by FDA; Pivotal Phase III Clinical Trial Approaching Full Enrollment, with 199 Enrolled out of 200*

*Engaging with FDA Regarding Next Steps for Regulatory Approval of Cingal<sup>®</sup>, Anika's Next Generation, Non-Opioid, Single-Injection Product to Treat Short and Long-Term OA Pain* 

BEDFORD, Mass., March 06, 2023 (GLOBE NEWSWIRE) -- <u>Anika Therapeutics, Inc.</u> (NASDAQ: ANIK), a global joint preservation company in early intervention orthopedics, today reported financial results for its fourth quarter and full year ended December 31, 2022.

**Fourth Quarter 2022 Financial Summary**

* Revenue in the fourth quarter of 2022 was $39.6 million, up 11% compared with $35.8 million in the fourth quarter of 2021. Osteoarthritis (OA) Pain Management<sup>1</sup> revenue of $23.7 million, up 20%Joint Preservation and Restoration revenue of $14.3 million, up 8%Non-Orthopedic<sup>1</sup> revenue of $1.5 million, down 46% 

* Gross margin was 61%, including $1.6 million of non-cash acquisition-related expenses and $0.6 million of product rationalization charges; Adjusted gross margin<sup>2</sup> was 66%.

* Net loss was ($4.9) million, or ($0.34) per share, compared to net loss of ($5.8) million, or ($0.40) per share, in the prior year period. Adjusted net loss<sup>2</sup> was ($3.0) million, or ($0.21) per share, compared to adjusted net loss<sup>2</sup> of ($3.2) million, or ($0.23) per share, in the prior year period.

* Adjusted EBITDA<sup>2</sup> was $1.4 million, compared to adjusted EBITDA<sup>2</sup> of ($0.2) million in the fourth quarter of 2021.

* Operating cash flow was $0.5 million; quarter ending cash balance was $86.3 million with no outstanding debt.

**Full Year 2022 Financial Summary** 

* Revenue for fiscal 2022 increased 6% to $156.2 million, compared with $147.8 million in 2021 OA Pain Management<sup>1</sup> revenue of $97.9 million, up 9%Joint Preservation and Restoration of $50.4 million, up 4%Non-Orthopedic<sup>1</sup> revenue of $7.9 million, down 18% 

* Gross margin was 60%, reflecting $6.2 million of non-cash acquisition-related expenses and $3.2 million of product rationalization charges. Adjusted gross margin<sup>2</sup>, excluding these charges, was 66%.

* Net loss was ($14.9) million, or ($1.02) per share, compared to net income of $4.1 million, or $0.28 per diluted share, in 2021. Net income in 2021 was favorably impacted from a reduction in the fair value of contingent consideration of $17.0 million, net of tax, or $1.16 per diluted share. Adjusted net loss<sup>2</sup>for the year was ($7.1) million, or ($0.49) per share, compared to adjusted net loss of ($0.4) million, or ($0.02) per share in 2021.

* Adjusted EBITDA<sup>2</sup> was $12.6 million, compared to $16.4 million in 2021

* Operating cash flow was $4.4 million

<sup>1</sup> OA Pain Management was previously referred to as Joint Pain Management; Non-Orthopedic was previously referred to as Other.

<sup>2</sup> See description of non-GAAP financial information contained in this release.

"We delivered strong operational and financial performance in the fourth quarter, building momentum for Anika's multi-year growth strategy," said Cheryl R. Blanchard, Ph.D., Anika's President and CEO. "We continued to benefit from the strength of our market-leading OA Pain Management business, which enabled investment in the new products we have launched across regenerative, sports medicine and joint solutions. These products target the shoulder and rotator cuff, the largest and fastest growing segments of the joint preservation market, and we are seeing strong demand and potential across the portfolio. We enter Anika's 31<sup>st</sup> year with a healthy balance sheet and a robust and growing product portfolio, underpinning our confidence that Anika is poised to accelerate growth and value creation."

**Fiscal 2022 and Recent Business Highlights**

* **Leadership in OA Pain Management Market** #1 U.S. market share position for 2022 in OA Pain Management with single-injection Monovisc<sup>®</sup> and multi-injection Orthovisc<sup>®</sup>. In August 2022, DePuy Mitek extended our license and supply agreement for Orthovisc for another 5-year term through December 2028.Outside the U.S., in addition to Monovisc and Orthovisc, Anika is also driving above-market growth with its next generation, non-opioid, single-injection product, Cingal, to treat short and long-term OA pain, sold in over 35 countries. 

* **Building a Best-in-Class Portfolio of Joint Preservation and Restoration Solutions** Initiated limited market release of new RevoMotion Reverse Shoulder Arthroplasty system with first surgeries performed in Q1 2023. RevoMotion's differentiated bone preserving design expands Anika's shoulder arthroplasty portfolio in the over $800 million U.S. reverse shoulder market and offers the industry's smallest diameter threaded glenoid baseplate.Commenced full market launch of X-Twist Fixation System, Anika's cornerstone suture anchor system, in early 2023 following successful limited launch in the second half of 2022. X-Twist is a key addition to Anika's portfolio and is uniquely positioned to address the needs of surgeons performing high volume soft tissue repair procedures such as rotator cuff repair and ankle stabilization surgeries.Continued accelerated growth of Tactoset<sup>®</sup>, Anika's regenerative solution for insufficiency fractures and soft tissue hardware augmentation, with revenue up 28% in 2022 and multiple planned 510(k)s targeting further expansion.Submitted multiple 510(k)s for a new innovative HA-based regenerative rotator cuff system, which will further build upon Anika's growing and differentiated shoulder portfolio. 

* **Advancing Cingal Towards U.S. Regulatory Approval** Announced that Cingal, Anika's next generation, non-opioid, single-injection HA-based product combined with fast-acting steroid, successfully achieved its primary endpoint in a third Phase III clinical trial, Cingal 19-01, which demonstrated the superiority of Cingal over steroid alone, for OA pain relief at 26 weeks.Together with previous studies, Cingal has shown superiority over each of its active ingredients and placebo, consistently demonstrating strong and durable pain relief in OA patients.Engaging with the FDA regarding next steps for U.S. regulatory approval and exploring the potential to advance Cingal through commercial partnerships in the U.S. and select Asian markets. 

* **Ramping Up Medical Education Activities** Held multiple medical education events with more than 450 U.S. surgeons trained in-person in 2022 in addition to other training activities at industry meetings. 

* **Approaching Full Enrollment for Hyalofast's Pivotal Phase III Clinical Trial** Hyalofast has been designated as a Breakthrough Device by the FDA, allowing prioritized interaction and review.Approaching full enrollment in pivotal Phase III clinical trial with 199 of 200 subjects enrolled.Company expects to be on track to file for a Premarket Approval (PMA) with the FDA in 2025. 

**Fiscal 2023 Revenue Outlook** 

The Company expects its overall revenue for fiscal year 2023 to be between $158 million and $163 million, representing growth of 1% to 4% compared to 2022, as growth in OA Pain Management and Joint Preservation and Restoration is offset by lower ancillary Non-Orthopedic revenues\*.

Revenue ranges by product family are:

* OA Pain Management of $93.5-$96 million, up 2% to 4%\*

* Joint Preservation and Restoration of $55.5-$58 million, up 10% to 15%

* Non-Orthopedic of approximately $9 million, down ~35%\*

\*Beginning in the first quarter of 2023, revenue from veterinary products historically reported in OA Pain Management will be reported in the Non-Orthopedic product family to provide investors a more accurate representation of the performance of our business. The Company's growth outlook for 2023 reflects this reclassification for both 2023 and 2022. Veterinary revenue included in OA Pain Management in 2022 was $5.9 million.

**Conference Call Information** 

Anika's management will hold a conference call and webcast to discuss its financial results and business highlights today, Monday, March 6, 2023, at 5:00 pm ET. The conference call can be accessed by dialing 1-877-407-0792 (toll-free domestic) or 1-201-689-8263 (international) and providing the conference ID number 13735624. A live audio webcast will be available in the Investor Relations section of Anika's website, www.anika.com. A slide presentation with highlights from the conference call will be available in the Investor Relations section of the Anika website. A replay of the webcast will be available on Anika's website approximately two hours after the completion of the event.

**About Anika**

Anika Therapeutics, Inc. (NASDAQ: ANIK), is a global joint preservation company that creates and delivers meaningful advancements in early intervention orthopedic care. Leveraging our core expertise in hyaluronic acid and implant solutions, we partner with clinicians to provide minimally invasive products that restore active living for people around the world. Our focus is on high opportunity spaces within orthopedics, including Osteoarthritis Pain Management, Regenerative Solutions, Sports Medicine and Arthrosurface Joint Solutions, and our products are efficiently delivered in key sites of care, including ambulatory surgery centers. Anika's global operations are headquartered outside of Boston, Massachusetts. For more information about Anika, please visit www.anika.com.

ANIKA, ANIKA THERAPEUTICS, CINGAL, MONOVISC, ORTHOVISC, TACTOSET, X-TWIST, REVOMOTION and the Anika logo are registered trademarks of Anika Therapeutics, Inc. or its subsidiaries. HYALOFAST is a registered trademark of Fidia Farmaceutici S.p.a. and is licensed exclusively to Anika Therapeutics S.r.l.

**Non-GAAP Financial Information**

Non-GAAP financial measures should be considered supplemental to, and not a substitute for, the Company's reported financial results prepared in accordance with GAAP. Furthermore, the Company's definition of non-GAAP measures may differ from similarly titled measures used by others. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, Anika strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety. The Company presents these non-GAAP financial measures because it uses them as supplemental measures in internally assessing the Company's operating performance, and, in the case of Adjusted EBITDA, it is set as a key performance metric to determine executive compensation. The Company also recognizes that these non-GAAP measures are commonly used in determining business performance more broadly and believes that they are helpful to investors, securities analysts, and other interested parties as a measure of comparative operating performance from period to period.

*Adjusted Gross Margin*

Adjusted gross margin is defined by the Company as adjusted gross profit divided by total revenue. The Company defines adjusted gross profit as GAAP gross profit excluding amortization of certain acquired assets, the impact of inventory fair-value step up associated with our recent acquisitions and non-cash product rationalization charges.

*Adjusted EBITDA* 

Adjusted EBITDA is defined by the Company as GAAP net income (loss) excluding depreciation and amortization, interest and other income (expense), income taxes, stock-based compensation expense, acquisition related expenses, non-cash charges related to goodwill impairment and changes in the fair value of contingent consideration associated with the Company's recent acquisitions as a result of the COVID pandemic, and non-cash product rationalization charges.

*Adjusted Net Income (Loss) and Adjusted EPS* 

Adjusted net income (loss) is defined by the Company as GAAP net income excluding acquisition related expenses, inclusive of the impact of purchase accounting, on a tax effected basis, and the non-cash product rationalization charges. In the context of adjusted net income (loss), the impact of purchase accounting includes amortization of inventory step up and intangible assets recorded as part of purchase accounting for acquisition transactions. The amortized assets contribute to revenue generation, and the amortization of such assets will recur in future periods until such assets are fully amortized. These assets include the estimated fair value of certain identified assets acquired in acquisitions in 2020 and beyond, including in-process research and development, developed technology, customer relationships and acquired tradenames. As a result of COVID, the Company is also specifically excluding the impacts of goodwill impairment charges and changes in the fair value of contingent consideration associated with the acquisition transactions, each on a tax effected basis. Adjusted diluted EPS is defined by the Company as GAAP diluted EPS excluding acquisition related expenses and the impact of purchase accounting, each on a tax-adjusted per share basis, and non-cash product rationalization charges. Again, the Company is also specifically excluding the impacts of goodwill impairment charges and changes in the fair value of contingent consideration associated with recent acquisition transactions, each on a tax effected basis if applicable.

A reconciliation of adjusted gross profit to gross profit (and the associated adjusted gross margin calculation), adjusted EBITDA to net income (loss), adjusted net income (loss) to net income (loss) and adjusted diluted EPS to diluted EPS, the most directly comparable financial measures calculated and presented in accordance with GAAP, is shown in the tables at the end of this release.

**Forward-Looking Statements** 

*This press release may contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning the Company's expectations, anticipations, intentions, beliefs or strategies regarding the future which are not statements of historical fact, including the final sentence of Dr. Blanchard's quote, the bullets with respect to the filing of 510(k)s for Tactoset and Anika's new rotator cuff system, the anticipated meeting with the FDA and potential partnerships regarding Cingal, and the anticipated Hyalofast enrollment and filing of a Pre-Market Approval, all in the section titled Fiscal 2022 and Recent Business Highlights, and the statements made in the section titled Fiscal 2023 Revenue Outlook. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks, uncertainties, and other factors. The Company's actual results could differ materially from any anticipated future results, performance, or achievements described in the forward-looking statements as a result of a number of factors including, but not limited to, (i) the Company's ability to successfully commence and/or complete clinical trials of its products on a timely basis or at all; (ii) the Company's ability to obtain pre-clinical or clinical data to support domestic and international pre-market approval applications, 510(k) applications, or new drug applications, or to timely file and receive FDA or other regulatory approvals or clearances of its products; (iii) that such approvals will not be obtained in a timely manner or without the need for additional clinical trials, other testing or regulatory submissions, as applicable; (iv) the Company's research and product development efforts and their relative success, including whether we have any meaningful sales of any new products resulting from such efforts; (v) the cost effectiveness and efficiency of the Company's clinical studies, manufacturing operations, and production planning; (vi) the strength of the economies in which the Company operates or will be operating, as well as the political stability of any of those geographic areas; (vii) future determinations by the Company to allocate resources to products and in directions not presently contemplated; (viii) the Company's ability to successfully commercialize its products, in the U.S. and abroad; (ix) the Company's ability to provide an adequate and timely supply of its products to its customers; and (x) the Company's ability to achieve its growth targets. Additional factors and risks are described in the Company's periodic reports filed with the Securities and Exchange Commission, and they are available on the SEC's website at* ***www.sec.gov****. Forward-looking statements are made based on information available to the Company on the date of this press release, and the Company assumes no obligation to update the information contained in this press release.*

**For Investor Inquiries:**

Anika Therapeutics, Inc.

Mark Namaroff, 781-457-9287

Vice President, Investor Relations, ESG and Corporate Communications

investorrelations@anika.com

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** |
| **Consolidated Statements of Operations** | **Consolidated Statements of Operations** | **Consolidated Statements of Operations** | **Consolidated Statements of Operations** | **Consolidated Statements of Operations** |
| **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;Revenue | $39622 | $35821 | $156236 | $147794 |
| &nbsp;&nbsp;Cost of Revenue | 15491 | 17687 | 62660 | 64851 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross Profit | 24131 | 18134 | 93576 | 82943 |
| &nbsp;&nbsp;Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 7749 | 6000 | 28182 | 27327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 23049 | 20432 | 84794 | 74096 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration | - | 825 | - | (21095) |
| &nbsp;&nbsp;Total operating expenses | 30798 | 27257 | 112976 | 80328 |
| &nbsp;&nbsp;(Loss) income from operations | (6667) | (9123) | (19400) | 2615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and other income (expense), net | 276 | (47) | 654 | (188) |
| &nbsp;&nbsp;(Loss) income before income taxes | (6391) | (9170) | (18746) | 2427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Benefit from) provision for income taxes | (1483) | (3377) | (3887) | (1707) |
| &nbsp;&nbsp;Net (loss) income | $(4908) | $(5793) | $(14859) | $4134 |
| &nbsp;&nbsp;Net (loss) income per share: |  |  |  |  |
| &nbsp;&nbsp;Basic | $(0.34) | $(0.40) | $(1.02) | $0.29 |
| &nbsp;&nbsp;Diluted | $(0.34) | $(0.40) | $(1.02) | $0.28 |
| &nbsp;&nbsp;Weighted average common shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;Basic | 14640 | 14438 | 14561 | 14401 |
| &nbsp;&nbsp;Diluted | 14640 | 14438 | 14561 | 14634 |

---

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| | | |
|:---|:---|:---|
| **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** |
| **Consolidated Balance Sheets** | **Consolidated Balance Sheets** | **Consolidated Balance Sheets** |
| **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** |
|  | **December 31,** | **December 31,** |
| **ASSETS** | **2022** | **2021** |
| &nbsp;&nbsp;Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash, cash equivalents and investments | $86327 | $94386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 34627 | 29843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | 39765 | 36010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 8828 | 8289 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 169547 | 168528 |
| &nbsp;&nbsp;Property and equipment, net | 48279 | 47602 |
| &nbsp;&nbsp;Right-of-use assets | 30696 | 20957 |
| &nbsp;&nbsp;Other long-term assets | 17219 | 20285 |
| &nbsp;&nbsp;Deferred tax assets | 1449 | - |
| &nbsp;&nbsp;Intangible assets, net | 74599 | 82382 |
| &nbsp;&nbsp;Goodwill | 7339 | 7781 |
| &nbsp;&nbsp;Total assets | $349128 | $347535 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $9074 | $7633 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 18840 | 17847 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contingent consideration | - | 4315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 27914 | 29795 |
| &nbsp;&nbsp;Other long-term liabilities | 398 | 1258 |
| &nbsp;&nbsp;Deferred tax liability | 6436 | 10157 |
| &nbsp;&nbsp;Lease liabilities | 28817 | 19240 |
| &nbsp;&nbsp;Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.01 par value | 146 | 144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in-capital | 81141 | 67081 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (6443) | (5718) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 210719 | 225578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 285563 | 287085 |
| &nbsp;&nbsp;Total liabilities and stockholders' equity | $349128 | $347535 |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** |
| **Reconciliation of GAAP Gross Profit to Adjusted Gross Profit** | **Reconciliation of GAAP Gross Profit to Adjusted Gross Profit** | **Reconciliation of GAAP Gross Profit to Adjusted Gross Profit** | **Reconciliation of GAAP Gross Profit to Adjusted Gross Profit** | **Reconciliation of GAAP Gross Profit to Adjusted Gross Profit** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;Gross Profit | $24131 | $18134 | $93576 | $82943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product rationalization related charges | 563 | 382 | 3199 | 2445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related intangible asset amortization | 1560 | 1562 | 6240 | 6248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related inventory step up | - | 221 | - | 6465 |
| &nbsp;&nbsp;Adjusted Gross Profit | $26254 | $20299 | $103015 | $98101 |
| &nbsp;&nbsp;Unadjusted Gross Margin | 61% | 51% | 60% | 56% |
| &nbsp;&nbsp;Adjusted Gross Margin | 66% | 57% | 66% | 66% |
| **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** |
| **Reconciliation of GAAP Net Income to Adjusted EBITDA** | **Reconciliation of GAAP Net Income to Adjusted EBITDA** | **Reconciliation of GAAP Net Income to Adjusted EBITDA** | **Reconciliation of GAAP Net Income to Adjusted EBITDA** | **Reconciliation of GAAP Net Income to Adjusted EBITDA** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;Net (loss) income | $(4908) | $(5793) | $(14859) | $4134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and other expense, net | (276) | 47 | (654) | 188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefit from income taxes | (1483) | (3377) | (3887) | (1707) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1880 | 1943 | 7340 | 7169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 3813 | 3166 | 14315 | 11085 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product rationalization | 563 | 382 | 3199 | 2445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IPR&D impairment | - | 600 | - | 600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related intangible asset amortization | 1786 | 1787 | 7147 | 7148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related inventory step up | - | 221 | - | 6465 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration | - | 825 | - | (21095) |
| &nbsp;&nbsp;Adjusted EBITDA | $1375 | $(199) | $12601 | $16432 |
| **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** |
| **Reconciliation of GAAP Net Income to Adjusted Net Income** | **Reconciliation of GAAP Net Income to Adjusted Net Income** | **Reconciliation of GAAP Net Income to Adjusted Net Income** | **Reconciliation of GAAP Net Income to Adjusted Net Income** | **Reconciliation of GAAP Net Income to Adjusted Net Income** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;Net (loss) income | $(4908) | $(5793) | $(14859) | $4134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product rationalization, tax effected | 456 | 311 | 2410 | 1830 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IPR&D impairment, tax effected | - | 448 | - | 448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related intangible asset amortization, tax effected | 1446 | 1488 | 5385 | 5386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related inventory step up, tax effected | - | 184 | - | 4810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration, tax effected | - | 173 | - | (16979) |
| &nbsp;&nbsp;Adjusted net (loss) income | $(3006) | $(3189) | $(7063) | $(371) |
| **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** |
| **Reconciliation of GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share** | **Reconciliation of GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share** | **Reconciliation of GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share** | **Reconciliation of GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share** | **Reconciliation of GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share** |
| **(per share data)** | **(per share data)** | **(per share data)** | **(per share data)** | **(per share data)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;Diluted (loss) earnings per share (EPS) | $(0.34) | $(0.40) | $(1.02) | $0.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product rationalization, tax effected | 0.03 | 0.02 | 0.17 | 0.13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IPR&D impairment, tax effected | - | 0.03 | - | 0.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related intangible asset amortization, tax effected | 0.10 | 0.10 | 0.36 | 0.37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related inventory step up, tax effected | - | 0.01 | - | 0.33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration, tax effected | - | 0.01 | - | (1.16) |
| &nbsp;&nbsp;Adjusted diluted (loss) earnings per share (EPS) | $(0.21) | $(0.23) | $(0.49) | $(0.02) |

---

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** | **Anika Therapeutics, Inc. and Subsidiaries** |
| **Revenue by Product Family** | **Revenue by Product Family** | **Revenue by Product Family** | **Revenue by Product Family** | **Revenue by Product Family** | **Revenue by Product Family** | **Revenue by Product Family** | **Revenue by Product Family** | **Revenue by Product Family** |
| **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** | **For the Twelve Months Ended December 31,** |
|  | **2022** | **2021** | **$ change** | **% change** | **2022** | **2021** | **$ change** | **% change** |
| &nbsp;&nbsp;OA Pain Management | $23748 | $19713 | $4035 | 20% | $97887 | $89503 | $8384 | 9% |
| &nbsp;&nbsp;Joint Preservation and Restoration | 14347 | 13292 | 1055 | 8% | 50401 | 48588 | 1813 | 4% |
| &nbsp;&nbsp;Non-Orthopedic | 1527 | 2816 | (1289) | -46% | 7948 | 9703 | (1755) | -18% |
| &nbsp;&nbsp;Revenue | $39622 | $35821 | $3801 | 11% | $156236 | $147794 | $8442 | 6% |

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Note: OA Pain Management revenue for the three months ended December 31, 2022 and 2021, includes veterinary product revenue of $1,297 and $1,512, respectively. OA Pain Management revenue for the twelve months ended December 31, 2022 and 2021, includes veterinary product revenue of $5,903 and $4,419, respectively.