Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and related notes have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and in accordance with accounting principles generally accepted in the United States (“US GAAP”). The financial statements include the accounts of Anika Therapeutics, Inc. and its subsidiaries. Inter-company transactions and balances have been eliminated. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to SEC rules and regulations relating to interim financial statements. The

December 31, 2017

balances reported herein are derived from the audited consolidated financial statements. In the opinion of management, these unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to fairly state the condensed consolidated financial position of the Company as of

June 30, 2018,

the results of its operations for the

three

- and

six

-month periods ended

June 30, 2018

and

2017,

and cash flows for the

six

-month periods ended

June 30, 2018

and

2017.

The accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with the Company’s annual financial statements filed with its Annual Report on Form

-K for the year ended

December 31, 2017.

The results of operations for the

three

- and

six

-month periods ended

June 30, 2018

are

not

necessarily indicative of the results to be expected for the year ending

December

31,

2018.

At the Company’s annual stockholders’ meeting on

May 31, 2018,

the Company’s stockholders approved an increase in the number of shares of common stock that we are authorized to issue from

million to

million and ratified a change in the Company’s state of incorporation from the Commonwealth of Massachusetts to the State of Delaware, pursuant to a plan of domestication. The Company became a Delaware corporation with the authorization to issue up to

million shares of its common stock on

June 6, 2018.

Upon its domestication in Delaware, the affairs of the Company became subject to the Delaware General Corporation Law, the Company implemented a new certificate of incorporation and new bylaws, and each previously outstanding share of the Company’s common stock as a Massachusetts corporation (Anika Massachusetts) converted into an outstanding share of common stock of the Company as a Delaware corporation (Anika Delaware). The domestication was a tax-free reorganization under the U.S. Internal Revenue Code, and it did

not

affect the Company’s business operations.

Recent Accounting Pronouncements

February 2016,

the FASB issued ASU

No.

2016

02,

Leases

(Topic

842

), which amends existing leasing accounting requirements. The most significant change will result in the recognition of lease assets and lease liabilities by lessees for virtually all leases. The new guidance will also require significant additional disclosures about the amount, timing, and uncertainty of cash flows from leases. ASU

2016

is effective for fiscal years and interim periods beginning after

December 15, 2018.

Upon adoption, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted, and a number of optional practical expedients

may

be elected to simplify the impact of adoption. The Company has commenced work to assess ASU

2016

and the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. The Company anticipates recognition of additional assets and corresponding liabilities related to leases on the consolidated balance sheet.