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, 2018

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 statements.

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, 2018.

The results of operations for the

three

- and

six

-month periods ended

June 30, 2019

are

not

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

December

31,

2019.

Recent Accounting Pronouncements

February 2016,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2016

02,

Leases

, which, among other things, results in the recognition of lease assets and lease liabilities on the Company’s balance sheets for virtually all leases. ASU

2016

supersedes most previous lease accounting guidance and is effective for interim and annual periods beginning after

December 15, 2018.

The Company adopted the new guidance as of

January 1, 2019

using the modified retrospective adoption method, which did

not

require restatement of prior periods. The adoption of this standard did

not

have a material impact on the condensed consolidated statement of operations. See Note

for further details.

August 2018,

the FASB issued ASU

No.

2018

15,

Intangibles – Goodwill and Other – Internal-Use Software (Subtopic

350

)

, which amends ASU

No.

2015

05,

Customers Accounting for Fees in a Cloud Computing Agreement

, to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. The most significant change will align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. Accordingly, the amendments in ASU

2018

require an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic

350

to determine which implementation costs to capitalize as assets related to the service contract and which costs to expense. ASU

2018

is effective for fiscal years and interim periods beginning after

December 15, 2019.

Early adoption is permitted, including adoption in any interim period. The Company is assessing ASU

2018

and the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures.