2.	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, 2019

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, 2019.

The results of operations for the

three

-month period ended

March 31, 2020

are

not

indicative of the results to be expected for the year ending

December

31,

2020.

Segment Information

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its interim President and Chief Executive Officer as of

March 31, 2020.

Based on the criteria established by Accounting Standards Codification (“ASC”)

280,

Segment Reportin

g, the Company has

one

operating and reportable segment.

Recent Accounting Adoptions

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.

The Company adopted ASU

2018

using the prospective method

as of

January 1, 2020.

The adoption of this standard did

not

have a significant impact on the Company’s consolidated financial statements and related disclosures.

June 2016,

the FASB issued ASU

No.

2016

13,

Financial Instruments - Credit Losses

. The standard, including subsequently issued amendments, requires a financial asset measured at amortized cost basis, such as accounts receivable and certain other financial assets, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU

2016

is effective for fiscal years and interim periods beginning after

December 15, 2019

and requires the modified retrospective approach. The Company adopted ASU

2016

as of

January 1, 2020.

The adoption primarily impacted our trade receivables. The Company assesses each customer's ability to pay by conducting a credit review which includes an assessment of the customer's creditworthiness. The Company monitors the credit exposure through active review of customer balances. The Company's expected loss methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' account balances. Concentrations of credit risks are limited due to the large number of customers and their dispersion across a number of geographic areas. The historical credit losses have

not

been significant due to this dispersion and the financial stability of our customers. The Company considers credit losses immaterial to our business and, therefore, have

not

provided all the disclosures otherwise required by the standard.