10-Q 1 a06-9548_110q.htm QUARTERLY REPORT PURSUANT TO SECTIONS 13 OR 15(D)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-Q

 

x         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2006

 

o            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 000-21326

 

Anika Therapeutics, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

Massachusetts

 

04-3145961

(State or Other Jurisdiction of Incorporation or Organization)

 

(I.R.S. Employer Identification No.)

 

 

 

160 New Boston Street, Woburn, Massachusetts

 

01801

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (781) 932-6616

 

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report.

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 last 90 days. Yes x    No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definitions of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Securities Exchange Act. (Check One):

o  Large accelerated filer                  x  Accelerated filer                     o  Non-accelerated filer

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o  No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the last practicable date.               At April 21, 2006 there were 10,572,832 outstanding shares of Common Stock, par value $.01 per share.

 



PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS

 

Anika Therapeutics, Inc. and Subsidiary
Consolidated Balance Sheets
(unaudited)

 

 

 

March 31,

 

December 31,

 

 

 

2006

 

2005

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

44,459,721

 

$

44,746,656

 

Accounts receivable, net of reserves of $22,558 at March 31, 2006 and December 31, 2005

 

2,240,377

 

2,066,240

 

Inventories

 

3,500,983

 

3,270,678

 

Current portion deferred income taxes

 

1,301,085

 

1,301,085

 

Prepaid expenses

 

635,701

 

1,025,481

 

Total current assets

 

52,137,867

 

52,410,140

 

Property and equipment, at cost

 

12,315,696

 

11,949,439

 

Less: accumulated depreciation

 

(9,940,268

)

(9,853,177

)

 

 

2,375,428

 

2,096,262

 

Long-term deposits

 

143,060

 

143,060

 

Deferred income taxes

 

8,036,426

 

7,968,481

 

Total Assets

 

$

62,692,781

 

$

62,617,943

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

789,335

 

$

1,277,782

 

Accrued expenses

 

1,200,957

 

1,718,916

 

Deferred revenue

 

2,767,861

 

2,830,046

 

Total current liabilities

 

4,758,153

 

5,826,744

 

Long-term deferred revenue

 

18,225,000

 

18,900,000

 

Commitments and contingencies (note 7)

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Preferred stock, $.01 par value; 1,250,000 shares authorized, no shares issued and outstanding at March 31, 2006 and December 31, 2005

 

—

 

—

 

Common stock, $.01 par value; 30,000,000 shares authorized, 10,572,395 shares issued and outstanding at March 31, 2006, 10,500,393 shares issued and outstanding at December 31, 2005

 

105,724

 

105,004

 

Additional paid-in-capital

 

35,209,841

 

34,272,881

 

Retained earnings

 

4,394,063

 

3,513,314

 

Total stockholders’ equity

 

39,709,628

 

37,891,199

 

Total Liabilities and Stockholders’ Equity

 

$

62,692,781

 

$

62,617,943

 

 

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

2



Anika Therapeutics, Inc. and Subsidiary
Consolidated Statements of Operations
(unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2006

 

2005

 

Product revenue

 

$

6,265,833

 

$

5,676,937

 

Licensing, milestone and contract revenue

 

687,127

 

1,614,350

 

Total revenue

 

6,952,960

 

7,291,287

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Cost of product revenue

 

3,047,818

 

2,993,964

 

Research & development

 

1,076,792

 

1,199,209

 

Selling, general & administrative

 

1,788,999

 

1,292,075

 

Total operating expenses

 

5,913,609

 

5,485,248

 

Income from operations

 

1,039,351

 

1,806,039

 

Interest income

 

461,074

 

212,209

 

Income before income taxes

 

1,500,425

 

2,018,248

 

Provision for income taxes

 

619,676

 

816,008

 

Net income

 

$

880,749

 

$

1,202,240

 

Basic net income per share:

 

 

 

 

 

Net income

 

$

0.08

 

$

0.12

 

Basic weighted average common shares outstanding

 

10,526,672

 

10,269,389

 

Diluted net income per share:

 

 

 

 

 

Net income

 

$

0.08

 

$

0.11

 

Diluted weighted average common shares outstanding

 

11,218,360

 

11,264,595

 

 

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

3



Anika Therapeutics, Inc. and Subsidiary
Consolidated Statements of Cash Flows
For the Three Months Ended
(Unaudited)

 

 

March 31,

 

March 31,

 

 

 

2006

 

2005

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

880,749

 

$

1,202,240

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

Depreciation

 

87,091

 

109,154

 

Stock-based compensation expense

 

382,537

 

—

 

Tax benefits from exercise of stock options

 

—

 

138,869

 

Change in prepaid taxes related to exercises of stock option

 

(156,821

)

—

 

Deferred income taxes

 

(67,945

)

—

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(174,137

)

(203,993

)

Inventories

 

(230,305

)

462,434

 

Prepaid expenses

 

546,601

 

760,346

 

Accounts payable

 

(488,447

)

(4,930

)

Accrued expenses

 

(517,959

)

(454,902

)

Deferred revenue

 

(737,185

)

(1,080,386