10-Q 1 a07-10909_110q.htm 10-Q

 

 

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, 2007

 

 

 

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

 

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

Incorporation or Organization)

 

 

 

 

 

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 May 8, 2007 there were 10,984,928 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,

 

 

 

2007

 

2006

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

43,780,878

 

$

47,167,432

 

Short-term investment

 

3,522,770

 

—

 

Accounts receivable, net of reserves of $49,724 at March 31, 2007 and December 31, 2006

 

3,007,419

 

3,509,508

 

Inventories

 

5,983,632

 

5,395,596

 

Current portion deferred income taxes

 

1,312,901

 

1,312,901

 

Prepaid expenses and other receivables

 

469,051

 

220,445

 

Total current assets

 

58,076,651

 

57,605,882

 

Property and equipment, at cost

 

13,914,258

 

13,255,240

 

Less: accumulated depreciation

 

(10,398,890

)

(10,237,232

)

 

 

3,515,368

 

3,018,008

 

Long-term deposits and other

 

399,300

 

193,050

 

Deferred income taxes

 

7,437,020

 

7,296,689

 

Total Assets

 

$

69,428,339

 

$

68,113,629

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

1,091,375

 

$

965,180

 

Accrued expenses

 

1,115,208

 

1,573,835

 

Deferred revenue

 

2,899,969

 

2,905,099

 

Income taxes payable

 

145,946

 

17,253

 

Total current liabilities

 

5,252,498

 

5,461,367

 

Other long-term liabilities

 

223,939

 

64,525

 

Long-term deferred revenue

 

16,399,712

 

17,099,712

 

Commitments and contingencies (Note 8)

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Preferred stock, $.01 par value; 1,250,000 shares authorized, no shares issued and outstanding at March 31, 2007 and December 31, 2006

 

—

 

—

 

Common stock, $.01 par value; 30,000,000 shares authorized, 10,948,928 shares issued and outstanding at March 31, 2007, 10,772,654 shares issued and outstanding at December 31, 2006

 

109,489

 

107,727

 

Additional paid-in-capital

 

38,124,394

 

37,262,768

 

Retained earnings

 

9,318,307

 

8,117,530

 

Total stockholders’ equity

 

47,552,190

 

45,488,025

 

Total Liabilities and Stockholders’ Equity

 

$

69,428,339

 

$

68,113,629

 

 

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,

 

 

 

2007

 

2006

 

Product revenue

 

$

5,374,038

 

$

6,265,833

 

Licensing, milestone and contract revenue

 

764,008

 

687,127

 

Total revenue

 

6,138,046

 

6,952,960

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Cost of product revenue

 

2,492,922

 

3,047,818

 

Research & development

 

847,341

 

1,076,792

 

Selling, general & administrative

 

1,575,050

 

1,788,999

 

Total operating expenses

 

4,915,313

 

5,913,609

 

Income from operations

 

1,222,733

 

1,039,351

 

Interest income, net

 

566,777

 

461,074

 

Income before income taxes

 

1,789,510

 

1,500,425

 

Provision for income taxes

 

588,733

 

619,676

 

Net income

 

$

1,200,777

 

$

880,749

 

Basic net income per share:

 

 

 

 

 

Net income

 

$

0.11

 

$

0.08

 

Basic weighted average common shares outstanding

 

10,878,448

 

10,526,672

 

Diluted net income per share:

 

 

 

 

 

Net income

 

$

0.11

 

$

0.08

 

Diluted weighted average common shares outstanding

 

11,281,322

 

11,218,360

 

 

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,
2007

 

March 31,
2006

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

1,200,777

 

$

880,749

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

Depreciation

 

161,658

 

87,091

 

Stock-based compensation expense

 

277,321

 

382,537

 

Tax benefit related to exercise of stock option

 

(32,459

)

(156,821

)

Deferred income taxes

 

(140,331

)

(67,945

)

Provision for inventory reserve

 

63,362

 

—

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

502,089