Financial Analysis

10. Commitments and Contingencies In certain of its contracts, the Company warrants to its customers that the products it manufactures conform to the product specifications as in effect at the time of delivery of the specific product. The Company may also warrant that the products it manufactures do not infringe, violate, or breach any U.S. or international patent or intellectual property right, trade secret, or other proprietary information of any third party. On occasion, the Company contractually indemnifies its customers against any and all losses arising out of, or in any way connected with, any claim or claims of breach of its warranties or any actual or alleged defect in any product caused by the negligent acts or omissions of the Company. The Company maintains a products liability insurance policy that limits its exposure to these risks. Based on the Companys historical activity, in combination with its liability insurance coverage, the Company believes the estimated fair value of these indemnification agreements is immaterial. The Company had no accrued warranties as of June 30, 2026, or December 31, 2025, and has no history of claims paid. The Company is also involved from time to time in various legal proceedings arising in the normal course of business. Although the outcomes of these legal proceedings are inherently difficult to predict, the Company does not expect the resolution of these occasional legal proceedings to have a material adverse effect on its financ …

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12. Equity Incentive Plans Equity Incentive Plans The Anika Therapeutics, Inc. 2017 Omnibus Incentive Plan (the 2017 Plan) was approved by the Companys stockholders on June 13, 2017, and subsequently amended most recently on June 18, 2026. On June 18, 2026, the Companys stockholders approved a seventh amendment and restatement of the 2017 Plan increasing the number of shares by 350,000 shares from 5,760,000 shares to 6,110,000 shares. The 2017 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights (SARs), restricted stock awards, performance restricted stock units (PSUs), restricted stock units (RSUs), total shareholder return options (TSRs) and performance options that may be settled in cash, stock, or other property. In accordance with the 2017 Plan approved by the Companys stockholders, including the amendments thereto, each share award other than stock options or SARs will reduce the number of total shares available for grant by two shares. Subject to adjustment for specified types of changes in the Companys capitalization, no more than 6.1 million shares of common stock may be issued under the 2017 Plan. There were 0.6 million shares available for future grant at June 30, 2026, under the 2017 Plan. The Anika Therapeutics, Inc. 2021 Inducement Plan (the Inducement Plan) was adopted by the Companys board of directors on November 4, 2021, and subsequently amended on December 22, 2023 and May 2, 2024. On May 2, 2024, the …

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5. Fair Value Measurements The Company has certain cash equivalents in money market funds that are classified within Level 1 of the fair value hierarchy and are valued based on quoted prices in active markets. For cash, accounts receivables, accounts payable, and accrued interest, the carrying amounts approximate fair value, because of the short maturity of these instruments, and therefore fair value information is not included in the table below. There were no transfers between fair value levels during the six-month period ended June 30, 2026, and the year ended December 31, 2025, respectively. The classification of the Companys cash equivalents within the fair value hierarchy was as follows: June 30, Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Amortized 2026 (Level 1) (Level 2) (Level 3) Cost Cash equivalents: Money Market Funds $ 30,886 $ 30,886 - - $ 30,886 December 31, Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Amortized 2025 (Level 1) (Level 2) (Level 3) Cost Cash equivalents: Money Market Funds $ 48,758 $ 48,758 - - $ 48,758 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

8. Goodwill and Intangible Assets The Company assesses goodwill for impairment annually, or, under certain circumstances, more frequently, such as when events or changes in circumstances indicate there may be impairment. Changes in the carrying value of goodwill for the six-month period ended June 30, 2026, were as follows: Six Months Ended June 30, 2026 Balance, beginning of period $ 8,054 Effect of foreign currency adjustments (229 ) Balance, ending of period $ 7,825 The Company has intangible assets of $1.7 million at each of June 30, 2026, and December 31, 2025, which is comprised of indefinite-lived in-process research and development assets.

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14. Income Taxes The income tax expense was $0.1 million and $0.3 million for the three- and six-month periods ended June 30, 2026, resulting in effective tax rates of 2.1% and (21.2)%, respectively. The income tax expense was $0.7 million and $0.8 million for the three- and six-month periods ended June 30, 2025, resulting in an effective tax rate of (17.2)% and (9.8)%, respectively. The Companys effective tax rate for the three-month and six-month periods ended June 30, 2026, was primarily driven by the full valuation on the Company's deferred tax assets in the US and the projected taxable income for the Company resulting in current tax expense in 2026. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, carryback potential if permitted under the tax law, and results of recent operations. The Company has incurred operating losses in recent years. As a result, the Company anticipates that deferred tax assets originating during the year ended December 31, 2026, will exceed the availability of reversing taxable temporary differences. Due to significant negative evidence, including the Companys prior year operating losses, the Company concluded its anticipated net deferred ta …

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13. Restructuring During the three-month period ended March 31, 2026, the Company initiated actions to reduce general and administrative expenses to reflect a more focused cost structure following the recent strategic divestitures. This included a workforce reduction resulting in the recognition of severance and employee-related costs, which primarily consist of cash severance payments, employer-paid benefits during the severance period, and payroll-related taxes. These costs were recognized in accordance with ASC 420, Exit or Disposal Cost Obligations. The Company incurred approximately $2.3 million in connection with the workforce reduction plan and the restructuring actions were substantially completed during the six-month period ended June 30, 2026. The following table is a summary of the changes in the severance liability, included with accrued expenses on the consolidated balance sheets related to the workforce reduction: Six-Months Ended June 30 2026 Balance, beginning of period $ - Severance and other personnel costs 2,119 Cash payments during the period (530 ) Balance, ending of period $ 1,589 In addition, the Company announced a leadership transition in January 2026 in which our former Chief Executive Officer became Executive Chair of the Companys Board of Directors. The Company and Dr. Cheryl Blanchard, our former Chief Executive Officer, entered into a Transitional Services and Separation Agreement (the Transition Agreement). Pursuant to the Transition Agreement, …

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11. Revenue and Geographic Information Revenue by product classification is as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Original Equipment Manufacturer (OEM) Channel $ 18,705 $ 16,340 $ 35,740 $ 31,249 Commercial Channel 13,905 11,879 26,482 23,138 $ 32,610 $ 28,219 $ 62,222 $ 54,387 Revenue from the Companys sole significant customer, Johnson & Johnson MedTech (J&J MedTech), part of the Johnson & Johnson Medical Companies, as a percentage of the Companys total revenue was 53% and 50% for the three-months ended June 30, 2026, and 2025, respectively, and 50% for the six-months ended June 30, 2026, and 2025. Total revenue by geographic location based on the location of the customer in total and as a percentage of total revenue were as follows: Three Months Ended June 30, 2026 2025 Percentage of Percentage of Revenue Revenue Revenue Revenue Geographic Location: United States $ 19,804 61 % $ 17,924 63 % Europe 6,836 21 % 4,752 17 % Other 5,970 18 % 5,543 20 % Total $ 32,610 100 % $ 28,219 100 % Six Months Ended June 30, 2026 2025 Percentage of Percentage of Revenue Revenue Revenue Revenue Geographic Location: United States $ 38,336 61 % $ 34,287 63 % Europe 13,502 22 % 10,550 19 % Other 10,384 17 % 9,550 18 % Total $ 62,222 100 % $ 54,387 100 % …

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17. Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker (CODM) in deciding how to allocate resources and assess performance. The Company operates in a one business segment. The Companys CODM is its President and Chief Executive Officer, who reviews financial information presented on a consolidated basis. The CODMs financial review is focused on the consolidated financial results of the Company which is used as the basis for financial performance assessment and allocation of resources. The following table presents financial information with respect to the Companys single operating segment for the three and six months ended June 30, 2026, and 2025 (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Revenue $ 32,610 $ 28,219 $ 62,222 $ 54,387 Cost of product revenue 11,366 13,856 21,981 25,343 Gross profit 21,244 14,363 40,241 29,044 Operating expenses: Research & development 7,341 6,313 14,054 12,372 Selling, general & administrative 10,949 12,230 28,721 25,136 Total operating expenses 18,290 18,543 42,775 37,508 Income (loss) from operations 2,954 (4,180 ) (2,534 ) (8,464 ) Interest and other income, net 426 214 1,093 629 Income (loss) before income taxes 3,380 (3,966 ) (1,441 ) (7,835 ) Provision for income taxes 71 681 306 770 Income (loss) from continuing operatio …

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16. Share Repurchase In May 2024, the Company agreed to implement a share repurchase program for an aggregate purchase price of $40.0 million to occur as follows: (i) first $15.0 million was effected through a Rule 10b5-1 Plan initiated prior to June 1, 2024, and to be effective through June 30, 2025, and (ii) the remaining amount to be purchased in the open market through June 2026. In the event of positive free cash flow as defined in the Cooperation Agreement dated May 28, 2024, with Caligan Partners LP, Caligan Partners Master Fund LP and David Johnson, for the period from July 1, 2024 through June 30, 2025, the amount under the share repurchase program shall be increased by 50% of such positive amount. In no event would the company be required to make any purchases in the event that the Companys cash would be less than $45.0 million after taking into account the share repurchase and reasonably anticipated capital expenditures and restructuring costs. On May 28, 2024, the Company entered into a share repurchase agreement for $15.0 million under a Rule 10b5-1 Plan with Bank of America. On November 6, 2025, the Company entered into a share repurchase agreement under a Rule 10b5-1 Plan with Clear Street LLC for another $15.0 million related to the 2024 Share Repurchase Program. As of June 30, 2026, the Company had repurchased 2,139,944 shares at a cost of $30.0 million and is no longer actively repurchasing stock. …

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18. Subsequent Event On July 10, 2026, the Company entered into a Fifth Amendment to Credit Agreement (the Fifth Amendment), amending its existing revolving line of credit agreement dated October 24, 2017, with Bank of America, N.A., with a term date of November 21, 2026. The revolving line of credit of agreement, as amended to date (including by such Fifth Amendment), is referred to as the Amended Agreement. Under the Amended Agreement, Bank of America, N.A., serves as administrative agent, issuer of letters of credit and lender for a $50.0 million senior revolving line of credit with maturity date of July 10, 2031. Subject to certain conditions, the Company may request up to an additional $50 million in commitments for a maximum aggregate commitment of $100.0 million, subject to the approval of lenders referred to in the Amended Agreement. Loans under the Amended Agreement generally bear interest at a rate equal to the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York ( SOFR ), plus an additional percentage ranging from 0.25% to 1.25%, based on the Companys consolidated leverage ratio at the time of borrowings. The Company has agreed to pay a commitment fee in the amount equal to 0.20% to 0.30% per annum, based on the Companys consolidated leverage ratio, of the actual daily unused amount of the credit facility under the Amended Agreement, which fee is due and payable quarterly in arrears. Loan origination costs will be amortized over …

SubsequentEventsTextBlock · excerpt; the full note is in the filing