Lipocine (LPCN) 10-K 13 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Mar. 30, 2020	Jun. 30, 2019
Document and Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	LIPOCINE INC.
Entity Current Reporting Status	Yes
Entity Central Index Key	0001535955
Current Fiscal Year End Date	--12-31
Entity Interactive Data Current	Yes
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 43.4
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		47,854,499
Entity Emerging Growth Company	false
Entity Small Business	true

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 9,728,523	$ 8,077,539
Restricted cash	5,000,000	5,000,000
Marketable investment securities	4,340,041	7,173,037
Accrued interest income	16,522	38,514
Prepaid and other current assets	545,887	520,113
Total current assets	19,630,973	20,809,203
Property and equipment, net of accumulated depreciation of $1,140,143 and $1,124,700, respectively	3,554	18,997
Other assets	23,753	23,753
Total assets	19,658,280	20,851,953
Current liabilities:
Accounts payable	1,182,241	671,280
Accrued expenses	449,303	487,135
Debt - current portion	3,333,333	3,333,333
Total current liabilities	4,964,877	4,491,748
Debt - non-current portion	3,814,407	6,926,532
Warrant liability	4,591,200
Total liabilities	13,370,484	11,418,280
Commitments and contingencies (notes 5, 8 and 11)
Stockholders' equity:
Preferred stock, par value $0.0001 per share, 10,000,000 shares authorized; zero issued and outstanding	0	0
Common stock, par value $0.0001 per share, 100,000,000 shares authorized; 37,655,175 and 21,737,196 issued and 37,649,465 and 21,731,486 outstanding	3,766	2,174
Additional paid-in capital	157,391,969	147,533,019
Treasury stock at cost, 5,710 shares	(40,712)	(40,712)
Accumulated other comprehensive loss	(38)	(963)
Accumulated deficit	(151,067,189)	(138,059,845)
Total stockholders' equity	6,287,796	9,433,673
Total liabilities and stockholders' equity	$ 19,658,280	$ 20,851,953

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment (in dollars)	$ 1,140,143	$ 1,124,700
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	37,655,175	21,737,196
Common stock, shares outstanding	37,649,465	21,731,486
Treasury Stock, Shares	5,710	5,710

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenues:
License revenue	$ 164,990	$ 428,031
Total revenues	164,990	428,031
Operating expenses:
Research and development	7,468,210	6,464,708
General and administrative	5,597,070	5,289,142
Total operating expenses	13,065,280	11,753,850
Operating loss	(12,900,290)	(11,325,819)
Other expense, net	(343,254)	(333,503)
Unrealized gain on warrant liability	236,400	0
Loss before income tax expense	(13,007,144)	(11,659,322)
Income tax expense	(200)	(700)
Net loss	$ (13,007,344)	$ (11,660,022)
Basic loss per share attributable to common stock	$ (0.50)	$ (0.55)
Weighted average common shares outstanding, basic	25,882,273	21,352,339
Diluted loss per share attributable to common stock	$ (0.50)	$ (0.55)
Weighted average common shares outstanding, diluted	25,882,273	21,352,339
Comprehensive loss:
Net loss	$ (13,007,344)	$ (11,660,022)
Unrealized net gain on available-for-sale securities	925	3,653
Comprehensive loss	$ (13,006,419)	$ (11,656,369)

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Common Stock [Member]ATM	Common Stock [Member]Equity offering	Common Stock [Member]	Treasury Stock [Member]ATM	Treasury Stock [Member]Equity offering	Treasury Stock [Member]	Additional Paid-in Capital [Member]ATM	Additional Paid-in Capital [Member]Equity offering	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Gain(Loss) [Member]ATM	Accumulated Other Comprehensive Gain(Loss) [Member]Equity offering	Accumulated Other Comprehensive Gain(Loss) [Member]	Accumulated Deficit [Member]ATM	Accumulated Deficit [Member]Equity offering	Accumulated Deficit [Member]	ATM	Equity offering	Total
Balances at Dec. 31, 2017			$ 2,127			$ (40,712)			$ 145,423,012			$ (4,616)			$ (126,399,823)			$ 18,979,988
Balances (in shares) at Dec. 31, 2017			21,264,539			5,710
Net loss			$ 0			$ 0			0			0			(11,660,022)			(11,660,022)
Unrealized net gain on marketable investment securities			0			0			0			3,653			0			3,653
Stock-based compensation			0			0			1,457,720			0			0			$ 1,457,720
Option exercises (in shares)																		0
Common stock sold through offering	$ 47			$ 0			$ 652,287			$ 0			$ 0			$ 652,334
Common stock sold through offering (in shares)	466,947			0														466,947
Balances at Dec. 31, 2018			$ 2,174			$ (40,712)			147,533,019			(963)			(138,059,845)			$ 9,433,673
Balances (in shares) at Dec. 31, 2018			21,731,486			5,710
Net loss			$ 0			$ 0			0			0			(13,007,344)			(13,007,344)
Unrealized net gain on marketable investment securities			0			0			0			925			0			925
Pre-funded warrant exercises			$ 155			$ 0			0			0			0			155
Pre-funded warrant exercises (in shares)			1,550,000			0
Stock-based compensation			$ 0			$ 0			1,035,834			0			0			1,035,834
Option exercises			$ 2			0			56,198			0			0			$ 56,200
Option exercises (in shares)			20,000															20,000
Vesting of restricted stock units			$ 25			0			(25)			0			0			$ 0
Vesting of restricted stock units (in shares)			247,500
Common stock sold through offering	$ 365	$ 1,045		$ 0	$ 0		$ 8,000,046	$ 766,897		$ 0	$ 0		$ 0	$ 0		$ 8,000,411	$ 767,942
Common stock sold through offering (in shares)	3,650,479	10,450,000		0	0											6,635,535
Balances at Dec. 31, 2019			$ 3,766			$ (40,712)			$ 157,391,969			$ (38)			$ (151,067,189)			$ 6,287,796
Balances (in shares) at Dec. 31, 2019			37,649,465			5,710

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net loss	$ (13,007,344)	$ (11,660,022)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation expense	15,443	18,595
Stock-based compensation expense	1,035,834	1,457,720
Loss on disposition of property and equipment	0	37,478
Non-cash interest expense	221,209	259,865
Non-cash gain on change in fair value of warrant liability	(236,400)	0
Amortization of premium/discount on marketable investment securities	(164,306)	(198,344)
Changes in operating assets and liabilities:
Accrued interest income	21,992	(15,447)
Litigation insurance recovery	0	3,319,927
Prepaid and other current assets	(25,774)	(111,886)
Accounts payable	510,961	73,210
Litigation settlement payable	0	(4,250,000)
Accrued expenses	(37,832)	(1,009,921)
Cash used in operating activities	(11,666,217)	(12,078,825)
Cash flows from investing activities:
Refund of rental deposit	0	7,000
Purchases of marketable investment securities	(16,851,568)	(25,552,679)
Maturities of marketable investment securities	19,849,795	36,838,960
Cash provided by investing activities	2,998,227	11,293,281
Cash flows from financing activities:
Proceeds from debt	0	10,000,000
Debt repayments	(3,333,334)	0
Proceeds from stock option exercises	56,200	0
Proceeds from sale of Class A and Class B units	5,595,542	0
Proceeds from exercise of pre-funded warrants	155	0
Net proceeds from sale of common stock through ATM	8,000,411	652,334
Cash provided by financing activities	10,318,974	10,652,334
Net increase in cash and cash equivalents	1,650,984	9,866,790
Cash, cash equivalents and restricted cash at beginning of period	13,077,539	3,210,749
Cash, cash equivalents and restricted cash at end of period	14,728,523	13,077,539
Supplemental disclosure of cash flow information:
Interest paid	545,536	533,542
Income taxes paid	700	700
Supplemental disclosure of non-cash investing and financing activities:
Unrealized net gain on marketable investment securities	925	3,653
Accrued final payment charge on debt	221,209	259,865
Allocation of equity offering proceeds to warrant liability	$ 4,827,600	$ 0

Description of Business

Description of Business	12 Months Ended
	Dec. 31, 2019
Contractual Agreements
Description of Business	(1) Description of Business Lipocine Inc. (“Lipocine” or the “Company"), a clinical-stage biopharmaceutical company focused on metabolic and endocrine disorders, is engaged in research and development for the delivery of drugs using its proprietary delivery technology. The Company’s principal operation is to provide oral delivery solutions for existing drugs. Lipocine develops its own drug candidates or it develops drug candidates on behalf of or in collaboration with corporate partners. The Company has funded operating costs primarily through collaborative license, milestone and research arrangements, through federal grants, through the sale of equity securities and through debt. The Company is incorporated under the laws of the State of Delaware.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies (a) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include those related to stock-based compensation; income tax uncertainties; and the useful lives of property and equipment. (b) Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities to the Company of three months or less to be cash equivalents. Although the Company may deposit its cash and cash equivalents with multiple financial institutions, its deposits, at times, may exceed federally insured limits. Cash and cash equivalents were $9.7 million and $8.1 million at December 31, 2019 and 2018. (c) Receivables Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and their customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. The Company had no write-offs in 2019 and 2018 and the Company did not record an allowance for doubtful accounts as of December 31, 2019 and 2018 as there were no accounts receivable outstanding. The Company does not have any off-balance-sheet credit exposure related to its customers. (d) Revenue Recognition The Company generates revenue from license and royalty arrangements. At inception of each contract, the Company identifies the goods and services that have been promised to the customer and each of those that represent a distinct performance obligation, determines the transaction price including any variable consideration, allocates the transaction price to the distinct performance obligations and determines whether control transfers to the customer at a point in time or over time. Variable consideration is included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company reassess its reserves for variable consideration at each reporting date and makes adjustments, if necessary, which may affect revenue and earnings in periods in which any such changes become known. (e) Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Maintenance and repairs that do not extend the life or improve the asset are expensed in the year incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are five years for laboratory and office equipment, three years for computer equipment and software, and seven years for furniture and fixtures. (f) Accounting for Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by a comparison of the carrying amount of an asset to future net cash flows (undiscounted) expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets held for sale are reported at the lower of the carrying amount, or fair value, less costs to sell. (g) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the net deferred tax assets will not be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as a component of its income tax expense. The Company recognizes stock-based compensation expense for grants of stock option awards, restricted stock units and restricted stock under the Company’s Incentive Plan to employees, nonemployees and nonemployee members of the Company’s board of directors based on the grant-date fair value of those awards. The grant-date fair value of an award is generally recognized as compensation expense over the award’s requisite service period. In addition, the Company has granted performance-based stock option awards and restricted stock units, which vest based upon the Company satisfying certain performance conditions. Potential compensation cost, measured on the grant date, related to these performance options will be recognized only if, and when, the Company estimates that these options or units will vest, which is based on whether the Company considers the performance conditions to be probable of attainment. The Company’s estimates of the number of performance-based options or units that will vest will be revised, if necessary, in subsequent periods. (h) Share-Based Payments The Company uses the Black-Scholes model to compute the estimated fair value of stock option awards. Using this model, fair value is calculated based on assumptions with respect to (i) expected volatility of the Company’s Common Stock price, (ii) the periods of time over which employees , nonemployees and members of the board of directors are expected to hold their options prior to exercise (expected term), (iii) expected dividend yield on the Common Stock, and (iv) risk-free interest rates. Stock-based compensation expense also includes an estimate, which is made at the time of grant, of the number of awards that are expected to be forfeited. This estimate is revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation cost that has been expensed in the statements of operations amounted to $1.0 million and $1.5 million for the years ended December 31, 2019 and 2018, allocated as follows: Year Ended 2019 2018 Research and development $ 419,801 $ 587,437 General and administrative 616,033 870,283 $ 1,035,834 $ 1,457,720 The Company issued 79,000 stock options and 423,000 stock options, respectively, during the years ended December 31, 2019 and 2018, respectively. Additionally, the Company issued 280,120 and 540,000 restricted stock units, respectively, during the years ended December 31, 2019 and 2018, respectively. Key assumptions used in the determination of the fair value of stock options granted are as follows: Expected Term : The expected term represents the period that the stock-based awards are expected to be outstanding. Due to limited historical experience of similar awards, the expected term was estimated using the simplified method in accordance with the provisions of Staff Accounting Bulletin (“SAB”) No. 107, Share-Based Payment, for awards with stated or implied service periods. The simplified method defines the expected term as the average of the contractual term and the vesting period of the stock option. For awards with performance conditions, and that have the contractual term to satisfy the performance condition, the contractual term was used. Risk-Free Interest Rate : The risk-free interest rate used was based on the implied yield currently available on U.S. Treasury issues with an equivalent remaining term. Expected Dividend : The expected dividend assumption is based on management’s current expectation about the Company’s anticipated dividend policy. The Company does not anticipate declaring dividends in the foreseeable future. Expected Volatility : Since the Company did not have sufficient trading history, the volatility factor was based on the average of similar public companies through August 2014. When selecting similar companies, the Company considered the industry, stage of life cycle, size, and financial leverage. Beginning in August 2014, the volatility factor is based on a combination of the Company’s trading history since March 2014 and the average of similar public companies. Beginning in July 2017, the volatility factor is based solely on the Company’s trading history since March 2014. For options granted in 2019 and 2018, the Company calculated the fair value of each option grant on the respective dates of grant using the following weighted average assumptions: 2019 2018 Expected term 5.67 years 5.78 years Risk-free interest rate 1.82 % 2.80 % Expected dividend yield — — Expected volatility 80.38 % 83.56 % FASB Accounting Standards Codification (“ASC”) 718, Stock Compensation, requires the Company to recognize compensation expense for the portion of options that are expected to vest. Therefore, the Company applied estimated forfeiture rates that were derived from historical employee termination behavior. If the actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in future periods. As of December 31, 2019, there was $507,000 of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Company’s stock option plan. That cost is expected to be recognized over a weighted average period of 1.49 years and will be adjusted for subsequent changes in estimated forfeitures. The weighted average fair value of share-based compensation awards granted during the years ended December 31, 2019 and 2018 was approximately $1.25 per share and $1.01 per share, respectively. Additionally, as of December 31, 2019, there was $958,000 of total unrecognized compensation cost related to unvested restricted stock units that have either time-based vesting or performance-based vesting. (i) Fair Value The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Quoted prices for identical instruments in active markets. · Level 2 Inputs: Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuation in which all significant inputs and significant value drivers are observable in active markets. · Level 3 Inputs: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. All of the Company’s financial instruments are valued using quoted prices in active markets or based on other observable inputs. For accrued interest income, prepaid and other current assets, accounts payable, and accrued expenses, the carrying amounts approximate fair value because of the short maturity of these instruments. The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis at December 31, 2019 and 2018: December 31, Fair value measurements at reporting date using 2019 Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds and commercial paper $ 8,921,249 $ 6,575,862 $ 2,345,387 $ — Corporate bonds, notes and commercial paper 4,340,041 — 4,340,041 — $ 13,261,290 $ 6,575,862 $ 6,685,428 $ — Liabilities: Warrant liability $ 4,591,200 $ — $ — $ 4,591,200 $ 17,852,490 $ 6,575,862 $ 6,685,428 $ 4,591,200 December 31, Fair value measurements at reporting date using 2018 Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds and corporate bonds $ 7,331,005 $ 4,835,433 $ 2,495,572 $ — Government treasury bills 897,381 897,381 — — Corporate bonds, notes and commercial paper 6,275,656 — 6,275,656 — $ 14,504,042 $ 5,732,814 $ 8,771,228 $ — The following methods and assumptions were used to determine the fair value of each class of assets and liabilities recorded at fair value in the balance sheets: Cash equivalents: Cash equivalents primarily consist of highly-rated money market funds, commercial paper and treasury bills with original maturities to the Company of three months or less and are purchased daily at par value with specified yield rates. Cash equivalents related to money market funds and treasury bills are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices or broker or dealer quotations for similar assets. Cash equivalents related to commercial paper are classified within Level 2 of the fair value hierarchy because they are valued using broker/dealer quotes, bids and offers, benchmark yields and credit spreads and other observable inputs. Government bonds and notes: The Company uses a third-party pricing service to value these investments. United States bonds and notes are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices for identical assets and reportable trades. Corporate bonds, notes, and commercial paper: The Company uses a third-party pricing service to value these investments. The pricing service utilizes broker/dealer quotes, bids and offers, benchmark yields and credit spreads and other observable inputs. Other United States government agency bonds are classified within Level 2 of the fair value hierarchy because they are valued using broker/dealer quotes, bids and offers, benchmark yields and credit spreads and other observable inputs. Warrant liability: The warrant liability (which relates to warrants to purchase shares of common stock) is marked-to-market each reporting period with the change in fair value recorded to other income (expense) in the accompanying statements of operations until the warrants are exercised, expire or other facts and circumstances lead the warrant liability to be reclassified to stockholders’ equity. The fair value of the warrant liability is estimated using a Black-Scholes option-pricing model. The significant assumptions used in preparing the option pricing model for valuing the warrant liability as of December 31, 2019, include (i) volatility of 225.93%, (ii) risk free interest rate of 1.69%, (iii) strike price of $0.50, (iv) fair value of common stock of $0.385, and (v) expected life of 4.9 years. The Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1, Level 2 or Level 3 for the years ended December 31, 2019 and 2018. (j) Earnings (Loss) per Share Basic earnings (loss) per share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is based on the weighted average number of common shares outstanding plus, where applicable, the additional potential common shares that would have been outstanding related to dilutive options, warrants, and unvested restricted stock units to the extent such shares are dilutive. The following table sets forth the computation of basic and diluted earnings (loss) per share of common stock for the years ended December 31, 2019 and 2018. Year Ended December 31, 2019 2018 Basic loss per share attributable to common stock: Numerator Net loss $ (13,007,344) $ (11,660,022) Denominator Weighted avg. common shares outstanding 25,882,273 21,352,339 Basic loss per share attributable to common stock $ (0.50) $ (0.55) Diluted loss per share attributable to common stock: Numerator Net loss $ (13,007,344) $ (11,660,022) Denominator Weighted avg. common shares outstanding 25,882,273 21,352,339 Diluted loss per share attributable to common stock $ (0.50) $ (0.55) The computation of diluted earnings per share for the years ended December 31, 2019 and 2018 does not include stock options, warrants or unvested restricted stock units to purchase shares in the computation of diluted earnings per share because these instruments were antidilutive: December 31, 2019 2018 Stock options 2,310,485 2,424,617 Warrants 12,000,000 — Unvested restricted stock units 661,307 682,124 (k) Segment Information The Company is a single reportable segment engaged in research and development for the delivery of drugs using its proprietary delivery technology. Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision maker in making decisions regarding resource allocation and assessing performance. The chief operating decision maker made such decisions and assessed performance at the company level, as one segment. (l) Principles of Consolidation The consolidated financial statements include the accounts of the Company and all subsidiaries. The Company eliminates all intercompany accounts and transactions in consolidation.

Marketable Investment Securitie

Marketable Investment Securities	12 Months Ended
	Dec. 31, 2019
Marketable Investment Securities
Marketable Investment Securities	(3) Marketable Investment Securities The Company has classified its marketable investment securities as available-for-sale securities, all of which are debt securities. Debt securities are carried at fair value with unrealized holding gains and losses, net of the related tax effect, included in accumulated other comprehensive loss in stockholders’ equity until realized. Gains and losses on investment security transactions are reported on the specific-identification method. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of security at December 31, 2019 and 2018 were as follows: Gross Gross unrealized unrealized Amortized holding holding Aggregate December 31, 2019 Cost gains losses fair value Corporate bonds, notes and commercial paper 4,340,079 — (38) 4,340,041 $ 4,340,079 $ — $ (38) $ 4,340,041 Gross Gross unrealized unrealized Amortized holding holding Aggregate December 31, 2018 Cost gains losses fair value Government treasury bills $ 897,481 $ — $ (100) $ 897,381 Corporate bonds, notes and commercial paper 6,276,519 — (879) 6,275,656 $ 7,174,000 $ — $ (979) $ 7,173,037 Maturities of debt securities classified as available-for-sale securities at December 31, 2019 are as follows: Amortized Aggregate Cost fair value Due within one year $ 4,340,079 $ 4,340,041 $ 4,340,079 $ 4,340,041 There were no sales of marketable investment securities during the years ended December 31, 2019 and 2018 and therefore no realized gains or losses. Additionally, $19.8 million and $36.8 million of marketable investment securities matured during the years ended December 31, 2019 and 2018, respectively. The Company determined there were no other-than-temporary impairments for the years ended December 31, 2019 and 2018.

Contractual Agreements

Contractual Agreements	12 Months Ended
	Dec. 31, 2019
Contractual Agreements
Contractual Agreements	(4) Contractual Agreements (a) Abbott Products, Inc. On March 29, 2012, the Company terminated its collaborative agreement with Solvay Pharmaceuticals, Inc. (later acquired by Abbott Products, Inc.) for TLANDO. As part of the termination, the Company reacquired the rights to the intellectual property from Abbott. All obligations under the prior license agreement have been completed except that Lipocine will owe Abbott a perpetual 1% royalty on net sales. Such royalties are limited to $1.0 million in the first two calendar years following product launch, after which period there is not a cap on royalties and no maximum aggregate amount. If generic versions of any such product are introduced, then royalties are reduced by 50%. The Company did not incur any royalties during the years ended December 31, 2019 and 2018. (b) Contract Research and Development The Company has entered into agreements with various contract organizations that conduct preclinical, clinical, analytical and manufacturing development work on behalf of the Company as well as a number of independent contractors, primarily clinical researchers, who serve as advisors to the Company. The Company incurred expenses of $5.4 million and $4.1 million under these agreements in 2019 and 2018 and has recorded these expenses in research and development expenses.

Loan and Security Agreement

Loan and Security Agreement	12 Months Ended
	Dec. 31, 2019
Loan and Security Agreement
Loan and Security Agreement	(5) Loan and Security Agreement On January 5, 2018, the Company entered into a Loan and Security Agreement (the “Loan and Security Agreement”) with Silicon Valley Bank (“SVB”) pursuant to which SVB agreed to lend the Company $10.0 million. The principal borrowed under the Loan and Security Agreement bears interest at a rate equal to the Prime Rate, as reported in the money rates section of The Wall Street Journal or any successor publication representing the rate of interest per annum then in effect, plus one percent per annum (6% as of December 31, 2019), which interest is payable monthly. The loan matures on December 1, 2021. The Company was only required to make monthly interest payments until December 31, 2018, following which the Company is required to also make equal monthly payments of principal and interest for the remainder of the term. The Company will also be required to pay an additional final payment at maturity equal to $650,000 (the “Final Payment Charge”). The Final Payment Charge will be due on the scheduled maturity date and to date approximately $481,000 has been recognized as an increase to the principal balance with a corresponding charge to interest expense with the remaining final payment charge to be recognized over the term of the facility using the effective interest method. At its option, the Company may prepay all amounts owed under the Loan and Security Agreement (including all accrued and unpaid interest and the Final Payment Charge), subject to a prepayment charge if the loan has been outstanding for less than two years, which prepayment charge is determined based on the date the loan is prepaid. In connection with the Loan and Security Agreement, the Company granted to SVB a security interest in substantially all of the Company’s assets now owned or hereafter acquired, excluding intellectual property and certain other assets. In addition, as TLANDO was not approved by the United States Food and Drug Administration (“FDA”) prior to May 31, 2018, the Company maintains $5.0 million of cash collateral at SVB as required under the Loan and Security Agreement until such time as TLANDO is approved by the FDA. While any amounts are outstanding under the Loan and Security Agreement, the Company is subject to a number of affirmative and negative covenants, including covenants regarding dispositions of property, business combinations or acquisitions, incurrence of additional indebtedness and transactions with affiliates, among other customary covenants. The credit facility also includes events of default, the occurrence and continuation of which could cause interest to be charged at the rate that is otherwise applicable plus 5.0% and would provide SVB, as collateral agent, with the right to exercise remedies against the Company and the collateral securing the credit facility, including foreclosure against the property securing the credit facilities, including its cash. These events of default include, among other things, any failure by the Company to pay principal or interest due under the credit facility, a breach of certain covenants under the credit facility, the Company’s insolvency, a material adverse change, and one or more judgments against the Company in an amount greater than $100,000 individually or in the aggregate. Future maturities principal payments on debt at December 31, 2019, are as follows: Amount Years Ending December 31, (in thousands) 2020 3,333 2021 3,334 Thereafter — $ 6,667 The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheet that sum to the total of the same such amounts shown in the statement of cash flows. December 31, 2019 Cash and cash equivalents $ 9,728,523 Restricted cash 5,000,000 Cash, cash equivalents, and retricted cash shown in the statement of cash flows $ 14,728,523 Amounts included in restricted cash represent those required to be set aside by the Loan and Security Agreement. The restriction will lapse if and when TLANDO is approved by the FDA.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2019
Property and Equipment
Property and Equipment	(6) Property and Equipment Property and equipment consisted of the following: December 31, December 31, 2019 2018 Computer equipment and software $ 43,361 $ Lab and office equipment 1,048,932 1,048,932 Furniture and fixtures 51,404 51,404 1,143,697 1,143,697 Less accumulated depreciation (1,140,143) (1,124,700) $ 3,554 $ 18,997 Depreciation expense for the years ended December 31, 2019 and 2018 was approximately $15,000 and $19,000, respectively.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Taxes
Income Taxes	(7) Income Taxes (a) Income Tax Expense Income tax expense consists of: December 31, 2019 2018 U.S. federal $ — $ — State and local 200 700 Deferred — — Total $ 200 $ 700 (b) Tax Rate Reconciliation Income tax expense was $200 and $700, respectively, for the years ended December 31, 2019 and 2018 and differed from the amounts computed by applying the U.S. federal income tax rate of 21% for 2019 and 2018, respectively, to pretax income from continuing operations as a result of the following: December 31, 2019 2018 Computed "expected" tax expense (benefit) $ (2,731,500) $ (2,448,457) Increase (reduction) in income taxes resulting from: Change in valuation allowance 3,037,041 2,671,563 State and local income taxes, net of federal income tax benefit 158 553 Stock expense 114,458 136,903 Research and development tax credits (357,561) (266,163) Orphan drug tax credit (14,357) (95,822) Other, net (48,039) 2,123 $ 200 $ 700 (c) Significant Components of Deferred Taxes The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are presented below. December 31, 2019 2018 Deferred tax assets: Stock-based compensation $ 1,637,731 $ 1,540,215 Net operating loss carryforwards 30,574,751 27,397,503 Employee benefits 48,423 48,294 Research and development tax credits 3,833,189 3,362,473 Orphan drug tax credits 1,162,757 1,144,583 Plant and equipment 1,782 234 Other deductible tempory differences 5,806 378 Total gross deferred tax assets 37,264,439 33,493,680 Less valuation allowance (37,264,439) (33,493,680) Net deferred tax assets $ — $ — The valuation allowance for deferred tax assets as of December 31, 2019 and 2018 was $37.3 million and $33.5 million, respectively. The net change in the valuation allowance was an increase of $3.8 million in 2019 and an increase of $2.7 million in 2018. A valuation allowance has been provided for the full amount of the Company’s net deferred tax assets as the Company believes it is more likely than not that these benefits will not be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax planning strategies in making this assessment. During the year ended December 31, 2013, the Company experienced a change in ownership, as defined by the Internal Revenue Code, as amended (the “Code”) under Section 382. A change of ownership occurs when ownership of a company increases by more than 50 percentage points over a three-year testing period of certain stockholders. As a result of this ownership change, we determined that our annual limitation on the utilization of our federal net operating loss (“NOL”) and credit carryforwards is approximately $1.1 million per year. We will only be able to utilize $20.2 million of our pre-ownership change NOL carryforwards and will forgo utilizing $5.5 million of our pre-ownership change NOL carryforwards and $1.2 million of our pre-change credit carryforwards as a result of this ownership change. We do not account for forgone NOL and credit carryovers in our deferred tax assets and only account for the NOL and credit carryforwards that will not expire unutilized as a result of the restrictions of Code Section 382. As of December 31, 2019, we had NOL and research and development credit carryforwards for U.S. federal income tax reporting purposes of approximately $118.9 million and $2.7 million, respectively. Approximately $20.2 million of the NOL will expire between 2023 and 2033 and $76.4 million of the NOL will expire 2034 through 2037. Pursuant to the Tax Cuts and Jobs Act of 2017, NOL’s generated in 2018 and subsequent years have an unlimited carryforward therefore the 2019 and 2018 NOL of $22.3 million can be carried forward indefinitely. The research and development credits will begin to expire in 2033 through 2038. We have orphan drug credit carry forwards of approximately $1.2 million which will expire if unused through 2039. We also have state NOL and research and development credit carry-forwards of approximately $112.2 million and $1.2 million, respectively. Approximately $572,000 of the Company's state NOL expires in 2020, $37.0 million expires between 2021 and 2029, and $74.6 million will expire in 2030 through 2033. The state research and development credits expire in 2023 through 2033. The Company's federal and state income tax returns for December 31, 2016 through 2019 are open tax years. A reconciliation of the beginning and ending amount of total unrecognized tax contingencies, excluding interest and penalties, for the years ended December 31, 2019 and 2018 are as follows: December 31, 2019 2018 Balance, beginning of year $ — $ — Balance, end of year $ — $ —

Leases

Leases	12 Months Ended
	Dec. 31, 2019
Leases
Leases	(8) Leases On August 6, 2004, the Company assumed a non-cancelable operating lease for office space and laboratory facilities in Salt Lake City, Utah. On May 6, 2014, the Company modified and extended the lease through February 28, 2018, on February 8, 2018, the Company extended the lease through February 28, 2019 on January 2, 2019, the Company extended the lease through February 29, 2020 and on February 24, 2020, the Company extended the lease through February 28, 2021. Additionally, on December 28, 2015, the Company entered into an operating lease for office space in Lawrenceville, New Jersey through January 31, 2018. The Company vacated the Lawrenceville, New Jersey office on January 31, 2018. Future minimum lease payments under non-cancelable operating leases as of December 31, 2019 are: Operating leases Year ending December 31: 2020 55,064 Total minimum lease payments $ 55,064 The Company’s rent expense was $329,000 and $323,000 for the years ended December 31, 2019 and 2018, respectively.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2019
Stockholders' Equity
Stockholders' Equity	(9) Stockholders’ Equity (a) Issuance of Common Stock On February 27, 2020, the Company completed a registered direct offering of securities registered under an effective registration statement filed pursuant to the Securities Act of 1933, as amended (“February 2020 Offering”). The gross proceeds from the February 2020 Offering were approximately $6.0 million, before deducting placement agent fees and other offering expenses of $375,000. In the February 2020 Offering, the Company sold 10,084,034 Class A Units at an offering price of $0.595 per unit, with each Class A Unit consisting of one share of its common stock and one-half of a common warrant to purchase one share of common stock at an exercise price of $0.53 per share of common stock. Additionally, the common stock warrants were immediately exercisable and expire on February 27, 2025. By their terms, however, the common stock warrants cannot be exercised at any time that the common stock warrant holder would beneficially own, after such exercise, more than 4.99% (or, at the election of the holder, 9.99%) of the shares of common stock then outstanding after giving effect to such exercise. On November 18, 2019, the Company completed a public offering of securities registered under an effective registration statement filed pursuant to the Securities Act of 1933, as amended (“November 2019 Offering”). The gross proceeds from the November 2019 Offering were approximately $6.0 million, before deducting placement agent fees and other offering expenses of $404,000. In the November 2019 Offering, the Company sold (i) 10,450,000 Class A Units, with each Class A Unit consisted of one share of its common stock and a common warrant to purchase on share of its common stock, and (ii) 1,550,000 Class B Units, with each Class B Unit consisting of one pre-funded warrant to purchase one share of its common stock and a common warrant to purchase one share of its common stock, at a price of $0.50 per Class A Unit and $0.4999 per Class B Unit. The pre-funded warrants, which were exercised for common stock in December 2019, were issued in lieu of common stock in order to ensure the purchaser did not exceed certain beneficial ownership limitations. The pre-funded warrants were immediately exercisable at an exercise price of $.0001 per share, subject to adjustment. Additionally, the common stock warrants were immediately exercisable at an exercise price of $0.50 per share, subject to adjustment, and expire on November 17, 2024. By their terms, however, neither the pre-funded warrants nor the common stock warrants can be exercised at any time that the pre-funded warrant holder or the common stock warrant holder would beneficially own, after such exercise, more than 4.99% (or, at the election of the holder, 9.99%) of the shares of common stock then outstanding after giving effect to such exercise. On the date of the November 2019 Offering, the Company allocated approximately $768,000 and $4.8 million to common stock/additional paid-in capital and warrant liability, respectively. In March 2017, the Company entered into a Controlled Equity Offering Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co. (“Cantor”), to sell shares of our common stock, with aggregate gross sales proceeds of up to $20.0 million, from time to time, through an “at the market” (“ATM”), equity offering program, under which Cantor acts as sales agent. The shares of common stock to be sold under the Sales Agreement were originally sold and issued pursuant to the Company’s Registration Statement on Form S-3 (File No. 333-199093) (the “Prior Form S-3”), which was previously declared effective by the Securities and Exchange Commission, and the related prospectus and one or more prospectus supplements. On October 13, 2017, the Company filed a Form S-3 (File No. 333-220942) (the “New Form S-3”) to replace the Prior Form S-3. The New Form S-3 has been declared effective by the Securities and Exchange Commission, and the Prior Form S-3 has been terminated. The New Form S-3 registered the sale of up to $150.0 million of any combination of common stock, preferred stock, debt securities, warrants and units pursuant to a shelf registration statement. The New Form S-3 also contains a prospectus pursuant to which we may sell, from time to time, shares of our common stock having an aggregate offering price of up to $25.0 million through Cantor as our sales agent, pursuant to the Sales Agreement. As of December 31, 2019, we had sold an aggregate of 6,635,535 shares at a weighted-average sales price of $3.02 per share under the ATM for aggregate gross proceeds of $20.0 million and net proceeds of $19.3 million, after deducting sales agent commission and discounts and our other offering costs. During the year ended December 31, 2019, the Company sold an aggregate of 3,650,479 shares at a weighted-average sales price of $2.26 per share under the ATM for aggregate gross proceeds of $8.2 million and $8.0 million in net proceeds. During the year ended December 31, 2018, the Company sold an aggregate of 466,947 shares at a weighted-average sales price of $1.45 per share under the ATM for aggregate gross proceeds of $678,000 and $652,000 in net proceeds. (b) Rights Agreement On November 13, 2015, the Company and American Stock Transfer & Trust Company, LLC, as Rights Agent, entered into a Rights Agreement. Also on November 12, 2015, the board of directors of the Company authorized and the Company declared a dividend of one preferred stock purchase right (each a “Right” and collectively, the “Rights”) for each outstanding share of common stock of the Company. The dividend was payable to stockholders of record as of the close of business on November 30, 2015 and entitles the registered holder to purchase from the Company one one-thousandth of a fully paid non-assessable share of Series A Junior Participating Preferred Stock of the Company at a price of $63.96 per one-thousandth share (the “Purchase Price”). The Rights will generally become exercisable upon the earlier to occur of (i) 10 business days following a public announcement that a person or group of affiliated or associated persons has become an Acquiring Person (as defined below) or (ii) 10 business days (or such later date as may be determined by action of the board of directors prior to such time as any person or group of affiliated or associated persons becomes an Acquiring Person) following the commencement of, or announcement of an intention to make, a tender offer or exchange offer the consummation of which would result in the beneficial ownership by a person or group of 15% or more of the outstanding common stock of the Company. Except in certain situations, a person or group of affiliated or associated persons becomes an “Acquiring Person” upon acquiring beneficial ownership of 15% or more of the outstanding shares of common stock of the Company. In general, in the event a person becomes an Acquiring Person, then each Right not owned by such Acquiring Person will entitle its holder to purchase from the Company, at the Right’s then current exercise price, in lieu of shares of Series A Junior Participating Preferred Stock, common stock of the Company with a market value of twice the Purchase Price. In addition, if after any person has become an Acquiring Person, (a) the Company is acquired in a merger or other business combination, or (b) 50% or more of the Company’s assets, or assets accounting for 50% or more of its earning power, are sold, leased, exchanged or otherwise transferred (in one or more transactions), proper provision shall be made so that each holder of a Right (other than the Acquiring Person, its affiliates and associates and certain transferees thereof, whose Rights became void) shall thereafter have the right to purchase from the acquiring corporation, for the Purchase Price, that number of shares of common stock of the acquiring corporation which at the time of such transaction would have a market value of twice the Purchase Price. The Company will be entitled to redeem the Rights at $0.001 per Right at any time prior to the time an Acquiring Person becomes such. The terms of the Rights are set forth in the Rights Agreement, which is summarized in the Company’s Current Report on Form 8‑K dated November 13, 2015. The rights plan was originally set to expire on November 12, 2018; however, on November 5, 2018 our Board of Directors approved an Amended and Restated Rights Agreement pursuant to which the expiration date was extended to November 5, 2021, unless the rights are earlier redeemed or exchanged by the Company. (c) Stock Option Plan In April 2014, the board of directors adopted the 2014 Stock and Incentive Plan ("2014 Plan") subject to shareholder approval which was received in June 2014. The 2014 Plan provides for the granting of nonqualified and incentive stock options, stock appreciation rights, restricted stock units, restricted stock and dividend equivalents. An aggregate of 1,000,000 shares are authorized for issuance under the 2014 Plan. Additionally, 271,906 remaining authorized shares under the 2011 Equity Incentive Plan ("2011 Plan") were issuable under the 2014 Plan at the time of the 2014 Plan adoption. Upon receiving shareholder approval in June 2016, the 2014 Plan was amended and restated to increase the authorized number of shares of common stock of the Company issuable under all awards granted under the 2014 Plan from 1,271,906 to 2,471,906. Additionally, upon receiving shareholder approval in June 2018, the 2014 Plan was further amended and restated to increase the authorized number of shares of common stock of the Company issuable under all awards granted under the 2014 Plan from 2,471,906 to 3,221,906. The board of directors, on an option-by-option basis, determines the number of shares, exercise price, term, and vesting period. Options granted generally have a ten-year contractual life. The Company issues shares of common stock upon the exercise of options with the source of those shares of common stock being either newly issued shares or shares held in treasury. An aggregate of 3,221,906 shares are authorized for issuance under the 2014 Plan, with 662,263 shares remaining available for grant as of December 31, 2019. A summary of stock option activity is as follows: Outstanding stock options Number of Weighted average shares exercise price Balance at December 31, 2018 2,424,617 $ 5.00 Options granted 79,000 1.84 Options exercised (20,000) 2.81 Options forfeited (21,221) 2.17 Options cancelled (151,911) 6.93 Balance at December 31, 2019 2,310,485 4.81 Options exercisable at December 31, 2019 1,910,323 5.39 The following table summarizes information about stock options outstanding and exercisable at December 31, 2019: Options outstanding Options exercisable Weighted Weighted average average remaining Weighted remaining Weighted contractual average contractual average Aggregate Number life exercise Aggregate intrinsic Number life exercise intrinsic outstanding (Years) price value exerciseable (Years) price value 2,310,485 6.04 $ 4.81 $ — 1,910,323 5.47 $ 5.39 $ — The intrinsic value for stock options is defined as the difference between the current market value and the exercise price. The total intrinsic value of stock options exercised during the years ended December 31, 2019 and 2018 was $1,000 and zero. There were 20,000 and zero stock options exercised during the years ended December 31, 2019 and 2018. (d) Restricted Stock Units A summary of restricted stock unit activity is as follows: Number of unvested restricted stock units Balance at December 31, 2018 682,124 Granted 280,120 Vested (247,500) Cancelled (53,437) Balance at December 31, 2019 661,307 (e) Common Stock Warrants The Company accounts for its common stock warrants under ASC 480, Distinguishing Liabilities from Equity , which requires any financial instrument, other than an outstanding share, that, at inception, embodies an obligation to repurchase the issuer’s equity shares, or is indexed to such an obligation, and requires or may require the issuer to settle the obligation by transferring assets, to be classified as a liability. In accordance with ASC 480, the Company’s outstanding warrants from the November 2019 Offering are classified as a liability. The liability is adjusted to fair value at each reporting period, with the changes in fair value recognized as gain (loss) on change in fair value of warranty liability in the Company’s consolidated statements of operations. The warrants issued in the November 2019 Offering allow the warrant holder, if certain change in control events occur, the option to receive an amount of cash equal to the value of the warrants as determined in accordance with the Black-Scholes option pricing model with certain defined assumptions upon a fundamental transaction. As of December 31, 2019, the Company had 12,000,000 warrants outstanding to purchase an equal number of shares of common stock. The fair value of these warrants on November 18, 2019 (closing date of November 2019 Offering) and December 31, 2019 was determined using the Black-Scholes option pricing model with the following Level 3 inputs (as defined in the November 2019 Offering): November 18, December 31, 2019 2019 Expected life in years 5.00 4.88 Risk-free interest rate 1.63 % 1.69 % Dividend yield — — Volatility 224.47 % 225.93 % Stock price $ 0.41 $ 0.39 During the year ended December 31, 2019, the Company recorded a non-cash gain of $236,000 from the change in fair value of the November 2019 Offering warrants. The following table is a reconciliation of the warrant liability measured at fair value using level 3 inputs: Warrant Liability Balance at December 31, 2018 $ — Initial fair value of common stock warrants issued in November 2019 Offering 4,827,600 Change in fair value of common stock warrants during 2019 (236,400) Balance at December 31, 2019 $ 4,591,200 The following table summarizes the number of warrants outstanding and the weighted average exercise price: Weighted Weighted Average Average Remaining Exercise Contractual Aggregate Warrants Price Life Intrinsic Value Outstanding at December 31, 2018 — $ — — $ — Issued 12,000,000 0.50 5.00 — Exercised — — — — Expired — — — — Cancelled — — — — Forfeited — — — — Balance at December 31, 2019 12,000,000 $ 0.50 4.88 $ —

401(k) Plan

401(k) Plan	12 Months Ended
	Dec. 31, 2019
401(k) Plan
401(k) Plan	(10) 401(k) Plan On January 1, 2002, the Company adopted a tax qualified employee savings and retirement plan (the “401(k) Plan”) covering eligible employees. Pursuant to the 401(k) Plan, employees may elect to reduce current compensation by a percentage of eligible compensation, not to exceed legal limits, and contribute the amount of such reduction to the 401(k) Plan. Beginning April 1, 2014, the 401(k) Plan was amended to require matching contributions to the 401(k) Plan by the Company on behalf of the participants of 100 percent Company match on up to four percent of an employee's compensation computed on a per pay period basis. The Company contributed $63,000 and $84,000, respectively, to the 401(k) Plan during the years ended December 31, 2019 and 2018.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	(11) Commitments and Contingencies Litigation The Company is involved in various lawsuits, claims and other legal matters from time to time that arise in the ordinary course of conducting business. The Company records a liability when a particular contingency is probable and estimable. On July 2, 2018 the court signed a final order approving the parties’ agreement to settle the purported securities class action litigation captioned In re Lipocine Inc. Securities Litigation, 2:17CV00182 DB (D. Utah) which was originally filed against the Company on July 1, 2016. The final order issued by the court specifically finds that the settlement set forth in the parties’ stipulation is fair, reasonable, adequate, and in the best interests of the Class, and resolves all of the claims that were or could have been brought in the action being settled. The Company maintains insurance for claims of this nature. When the Company signed the memorandum of understanding to settle the purported securities class action litigation, the potential liability became probable and estimable. The Company recorded a litigation settlement liability for $4.3 million as of December 31, 2017. Additionally, the Company recorded a litigation insurance settlement recovery receivable of $3.3 million as of December 31, 2017 which represented the estimated insurance claims proceeds from our insurance carrier in excess of the Company’s retention. As of December 31, 2018, the Company and the insurance carrier have remitted the full balance of the litigation settlement and, as such, the litigation settlement liability and litigation insurance receivable have zero balances. On February 15, 2019, a purported shareholder filed a shareholder derivative complaint in the Court of Chancery of the State of Delaware, John Wajda, derivatively on behalf of Lipocine Inc. v. Mahesh Patel, et al., against certain of the Company’s current and former officers and directors as well as the Company as a nominal defendant. The complaint asserts claims for alleged breaches of fiduciary duty and unjust enrichment arising out of the Company’s dissemination of purportedly false and misleading statements relating to the filing of the New Drug Application (“NDA”) for TLANDO. The relief sought in the complaint includes unspecified damages, changes to the Company’s corporate governance procedures, equitable and/or injunctive relief, restitution, and attorneys’ fees. On August 16, 2019, defendants filed a motion to dismiss the complaint. Plaintiff’s response to the motion to dismiss was due on October 18, 2019; however rather than file an opposition brief, plaintiffs filed an amended stockholder derivative complaint. Defendants’ motion to dismiss the amended complaint was filed on December 12, 2019; plaintiff’s response was filed on January 27, 2020 and defendants’ reply was filed on February 26, 2020. The Company intends to vigorously defend itself and its current and former officers and directors against these allegations and has not recorded a liability related to this derivative complaint as the outcome is not probable nor can an estimate be made of loss, if any. On April 2, 2019, the Company filed a lawsuit against Clarus in the United States District Court for the District of Delaware alleging that Clarus’s JATENZO® product infringes six of Lipocine’s issued U.S. patents: 9,034,858; 9,205,057; 9,480,690; 9,757,390; 6,569,463; and 6,923,988. Clarus has answered the complaint and asserted counterclaims of non-infringement and invalidity. The Company answered Clarus’s counterclaims on April 29, 2019. The Court held a scheduling conference on August 15, 2019 and a claim construction hearing on February 11, 2020 and scheduled a five-day jury trial beginning on February 8, 2021. On February 11, 2020, the Company voluntarily dismissed allegations of patent infringement for expired U.S. Patent Nos. 6,569,463 and 6,923,988 in an effort to streamline the issues and associated costs for dispute. The parties are currently engaged in the fact discovery phase of the lawsuit. On November 14, 2019, the Company and certain of its officers were named as defendants in a purported shareholder class action lawsuit, Solomon Abady v. Lipocine Inc. et al ., 2:19-cv-00906-PMW, filed in the United District Court for the District of Utah. The complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that our filing of the NDA for TLANDO to the FDA contained deficiencies and as a result the defendants’ statements about our business and operations were false and misleading and/or lacked a reasonable basis in violation of federal securities laws. The lawsuit seeks certification as a class action (for a purported class of purchasers of the Company’s securities from March 27, 2019 through November 8, 2019), compensatory damages in an unspecified amount, and unspecified equitable or injunctive relief. The Company insurance that covers claims of this nature. The retention amount payable by the Company under our policy is $1.25 million. The Company intends to vigorously defend itself and its current and former officers and directors against these allegations and has not recorded a liability related to this shareholder class action lawsuit as the outcome is not probable nor can an estimate be made of loss, if any. Beyond John Wajda, derivatively on behalf of Lipocine Inc. v. Mahesh Patel, et al. and Solomon Abady v. Lipocine Inc. et al ., 2:19-cv-00906-PM, management does not currently believe that any other matter, individually or in the aggregate, will have a material adverse effect on our financial condition, liquidity or results of operations. Guarantees and Indemnifications In the ordinary course of business, the Company enters into agreements, such as lease agreements, licensing agreements, clinical trial agreements, and certain services agreements, containing standard guarantee and / or indemnifications provisions. Additionally, the Company has indemnified its directors and officers to the maximum extent permitted under the laws of the State of Delaware.

Agreement with Spriaso, LLC

Agreement with Spriaso, LLC	12 Months Ended
	Dec. 31, 2019
Agreement with Spriaso, LLC
Agreement with Spriaso, LLC	(12) Agreement with Spriaso, LLC On July 23, 2013, the Company entered into an assignment/license and a services agreement with Spriaso, a related-party that is majority-owned by certain current and former directors of Lipocine Inc. and their affiliates. Under the license agreement, the Company assigned and transferred to Spriaso all of the Company’s rights, title and interest in its intellectual property to develop products for the cough and cold field. In addition, Spriaso received all rights and obligations under the Company’s product development agreement with a third-party. In exchange, the Company will receive a royalty of 20 percent of the net proceeds received by Spriaso, up to a maximum of $10.0 million. Spriaso also granted back to the Company an exclusive license to such intellectual property to develop products outside of the cough and cold field. Under the service agreement, the Company provided facilities and up to 10 percent of the services of certain employees to Spriaso for a period of 18 months which expired January 23, 2015. Effective January 23, 2015, the Company entered into an amended services agreement with Spriaso in which the Company agreed to continue providing up to 10 percent of the services of certain employees to Spriaso at a rate of $230/hour for a period of six months. The agreement was further amended on July 23, 2015, on January 23, 2016, on July 23, 2016, on January 23, 2017, on July 23, 2017 on January 23, 2018, July 23, 2018 and again on January 23, 2019 to extend the term of the agreement for an additional six months. The agreement was further amended on July 23, 2019 to extend the term of the agreement for an additional twelve months. The agreement may be extended upon written agreement of Spriaso and the Company. The Company received reimbursements of zero and $5,000 for the years ended December 31, 2019 and 2018, respectively. Additionally, during the years ended December 31, 2019 and 2018, the Company received $165,000 and $428,000, respectively, in royalty payments from Spriaso. Spriaso filed its first NDA and as an affiliated entity of the Company, it used up the one-time waiver for user fees for a small business submitting its first human drug application to the FDA. Spriaso is considered a variable interest entity under the FASB ASC Topic 810-10, Consolidations , however the Company is not the primary beneficiary and has therefore not consolidated Spriaso.

Accounting Pronouncements

Accounting Pronouncements	12 Months Ended
	Dec. 31, 2019
Accounting Pronouncements
Accounting Pronouncements	(13) Accounting Pronouncements Accounting Pronouncements Issued Not Yet Adopted In 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This standard replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables, and requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The original effective date for ASU 2016-13 was for annual and interim periods beginning after December 15, 2019. However, in October 2019, the FASB issued ASU 2019-10, Financial Instruments - Credit Losses, Derivatives and Hedging, and Leases: Effective Dates , which deferred the effective date of ASU 2016-13 for certain entities, including those that are eligible to be smaller reporting companies. A company’s determination about whether it is eligible for the deferral is a one-time assessment as of November 15, 2019 based on its most recent determination of its small reporting company eligibility as of the last business day of the most recently completed second quarter. Based on this determination, the Company qualifies as a smaller reporting entity and is therefore eligible for the deferral of adoption of ASU 2016-13, resulting in a new effective date of January 1, 2023. The Company has historically not had credit losses on financial instruments and is currently evaluating the impact the adoption of ASU 2016-13 will have on its consolidated financial statements Recently Adopted Accounting Pronouncements Effective January 1, 2019, the Company adopted ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires lessees to record most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current accounting. The adoption of ASU 2016-02 did not have a material impact on the Company’s condensed consolidated financial statements as the Company did not have a lease with a term greater than one year. Effective January 1, 2019, the Company adopted ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”), which aligns accounting for share-based payments issued to nonemployees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for equity-based payments to nonemployees under Subtopic 505-50, Equity - Equity-Based Payments to Non-Employees. The adoption of ASU 2018-07 did not have a material impact on the Company’s consolidated financial statements.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Use of Estimates	(a) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include those related to stock-based compensation; income tax uncertainties; and the useful lives of property and equipment.
Cash and Cash Equivalents	(b) Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities to the Company of three months or less to be cash equivalents. Although the Company may deposit its cash and cash equivalents with multiple financial institutions, its deposits, at times, may exceed federally insured limits. Cash and cash equivalents were $9.7 million and $8.1 million at December 31, 2019 and 2018.
Receivables	(c) Receivables Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and their customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. The Company had no write-offs in 2019 and 2018 and the Company did not record an allowance for doubtful accounts as of December 31, 2019 and 2018 as there were no accounts receivable outstanding. The Company does not have any off-balance-sheet credit exposure related to its customers.
Revenue Recognition	(d) Revenue Recognition The Company generates revenue from license and royalty arrangements. At inception of each contract, the Company identifies the goods and services that have been promised to the customer and each of those that represent a distinct performance obligation, determines the transaction price including any variable consideration, allocates the transaction price to the distinct performance obligations and determines whether control transfers to the customer at a point in time or over time. Variable consideration is included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company reassess its reserves for variable consideration at each reporting date and makes adjustments, if necessary, which may affect revenue and earnings in periods in which any such changes become known.
Property and Equipment	(e) Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Maintenance and repairs that do not extend the life or improve the asset are expensed in the year incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are five years for laboratory and office equipment, three years for computer equipment and software, and seven years for furniture and fixtures.
Accounting for Impairment of Long-Lived Assets	(f) Accounting for Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by a comparison of the carrying amount of an asset to future net cash flows (undiscounted) expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets held for sale are reported at the lower of the carrying amount, or fair value, less costs to sell.
Income Taxes	(g) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the net deferred tax assets will not be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as a component of its income tax expense. The Company recognizes stock-based compensation expense for grants of stock option awards, restricted stock units and restricted stock under the Company’s Incentive Plan to employees, nonemployees and nonemployee members of the Company’s board of directors based on the grant-date fair value of those awards. The grant-date fair value of an award is generally recognized as compensation expense over the award’s requisite service period. In addition, the Company has granted performance-based stock option awards and restricted stock units, which vest based upon the Company satisfying certain performance conditions. Potential compensation cost, measured on the grant date, related to these performance options will be recognized only if, and when, the Company estimates that these options or units will vest, which is based on whether the Company considers the performance conditions to be probable of attainment. The Company’s estimates of the number of performance-based options or units that will vest will be revised, if necessary, in subsequent periods.
Share-Based Payments	(h) Share-Based Payments The Company uses the Black-Scholes model to compute the estimated fair value of stock option awards. Using this model, fair value is calculated based on assumptions with respect to (i) expected volatility of the Company’s Common Stock price, (ii) the periods of time over which employees , nonemployees and members of the board of directors are expected to hold their options prior to exercise (expected term), (iii) expected dividend yield on the Common Stock, and (iv) risk-free interest rates. Stock-based compensation expense also includes an estimate, which is made at the time of grant, of the number of awards that are expected to be forfeited. This estimate is revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation cost that has been expensed in the statements of operations amounted to $1.0 million and $1.5 million for the years ended December 31, 2019 and 2018, allocated as follows: Year Ended 2019 2018 Research and development $ 419,801 $ 587,437 General and administrative 616,033 870,283 $ 1,035,834 $ 1,457,720 The Company issued 79,000 stock options and 423,000 stock options, respectively, during the years ended December 31, 2019 and 2018, respectively. Additionally, the Company issued 280,120 and 540,000 restricted stock units, respectively, during the years ended December 31, 2019 and 2018, respectively. Key assumptions used in the determination of the fair value of stock options granted are as follows: Expected Term : The expected term represents the period that the stock-based awards are expected to be outstanding. Due to limited historical experience of similar awards, the expected term was estimated using the simplified method in accordance with the provisions of Staff Accounting Bulletin (“SAB”) No. 107, Share-Based Payment, for awards with stated or implied service periods. The simplified method defines the expected term as the average of the contractual term and the vesting period of the stock option. For awards with performance conditions, and that have the contractual term to satisfy the performance condition, the contractual term was used. Risk-Free Interest Rate : The risk-free interest rate used was based on the implied yield currently available on U.S. Treasury issues with an equivalent remaining term. Expected Dividend : The expected dividend assumption is based on management’s current expectation about the Company’s anticipated dividend policy. The Company does not anticipate declaring dividends in the foreseeable future. Expected Volatility : Since the Company did not have sufficient trading history, the volatility factor was based on the average of similar public companies through August 2014. When selecting similar companies, the Company considered the industry, stage of life cycle, size, and financial leverage. Beginning in August 2014, the volatility factor is based on a combination of the Company’s trading history since March 2014 and the average of similar public companies. Beginning in July 2017, the volatility factor is based solely on the Company’s trading history since March 2014. For options granted in 2019 and 2018, the Company calculated the fair value of each option grant on the respective dates of grant using the following weighted average assumptions: 2019 2018 Expected term 5.67 years 5.78 years Risk-free interest rate 1.82 % 2.80 % Expected dividend yield — — Expected volatility 80.38 % 83.56 % FASB Accounting Standards Codification (“ASC”) 718, Stock Compensation, requires the Company to recognize compensation expense for the portion of options that are expected to vest. Therefore, the Company applied estimated forfeiture rates that were derived from historical employee termination behavior. If the actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in future periods. As of December 31, 2019, there was $507,000 of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Company’s stock option plan. That cost is expected to be recognized over a weighted average period of 1.49 years and will be adjusted for subsequent changes in estimated forfeitures. The weighted average fair value of share-based compensation awards granted during the years ended December 31, 2019 and 2018 was approximately $1.25 per share and $1.01 per share, respectively. Additionally, as of December 31, 2019, there was $958,000 of total unrecognized compensation cost related to unvested restricted stock units that have either time-based vesting or performance-based vesting.
Fair Value	(i) Fair Value The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Quoted prices for identical instruments in active markets. · Level 2 Inputs: Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuation in which all significant inputs and significant value drivers are observable in active markets. · Level 3 Inputs: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. All of the Company’s financial instruments are valued using quoted prices in active markets or based on other observable inputs. For accrued interest income, prepaid and other current assets, accounts payable, and accrued expenses, the carrying amounts approximate fair value because of the short maturity of these instruments. The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis at December 31, 2019 and 2018: December 31, Fair value measurements at reporting date using 2019 Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds and commercial paper $ 8,921,249 $ 6,575,862 $ 2,345,387 $ — Corporate bonds, notes and commercial paper 4,340,041 — 4,340,041 — $ 13,261,290 $ 6,575,862 $ 6,685,428 $ — Liabilities: Warrant liability $ 4,591,200 $ — $ — $ 4,591,200 $ 17,852,490 $ 6,575,862 $ 6,685,428 $ 4,591,200 December 31, Fair value measurements at reporting date using 2018 Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds and corporate bonds $ 7,331,005 $ 4,835,433 $ 2,495,572 $ — Government treasury bills 897,381 897,381 — — Corporate bonds, notes and commercial paper 6,275,656 — 6,275,656 — $ 14,504,042 $ 5,732,814 $ 8,771,228 $ — The following methods and assumptions were used to determine the fair value of each class of assets and liabilities recorded at fair value in the balance sheets: Cash equivalents: Cash equivalents primarily consist of highly-rated money market funds, commercial paper and treasury bills with original maturities to the Company of three months or less and are purchased daily at par value with specified yield rates. Cash equivalents related to money market funds and treasury bills are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices or broker or dealer quotations for similar assets. Cash equivalents related to commercial paper are classified within Level 2 of the fair value hierarchy because they are valued using broker/dealer quotes, bids and offers, benchmark yields and credit spreads and other observable inputs. Government bonds and notes: The Company uses a third-party pricing service to value these investments. United States bonds and notes are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices for identical assets and reportable trades. Corporate bonds, notes, and commercial paper: The Company uses a third-party pricing service to value these investments. The pricing service utilizes broker/dealer quotes, bids and offers, benchmark yields and credit spreads and other observable inputs. Other United States government agency bonds are classified within Level 2 of the fair value hierarchy because they are valued using broker/dealer quotes, bids and offers, benchmark yields and credit spreads and other observable inputs. Warrant liability: The warrant liability (which relates to warrants to purchase shares of common stock) is marked-to-market each reporting period with the change in fair value recorded to other income (expense) in the accompanying statements of operations until the warrants are exercised, expire or other facts and circumstances lead the warrant liability to be reclassified to stockholders’ equity. The fair value of the warrant liability is estimated using a Black-Scholes option-pricing model. The significant assumptions used in preparing the option pricing model for valuing the warrant liability as of December 31, 2019, include (i) volatility of 225.93%, (ii) risk free interest rate of 1.69%, (iii) strike price of $0.50, (iv) fair value of common stock of $0.385, and (v) expected life of 4.9 years. The Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1, Level 2 or Level 3 for the years ended December 31, 2019 and 2018.
Earnings (Loss) per Share	(j) Earnings (Loss) per Share Basic earnings (loss) per share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is based on the weighted average number of common shares outstanding plus, where applicable, the additional potential common shares that would have been outstanding related to dilutive options, warrants, and unvested restricted stock units to the extent such shares are dilutive. The following table sets forth the computation of basic and diluted earnings (loss) per share of common stock for the years ended December 31, 2019 and 2018. Year Ended December 31, 2019 2018 Basic loss per share attributable to common stock: Numerator Net loss $ (13,007,344) $ (11,660,022) Denominator Weighted avg. common shares outstanding 25,882,273 21,352,339 Basic loss per share attributable to common stock $ (0.50) $ (0.55) Diluted loss per share attributable to common stock: Numerator Net loss $ (13,007,344) $ (11,660,022) Denominator Weighted avg. common shares outstanding 25,882,273 21,352,339 Diluted loss per share attributable to common stock $ (0.50) $ (0.55) The computation of diluted earnings per share for the years ended December 31, 2019 and 2018 does not include stock options, warrants or unvested restricted stock units to purchase shares in the computation of diluted earnings per share because these instruments were antidilutive: December 31, 2019 2018 Stock options 2,310,485 2,424,617 Warrants 12,000,000 — Unvested restricted stock units 661,307 682,124
Segment Information	(k) Segment Information The Company is a single reportable segment engaged in research and development for the delivery of drugs using its proprietary delivery technology. Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision maker in making decisions regarding resource allocation and assessing performance. The chief operating decision maker made such decisions and assessed performance at the company level, as one segment.
Principles of Consolidation	(l) Principles of Consolidation The consolidated financial statements include the accounts of the Company and all subsidiaries. The Company eliminates all intercompany accounts and transactions in consolidation.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Stock-based compensation cost that has been expensed in the statements of operations amounted to $1.0 million and $1.5 million for the years ended December 31, 2019 and 2018, allocated as follows: Year Ended 2019 2018 Research and development $ 419,801 $ 587,437 General and administrative 616,033 870,283 $ 1,035,834 $ 1,457,720
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	For options granted in 2019 and 2018, the Company calculated the fair value of each option grant on the respective dates of grant using the following weighted average assumptions: 2019 2018 Expected term 5.67 years 5.78 years Risk-free interest rate 1.82 % 2.80 % Expected dividend yield — — Expected volatility 80.38 % 83.56 %
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis at December 31, 2019 and 2018: December 31, Fair value measurements at reporting date using 2019 Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds and commercial paper $ 8,921,249 $ 6,575,862 $ 2,345,387 $ — Corporate bonds, notes and commercial paper 4,340,041 — 4,340,041 — $ 13,261,290 $ 6,575,862 $ 6,685,428 $ — Liabilities: Warrant liability $ 4,591,200 $ — $ — $ 4,591,200 $ 17,852,490 $ 6,575,862 $ 6,685,428 $ 4,591,200 December 31, Fair value measurements at reporting date using 2018 Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds and corporate bonds $ 7,331,005 $ 4,835,433 $ 2,495,572 $ — Government treasury bills 897,381 897,381 — — Corporate bonds, notes and commercial paper 6,275,656 — 6,275,656 — $ 14,504,042 $ 5,732,814 $ 8,771,228 $ —
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	The following table sets forth the computation of basic and diluted earnings (loss) per share of common stock for the years ended December 31, 2019 and 2018. Year Ended December 31, 2019 2018 Basic loss per share attributable to common stock: Numerator Net loss $ (13,007,344) $ (11,660,022) Denominator Weighted avg. common shares outstanding 25,882,273 21,352,339 Basic loss per share attributable to common stock $ (0.50) $ (0.55) Diluted loss per share attributable to common stock: Numerator Net loss $ (13,007,344) $ (11,660,022) Denominator Weighted avg. common shares outstanding 25,882,273 21,352,339 Diluted loss per share attributable to common stock $ (0.50) $ (0.55)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	The computation of diluted earnings per share for the years ended December 31, 2019 and 2018 does not include stock options, warrants or unvested restricted stock units to purchase shares in the computation of diluted earnings per share because these instruments were antidilutive: December 31, 2019 2018 Stock options 2,310,485 2,424,617 Warrants 12,000,000 — Unvested restricted stock units 661,307 682,124

Marketable Investment Securit_2

Marketable Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2019
Marketable Investment Securities
Schedule of available-for-sale securities	Gross Gross unrealized unrealized Amortized holding holding Aggregate December 31, 2019 Cost gains losses fair value Corporate bonds, notes and commercial paper 4,340,079 — (38) 4,340,041 $ 4,340,079 $ — $ (38) $ 4,340,041 Gross Gross unrealized unrealized Amortized holding holding Aggregate December 31, 2018 Cost gains losses fair value Government treasury bills $ 897,481 $ — $ (100) $ 897,381 Corporate bonds, notes and commercial paper 6,276,519 — (879) 6,275,656 $ 7,174,000 $ — $ (979) $ 7,173,037
Schedule of maturities of debt securities classified as available-for-sale securities	Maturities of debt securities classified as available-for-sale securities at December 31, 2019 are as follows: Amortized Aggregate Cost fair value Due within one year $ 4,340,079 $ 4,340,041 $ 4,340,079 $ 4,340,041

Loan and Security Agreement (Ta

Loan and Security Agreement (Tables)	12 Months Ended
	Dec. 31, 2019
Loan and Security Agreement
Schedule of maturities of long-term debt	Amount Years Ending December 31, (in thousands) 2020 3,333 2021 3,334 Thereafter — $ 6,667
Schedule of reconciliation of cash, cash equivalents, and restricted cash	The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheet that sum to the total of the same such amounts shown in the statement of cash flows. December 31, 2019 Cash and cash equivalents $ 9,728,523 Restricted cash 5,000,000 Cash, cash equivalents, and retricted cash shown in the statement of cash flows $ 14,728,523

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2019
Property and Equipment
Schedule of Property and equipment	Property and equipment consisted of the following: December 31, December 31, 2019 2018 Computer equipment and software $ 43,361 $ Lab and office equipment 1,048,932 1,048,932 Furniture and fixtures 51,404 51,404 1,143,697 1,143,697 Less accumulated depreciation (1,140,143) (1,124,700) $ 3,554 $ 18,997

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Taxes
Schedule of Income tax expense	Income tax expense consists of: December 31, 2019 2018 U.S. federal $ — $ — State and local 200 700 Deferred — — Total $ 200 $ 700
Schedule of pretax income from continuing operations	Income tax expense was $200 and $700, respectively, for the years ended December 31, 2019 and 2018 and differed from the amounts computed by applying the U.S. federal income tax rate of 21% for 2019 and 2018, respectively, to pretax income from continuing operations as a result of the following: December 31, 2019 2018 Computed "expected" tax expense (benefit) $ (2,731,500) $ (2,448,457) Increase (reduction) in income taxes resulting from: Change in valuation allowance 3,037,041 2,671,563 State and local income taxes, net of federal income tax benefit 158 553 Stock expense 114,458 136,903 Research and development tax credits (357,561) (266,163) Orphan drug tax credit (14,357) (95,822) Other, net (48,039) 2,123 $ 200 $ 700
Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities	The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are presented below. December 31, 2019 2018 Deferred tax assets: Stock-based compensation $ 1,637,731 $ 1,540,215 Net operating loss carryforwards 30,574,751 27,397,503 Employee benefits 48,423 48,294 Research and development tax credits 3,833,189 3,362,473 Orphan drug tax credits 1,162,757 1,144,583 Plant and equipment 1,782 234 Other deductible tempory differences 5,806 378 Total gross deferred tax assets 37,264,439 33,493,680 Less valuation allowance (37,264,439) (33,493,680) Net deferred tax assets $ — $ —
Schedule of reconciliation of the beginning and ending amount of total unrecognized tax contingencies, excluding interest and penalties	A reconciliation of the beginning and ending amount of total unrecognized tax contingencies, excluding interest and penalties, for the years ended December 31, 2019 and 2018 are as follows: December 31, 2019 2018 Balance, beginning of year $ — $ — Balance, end of year $ — $ —

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2019
Leases
Schedule of future minimum rental payments for operating leases	Future minimum lease payments under non-cancelable operating leases as of December 31, 2019 are: Operating leases Year ending December 31: 2020 55,064 Total minimum lease payments $ 55,064

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2019
Stockholders' Equity
Summary of stock option activity	A summary of stock option activity is as follows: Outstanding stock options Number of Weighted average shares exercise price Balance at December 31, 2018 2,424,617 $ 5.00 Options granted 79,000 1.84 Options exercised (20,000) 2.81 Options forfeited (21,221) 2.17 Options cancelled (151,911) 6.93 Balance at December 31, 2019 2,310,485 4.81 Options exercisable at December 31, 2019 1,910,323 5.39
Schedule of share-based compensation of stock options outstanding and exercisable	The following table summarizes information about stock options outstanding and exercisable at December 31, 2019: Options outstanding Options exercisable Weighted Weighted average average remaining Weighted remaining Weighted contractual average contractual average Aggregate Number life exercise Aggregate intrinsic Number life exercise intrinsic outstanding (Years) price value exerciseable (Years) price value 2,310,485 6.04 $ 4.81 $ — 1,910,323 5.47 $ 5.39 $ —
Schedule of nonvested restricted stock units activity	A summary of restricted stock unit activity is as follows: Number of unvested restricted stock units Balance at December 31, 2018 682,124 Granted 280,120 Vested (247,500) Cancelled (53,437) Balance at December 31, 2019 661,307
Schedule of fair value of warrants	November 18, December 31, 2019 2019 Expected life in years 5.00 4.88 Risk-free interest rate 1.63 % 1.69 % Dividend yield — — Volatility 224.47 % 225.93 % Stock price $ 0.41 $ 0.39
Schedule of reconciliation of the warrant liability	The following table is a reconciliation of the warrant liability measured at fair value using level 3 inputs: Warrant Liability Balance at December 31, 2018 $ — Initial fair value of common stock warrants issued in November 2019 Offering 4,827,600 Change in fair value of common stock warrants during 2019 (236,400) Balance at December 31, 2019 $ 4,591,200
Schedule of number of warrants outstanding and the weighted average exercise price	The following table summarizes the number of warrants outstanding and the weighted average exercise price: Weighted Weighted Average Average Remaining Exercise Contractual Aggregate Warrants Price Life Intrinsic Value Outstanding at December 31, 2018 — $ — — $ — Issued 12,000,000 0.50 5.00 — Exercised — — — — Expired — — — — Cancelled — — — — Forfeited — — — — Balance at December 31, 2019 12,000,000 $ 0.50 4.88 $ —

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Allocated Share-based Compensation Expense	$ 1,035,834	$ 1,457,720
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	3,800,000	2,700,000
Research and Development Expense [Member]
Allocated Share-based Compensation Expense	419,801	587,437
General and Administrative Expense [Member]
Allocated Share-based Compensation Expense	$ 616,033	$ 870,283

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Summary of Significant Accounting Policies
Expected term	5 years 8 months 1 day	5 years 9 months 11 days
Risk-free interest rate	1.82%	2.80%
Expected volatility	80.38%	83.56%

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details 2) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Assets:
Marketable Investment Securities	$ 4,340,041	$ 7,173,037
Assets, Fair Value	13,261,290	14,504,042
Warrant liability	4,591,200
Liabilities, Fair Value	17,852,490
Government bonds and notes [Member]
Assets:
Marketable Investment Securities		897,381
Corporate Bonds, Notes and Commercial Paper [Member]
Assets:
Marketable Investment Securities	4,340,041	6,275,656
Government [Member]
Assets:
Marketable Investment Securities		897,381
Level 1 inputs [Member]
Assets:
Assets, Fair Value	6,575,862	5,732,814
Warrant liability	0
Liabilities, Fair Value	6,575,862
Level 1 inputs [Member] | Corporate Bonds, Notes and Commercial Paper [Member]
Assets:
Marketable Investment Securities	0	0
Level 1 inputs [Member] | Government [Member]
Assets:
Marketable Investment Securities		897,381
Level 2 inputs [Member]
Assets:
Assets, Fair Value	6,685,428	8,771,228
Warrant liability	0
Liabilities, Fair Value	6,685,428
Level 2 inputs [Member] | Corporate Bonds, Notes and Commercial Paper [Member]
Assets:
Marketable Investment Securities	4,340,041	6,275,656
Level 2 inputs [Member] | Government [Member]
Assets:
Marketable Investment Securities		0
Level 3 inputs [Member]
Assets:
Assets, Fair Value	0	0
Warrant liability	4,591,200
Liabilities, Fair Value	4,591,200
Level 3 inputs [Member] | Corporate Bonds, Notes and Commercial Paper [Member]
Assets:
Marketable Investment Securities	0	0
Level 3 inputs [Member] | Government [Member]
Assets:
Marketable Investment Securities		0
Money Market Funds And Corporate Bonds [Member]
Assets:
Cash equivalents - money market funds	8,921,249	7,331,005
Money Market Funds And Corporate Bonds [Member] | Level 1 inputs [Member]
Assets:
Cash equivalents - money market funds	6,575,862	4,835,433
Money Market Funds And Corporate Bonds [Member] | Level 2 inputs [Member]
Assets:
Cash equivalents - money market funds	2,345,387	2,495,572
Money Market Funds And Corporate Bonds [Member] | Level 3 inputs [Member]
Assets:
Cash equivalents - money market funds	$ 0	$ 0

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Basic loss per share attributable to common stock: Numerator
Net loss	$ (13,007,344)	$ (11,660,022)
Denominator
Weighted avg. common shares outstanding	25,882,273	21,352,339
Basic loss per share attributable to common stock (in dollars per share)	$ (0.50)	$ (0.55)
Diluted loss per share attributable to common stock: Numerator
Net loss	$ (13,007,344)	$ (11,660,022)
Denominator
Weighted avg. common shares outstanding	25,882,273	21,352,339
Diluted loss per share attributable to common stock (in dollars per share)	$ (0.50)	$ (0.55)

Summary of Significant Accoun_8

Summary of Significant Accounting Policies (Details 4) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Unvested Restricted Stock Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	12,000,000	0
Unvested Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	661,307	682,124
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,310,485	2,424,617

Summary of Significant Accoun_9

Summary of Significant Accounting Policies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Allocated Share-based Compensation Expense	$ 1,035,834	$ 1,457,720
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 507,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 5 months 27 days
Cash Equivalents, at Carrying Value	$ 9,700,000	$ 8,100,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 1.25	$ 1.01
Expected volatility	80.38%	83.56%
Risk-free interest rate	1.82%	2.80%
Expected term	5 years 8 months 1 day	5 years 9 months 11 days
Warrant liability [Member]
Expected volatility	225.93%
Risk-free interest rate	1.69%
Strike price	$ 0.50
Fair value of common stock	$ 0.385
Expected term	4 years 10 months 24 days
Office Equipment [Member]
Property, Plant and Equipment, Useful Life	5 years
Computer Equipment and Software [Member]
Property, Plant and Equipment, Useful Life	3 years
Furniture and Fixtures [Member]
Property, Plant and Equipment, Useful Life	7 years
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	79,000	423,000
Restricted Stock Units (RSUs) [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	280,120	540,000
Unvested Restricted Stock Units [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 958,000

Marketable Investment Securit_3

Marketable Investment Securities (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 4,340,079	$ 7,174,000
Gross unrealized holding gains	0	0
Gross unrealized holding losses	(38)	(979)
Aggregate fair value	4,340,041	7,173,037
Government bonds and notes [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		897,481
Gross unrealized holding gains		0
Gross unrealized holding losses		(100)
Aggregate fair value		897,381
Corporate Bonds, Notes and Commercial Paper [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	4,340,079	6,276,519
Gross unrealized holding gains	0	0
Gross unrealized holding losses	(38)	(879)
Aggregate fair value	$ 4,340,041	$ 6,275,656

Marketable Investment Securit_4

Marketable Investment Securities - Maturities of debt securities (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Amortized Cost
Due within one year	$ 4,340,079
Amortized Cost, Total	4,340,079	$ 7,174,000
Aggregate fair value
Due within one year	4,340,041
Aggregate fair value, Total	$ 4,340,041	$ 7,173,037

Marketable Investment Securit_5

Marketable Investment Securities (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Marketable Investment Securities
Proceeds from Sale and Maturity of Marketable Securities	$ 19,800,000	$ 36,800,000
Available-for-sale Securities, Gross Realized Gain (Loss)	0	0
Other-than-temporary impairments	$ 0	$ 0

Contractual Agreements (Details

Contractual Agreements (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Contract Research And Development [Member]
Schedule of Contractual Agreements [Line Items]
Other Research and Development Expense	$ 5.4	$ 4.1
Abbott Products, Inc. [Member] | Collaborative Arrangement [Member]
Schedule of Contractual Agreements [Line Items]
Collaborative Arrangement, Royalties, Maximum Amount	$ 1
Collaborative Arrangement, Royalties, Percentage of Reduction	50.00%
Collaborative Arrangement, Royalties, Percentage of Net Sales	1.00%

Loan and Security Agreement - F

Loan and Security Agreement - Future maturities of principal payments (Details) $ in Thousands	Dec. 31, 2019USD ($)
Loan and Security Agreement
2020	$ 3,333
2021	3,334
Thereafter	0
Long-term Debt	$ 6,667

Loan and Security Agreement - R

Loan and Security Agreement - Reconciliation of cash, cash equivalents, and restricted cash (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loan and Security Agreement
Cash and cash equivalents	$ 9,728,523	$ 8,077,539
Restricted cash	5,000,000	5,000,000
Cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 14,728,523	$ 13,077,539	$ 3,210,749

Loan and Security Agreement (De

Loan and Security Agreement (Details Textual) - Loan and Security Agreement - Silicon Valley Bank - USD ($)	Jan. 05, 2018	Dec. 31, 2019	May 31, 2018
Debt Instrument, Face Amount	$ 10,000,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate		6.00%
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid	$ 650,000
Amount of increase in the principal balance		$ 481,000
Cash Collateral for Borrowed Securities			$ 5,000,000
Debt Instrument Basis Spread On Interest Rate On Debt Default	5.00%
Debt Instrument, Minimum Amount considered for Insolvency		$ 100,000

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Property and Equipment
Computer equipment and software	$ 43,361	$ 43,361
Lab and office equipment	1,048,932	1,048,932
Furniture and fixtures	51,404	51,404
Property, Plant and Equipment, Gross	1,143,697	1,143,697
Less accumulated depreciation	(1,140,143)	(1,124,700)
Property, Plant and Equipment, Net, Total	$ 3,554	$ 18,997

Property and Equipment (Detai_2

Property and Equipment (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Property and Equipment
Depreciation, Depletion and Amortization, Nonproduction	$ 15,443	$ 18,595

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
U.S. federal	$ 0	$ 0
State and local	200	700
Deferred	0	0
Income Tax Expense (Benefit), Total	$ 200	$ 700

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Computed "expected" tax expense (benefit)	$ (2,731,500)	$ (2,448,457)
Increase (reduction) in income taxes resulting from:
Change in valuation allowance	3,037,041	2,671,563
State and local income taxes, net of federal income tax benefit	158	553
Stock expense	114,458	136,903
Research and development tax credits	(357,561)	(266,163)
Orphan drug tax credit	(14,357)	(95,822)
Other, net	(48,039)	2,123
Income Tax Expense (Benefit), Total	$ 200	$ 700

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Stock-based compensation	$ 1,637,731	$ 1,540,215
Net operating loss carryforwards	30,574,751	27,397,503
Employee benefits	48,423	48,294
Research and development tax credits	3,833,189	3,362,473
Orphan drug tax credits	1,162,757	1,144,583
Plant and equipment	1,782	234
Other deductible temporary differences	5,806	378
Total gross deferred tax assets	37,264,439	33,493,680
Less valuation allowance	(37,264,439)	$ (33,493,680)
Net deferred tax assets	$ 0

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Balance, beginning of year	$ 0	$ 0
Balance, end of year	$ 0	$ 0

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Taxes [Line Items]
Income Tax Expense (Benefit)	$ 200	$ 700
Operating Loss Carryforwards	$ 118,900,000	$ 1,200,000
Operating Loss Carry forwards Expiration Date1	Approximately $20.2 million of the NOL will expire between 2023 and 2033 and $76.4 million of the NOL will expire 2034 through 2037. Pursuant to the Tax Cuts and Jobs Act of 2017, NOL's generated in 2018 and subsequent years have an unlimited carryforward therefore the 2019 and 2018 NOL of $22.3 million can be carried forward indefinitely. The research and development credits will begin to expire in 2033 through 2038.
Tax Credit Carryforward, Amount	$ 2,700,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
Deferred Tax Assets, Valuation Allowance	$ 37,264,439	$ 33,493,680
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	3,800,000	$ 2,700,000
Operating Loss Carry forwards Limitations On Use Amount	1,100,000
Operating Loss Carry forwards Pre-ownership Change Amount	20,200,000
Operating Loss Forgive Pre-ownership Change Amount	5,500,000
Tax Credit Carryforward Pre-ownership Change Amount	$ 1,200,000
U.S. Federal [Member] | Research and Development Expense [Member]
Income Taxes [Line Items]
Tax Credit Carryforward, Description	expire in 2033 through 2038.
State And Local [Member]
Income Taxes [Line Items]
Operating Loss Carryforwards	$ 112,200,000
Operating Loss Carry forwards Expiration Date1	Approximately $572,000 of the Company's state NOL expires in 2020, $37.0 million expires between 2021 and 2029, and $74.6 million will expire in 2030 through 2033. The state research and development credits expire in 2023 through 2033.
State And Local [Member] | Research and Development Expense [Member]
Income Taxes [Line Items]
Tax Credit Carryforward, Amount	$ 1,200,000
Tax Credit Carryforward, Description	expire in 2023 through 2033.
Domestic Tax Authority [Member]
Income Taxes [Line Items]
Operating loss carry forwards non expire date	Pursuant to the Tax Cuts and Jobs Act of 2017, NOL's generated in 2018 and subsequent years have an unlimited carryforward therefore the 2019 and 2018 NOL of $22.3 million can be carried forward indefinitely.

Leases (Details)

Leases (Details)	Dec. 31, 2019USD ($)
Year ending December 31:
2020	$ 55,064
Total minimum lease payments	$ 55,064

Leases (Details Textual)

Leases (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Leases
Operating Leases, Rent Expense	$ 329,000	$ 323,000

Stockholders' Equity - Stock op

Stockholders' Equity - Stock option activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, Options exercised (in shares)	(20,000)	0
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, Balance at beginning of the period (in shares)	2,424,617
Number of shares, Options granted (in shares)	79,000	423,000
Number of shares, Options exercised (in shares)	(20,000)
Number of shares, Options forfeited (in shares)	(21,221)
Number of shares, Options cancelled (in shares)	(151,911)
Number of shares, Balance at end of the period (in shares)	2,310,485	2,424,617
Number of shares, Options exercisable (in shares)	1,910,323
Weighted average exercise price, Balance at beginning of the period (in dollars per share)	$ 5
Weighted average exercise price, Options granted (in dollars per share)	1.84
Weighted average exercise price, Options exercised (in dollars per share)	2.81
Weighted average exercise price, Options forfeited (in dollars per share)	2.17
Weighted average exercise price, Options cancelled (in dollars per share)	6.93
Weighted average exercise price, Balance at end of the period (in dollars per share)	4.81	$ 5
Weighted average exercise price, Options exercisable (in dollars per share)	$ 5.39

Stockholders' Equity - Stock _2

Stockholders' Equity - Stock options outstanding and exercisable (Details) - Employee Stock Option [Member] - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding	2,310,485	2,424,617
Options outstanding, Weighted average remaining contractual life (Years)	6 years 15 days
Options outstanding, Weighted average exercise price (in dollars per share)	$ 4.81	$ 5
Number of options exercisable	1,910,323
Options exercisable, Weighted average remaining contractual life (Years)	5 years 5 months 19 days
Options exercisable, Weighted average exercise price (in dollars per share)	$ 5.39
Options exercisable, Aggregate intrinsic value	$ 0

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted stock units (Details)	12 Months Ended
	Dec. 31, 2019shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, Balance at end of the period	12,000,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, Balance at beginning of the period	682,124
Number of shares, Granted	280,120
Number of shares, Vested	(247,500)
Number of shares, Cancelled	(53,437)
Number of shares, Balance at end of the period	661,307

Stockholders' Equity - Black-Sc

Stockholders' Equity - Black-Scholes option pricing model (Details) - $ / shares	Nov. 18, 2019	Dec. 31, 2019	Dec. 31, 2018
Expected term		5 years 8 months 1 day	5 years 9 months 11 days
Risk-free interest rate		1.82%	2.80%
Volatility		80.38%	83.56%
Level 3 inputs [Member] | Warrant liability [Member] | November 2019
Expected term	5 years	4 years 10 months 17 days
Risk-free interest rate	1.63%	1.69%
Volatility	224.47%	225.93%
Stock price	$ 0.41	$ 0.39

Stockholders' Equity - Reconcil

Stockholders' Equity - Reconciliation of warrant liability (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Stockholders' Equity
Initial fair value of common stock warrants issued in November 2019 Offering	$ 4,827,600	$ 0
Change in fair value of common stock warrants during 2019	(236,400)
Warrant liability, Ending balance	$ 4,591,200

Stockholders' Equity - Warrants

Stockholders' Equity - Warrants (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Number of shares, Balance at beginning of the period	12,000,000
Number of shares, Balance at end of the period		12,000,000
Warrant liability [Member]
Number of shares, Balance at beginning of the period
Issued		12,000,000
Number of shares, Balance at end of the period	12,000,000
Weighted Average Exercise Price, Beginning of the period
Issued		$ 0.50
Weighted Average Exercise Price, Ending of the period	$ 0.50
Weighted Average Remaining Contractual Life	4 years 10 months 17 days
Issued		5 years

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($)	Feb. 27, 2020	Feb. 07, 2020	Nov. 18, 2019	Nov. 13, 2015	Dec. 31, 2019	Dec. 31, 2018	Oct. 13, 2017	Mar. 31, 2017	Jun. 30, 2016	Apr. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period					20,000	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value					$ 1,000	$ 0
Stock Issued During Period, Shares, New Issues						466,947
Proceeds from Issuance of Common Stock					$ 8,000,411	$ 652,334
Class of Warrant or Right, Redemption Price of Warrants or Rights				$ 63.96	$ 0.001
Controlled Equity Offering Sales Agreement Maximum Amount Authorized								$ 20,000,000
Stock Issued During Period, Shares, New Issues						466,947
Shares Issued, Price Per Share						$ 1.45
Warrants exercise price			$ 0.50
Common Stock Preferred Stock Debt Securities Warrants And Units To Be Sold Amount Maximum							$ 150,000,000
Common Stock Additional Amount Authorized							$ 25,000,000
Equity Method Investment, Ownership Percentage				15.00%
Allocated Share-based Compensation Expense					$ 1,035,834	$ 1,457,720
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition					1 year 5 months 27 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized					$ 507,000
Warrants outstanding					12,000,000
Fair Value Adjustment of Warrants					$ 236,400
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period					20,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					79,000	423,000
Accredited Investors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues					3,650,479
Proceeds from Issuance of Common Stock					$ 8,000,000
Stock Issued During Period, Shares, New Issues					3,650,479
Shares Issued, Price Per Share					$ 2.26
Stock Issued During Period, Value, New Issues					$ 8,200,000
ATM
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues					6,635,535
Proceeds from Issuance of Common Stock, Gross					$ 20,000,000	$ 678,000
Proceeds from Issuance of Common Stock					$ 19,300,000	652,000
Stock Issued During Period, Shares, New Issues					6,635,535
Shares Issued, Price Per Share					$ 3.02
Stock Issued During Period, Value, New Issues					$ 8,000,411	$ 652,334
February 2020 Offering | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Issuance of Common Stock, Gross	$ 6,000,000
Agent fees and other offering expenses	$ 375,000
November 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Issuance of Common Stock, Gross			$ 6,000,000
Agent fees and other offering expenses			$ 404,000
Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized					3,221,906
2014 Equity Incentive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized										1,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant					662,263
2011 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant										271,906
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross					280,120	540,000
Class A unit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issued, Price Per Share			$ 0.50
Class A unit [Member] | February 2020 Offering | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues		10,084,034
Stock Issued During Period, Shares, New Issues		10,084,034
Shares Issued, Price Per Share	$ 0.595
Class A unit [Member] | November 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues			10,450,000
Stock Issued During Period, Shares, New Issues			10,450,000
Class B unit [Member] | November 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues			1,550,000
Stock Issued During Period, Shares, New Issues			1,550,000
Shares Issued, Price Per Share			$ 0.4999
Common Stock [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issued, Price Per Share	$ 0.53
Common Stock [Member] | November 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Value, New Issues			$ 768,000
Additional Paid-in Capital [Member] | November 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Value, New Issues			$ 4,800,000
Pre Funded Warrants [Member] | November 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issued, Price Per Share			$ 0.0001
Maximum [Member] | 2014 Equity Incentive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized					3,221,906				2,471,906
Minimum [Member] | 2014 Equity Incentive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized					2,471,906				1,271,906

401(k) Plan (Details Textual)

401(k) Plan (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
401(k) Plan
Defined Contribution Plan, Cost	$ 63,000	$ 84,000
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	100.00%

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	Nov. 04, 2019	Dec. 31, 2018	Dec. 31, 2017
Commitments and Contingencies
Estimated Litigation Liability, Current		$ 0	$ 4,300,000
Insurance Settlements Receivable, Current		$ 0	$ 3,300,000
Retention Payable	$ 1,250,000

Agreement with Spriaso, LLC (De

Agreement with Spriaso, LLC (Details) - USD ($)	Jul. 23, 2013	Dec. 31, 2019	Dec. 31, 2018	Jan. 23, 2015
Agreement with Spriaso, LLC
Percentage Of Fee To Be Received	20.00%
Maximum Proceeds From Affiliates Under License Agreement	$ 10,000,000
Maximum percentage of service agreement by employees	10.00%
Service period of employees	18 months
Service Fee				$ 230
Proceeds From Reimbursement		$ 0	$ 5,000
Proceeds from License Fees Received		$ 165,000	$ 428,000