Lipocine (LPCN) 10-Q 7 May 15 2015 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2015	7-May-15
Document Information [Line Items]
Entity Registrant Name	Lipocine Inc.
Entity Central Index Key	1535955
Current Fiscal Year End Date	-19
Entity Filer Category	Smaller Reporting Company
Trading Symbol	LPCN
Entity Common Stock, Shares Outstanding		18,205,855
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$24,764,456	$27,666,055
Prepaid and other current assets	186,462	229,912
Total current assets	24,950,918	27,895,967
Property and equipment, net of accumulated depreciation of $1,038,332 and $1,034,029, respectively	82,709	73,782
Other assets	23,753	23,753
Total assets	25,057,380	27,993,502
Current liabilities:
Accounts payable	379,528	306,276
Accrued expenses	957,777	1,327,256
Total current liabilities	1,337,305	1,633,532
Total liabilities	1,337,305	1,633,532
Commitments and contingencies (notes 6 and 8)
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; 12,850,090 and 12,800,382 issued and 12,844,380 and 12,794,672 outstanding	1,285	1,280
Additional paid-in capital	94,952,385	94,636,479
Treasury stock at cost, 5,710 shares	-40,712	-40,712
Accumulated deficit	-71,192,883	-68,237,077
Total stockholders' equity	23,720,075	26,359,970
Total liabilities and stockholders' equity	$25,057,380	$27,993,502

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment (in dollars)	$1,038,332	$1,034,029
Preferred stock, par value (in dollars per share)	$0.00	$0.00
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)	$0.00	$0.00
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	12,850,090	12,800,382
Common stock, shares outstanding	12,844,380	12,794,672
Treasury Stock, Shares	5,710	5,710

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations and Comprehensive Loss (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating expenses:
Research and development	$1,918,695	$3,368,999
General and administrative	1,055,544	1,923,623
Total operating expenses	2,974,239	5,292,622
Operating loss	-2,974,239	-5,292,622
Other income, net	18,633	25,466
Loss before income tax expense	-2,955,606	-5,267,156
Income tax expense	-200	0
Net loss	-2,955,806	-5,267,156
Basic loss per share attributable to common stock (in dollars per share)	($0.23)	($0.41)
Weighted average common shares outstanding, basic (in shares)	12,819,332	12,728,086
Diluted loss per share attributable to common stock (in dollars per share)	($0.23)	($0.41)
Weighted average common shares outstanding, diluted (in shares)	12,819,332	12,728,086
Comprehensive loss	($2,955,806)	($5,267,156)

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss	($2,955,806)	($5,267,156)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	4,303	3,029
Stock-based compensation expense	179,042	1,045,387
Changes in operating assets and liabilities:
Prepaid and other current assets	43,450	513,636
Accounts payable	73,252	17,155
Accrued expenses	-369,479	470,295
Cash used in operating activities	-3,025,238	-3,217,654
Cash flows from investing activities:
Purchases of property and equipment	-13,230	-1,866
Cash used in investing activities	-13,230	-1,866
Cash flows from financing activities:
Proceeds from stock option exercises	136,869	0
Payment of accrued common stock offering costs	0	-271,183
Cash provided by (used in) financing activities	136,869	-271,183
Net decrease in cash and cash equivalents	-2,901,599	-3,490,703
Cash and cash equivalents at beginning of period	27,666,055	45,263,698
Cash and cash equivalents at end of period	$24,764,456	$41,772,995

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Business Description and Basis of Presentation [Text Block]		-1	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements included herein have been prepared by Lipocine Inc. (“Lipocine” or the “Company”) in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements are comprised of the financial statements of Lipocine and its subsidiaries collectively referred to as the Company. In management's opinion, the interim financial data presented includes all adjustments (consisting solely of normal recurring items) necessary for fair presentation. All intercompany accounts and transactions have been eliminated. Certain information required by U.S. generally accepted accounting principles has been condensed or omitted in accordance with rules and regulations of the SEC. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2015.
	These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and the notes thereto for the year ended December 31, 2014.
	The preparation of the unaudited condensed consolidated financial statements requires management to make estimates and assumptions relating to reporting of the assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period in conformity with U.S. generally accepted accounting principles. Actual results could differ from these estimates.
	While preparing its 2014 financial statements, the Company identified a misclassification of payments in the statement of cash flows for the three months ended March 31, 2014. The misclassification resulted in an overstatement of cash used in operating activities and an understatement of cash used in financing activities of $271,000 but did not affect total operating expenses, operating loss, net loss or stockholders’ equity of the Company. The misclassification has been corrected in the March 31, 2014 amounts presented in the statements of cash flows.

Earnings_Loss_per_Share

Earnings (Loss) per Share	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]		-2	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. Net income (loss) available to common shareholders for the three months ended March 31, 2015 and 2014 was calculated using the two-class method, which is an earnings (loss) allocation method for computing earnings (loss) per share when an entity’s capital structure includes common stock and participating securities. The two-class method determines earnings (losses) per share based on dividends declared on common stock and participating securities (i.e., distributed earnings) and participation rights of participating securities in any undistributed earnings (loss). The application of the two-class method was required since the Company’s unvested restricted stock contains non-forfeitable rights to dividends or dividend equivalents. However, unvested restricted stock grants are not included in computing basic earnings (loss) per share for periods where the Company has losses as these securities are not contractually obligated to share in losses of the Company.
	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, unvested restricted stock units and unvested restricted stock 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 three months ended March 31, 2015 and 2014.
			Three Months Ended March 31,
			2015		2014
	Basic loss per share attributable to common stock:
	Numerator
	Net loss		$	-2,955,806	$	-5,267,156
	Denominator
	Weighted avg. common shares outstanding			12,819,332		12,728,086
	Basic loss per share attributable to common stock		$	-0.23	$	-0.41
	Diluted loss per share attributable to common stock:
	Numerator
	Net loss		$	-2,955,806	$	-5,267,156
	Denominator
	Weighted avg. common shares outstanding			12,819,332		12,728,086
	Diluted loss per share attributable to common stock		$	-0.23	$	-0.41
	The computation of diluted loss per share for the three months ended March 31, 2015 and 2014 does not include the following stock options, unvested restricted stock, unvested restricted stock units and warrants to purchase shares in the computation of diluted loss per share because these instruments were antidilutive:
				March 31,
				2015		2014
	Stock options			1,480,029		1,294,733
	Unvested restricted stock			6,000		12,000
	Unvested restricted stock units			-		15,000
	Warrants			20,467		20,467

Fair_Value

Fair Value	3 Months Ended
	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]		-3	Fair Value
	For prepaid and other current assets, accounts payable, and accrued expenses, the carrying amounts approximate fair value because of the short maturity of these instruments. At March 31, 2015 and December 31, 2014, the Company did not have any assets and liabilities that were measured at fair value on a recurring basis using quoted prices in active markets for identical instruments (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).
	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 between levels for the three months ended March 31, 2015 and 2014.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]		-4	Income Taxes
	The tax provision for interim periods is determined using an estimate of the Company’s effective tax rate for the full year adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the Company updates its estimate of the annual effective tax rate, and if the estimated tax rate changes, the Company makes a cumulative adjustment.
	At March 31, 2015 and December 31, 2014, the Company had a full valuation allowance against its deferred tax assets, net of expected reversals of existing deferred tax liabilities, as it believes it is more likely than not that these benefits will not be realized.

Collaborative_Agreements

Collaborative Agreements	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaborative Arrangement Disclosure [Text Block]		-5	Collaborative 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.). 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 1.5% royalty on net sales should Lipocine decide to use certain Solvay/Abbott formulations or a perpetual 1% royalty on net sales should Lipocine use data generated during the term of the Solvay/Abbott agreement in any regulatory filings for a product.   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 three months ended March 31, 2015 and 2014.
		(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 $1.4 million and $2.7 million for the three months ended March 31, 2015 and 2014 under these agreements and has recorded these expenses in research and development expenses.

Leases

Leases	3 Months Ended
	Mar. 31, 2015
Leases [Abstract]
Leases of Lessee Disclosure [Text Block]		-6	Leases
	On August 6, 2004, the Company assumed a noncancelable operating lease for office space and laboratory facilities. On May 6, 2014, the Company modified and extended the lease through February 28, 2018. Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) as of March 31, 2015 are:
			Operating
			leases
	Year ending December 31:
	2015			214,497
	2016			294,373
	2017			303,119
	2018			51,903
	Total minimum lease payments		$	863,892
	The Company’s rent expense was $73,000 and $100,000 for the three months ended March 31, 2015 and 2014.

Stockholders_Equity

Stockholders' Equity

3 Months Ended

Mar. 31, 2015

Stockholders Equity Note [Abstract]

Stockholders Equity Note Disclosure [Text Block]

-7

Stockholders’ Equity

(a)

Share-Based Payments

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 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 grants performance-based stock option awards and restricted stock grants, 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 will vest, which is based on whether the Company considers the options’ performance conditions to be probable of attainment. The Company’s estimates of the number of performance-based options that will vest will be revised, if necessary, in subsequent periods. In addition, the Company grants stock options to nonemployee consultants from time to time in exchange for services performed for the Company. Equity instruments granted to nonemployees are subject to periodic measurement revaluation over their vesting terms.

During November 2014, the Company modified 149,498 existing time-vested options of two terminated executives by extending the exercise period to three years from the date of modification under the terms of the executive's respective employment and severance agreements. Compensation expense of $166,000 was recorded as a result of the modification.On January 6, 2014, the Company modified 366,126 existing time-vested and performance options as well as restricted stock awards of two retiring board of directors by fully vesting all unvested equity awards and extending the exercise period to three years from the date of modification. Compensation expense of $836,000 was recorded as a result of the modification. Additionally on January 31, 2013, the Company modified 907,336 existing time-vested and performance stock options by lowering the exercise price to $2.81. Additionally, the Company modified the vesting terms for its unvested performance stock options and unvested restricted stock to vest on the earlier of the first dosing in the pivotal clinical study for its lead drug candidate, or 50% on January 31, 2014 and 50% on January 31, 2015. Compensation expense of $422,000 was recorded as a result of the modifications. In August 2013, the Company determined that it was probable that the performance milestone related to these unvested stock options and restricted stock awards would occur. As a result, the remaining compensation expense between the date the milestone became probable and the expected milestone date of February 2014 was recognized ratably over that period.

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 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 $179,000 and $1.0 million for the three months ended March 31, 2015 and 2014, allocated as follows:

Three Months Ended

March 31,

2015

2014

Research and development

$

66,962

$

215,415

General and administrative

112,080

829,972

$

179,042

$

1,045,387

The Company did not issue any stock options during the three months ended March 31, 2015, and the Company issued 31,500 stock options during the three months ended March 31, 2014.

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 does not have sufficient trading history, the volatility factor was based on a combination of the Company's volatility since being listed on the NASDAQ Capital Market and the average of eleven similar public companies. When selecting similar companies, the Company considered the industry, stage of life cycle, size, and financial leverage.

For options granted during the three months ended March 31, 2014, the Company calculated the fair value of each option grant on the respective dates of grant using the following weighted average assumptions:

2015

Expected term

6.00 years

Risk-free interest rate

2.03

%

Expected dividend yield

—

Expected volatility

70

%

FASB 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 March 31, 2015, there was $1.5 million 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 2.19 years and will be adjusted for subsequent changes in estimated forfeitures. There were no share-based compensation awards granted during the three months ended March 31, 2015. The weighted average fair value of share-based compensation awards granted during the three months ended March 31, 2014, was approximately $5.21.

(b)

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") are issuable under the 2014 Plan. In January 2011, the board of directors adopted the 2011 Plan that provides for the granting of nonqualified and incentive stock options, restricted stock units and restricted stock. The 2011 Plan assumed all of the obligations, which existed under the previous 2000 Stock Option Plan. Under the 2011 Plan, the Company has granted nonqualified and incentive stock options for the purchase of common stock to directors, employees and nonemployees providing services to the Company. 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 1,271,906 shares are authorized for issuance under the 2014 Plan, with 1,020,076 shares remaining available for grant as of March 31, 2015.

A summary of stock option activity is as follows:

Outstanding stock options

Number of

Weighted average

shares

exercise price

Balance at December 31, 2014

1,528,737

$

4.2

Options granted

-

-

Options exercised

-48,708

2.81

Options forfeited

-

-

Options cancelled

-

-

Balance at March 31, 2015

1,480,029

4.24

Options exercisable at March 31, 2015

1,121,966

3.21

The following table summarizes information about stock options outstanding and exercisable at March 31, 2015:

Options outstanding

Options exercisable

Number

Weighted

Weighted

Aggregate intrinsic

Number

Weighted

Weighted

Aggregate

outstanding

average

average

value

exerciseable

average

average

intrinsic

remaining

exercise

remaining

exercise

value

contractual

price

contractual

price

life

life

(Years)

(Years)

1,480,029

6.39

$

4.24

$

4,426,412

1,121,966

5.51

$

3.21

$

4,226,422

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 48,708 stock options exercised during the three months ended March 31, 2015 was $192,000. No stock options were exercised during the three months ended March 31, 2014.

(c)

Restricted Common Stock

In 2010, the Company issued 112,720 shares of restricted common stock to employees. Ten percent of the issued restricted common stock vested on December 31, 2011. The remaining ninety percent of the restricted shares were modified on January 31, 2013 to vest on the earlier of the first dosing in the pivotal clinical study for its lead drug candidate, or 50% on January 31, 2014 and 50% on January 31, 2015. All shares of restricted common stock related to this issuance became fully vested on February 10, 2014.

In September 2013, the Company issued 12,000 shares of restricted common stock to an employee. These shares vest over time with one-third vesting on the one-year anniversary of award, with the balance vesting monthly on a pro-rata basis over the subsequent two years.

Additionally, restricted shares issued to two members of the board of directors were further modified upon their retirement on January 6, 2014 to fully vest unvested restricted shares. Compensation expense was recorded as a result of the modifications (see note 7(a)). The grant date fair value of these shares when issued was $5.75 per share.

The Company includes unvested restricted stock in outstanding shares for financial reporting purposes when the awards vest.

A summary of restricted common stock activity is as follows:

Number of

unvested restricted

shares

Balance at December 31, 2014

7,000

Granted

-

Vested

-1,000

Cancelled

-

Balance at March 31, 2015

6,000

(d)

Restricted Stock Units

On December 10, 2013, the Company issued 15,000 shares of restricted stock units to employees. These units cliff vested on December 31, 2014, and there were no unvested restricted stock units as of March 31, 2015.

(e)

Warrants

For charitable purposes, on December 23, 2003, the Company granted warrants to a local university for 20,467 shares of common stock at a price of $12.21 per share with an original expiration date of December 31, 2010. In January 2011, the Company extended the term to December 31, 2015 at the same price. As of March 31, 2015, all warrants remain outstanding.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]		-8	Commitments and Contingencies
	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.

Spriaso_LLC

Spriaso, LLC	3 Months Ended
	Mar. 31, 2015
Spriaso LLC [Abstract]
Spriaso LLC Disclosure [Text Block]		-9	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, however the agreement may be extended upon written agreement of Spriaso and the Company. 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 Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 810-10, Consolidations, however the Company is not the primary beneficiary and has therefore not consolidated Spriaso.

Accounting_Pronouncements_Not_

Accounting Pronouncements Not Yet Adopted	3 Months Ended
	Mar. 31, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	-10	Accounting Pronouncements Not Yet Adopted
	In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from the Contracts with Customers. Under the new standard, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In order to do so, an entity would follow the five-step process for in-scope transactions: 1) identify the contract with a customer, 2) identify the separate performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the separate performance obligations in the contract, and 5) recognize revenue when (or as) the entity satisfies a performance obligation. For public entities, the provisions of the new standard are effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. An entity can apply the new revenue standard retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings. The Company is in the process of determining our approach to the adoption of this new revenue recognition standard, as well as the anticipated impact to the Company’s financial position or results of operations.
	In August 2014, FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern. ASU 2014-15 provides guidance regarding management’s responsibility to evaluate whether there exists substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. The standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods thereafter. The Company does not believe this pronouncement will have a material effect on the Company's financial position or results of operations.

Subsequent_Event

Subsequent Event	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
Subsequent Events [Text Block]		-11	Subsequent Event
	On April 29, 2015, the Company received approximately $34.8 million in aggregate gross proceeds from the issuance and sale of 5,347,500 shares of common stock in a follow-on offering.

Earnings_Loss_per_Share_Tables

Earnings (Loss) per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
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 three months ended March 31, 2015 and 2014.
		Three Months Ended March 31,
		2015		2014
	Basic loss per share attributable to common stock:
	Numerator
	Net loss	$	-2,955,806	$	-5,267,156
	Denominator
	Weighted avg. common shares outstanding		12,819,332		12,728,086
	Basic loss per share attributable to common stock	$	-0.23	$	-0.41
	Diluted loss per share attributable to common stock:
	Numerator
	Net loss	$	-2,955,806	$	-5,267,156
	Denominator
	Weighted avg. common shares outstanding		12,819,332		12,728,086
	Diluted loss per share attributable to common stock	$	-0.23	$	-0.41
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	The computation of diluted loss per share for the three months ended March 31, 2015 and 2014 does not include the following stock options, unvested restricted stock, unvested restricted stock units and warrants to purchase shares in the computation of diluted loss per share because these instruments were antidilutive:
			March 31,
			2015		2014
	Stock options		1,480,029		1,294,733
	Unvested restricted stock		6,000		12,000
	Unvested restricted stock units		-		15,000
	Warrants		20,467		20,467

Leases_Tables

Leases (Tables)	3 Months Ended
	Mar. 31, 2015
Leases [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) as of March 31, 2015 are:
		Operating
		leases
	Year ending December 31:
	2015		214,497
	2016		294,373
	2017		303,119
	2018		51,903
	Total minimum lease payments	$	863,892

Stockholders_Equity_Tables

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2015
Stockholders Equity Note [Abstract]
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 $179,000 and $1.0 million for the three months ended March 31, 2015 and 2014, allocated as follows:
		Three Months Ended
		March 31,
		2015			2014
	Research and development	$	66,962		$	215,415
	General and administrative		112,080			829,972
		$	179,042		$	1,045,387
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	For options granted during the three months ended March 31, 2014, the Company calculated the fair value of each option grant on the respective dates of grant using the following weighted average assumptions:
		2015
	Expected term	6.00 years
	Risk-free interest rate	2.03	%
	Expected dividend yield	—
	Expected volatility	70	%
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	A summary of stock option activity is as follows:
		Outstanding stock options
		Number of			Weighted average
		shares			exercise price
	Balance at December 31, 2014		1,528,737		$	4.2
	Options granted		-			-
	Options exercised		-48,708			2.81
	Options forfeited		-			-
	Options cancelled		-			-
	Balance at March 31, 2015		1,480,029			4.24
	Options exercisable at March 31, 2015		1,121,966			3.21
Schedule of Share-based Compensation, Activity [Table Text Block]	The following table summarizes information about stock options outstanding and exercisable at March 31, 2015:
	Options outstanding								Options exercisable
	Number	Weighted		Weighted			Aggregate intrinsic		Number	Weighted	Weighted		Aggregate
	outstanding	average		average			value		exerciseable	average	average		intrinsic
		remaining		exercise						remaining	exercise		value
		contractual		price						contractual	price
		life								life
		(Years)								(Years)
	1,480,029	6.39		$	4.24		$	4,426,412	1,121,966	5.51	$	3.21	$	4,226,422
Schedule of Share-based Compensation, Restricted Stock Activity [Table Text Block]	A summary of restricted common stock activity is as follows:
		Number of
		unvested restricted
		shares
	Balance at December 31, 2014	7,000
	Granted	-
	Vested	-1,000
	Cancelled	-
	Balance at March 31, 2015	6,000

Basis_of_Presentation_Details_

Basis of Presentation (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash used in operating activities	($3,025,238)	($3,217,654)
Cash used in financing activities	136,869	-271,183
Overstatement [Member]
Cash used in operating activities		0
Understatement [Member]
Cash used in financing activities		$271,000

Earnings_Loss_per_Share_Detail

Earnings (Loss) per Share (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Basic loss per share attributable to common stock: Numerator
Net loss	($2,955,806)	($5,267,156)
Denominator
Weighted avg. common shares outstanding (in shares)	12,819,332	12,728,086
Basic loss per share attributable to common stock (in dollars per share)	($0.23)	($0.41)
Diluted loss per share attributable to common stock: Numerator
Net loss	($2,955,806)	($5,267,156)
Denominator
Weighted avg. common shares outstanding (in shares)	12,819,332	12,728,086
Diluted loss per share attributable to common stock (in dollars per share)	($0.23)	($0.41)

Earnings_Loss_per_Share_Detail1

Earnings (Loss) per Share (Details 1)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Unvested Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	6,000	12,000
Unvested Resticted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	15,000
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	20,467	20,467
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,480,029	1,294,733

Collaborative_Agreements_Detai

Collaborative Agreements (Details Textual) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Contract Research And Development [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Other Research and Development Expense	$1.40	$2.70
Abbott Products, Inc. [Member] | Collaborative Arrangement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative Arrangement, Termination Date	29-Mar-12
Collaborative Arrangement, Rights and Obligations	All obligations under the prior license agreement have been completed except that Lipocine will owe Abbott a perpetual 1.5% royalty on net sales should Lipocine decide to use certain Solvay/Abbott formulations or a perpetual 1% royalty on net sales should Lipocine use data generated during the term of the Solvay/Abbott agreement in any regulatory filings for a product.
Collaborative Arrangement, Royalties, Maximum Amount	$1
Collaborative Arrangement, Royalties, Percentage of Reduction	50.00%

Leases_Details

Leases (Details) (USD $)	Mar. 31, 2015
Year ending December 31:
2015	$214,497
2016	294,373
2017	303,119
2018	51,903
Total minimum lease payments	$863,892

Leases_Details_Textual

Leases (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense	$73,000	$100,000

Stockholders_Equity_Details

Stockholders' Equity (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$179,042	$1,045,387
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	66,962	215,415
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$112,080	$829,972

Stockholders_Equity_Details_1

Stockholders' Equity (Details 1)	3 Months Ended
	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	6 years
Risk-free interest rate	2.03%
Expected dividend yield	0.00%
Expected volatility	70.00%

Stockholders_Equity_Details_2

Stockholders' Equity (Details 2) (USD $)	3 Months Ended
	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Balance at beginning of the period (in shares)	1,528,737
Number of Shares, Options granted (in shares)	0
Number of Shares, Options exercised (in shares)	-48,708
Number of Shares, Options forfeited (in shares)	0
Number of Shares, Options cancelled (in shares)	0
Number of Shares, Balance at end of the period (in shares)	1,480,029
Number of Shares, Options exercisable (in shares)	1,121,966
Weighted average exercise price, Balance at beginning of the period (in dollars per share)	$4.20
Weighted average exercise price, Options granted (in dollars per share)	$0
Weighted average exercise price, Options exercised (in dollars per share)	$2.81
Weighted average exercise price, Options forfeited (in dollars per share)	$0
Weighted average exercise price, Options cancelled (in dollars per share)	$0
Weighted average exercise price, Balance at end of the period (in dollars per share)	$4.24
Weighted average exercise price, Options exercisable (in dollars per share)	$3.21

Stockholders_Equity_Details_3

Stockholders' Equity (Details 3) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding	1,480,029	1,528,737
Options outstanding, Weighted average remaining contractual life (Years)	6 years 4 months 20 days
Options outstanding, Weighted average exercise price (in dollars per share)	$4.24	$4.20
Options outstanding, Aggregate intrinsic value	$4,426,412
Number of options exerciseable	1,121,966
Options exercisable, Weighted average remaining contractual life (Years)	5 years 6 months 4 days
Options exercisable, Weighted average exercise price (in dollars per share)	$3.21
Options exercisable, Aggregate intrinsic value	$4,226,422

Stockholders_Equity_Details_4

Stockholders' Equity (Details 4) (Restricted Stock [Member])	3 Months Ended
	Mar. 31, 2015
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, Balance at beginning of the period	7,000
Number of shares, Granted	0
Number of shares, Vested	-1,000
Number of shares, Cancelled	0
Number of shares, Balance at end of the period	6,000

Stockholders_Equity_Details_Te

Stockholders' Equity (Details Textual) (USD $)	3 Months Ended		1 Months Ended	0 Months Ended	1 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Apr. 29, 2015	Jan. 06, 2014	Nov. 30, 2014	Jan. 31, 2014	Jan. 31, 2013	Sep. 30, 2013	Dec. 31, 2010	Jun. 30, 2014	Dec. 10, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$179,042	$1,045,387
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total	1,500,000
Share-based Compensation, Total	179,042	1,045,387
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	48,708
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	192,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 2 months 8 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value		$5.21
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues	0	31,500
Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues			5,347,500
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number								12,000
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares				366,126	149,498	907,336
Allocated Share-based Compensation Expense				$836,000	$166,000	$422,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Period Increase (Decrease), Weighted Average Exercise Price							$2.81
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award	the Company modified the vesting terms for its unvested performance stock options and unvested restricted stock to vest on the earlier of the first dosing in the pivotal clinical study for its lead drug candidate, or 50% on January 31, 2014 and 50% on January 31, 2015.
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights									$12.21
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number									20,467
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	1,271,906									1,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	1,020,076
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]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number											15,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Period Increase (Decrease), Weighted Average Exercise Price				$5.75
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number									112,720

Spriaso_LLC_Details_Textual

Spriaso, LLC (Details Textual) (USD $)	1 Months Ended
	Jul. 23, 2013
Related Party Transaction [Line Items]
Percentage Of Fee To Be Received	20.00%
Maximum Proceeds From Affiliates Under License Agreement	$10,000,000
Description Of Terms Of Service Agreement	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
Service Fee	$230

Subsequent_Event_Details_Textu

Subsequent Event (Details Textual) (Subsequent Event [Member], USD $)	1 Months Ended
In Millions, except Share data, unless otherwise specified	Apr. 29, 2015
Subsequent Event [Member]
Subsequent Event [Line Items]
Proceeds from Issuance of Common Stock	$34.80
Stock Issued During Period, Shares, New Issues	5,347,500