Lipocine (LPCN) 10-Q 11 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 10, 2015
Document Information [Line Items]
Entity Registrant Name	Lipocine Inc.
Entity Central Index Key	1,535,955
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	LPCN
Entity Common Stock, Shares Outstanding		18,244,656
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 38,297,243	$ 27,666,055
Marketable investment securities	5,571,535	0
Accrued interest income	99,451	0
Prepaid and other current assets	181,275	229,912
Total current assets	44,149,504	27,895,967
Property and equipment, net of accumulated depreciation of $1,042,746 and $1,034,029, respectively	79,864	73,782
Long-term marketable investment securities	9,543,570	0
Other assets	23,753	23,753
Total assets	53,796,691	27,993,502
Current liabilities:
Accounts payable	398,817	306,276
Accrued expenses	1,266,188	1,327,256
Total current liabilities	1,665,005	1,633,532
Total liabilities	$ 1,665,005	$ 1,633,532
Commitments and contingencies (notes 7 and 9)
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; 18,205,740 and 12,800,382 issued and 18,200,030 and 12,794,672 outstanding	1,820	1,280
Additional paid-in capital	127,619,992	94,636,479
Treasury stock at cost, 5,710 shares	(40,712)	(40,712)
Accumulated other comprehensive loss	(10,085)	0
Accumulated deficit	(75,439,329)	(68,237,077)
Total stockholders' equity	52,131,686	26,359,970
Total liabilities and stockholders' equity	$ 53,796,691	$ 27,993,502

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment (in dollars)	$ 1,042,746	$ 1,034,029
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	18,205,740	12,800,382
Common stock, shares outstanding	18,200,030	12,794,672
Treasury Stock, Shares	5,710	5,710

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating expenses:
Research and development	$ 3,161,908	$ 5,973,829	$ 5,080,603	$ 9,342,829
General and administrative	1,115,835	1,035,733	2,171,379	2,959,356
Total operating expenses	4,277,743	7,009,562	7,251,982	12,302,185
Operating loss	(4,277,743)	(7,009,562)	(7,251,982)	(12,302,185)
Other income, net	31,297	37,935	49,930	63,401
Loss before income tax expense	(4,246,446)	(6,971,627)	(7,202,052)	(12,238,784)
Income tax expense	0	0	(200)	0
Net loss	$ (4,246,446)	$ (6,971,627)	$ (7,202,252)	$ (12,238,784)
Basic loss per share attributable to common stock (in dollars per share)	$ (0.26)	$ (0.55)	$ (0.49)	$ (0.96)
Weighted average common shares outstanding, basic (in shares)	16,496,239	12,770,391	14,667,943	12,749,355
Diluted loss per share attributable to common stock (in dollars per share)	$ (0.26)	$ (0.55)	$ (0.49)	$ (0.96)
Weighted average common shares outstanding, diluted (in shares)	16,496,239	12,770,391	14,667,943	12,749,355
Comprehensive loss:
Net loss	$ (4,246,446)	$ (6,971,627)	$ (7,202,252)	$ (12,238,784)
Unrealized loss on available-for-sale securities	(10,085)	0	(10,085)	0
Comprehensive loss	$ (4,256,531)	$ (6,971,627)	$ (7,212,337)	$ (12,238,784)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (7,202,252)	$ (12,238,784)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	8,717	6,058
Stock-based compensation expense	387,779	1,214,126
Accretion of premium on marketable investment securities	754	0
Changes in operating assets and liabilities:
Accrued interest income	(99,451)	0
Prepaid and other current assets	48,637	(503,133)
Accounts payable	30,104	(114,037)
Accrued expenses	(61,068)	771,816
Cash used in operating activities	(6,886,780)	(10,863,954)
Cash flows from investing activities:
Refund of long-term rental deposit	0	21,247
Purchases of property and equipment	(14,799)	(1,866)
Purchases of marketable investment securities	(15,125,944)	0
Cash provided by (used in) investing activities	(15,140,743)	19,381
Cash flows from financing activities:
Proceeds from stock option exercises	156,961	16,064
Payment of accrued common stock offering costs	0	(271,183)
Net proceeds from common stock offering	32,501,750	0
Cash provided by (used in) financing activities	32,658,711	(255,119)
Net increase (decrease) in cash and cash equivalents	10,631,188	(11,099,692)
Cash and cash equivalents at beginning of period	27,666,055	45,263,698
Cash and cash equivalents at end of period	38,297,243	34,164,006
Supplemental disclosure of non-cash investing and financing activities:
Accrued common stock offering costs	62,437	0
Stock received as consideration for stock option exercises and recognized as treasury stock	0	40,712
Unrealized loss on marketable investment securities	$ (10,085)	$ 0

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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 six months ended June 30, 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 .

Earnings (Loss) per Share

Earnings (Loss) per Share	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Basic loss per share attributable to common stock: Numerator Net loss $ (4,246,446) $ (6,971,627) $ (7,202,252) $ (12,238,784) Denominator Weighted avg. common shares outstanding 16,496,239 12,770,391 14,667,943 12,749,355 Basic loss per share attributable to common stock $ (0.26) $ (0.55) $ (0.49) $ (0.96) Diluted loss per share attributable to common stock: Numerator Net loss $ (4,246,446) $ (6,971,627) $ (7,202,252) $ (12,238,784) Denominator Weighted avg. common shares outstanding 16,496,239 12,770,391 14,667,943 12,749,355 Diluted loss per share attributable to common stock $ (0.26) $ (0.55) $ (0.49) $ (0.96) June 30, 2015 2014 Stock options 1,660,823 1,276,907 Unvested restricted stock 5,000 12,000 Unvested restricted stock units - 15,000 Warrants 20,467 20,467

Marketable Investment Securitie

Marketable Investment Securities	6 Months Ended
	Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	(3) Marketable Investment Securities The Company has classified its marketable investment securities as available-for-sale securities. These 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 June 30, 2015 were as follows: Amortized Gross Gross Aggregate At June 30, 2015: Corporate bonds and notes 15,125,190 4,699 (14,784) 15,115,105 There were no marketable investment securities held as of December 31, 2014. Maturities of debt securities classified as available-for-sale securities at June 30, 2015 are as follows: Amortized Aggregate Due within one year 5,574,248 5,571,535 Due after one year through five years 9,550,942 9,543,570 Due after five years — — $ 15,125,190 $ 15,115,105 The Company determined there were no other-than-temporary impairments for the three and six month periods ended June 30, 2015.

Fair Value

Fair Value	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	(4) 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 prepaid and other current assets, accounts payable, and accrued expenses, the carrying amounts approximate fair value because of the short maturity of these instruments. Fair value measurements at reporting date using June 30, 2015 Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds $ 9,776,373 $ 9,776,373 $ - $ - Corporate bonds and notes 15,115,105 - 15,115,105 - $ 24,891,478 $ 9,776,373 $ 15,115,105 $ - 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 with original maturities to the Company of three months or less, and are purchased daily at par value with specified yield rates. The fair values are based on quoted market prices in active markets with no valuation adjustment. Corporate bonds and notes: The Company uses a third-party pricing service to value these investments. The pricing service utilizes reportable trades, broker/dealer quotes, bids and offers, benchmark yields and credit spreads and other observable inputs. 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 or Level 2 for the six months ended June 30, 2015.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	(5) 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 June 30, 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	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaborative Arrangement Disclosure [Text Block]	(6) Collaborative Agreements (a) Abbott Products, Inc. On March 29, 2012 All obligations under the prior license agreement have been completed except that Lipocine will owe Abbott a perpetual 1% royalty on net sales. 1.0 50 (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 $ 2.6 5.4 3.9 8.1

Leases

Leases	6 Months Ended
	Jun. 30, 2015
Leases [Abstract]
Leases of Lessee Disclosure [Text Block]	(7) 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. Operating leases Year ending December 31: 2015 143,237 2016 294,373 2017 303,119 2018 51,903 Total minimum lease payments $ 792,632 The Company’s rent expense was $ 73,000 77,000 147,000 177,000

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders Equity Note [Abstract]
Stockholders Equity Note Disclosure [Text Block]	(8) Stockholders’ Equity (a) Issuance of Common Stock On April 29, 2015, the Company sold 5,347,500 32.4 2.3 (b) 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 149,498 166,000 366,126 836,000 907,336 2.81 422,000 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. 209,000 169,000 388,000 1.2 Three Months Ended Six Months Ended 2015 2014 2015 2014 Research and development $ 40,582 $ 55,249 $ 107,544 $ 270,664 General and administrative 168,155 113,491 280,235 943,462 $ 208,737 $ 168,740 $ 387,779 $ 1,214,126 The Company issued 188,500 6,000 188,500 37,500 Key assumptions used in the determination of the fair value of stock options granted are as follows: Expected Term Share-Based Payment, Risk-Free Interest Rate Expected Dividend Expected Volatility 2015 2014 Expected term 5.70 years 6.04 years Risk-free interest rate 1.66 % 1.93 % Expected dividend yield — — Expected volatility 80.95 % 73.09 % FASB ASC 718, Stock Compensation As of June 30, 2015, there was $ 2.2 2.02 5.06 5.20 (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 1,000,000 271,906 1,271,906 832,132 Outstanding stock options Number of Weighted average Balance at December 31, 2014 1,528,737 $ 4.20 Options granted 188,500 7.43 Options exercised (55,858) 2.81 Options forfeited - - Options cancelled (556) 18.34 Balance at June 30, 2015 1,660,823 4.61 Options exercisable at June 30, 2015 1,130,513 3.21 Options outstanding Options exercisable Number Weighted Weighted Aggregate intrinsic Number Weighted Weighted Aggregate 1,660,823 6.58 $ 4.61 $ 6,600,341 1,130,513 5.32 $ 3.21 $ 6,068,782 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 55,858 230,000 20,205 87,000 (d) Restricted Common Stock In 2010, the Company issued 112,720 In September 2013, the Company issued 12,000 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 8(b)). The grant date fair value of these shares when issued was $ 5.75 The Company includes unvested restricted stock in outstanding shares for financial reporting purposes when the awards vest. Number of Balance at December 31, 2014 7,000 Granted - Vested (2,000) Cancelled - Balance at June 30, 2015 5,000 (e) Restricted Stock Units On December 10, 2013, the Company issued 15,000 (f) Warrants For charitable purposes, on December 23, 2003, the Company granted warrants to a local university for 20,467 12.21 December 31, 2015

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	(9) 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	6 Months Ended
	Jun. 30, 2015
Spriaso LLC [Abstract]
Spriaso LLC Disclosure [Text Block]	(10) 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 10.0 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 230 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

Accounting Pronouncements Not Y

Accounting Pronouncements Not Yet Adopted	6 Months Ended
	Jun. 30, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	(11) Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). In August 2014, FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern

Earnings (Loss) per Share (Tabl

Earnings (Loss) per Share (Tables)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2015 and 2014. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Basic loss per share attributable to common stock: Numerator Net loss $ (4,246,446) $ (6,971,627) $ (7,202,252) $ (12,238,784) Denominator Weighted avg. common shares outstanding 16,496,239 12,770,391 14,667,943 12,749,355 Basic loss per share attributable to common stock $ (0.26) $ (0.55) $ (0.49) $ (0.96) Diluted loss per share attributable to common stock: Numerator Net loss $ (4,246,446) $ (6,971,627) $ (7,202,252) $ (12,238,784) Denominator Weighted avg. common shares outstanding 16,496,239 12,770,391 14,667,943 12,749,355 Diluted loss per share attributable to common stock $ (0.26) $ (0.55) $ (0.49) $ (0.96)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	June 30, 2015 2014 Stock options 1,660,823 1,276,907 Unvested restricted stock 5,000 12,000 Unvested restricted stock units - 15,000 Warrants 20,467 20,467

Marketable Investment Securit18

Marketable Investment Securities (Tables)	6 Months Ended
	Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities [Table Text Block]	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 June 30, 2015 were as follows: Amortized Gross Gross Aggregate At June 30, 2015: Corporate bonds and notes 15,125,190 4,699 (14,784) 15,115,105
Schedule Of Available For Sale Securities Debt Maturities [Table Text Block]	There were no marketable investment securities held as of December 31, 2014. Maturities of debt securities classified as available-for-sale securities at June 30, 2015 are as follows: Amortized Aggregate Due within one year 5,574,248 5,571,535 Due after one year through five years 9,550,942 9,543,570 Due after five years — — $ 15,125,190 $ 15,115,105

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
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 June 30, 2015: Fair value measurements at reporting date using June 30, 2015 Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds $ 9,776,373 $ 9,776,373 $ - $ - Corporate bonds and notes 15,115,105 - 15,115,105 - $ 24,891,478 $ 9,776,373 $ 15,115,105 $ -

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2015 are: Operating leases Year ending December 31: 2015 143,237 2016 294,373 2017 303,119 2018 51,903 Total minimum lease payments $ 792,632

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 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 $ 209,000 169,000 388,000 1.2 Three Months Ended Six Months Ended 2015 2014 2015 2014 Research and development $ 40,582 $ 55,249 $ 107,544 $ 270,664 General and administrative 168,155 113,491 280,235 943,462 $ 208,737 $ 168,740 $ 387,779 $ 1,214,126
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	For options granted during the six months ended June 30, 2015 and 2014, the Company calculated the fair value of each option grant on the respective dates of grant using the following weighted average assumptions: 2015 2014 Expected term 5.70 years 6.04 years Risk-free interest rate 1.66 % 1.93 % Expected dividend yield — — Expected volatility 80.95 % 73.09 %
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 Balance at December 31, 2014 1,528,737 $ 4.20 Options granted 188,500 7.43 Options exercised (55,858) 2.81 Options forfeited - - Options cancelled (556) 18.34 Balance at June 30, 2015 1,660,823 4.61 Options exercisable at June 30, 2015 1,130,513 3.21
Schedule of Share-based Compensation, Activity [Table Text Block]	The following table summarizes information about stock options outstanding and exercisable at June 30, 2015: Options outstanding Options exercisable Number Weighted Weighted Aggregate intrinsic Number Weighted Weighted Aggregate 1,660,823 6.58 $ 4.61 $ 6,600,341 1,130,513 5.32 $ 3.21 $ 6,068,782
Schedule of Share-based Compensation, Restricted Stock Activity [Table Text Block]	A summary of restricted common stock activity is as follows: Number of Balance at December 31, 2014 7,000 Granted - Vested (2,000) Cancelled - Balance at June 30, 2015 5,000

Basis of Presentation (Details

Basis of Presentation (Details Textual)	6 Months Ended
	Jun. 30, 2014USD ($)
Misclassification identified in statement of cash flows, amount	$ 271,000

Earnings (Loss) per Share (Deta

Earnings (Loss) per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic loss per share attributable to common stock: Numerator
Net loss	$ (4,246,446)	$ (6,971,627)	$ (7,202,252)	$ (12,238,784)
Denominator
Weighted avg. common shares outstanding (in shares)	16,496,239	12,770,391	14,667,943	12,749,355
Basic loss per share attributable to common stock (in dollars per share)	$ (0.26)	$ (0.55)	$ (0.49)	$ (0.96)
Diluted loss per share attributable to common stock: Numerator
Net loss	$ (4,246,446)	$ (6,971,627)	$ (7,202,252)	$ (12,238,784)
Denominator
Weighted avg. common shares outstanding (in shares)	16,496,239	12,770,391	14,667,943	12,749,355
Diluted loss per share attributable to common stock (in dollars per share)	$ (0.26)	$ (0.55)	$ (0.49)	$ (0.96)

Earnings (Loss) per Share (De24

Earnings (Loss) per Share (Details 1) - shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Unvested Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5,000	12,000
Unvested Resticted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	15,000
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,660,823	1,276,907
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	20,467	20,467

Marketable Investment Securit25

Marketable Investment Securities (Details) - Corporate Debt Securities [Member]	Jun. 30, 2015USD ($)
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 15,125,190
Gross unrealized holding gains	4,699
Gross unrealized holding losses	(14,784)
Estimated fair value	$ 15,115,105

Marketable Investment Securit26

Marketable Investment Securities (Details 1)	Jun. 30, 2015USD ($)
Schedule of Available-for-sale Securities [Line Items]
Amortized cost, Due within one year	$ 5,574,248
Amortized cost, Due after one year through five years	9,550,942
Amortized cost, Due after five years	0
Amortized cost, Total	15,125,190
Estimated fair value, Due within one year	5,571,535
Estimated fair value, Due after one year through five years	9,543,570
Estimated fair value, Due after five years	0
Estimated fair value, Total	$ 15,115,105

Fair Value (Details)

Fair Value (Details)	Jun. 30, 2015USD ($)
Assets:
Assets, Fair Value Disclosure	$ 24,891,478
Corporate Debt Securities [Member]
Assets:
Corporate bonds and notes	15,115,105
Fair Value, Inputs, Level 1 [Member]
Assets:
Assets, Fair Value Disclosure	9,776,373
Fair Value, Inputs, Level 2 [Member]
Assets:
Assets, Fair Value Disclosure	15,115,105
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Assets:
Corporate bonds and notes	15,115,105
Money Market Funds [Member]
Assets:
Cash equivalents - money market funds	9,776,373
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Cash equivalents - money market funds	$ 9,776,373

Collaborative Agreements (Detai

Collaborative Agreements (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Contract Research And Development [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Other Research and Development Expense	$ 2.6	$ 5.4	$ 3.9	$ 8.1
Abbott Products, Inc. [Member] | Collaborative Arrangement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative Arrangement, Termination Date			Mar. 29, 2012
Collaborative Arrangement, Rights and Obligations			All obligations under the prior license agreement have been completed except that Lipocine will owe Abbott a perpetual 1% royalty on net sales.
Collaborative Arrangement, Royalties, Maximum Amount			$ 1
Collaborative Arrangement, Royalties, Percentage of Reduction			50.00%

Leases (Details)

Leases (Details)	Jun. 30, 2015USD ($)
Year ending December 31:
2,015	$ 143,237
2,016	294,373
2,017	303,119
2,018	51,903
Total minimum lease payments	$ 792,632

Leases (Details Textual)

Leases (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense	$ 73,000	$ 77,000	$ 147,000	$ 177,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 208,737	$ 168,740	$ 387,779	$ 1,214,126
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	40,582	55,249	107,544	270,664
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 168,155	$ 113,491	$ 280,235	$ 943,462

Stockholders' Equity (Details 1

Stockholders' Equity (Details 1)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	5 years 8 months 12 days	6 years 14 days
Risk-free interest rate	1.66%	1.93%
Expected dividend yield	0.00%	0.00%
Expected volatility	80.95%	73.09%

Stockholders' Equity (Details 2

Stockholders' Equity (Details 2) - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
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)	188,500
Number of Shares, Options exercised (in shares)	(55,858)	(20,205)
Number of Shares, Options forfeited (in shares)	0
Number of Shares, Options cancelled (in shares)	(556)
Number of Shares, Balance at end of the period (in shares)	1,660,823
Number of Shares, Options exercisable (in shares)	1,130,513
Weighted average exercise price, Balance at beginning of the period (in dollars per share)	$ 4.2
Weighted average exercise price, Options granted (in dollars per share)	7.43
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)	18.34
Weighted average exercise price, Balance at end of the period (in dollars per share)	4.61
Weighted average exercise price, Options exercisable (in dollars per share)	$ 3.21

Stockholders' Equity (Details 3

Stockholders' Equity (Details 3) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding	1,660,823	1,528,737
Options outstanding, Weighted average remaining contractual life (Years)	6 years 6 months 29 days
Options outstanding, Weighted average exercise price (in dollars per share)	$ 4.61	$ 4.2
Options outstanding, Aggregate intrinsic value	$ 6,600,341
Number of options exerciseable	1,130,513
Options exercisable, Weighted average remaining contractual life (Years)	5 years 3 months 25 days
Options exercisable, Weighted average exercise price (in dollars per share)	$ 3.21
Options exercisable, Aggregate intrinsic value	$ 6,068,782

Stockholders' Equity (Details 4

Stockholders' Equity (Details 4) - Restricted Stock [Member]	6 Months Ended
	Jun. 30, 2015shares
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	(2,000)
Number of shares, Cancelled	0
Number of shares, Balance at end of the period	5,000

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($)	Jan. 06, 2014	Nov. 30, 2014	Jan. 31, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 10, 2013	Sep. 30, 2013	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense				$ 208,737	$ 168,740	$ 387,779	$ 1,214,126
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total				$ 2,200,000		$ 2,200,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period						55,858	20,205
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value						$ 230,000	$ 87,000
Stock Issued During Period, Shares, New Issues				188,500	6,000	188,500	37,500
Proceeds from Issuance of Common Stock						$ 32,501,750	$ 0
Payments of Stock Issuance Costs						$ 0	$ 271,183
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition						2 years 7 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value						$ 5.06	$ 5.20
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues						5,347,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number									12,000
Accredited Investors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Issuance of Common Stock						$ 32,400,000
Payments of Stock Issuance Costs						2,300,000
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
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date						Dec. 31, 2015
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	1,271,906	1,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant				832,132		832,132
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		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, Award Vesting Rights						Ten percent of the issued restricted common stock vested on December31, 2011. The remaining ninety percent of the restricted shares were modified on January31, 2013 to vest on the earlier of the first dosing in the pivotal clinical study for its lead drug candidate, or 50% on January31, 2014 and 50% on January31, 2015.
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) - Jul. 23, 2013 - USD ($)	Total
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