Lipocine (LPCN) 10-Q 8 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 05, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Registrant Name	Lipocine Inc.
Entity Central Index Key	1,535,955
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	LPCN
Entity Common Stock, Shares Outstanding		19,267,452

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 6,936,511	$ 5,560,716
Marketable investment securities	19,860,549	21,279,570
Accrued interest income	35,946	38,943
Prepaid and other current assets	262,039	329,548
Total current assets	27,095,045	27,208,777
Property and equipment, net of accumulated depreciation of $1,099,803 and $1,092,710, respectively	96,347	103,440
Other assets	30,753	30,753
Total assets	27,222,145	27,342,970
Current liabilities:
Accounts payable	853,510	245,915
Accrued expenses	1,491,448	1,080,254
Total current liabilities	2,344,958	1,326,169
Total liabilities	2,344,958	1,326,169
Commitments and contingencies (notes 7 and 10)
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; 19,267,452 and 18,462,325 issued and 19,261,742 and 18,456,615 outstanding	1,927	1,846
Additional paid-in capital	135,199,981	131,481,123
Treasury stock at cost, 5,710 shares	(40,712)	(40,712)
Accumulated other comprehensive loss	(5,786)	(8,493)
Accumulated deficit	(110,278,223)	(105,416,963)
Total stockholders' equity	24,877,187	26,016,801
Total liabilities and stockholders' equity	$ 27,222,145	$ 27,342,970

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets [Parenthetical] - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment (in dollars)	$ 1,099,803	$ 1,092,710
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	19,267,452	18,462,325
Common stock, shares outstanding	19,261,742	18,456,615
Treasury Stock, Shares	5,710	5,710

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating expenses:
Research and development	$ 3,083,739	$ 2,673,391
General and administrative	1,825,176	4,397,013
Total operating expenses	4,908,915	7,070,404
Operating loss	(4,908,915)	(7,070,404)
Other income, net	48,355	61,659
Loss before income tax expense	(4,860,560)	(7,008,745)
Income tax expense	(700)	(700)
Net loss	$ (4,861,260)	$ (7,009,445)
Basic loss per share attributable to common stock (in dollars per share)	$ (0.26)	$ (0.38)
Weighted average common shares outstanding, basic (in shares)	18,711,239	18,251,905
Diluted loss per share attributable to common stock (in dollars per share)	$ (0.26)	$ (0.38)
Weighted average common shares outstanding, diluted (in shares)	18,711,239	18,251,905
Comprehensive loss:
Net loss	$ (4,861,260)	$ (7,009,445)
Net unrealized gain on available-for-sale securities	2,707	35,795
Comprehensive loss	$ (4,858,553)	$ (6,973,650)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net loss	$ (4,861,260)	$ (7,009,445)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation expense	7,093	6,654
Stock-based compensation expense	632,290	733,502
Accretion (amortization) of premium / discount on marketable investment securities	(6,169)	91,566
Changes in operating assets and liabilities:
Accrued interest income	2,997	(15,303)
Prepaid and other current assets	67,509	81,303
Accounts payable	607,595	570,093
Accrued expenses	411,194	(968,190)
Income taxes payable	0	700
Cash used in operating activities	(3,138,751)	(6,509,120)
Cash flows from investing activities:
Purchases of property and equipment	0	(39,202)
Purchases of marketable investment securities	(6,972,103)	(3,178,734)
Maturities of marketable investment securities	8,400,000	3,800,000
Cash provided by investing activities	1,427,897	582,064
Cash flows from financing activities:
Proceeds from stock option exercises	388,551	34,249
Net proceeds from common stock offering	2,698,098	0
Cash provided by financing activities	3,086,649	34,249
Net increase (decrease) in cash and cash equivalents	1,375,795	(5,892,807)
Cash and cash equivalents at beginning of period	5,560,716	20,007,659
Cash and cash equivalents at end of period	6,936,511	14,114,852
Supplemental disclosure of cash flow information:
Net unrealized gain on available-for-sale securities	2,707	35,795
Cash paid for income taxes	$ 700	$ 0

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
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, 2017 are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2017. 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, 2016. 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.

Earnings (Loss) per Share

Earnings (Loss) per Share	3 Months Ended
	Mar. 31, 2017
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, 2017 and 2016 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 historical unvested restricted stock contained non-forfeitable rights to dividends or dividend equivalents. However, unvested restricted stock grants were 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 and unvested restricted stock units to the extent such shares are dilutive. Three Months Ended March 31, 2017 2016 Basic loss per share attributable to common stock: Numerator Net loss $ (4,861,260) $ (7,009,445) Denominator Weighted avg. common shares outstanding 18,711,239 18,251,905 Basic loss per share attributable to common stock $ (0.26) $ (0.38) Diluted loss per share attributable to common stock: Numerator Net loss $ (4,861,260) $ (7,009,445) Denominator Weighted avg. common shares outstanding 18,711,239 18,251,905 Diluted loss per share attributable to common stock $ (0.26) $ (0.38) March 31, 2017 2016 Stock options 2,070,076 2,251,107 Unvested restricted stock - 2,000 Unvested restricted stock units 287,000 -

Marketable Investment Securitie

Marketable Investment Securities	3 Months Ended
	Mar. 31, 2017
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. Gross Gross unrealized unrealized Amortized holding holding Aggregate March 31, 2017 Cost gains losses fair value Government bonds and notes $ 8,668,998 $ - $ (3,029) $ 8,665,969 Corporate bonds, notes and commercial paper 11,197,337 - (2,757) 11,194,580 $ 19,866,335 $ - $ (5,786) $ 19,860,549 Gross Gross unrealized unrealized Amortized holding holding Aggregate December 31, 2016 Cost gains losses fair value Government bonds and notes $ 7,473,273 $ - $ (2,219) $ 7,471,054 Corporate bonds, notes and commercial paper 13,814,790 - (6,274) 13,808,516 $ 21,288,063 $ - $ (8,493) $ 21,279,570 Amortized Aggregate March 31, 2017 Cost fair value Due within one year $ 19,866,335 $ 19,860,549 $ 19,866,335 $ 19,860,549 There were no sales of marketable investment securities during the three months ended March 31, 2017 and 2016 and therefore no realized gains or losses. Additionally, $ 8.4 3.8

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2017
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 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 March 31, 2017 and December 31, 2016: Fair value measurements at reporting date using March 31, 2017 Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds $ 3,387,125 $ 3,387,125 $ - $ - Government bonds and notes 8,665,969 4,950,105 3,715,864 - Corporate bonds, notes and commercial paper 11,194,580 - 11,194,580 - $ 23,247,674 $ 8,337,230 $ 14,910,444 $ - Fair value measurements at reporting date using December 31, 2016 Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds $ 2,920,577 $ 2,920,577 $ - $ - Government bonds and notes 7,471,054 3,752,350 3,718,704 - Corporate bonds, notes and commercial paper 13,808,516 - 13,808,516 - $ 24,200,147 $ 6,672,927 $ 17,527,220 $ - 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 and commercial paper 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 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 Treasury bonds and notes are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets for identical assets and reportable trades. 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. 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. 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 three months ended March 31, 2017.

Restructuring Charges

Restructuring Charges	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure [Text Block]	(5) Restructuring Charges Restructuring charges relate to our initiative to restructure operations which was approved by the board of directors on July 13, 2016. Under the July 2016 restructuring, the Company reduced its workforce by eight positions, constituting 33 The Company did not recognize any charges related to the 2016 Restructuring Plan during the three months ended March 31, 2017 and 2016. March 31, 2017 Accrued restructuring charges payable at December 31, 2016 $ 239,573 Restructuring expenses during quarter - Restructuring payments during quarter (73,754) Accrued restructuring charges payable at March 31, 2017 $ 165,819

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	(6) 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, 2017 and December 31, 2016, 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.

Contractual Agreements

Contractual Agreements	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Contractual Arrangements for Prepaid Health Care Service Providers [Text Block]	(7) Contractual 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 $ 2.4 1.8

Leases

Leases	3 Months Ended
	Mar. 31, 2017
Leases [Abstract]
Leases of Lessee Disclosure [Text Block]	(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. Additionally, on December 28, 2015, the Company entered into an operating lease for office space in Lawrenceville, New Jersey through January 31, 2018. Operating leases Year ending December 31: 2017 290,528 2018 58,903 Total minimum lease payments $ 349,431 The Company’s rent expense was $ 95,000 95,000

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Stockholders Equity Note [Abstract]
Stockholders Equity Note Disclosure [Text Block]	(9) Stockholders’ Equity (a) Issuance of Common Stock 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 $ 20.0 666,853 4.33 2.9 2.7 (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 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 November 12, 2018 (c) 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 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 revaluation over their vesting terms. 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. 632,000 734,000 Three Months Ended 2017 2016 Research and development $ 207,380 $ 184,424 General and administrative 424,910 549,078 $ 632,290 $ 733,502 The Company did not issue any stock options for the three months ended March 31, 2017 and issued 547,000 287,000 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, 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 was based on a combination of the Company's trading history since March 2014 and the average of similar public companies. 2016 Expected term 5.85 years Risk-free interest rate 1.73 % Expected dividend yield 0.00 % Expected volatility 82.70 % The Company did not grant any stock options during the three months ended March 31, 2017. FASB ASC 718, Stock Compensation, As of March 31, 2017, there was $ 3.5 1.85 (d) 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 2,471,906 946,020 Outstanding stock options Number of Weighted average shares exercise price Balance at December 31, 2016 2,225,850 $ 6.12 Options granted - - Options exercised (138,274) 2.81 Options forfeited - - Options cancelled (17,500) 13.84 Balance at March 31, 2017 2,070,076 6.28 Options exercisable at March 31, 2017 1,315,533 5.76 Options outstanding Options exercisable Number Weighted Weighted Aggregate intrinsic Number Weighted Weighted Aggregate 2,070,076 7.35 $ 6.28 $ 847,022 1,315,533 6.30 $ 5.76 $ 734,502 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 three months ended March 31, 2017 and 2016 was $ 131,000 22,000 138,274 5,445 (e) Restricted Stock Units Number of unvested restricted shares Balance at December 31, 2016 - Granted 287,000 Vested - Cancelled - Balance at March 31, 2017 287,000

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	(10) 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. The Company has not accrued for any contingency at March 31, 2017 as the Company does not consider any contingency to be probable nor estimable. While complete assurance cannot be given to the outcome of these proceedings, management does not currently believe that any of these matters, 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.

Spriaso, LLC

Spriaso, LLC	3 Months Ended
	Mar. 31, 2017
Agreement With Spriaso LLC [Abstract]
Agreement With Spriaso LLC [Text Block]	(11) 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 which expired 230 Consolidations

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	(12) Recent Accounting Pronouncements Accounting Pronouncements Not Yet Adopted In August 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses In February 2016, FASB issued ASU 2016-02 , Leases, In January 2016, FASB issued ASU 2016-01, Financial Instruments, Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . Accounting Pronouncements Recently Adopted In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718) All other issued and effective accounting standards during 2017 were not relevant to the Company.

Earnings (Loss) per Share (Tabl

Earnings (Loss) per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended March 31, 2017 2016 Basic loss per share attributable to common stock: Numerator Net loss $ (4,861,260) $ (7,009,445) Denominator Weighted avg. common shares outstanding 18,711,239 18,251,905 Basic loss per share attributable to common stock $ (0.26) $ (0.38) Diluted loss per share attributable to common stock: Numerator Net loss $ (4,861,260) $ (7,009,445) Denominator Weighted avg. common shares outstanding 18,711,239 18,251,905 Diluted loss per share attributable to common stock $ (0.26) $ (0.38)
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, 2017 and 2016 does not include the following stock options and unvested restricted stock to purchase shares in the computation of diluted loss per share because these instruments were antidilutive: March 31, 2017 2016 Stock options 2,070,076 2,251,107 Unvested restricted stock - 2,000 Unvested restricted stock units 287,000 -

Marketable Investment Securit19

Marketable Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and December 31, 2016 were as follows: Gross Gross unrealized unrealized Amortized holding holding Aggregate March 31, 2017 Cost gains losses fair value Government bonds and notes $ 8,668,998 $ - $ (3,029) $ 8,665,969 Corporate bonds, notes and commercial paper 11,197,337 - (2,757) 11,194,580 $ 19,866,335 $ - $ (5,786) $ 19,860,549 Gross Gross unrealized unrealized Amortized holding holding Aggregate December 31, 2016 Cost gains losses fair value Government bonds and notes $ 7,473,273 $ - $ (2,219) $ 7,471,054 Corporate bonds, notes and commercial paper 13,814,790 - (6,274) 13,808,516 $ 21,288,063 $ - $ (8,493) $ 21,279,570
Schedule Of Available For Sale Securities Debt Maturities [Table Text Block]	Amortized Aggregate March 31, 2017 Cost fair value Due within one year $ 19,866,335 $ 19,860,549 $ 19,866,335 $ 19,860,549

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and December 31, 2016: Fair value measurements at reporting date using March 31, 2017 Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds $ 3,387,125 $ 3,387,125 $ - $ - Government bonds and notes 8,665,969 4,950,105 3,715,864 - Corporate bonds, notes and commercial paper 11,194,580 - 11,194,580 - $ 23,247,674 $ 8,337,230 $ 14,910,444 $ - Fair value measurements at reporting date using December 31, 2016 Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds $ 2,920,577 $ 2,920,577 $ - $ - Government bonds and notes 7,471,054 3,752,350 3,718,704 - Corporate bonds, notes and commercial paper 13,808,516 - 13,808,516 - $ 24,200,147 $ 6,672,927 $ 17,527,220 $ -

Restructuring Charges (Tables)

Restructuring Charges (Tables)	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve by Type of Cost [Table Text Block]	The activity for the three months ended March 31, 2017 for restructuring charges is as follows: March 31, 2017 Accrued restructuring charges payable at December 31, 2016 $ 239,573 Restructuring expenses during quarter - Restructuring payments during quarter (73,754) Accrued restructuring charges payable at March 31, 2017 $ 165,819

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2017
Leases [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Future minimum lease payments under non-cancellable operating leases (with initial or remaining lease terms in excess of one year) as of March 31, 2017 are: Operating leases Year ending December 31: 2017 290,528 2018 58,903 Total minimum lease payments $ 349,431

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Stockholders Equity Note [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	For options granted during the three months ended March 31, 2016, the Company calculated the fair value of each option grant on the respective dates of grant using the following weighted average assumptions: 2016 Expected term 5.85 years Risk-free interest rate 1.73 % Expected dividend yield 0.00 % Expected volatility 82.70 %
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 $ 632,000 734,000 Three Months Ended 2017 2016 Research and development $ 207,380 $ 184,424 General and administrative 424,910 549,078 $ 632,290 $ 733,502
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, 2016 2,225,850 $ 6.12 Options granted - - Options exercised (138,274) 2.81 Options forfeited - - Options cancelled (17,500) 13.84 Balance at March 31, 2017 2,070,076 6.28 Options exercisable at March 31, 2017 1,315,533 5.76
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block]	The following table summarizes information about stock options outstanding and exercisable at March 31, 2017: Options outstanding Options exercisable Number Weighted Weighted Aggregate intrinsic Number Weighted Weighted Aggregate 2,070,076 7.35 $ 6.28 $ 847,022 1,315,533 6.30 $ 5.76 $ 734,502
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]	A summary of restricted common stock activity is as follows: Number of unvested restricted shares Balance at December 31, 2016 - Granted 287,000 Vested - Cancelled - Balance at March 31, 2017 287,000

Earnings (Loss) per Share (Deta

Earnings (Loss) per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Basic loss per share attributable to common stock: Numerator
Net loss	$ (4,861,260)	$ (7,009,445)
Denominator
Weighted avg. common shares outstanding (in shares)	18,711,239	18,251,905
Basic loss per share attributable to common stock (in dollars per share)	$ (0.26)	$ (0.38)
Diluted loss per share attributable to common stock: Numerator
Net loss	$ (4,861,260)	$ (7,009,445)
Denominator
Weighted avg. common shares outstanding (in shares)	18,711,239	18,251,905
Diluted loss per share attributable to common stock (in dollars per share)	$ (0.26)	$ (0.38)

Earnings (Loss) per Share (De25

Earnings (Loss) per Share (Details 1) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Unvested Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	2,000
Unvested Resticted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	287,000	0
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,070,076	2,251,107

Marketable Investment Securit26

Marketable Investment Securities (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 19,866,335	$ 21,288,063
Gross unrealized holding gains	0	0
Gross unrealized holding losses	(5,786)	(8,493)
Aggregate fair value	19,860,549	21,279,570
Government bonds and notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	8,668,998	7,473,273
Gross unrealized holding gains	0	0
Gross unrealized holding losses	(3,029)	(2,219)
Aggregate fair value	8,665,969	7,471,054
Corporate bonds, notes and commercial paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	11,197,337	13,814,790
Gross unrealized holding gains	0	0
Gross unrealized holding losses	(2,757)	(6,274)
Aggregate fair value	$ 11,194,580	$ 13,808,516

Marketable Investment Securit27

Marketable Investment Securities (Details 1)	Mar. 31, 2017USD ($)
Amortized Cost
Due within one year	$ 19,866,335
Amortized Cost, Total	19,866,335
Aggregate fair value
Due within one year	19,860,549
Aggregate fair value, Total	$ 19,860,549

Marketable Investment Securit28

Marketable Investment Securities (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Proceeds from Sale and Maturity of Marketable Securities, Total	$ 8.4	$ 3.8

Fair Value (Details)

Fair Value (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Assets:
Marketable Investment Securities	$ 19,860,549	$ 21,279,570
Assets, Fair Value	23,247,674	24,200,147
Money Market Funds [Member]
Assets:
Cash equivalents-money market funds	3,387,125	2,920,577
Government Bonds and Notes [Member]
Assets:
Marketable Investment Securities	8,665,969	7,471,054
Corporate Bonds, Notes and Commercial Paper [Member]
Assets:
Marketable Investment Securities	11,194,580	13,808,516
Fair Value, Inputs, Level 1 [Member]
Assets:
Assets, Fair Value	8,337,230	6,672,927
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Assets:
Cash equivalents-money market funds	3,387,125	2,920,577
Fair Value, Inputs, Level 1 [Member] | Government Bonds and Notes [Member]
Assets:
Marketable Investment Securities	4,950,105	3,752,350
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds, Notes and Commercial Paper [Member]
Assets:
Marketable Investment Securities	0	0
Fair Value, Inputs, Level 2 [Member]
Assets:
Assets, Fair Value	14,910,444	17,527,220
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Assets:
Cash equivalents-money market funds	0	0
Fair Value, Inputs, Level 2 [Member] | Government Bonds and Notes [Member]
Assets:
Marketable Investment Securities	3,715,864	3,718,704
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds, Notes and Commercial Paper [Member]
Assets:
Marketable Investment Securities	11,194,580	13,808,516
Fair Value, Inputs, Level 3 [Member]
Assets:
Assets, Fair Value	0	0
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member]
Assets:
Cash equivalents-money market funds	0	0
Fair Value, Inputs, Level 3 [Member] | Government Bonds and Notes [Member]
Assets:
Marketable Investment Securities	0	0
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds, Notes and Commercial Paper [Member]
Assets:
Marketable Investment Securities	$ 0	$ 0

Restructuring Charges (Details)

Restructuring Charges (Details)	3 Months Ended
	Mar. 31, 2017USD ($)
Restructuring Cost and Reserve [Line Items]
Accrued restructuring charges payable at December 31, 2016	$ 239,573
Restructuring expenses during quarter	0
Restructuring payments during quarter	(73,754)
Accrued restructuring charges payable at March 31, 2017	$ 165,819

Restructuring Charges (Details

Restructuring Charges (Details Textual)	3 Months Ended
	Mar. 31, 2017
2016 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent	33.00%

Contractual Agreements (Details

Contractual Agreements (Details Textual) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017
Contract Research And Development [Member]
Schedule of Contractual Agreements [Line Items]
Other Research and Development Expense	$ 2.4	$ 1.8
Abbott Products, Inc. [Member] | Collaborative Arrangement [Member]
Schedule of Contractual Agreements [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)	Mar. 31, 2017USD ($)
Year ending December 31:
2,017	$ 290,528
2,018	58,903
Total minimum lease payments	$ 349,431

Leases (Details Textual)

Leases (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense	$ 95,000	$ 95,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 632,290	$ 733,502
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	207,380	184,424
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 424,910	$ 549,078

Stockholders' Equity (Details 1

Stockholders' Equity (Details 1)	3 Months Ended
	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	5 years 10 months 6 days
Risk-free interest rate	1.73%
Expected dividend yield	0.00%
Expected volatility	82.70%

Stockholders' Equity (Details 2

Stockholders' Equity (Details 2) - Employee Stock Option [Member]	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Balance at beginning of the period (in shares) | shares	2,225,850
Number of Shares, Options granted (in shares) | shares	0
Number of Shares, Options exercised (in shares) | shares	(138,274)
Number of Shares, Options forfeited (in shares) | shares	0
Number of Shares, Options cancelled (in shares) | shares	(17,500)
Number of Shares, Balance at end of the period (in shares) | shares	2,070,076
Number of Shares, Options exercisable (in shares) | shares	1,315,533
Weighted average exercise price, Balance at beginning of the period (in dollars per share) | $ / shares	$ 6.12
Weighted average exercise price, Options granted (in dollars per share) | $ / shares	0
Weighted average exercise price, Options exercised (in dollars per share) | $ / shares	2.81
Weighted average exercise price, Options forfeited (in dollars per share) | $ / shares	0
Weighted average exercise price, Options cancelled (in dollars per share) | $ / shares	13.84
Weighted average exercise price, Balance at end of the period (in dollars per share) | $ / shares	6.28
Weighted average exercise price, Options exercisable (in dollars per share) | $ / shares	$ 5.76

Stockholders' Equity (Details 3

Stockholders' Equity (Details 3) - Employee Stock Option [Member] - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding	2,070,076	2,225,850
Options outstanding, Weighted average remaining contractual life (Years)	7 years 4 months 6 days
Options outstanding, Weighted average exercise price (in dollars per share)	$ 6.28	$ 6.12
Options outstanding, Aggregate intrinsic value	$ 847,022
Number of options exerciseable	1,315,533
Options exercisable, Weighted average remaining contractual life (Years)	6 years 3 months 18 days
Options exercisable, Weighted average exercise price (in dollars per share)	$ 5.76
Options exercisable, Aggregate intrinsic value	$ 734,502

Stockholders' Equity (Details 4

Stockholders' Equity (Details 4) - Restricted Stock [Member]	3 Months Ended
	Mar. 31, 2017shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, Balance at beginning of the period	0
Number of shares, Granted	287,000
Number of shares, Vested	0
Number of shares, Cancelled	0
Number of shares, Balance at end of the period	287,000

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Nov. 13, 2015	Apr. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 632,290	$ 733,502
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total	3,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 131,000	$ 22,000
Stock Issued During Period, Shares, New Issues	0	547,000
Proceeds from Issuance of Common Stock	$ 2,698,098	$ 0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 10 months 6 days
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 63.96
Class of Warrant or Right, Redemption Price of Warrants or Rights	$ 0.001
Class of Warrant or Right, Date from which Warrants or Rights Exercisable	Nov. 12, 2018
Common Stock [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	138,274	5,445
At The Market Offering [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues	666,853
Proceeds from Issuance of Common Stock	$ 2,700,000
Controlled Equity Offering Sales Agreement, Maximum Amount Authorized	20,000,000
Stock Issued During Period, Value, New Issues	$ 2,900,000
Shares Issued, Price Per Share	$ 4.33
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		1,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	946,020
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	287,000	0

Spriaso, LLC (Details Textual)

Spriaso, LLC (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Jul. 23, 2013	Mar. 31, 2017
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 which expired
Service Fee	$ 230