Lipocine (LPCN) 10-Q 13 Nov 13 2013 Q3 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 12, 2013
Document Information [Line Items]	'	'
Entity Registrant Name	'Lipocine Inc.	'
Entity Central Index Key	'0001535955	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Trading Symbol	'LPCN	'
Entity Common Stock, Shares Outstanding	'	11,056,377
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-13	'
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
Assets	'	'
Cash and cash equivalents	$36,839,026	$5,377,114
Prepaid and other current assets	251,749	90,934
Related-party receivable	0	3,815
Total current assets	37,090,775	5,471,863
Property and equipment, net of accumulated depreciation of $1,013,367 and $997,642, respectively	34,836	49,355
Other assets	45,000	45,000
Total assets	37,170,611	5,566,218
LiabilitiesandStockholders’Equity	'	'
Accounts payable	1,483,334	87,027
Accrued expenses	144,977	107,950
Income taxes payable	0	17,836
Total current liabilities	1,628,311	212,813
Income taxes payable, noncurrent	0	37,212
Total liabilities	1,628,311	250,025
Commitments and contingencies (notes 7 and 9)	'	'
Stockholders’equity:	'	'
Preferredstock,parvalue$0.0001pershare,10,000,000sharesauthorized;zeroissuedandoutstanding	0	0
Common stock, par value $0.0001 per share, 100,000,000 shares authorized; 10,952,593 and 4,455,790 issued and outstanding	1,095	446
Additional paid-in capital	79,015,280	42,590,042
Accumulated deficit	-43,474,075	-37,274,295
Total stockholders' equity	35,542,300	5,316,193
Totalliabilitiesandstockholders’equity	$37,170,611	$5,566,218

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets [Parenthetical] (USD $)	Sep. 30, 2013	Dec. 31, 2012
Accumulated depreciation	$1,013,367	$997,642
Preferred Stock, Par Value	$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 Share	$0.00	$0.00
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	10,952,593	4,455,790
Common Stock, Shares, Outstanding	10,952,593	4,455,790

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:	'	'	'	'
License and milestone revenue	$0	$0	$0	$7,523,437
Research revenue	0	0	0	186,233
Total revenues	0	0	0	7,709,670
Operating expenses:	'	'	'	'
Research and development	1,568,969	547,821	2,657,936	1,696,428
General and administrative	1,181,894	467,180	2,601,557	1,256,691
Reverse merger costs	794,902	0	1,011,630	0
Operating income (loss)	-3,545,765	-1,015,001	-6,271,123	4,756,551
Other income, net	15,084	2,295	16,295	8,436
Income (loss) before income tax expense	-3,530,681	-1,012,706	-6,254,828	4,764,987
Income tax benefit (expense)	55,342	-171	55,048	-1,581
Net income (loss)	($3,475,339)	($1,012,877)	($6,199,780)	$4,763,406
Basic earnings (loss) per share attributable to common stock (in dollers per share)	($0.39)	($0.23)	($1.04)	$1.05
Weighted average common shares outstanding, basic (in shares)	8,914,666	4,455,790	5,958,415	4,455,790
Diluted earnings (loss) per share attributable to common stock (in dollers per share)	($0.39)	($0.23)	($1.04)	$1.05
Weighted average common shares outstanding, diluted (in shares)	8,914,666	4,455,790	5,958,415	4,455,790

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash from operating activities:	'	'
Net income (loss)	($6,199,780)	$4,763,406
Adjustments to reconcile net income (loss) to cash used in operating activities:	'	'
Depreciation and amortization	15,725	31,594
Forgiveness of related party receivable	3,815	0
Stock-based compensation expense	758,767	116,844
Changes in operating assets and liabilities:	'	'
Accounts receivable	0	291,198
Prepaid and other current assets	-160,815	14,908
Related party receivable	0	3,387
Accounts payable	1,124,921	152,567
Accrued expenses	37,027	10,131
Income taxes payable	-55,048	513
Deferred revenues	0	-7,523,437
Cash used in operating activities	-4,475,388	-2,138,889
Cash used in investing activities:	'	'
Purchases of property and equipment	-1,206	-12,386
Cash used in investing activities	-1,206	-12,386
Cash used in financing activities:	'	'
Proceeds from stock option exercise	10,576	0
Net proceeds from common stock offering	35,981,030	0
Purchase of restricted stock from employees	-53,100	0
Cash provided by financing activities	35,938,506	0
Net increase (decrease) in cash and cash equivalents	31,461,912	-2,151,275
Cash and equivalents at beginning of period	5,377,114	8,567,823
Cash and equivalents at end of period	36,839,026	6,416,548
Supplemental disclosure of non-cash investing and financing activities:	'	'
Accrued common stock offering costs	$271,386	$0

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2013
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 nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2013.
	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, 2012.
	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.

Merger_Agreement

Merger Agreement	9 Months Ended
	Sep. 30, 2013
Business Combinations [Abstract]	'
Business Combination Disclosure [Text Block]	'
	(2)      Merger Agreement
	On July 24, 2013, Marathon Bar Corp. (“Marathon Bar”), a Delaware corporation and MBAR Acquisition Corp. (“Merger Sub”), a wholly owned subsidiary of Marathon Bar, and Lipocine Operating Inc. (“Lipocine Operating”), a privately held company incorporated in Delaware, executed an Agreement and Plan of Merger (“Merger Agreement”). Pursuant to the Merger Agreement, Merger Sub merged with and into Lipocine Operating and Lipocine Operating was the surviving entity. Additionally pursuant to the Merger Agreement, Marathon Bar changed its name to Lipocine Inc.
	The Merger is accounted for as a reverse-merger and recapitalization. Lipocine Operating is the acquirer for financial reporting purposes and Marathon Bar is the acquired company. Consequently, the assets and liabilities and the operations that are reflected in the historical financial statements prior to the Merger are those of Lipocine Operating and are recorded at the historical cost basis of Lipocine Operating, and the consolidated financial statements after completion of the Merger include the assets, liabilities and operations of Marathon Bar and Lipocine Operating (“Combined Company”), from the closing date of the Merger. Additionally all historical equity accounts and awards of Lipocine Operating, including par value per share, share and per share numbers, have been adjusted to reflect the number of shares received in the Merger.

Earnings_Loss_per_Share

Earnings (Loss) per Share	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Earnings Per Share [Text Block]	'
	(3)      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 nine months ended September 30, 2013 and 2012 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 nonforfeitable 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, 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 and nine months ended September 30, 2013 and 2012. The allocation of undistributed earnings (losses) to common stock in the table below excludes zero net income (loss) allocated to the participating securities for the three months ended September 30, 2013 and 2012, and zero and $105,795 for the nine months ended September 30, 2013 and 2012.
		Three Months Ended September 30,					Nine Months Ended September 30,
		2013			2012		2013		2012
	Basic net income (loss) per share attributable to common stock:
	Numerator
	Net income (loss)	$	-3,475,339		$	-1,012,877	$	-6,199,780	$	4,657,611
	Denominator
	Weighted avg. common shares outstanding		8,914,666			4,455,790		5,958,415		4,455,790
	Basic earnings (losses) per share attributable to common stock	$	-0.39		$	-0.23	$	-1.04	$	1.05
	Diluted net income (loss) per share attributable to common stock:
	Numerator
	Net income (loss)	$	-3,475,339		$	-1,012,877	$	-6,199,780	$	4,657,611
	Denominator
	Weighted avg. common shares outstanding		8,914,666			4,455,790		5,958,415		4,455,790
	Diluted net income (loss) per share attributable to common stock	$	-0.39		$	-0.23	$	-1.04	$	1.05
	The computation of diluted earnings (loss) per share for the three and nine months ended September 30, 2013 and 2012 does not include the following unvested restricted stock, stock options and warrants to purchase shares in the computation of diluted earnings (loss) per share because these instruments were antidilutive:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013	2012
	Stock Options	1,214,749		946,281		1,214,749	946,281
	Unvested Restricted Stock	103,784		101,211		103,784	101,211
	Warrants	20,467		20,467		20,467	20,467

Fair_Value

Fair Value	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value Disclosures [Text Block]	'
	(4)     Fair Value
	For prepaid and other current assets, related-party receivable, accounts payable, and accrued expenses the carrying amounts approximate fair value because of the short maturity of these instruments. Assets and liabilities that are 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) consist of the following at September 30, 2013 and December 31, 2012:
		September 30,		Fair value measurements at reporting date using
		2013		Level 1		Level 2 inputs		Level 3 inputs
				inputs
	Assets:
	Cash equivalents-money market funds	$	1,933,334	$	1,933,334	$	—	$	—
		$	1,933,334	$	1,933,334	$	—	$	—
		December 31,		Fair value measurements at reporting date using
		2012		Level 1		Level 2 inputs		Level 3 inputs
				inputs
	Assets:
	Cash equivalents-money market funds	$	2,686,727	$	2,686,727	$	—	$	—
		$	2,686,727	$	2,686,727	$	—	$	—
	The following methods and assumptions were used to determine the fair value of each class of assets 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. Due to the high ratings and short-term nature of the funds, the Company considers all cash equivalents as Level 1.

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2013
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 September 30, 2013 and December 31, 2012, the Company has 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.
	On January 2, 2013, an extension of the research and development credit in the U.S. was signed into law. While the Company fully intends to take advantage of the research and development credit for the 2012 and 2013 tax years, no benefit has been recorded in the financial statements due to the full valuation allowance position in the U.S.
	During the three months ended September 30, 2013, the Company reversed accrued income tax payable of $55,342 related to an uncertain tax position that was taken in a prior period.

Collaborative_Agreements

Collaborative Agreements	9 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Collaborative Arrangement Disclosure [Text Block]	'
	(6)      Collaborative Agreements
	(a)      Abbott Products, Inc.
	On May 15, 2009, the Company granted an exclusive license to Solvay Pharmaceuticals, Inc. (later acquired by Abbott Products, Inc.) to certain rights to its intellectual property in exchange for an up-front license fee of $4,000,000, certain specified payments upon achievement of various development and commercial milestones or the passage of time and also a royalty on related net sales. The Company also received research revenue for services rendered during the development period and reimbursement of out-of-pocket expenses.
	The Company received the up-front fee of $4,000,000 in 2009 and milestone payments, related solely to the passing of time and not the achievement of any of the development or commercial milestones, totaling $3,000,000 and $2,000,000 in 2011 and 2010. The up-front license fee and milestone payments were recorded as a single unit of account, as the delivered technology does not have stand-alone value. Total consideration was recorded using cumulative catch-up method as payments were deemed collectible over the estimated term of the contract for which the Company has continuing performance obligations. The agreement was terminated effective March 29, 2012, and the balance of deferred revenue of $7,523,437 was recognized as licensing and milestone revenue during the nine months ended September 30, 2012. The Company also earned research revenue under the agreement of zero and $186,233 during the three and nine months ended September 30, 2012. No amounts were recorded for the three or nine months ended September 30, 2013.
	As part of the termination, we reacquired the rights to the intellectual property from Abbott in March 2012. 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 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%.
	(b)      Nexgen Pharma, Inc.
	On May 21, 2011, the Company entered into a collaborative product development agreement with Nexgen Pharma, Inc. (“Nexgen”). Under the agreement, the parties agreed to jointly develop certain products for the treatment of coughs and colds and to share future revenues from those products. Nexgen agreed to reimburse the Company at cost for all future clinical costs incurred in the development of the products. No amounts were reimbursed during the three months ended September 30, 2013 and 2012 and a total of $468,348 and $397,852 during the nine months ended September 30, 2013 and 2012 was reimbursed for related expenses under the agreement and recorded net in research and development expense. The Company is responsible for certain new drug application (“NDA”) filing costs with the Food and Drug Administration (“FDA”) under terms of this contract and, additionally, will participate on a joint steering committee with Nexgen for the development, regulatory, and manufacturing strategy of product candidates. On July 23, 2013, the Company transferred all rights and obligations under this agreement to Spriaso, LLC (see note 10).
	(c)      Contract Research and Development
	The Company has entered into agreements with a number of independent contractors, primarily clinical researchers, who serve as advisors to the Company and various contract organizations that conduct preclinical and clinical development work and manufacturing on behalf of the Company. The Company incurred expenses of $940,139 and $129,012 for the three months ended September 30, 2013 and 2012, and $1,478,534 and $707,086 for the nine months ended September 30, 2013 and 2012 under these agreements.

Leases

Leases	9 Months Ended
	Sep. 30, 2013
Leases [Abstract]	'
Leases of Lessee Disclosure [Text Block]	'
	(7)      Leases
	Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) as of September 30, 2013 are:
		Operating
		leases
	Year ending December 31:
	2013	$	66,281
	2014		247,841
	Total minimum lease payments	$	314,122
	The Company’s rent expense was $88,864 and $84,952 for the three months ended September 30, 2013 and 2012 and $266,591 and $254,857 for the nine months ended September 30, 2013 and 2012.

Stockholders_Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2013
Stockholders Equity Note [Abstract]	'
Stockholders Equity Note Disclosure [Text Block]	'
	(8)      Stockholders’ Equity
	(a)     Sale of Common Stock
	On July 30, 2013, the Company sold 6,336,664 shares of common stock to certain accredited investors. Net proceeds to the Company from the sale totaled  approximately $35.7 million, after deducting the direct and incremental expenses of the offering and the commissions in connection with the offering paid by the Company of $2.3 million.
	(b)      Stock Option Plan
	In January 2011, the board of directors adopted the 2011 Equity Incentive Plan (the “2011 Plan”) that provides for the granting of nonqualified and incentive stock options 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. An aggregate of 1,792,429 shares are authorized for issuance under the amended 2011 Plan, with 378,406 shares remaining available for grant as of September 30, 2013.   A summary of stock option activity is as follows:
		Outstanding stock options
		Number of			Weighted
		shares			average
					exercise price
	Balance at December 31, 2012		946,281		$	6.19
	Options granted		285,527			3.38
	Options exercised		-3,761			2.81
	Options forfeited		-8,610			5.53
	Options cancelled		-4,688			4.85
	Balance at September 30, 2013		1,214,749			3.13
	Options exercisable at September 30, 2013		899,692			3.05
	The following table summarizes information about stock options outstanding at September 30, 2013:
	Options outstanding							Options exercisable
	Number	Weighted		Weighted			Number			Weighted			Weighted
	outstanding	average		average			exerciseable			average			average
		remaining		exercise price						remaining			exercise price
		contractual								contractual
		life								life
		(Years)								(Years)
	1,214,749	7.66		$	3.13			899,692			7.21		$	3.05
	(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. The 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.
	On June 28, 2013, the Company accelerated the vesting and repurchased a combined total of 8,625 shares of restricted common stock from six employees at a price of $6.16 per share. The acceleration of the vesting resulted in the recognition of $16,437 in stock-based compensation expense. The repurchased shares were retired during the reverse merger and charged against additional paid-in-capital (see note 2).
	One September 16, 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.
	A summary of unvested restricted common stock activity is as follows:
		Number of unvested
		restricted shares
	Balance at December 31, 2012		99,869
	Granted		12,000
	Vested		-7,763
	Cancelled		-322
	Balance at September 30, 2013		103,784
	(d)      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.  These warrants expire on December 31, 2015.    As of September 30, 2013, all warrants remain outstanding.
	(e)      Share-Based Payments
	The Company recognizes stock-based compensation expense for grants of stock option awards 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 has granted 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 revaluation over their vesting terms.
	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 $421,950 was recorded as a result of the modifications. During the three months ended September 30, 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 is being recognized ratably over that period.
	Stock-based compensation cost that has been expensed in the statements of operations amounted to $160,281 and $36,896 for the three months ended September 30, 2013 and 2012 and $758,767 and $116,844 for the nine months ended September 30, 2013 and 2012, allocated as follows:
		Three months ended						Nine months ended
		September 30,						September 30,
		2013			2012			2013			2012
	Research and development	$	46,594		$	10,726		$	236,314		$	36,070
	General and administrative		113,687			26,170			522,453			80,774
		$	160,281		$	36,896		$	758,767		$	116,844
	As of September 30, 2013, there was approximately $808,632 of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Company’s Incentive Plan. The cost will be expensed pro-rata over the vesting period. The cumulative amount of compensation expense recognized at any point in time is at least equal to the portion of the award that is vested at that date. The Company issued 51,390  stock options and 12,000 restricted stock awards during the three months ended September 30, 2013. The weighted average fair value of stock options granted during the three and nine months ended September 30, 2013, was approximately $3.55 and $2.06, respectively.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
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.

Agreement_with_Spriaso_LLC

Agreement with Spriaso, LLC	9 Months Ended
	Sep. 30, 2013
Agreement with Spriaso LLC [Abstract]	'
Agreement with Spriaso LLC Disclosure [Text Block]	'
	(10)   Agreement with Spriaso, LLC
	On July 23, 2013, the Company entered into an assignment/license and a services agreement with Spriaso, LLC (“Spriaso”), a related-party that is majority-owned by the current 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 Nexgen. In exchange, the Company will receive a royalty of 20 percent of the net proceeds received by Spriaso, up to a maximum of $10 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 will provide facilities and up to 10 percent of the services of certain employees to Spriaso for a period of up to 18 months. The Company may provide additional services to be charged at cost to Spriaso. Spriaso may file its first NDA prior to the Company filing its first NDA and as an affiliated entity it will use up the one-time waiver for user fees for a small business submitting its first human drug application to the FDA.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2013
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]	'
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	'
	(11)     Recent Accounting Pronouncements
	In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an amendment to FASB Accounting Standards Codification ("ASC") Topic 740, Income Taxes. This update clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. In situations where a net operating loss carryforward, a similar tax loss or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be netted with the deferred tax asset. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013 for public companies and after December 15, 2014 for non-public companies. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company’s financial position or results of operations.

Earnings_Loss_per_ShareTables

Earnings (Loss) per Share(Tables)	9 Months Ended
	Sep. 30, 2013
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 nine months ended September 30, 2013 and 2012.
		Three Months Ended September 30,					Nine Months Ended September 30,
		2013			2012		2013		2012
	Basic net income (loss) per share attributable to common stock:
	Numerator
	Net income (loss)	$	-3,475,339		$	-1,012,877	$	-6,199,780	$	4,657,611
	Denominator
	Weighted avg. common shares outstanding		8,914,666			4,455,790		5,958,415		4,455,790
	Basic earnings (losses) per share attributable to common stock	$	-0.39		$	-0.23	$	-1.04	$	1.05
	Diluted net income (loss) per share attributable to common stock:
	Numerator
	Net income (loss)	$	-3,475,339		$	-1,012,877	$	-6,199,780	$	4,657,611
	Denominator
	Weighted avg. common shares outstanding		8,914,666			4,455,790		5,958,415		4,455,790
	Diluted net income (loss) per share attributable to common stock	$	-0.39		$	-0.23	$	-1.04	$	1.05
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	'
	The computation of diluted earnings (loss) per share for the three and nine months ended September 30, 2013 and 2012 does not include the following unvested restricted stock, stock options and warrants to purchase shares in the computation of diluted earnings (loss) per share because these instruments were antidilutive:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013	2012
	Stock Options	1,214,749		946,281		1,214,749	946,281
	Unvested Restricted Stock	103,784		101,211		103,784	101,211
	Warrants	20,467		20,467		20,467	20,467

Fair_Value_Tables

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value Measurements, Nonrecurring [Table Text Block]	'
	Assets and liabilities that are 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) consist of the following at September 30, 2013 and December 31, 2012:
		September 30,		Fair value measurements at reporting date using
		2013		Level 1		Level 2 inputs		Level 3 inputs
				inputs
	Assets:
	Cash equivalents-money market funds	$	1,933,334	$	1,933,334	$	—	$	—
		$	1,933,334	$	1,933,334	$	—	$	—
		December 31,		Fair value measurements at reporting date using
		2012		Level 1		Level 2 inputs		Level 3 inputs
				inputs
	Assets:
	Cash equivalents-money market funds	$	2,686,727	$	2,686,727	$	—	$	—
		$	2,686,727	$	2,686,727	$	—	$	—

Leases_Tables

Leases (Tables)	9 Months Ended
	Sep. 30, 2013
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 September 30, 2013 are:
		Operating
		leases
	Year ending December 31:
	2013	$	66,281
	2014		247,841
	Total minimum lease payments	$	314,122

Stockholders_Equity_Tables

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2013
Stockholders Equity Note [Abstract]	'
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
		shares			average
					exercise price
	Balance at December 31, 2012		946,281		$	6.19
	Options granted		285,527			3.38
	Options exercised		-3,761			2.81
	Options forfeited		-8,610			5.53
	Options cancelled		-4,688			4.85
	Balance at September 30, 2013		1,214,749			3.13
	Options exercisable at September 30, 2013		899,692			3.05
Schedule of Share-based Compensation, Activity [Table Text Block]	'
	The following table summarizes information about stock options outstanding at September 30, 2013:
	Options outstanding							Options exercisable
	Number	Weighted		Weighted			Number			Weighted			Weighted
	outstanding	average		average			exerciseable			average			average
		remaining		exercise price						remaining			exercise price
		contractual								contractual
		life								life
		(Years)								(Years)
	1,214,749	7.66		$	3.13			899,692			7.21		$	3.05
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	'
	A summary of unvested restricted common stock activity is as follows:
		Number of unvested
		restricted shares
	Balance at December 31, 2012		99,869
	Granted		12,000
	Vested		-7,763
	Cancelled		-322
	Balance at September 30, 2013		103,784
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 $160,281 and $36,896 for the three months ended September 30, 2013 and 2012 and $758,767 and $116,844 for the nine months ended September 30, 2013 and 2012, allocated as follows:
		Three months ended						Nine months ended
		September 30,						September 30,
		2013			2012			2013			2012
	Research and development	$	46,594		$	10,726		$	236,314		$	36,070
	General and administrative		113,687			26,170			522,453			80,774
		$	160,281		$	36,896		$	758,767		$	116,844

Earnings_Loss_per_Share_Detail

Earnings (Loss) per Share (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Basic net income (loss) per share attributable to common stock: Numerator	'	'	'	'
Net income (loss)	($3,475,339)	($1,012,877)	($6,199,780)	$4,657,611
Denominator	'	'	'	'
Weighted avg. common shares outstanding (in shares)	8,914,666	4,455,790	5,958,415	4,455,790
Basic earnings (losses) per share attributable to common stock (in dollers per share)	($0.39)	($0.23)	($1.04)	$1.05
Diluted net income (loss) per share attributable to common stock: Numerator	'	'	'	'
Net income (loss)	($3,475,339)	($1,012,877)	($6,199,780)	$4,657,611
Denominator	'	'	'	'
Weighted avg. common shares outstanding (in shares)	8,914,666	4,455,790	5,958,415	4,455,790
Diluted net income (loss) per share attributable to common stock (in dollers per share)	($0.39)	($0.23)	($1.04)	$1.05

Earnings_Loss_per_Share_Detail1

Earnings (Loss) per Share (Details 1)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Employee Stock Option [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,214,749	946,281	1,214,749	946,281
Unvested Restricted Stock [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	103,784	101,211	103,784	101,211
Warrant [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	20,467	20,467	20,467	20,467

Earnings_Loss_per_Share_Detail2

Earnings (Loss) per Share (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Undistributed Earnings Allocated to Participating Securities	$0	$0	$0	$105,795

Fair_Value_Details

Fair Value (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Assets:	'	'
Cash equivalents-money market funds	$1,933,334	$2,686,727
Fair Value, Inputs, Level 1 [Member]	'	'
Assets:	'	'
Cash equivalents-money market funds	1,933,334	2,686,727
Fair Value, Inputs, Level 2 [Member]	'	'
Assets:	'	'
Cash equivalents-money market funds	0	0
Fair Value, Inputs, Level 3 [Member]	'	'
Assets:	'	'
Cash equivalents-money market funds	0	0
Money Market Funds [Member]	'	'
Assets:	'	'
Cash equivalents-money market funds	1,933,334	2,686,727
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]	'	'
Assets:	'	'
Cash equivalents-money market funds	1,933,334	2,686,727
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member]	'	'
Assets:	'	'
Cash equivalents-money market funds	0	0
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member]	'	'
Assets:	'	'
Cash equivalents-money market funds	$0	$0

Income_Taxes_Details_Textual

Income Taxes (Details Textual) (USD $)	Sep. 30, 2013
Reversal Of Liability For Uncertain Tax Positions Current	$55,342

Collaborative_Agreements_Detai

Collaborative Agreements (Details Textual) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Research Revenue	$0	$0	$0	$186,233	'	'	'
Research and Development Expense, Total	1,568,969	547,821	2,657,936	1,696,428	'	'	'
Other Companies [Member] | Collaborative Arrangement [Member]	'	'	'	'	'	'	'
Research and Development Expense, Total	940,139	129,012	1,478,534	707,086	'	'	'
Abbott Products, Inc. [Member] | Collaborative Arrangement [Member]	'	'	'	'	'	'	'
Upfront License Fees Received	'	'	'	'	'	'	4,000,000
Milestone Payments Received	'	'	'	'	3,000,000	2,000,000	'
License Fees And Milestones Revenue	'	'	'	7,523,437	'	'	'
Research Revenue	0	0	0	186,233	'	'	'
Agreement Termination Date	'	'	'	29-Mar-12	'	'	'
Description Of Royalty Payment	'	'	'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.	'	'	'	'
Maximum royalty payment for the first two calendar years	'	'	1,000,000	'	'	'	'
Conditional Royalty Reduction Percentage	'	'	50.00%	'	'	'	'
Collaborative Product Development Agreement With Nexgen Pharma, Inc. [Member] | Research and Development Expense [Member]	'	'	'	'	'	'	'
Reimbursement Revenue	$0	$0	$468,348	$397,852	'	'	'

Leases_Details

Leases (Details) (USD $)	Sep. 30, 2013
Year ending December 31:	'
2013	$66,281
2014	247,841
Total minimum lease payments	$314,122

Leases_Details_Textual

Leases (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Operating Leases, Rent Expense	$88,864	$84,952	$266,591	$254,857

Stockholders_Equity_Details

Stockholders' Equity (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Options, Outstanding beginning of period (in shares)	946,281
Options, Granted (in shares)	285,527
Options, exercised (in shares)	-3,761
Options, Forfeited (in shares)	-8,610
Options, Cancelled (in shares)	-4,688
Options, Outstanding end of period (in shares)	1,214,749
Options, Exercisable ending of period (in shares)	899,692
Options, Outstanding, Weighted Average Exercise Price, beginning of period (in dollars per share)	$6.19
Options, Weighted Average Exercise Price, Granted (in dollars per share)	$3.38
Options, Weighted Average Exercise Price, Exercised (in dollars per share)	$2.81
Options, Weighted Average Exercise Price, Forfeited (in dollars per share)	$5.53
Options, Weighted Average Exercise Price, Cancelled (in dollars per share)	$4.85
Options, Outstanding, Weighted Average Exercise Price, end of period (in dollars per share)	$3.13
Options, Weighted Average Exercise Price, Exercisable end of period (in dollars per share)	$3.05

Stockholders_Equity_Details_1

Stockholders' Equity (Details 1) (USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Number of option outstanding	1,214,749	946,281
Options outstanding, Weighted average remaining contractual life (Years)	'7 years 7 months 28 days	'
Options outstanding, Weighted average exercise price	$3.13	$6.19
Number of option exerciseable	899,692	'
Options exercisable, Weighted average remaining contractual life (Years)	'7 years 2 months 16 days	'
Options exercisable, Weighted average exercise price	$3.05	'

Stockholders_Equity_Details_2

Stockholders' Equity (Details 2)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2010
			Restricted Stock [Member]	Restricted Stock [Member]
Number of shares, Balance at December 31, 2012	'	'	99,869	'
Number of shares, Granted	3.55	2.06	12,000	112,720
Number of shares, Vested	'	'	-7,763	'
Number of shares, Cancelled	'	'	-322	'
Number of shares, Balance at September 30, 2013	'	'	103,784	'

Stockholders_Equity_Details_3

Stockholders' Equity (Details 3) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Allocated Share-based Compensation Expense	$160,281	$36,896	$758,767	$116,844
Research and Development Expense [Member]	'	'	'	'
Allocated Share-based Compensation Expense	46,594	10,726	236,314	36,070
General and Administrative Expense [Member]	'	'	'	'
Allocated Share-based Compensation Expense	$113,687	$26,170	$522,453	$80,774

Stockholders_Equity_Details_Te

Stockholders' Equity (Details Textual) (USD $)

1 Months Ended

3 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

12 Months Ended

3 Months Ended

9 Months Ended

Dec. 23, 2003

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2013

Jun. 28, 2013

Sep. 30, 2013

Dec. 31, 2010

Sep. 30, 2013

Sep. 30, 2013

Performance Shares [Member]

Investor [Member]

Restricted Stock [Member]

Restricted Stock [Member]

Restricted Stock [Member]

Restricted Stock Award [Member]

2011 Equity Incentive Plan

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized

'

'

'

'

'

'

'

'

'

'

'

1,792,429

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant

'

'

'

'

'

'

'

'

'

'

'

378,406

Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested Percentage

'

'

'

'

'

'

'

'

'

50.00%

'

'

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value

'

'

'

'

'

'

'

'

'

$5.75

$12,000

'

Treasury Stock, Shares, Acquired

'

'

'

'

'

'

'

8,625

'

'

'

'

Treasury Stock Acquired, Average Cost Per Share

'

'

'

'

'

'

'

$6.16

'

'

'

'

Share-based Compensation, Total

'

$160,281

$36,896

$758,767

$116,844

'

'

$16,437

'

'

'

'

Class Of Warrant Or Right Issued

20,467

'

'

'

'

'

'

'

'

'

'

'

Class Of Warrant Or Right Exercise Price Of Warrants Issued

$12.21

'

'

'

'

'

'

'

'

'

'

'

Class Of Warrant Or Right Amended Expiration Date

31-Dec-15

'

'

'

'

'

'

'

'

'

'

'

Share Based Compensation Arrangement By Share Based Payment Award Stock Options Contractual Term

'

'

'

'

'

'

'

'

'

'

'

'10 years

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period

'

3.55

'

2.06

'

'

'

'

12,000

112,720

'

'

Stock Issued During Period, Shares, New Issues

'

'

'

'

'

'

6,336,664

'

'

'

'

'

Proceeds from Issuance of Common Stock

'

'

'

35,981,030

0

'

35,700,000

'

'

'

'

'

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares

'

'

'

'

'

907,336

'

'

'

'

'

'

Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Exercise Price, Beginning Balance

'

'

'

'

'

$2.81

'

'

'

'

'

'

Allocated Share-based Compensation Expense

'

160,281

36,896

758,767

116,844

421,950

'

'

'

'

'

'

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.

'

'

'

'

'

'

Payments of Stock Issuance Costs

'

'

'

'

'

'

2,300,000

'

'

'

'

'

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total

'

$808,632

'

$808,632

'

'

'

'

'

'

'

'

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

'

'

'

285,527

'

'

'

'

'

'

51,390

'

Agreement_with_Spriaso_LLC_Det

Agreement with Spriaso, LLC (Details Textual) (Spriaso, LLC [Member], USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013
Spriaso, LLC [Member]	'
Percentage of Fee to be Received Under License Agreement	20.00%
Maximum Amount of Fee to be Received under License Agreement	$10
Description of Terms Under License Agreement	'Under the service agreement, the Company will provide facilities and up to 10 percent of the services of certain employees to Spriaso for a period of up to 18 months.