Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For Quarterly Period ended June 30, 2024

☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ________ to ________.

Commission File Number: 001-36357

LIPOCINE INC.

(Exact name of registrant as specified in its charter)

Delaware		99-0370688
(State or Other Jurisdiction of Incorporation or Organization)		(IRS Employer Identification No.)

675 Arapeen Drive, Suite 202, Salt Lake City, Utah		84108
(Address of Principal Executive Offices)		(Zip Code)

801-994-7383

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.0001 per share		LPCN		The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes: ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer	☐
Accelerated filer	☐
Non-accelerated filer	☒
Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Outstanding Shares

As of August 8, 2024 the registrant had 5,347,940 shares of common stock outstanding.

TABLE OF CONTENTS

			Page

PART I—FINANCIAL INFORMATION

	Item 1.	Financial Statements	3

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

	Item 3.	Quantitative and Qualitative Disclosures About Market Risks	40

	Item 4.	Controls and Procedures	40

PART II—OTHER INFORMATION

	Item 1.	Legal Proceedings	40

	Item 1A.	Risk Factors	41

	Item 6.	Exhibits	42

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

LIPOCINE INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

	June 30,			December 31,
	2024			2023
Assets
Current assets:
Cash and cash equivalents	$	5,553,371		$	4,771,758
Marketable investment securities		16,995,424			17,263,788
Accrued interest income		63,636			52,254
Prepaid and other current assets		297,051			773,424

Total current assets		22,909,482			22,861,224

Property and equipment, net of accumulated depreciation of $1,199,215 and $1,182,191 respectively		99,071			116,095
Other assets		23,753			23,753

Total assets	$	23,032,306		$	23,001,072

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	448,798		$	1,395,977
Accrued expenses		1,233,477			1,218,486
Warrant liability		141,668			17,166

Total current liabilities		1,823,943			2,631,629

Total liabilities		1,823,943			2,631,629

Commitments and contingencies (notes 7, 8, 9 and 10)		-			-

Stockholders’ equity:

Common stock, par value $0.0001 per share, 200,000,000 shares authorized; 5,348,276 and 5,316,166 issued, and 5,347,940 and 5,315,830 outstanding, respectively outstanding		8,863			8,860
Additional paid-in capital		220,582,158			220,171,250
Treasury stock at cost, 336 shares		(40,712	)		(40,712	)
Accumulated other comprehensive gain (loss)		(9,719	)		7,259
Accumulated deficit		(199,332,227	)		(199,777,214	)

Total stockholders’ equity		21,208,363			20,369,443

Total liabilities and stockholders’ equity	$	23,032,306		$	23,001,072

See accompanying notes to condensed consolidated financial statements

LIPOCINE INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023

Revenues:
License revenue	$	-		$	-		$	7,500,000		$	54,990
Royalty revenue		89,565			-			206,738			-
Total revenues		89,565			-			7,706,738			54,990

Operating expenses:
Research and development		1,874,721			2,515,211			4,693,646			5,621,521
General and administrative		1,507,412			1,440,394			3,083,131			2,727,708
Total operating expenses		3,382,133			3,955,605			7,776,777			8,349,229

Operating loss		(3,292,568	)		(3,955,605	)		(70,039	)		(8,294,239	)

Other income (expense):
Interest and investment income		308,845			379,521			640,209			749,991
Unrealized gain (loss) on warrant liability		(84,430	)		27,455			(124,502	)		125,589
Total other income, net		224,415			406,976			515,707			875,580

Income (loss) before income tax expense		(3,068,153	)		(3,548,629	)		445,668			(7,418,659	)

Income tax expense		(481	)		-			(681	)		(200	)

Net income (loss)		(3,068,634	)		(3,548,629	)		444,987			(7,418,859	)

Issuance of Series B preferred stock dividend		-			-			-			(89	)
Net income (loss) attributable to common shareholders	$	(3,068,634	)	$	(3,548,629	)	$	444,987		$	(7,418,948	)

Basic earnings (loss) per share attributable to common stock	$	(0.57	)	$	(0.68	)	$	0.08		$	(1.42	)

Weighted average common shares outstanding, basic		5,343,922			5,234,830			5,329,876			5,234,830

Diluted earnings (loss) per share attributable to common stock	$	(0.56	)	$	(0.68	)	$	0.10		$	(1.44	)

Weighted average common shares outstanding, diluted		5,343,922			5,234,830			5,459,204			5,234,830

Comprehensive income (loss):
Net income (loss)	$	(3,068,634	)	$	(3,548,629	)	$	444,987		$	(7,418,859	)
Net unrealized gain (loss) on marketable investment securities		885			(19,053	)		(16,978	)		4,509

Comprehensive income (loss)	$	(3,067,749	)	$	(3,567,682	)	$	428,009		$	(7,414,350	)

See accompanying notes to condensed consolidated financial statements

LIPOCINE INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the Three and Six Months Ended June 30, 2024 and 2023

(Unaudited)

	Number of Shares			Amount			Number of Shares		Amount		Number of Shares		Amount			Additional Paid-In Capital			Other Comprehensive Gain (Loss)			Accumulated Deficit			Total Stockholders’ Equity
	Mezzanine Equity						Stockholder’s Equity
	Series B Preferred Stock						Common Stock				Treasury Stock								Accumulated
	Number of Shares			Amount			Number of Shares		Amount		Number of Shares		Amount			Additional Paid-In Capital			Other Comprehensive Gain (Loss)			Accumulated Deficit			Total Stockholders’ Equity

Balances at March 31, 2023		88,511			9			5,234,830		8,852		336		(40,712	)		219,284,000			3,241			(187,295,362	)		31,960,028

Net loss		-			-			-		-		-		-			-			-			(3,548,629	)		(3,548,629	)

Unrealized net loss on marketable investment securities		-			-			-		-		-		-			-			(19,053	)		-			(19,053	)

Stock-based compensation		-			-			-		-		-		-			164,865			-			-			164,865

Redemption of Series B preferred stock		(88,511	)		(9	)		-		-		-		-			9			-			-			-

Costs associated with ATM Offering		-			-			-		-		-		-			(5,200	)		-			-			(5,200	)

Balances at June 30, 2023		-		$	-			5,234,830	$	8,852		336	$	(40,712	)	$	219,443,674		$	(15,812	)	$	(190,843,991	)	$	28,552,011

	Series B Preferred Stock						Common Stock				Treasury Stock								Accumulated
	Number of Shares			Amount			Number of Shares		Amount		Number of Shares		Amount			Additional Paid-In Capital			Other Comprehensive Gain (Loss)			Accumulated Deficit			Total Stockholders’ Equity

Balances at December 31, 2022		-		$	-			5,234,830	$	8,852		336	$	(40,712	)	$	219,112,164		$	(20,321	)	$	(183,425,043	)	$	35,634,940

Net loss		-			-			-		-		-		-			-			-			(7,418,859	)		(7,418,859	)

Unrealized net gain on marketable investment securities		-			-			-		-		-		-			-			4,509			-			4,509

Stock-based compensation		-			-			-		-		-		-			342,637			-			-			342,637

Issuance of Series B preferred stock		88,511			9			-		-		-		-			80			-			(89	)		-

Redemption of Series B preferred stock		(88,511	)		(9	)		-		-		-		-			9			-			-			-

Common stock sold through ATM offering		-			-			-		-		-		-			(11,216	)		-			-			(11,216	)

Balances at June 30, 2023		-		$	-			5,234,830	$	8,852		336	$	(40,712	)	$	219,443,674		$	(15,812	)	$	(190,843,991	)	$	28,552,011

	Mezzanine Equity				Stockholder’s Equity
	Series B Preferred Stock				Common Stock				Treasury Stock							Accumulated
	Number of Shares		Amount		Number of Shares		Amount		Number of Shares		Amount			Additional Paid-In Capital		Other Comprehensive Gain (Loss)			Accumulated Deficit			Total Stockholders’ Equity

Balances at March 31, 2024		-		-		5,315,830		8,860		336		(40,712	)		220,262,456		(10,604	)		(196,263,593	)		23,956,407

Net loss		-		-		-		-		-		-			-		-			(3,068,634	)		(3,068,634	)

Unrealized net gain on marketable investment securities		-		-		-		-		-		-			-		885			-			885

Stock-based compensation		-		-		-		-		-		-			102,265		-			-			102,265

Common stock sold through ATM Offering		-		-		32,110		3		-		-			217,437		-			-			217,440

Balances at June 30, 2024		-	$	-		5,347,940	$	8,863		336	$	(40,712	)	$	220,582,158	$	(9,719	)	$	(199,332,227	)	$	21,208,363

	Mezzanine Equity				Stockholder’s Equity
	Series B Preferred Stock				Common Stock				Treasury Stock							Accumulated
	Number of Shares		Amount		Number of Shares		Amount		Number of Shares		Amount			Additional Paid-In Capital		Other Comprehensive Gain (Loss)			Accumulated Deficit			Total Stockholders’ Equity

Balances at December 31, 2023		-	$	-		5,315,830	$	8,860		336	$	(40,712	)	$	220,171,250	$	7,259		$	(199,777,214	)	$	20,369,443
Balance		-	$	-		5,315,830	$	8,860		336	$	(40,712	)	$	220,171,250	$	7,259		$	(199,777,214	)	$	20,369,443

Net income		-		-		-		-		-		-			-		-			444,987			444,987
Net income (loss)		-		-		-		-		-		-			-		-			444,987			444,987

Unrealized net loss on marketable investment securities		-		-		-		-		-		-			-		(16,978	)		-			(16,978	)

Stock-based compensation		-		-		-		-		-		-			201,571		-			-			201,571

Common stock sold through ATM offering		-		-		32,110		3		-		-			209,337		-			-			209,340

Balances at June 30, 2024		-	$	-		5,347,940	$	8,863		336	$	(40,712	)	$	220,582,158	$	(9,719	)	$	(199,332,227	)	$	21,208,363
Balance		-	$	-		5,347,940	$	8,863		336	$	(40,712	)	$	220,582,158	$	(9,719	)	$	(199,332,227	)	$	21,208,363

See accompanying notes to condensed consolidated financial statements

LIPOCINE INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended June 30,
	2024			2023

Cash flows from operating activities:

Net income (loss)	$	444,987		$	(7,418,859	)

Adjustments to reconcile net income (loss) to cash used in operating activities:

Depreciation expense		17,024			12,910
Stock-based compensation expense		201,571			342,637
Non-cash loss (gain) on change in fair value of warrant liability		124,502			(125,589	)
Amortization of discounts on marketable investment securities		(411,145	)		(508,425	)

Changes in operating assets and liabilities:
Accrued interest income		(11,382	)		56,197
Prepaid and other current assets		476,373			254,419
Accounts payable		(947,179	)		(82,801	)
Accrued expenses		14,991			231,857

Cash used in operating activities		(90,258	)		(7,237,654	)

Cash flows from investing activities:
Purchase of property and equipment		-			(4,000	)
Purchases of marketable investment securities		(17,537,469	)		(8,780,931	)
Maturities of marketable investment securities		18,200,000			17,900,000

Net cash provided by investing activities		662,531			9,115,069

Cash flows from financing activities:

Net proceeds from sale of common stock through ATM		209,340			(11,216	)

Cash provided by (used in) financing activities		209,340			(11,216	)

Net increase in cash and cash equivalents		781,613			1,866,199

Cash and cash equivalents at beginning of period		4,771,758			3,148,496

Cash and cash equivalents at end of period	$	5,553,371		$	5,014,695

Supplemental disclosure of cash flow information:
Income taxes paid	$	681			656

Supplemental disclosure of non-cash investing and financing activities:
Net unrealized gain (loss) on available-for-sale securities	$	(16,978	)	$	4,509
Issuance of Series B preferred stock	$	-		$	89

See accompanying notes to condensed consolidated financial statements

LIPOCINE INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(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 (“U.S. GAAP”) has been condensed or omitted in accordance with rules and regulations of the SEC. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2024.

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, 2023.

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. GAAP. Actual results could differ from these estimates.

The Company believes that its existing capital resources, together with interest thereon, will be sufficient to meet its projected operating requirements through at least August 8, 2025. The Company has based this estimate on assumptions that may prove to be wrong, and the Company could utilize its available capital resources sooner than it currently expects. While the Company believes it has sufficient liquidity and capital resources to fund our projected operating requirements through at least August 8, 2025, the Company will need to raise additional capital through the equity or debt markets or via out-licensing activities to support its operations. If the Company is unsuccessful in raising additional capital, its ability to continue as a going concern will become a risk. Further, the Company’s operating plan may change, and the Company may need additional funds to meet operational needs and capital requirements for product development, regulatory compliance and clinical trial activities sooner than planned. In addition, the Company’s capital resources may be consumed more rapidly if it pursues additional clinical studies for LPCN 1154, LPCN 2101, LPCN 2203, LPCN 2401, LPCN 1148, LPCN 1144, and or LPCN 1107. Conversely, the Company’s capital resources could last longer if the Company reduces expenses, reduces the number of activities currently contemplated under its operating plan, or terminates, modifies the design of or suspends on-going clinical studies.

On January 12, 2024, the Company entered into a License Agreement (the “Verity License Agreement”) with Gordon Silver Limited (“GSL”) and Verity Pharmaceuticals, Inc. (“Verity Pharma”), pursuant to which the Company granted to GSL (an affiliate of Verity Pharma) an exclusive, royalty-bearing, sublicensable right and license to commercialize the Company’s TLANDO® product with respect to testosterone replacement therapy in males for conditions associated with a deficiency or absence of endogenous testosterone, as indicated in a New Drug Application (“NDA”) No. 208088, treatment of Klinefelter syndrome, and pediatric indications relating to testosterone replacement therapy in males for conditions associated with a deficiency or absence of endogenous testosterone (the “Field”), in each case within the United States and Canada. The Verity License Agreement also provides GSL with a license to develop and commercialize TLANDO XR, the Company’s potential once-daily oral product candidate for testosterone replacement therapy. The Company retains development and commercialization rights for TLANDO and TLANDO XR (LPCN 1111) outside of the United States and Canada, and with respect to applications outside of the Field inside or outside the United States and Canada.

Upon execution of the Verity License Agreement, GSL agreed to pay the Company a license fee of $11.0 million with an initial payment of $2.5 million which was received on signing of the Verity License Agreement, $5.0 million which was received on February 1, 2024, $2.5 million to be paid no later than January 1, 2025, and $1.0 million to be paid no later than January 1, 2026. The Company is also eligible to receive development and sales milestone payments of up to $259 million in the aggregate, depending primarily on the achievement of certain sales milestones in a single calendar year with respect to all products licensed by GSL under the Verity License Agreement. In addition, the Company is eligible to receive tiered royalty payments at rates ranging from 12% up to 18% of net sales of licensed products in the United States and Canada.

On May 10, 2023, the Company’s Board approved a reverse stock split ratio of 1-for-17. The Company filed an Amendment to its Certificate of Incorporation with the Secretary of State of the State of Delaware on May 10, 2023, and the Amendment became effective at 5:00 p.m. Eastern Time on Thursday, May 11, 2023. The Company’s shares began trading on a split-adjusted basis on the Nasdaq Capital Market commencing upon market open on May 12, 2023.

The accompanying consolidated financial statements and notes to consolidated financial statements give retroactive effect to the reverse stock split for all periods presented. The reverse stock split did not change the number of authorized shares of common stock or its par value.

(2) Revenue

The Company generates most of its revenue from license and royalty arrangements. At inception of each contract, the Company identifies the goods and services that have been promised to the customer and each of those that represent a distinct performance obligation, determines the transaction price including any variable consideration, allocates the transaction price to the distinct performance obligations and determines whether control transfers to the customer at a point in time or over time. Variable consideration is included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company reassesses its reserves for variable consideration at each reporting date and makes adjustments, if necessary, which may affect revenue and earnings in periods in which any such changes become known.

See Note 7 for a description of the Verity License Agreement. See Note 11 for a description of the agreement with Spriaso, a related party.

License Fees

For distinct license performance obligations, upfront license fees are recognized when the Company satisfies the underlying performance obligation. Performance obligations under these licenses, which consist of the right to use the Company’s proprietary technology, are satisfied at a point in time corresponding with delivery of the underlying technology rights to the licensee, which is generally upon transfer of the licensed technology/product to the customer. In addition, license arrangements may include contingent milestone payments, which are due following achievement by our licensee of specified sales or regulatory milestones and the licensee and/or Company will fulfill its performance obligation prior to achievement of these milestones. Because of the uncertainty of the milestone achievement, and/or the dependence on sales of our licensee, variable consideration for contingent milestones is fully constrained and is not recognized as revenue until the milestone is achieved by our licensee, to the extent collectability is reasonably certain.

Royalties

Royalties revenue consists of sales-based and minimum royalties earned under license agreements for our products. Sales-based royalties revenue represents variable consideration under license agreements and is recognized in the period a customer sells products incorporating the Company’s licensed technologies/products. The Company estimates sales-based royalties revenue earned but unpaid at each reporting period using information provided by the licensee. The Company’s license arrangements may also provide for minimum royalties, which the Company recognizes upon the satisfaction of the underlying performance obligation, which generally occurs with delivery of the underlying technology rights to the licensee. Sales-based and minimum royalties are generally due within 45 days after the end of each quarter in which they are earned.

Revenue Concentration

A major partner is considered to be one that comprises more than 10% of the Company’s total revenues. For the three months ended June 30, 2024, the Company recognized royalty revenue of approximately $90,000 relating to the Verity License Agreement. For the six months ended June 30, 2024, the Company recognized licensing revenue of $7.5 million and royalty revenue of approximately $140,000 relating to the Verity License Agreement. The revenue recognized in 2024 was 99% from one major customer, Verity Pharma. There was no revenue recognized in the three months ended June 30, 2023. License revenue recognized in the six months ended June 30, 2023 of $55,000 was 100% from a related-party, Spriaso.

(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. Diluted earnings (loss) per share is based on the weighted average number of common shares outstanding plus, where applicable, the additional potential common shares that would have been outstanding related to dilutive options, warrants and unvested restricted stock units to the extent such shares are dilutive.

The following table sets forth the computation of basic and diluted earnings (loss) per share of common stock for the three and six months ended June 30, 2024 and 2023:

	2024			2023			2024			2023
	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Basic earnings (loss) per share attributable to common stock:
Numerator
Net income (loss)	$	(3,068,634	)	$	(3,548,629	)	$	444,987		$	(7,418,948	)

Denominator
Weighted avg. common shares outstanding		5,343,922			5,234,830			5,329,876			5,234,830

Basic earnings (loss) per share attributable to common stock	$	(0.57	)	$	(0.68	)	$	0.08		$	(1.42	)

Diluted earnings (loss) per share attributable to common stock:
Numerator
Net income (loss)	$	(3,068,634	)	$	(3,548,629	)	$	444,987		$	(7,418,948	)
Effect of dilutive securities on net income (loss):
Common stock warrants		(84,430	)		27,455			(124,502	)		125,589
Total net earnings (loss) for purpose of calculating diluted earnings (loss) per common share	$	(2,984,204	)	$	(3,576,084	)	$	569,489		$	(7,544,537	)
Denominator
Weighted avg. common shares outstanding		5,343,922			5,234,830			5,329,876			5,234,830
Weighted average effect of dilutive securities:
Stock options		-			-			122,074			-
Restricted stock units		-			-			7,254			-
Dilutive securities		-			-			7,254			-
Total shares for purpose of calculating diluted net earnings (loss) per common share		5,343,922			5,234,830			5,459,204			5,234,830
Diluted earnings (loss) per share attributable to common stock	$	(0.56	)	$	(0.68	)	$	0.10		$	(1.44	)

The computation of diluted loss per share for the six months ended June 30, 2024 and 2023 does not include the following stock options and warrants to purchase shares of common stock or unvested restricted stock units in the computation of diluted loss per share because these instruments were antidilutive:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Stock options		295,517		264,150		173,443		264,150
Unvested restricted stock units		21,762		-		14,508		-
Warrants		49,333		49,433		49,433		49,433

(4) Marketable Investment Securities

The Company has classified its marketable investment securities as available-for-sale securities, all of which are debt 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 income (loss) in stockholders’ equity until realized. Gains and losses on investment security transactions are reported on the specific-identification method. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of security as of June 30, 2024, and December 31, 2023, were as follows:

June 30, 2024	Amortized Cost		Gross unrealized holding gains		Gross unrealized holding losses			Aggregate fair value

Government treasury bills	$	6,212,764	$	98	$	-		$	6,212,862
U.S. government agency securities		10,792,379		-		(9,817	)		10,782,562

	$	17,005,143	$	98	$	(9,817	)	$	16,995,424

December 31, 2023	Amortized Cost		Gross unrealized holding gains		Gross unrealized holding losses			Aggregate fair value

Government treasury bills	$	14,272,530	$	8,574	$	-		$	14,281,104
U.S. government agency securities		2,983,999		-		(1,315	)		2,982,684

	$	17,256,529	$	8,574	$	(1,315	)	$	17,263,788

Maturities of debt securities classified as available-for-sale securities as of June 30, 2024 are as follows:

June 30, 2024

Amortized Cost

Aggregate

fair value

Due within one year

17,005,143

16,995,424

17,005,143

16,995,424

There were no sales of marketable investment securities during either the three or six months ended June 30, 2024 and 2023 and therefore no realized gains or losses. Additionally, during the three months ended June 30, 2024 and 2023, $11.5 million and $5.9 million of marketable investment securities matured, and during the six months ended June 30, 2024 and 2023, $18.2 million and $17.9 million of marketable securities matured, respectively. The Company determined there were no other-than-temporary impairments for either the three or six months ended June 30, 2024 and 2023.

(5) 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 as of June 30, 2024 and December 31, 2023:

			Fair value measurements at reporting date using
	June 30, 2024		Level 1 inputs		Level 2 inputs		Level 3 inputs

Assets:
Cash equivalents - money market funds	$	4,459,338	$	4,459,338	$	-	$	-
Cash equivalents - treasury bills		1,290,186		1,290,186		-		-
Government treasury bills		6,212,862		6,212,862		-		-
US. Government agency securities		10,782,562		10,782,562		-		-

	$	22,744,948	$	22,744,948	$	-	$	-

Liabilities:
Warrant liability	$	141,668	$	-	$	-	$	141,668
	$	22,886,616	$	22,744,948	$	-	$	141,668

			Fair value measurements at reporting date using
	December 31, 2023		Level 1 inputs		Level 2 inputs		Level 3 inputs

Assets:
Cash equivalents - money market funds	$	4,695,491	$	4,695,491	$	-	$	-
Government treasury bills		14,281,104		14,281,104		-		-
U.S. government agency securities		2,982,684		-		2,982,684		-

	$	21,959,279	$	18,976,595	$	2,982,684	$	-

Liabilities:
Warrant liability	$	17,166	$	-	$	-	$	17,166
	$	21,976,445	$	18,976,595	$	2,982,684	$	17,166

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 treasury bills with original maturities to the Company of three months or less and are purchased daily at par value with specified yield rates. Cash equivalents related to money market funds and treasury bills are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices or broker or dealer quotations for similar assets.

Government treasury bills: The Company uses a third-party pricing service to value these investments. United States treasury bills 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.

U.S. government agency securities: The Company uses a third-party pricing service to value these investments. U.S. government agency securities are classified within Level 2 of the fair value hierarchy because they are valued using broker/dealer quotes, bids and offers, benchmark yields and credit spreads and other observable inputs.

Warrant liability: The warrant liability (which relates to warrants to purchase shares of common stock) is marked-to-market each reporting period with the change in fair value recorded to other income (expense) in the accompanying statements of operations until the warrants are exercised, expire or other facts and circumstances lead the warrant liability to be reclassified to stockholders’ equity. The fair value of the warrant liability is estimated using a Black-Scholes option-pricing model. The significant assumptions used in preparing the option pricing model for valuing the warrant liability as of June 30, 2024, include (i) volatility of 110.64%, (ii) risk free interest rate of 5.45%, (iii) strike price of $8.50, (iv) fair value of common stock of $8.24, and (v) expected life of 0.4 years. The significant assumptions used in preparing the option pricing model for valuing the warrant liability as of December 31, 2023, include (i) volatility of 100%, (ii) risk free interest rate of 4.79%, (iii) strike price of $8.50, (iv) fair value of common stock of $2.79, and (v) expected life of 0.9 years.

The Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or changes in circumstances that caused the transfer. There were no transfers into or out of Level 1, Level 2, or Level 3 for the three or six months ended June 30, 2024.

(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 June 30, 2024 and December 31, 2023, 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.

(7) Contractual Agreements

(a)

Verity Pharmaceuticals, Inc.

On January 12, 2024, the Company entered into the Verity License Agreement with GSL and Verity Pharma, pursuant to which the Company granted to GSL (an affiliate of Verity Pharma) an exclusive, royalty-bearing, sublicensable right and license to commercialize the Company’s TLANDO product with respect to testosterone replacement therapy in males for conditions associated with a deficiency or absence of endogenous testosterone, as indicated in NDA No. 208088, treatment of Klinefelter syndrome, and pediatric indications relating to testosterone replacement therapy in males for conditions associated with a deficiency or absence of endogenous testosterone (the “Field”), in each case within the United States and Canada. The Verity License Agreement also provides GSL with a license to develop and commercialize TLANDO XR (LPCN 1111), the Company’s potential once-daily oral product candidate for testosterone replacement therapy. The Company retains rights to TLANDO and TLANDO XR in applications outside of the Field and to development and commercialization rights in the field outside of the United States and Canada.

Upon execution of the Verity License Agreement, GSL agreed to pay the Company a license fee of $11.0 million with an initial payment of $2.5 million which was received on signing of the Verity License Agreement, $5.0 million which was received on February 1, 2024, $2.5 million to be paid no later than January 1, 2025, and $1.0 million to be paid no later than January 1, 2026. The Company is also eligible to receive development and sales milestone payments of up to $259.0 million in the aggregate, depending primarily on the achievement of certain sales milestones in a single calendar year with respect to all products licensed by GSL under the Verity License Agreement. GSL is generally responsible for expenses relating to the development (including the conduct of any clinical trials) and commercialization of licensed products in the Field in the United States and Canada, while the Company is generally responsible for expenses relating to development activities outside of the Field and/or the United States and Canada.

The Company concluded that licensing revenue recognized in conjunction with the Verity License Agreement met the requirements under ASC 606, Revenue from Contracts with Customers. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. License revenue from payments to be received in the future will be recognized when it is probable that we will receive license payments under the terms of the Verity License Agreement.

Under the Verity License Agreement with Verity Pharma, during the three months ended June 30, 2024, the Company recognized approximately $90,000 in royalty revenue. During the six months ended June 30, 2024, the Company recognized $7.5 million in licensing revenue and approximately $140,000 in royalty revenue.

(b)

Antares Pharma, Inc.

On October 14, 2021, the Company entered into the Antares License Agreement with Antares pursuant to which the Company granted to Antares an exclusive, royalty-bearing, sublicensable right and license to develop and commercialize, upon final approval of TLANDO® from the U.S. Food and Drug Administration (“FDA”), the Company’s TLANDO product with respect to testosterone replacement therapy in males for conditions associated with a deficiency or absence of endogenous testosterone, as indicated in NDA No. 208088, treatment of Klinefelter syndrome, and pediatric indications relating to testosterone replacement therapy in males for conditions associated with a deficiency or absence of endogenous testosterone, in each case within the United States. TLANDO received FDA approval on March 29, 2022.

Upon execution of the Antares License Agreement, Antares paid the Company an initial payment of $11.0 million. Antares agreed to make additional payments of $5.0 million to the Company on each of January 1, 2025, and January 1, 2026, provided that certain conditions were satisfied. The Company was also eligible to receive milestone payments of up to $160.0 million in the aggregate, depending on the achievement of certain sales milestones in a single calendar year with respect to TLANDO, as licensed by Antares under the Antares License Agreement. In addition, the Company was to receive tiered royalty payments at rates ranging from percentages in the mid-teens up to 20% of net sales of TLANDO in the United States, subject to certain minimum royalty obligations. On October 2, 2023, the Company received notice from Antares of Antares’ termination of the Antares License Agreement. In accordance with the terms of the Antares License Agreement, the Antares License Agreement terminated effective January 31, 2024. On January 12, 2024, the Company entered into the Verity License Agreement with Verity Pharma. Upon termination of the Antares License Agreement, all rights and licenses granted by the Company to Antares under the Antares License Agreement terminated and all rights in TLANDO were transferred to the Company’s new licensing partner, Verity Pharma.

Under the Antares License Agreement, the Company did not recognize revenue during either the three months ended June 30, 2024 or 2023, and recognized revenue of approximately $67,000 and $0 for the six months ended June 30, 2024 and 2023, respectively. The Company does not expect to receive any further royalties under the Antares License Agreement in the future.

(c)

Abbott Products, Inc.

On March 29, 2012, the Company terminated its collaborative agreement with Solvay Pharmaceuticals, Inc. (later acquired by Abbott Products, Inc. (“Abbott”) for TLANDO. As part of the termination, the Company reacquired the rights to the intellectual property from Abbott. All obligations under the prior license agreement have been completed except that Lipocine will owe Abbott a perpetual 1% royalty on net sales. Such royalties are limited to $1.0 million in the first two calendar years following product launch, after which period there is not a cap on royalties and no maximum aggregate amount. If generic versions of any such product are introduced, then royalties are reduced by 50%. TLANDO was commercially launched on June 7, 2022. The Company incurred royalty expense of approximately $7,000 and $9,000 during the three months ended June 30, 2024 and 2023, respectively, and approximately $16,000 and $13,000 during the six months ended June 30, 2024 and 2023, respectively.

(d)

Contract Research and Development

The Company has entered into agreements with various contract organizations that conduct pre-clinical, clinical, analytical and manufacturing development work on behalf of the Company as well as a number of independent contractors and primarily clinical researchers who serve as advisors to the Company. The Company incurred expenses of $1.1 million and $1.7 million, respectively, for the three months ended June 30, 2024 and 2023, respectively, and $2.9 million and $3.8 million for the six months ended June 30, 2024 and 2023, respectively, under these agreements and has recorded these expenses in research and development expenses.

(8) Leases

The Company has a non-cancelable operating lease for office space and laboratory facilities in Salt Lake City, Utah. The term of the lease has been extended through February 28, 2025.

Future minimum lease payments under the non-cancelable operating lease as of June 30, 2024 are:

	Operating
	leases
Year ending December 31:
2024	$	184,038
2025		61,346

Total minimum lease payments	$	245,384

The Company’s rent expense was $92,000 and $89,000 for the three months ended June 30, 2024 and 2023, respectively. The Company’s rent expense was $182,000 and $176,000, for the six months ended June 30, 2024, respectively.

(9) Stockholders’ Equity

On May 10, 2023, the Company’s Board approved a reverse stock split ratio of 1-for-17. The Company filed the Amendment to its Certificate of Incorporation with the Secretary of State of the State of Delaware on May 10, 2023, and the Amendment became effective at 5:00 p.m. Eastern Time on Thursday, May 11, 2023. The Company’s shares began trading on a split-adjusted basis on the Nasdaq Capital Market commencing upon market open on May 12, 2023.

All common stock share data and per share price data of the Company reflect the reverse stock split effective May 11, 2023.

The Company is authorized to issue up to 200,000,000 shares of its common stock, par value $0.0001.

(a)

Issuance of Common Stock

On April 26, 2024, the Company entered into a sales agreement with A.G.P. (the “A.G.P. Sales Agreement”) pursuant to which the Company may issue and sell, from time to time, shares of its common stock having an aggregate offering price of up to the amount the Company registered on an effective registration statement pursuant to which the offering is being made. The Company currently has registered $10,616,169 shares of common shares for sale under the Sales Agreement, pursuant to the Registration Statement on Form S-3, as amended (File No. 333-275716) (the “Form S-3”), through A.G.P. as the Company’s sales agent. A.G.P. may sell the Company’s common stock by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) of the Securities Act, including sales made directly on or through the Nasdaq Capital Market or any other existing trade market for our common stock, in negotiated transactions at market prices prevailing at the time of sale or at prices related to prevailing market prices, or any other method permitted by law. A.G.P. will use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable law and regulations to sell shares under the A.G.P. Sales Agreement. The Company will pay A.G.P. 3.0% of the aggregate gross proceeds from each sale of shares under the A.G.P. Sales Agreement. In addition, the Company has also provided A.G.P. with customary indemnification rights.

The shares of the Company’s common stock to be sold under the A.G.P. Sales Agreement will be sold and issued pursuant to the Form S-3, as amended, which was previously declared effective by the Securities and Exchange Commission, and the related prospectus and one or more prospectus supplements.

The Company is not obligated to make any sales of its common stock under the A.G.P. Sales Agreement. The offering of common stock pursuant to the A.G.P. Sales Agreement will terminate upon the termination of the A.G.P. Sales Agreement as permitted therein. The Company and A.G.P. may each terminate the A.G.P. Sales Agreement at any time upon ten days’ prior notice.

As of June 30, 2024, the Company had not sold any shares under the A.G.P. Sales Agreement.

Previously, on March 6, 2017, the Company entered into a sales agreement (the “Cantor Sales Agreement”) with Cantor Fitzgerald & Co. (“Cantor”) pursuant to which the Company could issue and sell, from time to time, shares of its common stock having an aggregate offering price of up to the amount the Company registered on an effective registration statement pursuant to which the offering is being made.

As of June 30, 2024, the Company had sold an aggregate of 996,821 shares at a weighted-average sales price of $33.62 per share under the At the Market Offering ( the “ATM Offering”) Cantor Sales Agreement, for aggregate gross proceeds of $33.5 million and net proceeds of $32.4 million, after deducting sales agent commission and discounts and other offering costs. During the three and six months ended June 30, 2024, the Company sold 32,110 shares of its common stock pursuant to the Cantor Sales Agreement. On April 24, 2024 the Cantor Sales Agreement was terminated.

(b)

Series B Preferred Stock

On March 7, 2023, the Board of the Company declared a dividend of one one-thousandth (1/1,000^th) of a share of Series B Preferred Stock, par value $0.0001 per share (“Series B Preferred Stock”), for each outstanding share of common stock of the Company, to stockholders of record on March 24, 2023. The Certificate of Designation of Series B Preferred Stock (the “Certificate of Designation”) was filed with the Delaware Secretary of State and became effective on March 10, 2023.

The dividend was based on the number of shares of outstanding common stock on March 24, 2023, and resulted in 88,511 Series B Preferred shares being issued. Each whole share of Series B Preferred Stock entitled the holder thereof to 1,000,000 votes per share, and each fraction of a share of Series B Preferred Stock had a ratable number of votes. Thus, each one-thousandth of a share of Series B Preferred Stock was entitled to 1,000 votes. The outstanding shares of Series B Preferred Stock were entitled to vote together with the outstanding shares of common stock as a single class exclusively with respect to any proposal to adopt an amendment to the Company’s Amended and Restated Certificate of Incorporation, as amended (the “Certificate of Incorporation”), to effect a reverse stock split of the outstanding shares of Common Stock at a ratio determined in accordance with the terms of such amendment (the “Reverse Stock Split”), and (ii) any proposal to adjourn any meeting of stockholders called for the purpose of voting on the Reverse Stock Split (the “Adjournment Proposal”) in conjunction with the Company’s 2023 annual meeting of stockholders.

All shares of Series B Preferred Stock that were not present in person or by proxy at the 2023 annual meeting as of immediately prior to the opening of the polls (the “Initial Redemption Time”) were automatically redeemed by the Company without further action on the part of the Company or the holder of shares of Series B Preferred Stock (the “Initial Redemption”). The remaining shares of Series B Preferred Stock that were not redeemed pursuant to the Initial Redemption were redeemed automatically upon the effectiveness of the amendment to the Certificate of Incorporation implementing the Reverse Stock Split (the “Subsequent Redemption”).

Each “beneficial owner” (as such terms are defined in the Certificate of Designation with respect to the Series B Preferred Stock) of shares of Series B Preferred Stock redeemed in the redemptions described above has the right to receive an amount equal to $0.01 in cash for each ten whole shares of Series B Preferred Stock that were “beneficially owned” by the beneficial owner as of immediately prior to the applicable redemption time and redeemed pursuant to such redemption, payable upon receipt by the Company of a written request submitted by the applicable beneficial owner to the corporate secretary of the Company following the applicable redemption time.

The Series B Preferred Stock was not convertible into, or exchangeable for, shares of any other class or series of stock or other securities of the Company. The Series B Preferred Stock had no stated maturity and was not subject to any sinking fund. The Series B Preferred Stock was not subject to any restriction on the redemption or repurchase of shares by the Company while there is any arrearage in the payment of dividends or sinking fund installments.

The Company was not solely in control of the redemption of the shares of Series B Preferred Stock prior to the annual meeting of stockholders since the holders had the option of deciding whether to vote in respect of the above-described Reverse Stock Split, which determined whether a given holder’s shares of Series B Preferred Stock was redeemed in the Initial Redemption or the Subsequent Redemption. Since the redemption of the Series B Preferred Stock was not solely in the control of the Company, the shares of Series B Preferred Stock were classified within the mezzanine equity in the Company’s unaudited consolidated statement of stockholder’s equity. Upon issuance, the shares of Series B Preferred Stock were measured at redemption value. As of May 10, 2023, all shares of Series B Preferred Stock had been redeemed by the Company.

(c)

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 the Company authorized and the Company declared a dividend of one preferred stock purchase right (each a “Right” and collectively, the “Rights”) for each outstanding share of common stock of the Company. The dividend was payable to stockholders of record as of the close of business on November 30, 2015 and entitles the registered holder to purchase from the Company one one-thousandth of a fully paid non-assessable share of Series A Junior Participating Preferred Stock of the Company at a price of $63.96 per one-thousandth share (the “Purchase Price”). The Rights will generally become exercisable upon the earlier to occur of (i) 10 business days following a public announcement that a person or group of affiliated or associated persons has become an Acquiring Person (as defined below) or (ii) 10 business days (or such later date as may be determined by action of the Board prior to such time as any person or group of affiliated or associated persons becomes an Acquiring Person) following the commencement of, or announcement of an intention to make, a tender offer or exchange offer the consummation of which would result in the beneficial ownership by a person or group of 15% or more of the outstanding common stock of the Company. Except in certain situations, a person or group of affiliated or associated persons becomes an “Acquiring Person” upon acquiring beneficial ownership of 15% or more of the outstanding shares of common stock of the Company.

In general, in the event a person becomes an Acquiring Person, then each Right not owned by such Acquiring Person will entitle its holder to purchase from the Company, at the Right’s then current exercise price, in lieu of shares of Series A Junior Participating Preferred Stock, common stock of the Company with a market value of twice the Purchase Price. In addition, if after any person has become an Acquiring Person, (a) the Company is acquired in a merger or other business combination, or (b) 50% or more of the Company’s assets, or assets accounting for 50% or more of its earning power, are sold, leased, exchanged or otherwise transferred (in one or more transactions), proper provision shall be made so that each holder of a Right (other than the Acquiring Person, its affiliates and associates and certain transferees thereof, whose Rights became void) shall thereafter have the right to purchase from the acquiring corporation, for the Purchase Price, that number of shares of common stock of the acquiring corporation which at the time of such transaction would have a market value of twice the Purchase Price.

The Company will be entitled to redeem the Rights at $0.001 per Right at any time prior to the time an Acquiring Person becomes such. The terms of the Rights are set forth in the Rights Agreement, which is summarized in the Company’s Current Report on Form 8-K dated November 13, 2015. The rights plan was originally set to expire on November 12, 2018; however, on November 5, 2018 our Board approved an Amended and Restated Rights Agreement pursuant to which the expiration date was extended to November 5, 2021, and again on November 2, 2021, the Company adopted a Second Amended and Restated Rights Agreement pursuant to which the expiration date was extended to November 1, 2024, unless the rights are earlier redeemed or exchanged by the Company.

(d)

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, nonemployees and nonemployee members of the Company’s Board based on the grant-date fair value of those awards. The grant-date fair value of an award is generally recognized as compensation expense over the award’s requisite service period. In addition, the Company has granted performance-based stock option awards and restricted stock units, which vest based upon the Company satisfying certain performance conditions. Potential compensation cost, measured on the grant date, related to these performance options will be recognized only if, and when, the Company estimates that these options or units will vest, which is based on whether the Company considers the performance conditions to be probable of attainment. The Company’s estimates of the number of performance-based options or units that will vest will be revised, if necessary, in subsequent periods.

The Company uses the Black-Scholes model to compute the estimated fair value of stock option awards. Using this model, fair value is calculated based on assumptions with respect to (i) expected volatility of the Company’s common stock price, (ii) the periods of time over which employees and members of the board of directors are expected to hold their options prior to exercise (expected term), (iii) expected dividend yield on the Common Stock, and (iv) risk-free interest rates. Stock-based compensation expense also includes an estimate, which is made at the time of grant, of the number of awards that are expected to be forfeited. This estimate is revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation cost that has been expensed in the statements of operations amounted to approximately $102,000 and $165,000, respectively, for the three months ended June 30, 2024 and 2023, and approximately $202,000 and $343,000, respectively, for the six months ended June 30, 2024 and 2023, and is allocated as follows:

	2024		2023		2024		2023
	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Research and development	$	57,786	$	83,229	$	112,866	$	178,742
General and administrative		44,479		81,636		88,705		163,895

Total	$	102,265	$	164,865	$	201,571	$	342,637

The Company issued 8,820 stock options, during each of the three months ended June 30, 2024 and 2023, and issued 34,446 and 10,086 stock options, respectively, during the six months ended June 30, 2024 and 2023.

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. The expected term was estimated using the average of the contractual term and the vesting period of the stock option. For awards with performance conditions, and that have the contractual term to satisfy the performance condition, the contractual term was used.

Risk-Free Interest Rate: The risk-free interest rate used was based on the implied yield currently available on U.S. Treasury issues with an equivalent remaining term.

Expected Dividend: The expected dividend assumption is based on management’s current expectation about the Company’s anticipated dividend policy. The Company does not anticipate declaring dividends in the foreseeable future.

Expected Volatility: The volatility factor is based solely on the Company’s trading history.

For options granted during the six months ended June 30, 2024 and 2023, the Company calculated the fair value of each option grant on the respective dates of grant using the following weighted average assumptions:

	2024			2023
Expected term		5.76 years			5.73 years
Risk-free interest rate		4.32	%		3.73	%
Expected dividend yield		—			—
Expected volatility		97.78	%		98.97	%

The Company recognizes compensation expense for the portion of options that are expected to vest. Therefore, the Company applied estimated forfeiture rates that were derived from historical employee termination behavior. If the actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in future periods.

As of June 30, 2024, there was approximately $384,000 of total unrecognized compensation cost related to unvested stock option compensation granted under the Company’s stock option plan. That cost is expected to be recognized over a weighted average period of 0.8 years and will be adjusted for subsequent changes in estimated forfeitures. Additionally, as of June 30, 2024, there was $76,000 of total unrecognized compensation costs related to unvested restricted stock units that have either time-based or performance vesting.

(e)

Stock Option Plan

In April 2014, the Board 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 58,823 shares were authorized for issuance under the 2014 Plan. Additionally, 15,994 remaining authorized shares under the 2011 Equity Incentive Plan (“2011 Plan”) were issuable under the 2014 Plan at the time of the 2014 Plan adoption. Upon receiving shareholder approval in June 2016, the 2014 Plan was amended and restated to increase the authorized number of shares of common stock of the Company issuable under all awards granted under the 2014 Plan from 74,817 to 145,405. Additionally, upon receiving shareholder approval in June 2018, the 2014 Plan was further amended and restated to increase the authorized number of shares of common stock of the Company issuable under all awards granted under the 2014 Plan from 145,405 to 189,522. Upon receiving shareholder approval in June 2020, the 2014 Plan was further amended and restated to increase the authorized number of shares of common stock of the Company issuable under all awards granted under the 2014 Plan from 189,522 to 336,582. In June 2024, the 2014 Plan was further amended and restated to increase the authorized number of shares of common stock of the Company issuable under all awards granted from 336,582 to 600,000. The Board, on an option-by-option basis, determines the number of shares, exercise price, term, and vesting period for options granted. Options granted generally have a ten-year contractual life. The Company issues shares of common stock upon the exercise of options with the source of those shares of common stock being either newly issued shares or shares held in treasury. An aggregate of 600,000 shares of common stock are authorized for issuance under the 2014 Plan, with 257,046 shares remaining available for grant as of June 30, 2024.

A summary of stock option activity is as follows:

Schedule of Stock Option Activity

	Outstanding stock options
	Number of shares			Weighted average exercise price
Balance at December 31, 2023		262,247		$	34.21
Options granted		34,446			4.77
Options exercised		-			-
Options forfeited		-			-
Options cancelled		(1,176	)		140.25
Balance at June 30, 2024		295,517			30.36

Options exercisable at June 30, 2024		224,887			37.54

The following table summarizes information about stock options outstanding and exercisable at June 30, 2024:

Options outstanding								Options exercisable
Number outstanding		Weighted average remaining contractual life (Years)		Weighted average exercise price		Aggregate intrinsic value		Number exerciseable		Weighted average remaining contractual life (Years)		Weighted average exercise price		Aggregate intrinsic value

	295,517		6.55	$	30.36	$	230,307		224,887		5.79	$	37.54	$	77,671

The intrinsic value for stock options is defined as the difference between the current market value and the exercise price. There were 0 stock options exercised during either the three or six months ended June 30, 2024 or 2023.

(f)

Restricted Stock Units

A summary of restricted stock unit activity is as follows:

	Number of unvested restricted stock units

Balance at December 31, 2023		-
Granted		21,762
Vested		-
Cancelled		-
Balance at June 30, 2024		21,762

There were no restricted stock units awarded during either the three months ended June 30, 2024 or 2023. There were 21,762 and 0 restricted stock units awarded during the six months ended June 30, 2024 and 2023, respectively. The weighted average grant date fair value of restricted stock units awarded during the six months ended June 30, 2024 was $3.61 per share.

(g)

Common Stock Warrants

The Company accounts for its common stock warrants under ASC 480, Distinguishing Liabilities from Equity, which requires any financial instrument, other than an outstanding share, that, at inception, embodies an obligation to repurchase the issuer’s equity shares, or is indexed to such an obligation, and requires or may require the issuer to settle the obligation by transferring assets, to be classified as a liability. In accordance with ASC 480, the Company’s outstanding warrants from the November 2019 Offering are classified as a liability. The liability is adjusted to fair value at each reporting period, with the changes in fair value recognized as gain (loss) on change in fair value of warrant liability in the Company’s consolidated statements of operations. The warrants issued in the November 2019 Offering allow the warrant holder, if certain change in control events occur, the option to receive an amount of cash equal to the value of the warrants as determined in accordance with the Black-Scholes option pricing model with certain defined assumptions upon a fundamental transaction.

As of June 30, 2024, the Company had 64,362 common stock warrants outstanding from the November 2019 Offering to purchase an equal number of shares of common stock. The fair value of these warrants on June 30, 2024 and on December 31, 2023 was determined using the Black-Scholes option pricing model with the following Level 3 inputs (as defined in the November 2019 Offering):

Schedule of Fair Value of Warrants

	June 30, 2024			December 31, 2023
Expected life in years		0.39			0.88
Risk-free interest rate		5.45	%		4.79	%
Dividend yield		—			—
Volatility		110.64	%		100.00	%
Stock price	$	8.24		$	2.79

During the three and six months ended June 30, 2024, the Company recorded a non-cash loss of approximately $84,000 and $125,000, respectively, from the change in fair value of the November 2019 Offering warrants. During the three and six months ended June 30, 2023, the Company recorded non-cash gains of approximately $27,000 and $126,000, respectively, from the change in fair value on the November 2019 Offering warrants. The following table is a reconciliation of the warrant liability measured at fair value using level 3 inputs:

	Warrant Liability
Balance at December 31, 2023	$	17,166
Change in fair value of common stock warrants		124,502
Balance at June 30, 2024	$	141,668

Additionally, in an offering in February 2020, the Company issued 296,593 common stock warrants. However, because these warrants do not provide the warrant holder the option to put the warrant back to the Company, the warrants are classified as equity. As of June 30, 2024, and 2023, there were 49,433 warrants outstanding that were issued in February 2020.

The following table summarizes the number of common stock warrants outstanding and the weighted average exercise price:

	Warrants		Weighted Average Exercise Price
Outstanding at December 31, 2023		113,795	$	8.72
Issued		-		-
Exercised		-		-
Expired		-		-
Cancelled		-		-
Forfeited		-		-
Balance at June 30, 2024		113,795	$	8.72

There were no common stock warrants exercised during either the three or six months ended June 30, 2024 or 2023.

The following table summarizes information about common stock warrants outstanding at June 30, 2024:

Warrants outstanding
Number exercisable		Weighted average remaining contractual life (Years)		Weighted average exercise price		Aggregate intrinsic value

	113,795		0.50	$	8.72	$	-

(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.

On November 14, 2019, the Company and certain of its officers were named as defendants in a purported shareholder class action lawsuit, Solomon Abady v. Lipocine Inc. et al., 2:19-cv-00906-PMW, filed in the United District Court for the District of Utah. The complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that the Company’s filing of the NDA for TLANDO to the FDA contained deficiencies and as a result the defendants’ statements about our business and operations were false and misleading and/or lacked a reasonable basis in violation of federal securities laws. The lawsuit sought certification as a class action (for a purported class of purchasers of the Company’s securities from March 27, 2019 through November 8, 2019), compensatory damages in an unspecified amount, and unspecified equitable or injunctive relief. The Company has insurance that covers claims of this nature. The retention amount payable by the Company under its policy is $1.25 million. The Company filed a motion to dismiss the class action lawsuit on July 24, 2020. In response, the plaintiffs filed their response to the motion to dismiss the class action lawsuit on September 22, 2020 and the Company filed its reply to its motion to dismiss on October 22, 2020. A hearing on the motion to dismiss occurred on January 12, 2022. On April 14, 2023, a judgment was issued ordering the case dismissed with prejudice and closure of the action.

The Company is not currently aware of any matter, individually or in the aggregate, that could 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 indemnification provisions. Additionally, the Company has indemnified its directors and officers to the maximum extent permitted under the laws of the State of Delaware.

(11) Agreement with Spriaso, LLC

The Company has a license and a services agreement with Spriaso, a related-party that is majority-owned by certain current and former directors of Lipocine Inc. and their affiliates. Under the license agreement, the Company assigned and transferred to Spriaso all of the Company’s rights, title and interest in its intellectual property to develop products for the cough and cold field. In addition, Spriaso received all rights and obligations under the Company’s product development agreement with a third-party. In exchange, the Company will receive a royalty of 20 percent of the net proceeds received by Spriaso, up to a maximum of $10.0 million. Spriaso also granted back to the Company an exclusive license to such intellectual property to develop products outside of the cough and cold field. The Company also agreed to continue providing up to 10 percent of the services of certain employees to Spriaso for a period of time. The agreement to provide services expired in 2021; however, it may be extended upon written agreement of Spriaso and the Company. During the three and six months ended June 30, 2024, the Company did not receive any revenue from Spriaso. During the three and six months ended June 30, 2023, the Company received licensing revenue from Spriaso of $0 and approximately $55,000, respectively. Spriaso filed its first NDA and as an affiliated entity of the Company, it used up the one-time waiver for user fees for a small business submitting its first human drug application to the FDA. Spriaso is considered a variable interest entity under the FASB ASC Topic 810-10, Consolidations, however the Company is not the primary beneficiary and has therefore not consolidated Spriaso.

(12) Recent Accounting Pronouncements

Accounting Pronouncements Issued Not Yet Adopted

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances reporting requirements under Topic 280. The enhanced disclosure requirements include: title and position of the Chief Operating Decision Maker (CODM), significant segment expenses provided to the CODM, extending certain annual disclosures to interim periods, clarifying single reportable segment entities must apply ASC 280 in its entirety, and permitting more than one measure of segment profit or loss to be reported under certain circumstances. This change is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. This change will apply retrospectively to all periods presented. Management is currently assessing the impact of the adoption of this ASU on the financials statements of the Company.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes thereto and other financial information included elsewhere in this report. For additional context with which to understand our financial condition and results of operations, see the management’s discussion and analysis included in our Form 10-K, filed with the SEC on March 7, 2024, our first quarter Form 10-Q filed with the SEC on May 9, 2024, as well as the financial statements and related notes contained therein.

As used in the discussion below, “we,” “our,” and “us” refers to Lipocine.

Forward-Looking Statements

This section and other parts of this report contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements may refer to such matters as products, product benefits, pre-clinical and clinical development timelines, clinical and regulatory expectations and plans, expected responses to regulatory actions, anticipated financial performance, future revenues or earnings, business prospects, projected ventures, new products and services, anticipated market performance, expected research and development and other expenses, future expectations for liquidity and capital resources needs and similar matters. Such words as “may”, “will”, “expect”, “continue”, “estimate”, “project”, and “intend” and similar terms and expressions are intended to identify forward looking statements. Forward-looking statements are not guarantees of future performance and our actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed in Part I, Item 1A (Risk Factors) of our Form 10-K filed with the SEC on March 7, 2024 and Item 1A (Risk Factors) of our Form 10-Q for the quarter ended March 31, 2024 filed with the SEC on May 9, 2024. Except as required by applicable law, we assume no obligation to revise or update any forward-looking statements for any reason.

Overview of Our Business

We are a biopharmaceutical company focused on leveraging our proprietary Lip’ral platform to develop differentiated products through the oral delivery of previously difficult to deliver molecules, focused on treating Central Nervous System (“CNS”) disorders. Our proprietary delivery technologies are designed to improve patient compliance and safety through orally available treatment options. Our primary development programs are based on oral delivery solutions for poorly bioavailable drugs. We have a portfolio of differentiated innovative product candidates that target high unmet needs for neurological and psychiatric CNS disorders, liver diseases, and hormone supplementation for men and women.

On January 12, 2024, we entered into the Verity License Agreement for the development and commercialization of our approved product, TLANDO®, an oral testosterone replacement therapy (“TRT”) comprised of testosterone undecanoate (“TU”), with Verity Pharma pursuant to which we granted to Verity Pharma an exclusive, royalty-bearing, sublicensable right and license to develop and commercialize the TLANDO product for TRT in the U.S. and Canada. Any FDA required post-marketing studies will also be the responsibility of Verity Pharma. On March 28, 2022, the FDA approved TLANDO as a TRT in adult males for conditions associated with a deficiency of endogenous testosterone, also known as hypogonadism. On June 7, 2022, our former commercial partner Antares (a wholly owned subsidiary of Halozyme) announced the commercial launch of TLANDO, an oral treatment indicated for testosterone replacement therapy in adult males for conditions associated with a deficiency or absence of endogenous testosterone (primary or hypogonadotropic hypogonadism).

Additional clinical development pipeline candidates include: LPCN 1154 for postpartum depression (“PPD”); LPCN 2101 for epilepsy; LPCN 2203 for essential tremor and LPCN 2401 for improved body composition in chronic weight management. In addition to our clinical development product candidates, we have assets for which we expect to seek partnerships to enable further development including TLANDO for territories outside of North America, LPCN 1148 comprising a novel prodrug of testosterone and testosterone laurate (“TL”), for the management of decompensated cirrhosis, LPCN 1144, an oral prodrug of androgen receptor modulator for the treatment of non-cirrhotic non-alcoholic steatohepatitis (“NASH”) which has completed Phase 2 testing; and LPCN 1107, potentially the first oral hydroxy progesterone caproate (“HPC”) product indicated for the prevention of recurrent preterm birth (“PTB”), which has completed a dose finding clinical study in pregnant women and has been granted orphan drug designation by the FDA.

The following chart summarizes the status of our product candidate development and partnering programs:

Corporate Strategy

Our goal is to become a leading biopharmaceutical company focused on leveraging our proprietary Lip’ral drug delivery technology platform to develop differentiated products through oral delivery of previously difficult to deliver molecules for CNS disorders. The key components of our strategy are to:

Advance LPCN 1154 and other CNS product candidates. We intend to focus on the development of endogenous neuroactive steroids (“NASs”) which have broad applicability in treating various CNS conditions where we can leverage our technology platform to develop highly differentiated oral therapeutics. Our priority is on the development of LPCN 1154, a fast-acting oral antidepressant for postpartum depression (“PPD”) with potential for outpatient use.

Support Verity Pharma in commercialization of our licensed oral TRT option. We believe the TRT market needs a differentiated, convenient oral option. We have exclusively licensed rights to TLANDO to Verity Pharma for commercialization of TLANDO in the U.S. and Canada. We plan to support Verity Pharma’s efforts to effectively enable the availability of TLANDO to patients in a timely manner, in addition to receiving milestone and royalty payments associated with TLANDO commercialization as agreed to in the Verity License Agreement.

Develop partnership(s) to continue the advancement of pipeline assets. We continuously strive to prioritize our resources in seeking partnerships for our pipeline assets. We are currently exploring partnerships for our liver programs LPCN 1144, our candidate for treatment of non-cirrhotic NASH and LPCN 1148 for the management of decompensated cirrhosis including prevention of the recurrence of overt hepatic encephalopathy, LPCN 2401 for improved body composition in chronic weight management as an adjunct therapy to or as a monotherapy post cessation of incretin mimetics use, and LPCN 1107, our candidate for prevention of pre-term birth. We are also exploring the possibility of licensing LPCN 1021 (known as TLANDO in the United States) and LPCN 1111 to third parties outside the United States and Canada, although no licensing agreement has been entered into by the Company.

Our Pipeline Product Candidates

Our pipeline of clinical development candidates includes LPCN 1154 for PPD, LPCN 2101 for epilepsy, LPCN 2203 for essential tremor, and LPCN 2401 as an aid for improved body composition in chronic weight management. We will continue to explore other product development candidates targeting CNS indications with a significant unmet need. We will also continue efforts to enter into partnership arrangements for the continued development and/or marketing of LPCN 1144, LPCN 1148, LPCN 2401, LPCN 1107 as well as for the TRT assets (TLANDO and LPCN 1111) outside of the United States and Canada.

Our products are based on our proprietary Lip’ral drug delivery technology platform. Lip’ral-based TLANDO was approved by the FDA in March 2022. Lip’ral technology is a patented technology based on lipidic compositions which form an optimal dispersed phase in the gastrointestinal environment for improved absorption of insoluble drugs. The drug loaded dispersed phase presents the solubilized drug efficiently at the absorption site (gastrointestinal tract membrane) thus improving the absorption process and making the drug less dependent on physiological variables such as dilution, gastro-intestinal pH and food effects for absorption. Lip’ral-based formulation enables improved solubilization and higher drug-loading capacity, which can lead to improved bioavailability, reduced dose, faster and more consistent absorption, reduced variability, reduced sensitivity to food effects, improved patient compliance, and targeted lymphatic delivery where appropriate.

TRT Franchise – TLANDO and LPCN (TLANDO XR)

TLANDO: An Oral Product for Testosterone Replacement Therapy

As previously described, under the Verity License Agreement, in January 2024 we granted to Verity Pharma an exclusive, royalty-bearing, sublicensable right and license to develop and commercialize TLANDO, our product for TRT, in the U.S. and Canada effective February 1, 2024. TLANDO received FDA approval on March 28, 2022. Any FDA requirement to conduct certain post-marketing studies will be the responsibility of Verity Pharma.

Proof-of-concept for TLANDO was initially established in 2006, and TLANDO was subsequently licensed in 2009 to Solvay Pharmaceuticals, Inc., which was then acquired by Abbott Products, Inc. (“Abbott”). Following a portfolio review associated with the spin-off of AbbVie Inc. by Abbott in 2011, the rights to TLANDO were reacquired by us. All obligations under the prior license agreement have been completed except that Lipocine will owe Abbott a perpetual 1% royalty on net sales of TLANDO. Such royalties are limited to $1 million in the first 2 calendar years following product launch, after which period there is no cap on royalties and no maximum aggregate amount. If generic versions of any such product are introduced, then royalties are reduced by 50%. TLANDO was commercially launched on June 7, 2022. During the three and six months ended June 30, 2024, we incurred royalty expense of approximately $7,000 and $16,000, respectively.

Since TLANDO received full FDA approval, under the terms of the Verity License Agreement, Verity Pharma will need to assess the safety and effectiveness of TLANDO in pediatric patients, as required by the Pediatric Research Equity Act. The FDA may also require certain post-marketing studies to be conducted which will also be the responsibility of Verity Pharma.

Upon execution of the Verity License Agreement, Verity Pharma paid us an initial payment of $2.5 million which was received on signing of the License Agreement and $5 million which was received on February 1, 2024. Verity Pharma is also required to make an additional payment of $2.5 million to us before January 1, 2025, and an additional payment of $1 million to us before January 1, 2026. We are also eligible to receive milestone payments of up to $259 million in the aggregate, depending on the achievement of certain sales milestones in a single calendar year and/or development milestones with respect to products licensed by Verity Pharma under the Verity License Agreement. In addition, we will receive tiered royalty payments at rates ranging from 12% up to 18% of net sales of all products licensed under the Verity License Agreement in the United States and Canada.

We are exploring the possibility of licensing LPCN 1021 (known as TLANDO in the United States) to third parties outside the United States and Canada, although no licensing agreement has been entered into by the Company. If and when an agreement is made with a partner, such arrangement would likely be partially contingent upon obtaining local regulatory approval. No assurance can be given that any license agreement will be completed or, if an agreement is completed, that such an agreement would be on terms favorable to us.

LPCN 1111: A Next-Generation Long-Acting Oral Product Candidate for TRT

As previously described, under the terms of the Verity License Agreement, we have licensed the development and commercialization rights to LPCN 1111 (TLANDO XR) in the U.S. and Canada to Verity Pharma. We will continue to explore the possibility of partnering LPCN 1111 with third parties outside the United States and Canada, although no partnering agreement has been entered into by the Company. No assurance can be given that any license agreement outside North America will be completed, or, if an agreement is completed, that such an agreement would be on terms favorable to us.

LPCN 1111 is a next-generation, novel ester prodrug of testosterone comprised of testosterone tridecanoate which uses our proprietary delivery technology to enhance solubility and improve systemic absorption. We completed a Phase 2b dose finding study in hypogonadal men in the third quarter of 2016. The primary objectives of the Phase 2b clinical study were to determine the starting Phase 3 dose of LPCN 1111 along with safety and tolerability of LPCN 1111 and its metabolites following oral administration of single and multiple doses in hypogonadal men. Good dose-response relationship was observed over the tested dose range in the Phase 2b study. Additionally, the target Phase 3 dose met primary and secondary end points. Overall, LPCN 1111 was well tolerated with no drug-related severe or serious adverse events reported in the Phase 2b study. All future development and commercialization of LPCN 1111 in the U.S. and Canada will be the responsibility of Verity Pharma.

Oral Programs for CNS Disorders

Some preferred endogenous or naturally occurring NAS present in the central nervous system act as positive allosteric modulators (“PAMs”) of the GABA_A receptor, the major biological target of the inhibitory neurotransmitter γ-aminobutyric acid (“GABA_A”). To improve oral delivery of these modulators, several synthetic NAS derivatives of endogenous GABA_A receptor PAMs have been developed for therapeutic use in the past few decades.

We believe through utilization of our proprietary technology we may have the ability to enable effective oral delivery of endogenous GABA_Areceptor PAMs which historically had been deemed to be not orally bioavailable. As a novel drug class, NASs have received considerable attention because of their potential to treat various neuropsychiatric conditions including depression, movement disorders, epilepsy, anxiety, and neurodegenerative diseases. We have conducted Phase 1 pharmacokinetic (“PK”) studies for each of our three lead NAS candidates which have demonstrated promising PK results, safety, and tolerability and we are evaluating additional undisclosed CNS-focused candidates.

LPCN 1154: Product Candidate for PPD

Our most advanced NAS candidate is LPCN 1154, a non-invasive, rapid onset, oral formulation of the neuroactive steroid brexanolone which we are developing for the treatment of PPD. In accordance with the FDA’s feedback on our proposal for establishing the efficacy of LPCN 1154 through a pivotal PK bridge to an approved IV infusion brexanolone via a 505(b)(2) NDA filing. The company has completed clinical oral PK studies including a pilot food effect study and a pilot PK bridge study. In addition, as a prelude to a LPCN 1154 pivotal study, a multi-dose study was done confirming the dosing regimen for the pivotal study using the scaled up “to be marketed” formulation required for NDA filing. In June 2024, we announced results from the pivotal PK study which demonstrated LPCN 1154 meets bioequivalence with comparator, IV brexanolone, meeting standard bioequivalence criteria and C_trough criteria. LPCN 1154 treatment was well-tolerated with no sedation nor somnolence events observed in the pivotal study.

We are currently conducting labeling studies such as a food effect study, PK profiling in women with PPD, and metabolite profiling, and are targeting NDA submission for LPCN 1154 by the end of the fourth quarter of 2024.

PPD

PPD, a type of major depressive disorder with onset either during pregnancy or within four weeks of delivery, refers to depression persisting up to 12 months after childbirth. PPD can be clinically segmented by the severity of symptoms and presence of a comorbidity, including epilepsy. Approximately 1 in 8 mothers suffers from PPD in the United States alone; this equates to approximately 500,000 women being affected by PPD annually.

Disease Overview - PPD

●

PPD is distinct from the “baby blues,” a condition that up to 70% of all new mother’s experience; “baby blues” tend to be short-lived emotional conditions that do not interfere with daily activities.

●

Symptoms of PPD include hallmarks of major depression, including, but not limited to, sadness, depressed mood, loss of interest, change in appetite, insomnia, sleeping too much, fatigue, difficulty thinking/concentrating, excessive crying, fear of harming the baby/oneself, and/or thoughts of death or suicide.

●

During pregnancy, levels of endogenous NASs increase considerably along with levels of progesterone; however, they drop sharply postpartum. It has been hypothesized that the rapid perinatal decrease in circulating levels of endogenous NASs may be involved in the development of PPD. The first approved treatment option for PPD was an injectable containing endogenous NASs.

●

Depression may persist long after child delivery. Additionally, approximately 40% of women relapse in subsequent pregnancies or on other occasions.

●

Psychiatric comorbidities are common in patients with epilepsy. Patients with epilepsy are at high risk for major depressive disorders and PPD. Reported PPD rates are higher among women with epilepsy than the general population.

Associated Risk Factors

●

Genetic: family history and/or previous experience of depression or other mood disorders

●

Physiological: rapid changes in sex hormones, stress hormones, and thyroid hormone levels during and after delivery

●

Environmental: stressful life events, changes in relationships at home and at work, and/or lack of familial support

Unmet Medical Need

We believe there is considerable unmet need within women with PPD due to a lack of convenient and fast-acting oral therapies. Selective Serotonin Reuptake Inhibitors (“SSRIs”) have been the traditional first-line choice for women with severe PPD and require weeks for onset of efficacy; therefore, a need for an oral treatment option with a faster onset of action remains a significant unmet need in treating PPD, especially in mothers with moderate to severe depression prone to harmful actions.

Injectable brexanolone (Zulresso™, Sage Therapeutics) became the first FDA-approved treatment for postpartum depression. However, numerous factors limit the utilization of injectable brexanolone such as method of administration, cost, and safety concerns. In addition to Zulresso, SAGE Therapeutics received FDA approval for zuranolone (brand name ZURZUVAE™) in August 2023 and Zurzuvae was launched commercially in December 2023. Zuranolone, a synthetic neuroactive steroid derivative, is an oral, once daily 14-day treatment for postpartum depression and is the first oral medication approved by the FDA for the treatment of postpartum depression. Per label, besides long terminal half-life of approximately 19.7 to 24.6 hours and dosage modifications needed for concomitant use with CYP3A4 modulators, warnings and precautions include CNS depressant effects, impaired ability to drive or engage in other potentially hazardous activities and embryo-fetal toxicity.

We believe LPCN 1154 targets the current unmet need for robust, rapid relief with 48-hour dosing duration through a convenient oral therapy candidate comprising bioidentical NASs with good tolerability.

LPCN 2101: NAS for Epilepsy

We are currently evaluating an additional NAS candidate, LPCN 2101, for women with epilepsy (“WWE”). We have completed pre-clinical and Phase 1 studies for LPCN 2101 which demonstrated promising PK results, safety and tolerability. In July 2022 our IND was accepted by the FDA for LPCN 2101 for adults with epilepsy and we plan to initiate a Phase 2 IND opening proof-of-concept study to evaluate the safety, tolerability, and efficacy of LPCN 2101, subject to resource prioritization.

Disease Overview – Epilepsy

Epilepsy is defined by the 1) occurrence of at least two unprovoked seizures more than 24 hours apart, 2) occurrence of one unprovoked seizure and a probability of further seizures occurring over the next 10 years, and/or 3) diagnosis of an epilepsy syndrome. Patients with epilepsy have increased risk of mortality due to direct effects of seizures (e.g., status epilepticus, car accidents) and indirect effects of seizures (e.g., suicide, cardiovascular effects).

Epilepsy is a disorder of the brain that causes seizures, affecting the physical, mental, and social well-being of persons, and is associated with a 2 to 3 times greater mortality rate compared with the general population. About 60-65% of epilepsy is idiopathic and about 30% of patients are refractory (i.e., epilepsy not well managed with currently available Anti-Seizure Medications (“ASMs”). Epilepsy is the most common neurological disorder during pregnancy.

It is estimated that approximately 900,000 childbearing (“CB”) age women suffer from active epilepsy in the U.S. Women of CB age with epilepsy face many additional challenges due to hormonal influences on seizure activity and endocrine function throughout the different phases of their reproductive cycles. Elevated estrogen or decreased progesterone levels can exacerbate seizure frequency. Often, these women experience hormonal and endogenous NAS imbalances, coupled with fluctuations in the blood levels of ASMs that impact control of seizures, efficacy of oral contraceptives, any coexisting anxiety and/or depression and any associated sleep impairment. Epileptic patients are 5-20 times more likely to develop depression.

Clinical segmentation can be categorized by epilepsy type, comorbidities and patient subgroups. Categorization of focal epilepsy, generalized epilepsy, combined focal and generalized epilepsy, and unknown epilepsy can guide the choice of ASM. Special patient subgroups, including WWE of CB age and elderly patients, require special care and management of epilepsy. Comorbidities such as depression and anxiety may be co-treated with therapies that do not aggravate seizures and have no drug interaction with the ASM used for epilepsy. While lowest effective dose and monotherapy are preferred, management of patients with epilepsy is focused on controlling seizures, avoiding adverse events, and maintaining quality of life. Despite a wide range of ASMs available, about 30% of all people with epilepsy still fail to respond to treatment effectively. Women with epilepsy face specific challenges throughout their lifespan because of seizures, ASMs, and hormonal fluctuations.

Women with epilepsy were once counseled to avoid pregnancy, but epilepsy is no longer considered a contraindication to pregnancy. Caregivers for WWE in the preconception phase either intending to start a family (planning pregnancy) or using contraception to prevent an unplanned pregnancy face significant challenges to balance seizure control efficacy with the selection and dosage of ASMs and ASM-related risks such as, among other risks, fetal-neonatal toxicity, contraception failure, and psychiatric side effects.

Several ASMs are known to have teratogenic effects on the developing fetus (converging evidence from registry studies indicates that teratogenic risks are highest with valproate, followed by carbamazepine and topiramate). Other commonly prescribed ASMs, including older generation agents, such as phenobarbital and phenytoin, have been associated with higher risks as compared with lamotrigine, levetiracetam, clonazepam and gabapentin (Vajda et al., 2014; Voinescu and Pennell, 2015). Moreover, risks associated with ASMs are considerable early in pregnancy; therefore, it is necessary that WWE of CB age undergo counseling, monitoring, and adjustment to the most appropriate ASM prior to becoming pregnant. It is preferable that WWE of CB age discuss seizure control with their doctor for at least 6 months before conception and, if possible, cease ASM therapy or use the lowest effective dose of a single anticonvulsant according to the type of epilepsy and the fetal toxicity of the ASM. Anxiety, depression, lack of adherence to ASM, and/or contraception failure may be experienced by women who are worried about unplanned pregnancy or are late in confirming pregnancy, planned or unplanned. ASMs can reduce the efficacy of oral contraceptives, compounding this problem.

Complex, multidirectional interactions between female hormones, seizures, and ASMs exist. Most hormones act as NASs and can thus modulate brain excitability. Any changes in endogenous or exogenous hormone levels can affect the occurrence of seizures, either directly or via PK interactions that modify the plasma levels of ASMs (Harden, 2008). The PK interactions between oral contraceptives and ASMs are bidirectional (Johnston and Crawford, 2014). The efficacy of hormonal contraception may be diminished for women taking CYP-P450 enzyme inducing ASMs. Epilepsy is not a medical condition in which contraceptives are contraindicated. Contraceptive failure, possibly related to ASMs, may be responsible for up to 1 in 4 unplanned pregnancies in WWE (~12.5% of all WWE pregnancies), versus a rate of 1% in healthy women.

Unmet need to treat WWE in CB age

It is estimated that approximately 900,000 CB age women suffer from active epilepsy in the U.S. Women of CB age with epilepsy face many additional challenges such as hormonal influences on seizure activity and endocrine function throughout the different phases of their reproductive cycles, and approximately 30% of patients with epilepsy cannot be efficiently controlled with available ASMs making consideration of newer pharmacological treatment development options important.

Managing uncontrolled seizures in WWE of CB age is the primary aim during preconception, pregnancy, and postpartum phases. Therefore, uncompromised ASM efficacy with acceptable variability and less or no drug-drug interactions achieved with lowest possible monotherapy dose to address fetal toxicity concerns remain highly unmet needs. Moreover, control of seizures including prevention of breakthrough seizures is critical when planning for pregnancy and also during pregnancy, as it can also lead to undesired falls or auto-accidents and compromise freedom to drive.

Select ASMs have the potential to induce contraception failures, reproductive hormone imbalance, anxiety, and depression. There remains an unmet need for an ASM without the aforementioned downsides, with no to low fetal-neonatal toxicity and without breast-feeding concerns, as well as the potential to treat associated comorbidities.

While over 30 molecules have been approved for the treatment of epilepsy in the U.S., no epilepsy drug has been specifically approved for WWE of CB age. We believe our endogenous NASs as GABA_A PAMs, while targeting the goal of seizure control, also have the potential for additional benefits in psychiatric disorders comorbidities (e.g., anxiety and/or depression) and sleep impairment. Moreover, these oral endogenous NASs could potentially address some of the fetal toxicity concerns related to unplanned or planned pregnancy in WWE. ⁽¹⁾

(1)

Ref: S.Bangar et al. Functional Neurology 2016; 31(3): 127-134; Reimers et al. Seizure. 2015 May; 28: 66-70.

LPCN 2203: Oral Product for Management of Essential Tremor

LPCN 2203 is an oral candidate for management of essential tremor comprising a bioidentical GABA modulating NAS. We have successfully completed oral pharmacokinetics with bioidentical GABA Modulating NAS and are planning to submit a protocol for a proof-of-concept phase 2 study for ET to the FDA.

Disease Overview - Essential Tremor

Essential Tremor (“ET”) is one of the most common movement disorders in the United States, affecting an estimated 7 million in the U.S. For ET patients, uncontrollable shaking of the hands, head, voice, or legs creates difficulty eating, dressing, writing, and pursuing other day-to-day tasks. The etiology of ET is largely unknown, but reduced GABA_A receptor levels and decreased GABAergic activity have been observed in ET.

While ET is often associated with aging populations, ET can begin much earlier in life, with a progressive disease course that can eventually necessitate a care partner. Social anxiety and depressive symptoms can manifest in patients with ET as tremor severity increases, and may negatively impact a patient’s ability to work and engage in hobbies. In an interview study of ET patients and care partners, the most common impacts on activities of daily living are pouring liquids and writing/typing (100%) and grooming/hygiene, drinking, dressing, eating, and reading (80-85%). Overall, 90% of participants noted the emotional impact of ET, with 75% reporting tremor-related worry or anxiety.

The only FDA approved pharmacological treatment for ET was approved more than 50 years ago, and the majority of patients with ET experience a sub-optimal response with standard-of-care treatments, highlighting numerous and compelling unmet needs in care such as daytime efficacy and improved tolerability, a PRN (pro re nata) or “as needed” option, and a superior benefit-to-risk profile.^{(1) (2)}

(1) Ref: Louis ED, Ottman R. Tremor Other Kyperkinet Mov (NY). 2014;4:259.

(2) Ref: Gerbasi et.al. Patient experiences in essential tremor: Mapping functional impacts to existing measures using qualitative research. MDS 2023.

Other Pipeline Candidates

We continue to pursue opportunities for partnering and/or development arrangements for the continued development and/or marketing of LPCN 2401, LPCN 1148, LPCN 1144, and LPCN 1107. We do not currently anticipate conducting any further significant development activities with respect to these products and product candidates without the participation of a partner. There can be no guarantee that we will be able to identify or enter into partnering arrangements on terms that are beneficial to us or at all. Even if we do enter into partnering arrangements, such arrangements may not be sufficient to successfully develop and commercialize these products.

LPCN 2401: For Improved Body Composition in Chronic Weight Management

LPCN 2401 is an oral formulation of a proprietary combination of anabolic androgen receptor agonist and α-alpha tocopherol, an antioxidant metabolic modifier. LPCN 2401 is expected to have a favorable benefit to risk profile as a non-invasive option with demonstrated benefits to the liver.

LPCN 2401 has potential for use in combination with incretin mimetics (GLP-1/GIP agonists) including amplification of GLP-1 insulinotropic actions which is supported by studies demonstrating the role of androgen receptor agonist in regulation of GLP-1 through:

	●	Enhancement of GLP-1-mediated insulin release from β cells through genomic- and non-genomic mechanisms
	●	Increase in GLP-1 Receptor Expression in diabetics and non-diabetics
	●	Promoting proliferation of β cells and improving insulin sensitivity

Target benefits of LPCN 2401 in combination with GLP-1 agonists include improved body composition with quality weight loss while attenuating lean mass loss, a serious unmet need, in addition to quality fat loss through appreciable abdominal fat loss. Moreover, as an adjunct to incretin mimetics, LPCN 2401 may increase weight loss, particularly in diabetics, through increased expression activity of GLP1R and increased effectiveness of GIP1 therapies secondary to actions at GLP1R (glucose lowering). LPCN 2401 could also be potentially used as monotherapy post discontinuation of GLP-1 agonist to manage weight/fat regain and durability of diabetes remission.

Data from preclinical and clinical studies support the potential of LPCN 2401 in improving body composition. In April 2024, Lipocine announced results from a multi-center prospective, blinded Phase 2 study, which demonstrated increases in lean mass of 4.4%, decreases in fat mass of 6.7%, reduction in android fat of 4.1% and increased bone mineral content of 2.8% in a population consistent with FDA guidance for developing products for weight management. As an adjunct therapy to incretin mimetics, LPCN 2401 has the potential to attenuate weight rebound, ameliorate loss of muscle mass, improve muscle quality and functionality, amplify fat mass loss with improved body composition, maintain weight, prevent “fat overshoot,” and accelerate muscle rebound post incretin mimetic discontinuation. We plan to request a meeting with the FDA to discuss the study design for a proof-of-concept phase 2 study for LPCN 2401. We may explore the possibility of partnering with a third party, although no partnering agreement has been entered into by the Company. No assurance can be given that any license agreement will be completed, or, if an agreement is completed, that such an agreement would be on terms favorable to us.

Disease Overview – Obesity Management

Approximately 74% of US adults age 20 and older are either obese or overweight, and an estimated 30% of the US adult population has a BMI ≥ 30 kg/m². Obesity is a chronic, relapsing health risk defined by excess body fat. Excess body fat increases the risk of death and major comorbidities such as type 2 diabetes, hypertension, dyslipidemia, cardiovascular disease, osteoarthritis of the knee, sleep apnea, and some cancers¹. Reportedly, ~24M² obese elderly are most vulnerable to losing muscle mass.

The rapid weight loss observed with the approved weight management medications includes unwanted lean mass loss, up to 40% of the patient’s total weight lost. Moreover, discontinuation of these therapies frequently results in a rapid regain in weight. Loss of lean mass has multiple negative health implications including weakness/fatigue, lowered metabolism which can cause a regain in fat mass, declines in neuromuscular function, potential effects on emotion and psychological states, and increased risk of injury.

Several recent studies showed that body composition, especially lean body mass (muscle) may play an independent role in survival of patients with diseases such as cancer and cardiovascular diseases (DH Lee and EL Giovannucci, Exp Biol Med. 2018). Therefore, a focus on body composition in obesity management to sustainably lose fat mass while maintaining lean mass should be an essential goal.

There is a significant unmet need for an oral, efficacious, muscle preserving/gaining option for chronic obesity/weight management that ameliorates the loss of lean mass associated with GLP-1/GIP agonist treatment, resulting in a higher quality weight loss. Moreover, there is a need for a chronic long-term pharmacotherapy option to maintain weight upon cessation of incretin mimetic therapy, prevent fat/weight rebound “overshoot” and minimize lag in muscle recovery to prevent collateral fattening as well as improve the durability of any achieved diabetes remission while on GLP-1.

(1) Ref: Caterson and Hubbard et al. 2004; Calle and Thun et al. 1999

(2) Ref: Flynn et al. Morgan Stanley, February 27, 2024

LPCN 1148: Oral Product Candidate for the Management of Decompensated Cirrhosis

We are currently evaluating LPCN 1148 comprising testosterone laurate (“TL”) for the management of decompensated cirrhosis. We believe LPCN 1148 targets unmet needs for cirrhosis subjects including improvement in the quality of life of patients while on the liver transplant waiting list, prevention or reduction in the occurrence of new decompensation events such as hepatic encephalopathy (“HE”), and improvement in post liver transplant survival, including outcomes and costs. We are exploring the possibility of partnering with a third party for the development and/or marketing of LPCN 1148, although no partnering agreement has been entered into by the Company. No assurance can be given that any partnering agreement will be completed, or, if an agreement is completed, that such an agreement would be on terms favorable to us.

We conducted a Phase 2 proof of concept (“POC”) study (NCT04874350) in male subjects with cirrhosis to evaluate the therapeutic potential of LPCN 1148 for the management of sarcopenia. The Phase 2 POC study was a prospective, multi-center, randomized, placebo-controlled study in male sarcopenic cirrhotic patients. Subjects were initially randomized 1:1 to 1 of 2 arms. The treatment arm was an oral dose of LPCN 1148, and the second arm was a matching placebo. There were no restrictions on patients with respect to background therapies, including current standard of care, diet or exercise. The primary endpoint was a change in skeletal muscle index at week 24 with key secondary endpoints including change in liver frailty index, rates of breakthrough HE, and number of waitlist events, including all-cause mortality. Total treatment was 52 weeks, with 24-week placebo-controlled treatment subjects receiving LPCN 1148 in the 28-week open-label extension (“OLE”) phase of the study for the duration of the study through week 52.

In July 2023 we announced that the Phase 2 study met the study primary endpoint, increased skeletal muscle index (L3-SMI) relative to placebo (P<.01), in patients with cirrhosis. The study also demonstrated improvements in clinical outcomes such as prevention of new decompensation events including HE, rates of hospitalizations, and patient reported outcomes (“PROs”). LPCN 1148 was well-tolerated, with adverse event (“AE”) rates and severities similar to placebo and no mortality was noted in the LPCN 1148 treatment group, nor were there any cases of drug-induced liver injury.

In March 2024 we announced that 24-week L3-SMI increases were maintained through 52 weeks of LPCN 1148 intervention and that placebo patients who switched to LPCN 1148 in the open label extension period of the study had increases in L3-SMI. Furthermore, fewer overt hepatic encephalopathy (“OHE”) events were observed in LPCN 1148 treated patients and time to first recurrent OHE event was longer for treated patients. LPCN 1148 was well-tolerated, with AE rates and severities similar to placebo and fewer participants experienced serious or severe adverse events when switched from placebo to LPCN 1148 and patients on therapy were hospitalized for fewer days. We plan to request a Type C meeting with the FDA to discuss the clinical development plan for LPCN 1148 in 2024.

Disease Overview – Cirrhosis

There are over 2 million cases of cirrhosis worldwide, with over 500,000 people living with decompensated cirrhosis in the U.S. Non-alcoholic fatty liver disease is the most rapidly increasing indication for liver transplant. 62% of those on the liver transplant (“LT”) waitlist are male and the economic burden (approximately $812,500/transplant) is high and continues to increase. Each year about half of the approximately 17,000 people in U.S. on the LT waitlist undergo transplant, while nearly 3,000 patients either die or are removed from the list because they were “too sick to transplant.”

Liver cirrhosis is defined as the histological development of regenerative nodules surrounded by fibrous bands. Patients with cirrhosis typically have a years-long silent, asymptomatic phase (compensated cirrhosis) until decreasing liver function and increasing portal pressure move the patient into the symptomatic phase (decompensated cirrhosis). Transition to decompensated cirrhosis is marked by clinical events including ascites, encephalopathy, jaundice, and/or variceal hemorrhage. Decompensated subjects survive on average less than 2 years. Common causes of liver cirrhosis include alcoholic liver disease, non-alcoholic fatty liver disease (“NAFLD”), chronic hepatitis B and C, primary biliary cirrhosis (“PBC”), and primary sclerosing cholangitis (“PSC”) and some patients have liver disease of unknown cause (cryptogenic).

Common complications in patients with cirrhosis may include: compromised liver function, portal hypertension, varices in GI tract with internal bleeding, edema, ascites, hepatic encephalopathy, compromised immunity with post-transplant acute rejection risk, high sodium levels, increased bilirubin, low albumin level, insulin resistance with impaired peripheral uptake of glucose, depression, accelerated muscle disorder in the form of sarcopenia, myosteatosis, and frailty with compromised energetics, bone diseases (e.g., osteoporosis), high alkaline phosphatase (“ALP”), cachexia, malnutrition, weight loss (>5%), symptoms of hypogonadism such as abnormal hair distribution, anemia, sexual dysfunction, testicular atrophy, muscle wasting, fatigue, osteoporosis, gynecomastia, inflammation with elevated cytokines, and infection risk leading to hospital admissions and possibly death.

HE, a significant decompensation event in patients with cirrhosis, is a brain dysfunction caused by liver insufficiency and/or portal systemic shunting. Because the damaged liver cannot function normally (as in cirrhosis), neurotoxins such as ammonia are inadequately removed from systemic circulation and travel to the brain, where they affect neurotransmission. This can cause episodes of HE, which may present as alterations in consciousness, cognition, and behavior that range from minimal to severe. Overt HE occurs in 30% to 40% of patients with cirrhosis at some point during the clinical course of their disease. As the burden of chronic liver disease and cirrhosis is increasing, the frequency of HE is also increasing.

LPCN 1144: An Oral Prodrug of Bioidentical Testosterone Product Candidate for the Treatment of NASH

We are exploring the possibility of partnering with a third party for LPCN 1144, although no partnering agreement has been entered into by the Company. No assurance can be given that any license agreement will be completed, or, if an agreement is completed, that such an agreement would be on terms favorable to us.

Disease Overview – NASH

NASH is an advanced state of non-alcoholic fatty liver disease (“NAFLD”) that can progress to a cirrhotic liver or liver failure, require liver transplant, and can result in hepatocellular carcinoma/ liver cancer, and death. Progression of NASH to end stage liver disease is one of the leading causes of liver failure requiring liver transplantation. Importantly, beyond these critical conditions, NASH and NAFLD patients additionally suffer heightened cardiovascular risk and die more frequently from cardiovascular events than from liver disease. NAFLD/NASH is becoming more common due to its strong correlation with obesity and metabolic syndrome, including components of metabolic syndrome such as diabetes, cardiovascular disease and high blood pressure. 20% to 30% of the U.S. population is estimated to suffer from NAFLD, with a large proportion of that group, 15% to 20%, progressing to NASH, which lacks an effective therapy. NASH is a silent killer that affects millions in the U.S. Diagnoses have been on the rise and are expected to increase dramatically in the next decade. Approximately 50% of NASH patients are adult males. In men, especially with comorbidities associated with NAFLD/NASH, testosterone deficiency has been associated with an increased accumulation of visceral adipose tissue and insulin resistance, which could be factors contributing to NAFLD/NASH. There is currently no approved therapy for the treatment of NASH although there are several drug candidates currently under development with many having clinical failures to date.

The critical pathophysiologic mechanisms underlying the development and progression of NASH include reduced ability to handle lipids, increased insulin resistance, injury to hepatocytes and liver fibrosis in response to hepatocyte injury. NASH patients have an excessive accumulation of fat in the liver resulting primarily from a caloric intake above and beyond energy needs. A healthy liver contains less than 5% fat, but a liver in someone with NASH can contain more than 20% fat. This abnormal liver fat contributes to the progression to NASH, a liver necro-inflammatory state that can lead to scarring, also known as fibrosis, and, for some, can progress to cirrhosis and liver failure.

Current Status

We have completed the LiFT Phase 2 clinical study in biopsy-confirmed non-cirrhotic NASH subjects. The LiFT clinical study was a prospective, multi-center, randomized, double-blind, placebo-controlled multiple-arm study in biopsy-confirmed hypogonadal and eugonadal male NASH subjects with grade F1-F3 fibrosis and a target NAFLD Activity Score ≥ 4 with a 36-week treatment period. The LiFT clinical study enrolled 56 biopsy confirmed NASH male subjects. Subjects were randomized 1:1:1 to one of three arms (Treatment A was a twice daily oral dose of 142 mg testosterone equivalent, Treatment B was a twice daily oral dose of 142 mg testosterone equivalent formulated with 217 mg of d-alpha tocopherol equivalent, and the third arm was a twice daily matching placebo).

The primary endpoint of the LiFT clinical study was change in hepatic fat fraction via MRI-PDFF and exploratory liver fat/marker end points post 12 weeks of treatment. Additionally, key secondary endpoints post 36 weeks of treatment included assessment of histological change for NASH resolution and/or fibrosis improvement (biopsy) as well as liver fat data (MRI-PDFF). The LiFT clinical study was not powered to assess statistical significance of any of the secondary endpoints. Other important endpoints included the following: change in liver injury markers, anthropomorphic measurements, body composition including lean mass, fat mass, and bone mineral density, lipids, insulin resistance and inflammatory/fibrosis markers; as well as patient reported outcomes.

Treatments with LPCN 1144 post 12 weeks of treatment in the LiFT study resulted in robust liver fat reduction, assessed by MRI-PDFF, and showed improvement of liver injury markers with no observed tolerability issues.

Liver biopsies were performed at baseline (“BL”) and after 36 weeks of treatment (“EOS”). Pre-specified biopsy analyses included NASH Clinical Research Network (“CRN”) scoring as well as a continuous paired (“Paired Technique”) and digital technique (“Digital Technique-Fibronest”). All biopsy analyses were performed on the same slides and the reads for the three techniques were done independently. Analysis sets included the NASH Resolution Set (all subjects that have BL and EOS biopsy with NASH at BL [NAS ≥4 with lobular inflammation score ≥ 1 and hepatocyte ballooning score ≥1 at BL] (n=37)), the Biopsy Set (all subjects with baseline and EOS biopsies (n=44)), and the Safety Set (all randomized subjects (n=56)).

Both LPCN 1144 treatment arms met with statistical significance the pre-specified accelerated approval regulatory endpoint of NASH resolution with no worsening of fibrosis based on NASH CRN scoring. Additionally, both treatment arms showed substantial improvement of the observed NASH activity in steatosis, inflammation, and ballooning.

During the 36 weeks of treatment, LPCN 1144 was well tolerated with an overall safety profile comparable to placebo. Additionally, subjects were given the option to have access to LPCN 1144 through an open label extension (“OLE”) study. The extension study enabled the collection of additional data on LPCN 1144 for up to a total of 72 weeks of therapy, as well as data for 36 weeks of therapy for those subjects on placebo in the LiFT study. Key results from the OLE study are as follows:

●

LPCN 1144 was well tolerated over 72-week exposure with no observed safety signals;

●

Liver injury markers were reduced and maintained with extended LPCN 1144 treatment; and

●

Observed liver histology improvements support further development.

In November 2021, the FDA granted Fast Track Designation to LPCN 1144 as a treatment for non-cirrhotic NASH. The Fast Track program is designed to accelerate the development and expedite the review of products, such as LPCN 1144, which are intended to treat serious diseases and for which there is an unmet medical need.

We had a written only response from the FDA for a LPCN 1144 Type C meeting with the FDA in January 2022 to discuss the development path forward with LPCN 1144. The FDA acknowledged that the NDA submission of LPCN 1144 would be via the 505(b)2 regulatory pathway and agreed that no additional non-clinical studies are needed to support an NDA submission. The FDA acknowledged that subjects in the LiFT study achieved improvements in key components associated with NASH histopathology after 36-weeks of treatment with LPCN 1144 in adult males and agreed that the proposed multicomponent primary surrogate endpoint is acceptable for seeking approval under the accelerated approval pathway. The FDA agreed that the proposed primary multicomponent surrogate endpoint, NASH resolution with no worsening of fibrosis, is acceptable for seeking approval under the accelerated approval pathway and the FDA recommended a Phase 3 trial with a study duration of 72 weeks. In July 2022, Lipocine held an End of Phase 2 meeting with the FDA for LPCN 1144 for NASH. The FDA recommended a Phase 2 dose ranging study be conducted to identify the optimal dose prior to conducting a pivotal study. The FDA agreed to the proposed unique testosterone ester, testosterone laurate, for future clinical studies.

LPCN 1107: An Oral Product Candidate for the Prevention of Preterm Birth (“PTB”)

We are exploring the possibility of partnering with a third party for the development and/or marketing of LPCN 1107, although no partnering agreement has been entered into by the Company. No assurance can be given that any partnering agreement will be completed, or, if an agreement is completed, that such an agreement would be on terms favorable to us.

We believe LPCN 1107 has the potential to become the first oral hydroxyprogesterone caproate (“HPC”) product indicated for the reduction of risk of PTB (delivery less than 37 weeks) in women with singleton pregnancy who have a history of singleton spontaneous PTB. Prevention of PTB is a significant unmet need as approximately 11% of all U.S. pregnancies result in PTB, a leading cause of neonatal mortality and morbidity.

Current Status

We have completed a multi-dose PK dose selection study in pregnant women. The objective of the multi-dose PK selection study was to assess HPC blood levels in order to identify the appropriate LPCN 1107 Phase 3 dose. The multi-dose PK dose selection study was an open-label, 4-period, 4-treatment, randomized, single and multiple dose PK study in pregnant women with 3 dose levels of LPCN 1107 and the IM HPC (Makena®). The study enrolled 12 healthy pregnant women (average age of 27 years) with a gestational age of approximately 16 to 19 weeks. Subjects received three dose levels of LPCN 1107 (400 mg BID, 600 mg BID, or 800 mg BID) in a randomized, crossover manner during the first 3 treatment periods and then received 5 weekly injections of HPC during the fourth treatment period. During each of the LPCN 1107 treatment periods, subjects received a single dose of LPCN 1107 on Day 1 followed by twice daily administration from Day 2 to Day 8. Following completion of the 3 LPCN 1107 treatment periods and a washout period, all subjects received 5 weekly injections of HPC. Results from this study demonstrated that average steady state HPC levels (Cavg0-24) were comparable or higher for all 3 LPCN 1107 doses than for injectable HPC. Additionally, HPC levels as a function of daily dose were linear for the 3 LPCN 1107 doses. Also, unlike the injectable HPC, steady state exposure was achieved for all 3 LPCN 1107 doses within 7 days.

A traditional PK/PD based Phase 2 clinical study in the intended patient population is not expected to be required prior to entering into Phase 3. Therefore, based on the results of our multi-dose PK study we had an End-of-Phase 2 meeting and subsequent guidance meetings with the FDA to define a pivotal Phase 2b/3 development plan for LPCN 1107. However, these discussions may be updated based on recent developments with Covis’ Makena® as described below. We have completed a food effect study to characterize the dosing regimen for the pivotal study and we have submitted a pivotal clinical study protocol to the FDA.

The FDA has granted orphan drug designation to LPCN 1107 based on a major contribution to patient care. Orphan designation qualifies Lipocine for various development incentives, including tax credits for qualified clinical testing, and a waiver of the prescription drug user fee when we file our NDA.

Recent Competition Update

On October 5, 2020, the FDA’s Center for Drug Evaluation and Research (“CDER”) proposed that Makena be withdrawn from the market because the PROLONG trial failed to verify the clinical benefit of Makena and concluded that the available evidence does not show Makena is effective for its approved use.

The CDER issued AMAG Pharmaceuticals, the NDA holder at the time, a Notice of Opportunity for Hearing (“NOOH”) to withdraw approval of Makena, for which AMAG Pharmaceuticals responded by requesting a hearing and providing detail on the company’s position, recognizing clinicians’ decade-long use of treatment with Makena and the public health implications of withdrawing approval. The FDA Commissioner held a public hearing with Covis from October 17 through 19, 2022, which resulted in a 14-1 vote recommending removal of the product from the market. On October 31, 2022, Covis approached the CDER and outlined a plan of orderly withdrawal which would set a withdrawal timeframe sufficient for current patients to complete their courses of treatment. The CDER declined this proposal. On March 6, 2023, Covis announced its plan to voluntarily withdraw Makena from the market and submitted a request to the CDER for a minimum 21-week wind-down. On April 6, 2023, the FDA withdrew its approval of Makena and ordered the immediate withdrawal of Makena and several approved generic versions of the drug, making it unlawful for the drug to be distributed in the U.S. The FDA stated that in light of the unmet need for a treatment for preventing preterm birth and improving neonatal outcomes, it is imperative that the medical and scientific communities increase their efforts to find effective treatments and stated their hope that the decision to withdraw Makena will help galvanize further research. The FDA further stated their commitment to working together with patients, researchers, and drug developers to advance the development of safe and effective therapies that are urgently needed as a treatment for the prevention of preterm birth.

Financial Operations Overview

Revenue

To date, we have not generated any revenues from product sales and do not expect to do so until one of our product candidates receives approval from the FDA. Revenues to date have been generated substantially from license fees, royalty and milestone payments and research support from our licensees. Since our inception through June 30, 2024, we have generated $49.6 million in revenue under our various license and collaboration arrangements and from government grants. We have entered into the Verity License Agreement with the potential for revenue from future milestones and royalties, but we may never generate revenues from any of our clinical or preclinical development programs or licensed products as we may never succeed in obtaining regulatory approval or commercializing any of these product candidates.

Research and Development Expenses

Research and development expenses consist primarily of salaries, benefits, stock-based compensation and related personnel costs, fees paid to external service providers such as contract research organizations and contract manufacturing organizations, contractual obligations for clinical development, clinical sites, manufacturing and scale-up for late stage clinical trials, formulation of clinical drug supplies, and expenses associated with regulatory submissions. Research and development expenses also include an allocation of indirect costs, such as those for facilities, office expense, and depreciation of equipment based on the ratio of direct labor hours for research and development personnel to total direct labor hours for all personnel. We expense research and development expenses as incurred. Since our inception, we have spent approximately $151.9 million in research and development expenses through June 30, 2024.

We expect to continue to incur significant costs as we develop our other product candidates, including our CNS product candidates, as well as the development of any future pipeline product candidates.

In general, the cost of clinical trials may vary significantly over the life of a project as a result of uncertainties in clinical development, including, among others:

●

the number of sites included in the trials;

●

the length of time required to enroll suitable subjects;

●

the duration of subject follow-ups;

●

the length of time required to collect, analyze and report trial results;

●

the cost, timing and outcome of regulatory review; and

●

potential changes by the FDA in clinical trial and NDA filing requirements.

Future research and development expenditures are subject to numerous uncertainties regarding timing and cost to completion, including, among others:

●

the timing and outcome of regulatory filings and FDA reviews and actions for product candidates;

●

our dependence on third-party manufacturers for the production of satisfactory finished products for registration and launch should regulatory approval be obtained on any of our product candidates;

●

the potential for future license or co-promote arrangements for our product candidates, when such arrangements will be secured, if at all, and to what degree such arrangements would affect our future plans and capital requirements; and

●

the effect on our product development activities of actions taken by the FDA or other regulatory authorities.

A change of outcome for any of these variables with respect to the development of our product development candidates could mean a substantial change in the costs and timing associated with these efforts, could require us to raise additional capital, and may require us to reduce operations.

Given the stage of clinical development and the significant risks and uncertainties inherent in the clinical development, manufacturing, and regulatory approval process, we are unable to estimate with any certainty the time or cost to complete the development of LPCN 1154, LPCN 2101, LPCN 2203, LPCN 2401, LPCN 1148, LPCN 1144, LPCN 1111, LPCN 1107 and other product candidates. Clinical development timelines, the probability of success, and development costs can differ materially from expectations and results from our clinical trials may not be favorable. If we are successful in progressing LPCN 1154, LPCN 2101, LPCN 2203 or other future product candidates into later stage development, we will require additional capital. The amount and timing of our future research and development expenses for these product candidates will depend on the pre-clinical and clinical success of both our current development activities and potential development of new product candidates, as well as ongoing assessments of the commercial potential of such activities. We will continue efforts to enter into partnership arrangements for the continued development and/or marketing of LPCN 1144, LPCN 1148, LPCN 2401, LPCN 1107 and TLANDO and LPCN 1111 outside of North America.

We expect to continue to incur significant research and development expenses in the future as we complete on-going clinical studies, including the studies for our CNS product candidates and as we conduct future clinical studies, including when and if we conduct Phase 2 clinical studies with our development product candidates and when and if we conduct Phase 3 clinical studies with LPCN 1144, LPCN 1148, and LPCN 1107. We are also exploring the possibility of licensing LPCN 1144, LPCN 1148, LPCN 2401 and LPCN 1107, although we have not entered into a licensing agreement and no assurance can be given that any license agreement will be completed, or, if an agreement is completed, that such an agreement would be on terms favorable to us. If we are unable to raise additional capital or obtain non-dilutive financing, we may need to reduce research and development expenses in order to extend our ability to continue as a going concern.

General and Administrative Expenses

General and administrative expenses consist primarily of salaries and related benefits, including stock-based compensation, related to our executive, finance, business development and administrative support functions. Other general and administrative expenses include rent and utilities, travel expenses, and professional fees for auditing, tax, legal, and various other services.

General and administrative expenses also include expenses for the cost of preparing, filling and prosecuting patent applications and maintaining, enforcing and defending intellectual property-related claims.

We expect that general and administrative expenses will increase in the future as we continue as a public company. These fees include legal and consulting fees, accounting and audit fees, director fees, directors’ and officers’ insurance premiums, fees for investor relations services and enhanced business and accounting systems, litigation costs, professional fees and other costs. However, if we are unable to raise additional capital, we may need to reduce general and administrative expenses in order to extend our ability to continue as a going concern.

Other Income and Expense

Other income and expense consists primarily of interest income earned on our cash, cash equivalents and marketable investment securities, imputed interest on minimum royalties under the Antares Licensing Agreement in 2023, and losses (gains) on our warrant liability.

Results of Operations

Comparison of the Three Months Ended June 30, 2024

The following table summarizes our results of operations for the three months ended June 30, 2024 and 2023:

	Three Months Ended June 30,
	2024			2023		Variance
Revenue	$	89,565		$	-	$	89,565
Research and development expenses		1,874,721			2,515,211		(640,490	)
General and administrative expenses		1,507,412			1,440,394		67,018
Interest and investment income		308,845			379,521		(70,676	)
Unrealized gain (loss) on warrant liability		(84,430	)		27,455		(111,885	)
Income tax expense		(481	)		-		(481	)

Revenue

We recognized revenue of approximately $90,000 consisting of royalty revenue received from our Verity License Agreement during the three months ended June 30, 2024, and revenue of $0 during the three months ended June 30, 2023, respectively.

Research and Development Expenses

The decrease in research and development expenses during the three months ended June 30, 2024, as compared to the three months ended June 30, 2023 consists of a $1.2 million decrease in contract research organization expense and outside consulting costs related to the wind down of our LPCN 1148 study in 2024, a $70,000 decrease in TLANDO related costs, and a $47,000 decrease in personnel related costs, offset by a $430,000 increase in costs related to our LPCN 1154 clinical studies, a $183,000 increase in other research and development related costs and a $24,000 increase in LPCN 2401 development costs.

General and Administrative Expenses

The increase in general and administrative expenses during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 consists of a $268,000 increase in business development expenses and a $129,000 increase in corporate legal fees. These increases are offset by a $82,000 decrease in corporate insurance expense, a $69,000 decrease in professional fees related to the 2023 reverse stock split, a $62,000 decrease in other various administrative consulting fees, a $62,000 decrease in travel related expenses, and a $56,000 decrease in various other general and administrative expenses.

Interest and Investment Income

The decrease in interest and investment income during the three months ended June 30, 2024 compared to interest and investment income during the three months ended June 30, 2023 was due to somewhat lower cash and marketable investment securities balances, in addition to no longer having imputed interest income on the Antares License Agreement contract asset in the six months ended June 30, 2024.

Gain (Loss) on Warrant Liability

We recorded a loss of approximately $84,000 and a gain of approximately $27,000 on warrant liability during the three months ended June 30, 2024 and 2023, respectively, related to the change in the fair value of outstanding common stock warrants issued in the November 2019 Offering. The loss in 2024 resulted from an increase in the fair value of warrants mainly due to a higher stock price at the end of the second quarter of 2024 compared to the stock price at the end of the first quarter of 2024. The gain in 2023 was attributable to a decrease in the fair value of warrants outstanding as of June 30, 2023 as compared to March 31, 2023, which was primarily due to the decrease in our stock price at the end of the second quarter 2023 compared to the stock price at the end of the first quarter of 2023. No common stock warrants from the November 2019 Offering were exercised during the either three or six months ended June 30, 2024 or 2023. The warrants are classified as a liability due to a provision contained within the warrant agreement which allows the warrant holder the option to elect to receive an amount of cash equal to the value of the warrants as determined in accordance with the Black-Scholes option pricing model with certain defined assumptions upon a change of control. The warrant liability will continue to fluctuate in the future based on inputs to the Black-Scholes model including our current stock price, the remaining life of the warrants, the volatility of our stock price, the risk-free interest rate and the number of common stock warrants outstanding.

Comparison of the Six Months Ended June 30, 2024

The following table summarizes our results of operations for the six months ended June 30, 2024 and 2023:

	Six Months Ended June 30,
	2024			2023			Variance
Revenue	$	7,706,738		$	54,990		$	7,651,748
Research and development expenses		4,693,646			5,621,521			(927,875	)
General and administrative expenses		3,083,131			2,727,708			355,423
Interest and investment income		640,209			749,991			(109,782	)
Unrealized gain (loss) on warrant liability		(124,502	)		125,589			(250,091	)
Income tax expense		(681	)		(200	)		(481	)

Revenue

We recognized revenue of $7.7 million primarily consisting of licensing revenue received from our Verity License Agreement during the six months ended June 30, 2024, and licensing revenue of $55,000 during the six months ended June 30, 2023, respectively.

Research and Development Expenses

The decrease in research and development expenses during the six months ended June 30, 2024, as compared to the six months ended June 30, 2023 consists of an $2.2 million decrease in contract research organization expense and outside consulting costs related to the wind down of our LPCN 1148 study in 2024, a $136,000 decrease in personnel related costs, and a $47,000 decrease in LPCN 1111 and LPCN 1144 clinical study costs. These decreases were offset by a $1.3 million increase in costs related to our LPCN 1154 clinical studies, a $46,000 increase in TLANDO related costs, a $36,000 increase in other research and development related costs, and a $24,000 increase in LPCN 2401 development costs.

General and Administrative Expenses

The increase in general and administrative expenses during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023 consists of a $789,000 increase in business development expenses, a $98,000 increase in corporate legal fees, and a $23,000 increase in director fees. These increases were offset by a $165,000 decrease in corporate insurance expense, a $124,000 decrease in costs related to our reverse stock split in 2023, a $144,000 decrease in various administrative consulting fees, a $57,000 decrease in personnel salaries and benefits, a $39,000 decrease in travel related costs, and a $26,000 decrease in various other general and administrative expenses.

Interest and Investment Income

The decrease in interest and investment income during the six months ended June 30, 2024 compared to interest and investment income during the six months ended June 30, 2023 was due to somewhat lower cash and marketable investment securities balances, in addition to no longer having imputed interest income on the Antares License Agreement contract asset in the six months ended June 30, 2024.

Gain (Loss) on Warrant Liability

We recorded a loss of approximately $125,000 and a gain of approximately $126,000 on warrant liability during the six months ended June 30, 2024 and 2023, respectively, related to the change in the fair value of outstanding common stock warrants issued in the November 2019 Offering. The loss in 2024 resulted from an increase in the fair value of warrants mainly due to a higher stock price at the end of the second quarter of 2024 compared to the stock price on December 31, 2023. The gain in 2023 was attributable to a decrease in the fair value of warrants outstanding as of June 30, 2023 as compared to December 31, 2022, primarily due to the decrease in our stock price at the end of the second quarter 2023 compared to the stock price on December 31, 2022, in addition to higher interest rates. No common stock warrants from the November 2019 Offering were exercised during either the six months ended June 30, 2024 or the six months ended June 30, 2023. The warrants are classified as a liability due to a provision contained within the warrant agreement which allows the warrant holder the option to elect to receive an amount of cash equal to the value of the warrants as determined in accordance with the Black-Scholes option pricing model with certain defined assumptions upon a change of control. The warrant liability will continue to fluctuate in the future based on inputs to the Black-Scholes model including our current stock price, the remaining life of the warrants, the volatility of our stock price, the risk-free interest rate and the number of common stock warrants outstanding.

Liquidity and Capital Resources

Since our inception, our operations have been primarily financed through sales of our equity securities, issuances of debt and payments received under our license and collaboration arrangements. We have devoted our resources to funding research and development programs, including discovery research, and preclinical and clinical development activities. We have incurred operating losses in most years since our inception and we expect to continue to incur operating losses into the foreseeable future as we advance the clinical development of LPCN 1154, LPCN 2101, LPCN 2203, LPCN 2401 and any other future product candidates, including continued research efforts.

As of June 30, 2024, we had $22.5 million of unrestricted cash, cash equivalents and marketable investment securities compared to $22.0 million at December 31, 2023.

On January 12, 2024, we entered into the Verity License Agreement with Verity Pharma, pursuant to which we granted to Verity Pharma an exclusive, royalty-bearing, sublicensable right and license to develop and commercialize our TLANDO product with respect to TRT in the U.S. and Canada. Upon execution of the Verity License Agreement in January 2024 and upon transition of the commercialization of TLANDO from Antares to Verity Pharma in February 2024, Verity Pharma paid us initial payments of $2.5 million and $5 million, respectively. Verity Pharma has also agreed to make additional payments to us of $2.5 million before January 1, 2025, and $1 million before January 1, 2026. The Verity License Agreement also provides Verity Pharma with a license to develop and commercialize TLANDO XR (LPCN 1111), our potential next generation, once daily oral product candidate for testosterone replacement therapy comprised of testosterone tridecanoate (“TT”) in the U.S. and Canada. We are eligible to receive milestone payments of up to $259 million in the aggregate, depending on the achievement of certain development milestones and sales milestones in a single calendar year with respect to all products licensed by Verity Pharma under the Verity License Agreement. In addition, we receive tiered royalty payments at rates ranging from 12% up to 18% of net sales of all products licensed to Verity Pharma in the United States and Canada. Our ability to realize benefits from the Verity License Agreement, including milestone and royalty payments, is subject to a number of risks. We may not realize milestone or royalty payments in anticipated amounts, or at all.

On March 6, 2017, we entered into a sales agreement (“Cantor Sales Agreement”) with Cantor Fitzgerald & Co. (“Cantor”) as sales agent pursuant to which we agreed to sell shares of our common stock, having registered up to $50.0 million for sale under the Cantor Sales Agreement.

During the three and six months ended June 30, 2024, we sold 32,110 shares of our common stock under the Cantor Sales Agreement. On April 24, 2024, we terminated the Cantor Sales Agreement. From the inception of the Cantor Sales Agreement to the termination of the agreement, we sold in aggregate 996,821 shares of our common stock for $33.5 million.

On April 26, 2024, we entered into a sales agreement with A.G.P. (the “A.G.P. Sales Agreement”) pursuant to which we may issue and sell, from time to time, shares of our common stock having an aggregate offering price of up to the amount we registered on an effective registration statement pursuant to which the offering is being made. We currently have registered up to $10,616,169 of shares of common shares for sale under the Sales Agreement, pursuant to the Registration Statement on Form S-3, as amended (File No. 333-275716) (the “Form S-3”), through A.G.P. as sales agent. A.G.P. may sell our common stock by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) of the Securities Act, including sales made directly on or through the Nasdaq Capital Market or any other existing trade market for our common stock, in negotiated transactions at market prices prevailing at the time of sale or at prices related to prevailing market prices, or any other method permitted by law. A.G.P. will use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable law and regulations to sell shares under the A.G.P. Sales Agreement. We will pay A.G.P. 3.0% of the aggregate gross proceeds from each sale of shares under the A.G.P. Sales Agreement. In addition, we have also provided A.G.P. with customary indemnification rights.

Our shares of common stock to be sold under the A.G.P. Sales Agreement will be sold and issued pursuant to the Form S-3, as amended, which was previously declared effective by the Securities and Exchange Commission, and the related prospectus and one or more prospectus supplements.

We are not obligated to make any sales of our common stock under the A.G.P. Sales Agreement. The offering of common stock pursuant to the A.G.P. Sales Agreement will terminate upon the termination of the A.G.P. Sales Agreement as permitted therein. We and A.G.P. may each terminate the A.G.P. Sales Agreement at any time upon ten days’ prior notice.

As of June 30, 2024, we had not sold any shares under the A.G.P. Sales Agreement.

We believe that our existing capital resources, together with interest thereon, will be sufficient to meet our projected operating requirements through at least August 8, 2025 which include on-going clinical studies for LPCN 1154, and/or LPCN 2101, research and development activities, and compliance with regulatory requirements. We have based this estimate on assumptions that may prove to be wrong, and we could utilize our available capital resources sooner than we currently expect if additional activities are performed by us including new clinical studies for LPCN 2401, LPCN 2203, LPCN 1148, LPCN 1144, LPCN 1111, and/or LPCN 1107. While we believe we have sufficient liquidity and capital resources to fund our projected operating requirements through at least August 8, 2025, we will need to raise additional capital at some point through the equity or debt markets or through additional out-licensing activities, either before or after August 8, 2025, to support our operations. If we are unsuccessful in raising additional capital as necessary, our ability to continue as a going concern will be limited. Further, our operating plan may change, and we may need additional funds to meet operational needs and capital requirements for product development, regulatory compliance and clinical trial activities sooner than planned. In addition, our capital resources may be consumed more rapidly if we pursue additional clinical studies for LPCN 1154, LPCN 2401, LPCN 2101, LPCN 2203, LPCN 1148, LPCN 1144, and/or LPCN 1107. Conversely, our capital resources could last longer if we reduce expenses, reduce the number of activities currently contemplated under our operating plan or if we terminate, modify or suspend on-going clinical studies. We can raise capital pursuant to the A.G.P. Sales Agreement but may choose not to issue common stock if our market price is too low to justify such sales in our discretion. There are numerous risks and uncertainties associated with the development and, subject to approval by the FDA, commercialization of our product candidates. There are numerous risks and uncertainties impacting our ability to enter into collaborations with third parties to participate in the development and potential commercialization of our product candidates. We are unable to precisely estimate the amounts of increased capital outlays and operating expenditures associated with our anticipated or unanticipated clinical studies and ongoing development efforts. All of these factors affect our need for additional capital resources. To fund future operations, we will need to ultimately raise additional capital and our requirements will depend on many factors, including the following:

●

the scope, rate of progress, results and cost of our clinical studies, pre-clinical testing and other related activities for all of our product candidates, including LPCN 1154, LPCN 2101 LPCN 2203, LPCN 2401, LPCN 1148, LPCN 1144, and LPCN 1107;

●

the cost of manufacturing clinical supplies and establishing commercial supplies, of our product candidates and any products that we may develop;

●

the cost and timing of establishing sales, marketing and distribution capabilities, if any;

●

the terms and timing of any collaborative, licensing, settlement and other arrangements that we may establish;

●

the number and characteristics of product candidates that we pursue;

●

the cost, timing and outcomes of regulatory approvals;

●

the timing, receipt and amount of sales, profit sharing, milestones or royalties, if any, from our potential products;

●

the cost of preparing, filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights;

●

the extent to which we acquire or invest in businesses, products or technologies, although we currently have no commitments or agreements relating to any of these types of transactions; and

●

the extent to which we grow significantly in the number of employees or the scope of our operations.

Funding may not be available to us on favorable terms, or at all. Also, market conditions may prevent us from accessing the debt and equity capital markets, including sales of our common stock through the Sales Agreement. If we are unable to obtain adequate financing when needed, we may have to delay, reduce the scope of or suspend one or more of our clinical studies, research and development programs or, if any of our product candidates receive approval from the FDA, commercialization efforts. We may seek to raise any necessary additional capital through a combination of public or private equity offerings, including the Sales Agreement, debt financings, collaborations, strategic alliances, licensing arrangements and other marketing and distribution arrangements. These arrangements may not be available to us or available on terms favorable to us. To the extent that we raise additional capital through marketing and distribution arrangements, other collaborations, strategic alliances or licensing arrangements with third parties, we may have to relinquish valuable rights to our product candidates, future revenue streams, research programs or product candidates or grant licenses on terms that may not be favorable to us. If we do raise additional capital through public or private equity offerings, the ownership interest of our existing stockholders will be diluted, and the terms of these securities may include liquidation or other preferences, warrants or other terms that adversely affect our stockholders’ rights or further complicate raising additional capital in the future. If we raise additional capital through debt financing, we may be subject to covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we are unable, for any reason, to raise needed capital, we will have to reduce costs, delay research and development programs, liquidate assets, dispose of rights, commercialize products or product candidates earlier than planned or on less favorable terms than desired or reduce or cease operations.

Sources and Uses of Cash

The following table provides a summary of our cash flows for the six months ended June 30, 2024 and 2023:

	Six Months Ended June 30,
	2024			2023
Cash used in operating activities	$	(90,258	)	$	(7,237,654	)
Cash provided by investing activities		662,531			9,115,069
Cash provided by (used in) financing activities		209,340			(11,216	)

Net Cash from Operating Activities

During the six months ended June 30, 2024 and June 30, 2023, net cash used in operating activities was $90,000 and $7.2 million, respectively.

Net cash used in operating activities during the six months ended June 30, 2024, was primarily attributable to cash required to support ongoing operations, including research and development expenses and general and administrative expenses, offset by cash provided by the Verity License Agreement of $7.5 million, Net cash used in operating activities during the six months ended June 30, 2023, was mainly primarily attributable to cash outlays to support ongoing operations, including research and development expenses and general and administrative expenses. During 2023, we performed activities primarily related to our Phase 2 POC study in male subjects with cirrhosis with LPCN 1148 and clinical studies related to LPCN 1154.

Net Cash from Investing Activities

During the six months ended June 30, 2024 and June 30, 2023, net cash provided by investing activities was $663,000 and $9.1 million.

Net cash provided by investing activities during the six months ended June 30, 2024 and June 30, 2023, was primarily the result of the maturities of marketable investments securities, net. There were no capital expenditures during the six months ended June 30, 2024, and approximately $4,000 in capital expenditures during the six months ended June 30, 2023.

Net Cash from Financing Activities

During the six months ended June 30, 2024 and 2023, net cash provided by financing activities and net cash used in financing activities was approximately $209,000 and $11,000, respectively.

Net cash provided by financing activities during the six months ended June 30, 2024, primarily resulted from the sale of 32,110 shares of common stock at a weighted average price of $6.77 per share under the ATM Sales Agreement. Net cash used in financing activities during the six months ended June 30, 2023 was related to costs associated with the Cantor Sales Agreement.

Contractual Commitments and Contingencies

Purchase Obligations

We enter into contracts and issue purchase orders in the normal course of business with clinical research organizations for clinical trials and clinical and commercial supply manufacturing and with vendors for pre-clinical research studies, research supplies and other services and products for operating purposes. These contracts generally provide for termination on notice and are cancellable obligations.

Operating Leases

In August 2004, we entered into an agreement to lease our facility in Salt Lake City, Utah consisting of office and laboratory space which serves as our corporate headquarters. On January 24, 2024, we modified and extended the lease through February 28, 2025.

Critical Accounting Policies and Significant Judgments and Estimates

Our management’s discussion and analysis of our financial condition and results of operations is based on our financial statements which we have prepared in accordance with U.S. generally accepted accounting principles (US GAAP). In preparing our financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We concluded that licensing revenue recognized in conjunction with the Verity License Agreement met the requirements under ASC 606, Revenue from Contracts with Customers. We evaluate the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenue recognition. License revenue from payments to be received in the future will be recognized when it is probable that we will receive license payments under the terms of the Verity License Agreement.

There have been no significant and material changes in our critical accounting policies during the six months ended June 30, 2024, as compared to those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Significant Judgments and Estimates” in our Form 10-K filed March 7, 2024.

Accounting Standards Issued Not Adopted

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to various market risks, which include potential losses arising from adverse changes in market rates and prices, such as interest rates. We do not enter into derivatives or other financial instruments for trading or speculative purposes.

There have been no material changes to the Company’s market risk during the first six months of 2024. For a discussion of the Company’s exposure to market risk, refer to the Company’s market risk disclosures set forth in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of the 2023 Form 10-K.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain “disclosure controls and procedures” within the meaning of Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Our disclosure controls and procedures, (“Disclosure Controls”) are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act, such as this Quarterly Report on Form 10-Q, is recorded, processed, summarized and reported within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms. Our Disclosure Controls include, without limitation, controls and procedures designed to ensure that such information is accumulated and communicated to our management, including our Chief Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

As of the end of the period covered by this Quarterly Report on Form 10-Q, we evaluated the effectiveness of the design and operation of our Disclosure Controls, which was done under the supervision and with the participation of our management, including our Chief Executive Officer and our Principal Financial Officer. Based on the controls evaluation, our Chief Executive Officer and Principal Financial Officer have concluded that our Disclosure Controls were effective as of June 30, 2024.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the most recent fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Please refer to Note 10 – Commitments and Contingences to the condensed consolidated financial statements contained in this report for certain information regarding our legal proceedings. We are not currently a party to any material litigation or other material legal proceedings. We may, from time to time, be involved in various legal proceedings arising from the normal course of business activities, and, while the Company has insurance that covers claims of this nature, unfavorable resolution of any of these matters could materially affect our future results of operations, cash flows, or financial position.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this Report, consider the risk factors discussed in Part 1, “Item 1A. Risk Factors” in the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 7, 2024, risk factors discussed in Item 1A of the Form 10-Q for the quarter ended March 31, 2024, filed with the SEC on May 9, 2024, and the risk factors discussed in Item 1A of this Form 10-Q, which could materially affect our business, financial condition or future results. The risks described in the aforementioned reports are not the only risks facing the Company. Additional risks and uncertainties not currently known to the Company or that it currently deems to be not material also may materially adversely affect the Company’s business, financial condition, and/or operating results.

The following are the risk factors that have materially changed from our risk factors included in our Form 10-K for the year ended December 31, 2023, filed with the SEC on March 7, 2024:

Risks Relating to Our Business and Industry

LPCN 2401 is in a very early stage of development and may not be further developed for a variety of reasons.

LPCN 2401 is in a very early stage of development and consequently the risk that we may fail to develop, commercialize, or partner LPCN 2401 and related products is high. This development program is susceptible to technical failures in future clinical studies and regulatory hurdles for further testing and/or meeting the FDA’s needs for NDA filing or approval. The result of a possible POC Phase 2 study may not be indicative of ultimate success in a larger Phase 2 or Phase 3 clinical study and, although we are exploring the possibility of partnering LPCN 2401 to a third party for further development and commercialization, we may not be able to identify potential partners or successfully enter into partnership arrangements on terms favorable to us, if at all. We may not be able to further test in-clinic in a timely manner or at all due to other regulatory hurdles. In addition, LPCN 2401 in combination with incretin mimetics may not be effective in achieving weight loss and improving body composition or may not have differentiation from competitive products on the market or in development. Pending resource availability, we may expend significant resources before determining that these programs are not viable candidates for regulatory approval and commercialization.

Risks Related to Ownership of Our Common Stock

The value of our warrants outstanding from the November 2019 Offering is subject to potential material increases and decreases based on fluctuations in the price of our common stock, among other factors.

In November 2019, we completed a public offering of common stock and warrants to purchase common stock (the “November 2019 Offering”). Gross proceeds from the November 2019 Offering were approximately $6.0 million. In the November 2019 Offering, the Company sold (i) 614,706 Class A Units, with each Class A Unit consisting of one share of common stock and a common stock warrant to purchase one share of common stock, and (ii) 91,177 Class B Units, with each Class B Unit consisting of one pre-funded warrant to purchase one share of common stock and one common stock warrant to purchase one share of common stock at a price of $8.50 per Class A Unit and $8.4998 per Class B Unit. The pre-funded warrants were issued in lieu of common stock in order to ensure the purchaser did not exceed certain beneficial ownership limitations. The pre-funded warrants were immediately exercisable at an exercise price of $0.0017 per share, subject to adjustment. Additionally, the common stock warrants were immediately exercisable at an exercise price of $8.50 per share and expire on November 17, 2024. As of June 30, 2024, there were 64,362 warrants from the November 2019 offering outstanding.

We account for the common stock warrants as a derivative instrument, and changes in the fair value of the warrants are included under other income (expense) in the Company’s statements of operations for each reporting period. On June 30, 2024, the aggregate fair value of the warrant liability included in the Company’s consolidated balance sheet was approximately $142,000. We use the Black-Scholes option pricing model to determine the fair value of the warrants. As a result, the option-pricing model requires the input of several assumptions, including the stock price volatility, share price and risk-free interest rate. Changes in these assumptions can materially affect the fair value estimate. While the liability may only result from a change of control at that point in time, we ultimately may incur amounts significantly different than the carrying value.

Our management and directors will be able to exert influence over our affairs.

As of June 30, 2024, our executive officers and directors beneficially owned approximately 6.1% of our common stock. These stockholders, if they act together, may be able to influence our management and affairs and all matters requiring stockholder approval, including significant corporate transactions. This concentration of ownership may have the effect of delaying or preventing a change in control and might affect the market price of our common stock.

The market price of our common stock has been volatile over the past year and may continue to be volatile.

The market price and trading volume of our common stock has been volatile over the past year and it may continue to be volatile. Over the past year, our common stock has traded as low as $2.36 and as high as $10.69 per share. We cannot predict the price at which our common stock will trade in the future and it may decline. The price at which our common stock trades may fluctuate significantly and may be influenced by many factors, including our financial results; developments generally affecting our industry; general economic, industry and market conditions, and our customers; the depth and liquidity of the market for our common stock; investor perceptions of our business; reports by industry analysts; announcements by other market participants, including, among others, investors, our competitors, and our customers; regulatory action affecting our business; and the impact of other “Risk Factors” discussed herein and in our Annual Report on Form 10-K filed with the SEC on March 7, 2024. In addition, changes in the trading price of our common stock may be inconsistent with our operating results and outlook. The volatility of the market price of our common stock may be inconsistent with our operating results and outlook. The volatility of the market price of our common stock may adversely affect investors’ ability to purchase or sell shares of our common stock.

Risks Relating to Our Financial Position and Capital Requirements

We have incurred significant operating losses in most years since our inception and anticipate that we will incur continued losses for the foreseeable future.

We have focused a significant portion of our efforts on developing TLANDO and more recently on LPCN 1154, LPCN 1148, and LPCN 1144. We have funded our operations to date through sales of our equity securities, debt and payments received under our license and collaboration arrangements. We have incurred losses in most years since our inception. As of June 30, 2024, we had an accumulated deficit of $199.3 million. Substantially all of our operating losses resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations. These losses, combined with expected future losses, have had and will continue to have an adverse effect on our stockholders’ equity. We expect to continue to incur significant research and development expenses in connection with clinical trials associated with LPCN 1154, and potentially with LPCN 2401, LPCN 2101, LPCN 2203, LPCN 1148, LPCN 1144 and LPCN 1107, if further clinical trials are initiated. As a result, we expect to continue to incur significant operating losses for the foreseeable future as we evaluate further clinical development of LPCN 1154, LPCN 2401, LPCN 2101, LPCN 2203, and possibly LPCN 1148, LPCN 1144, and LPCN 1107, in addition to our other programs and continued research efforts. Because of the numerous risks and uncertainties associated with developing pharmaceutical products, we are unable to predict the extent of any future losses or when we will become profitable, if at all.

ITEM 5.

OTHER INFORMATION

10b5-1 Trading Plans

During the second quarter of 2024, none of our directors or executive officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated any “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” (as each term is defined in Item 408(a) of Regulation S-K).

ITEM 6. EXHIBITS

INDEX TO EXHIBITS

Exhibit		Incorporation By Reference
Number	Exhibit Description	Form	SEC File No.	Exhibit	Filing Date

3.1	Amended and Restated Bylaws	8-K	333-178230	3.3	7/25/2013

3.2	Amendment to the Amended and Restated Bylaws of Lipocine Inc.	8-K	001-36357	3.1	3/10/2023

3.3	Amended and Restated Certificate of Incorporation	8-K	333-178230	3.2	7/25/2013

3.4	Certificate of Designation of Series A Junior Participating Preferred Stock.	8-K	001-36357	3.1	12/1/2015

3.5	Certificate of Increase of Series A Junior Participating Preferred Stock	8-K	001-36357	3.1	11/1/2021

3.6	Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Lipocine Inc.	8-K	001-36357	3.1	6/28/2022
3.7	Certificate of Designation of Series B Preferred Stock	8-K	001-36357	3.2	3/10/2023

3.8	Certificate of Amendment to the Amended and Restated Certificated of Incorporation of Lipocine Inc.	8-K	001-36357	3.2	5/11/2023

3.9	Fifth Amended and Restated 2014 Stock and Incentive Plan	8-K	001-36357	10.1	6/03/2024

31.1*	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2^*	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1^*	Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350 (1)

32.2^*	Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350 (1)

101.INS^*	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH^*	Inline XBRL Taxonomy Extension Schema Document

101.CAL^*	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF^*	Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB^*	Inline XBRL Taxonomy Extension Labels Linkbase Document

101.PRE^*	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

^*	Filed herewith
^**	Management contract or compensation plan or arrangement
⁺	Confidential treatment has been granted with respect to certain portions of this exhibit. Omitted portions have been submitted separately with the Securities and Exchange Commission

(1)

This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Registrant under the Securities Act, or the Exchange Act (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Lipocine Inc.
	(Registrant)

Dated: August 8, 2024	/s/ Mahesh V. Patel
	Mahesh V. Patel, President and Chief Executive Officer (Principal Executive Officer and Principal Financial Officer)

Dated: August 8, 2024	/s/ Krista Fogarty
	Krista Fogarty, Corporate Controller (Principal Accounting Officer)

EXHIBIT 31.1

CERTIFICATIONS

I, Mahesh V. Patel, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Lipocine Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 8, 2024		/s/ Mahesh V. Patel
		Mahesh V. Patel, President and Chief Executive Officer
		(Principal Executive Officer)

EXHIBIT 31.2

CERTIFICATIONS

I, Mahesh V. Patel, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Lipocine Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 8, 2024

/s/ Mahesh V. Patel

Mahesh V. Patel

(Principal Financial Officer)

EXHIBIT 32.1

CERTIFICATION

In connection with the Quarterly Report on Form 10-Q of Lipocine Inc. (the “Corporation”) for the quarter ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Mahesh V. Patel, President and Chief Executive Officer of the Corporation, hereby certifies, pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Dated: August 8, 2024

/s/ Mahesh V. Patel

Mahesh V. Patel, President and Chief Executive Officer

(Principal Executive Officer)

EXHIBIT 32.2

CERTIFICATION

In connection with the Quarterly Report on Form 10-Q of Lipocine Inc. (the “Corporation”) for the quarter ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Mahesh V. Patel, Principal Financial Officer of the Corporation, hereby certifies, pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Dated: August 8, 2024

/s/ Mahesh V. Patel

Mahesh V. Patel

(Principal Financial Officer)

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 08, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	001-36357
Entity Registrant Name	LIPOCINE INC.
Entity Central Index Key	0001535955
Entity Tax Identification Number	99-0370688
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	675 Arapeen Drive
Entity Address, Address Line Two	Suite 202
Entity Address, City or Town	Salt Lake City
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84108
City Area Code	801
Local Phone Number	994-7383
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	LPCN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,347,940

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 5,553,371	$ 4,771,758
Marketable investment securities	16,995,424	17,263,788
Accrued interest income	63,636	52,254
Prepaid and other current assets	297,051	773,424
Total current assets	22,909,482	22,861,224
Property and equipment, net of accumulated depreciation of $1,199,215 and $1,182,191 respectively	99,071	116,095
Other assets	23,753	23,753
Total assets	23,032,306	23,001,072
Current liabilities:
Accounts payable	448,798	1,395,977
Accrued expenses	1,233,477	1,218,486
Warrant liability	141,668	17,166
Total current liabilities	1,823,943	2,631,629
Total liabilities	1,823,943	2,631,629
Commitments and contingencies (notes 7, 8, 9 and 10)
Stockholders’ equity:
Common stock, par value $0.0001 per share, 200,000,000 shares authorized; 5,348,276 and 5,316,166 issued, and 5,347,940 and 5,315,830 outstanding, respectively outstanding	8,863	8,860
Additional paid-in capital	220,582,158	220,171,250
Treasury stock at cost, 336 shares	(40,712)	(40,712)
Accumulated other comprehensive gain (loss)	(9,719)	7,259
Accumulated deficit	(199,332,227)	(199,777,214)
Total stockholders’ equity	21,208,363	20,369,443
Total liabilities and stockholders’ equity	$ 23,032,306	$ 23,001,072

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accumulated depreciation	$ 1,199,215	$ 1,182,191
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	5,348,276	5,316,166
Common stock, shares outstanding	5,347,940	5,315,830

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues:
License revenue			$ 7,500,000	$ 54,990
Royalty revenue	89,565		206,738
Total revenues	89,565		7,706,738	54,990
Operating expenses:
Research and development	1,874,721	2,515,211	4,693,646	5,621,521
General and administrative	1,507,412	1,440,394	3,083,131	2,727,708
Total operating expenses	3,382,133	3,955,605	7,776,777	8,349,229
Operating loss	(3,292,568)	(3,955,605)	(70,039)	(8,294,239)
Other income (expense):
Interest and investment income	308,845	379,521	640,209	749,991
Unrealized gain (loss) on warrant liability	(84,430)	27,455	(124,502)	125,589
Total other income, net	224,415	406,976	515,707	875,580
Income (loss) before income tax expense	(3,068,153)	(3,548,629)	445,668	(7,418,659)
Income tax expense	(481)		(681)	(200)
Net income (loss)	(3,068,634)	(3,548,629)	444,987	(7,418,859)
Issuance of Series B preferred stock dividend				(89)
Net income (loss) attributable to common shareholders	$ (3,068,634)	$ (3,548,629)	$ 444,987	$ (7,418,948)
Basic earnings (loss) per share attributable to common stock	$ (0.57)	$ (0.68)	$ 0.08	$ (1.42)
Weighted average common shares outstanding, basic	5,343,922	5,234,830	5,329,876	5,234,830
Diluted earnings (loss) per share attributable to common stock	$ (0.56)	$ (0.68)	$ 0.10	$ (1.44)
Weighted average common shares outstanding, diluted	5,343,922	5,234,830	5,459,204	5,234,830
Comprehensive income (loss):
Net income (loss)	$ (3,068,634)	$ (3,548,629)	$ 444,987	$ (7,418,859)
Unrealized net loss on marketable investment securities	885	(19,053)	(16,978)	4,509
Comprehensive income (loss)	(3,067,749)	(3,567,682)	428,009	(7,414,350)
Balance	23,956,407	31,960,028	20,369,443	35,634,940
Stock-based compensation	102,265	164,865	201,571	342,637
Redemption of Series B preferred stock
Costs associated with ATM Offering		(5,200)
Balance	21,208,363	28,552,011	21,208,363	28,552,011
Issuance of Series B preferred stock
Common stock sold through ATM offering	217,440		209,340	(11,216)
Preferred Stock [Member] \| Series B Preferred Stock [Member]
Other income (expense):
Net income (loss)
Comprehensive income (loss):
Net income (loss)
Unrealized net loss on marketable investment securities
Balance		$ 9
Balance, shares		88,511
Stock-based compensation
Redemption of Series B preferred stock		$ (9)		$ (9)
Redemption of Series B preferred stock, shares		(88,511)		(88,511)
Costs associated with ATM Offering
Balance
Balance, shares
Issuance of Series B preferred stock				$ 9
Issuance of Series B preferred stock dividend, shares				88,511
Common stock sold through ATM offering
Common Stock [Member]
Other income (expense):
Net income (loss)
Comprehensive income (loss):
Net income (loss)
Unrealized net loss on marketable investment securities
Balance	$ 8,860	$ 8,852	$ 8,860	$ 8,852
Balance, shares	5,315,830	5,234,830	5,315,830	5,234,830
Stock-based compensation
Redemption of Series B preferred stock
Costs associated with ATM Offering
Balance	$ 8,863	$ 8,852	$ 8,863	$ 8,852
Balance, shares	5,347,940	5,234,830	5,347,940	5,234,830
Issuance of Series B preferred stock
Common stock sold through ATM offering	$ 3		$ 3
Common stock sold through ATM offering, shares	32,110		32,110
Treasury Stock, Common [Member]
Other income (expense):
Net income (loss)
Comprehensive income (loss):
Net income (loss)
Unrealized net loss on marketable investment securities
Balance	$ (40,712)	$ (40,712)	$ (40,712)	$ (40,712)
Balance, shares	336	336	336	336
Stock-based compensation
Redemption of Series B preferred stock
Costs associated with ATM Offering
Balance	$ (40,712)	$ (40,712)	$ (40,712)	$ (40,712)
Balance, shares	336	336	336	336
Issuance of Series B preferred stock
Common stock sold through ATM offering
Additional Paid-in Capital [Member]
Other income (expense):
Net income (loss)
Comprehensive income (loss):
Net income (loss)
Unrealized net loss on marketable investment securities
Balance	220,262,456	219,284,000	220,171,250	219,112,164
Stock-based compensation	102,265	164,865	201,571	342,637
Redemption of Series B preferred stock		9		9
Costs associated with ATM Offering		(5,200)
Balance	220,582,158	219,443,674	220,582,158	219,443,674
Issuance of Series B preferred stock				80
Common stock sold through ATM offering	217,437		209,337	(11,216)
AOCI Attributable to Parent [Member]
Other income (expense):
Net income (loss)
Comprehensive income (loss):
Net income (loss)
Unrealized net loss on marketable investment securities	885	(19,053)	(16,978)	4,509
Balance	(10,604)	3,241	7,259	(20,321)
Stock-based compensation
Redemption of Series B preferred stock
Costs associated with ATM Offering
Balance	(9,719)	(15,812)	(9,719)	(15,812)
Issuance of Series B preferred stock
Common stock sold through ATM offering
Retained Earnings [Member]
Other income (expense):
Net income (loss)	(3,068,634)	(3,548,629)	444,987	(7,418,859)
Comprehensive income (loss):
Net income (loss)	(3,068,634)	(3,548,629)	444,987	(7,418,859)
Unrealized net loss on marketable investment securities
Balance	(196,263,593)	(187,295,362)	(199,777,214)	(183,425,043)
Stock-based compensation
Redemption of Series B preferred stock
Costs associated with ATM Offering
Balance	(199,332,227)	$ (190,843,991)	(199,332,227)	(190,843,991)
Issuance of Series B preferred stock				(89)
Common stock sold through ATM offering

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income (loss)	$ 444,987	$ (7,418,859)
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation expense	17,024	12,910
Stock-based compensation expense	201,571	342,637
Non-cash loss (gain) on change in fair value of warrant liability	124,502	(125,589)
Amortization of discounts on marketable investment securities	(411,145)	(508,425)
Changes in operating assets and liabilities:
Accrued interest income	(11,382)	56,197
Prepaid and other current assets	476,373	254,419
Accounts payable	(947,179)	(82,801)
Accrued expenses	14,991	231,857
Cash used in operating activities	(90,258)	(7,237,654)
Cash flows from investing activities:
Purchase of property and equipment		(4,000)
Purchases of marketable investment securities	(17,537,469)	(8,780,931)
Maturities of marketable investment securities	18,200,000	17,900,000
Net cash provided by investing activities	662,531	9,115,069
Cash flows from financing activities:
Net proceeds from sale of common stock through ATM	209,340	(11,216)
Cash provided by (used in) financing activities	209,340	(11,216)
Net increase in cash and cash equivalents	781,613	1,866,199
Cash and cash equivalents at beginning of period	4,771,758	3,148,496
Cash and cash equivalents at end of period	5,553,371	5,014,695
Supplemental disclosure of cash flow information:
Income taxes paid	681	656
Supplemental disclosure of non-cash investing and financing activities:
Net unrealized gain (loss) on available-for-sale securities	(16,978)	4,509
Issuance of Series B preferred stock		$ 89

Pay vs Performance Disclosure - USD ($)	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (3,068,634)	$ (3,548,629)	$ 444,987	$ (7,418,859)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual [Table]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

(1) Basis of Presentation

Revenue

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue

(2) Revenue

See Note 7 for a description of the Verity License Agreement. See Note 11 for a description of the agreement with Spriaso, a related party.

License Fees

Royalties

Revenue Concentration

Earnings (Loss) per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings (Loss) per Share

(3) Earnings (Loss) per Share

The following table sets forth the computation of basic and diluted earnings (loss) per share of common stock for the three and six months ended June 30, 2024 and 2023:

	2024			2023			2024			2023
	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Basic earnings (loss) per share attributable to common stock:
Numerator
Net income (loss)	$	(3,068,634	)	$	(3,548,629	)	$	444,987		$	(7,418,948	)

Denominator
Weighted avg. common shares outstanding		5,343,922			5,234,830			5,329,876			5,234,830

Basic earnings (loss) per share attributable to common stock	$	(0.57	)	$	(0.68	)	$	0.08		$	(1.42	)

Diluted earnings (loss) per share attributable to common stock:
Numerator
Net income (loss)	$	(3,068,634	)	$	(3,548,629	)	$	444,987		$	(7,418,948	)
Effect of dilutive securities on net income (loss):
Common stock warrants		(84,430	)		27,455			(124,502	)		125,589
Total net earnings (loss) for purpose of calculating diluted earnings (loss) per common share	$	(2,984,204	)	$	(3,576,084	)	$	569,489		$	(7,544,537	)
Denominator
Weighted avg. common shares outstanding		5,343,922			5,234,830			5,329,876			5,234,830
Weighted average effect of dilutive securities:
Stock options		-			-			122,074			-
Restricted stock units		-			-			7,254			-
Dilutive securities		-			-			7,254			-
Total shares for purpose of calculating diluted net earnings (loss) per common share		5,343,922			5,234,830			5,459,204			5,234,830
Diluted earnings (loss) per share attributable to common stock	$	(0.56	)	$	(0.68	)	$	0.10		$	(1.44	)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Stock options		295,517		264,150		173,443		264,150
Unvested restricted stock units		21,762		-		14,508		-
Warrants		49,333		49,433		49,433		49,433

Marketable Investment Securities

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Marketable Investment Securities

(4) Marketable Investment Securities

June 30, 2024	Amortized Cost		Gross unrealized holding gains		Gross unrealized holding losses			Aggregate fair value

Government treasury bills	$	6,212,764	$	98	$	-		$	6,212,862
U.S. government agency securities		10,792,379		-		(9,817	)		10,782,562

	$	17,005,143	$	98	$	(9,817	)	$	16,995,424

December 31, 2023	Amortized Cost		Gross unrealized holding gains		Gross unrealized holding losses			Aggregate fair value

Government treasury bills	$	14,272,530	$	8,574	$	-		$	14,281,104
U.S. government agency securities		2,983,999		-		(1,315	)		2,982,684

	$	17,256,529	$	8,574	$	(1,315	)	$	17,263,788

Maturities of debt securities classified as available-for-sale securities as of June 30, 2024 are as follows:

June 30, 2024

Amortized Cost

Aggregate

fair value

Due within one year

17,005,143

16,995,424

17,005,143

16,995,424

Fair Value

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value

(5) Fair Value

	●	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.

			Fair value measurements at reporting date using
	June 30, 2024		Level 1 inputs		Level 2 inputs		Level 3 inputs

Assets:
Cash equivalents - money market funds	$	4,459,338	$	4,459,338	$	-	$	-
Cash equivalents - treasury bills		1,290,186		1,290,186		-		-
Government treasury bills		6,212,862		6,212,862		-		-
US. Government agency securities		10,782,562		10,782,562		-		-

	$	22,744,948	$	22,744,948	$	-	$	-

Liabilities:
Warrant liability	$	141,668	$	-	$	-	$	141,668
	$	22,886,616	$	22,744,948	$	-	$	141,668

			Fair value measurements at reporting date using
	December 31, 2023		Level 1 inputs		Level 2 inputs		Level 3 inputs

Assets:
Cash equivalents - money market funds	$	4,695,491	$	4,695,491	$	-	$	-
Government treasury bills		14,281,104		14,281,104		-		-
U.S. government agency securities		2,982,684		-		2,982,684		-

	$	21,959,279	$	18,976,595	$	2,982,684	$	-

Liabilities:
Warrant liability	$	17,166	$	-	$	-	$	17,166
	$	21,976,445	$	18,976,595	$	2,982,684	$	17,166

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:

Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

(6) Income Taxes

Contractual Agreements

6 Months Ended

Jun. 30, 2024

Health Care Organizations [Abstract]

Contractual Agreements

(7) Contractual Agreements

(a)

Verity Pharmaceuticals, Inc.

Upon execution of the Verity License Agreement, GSL agreed to pay the Company a license fee of $11.0 million with an initial payment of $2.5 million which was received on signing of the Verity License Agreement, $5.0 million which was received on February 1, 2024, $2.5 million to be paid no later than January 1, 2025, and $1.0 million to be paid no later than January 1, 2026. The Company is also eligible to receive development and sales milestone payments of up to $259.0 million in the aggregate, depending primarily on the achievement of certain sales milestones in a single calendar year with respect to all products licensed by GSL under the Verity License Agreement. GSL is generally responsible for expenses relating to the development (including the conduct of any clinical trials) and commercialization of licensed products in the Field in the United States and Canada, while the Company is generally responsible for expenses relating to development activities outside of the Field and/or the United States and Canada.

(b)

Antares Pharma, Inc.

(c)

Abbott Products, Inc.

(d)

Contract Research and Development

Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

(8) Leases

The Company has a non-cancelable operating lease for office space and laboratory facilities in Salt Lake City, Utah. The term of the lease has been extended through February 28, 2025.

Future minimum lease payments under the non-cancelable operating lease as of June 30, 2024 are:

	Operating
	leases
Year ending December 31:
2024	$	184,038
2025		61,346

Total minimum lease payments	$	245,384

Stockholders’ Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Stockholders’ Equity

(9) Stockholders’ Equity

All common stock share data and per share price data of the Company reflect the reverse stock split effective May 11, 2023.

The Company is authorized to issue up to 200,000,000 shares of its common stock, par value $0.0001.

(a)

Issuance of Common Stock

As of June 30, 2024, the Company had not sold any shares under the A.G.P. Sales Agreement.

(b)

Series B Preferred Stock

(c)

Rights Agreement

(d)

Share-Based Payments

	2024		2023		2024		2023
	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Research and development	$	57,786	$	83,229	$	112,866	$	178,742
General and administrative		44,479		81,636		88,705		163,895

Total	$	102,265	$	164,865	$	201,571	$	342,637

Key assumptions used in the determination of the fair value of stock options granted are as follows:

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 Volatility: The volatility factor is based solely on the Company’s trading history.

	2024			2023
Expected term		5.76 years			5.73 years
Risk-free interest rate		4.32	%		3.73	%
Expected dividend yield		—			—
Expected volatility		97.78	%		98.97	%

(e)

Stock Option Plan

A summary of stock option activity is as follows:

Schedule of Stock Option Activity

	Outstanding stock options
	Number of shares			Weighted average exercise price
Balance at December 31, 2023		262,247		$	34.21
Options granted		34,446			4.77
Options exercised		-			-
Options forfeited		-			-
Options cancelled		(1,176	)		140.25
Balance at June 30, 2024		295,517			30.36

Options exercisable at June 30, 2024		224,887			37.54

The following table summarizes information about stock options outstanding and exercisable at June 30, 2024:

Options outstanding								Options exercisable
Number outstanding		Weighted average remaining contractual life (Years)		Weighted average exercise price		Aggregate intrinsic value		Number exerciseable		Weighted average remaining contractual life (Years)		Weighted average exercise price		Aggregate intrinsic value

	295,517		6.55	$	30.36	$	230,307		224,887		5.79	$	37.54	$	77,671

(f)

Restricted Stock Units

A summary of restricted stock unit activity is as follows:

	Number of unvested restricted stock units

Balance at December 31, 2023		-
Granted		21,762
Vested		-
Cancelled		-
Balance at June 30, 2024		21,762

(g)

Common Stock Warrants

Schedule of Fair Value of Warrants

	June 30, 2024			December 31, 2023
Expected life in years		0.39			0.88
Risk-free interest rate		5.45	%		4.79	%
Dividend yield		—			—
Volatility		110.64	%		100.00	%
Stock price	$	8.24		$	2.79

	Warrant Liability
Balance at December 31, 2023	$	17,166
Change in fair value of common stock warrants		124,502
Balance at June 30, 2024	$	141,668

The following table summarizes the number of common stock warrants outstanding and the weighted average exercise price:

	Warrants		Weighted Average Exercise Price
Outstanding at December 31, 2023		113,795	$	8.72
Issued		-		-
Exercised		-		-
Expired		-		-
Cancelled		-		-
Forfeited		-		-
Balance at June 30, 2024		113,795	$	8.72

There were no common stock warrants exercised during either the three or six months ended June 30, 2024 or 2023.

The following table summarizes information about common stock warrants outstanding at June 30, 2024:

Warrants outstanding
Number exercisable		Weighted average remaining contractual life (Years)		Weighted average exercise price		Aggregate intrinsic value

	113,795		0.50	$	8.72	$	-

Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

(10) Commitments and Contingencies

Litigation

The Company is not currently aware of any matter, individually or in the aggregate, that could have a material adverse effect on our financial condition, liquidity, or results of operations.

Guarantees and Indemnifications

Agreement with Spriaso, LLC

6 Months Ended

Jun. 30, 2024

Agreement with Spriaso, LLC

(11) Agreement with Spriaso, LLC

Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2024

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

(12) Recent Accounting Pronouncements

Accounting Pronouncements Issued Not Yet Adopted

Earnings (Loss) per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings (Loss) Per Share of Common Stock

The following table sets forth the computation of basic and diluted earnings (loss) per share of common stock for the three and six months ended June 30, 2024 and 2023:

	2024			2023			2024			2023
	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Basic earnings (loss) per share attributable to common stock:
Numerator
Net income (loss)	$	(3,068,634	)	$	(3,548,629	)	$	444,987		$	(7,418,948	)

Denominator
Weighted avg. common shares outstanding		5,343,922			5,234,830			5,329,876			5,234,830

Basic earnings (loss) per share attributable to common stock	$	(0.57	)	$	(0.68	)	$	0.08		$	(1.42	)

Diluted earnings (loss) per share attributable to common stock:
Numerator
Net income (loss)	$	(3,068,634	)	$	(3,548,629	)	$	444,987		$	(7,418,948	)
Effect of dilutive securities on net income (loss):
Common stock warrants		(84,430	)		27,455			(124,502	)		125,589
Total net earnings (loss) for purpose of calculating diluted earnings (loss) per common share	$	(2,984,204	)	$	(3,576,084	)	$	569,489		$	(7,544,537	)
Denominator
Weighted avg. common shares outstanding		5,343,922			5,234,830			5,329,876			5,234,830
Weighted average effect of dilutive securities:
Stock options		-			-			122,074			-
Restricted stock units		-			-			7,254			-
Dilutive securities		-			-			7,254			-
Total shares for purpose of calculating diluted net earnings (loss) per common share		5,343,922			5,234,830			5,459,204			5,234,830
Diluted earnings (loss) per share attributable to common stock	$	(0.56	)	$	(0.68	)	$	0.10		$	(1.44	)

Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Stock options		295,517		264,150		173,443		264,150
Unvested restricted stock units		21,762		-		14,508		-
Warrants		49,333		49,433		49,433		49,433

Marketable Investment Securities (Tables)

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Available for Sale Securities

June 30, 2024	Amortized Cost		Gross unrealized holding gains		Gross unrealized holding losses			Aggregate fair value

Government treasury bills	$	6,212,764	$	98	$	-		$	6,212,862
U.S. government agency securities		10,792,379		-		(9,817	)		10,782,562

	$	17,005,143	$	98	$	(9,817	)	$	16,995,424

December 31, 2023	Amortized Cost		Gross unrealized holding gains		Gross unrealized holding losses			Aggregate fair value

Government treasury bills	$	14,272,530	$	8,574	$	-		$	14,281,104
U.S. government agency securities		2,983,999		-		(1,315	)		2,982,684

	$	17,256,529	$	8,574	$	(1,315	)	$	17,263,788

Schedule of Maturities of Debt Securities Classified as Available-for-Sale Securities

Maturities of debt securities classified as available-for-sale securities as of June 30, 2024 are as follows:

June 30, 2024

Amortized Cost

Aggregate

fair value

Due within one year

17,005,143

16,995,424

17,005,143

16,995,424

Fair Value (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

			Fair value measurements at reporting date using
	June 30, 2024		Level 1 inputs		Level 2 inputs		Level 3 inputs

Assets:
Cash equivalents - money market funds	$	4,459,338	$	4,459,338	$	-	$	-
Cash equivalents - treasury bills		1,290,186		1,290,186		-		-
Government treasury bills		6,212,862		6,212,862		-		-
US. Government agency securities		10,782,562		10,782,562		-		-

	$	22,744,948	$	22,744,948	$	-	$	-

Liabilities:
Warrant liability	$	141,668	$	-	$	-	$	141,668
	$	22,886,616	$	22,744,948	$	-	$	141,668

			Fair value measurements at reporting date using
	December 31, 2023		Level 1 inputs		Level 2 inputs		Level 3 inputs

Assets:
Cash equivalents - money market funds	$	4,695,491	$	4,695,491	$	-	$	-
Government treasury bills		14,281,104		14,281,104		-		-
U.S. government agency securities		2,982,684		-		2,982,684		-

	$	21,959,279	$	18,976,595	$	2,982,684	$	-

Liabilities:
Warrant liability	$	17,166	$	-	$	-	$	17,166
	$	21,976,445	$	18,976,595	$	2,982,684	$	17,166

Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

Future minimum lease payments under the non-cancelable operating lease as of June 30, 2024 are:

	Operating
	leases
Year ending December 31:
2024	$	184,038
2025		61,346

Total minimum lease payments	$	245,384

Stockholders’ Equity (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

	2024		2023		2024		2023
	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Research and development	$	57,786	$	83,229	$	112,866	$	178,742
General and administrative		44,479		81,636		88,705		163,895

Total	$	102,265	$	164,865	$	201,571	$	342,637

Schedule of Key Assumption of Fair Value of Stock Options Granted

	2024			2023
Expected term		5.76 years			5.73 years
Risk-free interest rate		4.32	%		3.73	%
Expected dividend yield		—			—
Expected volatility		97.78	%		98.97	%

Schedule of Stock Option Activity

A summary of stock option activity is as follows:

Schedule of Stock Option Activity

	Outstanding stock options
	Number of shares			Weighted average exercise price
Balance at December 31, 2023		262,247		$	34.21
Options granted		34,446			4.77
Options exercised		-			-
Options forfeited		-			-
Options cancelled		(1,176	)		140.25
Balance at June 30, 2024		295,517			30.36

Options exercisable at June 30, 2024		224,887			37.54

Schedule of Share-based Compensation of Stock Options Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at June 30, 2024:

Options outstanding								Options exercisable
Number outstanding		Weighted average remaining contractual life (Years)		Weighted average exercise price		Aggregate intrinsic value		Number exerciseable		Weighted average remaining contractual life (Years)		Weighted average exercise price		Aggregate intrinsic value

	295,517		6.55	$	30.36	$	230,307		224,887		5.79	$	37.54	$	77,671

Summary of Restricted Stock Unit Activity

A summary of restricted stock unit activity is as follows:

	Number of unvested restricted stock units

Balance at December 31, 2023		-
Granted		21,762
Vested		-
Cancelled		-
Balance at June 30, 2024		21,762

Schedule of Fair Value of Warrants

	June 30, 2024			December 31, 2023
Expected life in years		0.39			0.88
Risk-free interest rate		5.45	%		4.79	%
Dividend yield		—			—
Volatility		110.64	%		100.00	%
Stock price	$	8.24		$	2.79

Schedule of Reconciliation of Warrant Liability

	Warrant Liability
Balance at December 31, 2023	$	17,166
Change in fair value of common stock warrants		124,502
Balance at June 30, 2024	$	141,668

Schedule of Number of Warrants Outstanding and the Weighted Average Exercise Price

The following table summarizes the number of common stock warrants outstanding and the weighted average exercise price:

	Warrants		Weighted Average Exercise Price
Outstanding at December 31, 2023		113,795	$	8.72
Issued		-		-
Exercised		-		-
Expired		-		-
Cancelled		-		-
Forfeited		-		-
Balance at June 30, 2024		113,795	$	8.72

Schedule of Common Stock Warrants Outstanding

The following table summarizes information about common stock warrants outstanding at June 30, 2024:

Warrants outstanding
Number exercisable		Weighted average remaining contractual life (Years)		Weighted average exercise price		Aggregate intrinsic value

	113,795		0.50	$	8.72	$	-

Basis of Presentation (Details Narrative) - USD ($) $ in Millions	Jan. 01, 2026	Jan. 01, 2025	Feb. 01, 2024	Jan. 12, 2024	May 10, 2023
Reverse stock split					reverse stock split ratio of 1-for-17
License Agreement [Member] \| Forecast [Member]
Initial payment		$ 5.0
License Agreement [Member] \| Gordon Silver Limited [Member]
License fee			$ 5.0	$ 11.0
Initial payment				2.5
Milestone payment				$ 259.0
License Agreement [Member] \| Gordon Silver Limited [Member] \| Minimum [Member]
Royalty payments percentage				12.00%
License Agreement [Member] \| Gordon Silver Limited [Member] \| Maximum [Member]
Royalty payments percentage				18.00%
License Agreement [Member] \| Gordon Silver Limited [Member] \| Forecast [Member]
License fee	$ 1.0	$ 2.5

Revenue (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Revenue (Details Narrative) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Royalty recognised			$ 140,000
Licensing revenue			7,500,000
Revenues	$ 89,565		$ 7,706,738	$ 54,990
Spriaso [Member]
Disaggregation of Revenue [Line Items]
Revenues		$ 0
Spriaso [Member] \| License [Member]
Disaggregation of Revenue [Line Items]
Revenues				$ 55,000
Verity License Agreement [Member]
Disaggregation of Revenue [Line Items]
Royalty recognised	$ 90,000
Major Customer [Member] \| Revenue Benchmark [Member] \| Customer Concentration Risk [Member]
Disaggregation of Revenue [Line Items]
Concentration risk, percentage			10.00%
One Major Customer [Member] \| Revenue Benchmark [Member] \| Customer Concentration Risk [Member]
Disaggregation of Revenue [Line Items]
Concentration risk, percentage			99.00%	100.00%

Schedule of Computation of Basic and Diluted Earnings (Loss) Per Share of Common Stock (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Net income (loss)	$ (3,068,634)	$ (3,548,629)	$ 444,987	$ (7,418,948)
Weighted avg. common shares outstanding	5,343,922	5,234,830	5,329,876	5,234,830
Basic earnings (loss) per share attributable to common stock	$ (0.57)	$ (0.68)	$ 0.08	$ (1.42)
Effect of dilutive securities on net income (loss):
Common stock warrants	$ (84,430)	$ 27,455	$ (124,502)	$ 125,589
Total net earnings (loss) for purpose of calculating diluted earnings (loss) per common share	$ (2,984,204)	$ (3,576,084)	$ 569,489	$ (7,544,537)
Weighted average effect of dilutive securities:
Total shares for purpose of calculating diluted net earnings (loss) per common share	5,343,922	5,234,830	5,459,204	5,234,830
Diluted earnings (loss) per share attributable to common stock	$ (0.56)	$ (0.68)	$ 0.10	$ (1.44)
Stock Options [Member]
Weighted average effect of dilutive securities:
Dilutive securities			122,074
Restricted Stock Units (RSUs) [Member]
Weighted average effect of dilutive securities:
Dilutive securities			7,254

Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Warrant [Member]
Option Indexed to Issuer's Equity [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	49,333	49,433	49,433	49,433
Restricted Stock Units (RSUs) [Member]
Option Indexed to Issuer's Equity [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	21,762		14,508
Share-Based Payment Arrangement, Option [Member]
Option Indexed to Issuer's Equity [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	295,517	264,150	173,443	264,150

Schedule of Available for Sale Securities (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Marketable Securities [Line Items]
Amortized Cost	$ 17,005,143	$ 17,256,529
Gross unrealized holding gains	98	8,574
Gross unrealized holding losses	(9,817)	(1,315)
Aggregate fair value	16,995,424	17,263,788
US Treasury Securities [Member]
Marketable Securities [Line Items]
Amortized Cost	6,212,764	14,272,530
Gross unrealized holding gains	98	8,574
Gross unrealized holding losses
Aggregate fair value	6,212,862	14,281,104
U.S. Government Agency Securities [Member]
Marketable Securities [Line Items]
Amortized Cost	10,792,379	2,983,999
Gross unrealized holding gains
Gross unrealized holding losses	(9,817)	(1,315)
Aggregate fair value	$ 10,782,562	$ 2,982,684

Schedule of Maturities of Debt Securities Classified as Available-for-Sale Securities (Details)	Jun. 30, 2024 USD ($)
Investments, Debt and Equity Securities [Abstract]
Due within one year, Amortized Cost	$ 17,005,143
Due within one year, Aggregate fair value	16,995,424
Total maturities of debt securities classified as available-for-sale securities, Amortized Cost	17,005,143
Total maturities of debt securities classified as available-for-sale securities, Aggregate fair value	$ 16,995,424

Marketable Investment Securities (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Sales of marketable investment securities	$ 0	$ 0	$ 0	$ 0
Realized gains or losses	0	0	0	0
Matured marketable investment securities	11,500,000	5,900,000	18,200,000	17,900,000
Other-than-temporary impairments	$ 0	$ 0	$ 0	$ 0

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 22,744,948	$ 21,959,279
Fair value of assets and liabilities	22,886,616	21,976,445
US Government Corporations and Agencies Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	10,782,562	2,982,684
Warrant [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	141,668	17,166
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	22,744,948	18,976,595
Fair value of assets and liabilities	22,744,948	18,976,595
Fair Value, Inputs, Level 1 [Member] \| US Government Corporations and Agencies Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	10,782,562
Fair Value, Inputs, Level 1 [Member] \| Warrant [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		2,982,684
Fair value of assets and liabilities		2,982,684
Fair Value, Inputs, Level 2 [Member] \| US Government Corporations and Agencies Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		2,982,684
Fair Value, Inputs, Level 2 [Member] \| Warrant [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
Fair value of assets and liabilities	141,668	17,166
Fair Value, Inputs, Level 3 [Member] \| US Government Corporations and Agencies Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
Fair Value, Inputs, Level 3 [Member] \| Warrant [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	141,668	17,166
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	4,459,338	4,695,491
Money Market Funds [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	4,459,338	4,695,491
Money Market Funds [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
Money Market Funds [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
Treasury Bills [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	1,290,186
Treasury Bills [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	1,290,186
Treasury Bills [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
Treasury Bills [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	6,212,862	14,281,104
US Treasury Securities [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	6,212,862	14,281,104
US Treasury Securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
US Treasury Securities [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets

Fair Value (Details Narrative) - Warrant [Member] - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Volatility, rate	110.64%	100.00%
Risk-free interest rate	5.45%	4.79%
Strike price	$ 8.50	$ 8.50
Fair value of common stock	$ 8.24	$ 2.79
Expected life	4 months 24 days	10 months 24 days

Contractual Agreements (Details Narrative) - USD ($)							3 Months Ended		6 Months Ended
Contractual Agreements (Details Narrative) - USD ($)	Jan. 01, 2026	Jan. 01, 2025	Feb. 01, 2024	Jan. 12, 2024	Oct. 14, 2021	Mar. 29, 2012	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Royalty recognised									$ 140,000
Licensing revenue									7,500,000
Contract research and development expenses							$ 1,100,000	$ 1,700,000	2,900,000	$ 3,800,000
Verity License Agreement [Member]
Royalty recognised							90,000
Verity License Agreement [Member] \| Gordon Silver Limited [Member]
License fee			$ 5,000,000.0	$ 11,000,000.0
Payments to be made for license fees				2,500,000
Milestone payment				259,000,000.0
Verity License Agreement [Member] \| Gordon Silver Limited [Member] \| Forecast [Member]
License fee	$ 1,000,000.0	$ 2,500,000
Antares License Agreement [Member]
License fee					$ 11,000,000.0
Royalty payments rates					20.00%
Revenue									67,000	0
Antares License Agreement [Member] \| Maximum [Member]
Milestone revenue to be received					$ 160,000,000.0
Antares License Agreement [Member] \| Forecast [Member]
Payments to be made for license fees	5,000,000.0
License Agreement [Member] \| Forecast [Member]
Payments to be made for license fees		5,000,000.0
License Agreement [Member] \| Gordon Silver Limited [Member]
License fee			$ 5,000,000.0	11,000,000.0
Payments to be made for license fees				2,500,000
Milestone payment				$ 259,000,000
License Agreement [Member] \| Gordon Silver Limited [Member] \| Maximum [Member]
Royalty payments rates				18.00%
License Agreement [Member] \| Gordon Silver Limited [Member] \| Forecast [Member]
License fee	$ 1,000,000.0	$ 2,500,000
Royalty Agreement Terms [Member] \| Abbott Products, Inc. [Member]
Percentage of net sales						1.00%
Royalties, commitment amount						$ 1,000,000.0
Percentage of royalties reduction based upon product launch						50.00%
Royalty expense							$ 7,000	$ 9,000	$ 16,000	$ 13,000

Schedule of Future Minimum Rental Payments for Operating Leases (Details)	Jun. 30, 2024 USD ($)
Leases [Abstract]
2024	$ 184,038
2025	61,346
Total minimum lease payments	$ 245,384

Leases (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Leases (Details Narrative) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Rent expense	$ 92,000	$ 89,000	$ 182,000	$ 176,000

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Total	$ 102,265	$ 164,865	$ 201,571	$ 342,637
Research and Development Expense [Member]
Total	57,786	83,229	112,866	178,742
General and Administrative Expense [Member]
Total	$ 44,479	$ 81,636	$ 88,705	$ 163,895

Schedule of Key Assumption of Fair Value of Stock Options Granted (Details) - Options [Member]	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Expected term	5 years 9 months 3 days	5 years 8 months 23 days
Risk-free interest rate	4.32%	3.73%
Expected dividend yield
Expected volatility	97.78%	98.97%

Schedule of Stock Option Activity (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Option Indexed to Issuer's Equity [Line Items]
Number of shares, ending balance	295,517		295,517
Weighted average exercise price, ending balance	$ 30.36		$ 30.36
Number of shares, options exercisable	224,887		224,887
Weighted average exercise price, options exercisable	$ 37.54		$ 37.54
Share-Based Payment Arrangement, Option [Member]
Option Indexed to Issuer's Equity [Line Items]
Number of shares, beginning balance			262,247
Weighted average exercise price, beginning balance			$ 34.21
Number of shares, Options granted	8,820	8,820	34,446	10,086
Weighted average exercise price, Options granted			$ 4.77
Number of shares, Options exercised
Weighted average exercise price, Options exercised
Number of shares, Options forfeited
Weighted average exercise price, Options forfeited
Number of shares, Options cancelled			(1,176)
Weighted average exercise price, Options cancelled			$ 140.25
Number of shares, ending balance	295,517		295,517
Weighted average exercise price, ending balance	$ 30.36		$ 30.36
Number of shares, options exercisable	224,887		224,887
Weighted average exercise price, options exercisable	$ 37.54		$ 37.54

Schedule of Share-based Compensation of Stock Options Outstanding and Exercisable (Details)	6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares
Equity [Abstract]
Number of options outstanding \| shares	295,517
Options outstanding, Weighted average remaining contractual life (Years)	6 years 6 months 18 days
Options outstanding, Weighted average exercise price \| $ / shares	$ 30.36
Options outstanding, Aggregate intrinsic value \| $	$ 230,307
Number of options exercisable \| shares	224,887
Options exercisable, Weighted average remaining contractual life (Years)	5 years 9 months 14 days
Options exercisable, Weighted average exercise price \| $ / shares	$ 37.54
Options exercisable, Aggregate intrinsic value \| $	$ 77,671

Summary of Restricted Stock Unit Activity (Details)	6 Months Ended
Summary of Restricted Stock Unit Activity (Details)	Jun. 30, 2024 shares
Equity [Abstract]
Balance at December 31, 2023
Granted	21,762
Vested
Cancelled
Balance at June 30, 2024	21,762

Schedule of Fair Value of Warrants (Details) - Warrant [Member] - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected life in years	4 months 24 days	10 months 24 days
Risk-free interest rate	5.45%	4.79%
Volatility	110.64%	100.00%
Stock price	$ 8.24	$ 2.79
November 2019 Offering [Member] \| Fair Value, Inputs, Level 3 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected life in years	4 months 20 days	10 months 17 days
Risk-free interest rate	5.45%	4.79%
Dividend yield
Volatility	110.64%	100.00%
Stock price	$ 8.24	$ 2.79

Schedule of Reconciliation of Warrant Liability (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Equity [Abstract]
Balance at December 31, 2023	$ 17,166
Change in fair value of common stock warrants	124,502	$ (125,589)
Balance at June 30, 2024	$ 141,668

Schedule of Number of Warrants Outstanding and the Weighted Average Exercise Price (Details) - Warrant [Member]	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrants Outstanding, Beginning \| shares	113,795
Weighted Average Exercise Price, Outstanding, Beginning \| $ / shares	$ 8.72
Warrants, Issued \| shares
Weighted Average Exercise Price, Issued \| $ / shares
Warrants, Exercised \| shares
Weighted Average Exercise Price, Exercised \| $ / shares
Warrants, Expired \| shares
Weighted Average Exercise Price, Expired \| $ / shares
Warrants, Cancelled \| shares
Weighted Average Exercise Price, Cancelled \| $ / shares
Warrants, Forfeited \| shares
Weighted Average Exercise Price, Forfeited \| $ / shares
Warrants Outstanding, Ending \| shares	113,795
Weighted Average Exercise Price, Outstanding, Ending \| $ / shares	$ 8.72

Schedule of Common Stock Warrants Outstanding (Details) - Warrant [Member] - USD ($)	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of warrants exercisable, shares	113,795	113,795
Warrants outstanding, Weighted average remaining contractual life	6 months
Warrants outstanding, Weighted average exercise price	$ 8.72	$ 8.72
Warrants outstanding, Aggregate intrinsic value

Stockholders’ Equity (Details Narrative) - USD ($)				3 Months Ended		6 Months Ended
Stockholders’ Equity (Details Narrative) - USD ($)	Apr. 26, 2024	May 10, 2023	Mar. 24, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Mar. 07, 2023	Jun. 30, 2020	Jun. 30, 2018	Jun. 30, 2016	Nov. 13, 2015	Apr. 30, 2014
Class of Stock [Line Items]
Reverse stock split, description		reverse stock split ratio of 1-for-17
Common stock, shares authorized				200,000,000	200,000,000	200,000,000	200,000,000	200,000,000
Common stock, par value				$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Fair value of shares issued during the period				$ 217,440		$ 209,340	$ (11,216)
Net proceeds from common stock offering						$ 209,340	(11,216)
Preferred stock redemption price				$ 0.001		$ 0.001							$ 63.96
Stock-based compensation expense				$ 102,265	$ 164,865	$ 201,571	342,637
Unrecognized compensation cost				$ 384,000		$ 384,000
Share based payment arrangement, nonvested award, cost not yet recognized, period for recognition						9 months 18 days
Warrants outstanding				21,762		21,762
Non-cash loss on change in fair value of warrant liability						$ 124,502	(125,589)
November 2019 Offering [Member]
Class of Stock [Line Items]
Warrants outstanding				64,362		64,362
Non-cash loss on change in fair value of warrant liability				$ 84,000	$ 27,000	$ 125,000	$ 126,000
February 2020 Offering [Member]
Class of Stock [Line Items]
Warrants outstanding				49,433	49,433	49,433	49,433
Issued						296,593
Exercised				0	0	0	0
Restricted Stock [Member]
Class of Stock [Line Items]
Unrecognized compensation cost of restricted stock units						$ 76,000
Restricted stock units				$ 0	$ 0	$ 21,762	$ 0
Weighted average grant date fair value of restricted stock units						$ 3.61
Stock Incentive Plan 2014 [Member]
Class of Stock [Line Items]
Aggregate number of shares authorized for issuance				600,000		600,000								58,823
Shares remaining available for grant				257,046		257,046
Options granted contractual life						10 years
Stock Incentive Plan 2014 [Member] \| Minimum [Member]
Class of Stock [Line Items]
Aggregate number of shares authorized for issuance				336,582		336,582				189,522	145,405	74,817
Stock Incentive Plan 2014 [Member] \| Maximum [Member]
Class of Stock [Line Items]
Aggregate number of shares authorized for issuance				600,000		600,000				336,582	189,522	145,405
2011 Equity Incentive Plan [Member]
Class of Stock [Line Items]
Shares remaining available for grant														15,994
Share-Based Payment Arrangement, Option [Member]
Class of Stock [Line Items]
Number of shares, Options granted (in shares)				8,820	8,820	34,446	10,086
Option exercises, shares
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, stated par value									$ 0.0001
Preferred stock, shares issued			88,511
Preferred stock voting rights, description			Each whole share of Series B Preferred Stock entitled the holder thereof to 1,000,000 votes per share, and each fraction of a share of Series B Preferred Stock had a ratable number of votes. Thus, each one-thousandth of a share of Series B Preferred Stock was entitled to 1,000 votes.
Preferred stock redemption terms						Each “beneficial owner” (as such terms are defined in the Certificate of Designation with respect to the Series B Preferred Stock) of shares of Series B Preferred Stock redeemed in the redemptions described above has the right to receive an amount equal to $0.01 in cash for each ten whole shares of Series B Preferred Stock that were “beneficially owned” by the beneficial owner as of immediately prior to the applicable redemption time and redeemed pursuant to such redemption, payable upon receipt by the Company of a written request submitted by the applicable beneficial owner to the corporate secretary of the Company following the applicable redemption time.
Sales Agreement [Member]
Class of Stock [Line Items]
Percentage of gross proceeds on sale of shares	3.00%
Shares issued, price per share				$ 33.62		$ 33.62
Number of shares issued				32,110
Sales Agreement [Member] \| A.G.P [Member]
Class of Stock [Line Items]
Fair value of shares issued during the period	$ 10,616,169
Cantor Sales Agreement [Member]
Class of Stock [Line Items]
Stock issued during period, shares, new issues						996,821
Proceeds from issuance of common stock, gross						$ 33,500,000
Net proceeds from common stock offering						$ 32,400,000
Number of shares issued						32,110

Commitments and Contingencies (Details Narrative) $ in Thousands	Nov. 14, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Payments for legal settlements	$ 1,250

Agreement with Spriaso, LLC (Details Narrative) - Spriaso LLC [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
License and Service Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Percentage of royalty			20.00%
Proceeds from contributions from affiliates			$ 10,000,000.0
Agreement description			The Company also agreed to continue providing up to 10 percent of the services of certain employees to Spriaso for a period of time. The agreement to provide services expired in 2021
Service Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Licensing revenue	$ 0	$ 55,000	$ 0	$ 55,000

Lipocine (NASDAQ:LPCN)
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