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 the quarterly period ended March 31, 2026

☐	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)	(I.R.S. 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 for 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.

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 May 6, 2026 the registrant had 8,244,253 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	21

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38

	Item 4.	Controls and Procedures	38

PART II—OTHER INFORMATION

	Item 1.	Legal Proceedings	39

	Item 1A.	Risk Factors	39

	Item 6.	Exhibits	40

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

LIPOCINE INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

	March 31,			December 31,
	2026			2025
Assets
Current assets:
Cash and cash equivalents	$	5,015,608		$	5,205,842
Marketable investment securities		19,713,463			9,724,545
Accrued interest income		111,411			14,189
License fee and royalties receivable		119,397			1,145,390
Prepaid and other current assets		285,055			787,600

Total current assets		25,244,934			16,877,566

Property and equipment, net of accumulated depreciation of $1,298,893 and $1,284,079 respectively		89,479			104,293
Other assets		23,753			23,753

Total assets	$	25,358,166		$	17,005,612

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	1,562,728		$	971,822
Accrued expenses		645,115			1,236,374
Deferred revenue		320,000			320,000

Total current liabilities		2,527,843			2,528,196

Total liabilities		2,527,843			2,528,196

Commitments and contingencies (notes 8 and 10)		-

Stockholders’ equity:
Common stock, par value $0.0001 per share, 75,000,000 shares authorized; 7,475,451 and 6,158,779 issued and 7,475,115 and 6,158,443 outstanding, respectively		9,076			8,944
Additional paid-in capital		235,937,414			223,901,106
Treasury stock at cost, 336 shares		(40,712	)		(40,712	)
Accumulated other comprehensive income		(7,194	)		4,445
Accumulated deficit		(213,068,261	)		(209,396,367	)

Total stockholders’ equity		22,830,323			14,477,416

Total liabilities and stockholders’ equity	$	25,358,166		$	17,005,612

See accompanying notes to consolidated financial statements

LIPOCINE INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

	2026			2025
	Three Months Ended March 31,
	2026			2025

Revenues:
Royalty revenue		119,397			93,864
Total revenues		119,397			93,864

Operating expenses:
Research and development		2,764,394			1,061,571
General and administrative		1,204,467			1,122,477
Total operating expenses		3,968,861			2,184,048

Operating loss		(3,849,464	)		(2,090,184	)

Other income:
Interest and investment income		177,570			225,511
Total other income		177,570			225,511

Loss before income tax expense		(3,671,894	)		(1,864,673	)

Income tax expense		-			(200	)
Net loss attributable to common shareholders	$	(3,671,894	)	$	(1,864,873	)

Basic loss per share attributable to common stock	$	(0.54	)	$	(0.35	)
Weighted average common shares outstanding, basic		6,795,002			5,348,557
Diluted loss per share attributable to common stock	$	(0.54	)	$	(0.35	)
Weighted average common shares outstanding, diluted		6,795,002			5,348,557

Comprehensive loss:
Net loss	$	(3,671,894	)	$	(1,864,873	)
Net unrealized loss on marketable investment securities		(11,639	)		(3,617	)
Comprehensive loss	$	(3,683,533	)	$	(1,868,490	)

See accompanying notes to consolidated financial statements

LIPOCINE INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the Three Months Ended March 31, 2026 and 2025

(Unaudited)

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

Balances at December 31, 2024		5,347,940	$	8,863		336	$	(40,712	)	$	220,789,138	$	9,138		$	(199,768,862	)	$	20,997,565

Net loss		-		-		-		-			-		-			(1,864,873	)		(1,864,873	)

Unrealized net loss on marketable investment securities		-		-		-		-			-		(3,617	)		-			(3,617	)
Unrealized net loss on marketable investment securities		-		-		-		-			-		(3,617	)		-			(3,617	)

Stock-based compensation		-		-		-		-			71,002		-			-			71,002

Vesting of restricted stock units		2,416		-		-		-			-		-			-			-

Balances at March 31, 2025		5,350,356	$	8,863		336	$	(40,712	)	$	220,860,140	$	5,521		$	(201,633,735	)	$	19,200,077

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

Balances at December 31, 2025		6,158,443	$	8,944		336	$	(40,712	)	$	223,901,106	$	4,445		$	(209,396,367	)	$	14,477,416
Balances		6,158,443	$	8,944		336	$	(40,712	)	$	223,901,106	$	4,445		$	(209,396,367	)	$	14,477,416

Net loss		-		-		-		-			-		-			(3,671,894	)		(3,671,894	)

Unrealized net loss on marketable investment
securities		-		-		-		-			-		(11,639	)		-			(11,639	)
Unrealized net loss on marketable investment securities		-		-		-		-			-		(11,639	)		-			(11,639	)

Stock-based compensation		-		-		-		-			65,398		-			-			65,398

Option exercises		1,325		-		-		-			6,986		-

SEC Form 10-Q filed by Lipocine Inc.