Lipocine Inc. Segments Disclosure
| (13) | Segment Reporting |
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the chief operating decision maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company operates as a single reporting segment, focused on leveraging its proprietary drug delivery technology platform to augment therapeutics through effective oral delivery of products and product candidates. The Company’s measure of segment profit or loss is net income (loss). The CODM is the chief executive officer (“CEO”). The CODM manages and allocates resources to the operations of the Company on a total company basis. Managing and allocating resources on a consolidated basis enables the CEO to assess the overall level of resources available and how to best deploy these resources across functions, therapeutic target areas and research and development projects that are in line with the Company’s long-term company-wide strategic goals. Consistent with this decision-making process, the CEO uses consolidated financial information for purposes of evaluating performance, forecasting future period financial results, allocating resources and setting incentive targets. Operating expenses are used to monitor budget versus actual results. The monitoring of budgeted versus actual results are used in assessing performance of the segment. All the Company’s long-lived assets are held in the United States and all the Company’s revenues are primarily related to TLANDO.
The following table is representative of the significant expense categories regularly provided to the CODM when managing the Company’s single reporting segment. A reconciliation to the consolidated net income (loss) for the years ended December 31, 2025 and 2024 is included at the bottom of the table below.
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Total revenues | $ | 1,976,677 | $ | 11,198,144 | ||||
| Program expenses (1) | ||||||||
| Lead clinical candidate | 4,028,634 | 3,628,033 | ||||||
| Other research and development programs | 779,266 | 1,104,717 | ||||||
| Non-program expenses (2) | 3,266,033 | 3,675,349 | ||||||
| Personnel costs | 4,031,626 | 3,536,529 | ||||||
| Stock-based compensation | 242,497 | 408,551 | ||||||
| Total segment operating income (loss) | (10,371,379 | ) | (1,155,035 | ) | ||||
| Other income (loss) (3) | 743,874 | 1,163,387 | ||||||
| Net income (loss) | $ | (9,627,505 | ) | $ | 8,352 | |||
| (1) | Includes external research and development expenses. |
| (2) | Includes general and administrative expenses, information technology, infrastructure, facilities, and intellectual property, and legal and professional fees. |
| (3) | Includes interest income, tax and gain on warrant liability. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.