Lipocine Inc. - POS AM filing on 2014-03-31

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax expense consists of:

	Current		Deferred		Total
Year ended December 31, 2013:
U.S. federal	$	(55,148)	$	-	$	(55,148)
State and local		100		-		100
	$	(55,048)	$	-	$	(55,048)
Year ended December 31, 2012:
U.S. federal	$	584	$	-	$	584
State and local		100		-		100
	$	684	$	-	$	684

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Income tax benefit was $55,000 for the year ended December 31, 2013 and income tax expense was $1,000 for the year ended December 31, 2012, and differed from the amounts computed by applying the U.S. federal income tax rate of 34% to pretax income from continuing operations as a result of the following:

	December 31,
	2013		2012
Computed “expected” tax expense (benefit)	$	(3,619,353)	$	1,321,780
Increase (reduction) in income taxes resulting from:
Change in valuation allowance		(493,355)		(1,365,408)
Loss of tax attributes due to change in ownership		3,540,653		-
Transaction fees		394,803		-
Settlement for termination of stock rights		310,572		-
State and local income taxes, net of federal income
tax benefit		66		66
Stock expense		85,270		32,336
Research and development tax credits		(227,189)		-
Other, net		(46,515)		11,910
	$	(55,048)	$	684

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 are presented below.

	December 31,
	2013		2012
Deferred tax assets:
Stock-based compensation	$	1,152,904	$	859,095
Net operating loss carryforwards		10,041,416		9,216,044
Employee benefits		59,505		38,927
Alternative-minimum tax credit carryforwards		-		17,635
Research and development tax credits		410,490		1,210,405
Other deductible tempory differences		-		280,872
Total gross deferred tax assets		11,664,315		11,622,978
Less valuation allowance		(11,660,247)		(11,619,578)
Net deferred tax assets		4,068		3,400
Deferred tax liabilities:
Plant and equipment		(4,068)		(3,400)
Total gross deferred tax liabilities		(4,068)		(3,400)
Net deferred tax liabilities	$	-	$	-

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

A reconciliation of the beginning and ending amount of total unrecognized tax contingencies, excluding interest and penalties, for the years ended December 31, 2013 and 2012 are as follows:

	December 31
	2013		2012
Balance, beginning of year	$	28,304	$	28,304
Balance, end of year	$	-	$	28,304