UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
SCHEDULE
14A
(RULE
14a-101)
SCHEDULE
14A INFORMATION
Proxy
Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934
Filed
by the Registrant ☒
Filed
by a Party other than the Registrant ☐
Check
the appropriate box:
☐ |
Preliminary
Proxy Statement |
☐
|
Confidential,
for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
☒ |
Definitive
Proxy Statement |
☐
|
Definitive
Additional Materials |
☐
|
Soliciting
Material Under § 240.14a-12 |
LIPOCINE
INC.
(Name
of Registrant as Specified In Its Charter)
(Name
of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment
of Filing Fee (Check the appropriate box):
☒ |
No
fee required. |
☐ |
Fee
paid previously with preliminary materials. |
☐ |
Fee
computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11. |
April
26, 2022
Dear
Stockholder:
You
are cordially invited to attend Lipocine Inc.’s 2022 Annual Meeting of Stockholders (the “Annual Meeting”) to be held
on June 8, 2022. The meeting will be held at Lipocine’s offices located at 675 Arapeen Drive, Suite 202, Salt Lake City, Utah 84108
at 10:00 a.m. Mountain Daylight Time. The formal meeting notice and Proxy Statement for the Annual Meeting are attached.
We
are carefully monitoring the public health impact of the coronavirus (COVID-19) on a daily basis, and may decide to forego the physical,
in person Annual Meeting in favor of a virtual-only Annual Meeting or some other alternative depending on the situation. While we understand
this could disrupt the travel plans of those who plan to attend, our first priority is the health and safety of our communities, stockholders,
employees and other stakeholders. In the event we decide to hold a virtual-only Annual Meeting or some other alternative, stockholders
will be notified and provided with additional details in a press release and pursuant to filings we make with the U.S. Securities and
Exchange Commission. At any virtual-only Annual Meeting, we will ensure that all stockholders or their proxy holder have the ability
to participate, ask questions and vote their shares. As always, we encourage you to vote your shares prior to the Annual Meeting.
Whether
or not you plan to attend the Annual Meeting, it is important that your shares be represented and voted at the meeting. One of the proposals
on which stockholders will be voting requires the approval of the holders of a majority of our outstanding shares. Therefore, we urge
you to vote as promptly as possible. Returning your completed proxy card or voting via the instructions provided on your proxy card will
ensure your representation at the Annual Meeting. If you later decide to attend the Annual Meeting and wish to change your vote, you
may do so simply by voting in person at the meeting.
We
look forward to seeing you at the Annual Meeting.
Sincerely,
Mahesh
V. Patel, Ph.D.
President,
Chief Executive Officer and
Chairman
of the Board of Directors
LIPOCINE
INC.
675
Arapeen Drive, Suite 202
Salt
Lake City, Utah
(801)
994-7383
NOTICE
OF ANNUAL MEETING OF STOCKHOLDERS
TO
BE HELD JUNE 8, 2022
TO
THE STOCKHOLDERS OF LIPOCINE INC.:
On
behalf of the Board of Directors of Lipocine Inc., a Delaware corporation (“Lipocine” or the “Company”), Lipocine
is pleased to deliver the accompanying Proxy Statement in connection with the annual meeting of stockholders of Lipocine (“Annual
Meeting”) which will be held on June 8, 2022, at 10:00 a.m. Mountain Daylight Time, at the offices of Lipocine, located at 675
Arapeen Drive, Suite 202, Salt Lake City, Utah 84108.
We
are carefully monitoring the public health impact of the coronavirus (COVID-19) on a daily basis, and may decide to forego the physical,
in person Annual Meeting in favor of a virtual-only Annual Meeting or some other alternative depending on the situation. While we understand
this could disrupt the travel plans of those who plan to attend, our first priority is the health and safety of our communities, stockholders,
employees and other stakeholders. In the event we decide to hold a virtual-only Annual Meeting or some other alternative, stockholders
will be notified and provided with additional details in a press release and pursuant to filings we make with the U.S. Securities and
Exchange Commission (“SEC”). At any virtual-only Annual Meeting, we will ensure that all stockholders or their proxy holder
have the ability to participate, ask questions and vote their shares. As always, we encourage you to vote your shares prior to the Annual
Meeting.
The
Annual Meeting will be held for the following purposes, as more fully described in the Proxy Statement accompanying this notice:
|
1. |
To
elect six (6) directors to our Board of Directors, to serve until the next annual meeting and until their successors are duly elected
and qualified; |
|
|
|
|
2.
3.
4.
5. |
To
ratify the appointment of Tanner LLC as the independent registered public accounting firm of Lipocine for the year ending December
31, 2022;
To
adopt, on an advisory basis, a non-binding resolution approving the compensation of the Company’s named executive officers,
as described in the Proxy Statement under “Executive Compensation”;
To
approve an amendment to the Amended and Restated Certificate of Incorporation of the Company
to increase the number of authorized shares of common stock from 100,000,000 to 200,000,000 shares;
To
approve the adjournment of the Annual Meeting, if necessary, to continue to solicit votes in favor of the foregoing proposals; and |
|
|
|
|
6. |
To
conduct any other business properly brought before the Annual Meeting and any adjournment or postponement thereof. |
The
proposals are described in more detail in this Proxy Statement, which Lipocine encourages you to read carefully and in its entirety before
voting. The Proxy Statement, this Notice of Annual Meeting of Stockholders (the “Notice”), and the accompanying form of proxy,
along with our annual report on Form 10-K for the year ended December 31, 2021, are first being mailed to stockholders of the Company
on or about April 26, 2022.
The
close of business on April 21, 2022 has been fixed as the record date for determining those holders of Lipocine common stock entitled
to receive notice of and to vote at the Annual Meeting and any adjournments or postponements thereof. Our stock transfer books will remain
open between the record date and the date of the meeting. A list of stockholders entitled to vote at the Annual Meeting will be available
for inspection at our principal executive offices and at the Annual Meeting.
All
stockholders are cordially invited to attend the Annual Meeting in person. However, to assure your representation at the Annual Meeting,
you are urged to vote as promptly as possible in accordance with the instructions provided on your proxy card, or sign, date and promptly
return the proxy card. To ensure that all your shares are voted, please vote once for each proxy card you receive.
You
may revoke your proxy at any time prior to the Annual Meeting. If you attend the Annual Meeting and vote by ballot, your proxy will be
revoked automatically and only your vote at the Annual Meeting will be counted. If your shares are held in the name of a bank, broker,
or other holder of record, you must obtain a proxy, executed in your favor, from the holder of record in order to be able to vote in
person at the Annual Meeting.
Your
vote is important. Proposal 4 requires the approval of the holders of a majority of our outstanding common stock. Accordingly, we
urge you to vote promptly, which may save us the expense and effort of additional solicitation.
Important
Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to be held on June 8, 2022: This notice
of annual meeting of stockholders, the Proxy Statement, and our Annual Report on Form 10-K for 2021 are available at https://materials.proxyvote.com/53630X.
Sincerely,
Mahesh
V. Patel, Ph.D.
President,
Chief Executive Officer and
Chairman
of the Board of Directors
Salt
Lake City, Utah
April
26, 2022
YOUR
VOTE IS VERY IMPORTANT.
IN
ORDER TO ASSURE YOUR REPRESENTATION AT THE MEETING, WE URGE YOU TO VOTE BY COMPLETING, SIGNING, DATING AND RETURNING THE ENCLOSED
PROXY CARD AS PROMPTLY AS POSSIBLE. |
LIPOCINE
INC.
675
Arapeen Drive, Suite 202
Salt
Lake City, Utah
(801)
994-7383
PROXY
STATEMENT FOR ANNUAL MEETING OF STOCKHOLDERS
This
Proxy Statement is furnished in connection with the solicitation of proxies by the Board of Directors of Lipocine Inc., a Delaware corporation,
to be used at its 2022 Annual Meeting of Stockholders (the “Annual Meeting”), and which will be held at 675 Arapeen Drive,
Suite 202, Salt Lake City, Utah 84108, at 10:00 a.m. Mountain Daylight Time on June 8, 2022, and at any adjournments or postponements
thereof. Directions to the Annual Meeting may be obtained by calling (801) 994-7383, for stockholders who plan to attend the Annual Meeting
in person.
The
Notice of Meeting, this Proxy Statement and proxy card are first being sent or given to our stockholders on or about April 26, 2022,
along with our Annual Report for the fiscal year ended December 31, 2021 (the “Annual Report”). We will bear the cost of
the solicitation of proxies. The Proxy Statement and the Annual Report both are available online at: www.proxyvote.com. Web links
and addresses contained in this Proxy Statement are provided for convenience only, and the content on the referenced websites does not
constitute a part of this Proxy Statement.
Stockholders
who owned Lipocine Inc. common stock at the close of business on April 21, 2022 (the “Record Date”) are entitled to receive
notice of, attend and vote at the Annual Meeting. On the Record Date, there were 88,498,924 shares of common stock outstanding
and approximately 96 stockholders of record according to information provided by our transfer agent.
We
will provide without charge to any person from whom a Proxy is solicited by the Board of Directors, upon the written request of such
person, a copy of our 2021 Annual Report on Form 10-K, including the financial statements and schedules thereto (as well as exhibits
thereto, if specifically requested), required to be filed with the Securities and Exchange Commission. Written requests for such information
should be directed to Lipocine Inc., 675 Arapeen Drive, Suite 202, Salt Lake City, Utah 84108, Attention: Stephanie Sorensen.
References
to the “Company,” “Lipocine,” “our,” “us” or “we” mean Lipocine Inc.
TABLE
OF CONTENTS
ANNUAL
MEETING OF STOCKHOLDERS
We
have sent you this Proxy Statement and the enclosed proxy card because the Board of Directors of Lipocine Inc. (the “Board”
or “Board of Directors”) is soliciting your proxy to vote at our 2022 Annual Meeting of Stockholders to be held on Wednesday,
June 8, 2022 at our offices at 675 Arapeen Drive, Suite 202, Salt Lake City, Utah 84108, at 10:00 a.m., Mountain Daylight Time, and at
any adjournments or postponements thereof.
|
● |
This
Proxy Statement summarizes information about the proposals to be considered at the Annual Meeting and other information you may find
useful in determining how to vote. |
|
● |
The
proxy card is the means by which you actually authorize another person to vote your shares in accordance with your instructions. |
Information
About the Annual Meeting
Why
am I receiving these materials?
The
purposes of the Annual Meeting are:
1. |
To
elect six (6) directors to our Board of Directors, to serve until the next annual meeting and until their successors are duly elected
and qualified; |
|
|
2.
3.
4.
5.
6. |
To
ratify the appointment of Tanner LLC as the independent registered public accounting firm of Lipocine for the year ending December
31, 2022;
To
adopt, on an advisory basis, a non-binding resolution approving the compensation of the Company’s named executive officers,
as described in the Proxy Statement under “Executive Compensation”;
To
approve an amendment to the Amended and Restated Certificate of Incorporation of the Company
to increase the number of authorized shares of common stock from 100,000,000 to 200,000,000 shares;
To
approve the adjournment of the Annual Meeting, if necessary, to continue to solicit votes in favor of the foregoing proposals; and
To
conduct any other business properly brought before the Annual Meeting and any adjournment or postponement thereof. |
The
Board may also ask you to participate in the transaction of any other business that is properly brought before the Annual Meeting in
accordance with the provisions of our Amended and Restated Certificate of Incorporation and our Amended and Restated Bylaws (“Bylaws”).
You
are receiving this Proxy Statement as a stockholder of the Company as of the Record Date, April 21, 2022, for purposes of determining
the stockholders entitled to receive notice of and vote at the Annual Meeting. As further described below, we request that you vote promptly.
THE
BOARD UNANIMOUSLY RECOMMENDS VOTING FOR THE ELECTION OF EACH OF THE BOARD’S NOMINEES ON PROPOSAL NO. 1 AND FOR PROPOSAL NOS. 2,
3, 4, AND 5.
When
is the Annual Meeting?
The
Annual Meeting will be held at 10:00 a.m., Mountain Daylight Time, on Wednesday, June 8, 2022.
Where
is the Annual Meeting?
The
Annual Meeting will be held at our offices at 675 Arapeen Drive, Suite 202, Salt Lake City, Utah 84108.
We
are carefully monitoring the public health impact of the coronavirus (COVID-19) on a daily basis, and may decide to forego the physical,
in person Annual Meeting in favor of a virtual-only Annual Meeting or some other alternative depending on the situation. While we understand
this could disrupt the travel plans of those who plan to attend, our first priority is the health and safety of our communities, stockholders,
employees and other stakeholders. In the event we decide to hold a virtual-only Annual Meeting or some other alternative, stockholders
will be notified and provided with additional details in a press release and pursuant to filings we make with the Securities and Exchange
Commission (“SEC”). At any virtual-only Annual Meeting, we will ensure that all stockholders or their proxy holder have the
ability to participate, ask questions and vote their shares. As always, we encourage you to vote your shares prior to the Annual Meeting.
Who
can attend the Annual Meeting?
All
stockholders as of the Record Date, or their duly appointed proxies, may attend the Annual Meeting. Each stockholder may be asked to
present valid picture identification, such as a driver’s license or passport. If you hold your shares through a broker or other
nominee, you must bring a copy of a brokerage statement reflecting your stock ownership as of the Record Date. All stockholders must
check in at the registration desk at the Annual Meeting.
What
constitutes a quorum?
A
quorum of stockholders is necessary to hold a valid meeting for the transaction of business. The presence at the Annual Meeting, in person
or by proxy duly authorized, of the holders of a majority of the outstanding shares of common stock entitled to vote as of the Record
Date will constitute a quorum. Broker non-votes, abstentions and votes withheld count as shares present at the Annual Meeting for purposes
of calculating whether a quorum is present. On the Record Date, there were 88,498,924 shares of our common stock outstanding.
What
are the recommendations of the Board?
The
Board’s recommendations are set forth below.
| 1. | FOR
the election of each Board nominee; |
| 2. | FOR
the ratification of the appointment of Tanner LLC as our independent registered public
accounting firm for the year ending December 31, 2022; |
| 3. | FOR
the approval, on an advisory basis, of a non-binding resolution approving the compensation
of the Company’s named executive officers, as described in the Proxy Statement under
“Executive Compensation”; and |
| 4. | FOR
the approval of an amendment to the Amended and
Restated Certificate of Incorporation of the Company to increase the number of authorized
shares of common stock from 100,000,000 to 200,000,000 shares. |
| 5. | FOR
the adjournment of the Annual Meeting, if necessary, to continue to solicit votes in
favor of the foregoing proposals. |
If
you submit a valid proxy, the persons named as proxy holders will vote your shares as you instruct and, in the absence of any instructions,
in accordance with the recommendations of the Board. The proxy holders will vote in their own discretion with respect to any other matter
that properly comes before the Annual Meeting or any adjournments or postponements thereof.
Information
About Voting
Who
can vote at the Annual Meeting?
All
stockholders of record at the close of business on the Record Date are entitled to vote at the Annual Meeting and any adjournments or
postponements of the Annual Meeting.
What
are the voting rights of the holders of the common stock?
Holders
of our common stock will vote on all matters to be acted upon by the stockholders at the Annual Meeting. Each outstanding share of common
stock will be entitled to one vote on each matter to be voted upon at the Annual Meeting.
How
do I vote?
You
may attend the Annual Meeting and vote in person. You may submit your proxy by mail, telephone, or the Internet. If you are submitting
your proxy by mail, you should complete, sign, and date your proxy card and return it in the envelope provided. Sign your name exactly
as it appears on the proxy card. If you plan to vote by telephone or the Internet, voting instructions are printed on your proxy card.
If you provide specific voting instructions, your shares will be voted as you have instructed. Proxy cards submitted by mail must be
received by our voting tabulator no later than June 7, 2022, to be voted at the Annual Meeting. Please note that by casting your vote
by proxy you are authorizing the individuals named as proxy holders to vote your shares in accordance with your instructions and in their
discretion with respect to any other matter that properly comes before the Annual Meeting or any adjournments or postponements thereof.
If
you hold shares of our common stock in street name, you should follow the instructions in your proxy card or your broker’s instructions
to vote your shares. In these cases, you may vote by Internet or mail, as applicable. You may vote shares held through your broker in
person at the Annual Meeting only if you obtain a valid proxy from your broker giving you the legal right to vote the shares at the Annual
Meeting.
Is
my vote confidential?
Yes.
Proxy cards, ballots and voting tabulations that identify stockholders are kept confidential except in certain circumstances where it
is important to protect the interests of Lipocine and its stockholders.
What
happens if I do not vote my shares?
If
you are a stockholder of record and you do not vote by proxy card, by telephone or the Internet, or in person at the Annual Meeting,
your shares will not be voted at the Annual Meeting.
If
you hold shares of our common stock in street name and you do not direct your broker or nominee how to vote your shares, your broker
or nominee may vote your shares only on those proposals for which it has discretion to vote. Under the rules of the New York Stock Exchange,
your broker or nominee does not have discretion to vote your shares on non-routine matters such as Proposals 1 and 3. We believe that
Proposals 2, 4, and 5 are routine matters on which brokers and nominees can vote on behalf of their clients if clients do not furnish
voting instructions.
Can
I change my vote after I vote or return my proxy card?
Yes.
Even after you have voted or submitted your proxy card, you may change your vote at any time before the proxy is exercised by filing
a notice of revocation with the Secretary of Lipocine. You may also change your vote at any time before the proxy is exercised by either
casting a new vote by phone or over the Internet, or sending a duly executed proxy card bearing a later date. The powers of the proxy
holders will be suspended if you attend the Annual Meeting in person and request to recast your vote. Attendance at the Annual Meeting
will not, by itself, revoke a previously granted proxy. For information regarding how to vote in person, see “How do I vote?”
above.
What
vote is required to approve each proposal?
Proposal
No. 1, the election of six directors to our Board, will require approval of a plurality of the shares present in person or represented
by proxy at the Annual Meeting and entitled to vote, meaning that the nominees receiving the highest numbers of “for” votes
of the shares entitled to be voted for them, up to the number of directors to be elected by such shares, will be elected, provided a
quorum is present in person or by proxy. As a result, the six director nominees receiving the most “for” votes at the Annual
Meeting will be elected. The proxy card enables a stockholder to vote “FOR” or “WITHHOLD” from voting as to each
person nominated by the Board.
Proposal
Nos. 2, 3 and 5 will be decided by the affirmative vote of the majority of shares of common stock that are present or represented
by proxy and entitled to vote at the Annual Meeting.
Proposal
No. 4, the approval of an amendment to the Amended and Restated Certificate of Incorporation
of the Company to increase the number of authorized shares of common stock from 100,000,000 to 200,000,000 shares, requires the affirmative
vote of holders of a majority of shares of common stock outstanding.
A
stockholder may vote “FOR”, “AGAINST” or “ABSTAIN” on Proposal Nos. 2, 3 and 4.
What
is a broker non-vote?
A
broker non-vote occurs when a broker does not vote on a particular proposal with respect to shares of common stock held in a fiduciary
capacity (typically referred to as being held in “street name”) because the broker has not received voting instructions from
the beneficial owner. Under the rules that govern brokers who are voting with respect to shares held in street name, brokers have the
discretion to vote such shares on routine matters, but not on non-routine matters. Routine matters include the ratification of our auditors
and the approval of the proposed amendment to our certificate of incorporation. Non-routine matters include matters such as the election
of directors and the approval of, and amendments to, stock plans. Therefore, if you do not give your broker or nominee specific instructions,
your shares will not be voted on non-routine matters and may not be voted on routine matters. However, shares represented by such “broker
non-votes” will be counted in determining whether there is a quorum present at the Annual Meeting for the purpose of transacting
business.
Who
can help answer my other questions?
If
you have more questions about the Annual Meeting or require assistance in submitting your proxy or voting your shares, please contact
Krista Fogarty, our Principal Accounting Officer, at 1-801-534-6951 or by email at kf@lipocine.com. If your broker, dealer, commercial
bank, trust company or other nominee holds your shares, you should also call your broker, dealer, commercial bank, trust company or other
nominee for additional information.
VOTING
AND RELATED MATTERS
Voting
Procedures
As
a stockholder of Lipocine, you have a right to vote on certain business matters affecting us. The proposals that will be presented at
the Annual Meeting and upon which you are being asked to vote are discussed below in the “Proposals” section. Each share
of Lipocine common stock you owned as of the Record Date entitles you to one vote on each proposal presented at the Annual Meeting.
Methods
of Voting
You
may vote over the Internet, by mail or in person at the Annual Meeting. Please be aware that if you vote over the Internet, you may incur
costs such as Internet access charges for which you will be responsible.
Voting
by Telephone or over the Internet. Lipocine has established telephone and Internet voting procedures for registered shareholders.
These procedures are designed to authenticate your identity, to allow you to give your voting instructions and to confirm that those
instructions have been properly recorded.
You
can vote by calling the toll-free telephone number on your proxy card. Please have your proxy card handy when you call. Easy-to-follow
voice prompts will allow you to vote your shares and confirm that your instructions have been properly recorded.
You
may also vote your shares over the Internet by following the Internet voting instructions printed on your proxy card. Please have your
notice, proxy card or electronic notification handy when you go to the website. As with telephone voting, you can confirm that your instructions
have been properly recorded.
Telephone
and Internet voting facilities for registered stockholders will be available until 11:59 p.m. Eastern Time on June 7, 2022. If you vote
by telephone or via the Internet, you do not need to return a proxy card.
If
you hold shares of common stock in street name, the availability of telephone and Internet voting will depend on the voting processes
of your broker, bank or other holder of record. We, therefore, recommend that you follow the voting instructions in the materials you
receive.
Voting
by Mail. You may vote by mail by completing, signing, and dating your proxy card and returning it to us on or prior to June 7, 2022
(proxy cards received after June 7, 2022 (i.e., on or after the Annual Meeting date) will not be counted). Please promptly mail your
proxy card to ensure that it is received prior to the deadline.
Voting
in Person at the Meeting. If you attend the Annual Meeting and plan to vote in person, we will provide you with a ballot at the Annual
Meeting. If your shares are registered directly in your name, you are considered the stockholder of record and you have the right to
vote in person at the Annual Meeting. If your shares are held in the name of your broker or other nominee, you are considered the beneficial
owner of shares held in street name. As a beneficial owner, if you wish to vote at the Annual Meeting, you will need to bring to the
Annual Meeting a legal proxy from your broker or other nominee authorizing you to vote those shares.
Revoking
Your Proxy
You
may revoke your proxy at any time before it is voted at the Annual Meeting. To do this, you must:
| ● | enter
a new vote over the Internet or by telephone, or by signing and returning a replacement proxy
card; |
| | |
| ● | provide
written notice of the revocation to our Principal Accounting Officer at our principal executive
office, 675 Arapeen Drive, Suite 202, Salt Lake City, Utah
84108; or |
| | |
| ● | attend
the Annual Meeting and vote in person. |
Quorum
and Voting Requirements
Stockholders
of record at the close of business on April 21, 2022, are entitled to receive notice and vote at the meeting. On the Record Date, there
were 88,498,924 issued and outstanding shares of our common stock. Each holder of common stock voting at the meeting, either in
person or by proxy, may cast one vote per share of common stock held on the Record Date on all matters to be voted on at the meeting.
Stockholders may not cumulate votes in the election of directors.
The
presence, in person or by proxy duly authorized, of the holders of a majority of the outstanding shares of common stock entitled to vote
as of the Record Date constitutes a quorum for the transaction of business at the meeting. Assuming that a quorum is present:
| (1) | For
Proposal No. 1 a plurality of the shares present in person or represented by proxy at the
Annual Meeting and entitled to vote on the election of directors will be required to elect
Board nominees; |
| (2) | Proposal
Nos. 2, 3 and 5 require the affirmative vote of a majority of the shares of common stock
that are present or represented by proxy and entitled to vote at the Annual Meeting. A stockholder
may vote “FOR”, “AGAINST” or “ABSTAIN” on Proposal Nos.
2, 3 and 5; and |
| (3) | Proposal
No. 4 requires the affirmative vote of a majority of the shares of common stock outstanding
on the record date. A stockholder may vote “FOR”, “AGAINST” or “ABSTAIN”
on Proposal No. 4. |
Votes
cast by proxy or in person at the meeting will be tabulated by the election inspectors appointed for the meeting and who will determine
whether a quorum is present. The election inspectors will treat abstentions and broker non-votes (i.e., shares held by a broker or nominee
that are represented at the Annual Meeting, but with respect to which such broker or nominee is not instructed to vote on a particular
proposal and does not have discretionary voting power) as shares that are present for purposes of determining the presence of a quorum.
With regard to Proposal 1, broker non-votes and votes marked “withheld” will not be counted towards the tabulations of votes
cast on such proposal presented to the stockholders, will not have the effect of negative votes and will not affect the outcome of the
vote. With regard to Proposals 2, 3, 4, and 5, abstentions will be counted towards the tabulations of votes cast on such proposal presented
to the stockholders and will have the same effect as negative votes. Because Proposals 2, 4, and 5 are routine matters, we do not expect
any broker non-votes with respect to Proposals 2, 4, and 5. For Proposal 3, broker non-votes will not be counted for purposes of determining
whether such proposal has been approved and will not have the effect of negative votes.
If
your shares are held by a bank or broker in street name, it is important that you cast your vote if you want it to count in the election
of directors and other non-routine matters as determined by the New York Stock Exchange. Voting rules may prevent your bank or broker
from voting your uninstructed shares on a discretionary basis in the election of directors and other non-routine matters. Accordingly,
if your shares are held by a bank or broker in street name and you do not instruct your bank or broker how to vote in the election of
directors or any other non-routine matters, no votes will be cast on your behalf.
Voting
of Proxies
When
a vote is properly cast via proxy card, the shares it represents will be voted at the meeting as directed. If no specification is indicated,
the shares will be voted:
| (1) | “for”
the election of each Board nominee set forth in this Proxy Statement (Proposal No. 1); |
| (2) | “for”
the ratification of the Audit Committee’s appointment of Tanner LLC as our independent
registered accounting firm for the year ending December 31, 2022 (Proposal No. 2); |
| (3) | “for”
the approval, on an advisory basis, of a non-binding resolution approving the compensation
of the Company’s named executive officers, as described in the Proxy Statement under
“Executive Compensation” (Proposal No. 3); |
| (4) | “for”
the approval of an amendment to the Amended and
Restated Certificate of Incorporation of the Company to increase the number of authorized
shares of common stock from 100,000,000 to 200,000,000 shares (Proposal No. 4); |
| (5) | “for”
the adjournment of the Annual Meeting, if necessary, to continue to solicit votes in favor
of the foregoing proposals; and |
| (6) | at
the discretion of your proxy holder, on any other matter that may be properly brought before
the Annual Meeting. |
Voting
Results
Voting
results will be announced at the Annual Meeting and published in a Current Report on Form 8-K that will be filed with the SEC within
four business days after the Annual Meeting.
Householding
of Proxy Materials
We
are sending only one copy of these materials to certain street-name stockholders who share a single address, unless we received contrary
instructions from any stockholder at that address. This practice, known as “householding,” is designed to reduce our printing
and postage costs. However, if you are residing at such an address and wish to receive a separate copy of these materials in the future,
you may contact our Principal Accounting Officer at (801) 534-6951, by email at kf@lipocine.com or write to Krista Fogarty at Lipocine
Inc., 675 Arapeen Drive, Suite 202, Salt Lake City, Utah 84108. If you are receiving multiple copies of these materials, you may request
householding by contacting the Principal Accounting Officer in the same manner.
Proxy
Solicitation
We
will bear the cost of this solicitation. In addition, we may reimburse brokerage firms and other persons representing beneficial owners
of shares for reasonable expenses incurred in forwarding solicitation materials to such beneficial owners. Proxies also may be solicited
by our directors, officers, or employees, personally, by telephone, facsimile, Internet or other means, without additional compensation.
We have engaged Alliance Advisors, LLC to assist in the solicitation of proxies and provide related advice and information support for
a services fee and the reimbursement of customary disbursements, which aggregate amount is not expected to exceed $75,000 in total.
Important
Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to be held on June 8, 2022: The Notice
of Annual Meeting of stockholders, this Proxy Statement, and our Annual Report on Form 10-K for 2021 are available at https://materials.proxyvote.com/53630X.
PROPOSAL
NO. 1: |
ELECTION
OF DIRECTORS |
Overview
There
are currently six members of our Board. The terms of all of our directors are scheduled to expire at the 2022 Annual Meeting of Stockholders,
at which time the incumbents will stand for re-election. The six director nominees, if elected, will serve a one-year term until the
2023 Annual Meeting of Stockholders and until their successors are duly elected and qualified.
Nominees
The
Board has nominated the following individuals to serve on the Board of Directors.
| ● | Dr.
Mahesh V. Patel |
| | |
| ● | Jeffrey
A. Fink |
| | |
| ● | John
W. Higuchi |
| | |
| ● | Jill
M. Jene |
| | |
| ● | Dr.
Richard Dana Ono |
| | |
| ● | Spyros
Papapetropoulos |
Nominees
Information
with respect to the number of shares of common stock beneficially owned by each director as of March 31, 2022, appears under the heading
“Security Ownership of Certain Beneficial Owners, Directors and Management”. The name, age, years of service on our Board
of Directors, and principal occupation and business experience of each director nominee is set forth below.
Our
directors and their ages as of March 31, 2022, are as follows:
Name |
|
Age |
|
Position(s) |
|
Director
Since |
Dr.
Mahesh V. Patel, Ph.D.* |
|
65 |
|
President,
Chief Executive Officer and Chairman of the Board of Directors |
|
1997 |
|
|
|
|
|
|
|
Mr.
Jeffrey A. Fink*+ |
|
64 |
|
Director
|
|
2014 |
|
|
|
|
|
|
|
John
W. Higuchi, M.B.A.* |
|
54 |
|
Director
|
|
2003 |
|
|
|
|
|
|
|
Dr.
Jill M. Jene, Ph.D., M.B.A.*+ |
|
49 |
|
Director |
|
2022 |
|
|
|
|
|
|
|
Dr.
Richard Dana Ono, Ph.D.*+† |
|
69 |
|
Director
|
|
2014 |
|
|
|
|
|
|
|
Dr.
Spyros Papapetropoulos, M.D., Ph.D.*† |
|
49 |
|
Director |
|
2022 |
* | Nominee
for election to Board |
+
|
Member
of the Audit Committee |
† | Member
of the Compensation Committee |
Business
Experience of Nominees
Mahesh
V. Patel, Ph.D. has served as our President and Chief Executive Officer since 1997, as a member of our Board of Directors since 1997
and currently serves as the Chairman of our Board of Directors. Dr. Patel has more than 30 years of experience in strategic planning,
technology assessment/development, technical management and product research and development in the area of drug discovery support, drug
delivery and product line extensions. Prior to co-founding Lipocine in 1997, he led drug delivery research and development at Pharmacia
and Upjohn. Dr. Patel received a B.Pharm from Karnataka University in India, a M.S. in Physical Pharmacy at the University of Cincinnati
and a Ph.D. in Pharmaceutics from the University of Utah. We believe Dr. Patel’s dual role as an executive officer and director
gives him unique insights into the day-to-day operations of our company and our strategic planning and clinical development.
Jeffrey
A. Fink has served as a member of our Board of Directors since January 2014 and has over 20 years of finance and strategy experience
within the life science and healthcare industry. Mr. Fink is currently the managing director of Gambel Oaks Advisors, a strategic and
financial advisory firm dedicated to the life sciences and allied industries, where he has worked since 2010. Mr. Fink spent over twenty
years in the investment banking industry advising life science clients in the U.S. and Europe on the full range of financing and strategic
advisory assignments. He was head of Healthcare Investment Banking for Robert W. Baird & Co. in Chicago until he retired in 2007,
and prior to that was a partner in the Healthcare Group at Dresdner Kleinwort Wasserstein (the successor firm to Wasserstein Perella)
and head of Mergers and Acquisitions for Prudential Vector Healthcare, a dedicated biotechnology and life sciences investment bank. Mr.
Fink is a member of the Board of Directors of Navigen Inc., a privately held life science company based in Salt Lake City, Utah. Mr.
Fink received a BA in Economics, cum laude, from Kalamazoo College and holds an MBA in finance, with distinction, from the University
of Michigan. We believe that Mr. Fink’s knowledge of accounting and finance and his extensive experience in the life science industry
greatly benefits the Board.
John
W. Higuchi, M.B.A. has served as a member of our Board of Directors since 2003. Since 2003, Mr. Higuchi has served as Chief
Executive Officer of Aciont Inc., an ocular therapeutics company in Utah. Mr. Higuchi also is a co-founder and serves on the Board of
Directors on Spriaso, LLC, a specialty pharmaceutical company in Utah. From 1997 to 2003, Mr. Higuchi served as our Vice President of
Business Development and Corporate Treasurer. Mr. Higuchi received a B.S. in Chemistry from Hope College and an M.B.A. and Master of
Science in Information Systems from The George Washington University. We believe that Mr. Higuchi’s business development and management
experience in the therapeutics industry, together with his significant knowledge of our Company obtained while serving as a director
of our Company, greatly benefits our Board of Directors.
Dr.
Richard Dana Ono, Ph.D. has served as a director of the Company since January 2014 and has over 35 years of experience managing public
and private life science companies as well as venture capital. Since 2013, he has been an executive-in-residence to several universities
in the United States advising their licensing offices in spin-outs and new company formation from promising technologies. Throughout
his career, he has been engaged in strategic planning, product management, technology acquisition, and commercial development of life
science start-ups and has been involved in a number of pioneering milestones in biotechnology. Dr. Ono has founded several biotech companies
in the U.S. Dr. Ono is a founding director of the Massachusetts Biotechnology Council, Inc. (MassBio) and served on the Board of Trustees
of the Marine Biological Laboratory in Woods Hole, Massachusetts. He is a Fellow of the Linnean Society of London and a National Member
of the Explorers Club. Additionally, he serves as a member of the Board of Directors of Inhibitor Therapeutics, Inc. Dr. Ono received
his AB in Earth & Planetary Sciences from The Johns Hopkins University and his AM and Ph.D in Biology from Harvard University, where
he also completed a program in business administration. We believe that Dr. Ono’s extensive experience with life science companies
at each phase of development greatly benefits the Board of Directors.
Dr.
Jill Jene, Ph.D., brings more than 20 years of biopharmaceutical strategy, leadership and deal making experience to the Company’s
Board of Directors. Dr. Jene has amassed a deal sheet of over $6 billion of closed transactions and she is currently the Founder and
Principal of Jene Advisors, a Biopharmaceutical advisory firm, a position she has held since November 2021. Dr. Jene was the Vice President
and Head of Corporate Development, Strategy, Portfolio Planning and Alliance Management at Adamas from August 2020, until the company
was sold to Supernus in November of 2021. Before joining Adamas, Dr. Jene was Vice President of Business Development for PDL from May
2018 to August 2020, a publicly traded biotechnology company where she was responsible for executing deal-making to maximize value for
shareholders. Before PDL, Dr. Jene led Business Development at twoXAR from May 2017 to May 2018, where she led deal-making, resulting
in closing 6 new partnerships and securing Series A funding from Softbank and A16z. Prior to twoXAR, Dr. Jene was at Depomed (now Assertio)
from April 2006 to May 2017, where she led over 36 transactions including licensing and M&A deals including acquiring 4 commercial
franchises. Earlier in her career, she held positions of increasing responsibility at Baxter International, the 3M Company (Pharmaceutical
Division now part of Valeant) and Cell Genesys (acquired by Biosante). Dr. Jene earned a BS from Bradley, a MS and PhD in Chemistry from
Northwestern University, and an MBA in strategic management from DePaul University. We believe that Dr. Jene’s extensive experience
in biopharmaceutical business greatly benefits our Board of Directors.
Dr.
Spyros Papapetropoulos, M.D., Ph.D. is an experienced biopharmaceutical executive, recognized neuroscientist, neurodegenerative disease
clinician and change agent. He is currently serving as Chief Medical Officer at Vigil, a position he has held since September 2020, where
he oversees all the clinical development and medical functions. Prior to Vigil, Mr. Papapetropoulos served as SVP, Head of Development
(CDO) at Acadia Pharmaceuticals Inc. from November 2019 to September 2020, CEO at SwanBio Therapeutics from March 2019 to October 2020,
and Head of Research & Development and Chief Medical Officer at Cavion from June 2017 to March 2019. Before Cavion, he held senior/executive
positions at Biogen Inc., Allergan plc, Pfizer Inc., and Teva Pharmaceuticals Inc. Mr. Papapetropoulos has overseen a broad spectrum
of biopharmaceutical development programs including small molecules, biologics, and gene therapy leading to successful regulatory filings
and new product launches worldwide. He holds appointments as Consultant with Massachusetts General Hospital and has been involved in
research that led to the characterization of genetic forms of Parkinson’s disease and development of methodologies relating to
the quantification of neuromotor function in clinical research settings. Mr. Papapetropoulos has published more than 170 peer reviewed
articles and authored several book chapters and patents. We believe that Dr. Papapetropoulos’ extensive experience with clinical
research and development greatly benefits our Board of Directors.
Currently,
directors are elected on an annual basis. The term of each director’s service expires at our next annual meeting of stockholders
and at such time as his or her successor is duly elected and qualified. Officers serve at the discretion of the Board.
There
are no family relationships between any of our director nominees or executive officers.
Vote
Required
A
plurality of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors will
be required to elect Board nominees. The six nominees receiving the highest number of affirmative votes cast at the Annual Meeting
will be elected as our directors. Proxies cannot be voted for a greater number of persons than the number of nominees named.
Recommendation
The
Board recommends that stockholders vote “FOR” the election of each of the above-listed nominees.
Unless
marked otherwise, proxies received will be voted “FOR” the election of each of these director nominees.
BOARD
OF DIRECTORS
Overview
Our
Bylaws provide that the size of our Board is to be determined by resolution of the Board. Our Board has currently fixed the number of
directors at six. Our Board currently consists of six members.
Our
common stock is listed on The NASDAQ Capital Market and we comply with The NASDAQ Capital Market’s listing standards on determining
the independence of directors. Under these standards, an independent director means a person other than an executive officer or one of
our employees or any other individual having a relationship which, in the opinion of the Board of Directors, would interfere with the
exercise of independent judgment in carrying out the responsibilities of a director.
The
Board has nominated Dr. Mahesh V. Patel, Mr. Jeffrey A. Fink, Dr. Richard Dana Ono, Mr. John W. Higuchi. Dr. Jill Jene, and Dr. Spyros
Papapetropoulos for election at the Annual Meeting. Mr. Fink, Dr. Ono, Dr. Jene, and Dr. Papapetropoulos are serving as independent directors.
The nominees have agreed to serve if elected, and management has no reason to believe that the nominees will be unavailable for service.
If any nominee is unable or declines to serve as a director at the time of the Annual Meeting or any adjournment or postponement thereof,
the proxies will be voted for such other nominees as may be designated by the present Board.
We
are subject to a number of technological, regulatory, product, legal and other types of risks. The Board and its constituent committees
are responsible for overseeing these risks, and we employ a number of procedures to help them carry out that duty. For example, Board
members regularly consult with executive management about pending issues and expected challenges, and at each Board meeting directors
receive updates from, and have an opportunity to interview and ask questions of, key personnel and management. Furthermore, because our
Chief Executive Officer serves as a member of our Board, we believe that the Board has a direct channel and better access to insights
into our performance, business and challenges.
Board
Leadership Structure
The
Board does not have a policy regarding the separation of the roles of Chief Executive Officer and Chairman of the Board as the Board
believes it is in the best interests of the Company to make that determination based upon the position and direction of the Company and
the membership of the Board.
The
Board currently combines the role of Chairman of the Board with the role of Chief Executive Officer, coupled with a separate Lead Independent
Director position to further strengthen the governance structure. The Board believes this provides an efficient leadership model for
the Company. Combining the Chairman and CEO roles fosters clear accountability, effective decision-making and alignment of corporate
strategy.
The
Board has instituted the Lead Independent Director position to provide an additional measure of balance, ensure the Board’s independence
and enhance its ability to fulfill its management oversight responsibilities. Following our 2021 Annual Meeting, we have had a vacancy
in the Lead Independent Director position and we will need to appoint a new Lead Independent Director. The Lead Independent Director:
| ● | presides
over all meetings of the directors at which the Chairman is not present, including executive
sessions of the independent directors; |
| | |
| ● | frequently
consults with the Chairman and CEO about strategic policies; |
| | |
| ● | provides
the Chairman and CEO with input regarding Board meetings; |
| | |
| ● | serves
as a liaison between the Chairman and CEO and the independent directors; and |
| | |
| ● | otherwise
assumes such responsibilities as may be assigned to him by the independent directors. |
No
single leadership model is right for all companies at all times. The Board recognizes that depending on the circumstances, other leadership
models, such as a separate independent chairman of the Board, might be appropriate. Accordingly, the Board periodically reviews its leadership
structure.
Board
Role in Risk Oversight
Our
Board of Directors is responsible for overseeing the Company’s management of risk. The Board strives to effectively oversee the
Company’s enterprise-wide risk management in a way that balances managing risks while enhancing the long-term value of the Company
for the benefit of the stockholders. The Board of Directors understands that its focus on effective risk oversight is critical to setting
the Company’s tone and culture towards effective risk management. To administer its oversight function, the Board seeks to understand
the Company’s risk philosophy by having discussions with management to establish a mutual understanding of the Company’s
overall appetite for risk. Our Board of Directors maintains an active dialogue with management about existing risk management processes
and how management identifies, assesses, and manages the Company’s most significant risk exposures. Our Board expects frequent
updates from management about the Company’s most significant risks so as to enable it to evaluate whether management is responding
appropriately.
Our
Board relies on each of its committees to help oversee the risk management responsibilities relating to the functions performed by such
committees. Our Audit Committee periodically discusses with management the Company’s major financial risk exposures and the steps
management has taken to monitor and control such exposures, including the Company’s risk assessment and risk management policies.
Our Compensation Committee helps the Board to identify the Company’s exposure to any risks potentially created by our compensation
programs and practices. Each of these committees is required to make regular reports of its actions and any recommendations to the Board,
including recommendations to assist the Board with its overall risk oversight function.
Board
Diversity Matrix
The
Company is committed to diversity and inclusion, and believes it is important that the Board is composed of individuals representing
the diversity of our communities. The Company seeks nominees with a broad diversity of experience, professions, skills and backgrounds.
The Board Diversity Matrix set forth below reports self-identified diversity statistics for the Board, as constituted prior to the Annual
Meeting, in the format required by Nasdaq’s rules.
Board
Diversity Matrix (as of March 31, 2022) |
Total
Number of Directors |
|
6 |
|
|
Male |
|
Female |
Directors |
|
5 |
|
1 |
Number
of Directors who indentify in any of the categories below |
African
American or Black |
|
-
|
|
- |
Alaskan
Native or Native American |
|
- |
|
- |
Asian |
|
3 |
|
- |
Hispanic
or Latinx |
|
- |
|
- |
Native
Hawaiian or Pacific Islander |
|
- |
|
- |
White |
|
2 |
|
1 |
Two
or more races or ethnicities |
|
- |
|
- |
LGBTQ+ |
|
- |
Did
not Disclose Demographic Background |
|
- |
Committees
of the Board of Directors
The
Board has established an Audit Committee and a Compensation Committee. Each committee operates pursuant to a written charter that may
be viewed on our website at www.lipocine.com. The inclusion of our website address in this Proxy Statement does not include or incorporate
by reference the information on our website into this Proxy Statement. The Board does not have a Nominating Committee or other committee
of the Board that performs similar functions.
Audit
Committee. Our Audit Committee oversees our accounting and financial reporting processes and is responsible for (i) retaining,
evaluating and, if appropriate, recommending the termination of our independent registered public accounting firm, (ii) approving the
services performed by our independent registered public accounting firm and (iii) reviewing and evaluating our accounting principles,
financial reporting practices, and system of internal accounting controls. The Audit Committee is also responsible for maintaining communication
between the Board and our independent registered public accounting firm, and has established procedures for the receipt, retention and
treatment of complaints regarding accounting, internal accounting controls or auditing matters, and for the confidential, anonymous submission
by our employees of concerns regarding questionable accounting or auditing matters. In addition, all related person transactions are
reviewed and approved by the Audit Committee.
Our
Audit Committee currently consists of Mr. Fink, Dr. Ono, and Dr. Jene with Mr. Fink serving as the Audit Committee Chairman. The Board
has determined that all members of our Audit Committee are independent under the rules of the SEC, The NASDAQ Stock Market Rules and
the standards adopted by our Board and that Mr. Fink qualifies as an “audit committee financial expert,” as defined by the
rules of the SEC. During the fiscal year ended December 31, 2021, the Audit Committee held five meetings.
Compensation
Committee. Our Compensation Committee assists our Board in determining the compensation of our executive officers and directors.
The Compensation Committee is responsible for approving the compensation package of each executive officer and recommending each executive
officer’s compensation to the Board. The Compensation Committee currently administers our Fourth Amended and Restated 2014 Stock
and Incentive Plan. The Compensation Committee may form and delegate any of its responsibilities to subcommittees when appropriate. The
Compensation Committee is entitled, at its discretion, to engage a compensation consultant to advise the Compensation Committee. Dr.
Patel makes recommendations to the Compensation Committee regarding the compensation of the other executive officers.
Our
Compensation Committee currently consists of Dr. Ono, Mr. Fink and Dr. Papapetropoulos with Dr. Ono serving as the Compensation Committee
Chairman. The Board has determined that all members of our Compensation Committee are independent under the rules of the SEC, The NASDAQ
Stock Market Rules and the standards adopted by our Board. During the fiscal year ended December 31, 2021, the Compensation Committee
held one meeting and had multiple informal discussions amongst themselves. Additionally, the Compensation Committee deferred much of
the corporate goal setting process to the full Board in 2021.
Nominating
Committee Functions. Given the relatively small size of our Board of Directors and the desire to involve the entire Board of
Directors in nominating decisions, we have elected not to have a separate Nominating Committee. Since we do not have a Nominating Committee,
our independent directors, who currently constitute a majority of the Board of Directors, determine the director nominees and recommend
the director nominees to the Board of Directors, after which all of the members of the Board of Directors participate in the consideration
of director nominees. Our Board of Directors may employ a variety of methods for identifying and evaluating director nominees. If vacancies
are anticipated or arise, our Board of Directors considers various potential candidates who may come to our attention through current
Board members, professional search firms, stockholders or other persons. These candidates may be evaluated by our Board of Directors
at any time during the year.
In
evaluating a director candidate, our Board of Directors will review his or her qualifications including capability, availability to serve,
conflicts of interest, general understanding of business, understanding of the Company’s business and technology, educational and
professional background, personal accomplishments and other relevant factors. Our Board of Directors has not established any specific
qualification standards for director nominees, and we do not have a formal diversity policy relating to the identification and evaluation
of nominees for director, although from time to time the Board of Directors may identify certain skills or attributes as being particularly
desirable to help meet specific needs that have arisen. Our Board of Directors may also interview prospective nominees in person or by
telephone. After completing this evaluation, the Board of Directors will determine the nominees.
The
Board has not adopted a formal process for considering director candidates who may be recommended by stockholders. However, our policy
is to give due consideration to any and all such candidates. A stockholder may submit a recommendation for director candidates to us
at our corporate offices, to the attention of Krista Fogarty. In 2021 and 2022, fees totaling $160,000 are expected to be paid to a third-party
search firm for their services in identifying potential nominees and the successful appointment of two Directors in 2022.
Board
Meetings and Attendance at Annual Meetings
The
Board held a total of three meetings during 2021. Each incumbent director attended more than 75% of the aggregate of the total number
of meetings of the Board held during 2021 and the total number of meetings of all committees of the Board on which that director served
during the periods of such service, except for Dr. Jene and Dr. Papapetropoulos who were appointed to the Board in 2022. Although we
do not have a formal policy regarding attendance by directors at our Annual Meeting, we encourage directors to attend. We held our annual
meeting of stockholders for the 2021 fiscal year on June 9, 2021, and two of our directors were in attendance.
Codes
of Ethics and Business Conduct
We
have adopted a corporate Code of Ethics and Business Conduct, which may be viewed on our website at www.lipocine.com. The Code of Ethics
and Business Conduct applies to all our officers, directors and employees, including our principal executive officer, principal financial
and accounting officer and controller, or persons performing similar functions. If we effect an amendment to, or waiver from, a provision
of our Code of Ethics and Business Conduct, we intend to satisfy our disclosure requirements by posting a description of such amendment
or waiver on the website above. The inclusion of our website address in this Proxy Statement does not include or incorporate by reference
the information on our website into this Proxy Statement.
Stockholder
Communications with Directors
Stockholders
wishing to communicate with the Board or with a particular member or committee of the Board should address communications to the Board,
or to an individual member or committee as follows: c/o Lipocine Inc., Attention: Corporate Secretary, Lipocine Inc., 675 Arapeen Drive,
Suite 202, Salt Lake City, Utah 84108. All communications will be relayed to the addressee. From time to time, the Board may change the
process through which stockholders communicate with the Board or its members or committees. There were no changes in this process in
2021. Please refer to our website at www.lipocine.com for any future changes in this process. The Board or the particular director
or committee of the Board to which a communication is addressed will, if it deems appropriate, promptly refer the matter either to management
or to the full Board depending on the nature of the communication. The inclusion of our website address in this Proxy Statement does
not include or incorporate by reference the information on our website into this Proxy Statement.
The
following table provides information regarding compensation of non-employee directors who served during 2021. In 2021, each non-employee
director received an annual retainer of $35,000; members of the Audit Committee received an additional $5,000 for such service and members
of the Compensation Committee received an additional $5,000 for such service. Also in 2021, the Chair of the Audit Committee received
$16,500, and the Chair of the Compensation Committee received $10,000. Finally, we reimbursed our directors for reasonable travel expenses
incurred in attending the meetings of the Board of Directors during 2021. On June 9, 2021, directors received a stock option award of
22,000 shares of common stock. Each new director will receive an initial stock option grant to purchase 22,000 shares of common stock
of the Company at an exercise price per share equal to the closing price of our common stock on the date of grant.
Director
Compensation for 2021
Name | |
Fees
Earned or Paid in Cash ($) | | |
Stock
Awards ($) | | |
Option
Awards ($)(5) | | |
Other
Compensation ($) | | |
Total ($) | |
Jeffrey
A. Fink (1)
| |
| 54,000 | | |
| - | | |
| 21,819 | | |
| - | | |
| 75,819 | |
John
W. Higuchi (2) | |
| 35,000 | | |
| - | | |
| 21,819 | | |
| - | | |
| 56,819 | |
Dr.
Stephen A. Hill (3)
| |
| 37,500 | | |
| - | | |
| 0 | | |
| - | | |
| 37,500 | |
Dr.
R. Dana Ono (4)
| |
| 47,500 | | |
| - | | |
| 21,819 | | |
| - | | |
| 69,319 | |
| (1) | As
of December 31, 2021, Mr. Fink had 114,000 option awards outstanding. |
| (2) | As
of December 31, 2021, Mr. Higuchi had 285,490 option awards outstanding. |
| (3) | As
of December 31, 2021, Dr. Hill had no option awards outstanding. Dr. Hill did not stand for
re-election in 2021, and his term ended on June 9, 2021. |
| (4) | As
of December 31, 2021, Dr. Ono had 114,000 option awards outstanding. |
| (5) | The
amounts in this column do not reflect compensation actually received by our non-employee
directors nor do they reflect the actual value that will be recognized by the non-employee
directors. Instead, the amounts reflect the aggregate grant date fair value computed in accordance
with Accounting Standards Codification (“ASC”) 718 of awards of stock options
made to non-employee directors for the fiscal year ended December 31, 2021 but excludes an
estimate for forfeitures. The fair value of each option award is estimated on the date of
grant using the Black-Scholes option-pricing model. Additional information about the assumptions
used in the calculation of these amounts is included in footnote 2 to our audited financial
statements for the fiscal year ended December 31, 2021 included in our Annual Report on Form
10-K filed with the SEC on March 9, 2022. |
For
the 2022 fiscal year, the Board of Directors has determined that each non-employee director will receive an annual retainer of $35,000,
plus an additional $5,000 for members of the Audit Committee and Compensation Committee. Chairs of the Audit Committee and Compensation
Committee will also receive an additional $16,500 and $10,000, respectively, and the Lead Independent Director, if elected, will receive
an additional $25,000. In addition to the cash retainers, the Board of Directors also approved a director stock option award of 22,000
shares of common stock to each non-employee director, which the Company expects to grant following the Annual Meeting.
PROPOSAL
NO. 2 |
RATIFICATION
OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
Overview
The
Audit Committee has engaged the registered public accounting firm of Tanner LLC (“Tanner”) as our independent registered
public accounting firm to audit our financial statements for the year ending December 31, 2022. Tanner began auditing our financial statements
in the year ended December 31, 2018. Stockholder ratification of such selection is not required by our Bylaws or other applicable legal
requirement. However, our Board is submitting the selection of Tanner to stockholders for ratification as a matter of good corporate
practice. In the event that stockholders fail to ratify the selection, our Audit Committee will reconsider whether or not to retain that
firm. Even if the selection is ratified, our Audit Committee in its discretion may direct the appointment of a different independent
registered public accounting firm at any time during the year if our Audit Committee believes that such a change would be in our and
our stockholders’ best interests.
PRINCIPAL
ACCOUNTANTS
Principal
Accountant Fees and Services
The
following table sets forth the aggregate fees billed to the Company by Tanner for the fiscal years ended December 31, 2021 and 2020:
| |
2021 | | |
2020 | |
| |
| | |
| |
Audit fees | |
$ | 178,678 | | |
$ | 180,414 | |
| |
| | | |
| | |
Audit-related fees | |
| - | | |
| - | |
| |
| | | |
| | |
Tax fees | |
| - | | |
| - | |
| |
| | | |
| | |
All other fees | |
| - | | |
| - | |
| |
| | | |
| | |
Total audit and tax fees | |
$ | 178,678 | | |
$ | 180,414 | |
Audit
fees consist of Tanner’s fees for services related to their audits of our annual financial statements, audit of effectiveness
of internal control over financial reporting, their review of financial statements included in our quarterly reports on Form 10-Q, their
review of SEC filed registration statements, and fees for services that are normally incurred in connection with statutory and regulatory
filings or engagements, such as the issuance of consents and comfort letters.
Audit-related
fees consist of fees for assurance related services by Tanner that are reasonably related to the performance of the audit or review
of our consolidated financial statements but are not considered “audit fees.” We did not incur any fees under this category
in 2021 or 2020.
Tax
fees consist of advisory services consisting primarily of tax advice rendered by Tanner. We did not incur any fees under this category
in 2021 or 2020.
All
other fees consist of fees for professional services rendered by our independent registered public accounting firm for permissible
non-audit services, if any. We did not incur any fees under this category in 2021 or 2020.
Audit
Committee Pre-Approval Policies and Procedures
The
Audit Committee charter provides that the Audit Committee will pre-approve all audit services and non-audit services to be provided by
our independent auditors before the accountant is engaged to render these services. The Audit Committee may consult with management in
the decision-making process but may not delegate this authority to management. The Audit Committee may delegate its authority to pre-approve
services to one or more committee members, provided that the designees present the pre-approvals to the full committee at the next committee
meeting. In 2021, all audit services performed by our independent accountants were pre-approved by our Audit Committee to assure
that such services did not impair the auditors’ independence from us.
Determination
of Independence
There
were no fees billed by Tanner for non-audit services.
Attendance
at Annual Meeting
Representatives
from Tanner are expected to be present at the Annual Meeting, will have the opportunity to make a statement if they desire to do so,
and are expected to be available to respond to appropriate questions.
Vote
Required
The
proposal to ratify the appointment of Tanner as our independent registered public accounting firm to audit our financial statements for
the year ending December 31, 2022, will be approved if a majority of the shares of common stock outstanding as of the Record Date that
are present or represented by proxy and entitled to vote at the Annual Meeting vote in favor of the proposal. Abstentions will have the
same effect as negative votes. Because Proposal 2 is a routine matter, we do not expect any broker non-votes with respect to Proposal
2.
Recommendation
The
Board recommends that stockholders vote “FOR” the proposal to ratify the appointment of Tanner as our independent
registered public accounting firm to audit our financial statements for the year ending December 31, 2022.
Unless
marked otherwise, proxies received will be voted “FOR” Proposal No. 2.
REPORT
OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS
The
Audit Committee has reviewed and discussed our audited financial statements with our management and has discussed with Tanner LLC the
matters required to be discussed by the requirements of the Public Company Accounting Oversight Board.
The
Audit Committee has received the written disclosures and the letter from Tanner required by applicable requirements of the Public Company
Accounting Oversight Board regarding the independent registered public accounting firm’s communications with the Audit Committee
concerning independence and has discussed with Tanner its independence from us.
Based
on its review and the discussions referred to above, the Audit Committee recommended to the Board of Directors that the audited financial
statements for our fiscal year ended December 31, 2021, be included in our Annual Report on Form 10-K for our fiscal year ended December
31, 2021, which was filed on March 9, 2022.
|
Members
of the Audit Committee |
|
|
|
|
|
Jeffrey
A. Fink |
|
|
Dr.
Richard Dana Ono |
PROPOSAL
NO. 3 |
ADVISORY
VOTE ON EXECUTIVE COMPENSATION (“SAY-ON-PAY”) |
Background
The
Dodd-Frank Wall Street Reform and Consumer Protection Act requires that stockholders have the opportunity to cast an advisory (non-binding)
vote on executive compensation (a so-called “say-on-pay” vote), as well as an advisory vote with respect to whether future
“say-on-pay” votes will be held every one, two, or three years (a so-called “say-on-frequency” vote).
Our
executive compensation programs are designed to attract, motivate and retain our named executive officers (“NEOs”), who are
critical to our success. Under these programs, our NEOs are rewarded for the achievement of both specific financial and strategic goals,
which are expected to result in increased stockholder value. Please read the tables and narrative disclosure that follow for additional
details about our executive compensation programs, including information about the year ended December 31, 2021, compensation of our
NEOs.
The
Compensation Committee regularly reviews the compensation programs for our NEOs to ensure that they achieve the desired goals of aligning
our executive compensation structure with our stockholders’ interests and with current market practices. This includes establishing
corporate target goals and objectives based on our strategic and operating plans. In addition, from time to time, the Compensation Committee
may, including with the assistance of outside compensation consultants, analyze compensation programs and pay levels of executives at
peer companies to ensure that our compensation program is within the norm of general market practices and competitive to attract and
retain executive talent.
We
believe that our executive compensation programs have been effective at motivating the achievement of positive results, appropriately
aligning pay and performance, and enabling us to attract and retain talented executives within our industry.
Recommendation
We
request stockholder approval of our compensation of our NEOs for the year ended December 31, 2021, as disclosed in this Proxy Statement
pursuant to the SEC’s compensation disclosure rules (which disclosure includes the compensation tables, and the narrative disclosures
that accompany the compensation tables within the Executive Compensation section of this Proxy Statement). This vote is not intended
to address any specific item of compensation, but rather the overall compensation of our NEOs and the philosophy, policies and practices
described in this Proxy Statement.
Accordingly,
we ask that you vote “FOR” the following resolution at our Annual Meeting:
“RESOLVED,
that the stockholders of Lipocine Inc. (the “Company”) approve, on an advisory basis, the compensation of the named
executive officers, as disclosed in the Company’s Proxy Statement for the Annual Meeting of Stockholders pursuant to the compensation
disclosure rules of the Securities and Exchange Commission, including the Summary Compensation Table and the other related tables and
disclosure within the Executive Compensation section of the Proxy Statement for this meeting.”
The
vote solicited for Proposal No. 3 is advisory, and therefore is not binding on the Company, our Board of Directors or our Compensation
Committee, nor will its outcome require the Company, our Board of Directors or our Compensation Committee to take any action. Moreover,
the outcome of the vote will not be construed as overruling any decision by the Company, the Board of Directors or the Compensation Committee.
However, our Compensation Committee, which is responsible for designing and administering our executive compensation programs, values
the opinions expressed by our stockholders in their vote on this Proposal and will consider the outcome of this vote when making future
compensation decisions for our NEOs.
We
currently intend to include a stockholder advisory resolution on our executive compensation program at our annual meeting of stockholders
each year.
The
Board recommends that stockholders vote “FOR” the proposal to approve, on an advisory basis, the compensation of our
NEOs as disclosed in this Proxy Statement.
The
Board of Directors unanimously recommends that stockholders vote “FOR” Proposal NO. 3 to approve, on an advisory basis, the
compensation of our named executive officers as disclosed in this proxy statement.
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS, DIRECTORS AND MANAGEMENT |
The
following table shows information regarding the beneficial ownership of our common stock as of March 31, 2022 by (a) each stockholder,
or group of affiliated stockholders, that we know owns more than 5% of our outstanding common stock; (b) each of our named executive
officers; (c) each of our directors; and (d) all of our current directors and executive officers as a group. The table is based upon
information supplied by directors, executive officers and principal stockholders, and Schedules 13D and 13G filed with the SEC.
Percentage
ownership in the table below is based on 88,498,924 shares of common stock outstanding as of March 31, 2022. Beneficial ownership is
determined in accordance with the rules of the SEC, and generally includes voting power and/or investment power with respect to the securities
held. Any securities not outstanding but which are subject to options or warrants exercisable within 60 days of March 31, 2022, are deemed
outstanding and beneficially owned for the purpose of computing the percentage of outstanding common stock beneficially owned by the
stockholder holding such options or warrants but are not deemed outstanding for the purpose of computing the percentage of common stock
beneficially owned by any other stockholder.
Unless
otherwise indicated, each of the stockholders listed below has sole voting and investment power with respect to the shares beneficially
owned. The address for each director or named executive officer is c/o Lipocine Inc., 675 Arapeen Drive, Suite 202, Salt Lake City, Utah
84108.
Name and Address of Beneficial Owner | |
Shares Beneficially Owned | |
| |
Number | | |
Percent | |
Directors and Named Executive Officers | |
| | | |
| | |
Mahesh V. Patel, Ph.D.(1) | |
| 2,698,265 | | |
| 3.0 | % |
Morgan R. Brown, M.B.A.(2) | |
| 505,055 | | |
| * | |
| |
| | | |
| | |
Nachiappan Chidambaram, Ph.D. (3) | |
| 350,749 | | |
| * | |
John W. Higuchi, M.B.A.(4) | |
| 957,038 | | |
| 1.1 | % |
Jeffrey A Fink.(5) | |
| 98,562 | | |
| * | |
R. Dana Ono, Ph.D.(6) | |
| 102,125 | | |
| * | |
Jill M. Jene, Ph.D..(7) | |
| - | | |
| * | |
Spyros Papapetropoulos, Ph.D.(8) | |
| - | | |
| * | |
All executive officers and directors as a group (10 persons) | |
| 4,773,740 | | |
| 5.2 | % |
*
Less than 1.0%.
(1) |
Includes
1,253,090 shares held (i) by Dr. Patel and (ii) Dr. Patel’s spouse, in addition to 1,445,175 shares Dr. Patel has the right
to acquire through the exercise of options within 60 days of March 31, 2022. |
|
|
(2) |
Includes
194,504 shares held by Mr. Brown and 310,551 shares Mr. Brown has the right to acquire through the exercise of options within
60 days of March 31, 2022. |
|
|
(3) |
Includes
67,138 shares held by Dr. Chidambaram and 283,611 shares Dr. Chidambaram has the right to acquire through the exercise of options
within 60 days of March 31, 2022. |
|
|
(4) |
Includes
693,548 shares held by Mr. Higuchi and 263,490 shares Mr. Higuchi has the right to acquire through the exercise of options within
60 days of March 31, 2022. |
|
|
(5) |
Includes
6,562 shares held by Mr. Fink and 92,000 shares Mr. Fink has the right to acquire through the exercise of options within 60 days
of March 31, 2022. |
|
|
(6) |
Includes
10,125 shares held by Dr. Ono and 92,000 shares Dr. Ono has the right to acquire through the exercise of options within 60 days of
March 31, 2022. |
|
|
(7) |
No
shares were held by Dr. Jene as of March 31, 2022, and Dr. Jene does not have the right to acquire shares through the exercise of
options within 60 days of March 31, 2022. |
|
|
(8) |
No
shares were held by Dr. Papapetropoulos as of March 31, 2022, and Dr. Papapetropoulos does not have the right to acquire shares through
the exercise of options within 60 days of March 31, 2022. |
The
following table sets forth information regarding our current executive officers as of March 31, 2022:
Name |
|
Age |
|
Position(s) |
Mahesh
V. Patel, Ph.D. |
|
65 |
|
President,
Chief Executive Officer and Chairman of the Board of Directors |
Nachiappan
Chidambaram, Ph.D. |
|
53 |
|
Vice
President, Product Development |
Executive
Officers
Mahesh
V. Patel, Ph.D., is our President, Chief Executive Officer and Chairman of the Board of Directors. Dr. Patel’s biographical
information can be found under “Directors” above.
Morgan
R. Brown, M.B.A. served as our Executive Vice President and Chief Financial Officer from September 2013 until his resignation
from his position effective January 31, 2022.
Nachiappan
Chidambaram, Ph.D. has served as our Vice President, Product Development, since July 2014 and has over 20 years of product development
experience in pharma and biotech. Prior to being promoted to Vice President, Product Development, Dr. Chidambaram served in various product
development leadership roles with the Company including Associate Director, Product Development, from 2007 to 2014. Prior to joining
Lipocine in 2007, Dr. Chidambaram served as the Group Leader at Banner Pharmacaps from 2000 to 2007. He received his Ph.D. in Pharmaceutics
from the University of Connecticut in 2000.
Compensation
Summary
The
following table contains information with respect to the compensation for the years ended December 31, 2021, and 2020 of each individual
who acted as our principal executive officer and our two other most highly compensated executive officers or employees during the year
ended December 31, 2021. We refer to the employees identified in this table as our “Named Executive Officers”.
SUMMARY
COMPENSATION TABLE
Name
and Principal Position |
|
Year |
Salary
($) |
|
Option
Awards
($)
(1) |
Non-Equity
Incentive Plan Compensation ($) (2) |
All Other Compensation
($) |
|
|
Total
($) |
Mahesh
V. Patel
President, Chief Executive Officer and Chairman of the Board of Directors |
|
2021
2020
|
470,640
456,932
|
|
418,063
214,266
|
195,904
308,429
|
14,975
14,775
|
(3)
(3)
|
|
1,099,582
994,403
|
|
|
|
|
|
|
|
|
|
|
|
Morgan
R. Brown
Executive Vice President and Chief Financial Officer(6) |
|
2021
2020 |
348,140
338,000 |
|
156,250
218,591 |
112,710
177,450 |
11,600
11,400 |
(4)
(4) |
|
628,700
745,441 |
|
|
|
|
|
|
|
|
|
|
|
Nachiappan
Chidambaram
Vice
President, Product Development |
|
2021
2020 |
253,094
243,360
|
|
102,539
133,945 |
58,528
91,260
|
11,600
9,734 |
(5)
(5)
|
|
425,761
478,300 |
(1) |
Reflects
the aggregate grant date fair value of stock option awards computed in accordance with ASC Topic 718 but excludes an estimate for
forfeitures. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model.
Additional information about the assumptions used in the calculation of these amounts is included in footnote 9 to our audited financial
statements for the fiscal year ended December 31, 2021 included in our Annual Report on Form 10-K filed with the SEC on March 9,
2022. |
|
|
(2) |
Non-equity
incentive plan compensation includes cash awards granted at the discretion of the Compensation Committee under our cash bonus plan
for achieving certain performance-based criteria. |
|
|
(3) |
Includes
$3,375 and $3,375, respectively, in life insurance premiums we paid on behalf of the executive officer in 2021 and 2020 and $11,600
and $11,400, respectively, in 401(k) plan matching contributions in 2021 and 2020. |
|
|
(4) |
Includes
$11,600 and $11,400, respectively, in 401(k) plan matching contributions in 2021 and 2020. |
|
|
(5) |
Includes
$11,600 and $9,734, respectively, in 401(k) plan matching contributions in 2021 and 2020. |
|
|
(6) |
Mr.
Brown resigned from his position as Executive Vice President and Chief Financial Officer effective January 31, 2022. |
Outstanding
Equity Awards at Fiscal Year End
The
following table presents for each named executive officer, information regarding outstanding stock options and stock awards held as of
December 31, 2021.
| |
Option grant date | |
Number of securities underlying unexercised options
exercisable(1) | | |
Number of securities underlying unexercised options
unexercisable | | |
Option exercise price ($) | | |
Option expiration date |
Mahesh V. Patel, Ph.D. | |
01/31/2013 | |
| 136,518 | (2) | |
| - | | |
| 2.81 | | |
08/12/2023 |
| |
01/31/2013 | |
| 31,978 | (3) | |
| - | | |
| 2.81 | | |
12/16/2023 |
| |
01/31/2013 | |
| 83,421 | (4) | |
| - | | |
| 2.81 | | |
07/10/2023 |
| |
01/31/2013 | |
| 10,844 | (5) | |
| - | | |
| 2.81 | | |
12/15/2023 |
| |
01/31/2013 | |
| 69,518 | (6) | |
| - | | |
| 2.81 | | |
01/31/2023 |
| |
12/10/2013 | |
| 25,000 | (7) | |
| - | | |
| 8.10 | | |
12/09/2023 |
| |
08/14/2014 | |
| 105,116 | (8) | |
| - | | |
| 8.43 | | |
08/14/2024 |
| |
01/05/2016 | |
| 140,000 | (8) | |
| - | | |
| 12.92 | | |
01/05/2026 |
| |
12/07/2016 | |
| 140,000 | (8) | |
| - | | |
| 3.61 | | |
12/07/2026 |
| |
12/06/2017 | |
| 150,000 | (8) | |
| - | | |
| 3.52 | | |
12/06/2027 |
| |
12/04/2018 | |
| 150,000 | (8) | |
| - | | |
| 1.46 | | |
12/04/2028 |
| |
01/28/2020 | |
| 191,667 | (8) | |
| 108,333 | | |
| 0.46 | | |
01/28/2030 |
| |
12/15/2020 | |
| 33,334 | (8) | |
| 66,666 | | |
| 1.37 | | |
02/15/2030 |
| |
01/04/2021 | |
| - | (8) | |
| 275,000 | | |
| 1.43 | | |
01/04/2031 |
| |
12/07/2021 | |
| - | (8) | |
| 125,000 | | |
| 1.12 | | |
12/07/2031 |
Morgan R. Brown | |
09/16/2013 | |
| 50,000 | (8) | |
| - | | |
| 6.00 | | |
09/16/2023 |
| |
12/10/2013 | |
| 15,000 | (7) | |
| - | | |
| 8.10 | | |
12/10/2023 |
| |
08/14/2014 | |
| 34,268 | (8) | |
| - | | |
| 8.43 | | |
08/14/2024 |
| |
01/05/2016 | |
| 50,000 | (8) | |
| - | | |
| 12.92 | | |
01/05/2026 |
| |
12/07/2016 | |
| 50,000 | (8) | |
| - | | |
| 3.61 | | |
12/07/2026 |
| |
12/06/2017 | |
| 75,000 | (8) | |
| - | | |
| 3.52 | | |
12/06/2027 |
| |
12/04/2018 | |
| 75,000 | (8) | |
| - | | |
| 1.46 | | |
12/04/2028 |
| |
01/28/2020 | |
| 84,334 | (8) | |
| 47,666 | | |
| 0.46 | | |
01/28/2030 |
| |
12/15/2020 | |
| 53,334 | (8) | |
| 106,666 | | |
| 1.37 | | |
12/15/2030 |
| |
12/07/2021 | |
| - | (8) | |
| 176,000 | | |
| 1.12 | | |
12/07/2031 |
Nachiappan Chidambaram | |
01/31/2013 | |
| 13,068 | (2) | |
| - | | |
| 2.81 | | |
08/12/2023 |
| |
01/31/2013 | |
| 2,780 | (3) | |
| - | | |
| 2.81 | | |
12/16/2023 |
| |
01/31/2023 | |
| 1,390 | (5) | |
| - | | |
| 2.81 | | |
12/15/2023 |
| |
01/31/2013 | |
| 11,122 | (6) | |
| - | | |
| 2.81 | | |
01/31/2023 |
| |
12/10/2013 | |
| 5,000 | (7) | |
| - | | |
| 8.10 | | |
12/10/2023 |
| |
08/14/2014 | |
| 31,000 | (8) | |
| - | | |
| 8.43 | | |
08/14/2024 |
| |
01/05/2016 | |
| 25,000 | (8) | |
| - | | |
| 12.92 | | |
01/05/2026 |
| |
12/07/2016 | |
| 30,000 | (8) | |
| - | | |
| 3.61 | | |
12/07/2026 |
| |
12/06/2017 | |
| 34,000 | (8) | |
| - | | |
| 3.52 | | |
12/06/2027 |
| |
12/04/2018 | |
| 34,000 | (8) | |
| - | | |
| 1.46 | | |
12/04/2028 |
| |
01/28/2020 | |
| 38,334 | (8) | |
| 21,666 | | |
| 0.46 | | |
01/28/2030 |
| |
12/15/2020 | |
| 35,000 | (8) | |
| 70,000 | | |
| 1.37 | | |
02/15/2030 |
| |
12/07/2021 | |
| - | (8) | |
| 115,500 | | |
| 1.12 | | |
12/07/2031 |
(1) |
The
options have not been, and may never be, exercised, and actual gains, if any, on exercise will depend on the value of the shares
of common stock on the date of exercise. |
|
|
(2) |
These
options replaced all of the executive officer’s prior stock option grants and were fully vested on the date of grant with a
ten-year life. |
|
|
(3) |
Vesting
of these stock options were originally solely subject to the achievement of certain milestones related to the successful development
of our product candidates. The stock options would vest on December 31st of the calendar year in which the specific milestone is
accomplished as determined by the Board of Directors or on June 30, 2014, for any milestone accomplished prior to that date in 2014.
Any shares that remained unvested as of June 30, 2014, would expire unless extended by our Board of Directors. Based upon milestones
achieved in 2011, the Board of Directors determined that for 2011, 10% of such stock options and stock awards had vested as of December
31, 2011. No milestones were achieved in 2012. In January 2013, the vesting of these stock options was modified such that the stock
options and stock awards will vest as follows: (i) 100% upon first dosing in the pivotal clinical study for TLANDO, or (ii) 50% of
the unvested portion on January 31, 2014, and 50% of the remaining unvested portion on January 31, 2015. In addition, the option
expiration date was extended to the 10-year anniversary of the date of grant. Vesting of these options occurred on February 10, 2014
which was the date of first dosing in the pivotal clinical study for TLANDO. |
|
|
(4) |
This
option was fully vested on the date of grant. |
|
|
(5) |
Vesting
of this stock option was originally solely subject to the achievement of certain milestones related to the successful development
of our product candidates. Based upon milestones achieved in 2012, the Board of Directors determined that for 2012, 30% of such options
had vested as of December 31, 2012. In January 2013, the vesting of this stock option was modified such that the stock option will
vest as follows: (i) 100% upon first dosing in the pivotal clinical study for TLANDO, or (ii) 50% of the remaining unvested potion
on January 31, 2014, and 50% of the remaining unvested portion on January 31, 2015. Vesting of these options occurred on February
10, 2014, which was the date of first dosing in the pivotal clinical study for TLANDO. |
|
|
(6) |
Vesting
of the stock option is 1/36th a month over a three-year term. |
|
|
(7) |
Vesting
of the stock option is cliff vesting on December 31, 2014. |
|
|
(8) |
Vesting
of the stock option is over a three-year term with cliff vesting of one-third at the end year one with the remaining two thirds vesting
at 1/24th a month over the next 24 months. |
Executive
Employment Agreements and Change-in-Control Arrangements
We
have entered into employment agreements with the following executive officers: Dr. Mahesh V. Patel, Mr. Morgan Brown and Dr. Nachiappan
Chidambaram. Below is a description of such employment agreements.
Dr.
Mahesh V. Patel: The Company has entered into an Employment Agreement with Dr. Mahesh V. Patel, who has served as our President and
Chief Executive Officer since 1997. Under the terms of the Employment Agreement between the Company and Dr. Patel, dated January 7, 2014
(the “Dr. Patel Agreement”), Dr. Patel received an initial base salary of $370,800 per year, which has been subsequently
increased by the Board to $494,172 per year and is subject to further adjustment by the Board. Dr. Patel will be eligible to participate
in the Company’s cash bonus plan. In the event Dr. Patel’s employment is terminated without Cause or for Good Reason, as
such terms are defined in the Dr. Patel Agreement, Dr. Patel will be entitled to receive, among other severance benefits, up to 104 weeks
of severance pay at his then-applicable base salary, full vesting of all outstanding equity awards and, in the case of outstanding options
to purchase common stock, extension of the exercise period to at least three years after such termination.
Mr.
Morgan R. Brown: Mr. Brown served as the Company’s principal financial officer and principal accounting officer, a position
he held since 2013, until his resignation from his position effective January 31, 2022. Mr. Brown’s resignation was not because
of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices, including accounting
principles and practices. Since Mr. Brown’s resignation did not result in his termination without Cause or for Good Reason, as
such terms were defined in Mr. Brown’s employment agreement, his resignation did not give rise to any of the termination provisions
of his employment agreement.
Dr.
Nachiappan Chidambaram: The Company has entered into an Employment Agreement with Dr. Nachiappan Chidambaram, who was appointed Vice
President Product Development of the Company in November 2018. Under the terms of the Employment Agreement between the Company and Dr.
Chidambaram, dated November 5, 2018 (the “Dr. Chidambaram Agreement”), Dr. Chidambaram received an initial base salary of
$234,000 per year, which has been subsequently increased by the Board to $265,749 per year, and is subject to further adjustment by the
Board. Dr. Chidambaram is eligible to participate in the Company’s cash bonus plan. In the event Dr. Chidambaram’s employment
is terminated without Cause or for Good Reason, as such terms are defined in the Dr. Chidambaram Agreement, Dr. Chidambaram will be entitled
to receive among other severance benefits, 26 weeks of severance pay at his then-applicable base salary and six months accelerated vesting
of all outstanding equity awards.
Certain
Relationships and Related Transactions
Since
January 1, 2020, there has not been, nor has there been proposed, any financial transaction, arrangement or relationship or series of
similar transactions, arrangements or relationships, including those involving indebtedness not in the ordinary course of business, to
which we or our subsidiaries were or are a party, or in which we or our subsidiaries were or are a participant, in which the amount involved
exceeded or exceeds the lesser of (i) $120,000 or (ii) 1% of the average total assets of the Company at year end for the past two fiscal
years, and in which any of our directors, nominees for director, executive officers, beneficial owners of more than 5% of any class of
our voting securities or any member of the immediate family of any of the foregoing persons, had or will have a direct or indirect material
interest, other than as described above under the heading “Executive Compensation” and other than the transactions described
below.
Indemnification
Agreements
We
have entered into indemnification agreements with each of our executive officers and directors that require us to indemnify such persons
against any and all expenses, including judgments, fines or penalties, attorney’s fees, witness fees or other professional fees
and related disbursements and other out-of-pocket costs incurred, in connection with any action, suit, arbitration, alternative dispute
resolution mechanism, investigation, inquiry or administrative hearing, whether threatened, pending or completed, to which any such person
may be made a party by reason of the fact that such person is or was a director, officer, employee or agent of our Company, provided
that such director or officer acted in good faith and in a manner that the director or officer reasonably believed to be in, or not opposed
to, our best interests. The indemnification agreements also set forth procedures that will apply in the event of a claim for indemnification
thereunder. We believe that these provisions and agreements are necessary to attract and retain qualified persons as directors and officers.
Spriaso
LLC Assignment and Services Agreements
On
July 23, 2013, we entered into assignment/license and services agreements with Spriaso LLC (“Spriaso”), an entity that is
majority-owned by Dr. Mahesh V. Patel, Gordhan Patel, John W. Higuchi, Dr. William I. Higuchi, and their affiliates. Dr. Mahesh V. Patel
is our President and Chief Executive Officer and Chairman of our Board of Directors. Mr. Higuchi is a member of our Board of Directors
and Gordhan Patel and Dr. William I. Higuchi, former Board members, were each a member of our Board of Directors at the date the license
and agreements were entered into.
Under
the assignment agreement, we assigned and transferred to Spriaso all of our rights, title and interest in our intellectual property for
the cough and cold field. In addition, Spriaso was assigned all rights and obligations under our product development agreement with a
co-development partner. In exchange, we are entitled to receive a potential cash royalty of 20% of the net proceeds received by Spriaso,
up to a maximum of $10 million. Spriaso also granted back to us an exclusive license to such intellectual property to develop products
outside of the cough and cold field. The assignment agreement will expire upon the expiration of all of Spriaso’s payment obligations
thereunder and the expiration of all of the licensed patents thereunder. Spriaso has the right to terminate the assignment agreement
with 30 days written notice. We have the right to terminate the assignment agreement upon the complete liquidation or dissolution of
Spriaso, unless the assignment agreement is assigned to an affiliate or successor of Spriaso.
The
Company also agreed to continue providing up to 10% 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. Additionally, Spriaso
filed its first New Drug Application in 2014, as an affiliated entity of Lipocine, it used up the one-time waiver of user fees for a
small business submitting its first human drug application to U.S. Food and Drug Administration.
Securities
Authorized for Issuance Under Equity Compensation Plans
The
following table sets forth information as of December 31, 2021, relating to all of our equity compensation plans:
Plan Category | |
(a) Number of shares to be issued upon exercise of outstanding options(1) | | |
(b) Weighted-average exercise price of outstanding options(2) | | |
(c) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |
| |
| | |
| | |
| |
Equity compensation plan approved by stockholders | |
| 4,551,205 | | |
$ | 2.82 | | |
| 857,459 | |
| |
| | | |
| | | |
| | |
Equity compensation plans not approved by stockholders | |
| - | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | |
TOTAL | |
| 4,551,205 | | |
$ | 2.82 | | |
| 857,459 | |
(1)
|
The
balance consists of shares of common stock issuable upon the exercise of outstanding stock options granted under our 2011 Equity
Incentive Plan, as amended, and our 2014 Equity and Incentive Plan, as amended. Shares available for issuance under the Fourth Amended
and Restated 2014 Equity and Incentive Plan may become subject to stock options, stock appreciation rights, restricted stock, restricted
stock units, performance shares, performance units or other equity awards, with such terms and conditions, performance requirements,
restrictions, forfeiture provisions, contingencies and other limitations as determined by the Compensation Committee. |
|
|
(2) |
The
weighted-average exercise price does not take into account shares of common stock issuable upon vesting of outstanding restricted
stock or restricted stock units, which have no exercise price. |
PROPOSAL
NO. 4 |
APPROVAL
OF an amendment to the Amended and Restated Certificate of Incorporation of the Company to
increase the number of authorized shares of common stock from 100,000,000 to 200,000,000 SHARES |
The
Board of Directors is seeking the approval of our stockholders of an amendment to the Amended and Restated Certificate of Incorporation
of the Company (the “Amendment”), to increase the number of authorized shares of common stock from 100,000,000 to 200,000,000
shares, which was approved by the Board of Directors on March 17, 2022, subject to stockholder approval. The Amendment will not change
the number of authorized shares of preferred stock, which currently consists of 10,000,000 shares of preferred stock.
The
full text of the proposed Amendment is attached to this Proxy Statement as Appendix I. However, the text of the proposed Amendment
is subject to revision to include such changes as may be required by the Secretary of State of the State of Delaware and as our Board
of Directors deems necessary and advisable to effect the proposed amendment of the Company’s Amended and Restated Certificate of
Incorporation.
Provided
the stockholders approve the Amendment, the increased number of shares would be authorized for issuance but would remain unissued until
such time as the Board of Directors approves a specific issuance of shares. The additional shares of common stock authorized for issuance
by the Amendment would be a part of the existing class of common stock and, if and when issued, would have the same rights and privileges
as the common stock presently issued and outstanding. Adoption of the proposed amendment would not affect the rights of the holders of
currently outstanding common stock, except for effects incidental to increasing the number of shares of our common stock outstanding,
such as dilution of the earnings per share and voting rights of current holders of common stock, to the extent that any additional shares
of common stock are ultimately issued out of the increase proposed in the Amendment.
If
the proposed Amendment is approved by the requisite vote of the stockholders, it will become effective no earlier than the filing and
recording of a Certificate of Amendment with the Secretary of State of the State of Delaware. Our Board of Directors reserves its right
to elect not to proceed and abandon the Amendment if it determines, in its sole discretion, that this proposal is no longer in the best
interests of our stockholders.
Reasons
for the Amendment
The
Board of Directors is recommending the proposed increase in the authorized number of shares of common stock primarily to provide the
Company with appropriate flexibility to issue shares in the future on a timely basis if such need arises in connection with potential
financings, business combinations or other corporate purposes. Approval of the proposed Amendment will also enable the Company to take
advantage of market conditions, the availability of more favorable financing, and opportunities for business combinations and other strategic
transactions, without the potential delay and expense associated with convening a special stockholders’ meeting. We have limited
capital and in order for us to continue to execute on our business plan, we must have the flexibility to engage in capital raising transactions
until we are able to generate sufficient revenue and cash flow. Investors in prior transactions have purchased our common stock or our
derivative securities, such as warrants, for which we must reserve unissued common stock.
We
significantly rely on our authorized common stock to execute our business strategy, including, for example, to raise capital, repurchase
debt, provide equity awards to employees, officers, directors, consultants, and/or advisors, expand our business through the acquisition
of other business, and for other purposes. At present, we do not have any plans, arrangements, understandings or commitments for the
authorized but unissued shares of our common stock that would become available following the implementation of an amendment to increase
our authorized shares of common stock, other than to accommodate additional shares of our common stock to be authorized and reserved
for future equity awards under our Fourth Amended and Restated 2014 Stock and Incentive Plan in the normal course of business. However,
our Board of Directors desires to maintain flexibility to take such action necessary to execute our business strategy.
As
described in more detail below in the section titled “Number of Shares of Common Stock Currently Outstanding and Subject to Issuance,”
we presently have less than six million shares of common stock available for issuance. We therefore are limited in our ability to use
our available capital stock to execute our business strategies, including, but not limited to, taking advantage of future capital raising
opportunities that would require the issuance of shares of our common stock. Increasing the number of authorized shares of common stock
will enable us to issue common stock or securities convertible or exercisable into common stock to investors and other strategic partners.
These transactions, if they can be successfully negotiated and consummated, will help us fund our business plan, including the funding
of our clinical trials. You should be aware that these potential capital raising transactions or other strategic transactions involving
the issuance of additional shares of common stock will have a dilutive effect on our existing stockholders, as further described in the
section below titled “Effects of Increase.”
If
the increase is not approved, we will be limited in our efforts to raise additional capital. In such event, our operations, financial
condition and our ability to continue as a going concern may be materially and adversely affected.
Number
of Shares of Common Stock Currently Outstanding and Subject to Issuance
As
of March 31, 2022, we had the following shares of common stock issued and outstanding and shares of common stock reserved for issuance
under the following securities convertible or exercisable into common stock:
|
●
|
88,498,924
shares of our common stock issued and outstanding; |
|
●
|
1,934,366
shares of our common stock issuable upon exercise of outstanding warrants; |
|
●
|
4,229,739
shares of our common stock issuable upon exercise of outstanding stock options;
|
|
●
|
1,062,651
shares of our common stock reserved for issuance of future equity awards |
Certain
Effects of the Amendment
The
additional authorized but unissued shares of common stock may generally be issued from time to time for such proper corporate purposes
as may be determined by our Board of Directors, subject to any requirement for stockholder approval under applicable law or the rules
of the Nasdaq Capital Market. Our Board of Directors does not intend to solicit further stockholder approval prior to the issuance of
additional shares of common stock, except as may be required by applicable law or by the rules of the Nasdaq Capital Market.
The
possible future issuance of shares of our common stock or securities convertible or exercisable into our common stock could affect our
current stockholders in a number of ways. The issuance of new shares of common stock will cause immediate dilution of the ownership percentage
and the voting power of our existing stockholders. New issuances of common stock may also reduce the share of the proceeds that existing
stockholders would receive upon the future liquidation, if any, of the company.
In
addition, the future issuance of shares of our common stock or securities convertible or exercisable into shares of our common stock
could:
●
|
dilute
the market price of our common stock, to the extent that the shares of common stock are issued and sold at prices below current trading
prices, or, if the issuance consists of securities convertible or exercisable into common stock, to the extent that the securities
provide for the conversion or exercise into common stock at prices that could be below current trading prices of the common stock,
which dilution, in each case, may increase the volatility and affect the market value of our trading securities; |
●
|
dilute
the earnings per share, if any, and book value per share of the outstanding shares of our common stock; and, |
●
|
make
the payment of dividends on common stock, if any, potentially more expensive. |
Potential
Anti-Takeover Effects
An
increase in the number of authorized shares of common stock may also, under certain circumstances, be construed as having an anti-takeover
effect. Although not designed or intended for such purposes, the effect of the proposed increase might be to render more difficult or
to discourage a merger, tender offer, proxy contest or change in control of us and the removal of management, which stockholders might
otherwise deem favorable. For example, the authority of our Board of Directors to issue common stock might be used to create voting impediments
or to frustrate an attempt by another person or entity to affect a takeover or otherwise gain control of us because the issuance of additional
common stock would dilute the voting power of the common stock and preferred stock then outstanding. Our common stock could also be issued
to purchasers who would support our Board of Directors in opposing a takeover bid which our Board determines not to be in our best interests
and those of our stockholders.
In
addition to the proposed Amendment, our Amended and Restated Certificate of Incorporation and Bylaws also include other provisions that
may have an anti-takeover effect. These provisions, among other things, permit our Board to issue preferred stock with rights senior
to those of the common stock without any further vote or action by the stockholders, provide that special meetings of stockholders may
only be called by our Board of Directors and some of our officers, and do not provide for cumulative voting rights, which could make
it more difficult for stockholders to effect certain corporation actions and may delay or discourage a change in control.
The
Board of Directors is not presently aware of any attempt, or contemplated attempt, to acquire control of the Company and the proposed
Amendment to increase the number of authorized shares is not part of any plan by our Board of Directors to recommend or implement a series
of anti-takeover measures.
Vote
Required
The
proposal to approve an amendment to the Amended and Restated Certificate of Incorporation of the Company to increase the number of authorized
shares of common stock from 100,000,000 to 200,000,000 shares will be approved if a majority of the shares of common stock outstanding
as of the Record Date are voted in favor of the Amendment. Because the affirmative vote of holders of a majority of the outstanding shares
of the Company’s common stock is required for this proposal, abstentions will have the same effect as votes against this proposal.
Because Proposal 4 is considered a routine matter under the applicable stock exchange rules, we do not expect to receive any broker non-votes
with respect to Proposal 4. If a proxy card is signed and returned but no direction is made, the persons named in your proxy will vote
your shares “FOR” this proposal.
Recommendation
The
Board recommends that stockholders vote “FOR” the approval of an amendment to the Amended and Restated Certificate
of Incorporation of the Company to increase the number of authorized shares of common stock from 100,000,000 to 200,000,000 shares.
Unless
marked otherwise, proxies received will be voted “FOR” Proposal No.4.
PROPOSAL
NO. 5 |
ADJOURNMENT
OF THE ANNUAL MEETING, IF NECESSARY, TO CONTINUE TO SOLICIT VOTES IN FAVOR OF THE FOREGOING PROPOSALS
|
Overview
In
order to ensure that approval of the foregoing proposals is obtained, the Board of Directors wishes to seek approval of a proposal to
adjourn the Annual Meeting, if necessary, to solicit more votes in favor of the foregoing proposals.
Vote
Required
The
approval of the adjournment of the Annual Meeting, if necessary, to continue to solicit votes in favor of the foregoing proposals requires
the affirmative vote of a majority of the shares of our common stock present in person or by proxy at the Annual Meeting and entitled
to vote thereon to be approved. Abstentions are considered votes present and entitled to vote on this proposal, and thus, will have the
same effect as a vote “against” the proposal. Because this proposal is considered a “routine” matter under applicable
stock exchange rules, we do not expect to receive any broker non-votes on this proposal. If a proxy card is signed and returned but no
direction is made, the persons named in your proxy will vote your shares “FOR” this proposal.
Recommendation
The
Board of Directors recommends that you vote “FOR” the adjournment of the Annual Meeting, if necessary, to continue
to solicit votes in favor of the foregoing proposals.
Other
Business
We
know of no other matters to be submitted to the stockholders at the Annual Meeting. If any other matters properly come before the stockholders
at the Annual Meeting, the proxy holders intend to vote the shares they represent as the Board may recommend.
Annual
Report on Form 10-K
On
March 9, 2022, we filed our Annual Report on Form 10-K for the year ended December 31, 2021. A copy of the Annual Report on Form 10-K
has been made available with this Proxy Statement to all stockholders entitled to notice of and to vote at the Annual Meeting.
Stockholder
Proposals
Stockholders
may present proposals for action at a future meeting if they comply with SEC rules, state law and our Bylaws.
Pursuant
to Rule 14a-8 under the Exchange Act, some stockholder proposals may be eligible for inclusion in the Proxy Statement for our 2023 Annual
Meeting of Stockholders (the “2023 Annual Meeting”). These stockholder proposals, along with proof of ownership of our stock
in accordance with Rule 14a-8(b)(2), must be received by us not later than December 27, 2022, which is 120 calendar days prior to the
anniversary date of when our Proxy Statement was released to stockholders in connection with the 2022 Annual Meeting. Stockholders are
also advised to review our Bylaws which contain additional advance notice requirements, including requirements with respect to advance
notice of stockholder proposals (other than non-binding proposals presented under Rule 14a-8) and director nominations.
Our
Bylaws provide that, except in the case of proposals made in accordance with Rule 14a-8, for stockholder nominations to the Board of
Directors or other proposals to be considered at an annual meeting of stockholders, the stockholder must have given timely notice thereof
in writing to us not less than 90 nor more than 120 calendar days prior to the anniversary date of the preceding year’s annual
meeting. To be timely for the 2023 Annual Meeting, a stockholder’s notice must be delivered or mailed to and received by us between
February 8, 2023, and March 10, 2023. However, in the event that the date of the annual meeting is advanced more than 30 days prior to
or delayed by more than 30 days after the anniversary of the preceding year’s annual meeting, notice by the stockholder to be timely
must be so received no earlier than the close of business on the one hundred twentieth 120th day prior to such annual meeting
and not later than the close of business on the later of the 90th day prior to such annual meeting or the 10th day following
the day on which public announcement of the date of such meeting is first made. In no event shall an adjournment or a postponement of
an annual meeting for which notice has been given, or the public announcement thereof has been made, commence a new time period for the
giving of a stockholder’s notice as described above.
The
proxies to be solicited by us through our Board for our 2023 Annual Meeting will confer discretionary authority on the proxy holders
to vote on any stockholder proposal presented at that meeting, unless we receive notice of such stockholder’s proposal no later
than March 12, 2023, which is 45 calendar days prior to the anniversary date of when our Proxy Statement was released to stockholders
in connection with the 2022 Annual Meeting.
Stockholder
proposals must be in writing and should be addressed to c/o Lipocine Inc., Attention: Corporate Secretary, 675 Arapeen Drive, Suite 202,
Salt Lake City, Utah 84108. It is recommended that stockholders submitting proposals direct them to our corporate secretary and utilize
certified mail, return receipt requested in order to provide proof of timely receipt. The Chairman of the Annual Meeting reserves the
right to reject, rule out of order or take other appropriate action with respect to any proposal that does not comply with these and
other applicable requirements, including conditions set forth in our Bylaws and conditions established by the SEC.
We
have not been notified by any stockholder of his or her intent to present a stockholder proposal from the floor at this year’s
Annual Meeting. The enclosed proxy grants the proxy holders discretionary authority to vote on any matter properly brought before this
year’s Annual Meeting.
By
Order of the Board of Directors
Mahesh
V. Patel, Ph.D.
President,
Chief Executive Officer and
Chairman
of the Board of Directors
April
26, 2022
Salt
Lake City, Utah
APPENDIX
I
CERTIFICATE
OF AMENDMENT
TO
AMENDED
AND RESTATED CERTIFICATE OF INCORPORATION
OF
LIPOCINE
INC.
Lipocine
Inc. (the “Company”), a corporation organized and existing under and by virtue of the General Corporation Law
of the State of Delaware (the “DGCL”), does hereby certify that:
FIRST:
The name of this corporation is Lipocine Inc. and the date on which the Amended and Restated Certificate of Incorporation of the
Company was originally filed with the Secretary of State of the State of Delaware was July 24, 2013 (the “Amended and Restated
Certificate of Incorporation”).
SECOND:
The Board of Directors of the Corporation has duly adopted resolutions proposing and declaring advisable that the Amended and Restated
Certificate of Incorporation be amended as set forth herein and calling for the consideration and approval thereof at a meeting of the
stockholders of the Corporation.
THIRD:
The Amended and Restated Certificate of Incorporation is hereby amended by deleting the first paragraph of ARTICLE IV in its entirety
and inserting the following in lieu thereof:
A.
This Company is authorized to issue two classes of stock to be designated, respectively, “Common Stock” and “Preferred
Stock.” The total number of shares which the corporation is authorized to issue is two hundred ten million (210,000,000) shares.
Two hundred million (200,000,000) shares shall be Common Stock, each having a par value of one-hundredth of one cent ($0.0001). Ten million
(10,000,000) shares shall be Preferred Stock, each having a par value of one-hundredth of one cent ($0.0001).
FOURTH:
Pursuant to a resolution of the Board, this Certificate of Amendment was submitted to the stockholders of the Company for their approval,
and was duly adopted in accordance with the provisions of Section 242 of the DGCL.
FIFTH:
This Certificate of Amendment to the Amended and Restated Certificate of Incorporation shall be effective on and as of the date of filing
of this Certificate of Amendment with the Secretary of State of the State of Delaware.
IN
WITNESS WHEREOF, Lipocine Inc. has caused this Certificate of Amendment to be executed by its duly authorized officer on this day of
, 2022.
|
LIPOCINE
INC. |
|
|
|
|
By:
|
|
|
|
Mahesh
V. Patel |
|
|
President
and CEO |
APPENDIX
II
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