{"url_path":"/sec/lipo/8-k/2026-07-15/item-1-03","section_key":"item-1-03","section_title":"Item 1.03 Bankruptcy or Receivership.**","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-07-15","source_url":"https://www.sec.gov/Archives/edgar/data/1347242/0001753926-26-001173-index.html","accession_number":"0001753926-26-001173","cik":"0001347242","ticker":"LIPO","issuer_name":"LIPELLA PHARMACEUTICALS INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1347242/0001753926-26-001173-index.html","primary_entity_key":"0001347242","primary_entity_name":"LIPELLA PHARMACEUTICALS INC."},"word_count":224,"has_tables":true,"body_markdown":"**Item\n1.03    Bankruptcy or Receivership.**\n\n \n\n*Asset\nPurchase Agreement*\n\n \n\nOn\nMarch 30, 2026, Lipella Pharmaceuticals Inc. (the “Company”) filed a voluntary petition for relief under chapter 11\nof title 11 of the United States Code in the United States Bankruptcy Court for the Western District of Pennsylvania (the “Bankruptcy\nCourt”) at Case No. 26-20879-CMB (the “Bankruptcy Case”).\n\n \n\nOn\nMay 14, 2026, the Company entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with XRAIY (the\n“Purchaser”) pursuant to which the Purchaser agreed to purchase substantially all of the assets of the Company (such\nassets, the “Purchased Assets,” and such transaction, the “Sale”). The Bankruptcy Court authorized and\napproved the Sale and the Asset Purchase Agreement, pursuant to section 363 of the Bankruptcy Code, by Order dated June 4, 2026,\nat Doc. No. 115 (the “Sale Order”).\n\n \n\nA\ncopy of the Sale Order is attached hereto as Exhibit 2.1. A copy of the Asset Purchase Agreement is attached hereto as\nExhibit 2.2.\n\n \n\n**Cautionary\nNote Regarding the Company’s Common Stock**\n\n \n\nThe\nCompany cautions that trading in the Company’s common stock during the pendency of the Chapter 11 Case is highly speculative\nand poses substantial risks. Trading prices for the Company’s common stock may bear little or no relationship to the actual\nrecovery, if any, by holders of the Company’s common stock in the Chapter 11 Case."}