Cash and Cash Equivalents

6 Months Ended

Jun. 30, 2011

Cash and Cash Equivalents

Note 2.  Cash and Cash Equivalents

Opexa considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents. Investments with maturities in excess of three months but less than one year are classified as short-term investments and are stated at fair market value.

At June 30, 2011, Opexa invested approximately $9.7 million in a money market fund investing exclusively in high-quality, short-term money market instruments consisting of U.S. government obligations and repurchase agreements collateralized by the U.S. Government. While this fund seeks current income while preserving capital and liquidity, the fund is subject to risk, including U.S. government obligations risk. For the six months ended June 30, 2011, the money market fund recognized an average market yield of 0.01%. Interest income of $471 was recognized for the six months ended June 30, 2011 in the statements of expenses.