INCOME TAXES	107 Months Ended
Dec. 31, 2011
INCOME TAXES	NOTE 4—INCOME TAXES Opexa uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes. At December 31, 2011, Opexa had approximately $61 million of unused net operating losses available for carryforward to future years. The unused net operating losses begin to expire at December 31, 2024. At December 31, 2011, Opexa’s deferred tax asset resulting from its cumulative NOLs amounted to $20,876,592 which is covered by a full valuation allowance due to uncertainty of Opexa’s ability to generate future taxable income necessary to realize the related deferred tax asset. During 2010, Opexa received a direct payment of $244,479 from the Internal Revenue Service in payment of their application for the Qualifying Therapeutic Discovery Grant. Opexa accounted for this payment as a reduction of research and development expenses for the year ended December 31, 2010.

INCOME TAXES

107 Months Ended

Dec. 31, 2011

NOTE 4—INCOME TAXES

Opexa uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes.

At December 31, 2011, Opexa had approximately $61 million of unused net operating losses available for carryforward to future years. The unused net operating losses begin to expire at December 31, 2024. At December 31, 2011, Opexa’s deferred tax asset resulting from its cumulative NOLs amounted to $20,876,592 which is covered by a full valuation allowance due to uncertainty of Opexa’s ability to generate future taxable income necessary to realize the related deferred tax asset.

During 2010, Opexa received a direct payment of $244,479 from the Internal Revenue Service in payment of their application for the Qualifying Therapeutic Discovery Grant. Opexa accounted for this payment as a reduction of research and development expenses for the year ended December 31, 2010.