Cash and Cash Equivalents

3 Months Ended

Mar. 31, 2012

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 March 31, 2012, Opexa invested approximately $4.5 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, and is not federally insured or guaranteed by or obligations of the Federal Deposit Insurance Corporation or any other agency. For the three months ended March 31, 2012, the money market fund recognized an average market yield of 0.01%. Interest income of $136 was recognized for the three months ended March 31, 2012 in the statements of expenses.