Cash and Cash Equivalents

9 Months Ended

Sep. 30, 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 September 30, 2012, Opexa had $2,237,618 in cash and cash equivalents with approximately $2.0 million of this invested 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 nine months ended September 30, 2012, the money market fund recognized an average market yield of 0.01%. Interest income of $256 was recognized for the nine months ended September 30, 2012 in the statement of expenses.