EXHIBIT 99.2
OPEXA PHARMACEUTICALS, INC.
(A Development Stage Company)
BALANCE SHEET
June 30, 2004
(Unaudited)
ASSETS
Current Assets
Cash $ 228,060
Cash - Money Market 391,726
Prepaid expenses 6,648
Deposits 25,287
-----------
Total Current Assets 651,721
Fixed assets, net of accumulated
depreciation of $324,222 678,000
-----------
TOTAL ASSETS $ 1,329,721
===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable $ 190,218
Accrued expenses 138,000
-----------
Total Current Liabilities 328,218
-----------
Long Term Liabilities
Deferred rent 81,065
Redeemable Series A Convertible Preferred Stock,
$0.001 par value, 11,500,000 shares authorized,
6,804,349 issued and outstanding 8,352,451
-----------
Total Long Term Liabilities 8,433,516
-----------
Total Liabilities 8,761,734
-----------
Commitments and Contingencies
Stockholders' Deficit
Common stock, $0.001 par value, 20,000,000 shares
authorized, 2,575,625 shares issued and outstanding 2,576
Deferred stock compensation (623)
Additional paid in capital 47,338
Deficit accumulated during the development stage (7,481,304)
-----------
Total Stockholders' Deficit (7,432,013)
-----------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 1,329,721
===========
EXHIBIT 99.2
OPEXA PHARMACEUTICALS, INC.
(A Development Stage Company)
STATEMENTS OF EXPENSES
Three and Six Months Ended June 30, 2004 and 2003, and
the Period from February 16, 2001 (Inception) Through June 30, 2004
(Unaudited)
Three Months Six Months Inception
Ended June 30 Ended June 30 Through
---------------------------- ---------------------------- -----------
2004 2003 2004 2003 June 30, 2004
----------- ----------- ----------- ----------- -----------
Operating Expenses:
Research & development $ 454,048 $ 359,183 $ 864,869 $ 694,407 $ 3,994,282
General & administrative 448,729 321,315 858,614 678,844 3,514,909
----------- ----------- ----------- ----------- -----------
Total operating expense 902,777 680,498 1,723,483 1,373,251 7,509,191
----------- ----------- ----------- ----------- -----------
Operating Loss (902,777) (680,498) (1,723,483) (1,373,251) (7,509,191)
Other income (expense)
Interest income 1,103 5,946 3,127 14,966 81,726
Interest expense -- -- -- -- (54,441)
Gain on sale of equipment -- 602 -- 602 602
----------- ----------- ----------- ----------- -----------
Net Loss $ (901,674) $ (673,950) $(1,720,356) $(1,357,683) $(7,481,304)
=========== =========== =========== =========== ===========
Basic and diluted $ (0.35) $ (0.26) $ (0.67) $ (0.53)
loss per share
Weighted average
shares outstanding 2,575,625 2,575,625 2,575,625 2,570,415
EXHIBIT 99.2
OPEXA PHARMACEUTICALS, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
Six Months ended June 30, 2004 and 2003, and
the Period from February 16, 2001 (Inception) Through June 30, 2004
(Unaudited)
Six Months Inception
Ended June 30 Through
-------------------------------- -----------
2004 2003 June 30, 2004
----------- ----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(1,720,356) $(1,357,683) $(7,481,304)
Adjustments to reconcile net loss to
cash used in operating activities:
Depreciation and amortization 96,212 79,887 325,024
Amortization of deferred compensation 204 505 1,435
Gain on sale of fixed assets -- (602) (602)
Research and development costs
incurred by issuing common stock -- -- 17,000
Change in:
Prepaid and other assets 34,900 20,441 (6,648)
Deposits -- -- (25,287)
Accounts payable & accrued expenses 96,191 (513,884) 382,654
Deferred rent 22,110 -- 81,065
Amounts due to related parties -- (60,954) --
----------- ----------- -----------
NET CASH USED IN OPERATING ACTIVITIES (1,470,739) (1,832,290) (6,706,663)
----------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (9,996) (120,360) (1,003,922)
Proceeds from disposal of fixed assets -- 1,500 1,500
----------- ----------- -----------
NET CASH USED IN INVESTING ACTIVITIES (9,996) (118,860) (1,002,422)
----------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under
convertible notes payable -- -- 1,750,000
Proceeds from borrowings under notes
payable and convertible note
payable to related parties -- -- 500,000
Sales of common stock -- 2,604 30,856
Sales of Series A Preferred Stock -- 32,647 6,048,015
----------- ----------- -----------
NET CASH PROVIDED BY FINANCING
ACTIVITIES -- 35,251 8,328,871
----------- ----------- -----------
NET CHANGE IN CASH (1,480,735) (1,915,899)
CASH AT BEGINNING OF PERIOD 2,100,521 5,298,178 --
----------- ----------- -----------
CASH AT END OF PERIOD $ 619,786 $ 3,382,279 $ 619,786
=========== =========== ===========
NONCASH ACTIVITIES:
Conversion of debt and accrued interest
into Series A Preferred Stock -- -- 2,304,436
EXHIBIT 99.2
OPEXA PHARMACEUTICALS, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited interim financial statements of Opexa
Pharmaceuticals, Inc. (Opexa), have been prepared in accordance with accounting
principles generally accepted in the United States of America and the rules of
the Securities and Exchange Commission ("SEC"), and should be read in
conjunction with the audited financial statements and notes thereto contained in
Opexa's Annual Report filed with the SEC on Form 8K. In the opinion of
management, all adjustments, consisting of normal recurring adjustments,
necessary for a fair presentation of financial position and the results of
operations for the interim periods presented have been reflected herein. The
results of operations for interim periods are not necessarily indicative of the
results to be expected for the full year. Notes to the financial statements
which would substantially duplicate the disclosure contained in the audited
financial statements for fiscal 2003 as reported in the form 8K have been
omitted.