1. DESCRIPTION OF BUSINESS Arno Therapeutics, Inc. ( Arno  or the  Company ) is developing innovative drug candidates intended to treat patients with cancer and other life threatening diseases. The Company was incorporated in Delaware in March 2000, at which time its name was Laurier International, Inc. ( Laurier ). Pursuant to an Agreement and Plan of Merger dated March 6, 2008 (as amended, the  Merger Agreement ), by and among the Company, Arno Therapeutics, Inc., a Delaware corporation formed on August 1, 2005 ( Old Arno ), and Laurier Acquisition, Inc., a Delaware corporation and wholly-owned subsidiary of the Company ( Laurier Acquisition ), on June 3, 2008, Laurier Acquisition merged with and into Old Arno, with Old Arno remaining as the surviving corporation and a wholly-owned subsidiary of Laurier. Immediately following this merger, Old Arno merged with and into Laurier and Laurier s name was changed to Arno Therapeutics, Inc. These two merger transactions are hereinafter collectively referred to as the  Merger.  Immediately following the Merger, the former stockholders of Old Arno collectively held 95 % of the outstanding common stock of Laurier, assuming the issuance of all shares issuable upon the exercise of outstanding options and warrants, and all of the officers and directors of Old Arno in office immediately prior to the Merger were appointed as the officers and directors of Laurier immediately following the Merger. Further, Laurier was a non-operating shell company prior to the Merger. The merger of a private operating company into a non-operating public shell corporation with nominal net assets is considered to be a capital transaction in substance, rather than a business combination, for accounting purposes. Accordingly, the Company treated this transaction as a capital transaction without recording goodwill or adjusting any of its other assets or liabilities. All costs incurred in connection with the Merger have been expensed. Upon completion of the Merger, the Company adopted Old Arno s busin