ArQule (ARQL)

Item 1 —  Legal Proceedings.  None.

Item 1A — Risk Factors.   For information regarding factors that could affect the Company’s results of operations, financial condition and liquidity, see the risk factors discussion provided under “Risk Factors” in Item 1A of ArQule’s Annual Report on Form 10-K for the year ended December 31, 2005 as updated from time to time in our subsequent Quarterly Reports on Form 10Q and Current Reports on Form 8-K.  See also, “Forward-Looking Statements” included in this Quarterly Report on Form 10-Q.

Item 2 — Changes in Securities and Use of Proceeds.  None.

Item 3 — Defaults Upon Senior Securities.  None.

Item 4 — Submission of Matters to a Vote of Security Holders. None.

Item 5 — Other Information.  None.

Item 6 — Exhibits.

(1)          Previously filed as Appendix B to the Company’s Definitive Proxy Statement filed on April 21, 2006 and incorporated herein by reference.

(2)          Previously filed as Appendix C to the Company’s Definitive Proxy Statement filed on April 21, 2006 and incorporated herein by reference

(3)          Previously filed as an exhibit to the Company’s Current Report on Form 8-K filed on August 1, 2006 and incorporated herein by reference.

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PART II - OTHER INFORMATION

Item 1 — Legal Proceedings. None.

Item 1A — Risk Factors.  For information regarding factors that could affect the Company’s results of operations, financial condition and liquidity, see the risk factors discussion provided under “Risk Factors” in Item 1A of ArQule’s Annual Report on Form 10-K for the year ended December 31, 2005. See also, “Forward-Looking Statements” included in this Quarterly Report on Form 10-Q.

Item 2 — Changes in Securities and Use of Proceeds. None.

Item 3 — Defaults Upon Senior Securities. None.

Item 4 — Submission of Matters to a Vote of Security Holders.

The Company filed a current report on Form 8-K on May 24, 2006 to report the results of matters submitted to a vote at the Annual Meeting of Stockholders held on May 18, 2006, which is incorporated herein by reference.

Item 5 — Other Information. None.

Item 6 — Exhibits.

(1)             Previously filed as an exhibit to the Company’s Current Report on Form 8-K filed on April 18, 2006 and incorporated herein by reference.

(2)             Previously filed as an exhibit to the Company’s Current Report on Form 8-K filed on April 27, 2006 and incorporated herein by reference.

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