Note C. FUNDRAISING ACTIVITIES

As disclosed above, management has determined that the Company will require additional capital above its current cash and working capital balances to further develop AEM-28 and its analogs and to continue operations. Accordingly, the Company has reduced its development activities. The Company’s corporate strategy is to raise funds by possibly engaging in a strategic/merger transaction, or conducting a private or public offering of debt or equity securities for capital. In connection with these efforts, we filed a Registration Statement on Form S-1 with the Securities and Exchange Commission on June 26, 2015, as amended, in connection with our contemplated public offering of shares of our Common Stock. The Registration Statement is not effective as of September 30, 2015.

As of September 30, 2015, we have deferred recognition of approximately $148,000 of direct costs, primarily legal costs and filing fees, related to fundraising activities in connection with our contemplated public offering of shares of our Common Stock. These costs are to be offset against the equity raised upon completion of the offering. The deferred costs are included in other current assets in the Condensed Consolidated Balance Sheet at September 30, 2015.