Molecular Templates, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

STOCK BASED COMPENSATION (Tables)

STOCK BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2012

Weighted-Average Fair Value Valuation Assumptions

service periods of the awards, which is generally the vesting period. The fair value of employee stock options and employee purchase rights under the Company’s ESPP was estimated using the following weighted-average assumptions for the three and nine months ended September 30, 2012 and 2011:


	Three Months Ended September 30,					Nine Months Ended September 30,
	2012			2011		2012			2011
Employee Stock Options
Risk-free interest rate		1.03	%		—		1.13	%		1.93	%
Expected term (in years)		6.08			—		5.99			5.97
Dividend yield		—			—		—			—
Volatility		98	%		—		106	%		91	%
Weighted-average fair value of stock options granted	$	5.87		$	—	$	5.12		$	1.23


	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Employee Stock Purchase Plan (ESPP):
Risk-free interest rate		0.21	%		0.13	%		0.21	%		0.15	%
Expected term (in years)		1.25			1.25			1.25			1.25
Dividend yield		—			—			—			—
Volatility		111	%		80	%		111	%		80	%
Weighted-average fair value of ESPP purchase rights	$	4.62		$	0.66		$	3.46		$	0.66

Stock-Based Compensation Expense

Stock-based compensation expense, which consists of the compensation cost for employee stock options and ESPP, and the value of options issued to non-employees for services rendered, was allocated to research and development and general and administrative as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Amortization of stock-based compensation:
Research and development	$	471	$	141	$	1,082	$	328
General and administrative		473		151		1,005		415

	$	944	$	292	$	2,087	$	743

Stock Option Activity Under Equity Incentive Plan

The following table summarizes stock option activity under the Company’s 2004 Equity Incentive Plan:


Options	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2011		3,672,179		$	1.45		—		—
Granted		1,787,000		$	6.28		—		—
Exercised		(330,352	)	$	1.36		—		—
Forfeitures		—		$	—		—		—

Outstanding at September 30, 2012		5,128,827		$	3.14		8.24	$	21,102,085

Vested and expected to vest September 30, 2012		5,068,823		$	3.12		8.23	$	20,964,921
Exercisable at September 30, 2012		2,089,451		$	1.78		7.24	$	11,398,737

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

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