Molecular Templates, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

EQUITY INCENTIVE PLANS AND STOCK BASED COMPENSATION (Tables)

EQUITY INCENTIVE PLANS AND STOCK BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2012

Stock Option Activity Under Equity Incentive Plan

Activity under the 2004 Plan is set forth below:


	Shares Available for Grant			Outstanding Options					Weighted Average Exercise Price
	Shares Available for Grant			Number of Shares			Exercise Price		Weighted Average Exercise Price
Balances, December 31, 2009		143,505			935,660		$	0.42–21.66		1.17
Additional shares reserved		2,452,401			—
Options granted		(1,849,500	)		1,849,500			0.99–1.88		1.45
Options exercised		—			(20,000	)		0.79–1.30		1.05
Options canceled		19,442			(19,442	)		0.79–1.95		1.61

Balances, December 31, 2010		765,848			2,745,718		$	0.42–3.18	$	1.36
Additional shares reserved		1,250,000			—
Options granted		(1,196,500	)		1,196,500			1.53–1.86		1.64
Options exercised		—			(11,603	)		0.79–1.44		1.24
Options canceled		258,436			(258,436	)		0.79–1.88		1.38

Balances, December 31, 2011		1,077,784			3,672,179		$	0.42–3.18	$	1.45
Additional shares reserved		1,250,000			—
Options granted		(1,844,000	)		1,844,000			1.38–$7.75		6.24
Options exercised		—			(402,580	)		0.79–$3.08		1.39
Options canceled		14,627			(14,627	)		0.79–$6.18		4.25

Balances, December 31, 2012		498,411			5,098,972		$	0.42–$7.75	$	3.18

Stock Options Outstanding and Exercisable by Exercise Price

At December 31, 2012, stock options outstanding and exercisable by exercise price were as follows:


	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$0.42 – 1.38		664,316		5.31	$	1.12		619,876	$	1.10
$1.44 – 1.44		1,397,189		7.37		1.44		889,657		1.44
$1.49 – 1.62		180,000		8.23		1.58		76,527		1.61
$1.64 – 1.64		962,095		8.41		1.64		378,651		1.64
$1.69 – 6.85		934,372		9.05		4.93		223,131		4.16
$7.00 – 7.75		961,000		9.34		7.28		127,496		7.22

$0.42 – 7.75		5,098,972		8.01	$	3.18		2,315,388	$	1.97

Weighted-Average Fair Value Valuation Assumptions

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 years ended December 31, 2012, 2011 and 2010:


	Years ended December 31,
	2012			2011			2010
Employee Stock Options
Risk-free interest rate		1.12	%		1.88	%		2.35	%
Expected life (in years)		5.99			5.98			5.99
Dividend yield		—			—			—
Volatility		105	%		92	%		85	%
Weighted-average fair value of stock options granted	$	5.09		$	1.23		$	1.05

Employee Stock Purchase Plan
Risk-free interest rate		0.21	%		0.15	%		0.40	%
Expected life (in years)		1.25			1.25			1.25
Dividend yield		—			—			—
Volatility		111	%		80	%		88	%
Weighted-average fair value of ESPP purchase rights	$	3.46		$	0.66		$	0.80

Assumptions of Equity-Based Payments to Non-Employees

Equity-Based Payments to Non-Employees using the following assumptions:


	Years Ended December 31,
	2012			2011			2010
Risk-free interest rate		1.93	%		1.37	%		1.94	%
Expected life (in years)		10			5.15			5.00
Dividend yield		—			—			—
Expected volatility		101	%		92	%		85	%

Stock-Based Compensation Expense

Total stock-based compensation expense was allocated to research and development and general and administrative as follows (in thousands):


	Year Ended December 31,
	2012		2011		2010
Stock-based compensation expense:
Research and development	$	1,521	$	471	$	381
General and administrative		1,489		568		422

	$	3,010	$	1,039	$	803

- 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.

+ References + Details

- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

+ References + Details