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

Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Reconciliation of Income Taxes at Statutory Federal Income Tax Rate to Net Income Taxes

A reconciliation of income taxes at the statutory federal income tax rate to net income taxes included in the accompanying statements of operations is as follows (in thousands):


	2012			2011			2010
U.S. federal taxes (benefit) at statutory rate	$	(24,186	)	$	(8,722	)	$	(6,353	)
State federal income tax benefit		(1,160	)		(1,995	)		(1,593	)
Unutilized (utilized) net operating losses		7,455			11,731			9,392
Stock-based compensation		288			223			224
Research and development credits		—			(885	)		(732	)
Tax assets not benefited		143			1,105			957
Nondeductible warrant expense		17,414			(1,482	)		(1,756	)
Other		46			25			(139	)

Total	$	0		$	0		$	0

Schedule of Significant Components of Net Deferred Tax Assets

The tax effects of temporary differences that give rise to significant components of the net deferred tax assets are as follows (in thousands):


	December 31,
	2012			2011
Capitalized start-up costs	$	209		$	238
Net operating loss carryforwards		44,769			37,889
Research and development credits		3,513			3,370
Deferred stock compensation		2,115			1,635
Other (accruals, reserves, depreciation)		958			592

Total deferred tax assets		51,564			43,724
Less: Valuation allowance		(51,564	)		(43,724	)

	$	—		$	—

Schedule of Activity Related to Unrecognized Tax Benefits

The following table summarizes the activity related to our gross unrecognized tax benefits:


(in thousands)	2012		2011
Gross unrecognized tax benefits at January 1,	$	1,100	$	1,100
Gross increases (decreases) related to prior year tax positions		—		—
Gross increases (decreases) related to current year tax positions		—		—
Settlements		—		—
Expiration of the statute of limitations for the assessment of taxes		—		—

Gross unrecognized tax benefits at December 31,	$	1,100	$	1,100