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

Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

Property and Equipment

9 Months Ended

Sep. 30, 2019

Property Plant And Equipment [Abstract]

Property and Equipment

NOTE 13 – PROPERTY AND EQUIPMENT

Property and equipment comprise the following (in thousands):

	September 30,			December 31,
	2019			2018
Laboratory equipment	$	7,256		$	4,676
Leasehold improvements		8,857			3,274
Furniture and fixtures		142			89
Computer and equipment		282			145
		16,537			8,184
Less: Accumulated depreciation		(2,653	)		(1,333	)
Total property and equipment, net	$	13,884		$	6,851

Depreciation expense for the three months ended September 30, 2019 and 2018 was $0.5 million and $0.4 million, respectively.

Depreciation expense for the nine months ended September 30, 2019 and 2018 was $1.3 million and $0.6 million, respectively.

During Q3 2019 the Company completed the new R&D facility at its new location in Austin, Texas and continued construction on the expansion of its cGMP facility. In connection with the completion of its new R&D facility in September 2019 the Company recorded a related asset retirement obligation (“ARO”) asset and liability of $0.4 million.

In connection with the continued construction of the expansion of the cGMP facility the Company recorded a related ARO asset and liability of $0.4 million at September 30, 2019. The expansion is expected to be completed during Q1 2020.

At September 30, 2019 and December 31, 2018, the Company had net ARO assets totaling $0.9 million and $0.1 million, respectively. The ARO assets are included in Leasehold improvements.