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, 2022

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):

	2022			2021
U.S. federal taxes (benefit) at statutory rate	$	(19,459	)	$	(17,431	)
State federal income tax benefit		(8,653	)		(3,834	)
Permanent differences		3			15
Stock compensation		1,964			1,666
Research and development credits		(2,494	)		(2,840	)
Change in valuation allowance due to operations		30,619			24,219
Change in state rate and carryovers		(1,927	)		(1,795	)
Total	$	53		$	—

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,
	2022			2021
Deferred tax assets
Net operating loss carryforward	$	53,957		$	63,372
Interest		—			603
Research and development credits		15,235			12,422
Deferred stock compensation		8,086			5,916
Deferred revenue		16,127			699
Lease liability		4,516			3,095
Accrued expenses and other		1,846			1,636
Capitalized Research & Experimental Expenditures		19,764			—
Total deferred tax assets		119,531			87,743

Total deferred tax liabilities
Depreciable and amortizable assets		(1,329	)		(1,459	)
Right-of-use asset		(3,488	)		(2,189	)
Total deferred tax liabilities		(4,817	)		(3,648	)
Less: Valuation allowance		(114,714	)		(84,095	)
Net deferred tax assets	$	—		$	—