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, 2013

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):


	2013			2012			2011
U.S. federal taxes (benefit) at statutory rate	$	(9,592	)	$	(24,186	)	$	(8,722	)
State federal income tax benefit		(1,794	)		(1,160	)		(1,995	)
Unutilized (utilized) net operating losses		9,747			7,455			11,731
Stock-based compensation		486			288			223
Research and development credits		(1,416	)		—			(885	)
Tax assets not benefited		1,926			143			1,105
Nondeductible warrant expense		790			17,414			(1,482	)
Other		55			46			25

Total	$	202		$	—		$	—

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,
	2013			2012
Capitalized start-up costs	$	179		$	209
Net operating loss carryforwards		31,988			44,769
Research and development credits		5,427			3,513
Deferred stock compensation		3,327			2,115
Deferred revenue		21,151			—
Other (accruals, reserves, depreciation)		1,069			958

Total deferred tax assets		63,141			51,564
Less: Valuation allowance		(63,141	)		(51,564	)

	$	—		$	—

Schedule of Activity Related to Unrecognized Tax Benefits

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


(in thousands)	2013		2012
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