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

Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation (Tables)

Stock Based Compensation (Tables)

3 Months Ended

Mar. 31, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

The Company recognizes stock-based compensation in accordance with ASC 718, “Compensation—Stock Compensation.” Stock-based compensation expense, which consists of the compensation cost for employee stock options and the 2004 Purchase Plan, and the value of options issued to non-employees for services rendered, was allocated to research and development and general and administrative in the unaudited consolidated statements of operations for the three months ended March 31, 2015 and 2014 as follows (in thousands):

	Three Months Ended March 31,
	2015		2014
Amortization of stock-based compensation:
Research and development	$	817	$	671
General and administrative		604		595
	$	1,421	$	1,266

Weighted-Average Fair Value Valuation Assumptions

The fair value of employee stock options and employee purchase rights under the 2004 Purchase Plan was estimated using the following weighted-average assumptions for the three months ended March 31, 2015 and 2014:

	Three Months Ended March 31,
	2015			2014
Employee Stock Options:
Risk-free interest rate		1.70	%		1.90	%
Expected term (in years)		6.02			6.04
Dividend yield		—			—
Volatility		83	%		96	%
Weighted-average fair value of stock options granted	$	3.13		$	3.84

	Three Months Ended March 31,
	2015			2014
Employee Stock Purchase Plan (ESPP):
Risk-free interest rate		0.38	%		0.18	%
Expected term (in years)		1.25			1.23
Dividend yield		—			—
Volatility		51	%		53	%
Weighted-average fair value of ESPP purchase rights	$	1.59		$	1.79

Stock Option Activity Under Equity Incentive Plan

The following table summarizes stock option activity under the Company’s equity incentive plans:

Options	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2014		8,168,942		$	3.69		—		—
Granted		1,911,500		$	4.42		—		—
Exercised		(61,456	)	$	1.83		—		—
Forfeitures		(25,770	)	$	5.15		—		—

Outstanding at March 31, 2015		9,993,216		$	3.83		7.53	$	8,802,913

Vested and expected to vest March 31, 2015		9,878,829		$	3.83		7.51	$	8,787,468
Exercisable at March 31, 2015		5,521,561		$	3.33		6.31	$	8,010,861