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

Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity (Deficit) (Tables)

Stockholders' Equity (Deficit) (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Inputs Liabilities Quantitative Information [Line Items]

Financial Liabilities Subject to Fair Value Measurements

The following table sets forth the Company’s financial liabilities, related to warrants issued in the February 2015 and March 2011 offerings, subject to fair value measurements as of September 30, 2015 and December 31, 2014:

	Fair Value as of September 30, 2015		Basis of Fair Value Measurements
(in thousands)			Level 1		Level 2		Level 3
February 2015 warrants	$	12,965	$	—	$	—	$	12,965
March 2011 warrants		6,330		—		—		6,330
Total common stock warrants	$	19,295	$	—	$	—	$	19,295

	Fair Value as of December 31, 2014		Basis of Fair Value Measurements
(in thousands)			Level 1		Level 2		Level 3
March 2011 warrants		3,961		—		—		3,961
Total common stock warrants	$	3,961	$	—	$	—	$	3,961

Reconciliation of Warrant Liability Measured at Fair Value

The following table is a reconciliation of the warrant liability measured at fair value using level 3 inputs (in thousands):

	Warrant Liability
Balance at December 31, 2014	$	3,961
Initial fair value of common stock warrants related to February 2015 offering		14,692
Change in fair value of common stock warrants during nine months ended September 30, 2015		659
Exercise of warrants during nine months ended September 30, 2015		(17	)
Balance at September 30, 2015	$	19,295

February 2015 Warrants

Fair Value Inputs Liabilities Quantitative Information [Line Items]

Outstanding Warrants Valuation Assumption

The fair value of these warrants on September 30, 2015 and February 18, 2015 was determined using a Monte-Carlo simulation model that accounted for the estimated changes to the exercise price between the issuance date and the Adjustment Date along with the following key level 3 inputs:

	September 30, 2015			February 18, 2015
Risk-free interest rate		1.23	%		1.52	%
Expected life (in years)		4.38			5.00
Dividend yield		—			—
Volatility		50	%		50	%
Stock price	$	4.07		$	4.26

March 2011 Warrants

Fair Value Inputs Liabilities Quantitative Information [Line Items]

Outstanding Warrants Valuation Assumption

The fair value of these warrants on September 30, 2015 and December 31, 2014 was determined using a Black Scholes valuation model with the following key level 3 inputs:

	September 30, 2015			December 31, 2014
Risk-free interest rate		0.08	%		0.67	%
Expected life (in years)		0.46			1.21
Dividend yield		—			—
Volatility		53	%		49	%
Stock price	$	4.07		$	3.18