Molecular Templates, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Leases (Tables)

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Changes in Carrying Amount of Company's AROs

Changes in the carrying amounts of the Company’s AROs for the years ended December 31, 2019 and 2018 are shown below (in thousands):

	2019		2018
Balance at beginning of year	$	344	$	261
Liabilities incurred in the current period		949		44
Accretion expense		72		39
Balance at end of year	$	1,365	$	344

Components of Lease Expense

The components of lease expense for the year ended December 31, 2019 were as follows (in thousands):

Operating leases
Operating lease expense	$	2,175
Variable lease expense		456
Total operating lease expense	$	2,631

Finance leases
Amortization of right-of-use asset	$	8
Interest on lease liabilities		2
Total finance lease expense	$	10

Sublease rental income	$	138

Schedule of Balance Sheets Classification of Leases

The following table summarizes the balance sheet classification of leases at December 31, 2019 (in thousands):

Operating leases
Operating lease right-of-use assets, non-current	$	9,959

Operating lease liabilities, current¹	$	1,683
Operating lease liabilities, non-current		11,682
Total operating lease liabilities	$	13,365

Finance leases
Property and equipment, at cost	$	77
Accumulated depreciation		41
Property and equipment, net	$	36

Finance lease liabilities, current¹	$	18
Finance lease liabilities, non-current²		1
Total finance lease liabilities	$	19

Included in other current liabilities.

Included other liabilities.

Schedule of Leases Information

The following table presents other information on leases as of December 31, 2019:

Weighted Average

Remaining Lease

Term

Weighted Average

Discount Rate

Operating leases

7.2

6.72

Finance leases

0.8

6.88

Schedule of Future Minimum Payments Under Operating Leases

Future minimum payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2019 (in thousands):

	Operating Leases			Finance Leases
2020	$	2,517		$	20
2021		2,589			—
2022		2,650			—
2023		1,961			—
2024		1,474
Thereafter		5,762			—
Total lease payments		16,953			20
Less:
Imputed interest		(3,588	)		(1	)
Total lease liabilities	$	13,365		$	19

Supplemental Cash Flow Information

Supplemental cash flow information related to the Company’s leases were as follows for the year ended December 31, 2019 (in thousands):


Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,278
Operating cash flows from finance leases	$	3
Financing cash flows from finance leases	$	31

Right-of-use asset obtained in exchange for lease obligations:
Operating leases	$	7,501