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, 2019

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):

	2019			2018
U.S. federal taxes (benefit) at statutory rate	$	(14,578	)	$	(6,361	)
State federal income tax benefit		(528	)		(69	)
Permanent differences		34			(160	)
Stock compensation		4,112			136
Research and development credits		(1,677	)		(608	)
Change in valuation allowance due to operations		12,756			2,758
Expiring state carryovers and other		(119	)		4,304
Total	$	—		$	—

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,
	2019			2018
Deferred tax assets
Net operating loss carryforward	$	26,554		$	19,941
Research and development credits		4,147			2,049
Deferred stock compensation		1,571			4,547
Deferred revenue		1,956			210
Lease liability		2,835			—
Other		736			404
Total deferred tax assets		37,799			27,151

Total deferred tax liabilities
Depreciable and amortizable assets		(1,340	)		(925	)
Right-of-use asset		(2,112	)		—
R&D intangible assets		(956	)		(5,591	)
Total deferred tax liabilities		(4,408	)		(6,516	)
Less: Valuation allowance		(33,391	)		(20,635	)
Net deferred tax assets	$	—		$	—

Schedule of Activity Related to Unrecognized Tax Benefits

The total amount of unrecognized benefits as of December 31, 2019 and 2018 was $0. The reconciliation of unrecognized tax benefits at the beginning and end of the year is as follows:

(in thousands)	2019		2018
Gross unrecognized tax benefits at January 1,	$	—	$	1,143
Gross increases (decreases) related to acquisitions		—		(1,143	)
Gross increases related to current year tax positions		—		—
Gross unrecognized tax benefits at December 31,	$	—	$	—