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

Annual report pursuant to Section 13 and 15(d)

Stockholders' Equity (Deficit) (Tables)

Stockholders' Equity (Deficit) (Tables)

12 Months Ended

Dec. 31, 2014

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 October 2009 and March 2011 offerings, subject to fair value measurements as of December 31, 2014 and 2013:

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

	Fair Value as of
	December 31,		Basis of Fair Value Measurements
(in thousands)	2013		Level 1		Level 2		Level 3
October 2009 warrants	$	11,320	$	—	$	—	$	11,320
March 2011 warrants		12,101		—		—		12,101
Total common stock warrants	$	23,421	$	—	$	—	$	23,421

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, 2011	$	9,209
Exercise of common stock warrants during 2012		(27,867	)
Change in fair value of common stock warrants during 2012		51,216
Balance at December 31, 2012	$	32,558
Exercise of common stock warrants during 2013		(11,462	)
Change in fair value of common stock warrants during 2013		2,325
Balance at December 31, 2013	$	23,421
Exercise of common stock warrants during 2014		(10,116	)
Change in fair value of common stock warrants during 2014		(9,344	)
Balance at December 31, 2014	$	3,961

October 2009 Offering

Fair Value Inputs Liabilities Quantitative Information [Line Items]

Outstanding Warrants Valuation Assumption

All of the warrants related to the October 2009 offering were exercised prior to their expiration date of October 5, 2014. The fair value of these warrants on December 31, 2013 was determined using a Black Scholes valuation model with the following Level 3 inputs:

	December 31, 2014		December 31, 2013
Risk-free interest rate		—		0.13	%
Expected life (in years)		—		0.76
Dividend yield		—		—
Volatility		—		49	%
Stock price		—	$	4.67

March 2011 Offering

Fair Value Inputs Liabilities Quantitative Information [Line Items]

Outstanding Warrants Valuation Assumption

The fair value of these warrants on December 31, 2014 and 2013 was determined using a Black Scholes valuation model with the following Level 3 inputs:

	December 31, 2014			December 31, 2013
Risk-free interest rate		0.67	%		0.78	%
Expected life (in years)		1.21			2.21
Dividend yield		—			—
Volatility		49	%		88	%
Stock price	$	3.18		$	4.67

- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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