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

Annual report pursuant to Section 13 and 15(d)

Research and Development Agreements (Tables)

Research and Development Agreements (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Research and Development Revenues Disaggregated by Location

Research and Development revenue is attributable to regions based on the location of our collaboration partner's parent company headquarters. Research and Development revenues disaggregated by location were as follows (in thousands):

	Twelve Months Ended December 31,
	2018		2017
Japan	$	7,087	$	1,908
United States		196		500
Total Research and Development Revenue	$	7,283	$	2,408

Schedule of Contract Assets and Contract Liabilities for Performance Obligations related to Collaboration Agreements

Changes in the Company’s contract assets and liabilities under Topic 606 were as follows (in thousands):

	December 31, 2018		December 31, 2017(1)
Contract Assets
Unbilled revenue	$	—	$	—
Contract Liabilities
Deferred revenue	$	28,901	$	1,092

(1)

December 31, 2017 balances prior to the impact related to the modified retrospective adoption of ASC 606. During the year ended December 31, 2018, the Company recorded $982,000 in research and development revenue that was previously included in deferred revenue at December 31, 2017. The main reason for the increase in deferred revenue during the year ended December 31, 2018, is the Takeda Development and License Agreement entered into during September 2018, and the increased consideration under the Takeda Individual Project Agreement.

ASC 2014-09

Schedule of Impact of Adoption of New Revenue Standard

As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to accounts on the Condensed Consolidated Balance Sheet as of January 1, 2018 (in thousands):

Balance Sheet	December 31, 2017			Effect of adoption of ASC 606 (1)		January 1, 2018
Assets
Other current assets	$	19		$	54	$	73
Total assets		90,391			54		90,445
Stockholders' equity
Accumulated deficit		(64,471	)		54		(64,417	)
Total liabilities and stockholders' equity	$	90,391		$	54	$	90,445

(1)

This impact represents the amount of revenue that would have been recognized and accounted for as unbilled revenue, during the year ended December 31, 2017.