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, 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 March 2011 and February 2015 offerings, subject to fair value measurements as of December 31, 2015 and 2014:

	Fair Value as of
	December 31,		Basis of Fair Value Measurements
(in thousands)	2015		Level 1		Level 2		Level 3
March 2011 warrants	$	38	$	—	$	—	$	38
February 2015 warrants		1,826		—		—		1,826
Total common stock warrants	$	1,864	$	—	$	—	$	1,864

	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

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, 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
Initial fair value of common stock warrant related to February 2015 offering	$	14,693
Exercise of common stock warrants during 2015		(17	)
Change in fair value of common stock warrants during 2015		(16,773	)
Balance at December 31, 2015	$	1,864

March 2011 Warrants

Fair Value Inputs Liabilities Quantitative Information [Line Items]

Outstanding Warrants Valuation Assumption

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

	December 31, 2015			December 31, 2014
Risk-free interest rate		0.16	%		0.67	%
Expected life (in years)		0.21			1.21
Dividend yield		—			—
Volatility		179	%		49	%
Stock price	$	0.48		$	3.18

February 2015 Warrants

Fair Value Inputs Liabilities Quantitative Information [Line Items]

Outstanding Warrants Valuation Assumption

The fair value of these warrants on December 31, 2015 and February 18, 2015 was determined using a Black Scholes valuation model and a Monte-Carlo simulation model that accounted for the estimated changes to the exercise price between the issuance date and the adjustment date, respectively. The valuation models utilized the following key level 3 inputs:

	December 31, 2015			February 18, 2015
Risk-free interest rate		1.76	%		1.52	%
Expected life (in years)		4.14			5.00
Dividend yield		—			—
Volatility		112	%		50	%
Stock price	$	0.48		$	4.26