Molecular Templates, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Marketable Securities and Fair Value Measurements

Marketable Securities and Fair Value Measurements

9 Months Ended

Sep. 30, 2020

Marketable Securities and Fair Value Measurements

NOTE 5 —MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS

The following table sets forth the Company’s financial assets (cash equivalents and marketable securities) at fair value on a recurring basis (in thousands):

			Basis of Fair Value Measurements
	September 30, 2020		Level 1		Level 2		Level 3
Money market funds	$	27,080	$	27,080	$	—	$	—
Commercial paper		43,911		—		43,911		—
United States Treasury Bills		36,881		—		36,881		—
United States government-related debt securities		6,021		—		6,021		—
Corporate bonds		1,003		—		1,003		—
Total	$	114,896	$	27,080	$	87,816	$	—
Amounts included in:
Cash and cash equivalents	$	30,080
Marketable securities, current		82,816
Marketable securities, non-current		2,000
Total cash equivalents and marketable securities	$	114,896

			Basis of Fair Value Measurements
	December 31, 2019		Level 1		Level 2		Level 3
Money market funds	$	79,970	$	79,970	$	—	$	—
Commercial paper		20,436		—		20,436		—
United States Treasury Bills		16,738		—		16,738		—
United States government-related debt securities		7,010		—		7,010		—
Corporate bonds		1,351		—		1,351		—
Total	$	125,505	$	79,970	$	45,535	$	—
Amounts included in:
Cash and cash equivalents	$	84,362
Marketable securities, current		39,633
Marketable securities, non-current		1,510
Total cash equivalents and marketable securities	$	125,505

The Company invests in highly-liquid, investment-grade securities. The following is a summary of the Company’s available-for-sale securities (in thousands):

	September 30, 2020
	Cost Basis		Unrealized Gain		Unrealized Loss			Fair Value
Cash equivalents - money market funds, commercial paper and corporate bonds	$	30,080	$	—	$	—		$	30,080
Marketable securities, current - commercial paper, Treasury bills and corporate bonds		82,743		75		(2	)		82,816
Marketable securities, non-current - Treasury bills	$	2,000	$	—	$	—		$	2,000

	December 31, 2019
	Cost Basis		Unrealized Gain		Unrealized Loss		Fair Value
Cash equivalents - money market funds, commercial paper and corporate bonds	$	84,361	$	1	$	—	$	84,362
Marketable securities, current - commercial paper, Treasury bills and corporate bonds		39,616		17		—		39,633
Marketable securities, non-current - Treasury bills		1,510		—		—		1,510

The following summarizes the contractual maturities of the Company’s available-for-sale investments:

	September 30, 2020
	Cost Basis		Fair Value
Due in one year or less	$	112,823	$	112,896
Due after one year through five years		2,000		2,000
Total	$	114,823	$	114,896

	December 31, 2019
	Cost Basis		Fair Value
Due in one year or less	$	123,977	$	123,995
Due after one year through five years		1,510		1,510
Total	$	125,487	$	125,505

The Company received no proceeds and $1.3 million of proceeds from the sale of available-for-sale securities for the, nine months ended September 30, 2020 and September 30, 2019 respectively, with an immaterial realized gain for the nine months ended September 30, 2019. The basis on which the cost of the security sold was determined is specific identification.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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