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

Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2012

Fair value measurements financial liabilities, related to warrants


	June 30, 2012			December 31, 2011
Risk-free interest rate		0.33	%		0.25	%
Expected life (in years)		1.16			1.66
Dividend yield		—			—
Volatility		111	%		84	%
Exercise price	$	1.86		$	1.86
Stock price	$	7.40		$	1.22


	June 30, 2012			December 31, 2011
Risk-free interest rate		0.41	%		0.36	%
Expected life (in years)		2.27			2.76
Dividend yield		—			—
Volatility		102	%		88	%
Exercise price	$	2.05		$	2.05
Stock price	$	7.40		$	1.22


	June 30, 2012			December 31, 2011
Risk-free interest rate		0.72	%		0.60	%
Expected life (in years)		3.71			4.21
Dividend yield		—			—
Volatility		109	%		102	%
Exercise price	$	2.46		$	2.46
Stock price	$	7.40		$	1.22

Common stock warrants valuation assumptions


(in thousands)	Fair Value as of June 30, 2012		Basis of Fair Value Measurements
			Level 1		Level 2		Level 3
August 2008 warrants	$	20,436	$	—	$	—	$	20,436
October 2009 warrants		27,911		—		—		27,911
March 2011 warrants		27,412		—		—		27,412

Total common stock warrants	$	75,759	$	—	$	—	$	75,759


(in thousands)	Fair Value as of December 31, 2011		Basis of Fair Value Measurements
			Level 1		Level 2		Level 3
August 2008 warrants	$	1,292	$	—	$	—	$	1,292
October 2009 warrants		3,738		—		—		3,738
March 2011 warrants		4,179		—		—		4,179

Total common stock warrants	$	9,209	$	—	$	—	$	9,209

Reconciliation of the warrant liability measured at Fair value


	Warrant Liability
Balance at December 31, 2011	$	9,209
Change in fair value of common stock warrants during six months ended June 30, 2012		88,539
Exercise of warrants during six months ended June 30, 2012		(21,989	)

Balance at June 30, 2012	$	75,759

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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