On May 15, 2024 Molecular Templates, Inc. (Nasdaq: MTEM, "Molecular Templates," or "MTEM"), a clinical-stage biopharmaceutical company focused on the discovery and development of proprietary targeted biologic therapeutics, engineered toxin bodies ("ETBs"), to create novel therapies with potent differentiated mechanisms of action, reported financial results and business updates for the first quarter of 2024 (Press release, Molecular Templates, MAY 15, 2024, View Source [SID1234643358]).

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Recent Company Highlights

MTEM presented clinical data at the 2024 AACR (Free AACR Whitepaper) Annual Meeting that demonstrated MT-6402’s tolerable safety and promising efficacy profile in relapsed/refractory HNSCC patients. As monotherapy in 7 evaluable HNSCC patients (all heavily pretreated and checkpoint experienced), 2 confirmed PRs (ongoing at 10 and 20 months, respectively) and 4 SDs (two of whom showed tumor reduction) were observed. An expansion cohort in relapsed/refractory HNSCC with MT-6402 monotherapy is underway with data expected by year-end. A second monotherapy MT-6402 expansion cohort is enrolling for solid tumor patients with high PD-L1 (≥ 50%).
The MT-8421 Phase 1 dose escalation is ongoing with continued observation of unique pharmacodynamic profile (peripheral and TME Treg depletion)
In April, MTEM completed the second closing of the July 2023 financing with gross proceeds of approximately $9.5M
Eric Poma, PhD., Chief Executive and Chief Scientific Officer of MTEM, stated, "MT-6402 and MT-8421 represent novel approaches to validated immuno-oncology targets. Monotherapy activity with MT-6402 in patients that have progressed on available therapy, including checkpoint therapy, demonstrates the potential of our technology. We look forward to expanding on these promising data."

Conferences and Upcoming Meetings

MTEM will participate at the BIO International conference taking place at the San Diego Convention Center from June 3 – 6, 2024. One-on-one meetings may be scheduled by directly contacting Molecular Templates.

First Quarter 2024 Financial Results

The net income attributable to common shareholders for the first quarter of 2024 was $0.6 million, or $0.11 per basic share and $0.08 per diluted share. This compares with a net income attributable to common shareholders of $10.8 million, or $2.89 per basic and diluted share, for the same period in 2023.

Revenues for the first quarter of 2024 were $11.1 million, compared to $36.6 million for the same period in 2023.

Total research and development expenses for the first quarter of 2024 were $7.4 million, compared with $19.0 million for the same period in 2023. Total general and administrative expenses for the first quarter of 2024 were $3.7 million, compared with $5.8 million for the same period in 2023.

As of March 31, 2024, MTEM’s cash and cash equivalents totaled $6.8 million. The Company expects that its cash and cash equivalents for the quarter ended March 31, 2024, and the subsequent second closing of the July 2023 financing with gross proceeds of approximately $9.5M, will support its ongoing operations into the fourth quarter of 2024.

Molecular Templates, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)

Three Months Ended
March 31,
2024
2023
Research and development revenue $ 10,924 $ 33,627
Grant revenue 162 3,002
Total revenue 11,086 36,629
Operating expenses:
Research and development 7,405 19,042
General and administrative 3,731 5,802
Total operating expenses 11,136 24,844
Income/(loss) from operations (50 ) 11,785
Interest and other income, net 109 455
Interest and other expense, net (31 ) (1,395 )
Change in valuation of contingent value right 544 —
Net income attributable to common stockholders $ 572 $ 10,845
Net income per share attributable to common stockholders:
Basic $ 0.11 $ 2.89
Diluted $ 0.08 $ 2.89
Weighted average number of shares used in net income per share calculations:
Basic 5,374,268 3,756,711
Diluted 7,015,864 3,756,711

Molecular Templates, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

March 31,
2024
(unaudited) December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents $ 6,779 $ 11,523
Prepaid expenses 1,200 2,195
Grants revenue receivable 412 250
Other current assets 2,299 2,804
Total current assets 10,690 16,772
Operating lease right-of-use assets 8,647 9,161
Property and equipment, net 6,284 7,393
Other assets 1,498 2,057
Total assets $ 27,119 $ 35,383
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 2,681 $ 1,523
Accrued liabilities 2,748 4,279
Deferred revenue, current — 9,031
Other current liabilities 3,152 2,488
Total current liabilities 8,581 17,321
Operating lease liabilities, long term portion 9,075 9,742
Contingent value right liability 2,158 2,702
Other liabilities 1,435 1,406
Total liabilities 21,249 31,171
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.001 par value per share:
Authorized: 2,000,000 shares as of March 31, 2024 and December 31, 2023; Issued and outstanding: 250 shares as of March 31, 2024 and December 31, 2023 — —
Common stock, $0.001 par value per share:
Authorized: 150,000,000 shares as of March 31, 2024 and December 31, 2023; Issued and outstanding: 5,374,268 shares as of March 31, 2024 and December 31, 2023 5 5
Additional paid-in capital 458,185 457,099
Accumulated deficit (452,320 ) (452,892 )
Total stockholders’ equity 5,870 4,212
Total liabilities and stockholders’ equity $ 27,119 $ 35,383