Net Loss Per Share

12 Months Ended

Dec. 31, 2015

10.	Net Loss Per Share

The Company applies the two-class method to calculate basic and diluted net loss per share of Common Stock. The Junior Preferred Stock are participating securities due to their dividend rights and the Senior Preferred Stock has stated dividend rates. The two-class method is an earnings allocation method under which earnings per share is calculated for Common Stock considering a participating security’s rights to undistributed earnings as if all such earnings had been distributed during the period. The Company’s participating securities are not included in the computation of net loss per share in periods of net loss because the preferred stockholders have no contractual obligation to participate in losses.

The following securities were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands):

	Years Ended December 31,
	2015		2014		2013
Senior Preferred Stock		—		—		15,336
Junior Preferred Stock		—		—		18,584
Employee stock options		13,583		14,427		11,084
RSUs outstanding		865		560		—
Warrants		7		173		173
FibroGen Europe Preferred stock		—		—		959
		14,455		15,160		46,136