Net Loss Per Share

12 Months Ended

Dec. 31, 2016

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 was participating security due to its dividend rights and the Senior Preferred Stock had 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 were not included in the computation of net loss per share in periods of net loss because the preferred stockholders had 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 three years presented (in thousands):

	Years Ended December 31,
	2016		2015		2014
Employee stock options		13,660		13,583		14,427
RSUs outstanding		1,211		865		560
Warrants		4		7		173
		14,875		14,455		15,160