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Stock-Based Payments (Tables)
 12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Weighted-Average Assumptions to Estimate Fair Value
The following weighted-average assumptions were used to value stock options granted in each of the following years: 
 
Years Ended December 31,
 
2016
 
2015
 
2014
Expected share price volatility
38.23
%
 
41.30
%
 
42.40
%
Risk-free interest rate
1.93
%
 
1.40
%
 
1.60
%
Expected life of options (years)
6.19

 
6.80

 
6.80

Expected dividend yield
—

 
—

 
—
Summary of Stock Option Activity
The aggregate intrinsic values of options outstanding and exercisable as of December 31, 2016, 2015, and 2014 are as follows:
(In thousands)
2016
 
2015
 
2014
Aggregate intrinsic value of options outstanding (1)
$
528

 
C$
—

 
C$
2,435

Aggregate intrinsic value of options exercisable (1)
140

 
—

 
240

 
 
 
 
 
 
(1) Intrinsic value of the stock options granted before 2016 were based on the underlying Novelion common shares listed on the Toronto Stock Exchange (TSX), and thus in Canadian dollars. Stock options granted in 2016 and after are and will be based on the underlying Novelion common shares listed on NASDAQ and thus in USD.
New common shares are issued upon exercise of stock options. The intrinsic value of stock options exercised and the related cash from exercise of stock options during the years ended December 31, 2016, 2015 and 2014 are as follows:
(In thousands)
2016
 
2015
 
2014
 
Intrinsic value of stock options exercised
$
—

 
$
4,930

 
$
230

Cash from exercise of stock options
—

 
5,508

 
509

 
    
 
 
 
 
(b) Deferred Share Units
The Company’s stock option activity for the year ended December 31, 2016 is as follows:
 
 
 
 
 
 
Weighted
 
 
 
 
 
Weighted-
 
Average
 
 
 
 
 
Average
 
Remaining
 
Aggregate
 
Number of
 
Exercise Price
 
Contractual
 
Intrinsic Value (2)
 
stock options (2)
 
Per Share (2)
 
Life (years)
 
(in thousands)
Outstanding at December 31, 2015 (3)
85,630

 
C$
25.35

 
8.26
 
C$
—

Granted (1)
1,629,563

 
$
8.27

 
 
 
 
Exercised
—

 
$
—

 
 
 
$
—

Forfeited/cancelled
(600)

 
$
25.35

 
 
 
 
Outstanding at December 31, 2016
1,714,593

 
$
9.01

 
9.65
 
$
528

Vested and expected to vest at December 31, 2016
1,231,203

 
$
9.24

 
9.58
 
$
437

Exercisable at December 31, 2016
205,030

 
$
13.86

 
8.49
 
$
140

 
 
 
 
 
 
 
 
(1) The Aegerion stock options assumed by the Company in connection with the Merger are included in grants made during the year ended December 31, 2016 in the above table. The total number of assumed Aegerion stock options was 10,561 with a weighted-average exercise price of $7.70 per share.
(2) Shares and per share amounts have been retrospectively restated for all prior periods presented to reflect the one-for-five share consolidation.
(3) Intrinsic value and exercise price of the stock options granted before 2016 were based on the underlying Novelion common shares listed on the Toronto Stock Exchange (TSX), and thus in Canadian dollars. Stock options granted in 2016 and after are and will be based on the underlying Novelion common shares listed on NASDAQ and thus in USD.
Allocation of Stock-Based Compensation Expense to Statements of Operations
The impact on the Company’s results of operations of stock-based compensation expense for the years ended December 31, 2016, 2015, and 2014 is as follows:
(in thousands)
2016
 
2015
 
2014
Research and development
$
155

 
$
1,267

 
$
911

Selling, general and administrative
683

 
1,108

 
702

Total stock-based compensation expense
$
838

 
$
2,375

 
$
1,613

 
 
 
 
 
 
Summary of Deferred Shares Units Activity
DSU activity is presented below:
  
    
 
Number
of DSUs (1)

Outstanding at December 31, 2015
    
 
30,800

Granted
    
 
8,960

Redeemed
    
 
(11,360
)
Cancelled
    
 
—

Outstanding at December 31, 2016
 
 
28,400

Vested at December 31, 2016
 
 
28,400

 
 
 
 
(1) Shares and per share amounts have been retrospectively restated for all prior periods presented to reflect the one-for-five share consolidation.
RSU transactions for the years ended December 31, 2016 are as following:

 
 
Number of RSUs (3)

Outstanding at December 31, 2015
 
 
—

Granted (1) (2)
 
 
1,036,735

Redeemed
 
 
—

Cancelled
 
 
(7,854
)
Outstanding at December 31, 2016
 
 
1,028,881

 
 
 
 
(1) The weighted-average grant date fair value of the RSUs granted during the year ended December 31, 2016 was $8.82 (December 31, 2015 - zero, December 31, 2014 - CAD $20.4).
(2) The assumed Aegerion RSUs from the Merger are included in grants made during the fiscal year ended December 31, 2016 in the above table. The total number of assumed Aegerion RSUs was 140,605 with a weighted-average merger date valuation of $9.53 per share.
(3) Shares and per share amounts have been retrospectively restated for all prior periods presented to reflect the one-for-five share consolidation.
Cash payments under the DDSU Plan during the years ended December 31, 2016, 2015, and 2014 were as follows:
(in thousands)
2016
 
2015
 
2014
 
Cash payments under the DDSU plan
$
105

 
$
—

 
$
—

 
 
 
 
 
 
Summary of Restricted Stock Units Activity
DSU activity is presented below:
  
    
 
Number
of DSUs (1)

Outstanding at December 31, 2015
    
 
30,800

Granted
    
 
8,960

Redeemed
    
 
(11,360
)
Cancelled
    
 
—

Outstanding at December 31, 2016
 
 
28,400

Vested at December 31, 2016
 
 
28,400

 
 
 
 
(1) Shares and per share amounts have been retrospectively restated for all prior periods presented to reflect the one-for-five share consolidation.
RSU transactions for the years ended December 31, 2016 are as following:

 
 
Number of RSUs (3)

Outstanding at December 31, 2015
 
 
—

Granted (1) (2)
 
 
1,036,735

Redeemed
 
 
—

Cancelled
 
 
(7,854
)
Outstanding at December 31, 2016
 
 
1,028,881

 
 
 
 
(1) The weighted-average grant date fair value of the RSUs granted during the year ended December 31, 2016 was $8.82 (December 31, 2015 - zero, December 31, 2014 - CAD $20.4).
(2) The assumed Aegerion RSUs from the Merger are included in grants made during the fiscal year ended December 31, 2016 in the above table. The total number of assumed Aegerion RSUs was 140,605 with a weighted-average merger date valuation of $9.53 per share.
(3) Shares and per share amounts have been retrospectively restated for all prior periods presented to reflect the one-for-five share consolidation.
Cash payments under the DDSU Plan during the years ended December 31, 2016, 2015, and 2014 were as follows:
(in thousands)
2016
 
2015
 
2014
 
Cash payments under the DDSU plan
$
105

 
$
—

 
$
—