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Item 1. Financial Statements

2025-07-24 compared with 2025-04-23 · 378 added, 272 removed, 934 unchanged (41% of the section changed)

1 unchanged sentence

The following unaudited Condensed Consolidated Financial Statements are filed as part of this Report:

Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024

Condensed Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024

Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2025 and 2024

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024

Condensed Consolidated Statements of Shareholders’ Equity for the three months ended March 31, 2025 and 2024

Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024

Condensed Consolidated Statements of Shareholders’ Equity for the three and six months ended June 30, 2025 and 2024

Notes to Condensed Consolidated Financial Statements

3 unchanged sentences

Dollars, except share amounts)

March 31, December 31,

June 30, December 31,

Cash and cash equivalents $ 109,251 $ 100,592

43 unchanged sentences

Dollars, except per share amounts)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2025 2024 2025 2024

Technology sales

6 unchanged sentences

2,872 2,309 5,951 4,579

91,684 88,961 178,351 168,084

Costs and expenses applicable to revenues

Technology sales

9,352 9,222 16,575 13,989

Image enhancement and maintenance services

3 unchanged sentences

38,082 45,034 71,573 77,268

53,602 43,927 106,778 90,816

Selling, general and administrative expenses

1 unchanged sentence

Research and development

1,542 2,031 2,860 4,218

Amortization of intangible assets

1,809 1,321 3,540 2,664

Credit loss (reversal) expense, net

( 183 ) 139 ( 309 ) 174

Restructuring and other charges

5 unchanged sentences

Interest income

1,114 561 1,654 1,095

Interest expense

2 unchanged sentences

13,433 1,076 28,868 11,655

Income tax expense

Income tax (expense) recovery

( 1,198 ) 3,997 ( 8,483 ) ( 1,162 )

12,235 5,073 20,385 10,493

Net income attributable to non-controlling interests

3 unchanged sentences

Net income per share attributable to common shareholders:

Basic and diluted

$ 0.21 $ 0.07 $ 0.25 $ 0.13

$ 0.20 $ 0.07 $ 0.25 $ 0.13

Weighted average shares outstanding (in thousands):

5 unchanged sentences

(In thousands of U.S.

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2025 2024 2025 2024

$ 12,235 $ 5,073 $ 20,385 $ 10,493

Other comprehensive income (loss) before tax

Unrealized net loss from cash flow hedging instruments

Unrealized net gain (loss) from cash flow hedging instruments

2,520 ( 365 ) 1,805 ( 1,281 )

Realized net loss from cash flow hedging instruments

292 67 1,627 78

Foreign currency translation adjustments

600 ( 454 ) 1,021 ( 996 )

Defined benefit and postretirement benefit plans ( 141 ) ( 149 ) ( 346 ) ( 398 )

1 unchanged sentence

3,271 ( 901 ) 4,107 ( 2,597 )

Income tax (expense) benefit related to other comprehensive income

Income tax (expense) benefit related to other comprehensive income (loss)

( 699 ) 117 ( 808 ) 420

Other comprehensive income (loss), net of tax

1 unchanged sentence

Comprehensive income

14,807 4,289 23,684 8,316

Comprehensive income attributable to non-controlling interests

6 unchanged sentences

(In thousands of U.S.

Three Months Ended

Six Months Ended

Operating Activities

$ 20,385 $ 10,493

Adjustments to reconcile net income to cash provided by (used in) operating activities:

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation and amortization

5 unchanged sentences

Share-based and other non-cash compensation

Unrealized foreign currency exchange loss

12,767 11,753

Unrealized foreign currency exchange (gain) loss

Realized and unrealized investment gain

9 unchanged sentences

( 4,300 ) ( 19,086 )

Net cash provided by (used in) operating activities

Net cash provided by operating activities

30,181 24,070

14 unchanged sentences

Repayments of other borrowings

( 372 ) ( 311 )

Repurchase of common shares

Repurchase of common shares - IMAX China

Taxes withheld and paid on employee stock awards vested

3 unchanged sentences

Effects of exchange rate changes on cash

(Decrease) increase in cash and cash equivalents during period

( 3,523 ) 4,817

Increase in cash and cash equivalents during period

Cash and cash equivalents, beginning of period

6 unchanged sentences

(In thousands of U.S.

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2025 2024 2025 2024

Adjustments to capital stock:

4 unchanged sentences

Employee stock options exercised, net of shares withheld for employee tax obligations

100 — 1,048 —

Grant date fair value of stock options exercised

Average carrying value of repurchased and retired common shares

— ( 58 ) — ( 8,575 )

Balance, end of period

4 unchanged sentences

Amortization of share-based payment expense - restricted share units

5,818 4,622 9,563 7,546

Amortization of share-based payment expense - performance stock units

2,022 1,992 3,995 3,879

Restricted share units vested

1 unchanged sentence

Grant date fair value of stock options exercised

( 31 ) ( 324 ) —

Change in ownership interest related to IMAX China

( 85 ) ( 11 ) ( 85 ) ( 89 )

Balance, end of period

2 unchanged sentences

Balance, beginning of period

4,106 3,932 4,051 3,932

Change in statutory surplus reserve, IMAX China

Balance, end of period

4,219 3,932 4,219 3,932

Adjustments to accumulated deficit:

2 unchanged sentences

Net income attributable to common shareholders

11,255 3,583 13,582 6,857

Statutory surplus reserve deducted from retained earnings, IMAX China

( 113 ) ( 168 ) —

Common shares repurchased and retired

— ( 188 ) — ( 7,901 )

Balance, end of period

11 unchanged sentences

Net income attributable to non-controlling interests

965 1,482 6,792 3,636

Other comprehensive income (loss), net of tax

169 ( 130 ) 290 ( 284 )

Share-based compensation attributable to non-controlling interests

95 ( 65 ) 188 ( 6 )

Change in ownership interest related to IMAX China common share repurchases

( 1,369 ) ( 104 ) ( 1,369 ) ( 25 )

Balance, end of period

13 unchanged sentences

In the opinion of the Company’s management, the unaudited Condensed Consolidated Financial Statements reflect all necessary adjustments for a fair statement of interim results.

The Condensed Consolidated Balance Sheet at December 31, 2024 was derived from the Company’s audited annual Consolidated Financial Statements in the Company’s 2024 Annual Report on Form 10-K (the “2024 Form 10-K”), but does not contain all of the footnote disclosures included in the annual financial statements.

The interim results presented in the Company’s Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows are not necessarily indicative of results for a full year.

10 unchanged sentences

A change in the value of an equity method investment that is other than temporary is recognized in the Condensed Consolidated Statements of Operations.

As of March 31, 2025 and December 31, 2024, total assets and liabilities of the Company’s consolidated VIEs were as follows:

March 31, December 31,

As of June 30, 2025 and December 31, 2024, total assets and liabilities of the Company’s consolidated VIEs were as follows:

June 30, December 31,

(In thousands of U.S.

15 unchanged sentences

(ix) the ultimate revenue forecasts used to test the recoverability of film assets;

(x) the discount

rates used to determine the present value of financing receivables, variable consideration and lease liabilities, as well as to determine the fair values of the Company’s reporting units for the purpose of assessing the recoverability of goodwill;

(x) the discount rates used to determine the present value of financing receivables, variable consideration and lease liabilities, as well as to determine

the fair values of the Company’s reporting units for the purpose of assessing the recoverability of goodwill;

(xi) pension plan assumptions;

9 unchanged sentences

The amendments in ASU 2023-09 improve the transparency of income tax disclosures by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation, and (ii) income taxes to be paid disaggregated by jurisdiction.

ASU 2023-09 is effective annual periods beginning on or after December 31, 2024.

The Company is in the process of evaluating the impact of this ASU on its annual disclosures in its Consolidated Financial Statements.

ASU 2023-09 is effective for annual periods beginning on or after December 31, 2024.

The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements disclosures related to tax.

Disaggregation of Income Statement Expenses

5 unchanged sentences

The Company considers the applicability and impact of all recently issued FASB accounting standard codification updates.

ASUs that are not noted above were assessed and determined to be not applicable or not significant to the Company’s Condensed Consolidated Financial Statements for the period ended March 31, 2025.

ASUs that are not noted above were assessed and determined to be not applicable or not significant to the Company’s Condensed Consolidated Financial Statements for the period ended June 30, 2025.

The ability of the Company to collect its receivables is principally dependent on the viability and solvency of individual theater operators which is significantly influenced by consumer behavior and general economic conditions.

11 unchanged sentences

The Company develops an estimate of expected credit losses by class of receivable and customer type through a calculation that utilizes historical loss rates, which are then adjusted for specific receivables that are judged to have a higher-than-normal risk profile after considering management’s internal credit quality classifications.

Additional credit loss provisions are also recorded taking into

account macro-economic and industry risk factors.

Additional credit loss provisions are also recorded taking into account macro-economic and industry risk factors.

The write-off of any billed receivable balance requires the approval of management.

6 unchanged sentences

Accounts receivable also includes amounts due to the Company from movie studios and other content creators principally for digitally remastering films into IMAX formats, as well as for film distribution and post-production services.

The following tables summarize the activity in the allowance for credit losses related to Accounts Receivable for the three months ended March 31, 2025 and 2024:

Three Months Ended

March 31, 2025

The following tables summarize the activity in the allowance for credit losses related to Accounts Receivable for the three and six months ended June 30, 2025 and 2024:

Three Months Ended Six Months Ended

June 30, 2025 June 30, 2025

(In thousands of U.S.

Dollars) Theater

Operators Studios Other Total Theater

Operators Studios Other Total

1 unchanged sentence

$ 11,483 $ 1,236 $ 455 $ 13,174 $ 11,678 $ 1,017 $ 583 $ 13,278

Current period (reversal) provision, net

Current period provision (reversal), net

83 115 ( 26 ) 172 ( 33 ) 522 ( 154 ) 335

5 unchanged sentences

$ 11,568 $ 1,277 $ 429 $ 13,274 $ 11,568 $ 1,277 $ 429 $ 13,274

Three Months Ended

March 31, 2024

Three Months Ended Six Months Ended

June 30, 2024 June 30, 2024

(In thousands of U.S.

Dollars) Theater

Operators Studios Other Total Theater

Operators Studios Other Total

1 unchanged sentence

$ 14,247 $ 630 $ 1,079 $ 15,956 $ 14,355 $ 616 $ 1,006 $ 15,977

Current period (reversal) provision, net

Current period provision (reversal), net

53 24 1 78 ( 41 ) 38 74 71

Write-offs, net of recoveries

( 178 ) ( 3 ) — ( 181 ) ( 178 ) ( 3 ) — ( 181 )

Foreign exchange

2 unchanged sentences

$ 14,095 $ 651 $ 1,080 $ 15,826 $ 14,095 $ 651 $ 1,080 $ 15,826

For the three months ended March 31, 2025, the Company’s allowance for current expected credit losses related to Accounts Receivable decreased by $ 0.1 million.

The Company recorded $ 0.2 million in write-offs in the allowance for credit losses for the three months ended March 31, 2025.

For the three months ended March 31, 2024, the Company’s allowance for current expected credit losses related to Accounts Receivable decreased by less than $ 0.1 million.

For the three and six months ended June 30, 2025, the Company’s allowance for current expected credit losses related to Accounts Receivable increased by $ 0.1 million and decreased by less than $ 0.1 million, respectively (2024 — decreased by $ 0.1 million and $ 0.2 million, respectively).

Financing Receivables

Financing receivables are due from theater operators and consist of the Company’s net investment in sales-type leases and receivables associated with financed sales of IMAX Systems.

As of March 31, 2025 and December 31, 2024, financing receivables consisted of the following:

March 31, December 31,

As of June 30, 2025 and December 31, 2024, financing receivables consisted of the following:

June 30, December 31,

(In thousands of U.S.

29 unchanged sentences

$ 92,481 $ 90,546

As of March 31, 2025 and December 31, 2024, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s sales-type lease arrangements and financed sales receivables, as applicable, were as follows:

March 31, December 31,

As of June 30, 2025 and December 31, 2024, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s sales-type lease arrangements and financed sales receivables, as applicable, were as follows:

June 30, December 31,

(In thousands of U.S.

6 unchanged sentences

8.94 % 8.95 %

The tables below provide information on the Company’s net investment in leases by credit quality indicator as of March 31, 2025 and December 31, 2024.

The tables below provide information on the Company’s net investment in leases by credit quality indicator as of June 30, 2025 and December 31, 2024.

The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis as per the origination year of the relationship, and include both billed and unbilled amounts.

1 unchanged sentence

By Origination Year

As of March 31, 2025

As of June 30, 2025

2025 2024 2023 2022 2021 Prior Total

25 unchanged sentences

$ 3,469 $ 3,190 $ 3,483 $ 9,425 $ 3,440 $ 6,996 $ 30,003

The tables below provide information on the Company’s financed sales receivables by credit quality indicator as of March 31, 2025 and December 31, 2024.

The tables below provide information on the Company’s financed sales receivables by credit quality indicator as of June 30, 2025 and December 31, 2024.

1 unchanged sentence

By Origination Year

As of March 31, 2025

As of June 30, 2025

2025 2024 2023 2022 2021 Prior Total

25 unchanged sentences

$ 6,628 $ 8,028 $ 6,278 $ 9,734 $ 7,016 $ 63,023 $ 100,707

The following tables provide an aging analysis for the Company’s net investment in leases and financed sales receivables as of March 31, 2025 and December 31, 2024:

As of March 31, 2025

The following tables provide an aging analysis for the Company’s net investment in leases and financed sales receivables as of June 30, 2025 and December 31, 2024:

As of June 30, 2025

(In thousands of U.S.

15 unchanged sentences

Total $ 1,117 $ 1,237 $ 15,647 $ 18,001 $ 112,709 $ 130,710 $ ( 10,825 ) $ 119,885

The following tables provide information about the Company’s net investment in leases and financed sales receivables with billed amounts past due for which it continues to accrue finance income as of March 31, 2025 and December 31, 2024.

The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis and include both billed and unbilled amounts.

As of March 31, 2025

As of June 30, 2025

(In thousands of U.S.

15 unchanged sentences

Total $ 949 $ 828 $ 13,328 $ 15,105 $ 62,384 $ ( 1,092 ) $ 76,397

The following table provides information about the Company’s net investment in leases and financed sale receivables that were on nonaccrual status as of March 31, 2025 and December 31, 2024:

As of March 31, 2025

The following table provides information about the Company’s net investment in leases and financed sale receivables that were on nonaccrual status as of June 30, 2025 and December 31, 2024:

As of June 30, 2025

As of December 31, 2024

7 unchanged sentences

Total $ 31,047 $ ( 9,643 ) $ 21,404 $ 29,392 $ ( 8,931 ) $ 20,461

For the three months ended March 31, 2025 and 2024, the Company did not recognize Finance Income related to the net investment in leases on nonaccrual status.

For the three months ended March 31, 2025, the Company recognized less than $ 0.1 million (2024 — $ 0.4 million) in Finance Income related to the financed sales receivables in nonaccrual status.

The following tables summarize the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sale receivables for the three months ended March 31, 2025 and 2024:

Three Months Ended

March 31, 2025

For the three and six months ended June 30, 2025 and 2024, the Company did not recognize Finance Income related to the net investment in leases on non-accrual status.

For the three and six months ended June 30, 2025, the Company recognized less than $ 0.1 million, respectively (2024 — less than $ 0.3 million and $ 0.7 million) in Finance Income related to the financed sales receivables in nonaccrual status.

The following tables summarize the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sale receivables for the three and six months ended June 30, 2025 and 2024:

Three Months Ended Six Months Ended

June 30, 2025 June 30, 2025

(In thousands of U.S.

1 unchanged sentence

in Leases Net Financed

Sales Receivables Net Investment

in Leases Net Financed

Sales Receivables

1 unchanged sentence

$ 667 $ 9,957 $ 664 $ 10,161

Current period provision (reversal), net

Current period reversal, net

( 213 ) ( 147 ) ( 210 ) ( 346 )

Foreign exchange

1 unchanged sentence

$ 454 $ 9,819 $ 454 $ 9,819

Three Months Ended

March 31, 2024

Three Months Ended Six Months Ended

June 30, 2024 June 30, 2024

(In thousands of U.S.

1 unchanged sentence

in Leases Net Financed

Sales Receivables Net Investment

in Leases Net Financed

Sales Receivables

1 unchanged sentence

$ 451 $ 9,616 $ 453 $ 9,617

Current period provision (reversal), net

Current period (reversal) provision, net

( 1 ) 17 3 13

Foreign exchange

— ( 8 ) ( 6 ) ( 5 )

Ending balance

$ 450 $ 9,625 $ 450 $ 9,625

For the three months ended March 31, 2025, the Company’s allowance for current expected credit losses related to its net investment in leases increased by less than $ 0.1 million (2024 — decreased by less than $ 0.1 million), and financed sale receivables decreased by $ 0.2 million (2024 — decreased by less than $ 0.1 million)

For the three and six months ended June 30, 2025, the Company’s allowance for current expected credit losses related to its net investment in leases decreased by $ 0.2 million and $ 0.2 million, respectively, and financed sale receivables decreased by $ 0.1 million and $ 0.3 million, respectively.

For the three and six months ended June 30, 2024, the Company’s allowance for current expected credit losses related to its net investment in leases decreased by less than $ 0.1 million, respectively, and financed sale receivables increased by less than $ 0.1 million, respectively.

Variable Consideration Receivables

2 unchanged sentences

Variable consideration is only recognized to the extent the Company believes there is not a risk of significant revenue reversal.

The following table summarizes the activity in the Allowance for Credit Losses related to Variable Consideration Receivables for the three months ended March 31, 2025 and 2024:

Three Months Ended

The following table summarizes the activity in the Allowance for Credit Losses related to Variable Consideration Receivables for the three and six months ended June 30, 2025 and 2024:

Three Months Ended Six Months Ended

June 30, June 30,

2025 2024 2025 2024

(In thousands of U.S.

Beginning balance

Current period provision (reversal), net

$ 107 $ 636 $ 116 $ 633

Current period provision, net

Foreign exchange

Ending balance

For the three months ended March 31, 2025, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables decreased by less than $ 0.1 million (2024 — increased by less than $ 0.1 million).

Lease Arrangements

IMAX Corporation as a Lessee

The Company’s operating lease arrangements principally involve office and warehouse space.

Office equipment is generally purchased outright.

Leases with an initial term of less than 12 months are not recorded on the Condensed Consolidated Balance Sheets and the related lease expense is recognized as incurred over the lease term.

Most of the Company’s leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more.

The Company has determined that it is reasonably certain that the renewal options on its warehouse leases will be exercised based on previous history, its current understanding of future business needs, and its level of investment in leasehold improvements, among other factors.

The incremental borrowing rate used in the calculation of the Company’s lease liabilities is based on the location of each leased property.

None of the Company’s leases include options to purchase the leased property.

The depreciable lives of right-of-use assets and related leasehold improvements are limited by the expected lease term.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company has a finance lease arrangement involving equipment used to facilitate the delivery of live events to certain IMAX locations.

The lease arrangement includes an option for the Company to purchase the equipment at the end of the lease term that is reasonably certain to be exercised.

The resulting right-of-use assets are being depreciated from the lease commencement dates over the useful life of the underlying equipment.

The incremental borrowing rate used in the calculation of the lease liabilities is based on the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term.

For the three months ended March 31, 2025 and 2024, the components of lease expense recorded within Selling, General and Administrative Expenses was as follows:

Three Months Ended

(In thousands of U.S.

Operating lease cost:

Amortization of operating lease assets $ 568 $ 522

Interest on operating lease liabilities 173 175

Short-term and variable lease costs 76 78

Finance lease cost:

Amortization of finance lease assets 100 100

Interest on finance lease liabilities — 7

Total lease cost $ 917 $ 882

For the three months ended March 31, 2025 and 2024, supplemental cash and non-cash information related to leases was as follows:

Three Months Ended

(In thousands of U.S.

Cash paid for amounts included in the measurement of lease liabilities:

Operating leases $ 732 $ 723

Finance leases — 28

Supplemental disclosure of noncash leasing activities:

Right-of-use assets obtained in exchange for operating lease obligations $ 1,765 $ 260

As of March 31, 2025 and December 31, 2024, supplemental balance sheet information related to leases were as follows:

March 31, December 31,

(In thousands of U.S.

Balance Sheet Location

Operating lease right-of-use assets

Property, plant and equipment

$ 120 $ 677 $ 120 $ 677

Finance lease right-of-use assets

Property, plant and equipment

Balance Sheet Location

Operating lease liabilities

Accrued and other liabilities

$ 13,035 $ 11,861

As of March 31, 2025 and December 31, 2024, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s leases were as follows:

March 31, December 31,

Operating leases:

Weighted-average remaining lease term (years)

Weighted-average discount rate

5.83 % 5.87 %

Finance leases:

Weighted-average remaining lease term (years)

Weighted-average discount rate

6.00 % 6.00 %

As of March 31, 2025, the maturities of the Company’s operating lease liabilities are as follows:

(In thousands of U.S.

Operating Leases

2025 (nine months remaining) $ 2,470

Thereafter 325

Total lease payments

interest expense

Present value of lease liabilities

For the three and six months ended June 30, 2025, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables increased by less than $ 0.1 million, respectively (2024 — increased by less than $ 0.1 million, respectively).

Lease Arrangements

IMAX Corporation as a Lessor

17 unchanged sentences

The customer is responsible for obtaining insurance coverage for the IMAX System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX System is returned to the Company.

The following lease payments are expected to be received by the Company for its sales-type leases and joint revenue sharing arrangements in each of the remainder of 2025, next four years and thereafter following the March 31, 2025 balance sheet date:

(In thousands of U.S.

Joint Revenue Sharing Arrangements

2025 (nine months remaining) $ 2,352 $ 10

2025 (six months remaining) $ 1,619

Thereafter 16,129

$ 31,183 $ 10

As of March 31, 2025 and December 31, 2024, Inventories consisted of the following:

March 31, December 31,

As of June 30, 2025 and December 31, 2024, Inventories consisted of the following:

June 30, December 31,

(In thousands of U.S.

4 unchanged sentences

Total $ 36,699 $ 32,840

As of March 31, 2025, Inventories included finished goods of $ 1.1 million (December 31, 2024 — $ 1.8 million) for which title had passed to the customers, but the criteria for revenue recognition were not met as of the balance sheet date.

During the three months ended March 31, 2025, and 2024, the Company recorded write-downs of $ 0.1 million, and less than $ 0.1 million, in Costs and Expenses Applicable to Revenues ― Technology Sales.

As of June 30, 2025, Inventories included finished goods of $ 2.3 million (December 31, 2024 — $ 1.8 million) for which title had passed to the customers, but the criteria for revenue recognition were not met as of the balance sheet date.

During the three and six months ended June 30, 2025, the Company recorded write-downs of $ 0.1 million and $ 0.2 million, respectively (2024 — write-downs of $ 0.2 million during each such period) in Costs and Expenses Applicable to Revenues ― Technology Sales.

Revolving Credit Facility Borrowings, Net

As of March 31, 2025 and December 31, 2024, Revolving Credit Facility Borrowings, Net includes the following:

March 31, December 31,

As of June 30, 2025 and December 31, 2024, Revolving Credit Facility Borrowings, Net included the following:

June 30, December 31,

(In thousands of U.S.

6 unchanged sentences

Credit Agreement

The Company is a party to a Sixth Amended and Restated Credit Agreement, dated as of March 25, 2022 (the “Credit Agreement”), that provides for a credit facility (the “Credit Facility”) maturing March 25, 2027.

The Company was a party to a Sixth Amended and Restated Credit Agreement, dated as of March 25, 2022 (the “Credit Agreement”), that provided for a credit facility (the “Credit Facility”) maturing March 25, 2027.

The Company’s obligations under the Credit Agreement are guaranteed by certain of the Company’s subsidiaries (the “Guarantors”), and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors.

The Credit Agreement provides for a revolving borrowing capacity of $ 300.0 million, and contains an uncommitted accordion feature allowing the Company to further increase its borrowing capacity by the greater of $ 140.0 million, for a total of $ 440.0 million, or by the Company’s EBITDA (as defined in the Credit Agreement) (“Adjusted EBITDA per Credit Facility”) for the sum of the four most recently ended fiscal quarters, subject to certain conditions, depending on the mix of revolving loans and/or term loans under the incremental facility and subject to conditions set forth in the Credit Agreement.

The Credit Agreement requires that the Company maintain a maximum Senior Secured Net Leverage Ratio (as defined in the Credit Agreement) of no greater than 3.25 :1.00, on the last day of each fiscal quarter.

The Company was in compliance with this requirement as of March 31, 2025 as the Senior Secured Net Leverage Ratio was 0.05 :1.00.

As of March 31, 2025, borrowings under the Credit Facility were $ 50.0 million (December 31, 2024 — $ 37.0 million) and bore interest at Term SOFR (as defined in the Credit Agreement), plus a margin of 1.75 % per annum based on the Company’s total leverage ratio.

The effective interest rate for the three months ended March 31, 2025 was 6.18 % (2024 — 6.93 %).

As of March 31, 2025 and December 31, 2024, the Company had no letters of credit or advance payment guarantees outstanding under the Credit Facility.

As of March 31, 2025, the amount available for future borrowings under the Credit Facility was $ 250.0 million (December 31, 2024 — $ 263.0 million).

The Credit Agreement provided for a revolving borrowing capacity of $ 300.0 million, and contained an uncommitted accordion feature that allowed the Company to further increase its borrowing capacity by the greater of $ 140.0 million, for a total of $ 440.0 million, or by the Company’s EBITDA (as defined in the Credit Agreement) (“Adjusted EBITDA per Credit Facility”) for the sum of the four most recently ended fiscal quarters, subject to certain conditions, depending on the mix of revolving loans and/or term loans under the incremental facility and subject to conditions set forth in the Credit Agreement.

The Credit Agreement required that the Company maintain a maximum Senior Secured Net Leverage Ratio (as defined in the Credit Agreement) of no greater than 3.25 :1.00, on the last day of each fiscal quarter.

The Company was in compliance with this requirement as of June 30, 2025 as the Senior Secured Net Leverage Ratio was 0.00 :1.00.

As of June 30, 2025, borrowings under the Credit Facility were $ 48.0 million (December 31, 2024 — $ 37.0 million) and bore interest at Term SOFR, plus a margin of 1.75 % per annum based on the Company’s total leverage ratio.

The effective interest rate for the three and six months ended June 30, 2025 were 6.17 %, respectively.

As of June 30, 2025 and December 31, 2024, the Company had no letters of credit or advance payment guarantees outstanding under the Credit Facility.

As of June 30, 2025, the amount available for future borrowings under the Credit Facility was $ 252.0 million (December 31, 2024 — $ 263.0 million).

On July 14, 2025, the Company entered into a Seventh Amended and Restated Credit Agreement (the “New Credit Agreement”) with Wells Fargo Bank, National Association, as agent, and a syndicate of lenders party thereto.

The New Credit Agreement increases

the Company’s revolving borrowing capacity to $ 375.0 million, and also contains an uncommitted accordion feature allowing the Company to further expand its borrowing capacity to $ 515.0 million or greater, in the form of revolving loans and/or term loans under the incremental facility and subject to conditions set forth in the New Credit Agreement.

The facility under the New Credit Agreement (the “New Facility”) matures on July 14, 2030;

provided that if certain convertible debt that is permitted to be incurred under the New Credit Agreement, and is so incurred after the date of the New Credit Agreement, has a maturity date that is earlier than 91 days after the maturity date of the New Facility and the aggregate amount of any such convertible debt that remains outstanding on the date that is 91 days prior to the earliest maturity date of any such convertible debt (the “Springing Maturity Date”) exceeds $ 100.0 million, then the maturity date for the New Facility shall automatically be modified to be the Springing Maturity Date.

Loans under the New Facility will bear interest, at the Company’s option, at (i) Term SOFR, Eurocurrency Rate or Term CORRA plus a margin ranging from 1.00 % to 1.75 % per annum or (ii) the U.S.

base rate or the Canadian prime rate plus a margin ranging from 0.25 % to 1.00 % per annum, in each case depending on the Company’s total leverage ratio.

In no event will Term SOFR, Eurocurrency Rate or Term CORRA be less than 0.00% per annum.

The New Credit Agreement requires that the Company does not exceed a maximum senior secured net leverage ratio of 3.25 :1.00, which may be increased under certain circumstances and is tested on the last day of each fiscal quarter.

In addition, the New Credit Agreement contains customary affirmative and negative covenants for a transaction of this type, including covenants that limit indebtedness, liens, asset sales, investments and restricted payments, in each case, subject to negotiated exceptions and baskets.

The New Credit Agreement also contains representations, warranties and event of default provisions customary for a transaction of this type.

The Company’s obligations under the New Credit Agreement are guaranteed by certain of the Guarantors, and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors.

At closing, the Company incurred $ 52.0 million under the New Credit Agreement to repay the outstanding balance under the Credit Facility.

The Company estimates the fees incurred in connection with the New Credit Agreement to be approximately $ 2.2 million, which will be amortized on a straight-line basis over the term of the New Credit Agreement.

Foreign Exchange Facility

Within the Credit Facility, the Company is able to purchase foreign currency forward contracts and/or other swap arrangements.

As of March 31, 2025, the net unrealized loss on the Company’s outstanding foreign currency forward contracts was $ 1.4 million, representing the amount by which the notional value of these forward contracts exceeded their fair value (December 31, 2024 — net unrealized loss of $ 2.0 million).

As of March 31, 2025, the notional value of the Company’s outstanding foreign currency forward contracts was $ 53.8 million (December 31, 2024 — $ 48.4 million).

As of June 30, 2025, the net unrealized gain on the Company’s outstanding foreign currency forward contracts was $ 1.4 million, representing the amount by which the notional value of these forward contracts exceeded their fair value (December 31, 2024 — net unrealized loss of $ 2.0 million).

As of June 30, 2025, the notional value of the Company’s outstanding foreign currency forward contracts was $ 51.3 million (December 31, 2024 — $ 48.4 million).

Bank of China Facility

As of March 31, 2025, and December 31, 2024, there were no borrowings outstanding under the Bank of China Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) and outstanding letters of guarantee were RMB 0.2 million (less than $ 0.1 million).

As of March 31, 2025, the amount available for future borrowings under the Bank of China Facility was RMB 190.0 million ($ 26.5 million) and the amount available for letters of guarantee was RMB 9.8 million ($ 1.4 million).

As of June 30, 2025, and December 31, 2024, there were no borrowings outstanding under the Bank of China Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) and outstanding letters of guarantee were RMB 0.2 million (less than $ 0.1 million).

As of June 30, 2025, the amount available for future borrowings under the Bank of China Facility was RMB 190.0 million ($ 26.5 million) and the amount available for letters of guarantee was RMB 9.8 million ($ 1.4 million).

The amount available for future borrowings under the Bank of China Facility is not subject to a standby fee.

The effective interest rate for the three months ended March 31, 2025 was 0 % (2024 — 0 %).

There were no amounts drawn under the Bank of China Facility during the three months ended March 31, 2025.

The Bank of China Facility has been renewed to March 20, 2026.

The effective interest rate for the three and six months ended June 30, 2025 was 0 % for each such period (2024 — 0 % for each such period).There were no amounts drawn under the Bank of China Facility for the three and six months ended June 30, 2025.

HSBC China Facility

As of March 31, 2025, and December 31, 2024, no borrowings were outstanding under the HSBC China Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K).

As of March 31, 2025, and December 31, 2024 the amount available for future borrowings under the HSBC China Facility was RMB 200.0 million ($ 27.9 million).

The effective interest rate for the three months ended March 31, 2025 was 0 % (December 2024 — 0 %).

The NBC Facility has been renewed to September 20, 2025.

The Company did not have any letters of credit or advance payment guarantees outstanding as of March 31, 2025 and December 31, 2024 under the NBC Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K).

In June 2022, IMAX Shanghai entered into an unsecured revolving facility for up to RMB 200.0 million ($ 27.9 million) with HSBC Bank (China) Company Limited, Shanghai Branch to fund ongoing working capital requirements (the “HSBC China Facility”).

As of June 30, 2025 and December 31, 2024, no borrowings were outstanding under the HSBC China Facility.

As of June 30, 2025, the amount available for future borrowings under the HSBC China Facility was RMB 200.0 million ($ 27.9 million).

The effective interest rate for the three and six months ended June 30, 2025 was 0 % for each such period (2024 — 0 %).

The NBC Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) has been renewed to September 20, 2025.

The Company did not have any letters of credit or advance payment guarantees outstanding as of June 30, 2025 and December 31, 2024 under the NBC Facility.

Convertible Notes and Other Borrowings, Net

As of March 31, 2025 and December 31, 2024, Convertible Notes and Other Borrowings, Net included the following:

March 31, December 31,

As of June 30, 2025 and December 31, 2024, Convertible Notes and Other Borrowings, Net included the following:

June 30, December 31,

(In thousands of U.S.

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Federal Economic Development Loan

As of March 31, 2025, the Federal Economic Development Loan (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) had a carrying value of $ 1.6 million, net of unaccreted interest benefit and is recorded within Convertible Notes and Other Borrowings, Net on the Company’s Condensed Consolidated Balance Sheets.

As of June 30, 2025, the Federal Economic Development Loan (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) had a carrying value of $ 1.6 million, net of unaccreted interest benefit and is recorded within Convertible Notes and Other Borrowings, Net on the Company’s Condensed Consolidated Balance Sheets.

Commitments, Contingencies and Guarantees

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The Company expenses legal costs relating to its lawsuits, claims, and proceedings as incurred.

(i) In January 2004, the Company and IMAX Theatre Services Ltd., a subsidiary of the Company, commenced an arbitration seeking damages before the International Court of Arbitration of the International Chamber of Commerce (the “ICC”) with respect to the breach by Electronic Media Limited (“EML”) of its December 2000 agreement with the Company.

In January 2004, the Company and IMAX Theatre Services Ltd., a subsidiary of the Company, commenced an arbitration seeking damages before the International Court of Arbitration of the International Chamber of Commerce (the “ICC”) with respect to the breach by Electronic Media Limited (“EML”) of its December 2000 agreement with the Company.

In June 2004, the Company commenced a related arbitration before the ICC against EML’s affiliate, E-City Entertainment (I) PVT Limited (“E-City”).

11 unchanged sentences

Product Warranties

The Company’s accrual for product warranties, which is recorded within Accrued and Other Liabilities on the Condensed Consolidated Balance Sheets, was $ 0.1 million as of March 31, 2025 and December 31, 2024, respectively.

The Company’s accrual for product warranties, which is recorded within Accrued and Other Liabilities on the Condensed Consolidated Balance Sheets, was $ nil as of June 30, 2025 and $ 0.1 million as of December 31, 2024.

Director and Officer Indemnifications

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The Company has purchased directors’ and officers’ liability insurance.

No amount has been accrued on the Company’s Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024, with respect to this indemnity.

No amount has been accrued on the Company’s Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, with respect to this indemnity.

Other Indemnification Agreements

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Selling Expenses

The following table summarizes the Company’s selling expenses, including sales commissions and marketing and other, which are recognized within Costs and Expenses Applicable to Revenues in the Condensed Consolidated Statements of Operations, for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,

Three Months Ended June 30,

(In thousands of U.S.

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Direct advertising and marketing costs for each IMAX System are expensed as incurred.

Six Months Ended June 30,

(In thousands of U.S.

Commissions Marketing

and Other Sales

Technology sales (1)

$ 398 $ 127 $ 426 $ 346

Image enhancement and maintenance services (2)

— 5,850 — 6,676

Technology rentals (3)

257 1,000 250 1,000

Total $ 655 $ 6,977 $ 676 $ 8,022

(1) Sales commissions paid prior to the recognition of the related revenue are deferred and recognized upon the client acceptance of the IMAX System.

Direct advertising and marketing costs for each IMAX System are expensed as incurred.

(2) Film exploitation costs, including advertising and marketing costs, are expensed as incurred.

(3) Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments.

Direct advertising and marketing costs for each IMAX System are expensed as incurred.

Foreign Exchange

Included in Selling, General and Administrative Expenses for the three months ended March 31, 2025 are foreign currency net loss of $ 0.4 million (2024 — net loss of $ 0.3 million), resulting from changes in exchange rates related to foreign currency denominated monetary assets and liabilities.

(Refer to “Financial Instruments — Foreign Exchange Risk Management ” in Note 15 for additional information.)

Included in Selling, General and Administrative Expenses for the three and six months ended June 30, 2025 is a foreign currency net gain of $ 0.2 million and loss of $ 0.2 million, respectively (2024 — net losses of $ 0.2 million and $ 0.5 million, respectively) resulting from changes in exchange rates related to foreign currency denominated monetary assets and liabilities.

See Note 15 for additional information.

Government Assistance

For the three and six months ended June 30, 2025, the Company recognized $ 3.8 million in benefits received from the Internal Revenue Service under the Employee Retention Credit (“ERC”) program which provides for a refundable tax credit for eligible businesses that had employees and were affected during the COVID-19 pandemic.

The ERC has been recognized as a reduction to Selling, General and Administrative Expenses ($ 2.5 million) and Costs and Expenses Applicable to Revenues ($ 1.3 million).

Collaborative Arrangements

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Revenue attributable to transactions arising between the Company and its customers under JRSAs are recorded within Revenues — Technology Sales (for hybrid JRSAs) and Revenues — Technology Rentals (for traditional JRSAs).

For the three months ended March 31, 2025, such revenues totaled $ 19.2 million (2024 — $ 19.3 million).

For the three and six months ended June 30, 2025, such revenues totaled $ 18.7 million and $ 37.9 million, respectively (2024 — $ 13.3 million and $ 32.5 million, respectively).

IMAX Film Remastering and Distribution

2 unchanged sentences

Revenue attributable to transactions arising between the Company and its customers under IMAX Film Remastering and distribution arrangements are included in Revenues – Image Enhancement and Maintenance Services.

For the three months ended March 31, 2025, such revenues totaled $ 31.8 million (2024 — $ 29.7 million).

(Refer to “Revenue from Contracts with Customers — Disaggregated Information About Revenue ” in Note 12 for a disaggregated presentation of the Company’s revenues.)

For the three and six months ended June 30, 2025, such revenues totaled $ 28.7 million and $ 60.4 million, respectively (2024 — $ 21.3 million and $ 51.0 million, respectively).

See Note 12 for a disaggregated presentation of the Company’s revenues.

Co-Produced Film Arrangements

The accounting policies relating to co-produced film arrangements are disclosed in Notes 2 and 3 of the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K.

As of March 31, 2025, the Company is party to one co-produced film arrangement, which represented the VIE total assets balance of $ 1.6 million and liabilities balance of $ 0.2 million, and four other co-produced film arrangements, the terms of which are similar.

For the three months ended March 31, 2025, an expense of $ 0.1 million (2024 — $ 0.1 million) attributable to transactions between the Company and other parties involved in the production of the films has been included in Costs and Expenses Applicable to Revenues ― Image Enhancement and Maintenance Services.

As of June 30, 2025, the Company is party to one co-produced film arrangement, which represented the VIE total assets balance of $ 1.8 million and liabilities balance of $ 0.4 million, and four other co-produced film arrangements, the terms of which are similar.

For the three and six months ended June 30, 2025, an expense of $ 0.1 million and $ 0.2 million, respectively (2024 — $ 2.9 million and $ 3.0 million, respectively) attributable to transactions between the Company and other parties involved in the production of the films have been included in Costs and Expenses Applicable to Revenues ― Image Enhancement and Maintenance Services.

Condensed Consolidated Statements of Cash Flows – Supplemental Information

Changes in other operating assets and liabilities

Three Months Ended

Six Months Ended

(In thousands of U.S.

Decrease (increase) in:

(Increase) decrease in:

Financing receivables

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Depreciation and amortization

Three Months Ended

Six Months Ended

(In thousands of U.S.

2 unchanged sentences

Equipment supporting JRSAs

11,378 11,495

Other property, plant and equipment

1 unchanged sentence

Total $ 30,809 $ 34,002

Three Months Ended

Six Months Ended

(In thousands of U.S.

4 unchanged sentences

Other intangible assets

$ 1,047 $ 2,399

Significant non-cash investing activities

Three Months Ended

Six Months Ended

(In thousands of U.S.

Net increase (decrease) in accruals related to:

Net decrease in accruals related to:

Investment in equipment supporting JRSAs

3 unchanged sentences

$ ( 125 ) $ ( 222 )

(1) Refer to Note 4 for supplemental disclosure of non-cash leasing activities.

Income Tax Expense

For the three months ended March 31, 2025, the Company recorded an income tax expense of $ 7.3 million (2024 — income tax expense of $ 5.2 million).

The Company’s effective tax rate of 47.2 % for the three months ended March 31, 2025 reflects the geographic allocation of income earned in taxing jurisdictions and also reflects an increase in the valuation allowance, withholding taxes and a tax benefit related to share-based compensation.

The Company’s effective tax rate of 48.8 % for the three months ended March 31, 2024 reflects the geographic allocation of income earned in taxing jurisdictions and also reflects an increase in the valuation allowance, withholding taxes and a tax expense related to share-based compensation.

As of March 31, 2025, the Company’s Condensed Consolidated Balance Sheets included net deferred income tax assets of $ 14.4 million (December 31, 2024 — $ 14.5 million).

Income Tax (Expense) Benefit

For the three months ended June 30, 2025, the Company recorded an income tax expense of $ 1.2 million (2024 — tax benefit of $ 4.0 million).

The Company’s effective tax rate of 8.9 % for the three months ended June 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and reflects a decrease in the valuation allowance.

For the six months ended June 30, 2025, the Company recorded an income tax expense of $ 8.5 million (2024 — tax expense of $ 1.2 million).

The Company’s effective tax rate of 29.4 % for the six months ended June 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and also reflects an increase in the valuation allowance, withholding taxes and a tax benefit related to share-based compensation.

On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was signed into law, introducing significant U.S.

Key provisions that may impact IMAX are Interest Deductibility (IRC §163(j)), Bonus Depreciation and Section §179.

The Company is currently evaluating the Act’s potential impact on its Consolidated Financial Statements and will update its assessment as further guidance becomes available.

As of June 30, 2025, the Company’s Condensed Consolidated Balance Sheets included net deferred income tax assets of $ 13.6 million (December 31, 2024 — $ 14.5 million).

Realization of net deferred tax assets is dependent upon generation of sufficient taxable income in future years to obtain benefit from the reversal of temporary differences, net operating loss carryforwards and tax credit carryforwards.

The amount of net deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change.

As of March 31, 2025, the Company’s Condensed Consolidated Balance Sheets also included deferred tax liabilities of $ 12.5 million (December 31, 2024 — $ 12.5 million) primarily related to foreign withholding taxes associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada.

As of June 30, 2025, the Company’s Condensed Consolidated Balance Sheets also included deferred tax liabilities of $ 12.5 million (December 31, 2024 — $ 12.5 million) primarily related to foreign withholding taxes associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada.

Capital Stock and Reserves

Share-Based Compensation

For the three months ended March 31, 2025, share-based compensation expense totaled $ 5.2 million (2024 — $ 4.7 million) and is reflected in the following accounts in the Condensed Consolidated Statements of Operations:

Three Months Ended

For the three and six months ended June 30, 2025, share-based compensation expense totaled $ 7.4 million and $ 12.6 million, respectively (2024 — $ 6.9 million and $ 11.5 million, respectively) and is reflected in the following accounts in the Condensed Consolidated Statements of Operations:

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands of U.S.

2025 2024 2025 2024

Costs and expenses applicable to revenues

$ 305 $ 247 $ 596 $ 475

Selling, general and administrative expenses

6,862 6,506 11,582 10,843

Research and development

190 110 384 221

Total $ 7,357 $ 6,863 $ 12,562 $ 11,539

The following table summarizes the Company’s share-based compensation expense by each award type:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands of U.S.

2025 2024 2025 2024

Restricted Share Units

$ 4,519 $ 4,133 $ 7,386 $ 6,875

Performance Stock Units

1,969 1,966 3,901 3,818

IMAX China Long Term Incentive Plan Restricted Share Units

734 695 1,047 722

IMAX China Long Term Incentive Plan Performance Stock Units

135 69 228 124

For the three months ended March 31, 2025, the Company’s share-based compensation expense included restricted share units to non-employees of less than $ 0.1 million that were granted and have not yet vested (2024 — less than $ 0.1 million, which vested immediately upon granting).

$ 7,357 $ 6,863 $ 12,562 $ 11,539

For the three and six months ended June 30, 2025, the Company’s share-based compensation expense included restricted share units to non-employees of $ 1.7 million for each such period, of which $ 1.7 million granted during the six month period vested immediately (2024 — $ 1.7 million for each such period).

Stock Option Summary

The following table summarizes the activity under the Company’s Stock Option Plan (“SOP”) for the three months ended March 31, 2025 and 2024:

The following table summarizes the activity under the Company’s Stock Option Plan (“SOP”) for the six months ended June 30, 2025 and 2024:

Number of Shares Weighted Average Exercise

5 unchanged sentences

Expired ( 470,582 ) ( 607,114 ) 29.53 28.15

Cancelled — ( 1,768 ) — 24.38

Stock options outstanding, end of period

2 unchanged sentences

1,950,169 2,720,540 25.60 25.80

Stock options are no longer granted under the Company’s previously approved SOP.

IMAX LTIP Restricted Share Units (“RSU”) Summary

The following table summarizes the activity in respect of RSUs issued under the IMAX Corporation Second Amended and Restated Long-Term Incentive Plan (as may be amended, “IMAX LTIP”) for the three months ended March 31, 2025 and 2024:

Number of Shares Weighted Average Grant Date

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The Company grants two types of PSU awards, one which vests based on a combination of employee service and the achievement of certain Adjusted EBITDA targets and one which vests based on a combination of employee service and the achievement of total shareholder return (“TSR”) targets.

The achievement of these targets are assessed over a three-year performance period.

At the conclusion of the three-year performance period, the number of PSUs that ultimately vest can range from 0 % to a maximum vesting opportunity of 175 % of the initial Adjusted EBITDA PSU award or 150 % of the initial TSR PSU award, depending upon actual performance versus the established Adjusted EBITDA and TSR targets, respectively.

The grant date fair value of PSUs with Adjusted EBITDA targets is equal to the closing price of the Company’s common shares on the date of grant or the average closing price of the Company’s common shares for five days prior to the date of grant.

The grant date fair value of PSUs with TSR targets is determined on the grant date using a Monte Carlo Model.

The compensation expense attributable to each type of PSU is recognized on a straight-line basis over the requisite service period.

The fair value determined by the Monte Carlo Model is affected by the Company’s share price, as well as assumptions regarding a number of complex and subjective variables.

These variables include, but are not limited to, market conditions as of the grant date, the Company’s expected share price volatility over the term of the awards, and other relevant data.

The compensation expense is fixed on the date of grant based on the fair value of the PSUs granted.

The amount and timing of compensation expense recognized for PSUs with Adjusted EBITDA targets is dependent upon management’s assessment of the likelihood of achieving these targets.

If, as a result of management’s assessment, it is projected that a greater number of PSUs will vest than previously anticipated, a life-to-date adjustment to increase compensation expense is recorded in the period that such determination is made.

Conversely, if, as a result of management’s assessment, it is projected that a lower number of PSUs will vest than previously anticipated, a life-to-date adjustment to decrease compensation expense is recorded in the period that such determination is made.

The expense recognized in the three months ended March 31, 2025 and 2024 includes adjustments reflecting management’s estimate of the number of Adjusted EBITDA PSUs expected to vest.

The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the three months ended March 31, 2025 and 2024:

The achievement of these targets are assessed over a three-year performance period, with vesting ranging from 0 % to 175 % of the initial Adjusted EBITDA PSU award or 150 % of the initial TSR PSU award, depending upon actual performance.

The grant date fair value for Adjusted EBITDA PSUs is equal to the closing price of the Company’s common shares on the date of grant or the average closing price of the Company’s common shares for five days prior to the date of grant.

The grant date fair value for TSR PSUs is determined using a Monte Carlo Model, influenced by share price and various assumptions, such as, market conditions and expected share price volatility over the term of the awards.

The compensation expense attributable for each type of PSUs is recognized on a straight-line basis over the requisite service period.

If, as a result of management’s assessment, it is projected that a greater or lesser number of PSUs will vest than previously anticipated, a life-to-date adjustment to increase or decrease compensation expense is recorded in the period that such determination is made, respectively.

The expense recognized in the six months ended June 30, 2025 and 2024 includes adjustments reflecting management’s estimate of the number of Adjusted EBITDA PSUs expected to vest.

The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the six months ended June 30, 2025 and 2024:

Number of Awards Weighted Average Grant Date

9 unchanged sentences

1,161,050 1,100,967 20.12 18.32

(1) For the three months ended March 31, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $ 19.53 , as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175 % and TSR targets vested at 123.5 %, which reflects actual performance versus established targets.

As of March 31, 2025, the maximum number of common shares that may be issued with respect to PSUs outstanding was 1,983,624 , assuming full achievement of the Adjusted EBITDA and TSR targets.

(1) For the six months ended June 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $ 19.53 , as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175 % on account of full achievement of the targets and TSR targets vested at 123.5 %, which reflects actual performance.

As of June 30, 2025, the maximum number of common shares that may be issued with respect to PSUs outstanding was 1,950,452 , assuming full achievement of the Adjusted EBITDA and TSR targets.

Issuer Purchases of Equity Securities

On June 12, 2017, the Company announced that its Board of Directors approved a $ 200.0 million share repurchase program for its common shares that would have expired on June 30, 2020, which was subsequently extended through June 30, 2026 and increased to a total share repurchase authority of $ 400.0 million.

As of March 31, 2025, the Company had $ 150.7 million available under the program.

In June 2025, the Company’s Board of Directors approved a 12 -month extension to its share repurchase program through June 30, 2027 and an increase of $ 100.0 million in the Company’s share repurchase program authorization.

With the increase of $ 100 million, the Company’s total share repurchase authority is $ 500.0 million under the current share repurchase program.

As of June 30, 2025, the Company had $ 250.7 million available under the program.

The repurchases may be made either in the open market or through private transactions, including repurchases made pursuant to a plan intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements, and other relevant factors.

The Company has no obligation to repurchase shares and the share repurchase program may be suspended or discontinued by the Company at any time.

During the three months ended March 31, 2025, the Company did not repurchase any common shares.

During the three months ended March 31, 2024, the Company repurchased 1,158,724 common shares at an average price of $ 13.99 per share, for a total of $ 16.2 million, excluding commissions.

The repurchases for the three months ended March 31, 2024 excludes repurchases of 108,393 shares for a total of $ 1.6 million with trade dates in December 2023.

During the three months ended March 31, 2025 and 2024, there were no shares purchased in the administration of employee share based plans.

As of March 31, 2025 and December 31, 2024, the IMAX LTIP trustee did not hold any shares.

During the three and six months ended June 30, 2025, the Company did no t have any repurchases of common shares.

During the three and six months ended June 30, 2024, the Company repurchased 7,646 and 1,166,370 common shares, respectively, at an average price of $ 14.98 and $ 13.99 per share, respectively, for a total of $ 0.1 million and $ 16.3 million, respectively, excluding commissions.

During the six months ended June 30, 2025 and 2024, there were no shares purchases in the administration of employee share-based plans.

As of June 30, 2025 and December 31, 2024, the IMAX LTIP trustee did not hold any shares.

Any shares held with the trustee are recorded at cost and are reported as a reduction against Capital Stock on the Company’s Condensed Consolidated Balance Sheets.

1 unchanged sentence

This program expired on the date of the 2025 Annual General Meeting of IMAX China on June 12, 2025.

During the 2024 Annual General Meeting, shareholders approved the repurchase of shares of IMAX China not to exceed 10 % of the total number of shares as of June 7, 2024 ( 34,000,845 shares).

During the 2025 Annual General Meeting, shareholders granted its Board of Directors a general mandate authorizing the Board of Directors of IMAX China, subject to applicable laws, to repurchase shares of IMAX China not to exceed 10 % of the total number of shares as of June 12, 2025 ( 33,919,122 shares).

This program will be valid until the 2026 Annual General Meeting of IMAX China.

1 unchanged sentence

IMAX China has no obligation to repurchase its shares and the share repurchase program may be suspended or discontinued by IMAX China at any time.

During the three months ended March 31, 2025 and 2024, IMAX China did not repurchase any of its common shares.

During the three and six months ended June 30, 2025, IMAX China repurchased 1,495,900 common shares, at an average price of HKD 7.56 per share ($ 0.96 per share) for a total of HKD $ 11.3 million ($ 1.4 million), excluding commissions.

During the three and six months ended June 30, 2024, IMAX China repurchased 119,000 common shares, at an average price of HKD 7.43 per share ($ 0.95 per share) for a total of HKD 0.9 million ($ 0.1 million).

The change in the non-controlling interest attributable to IMAX China as a result of common shares repurchased is recorded as a reduction to Non-Controlling Interests in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Shareholders’ Equity.

The difference between the consideration paid and the ownership interest obtained as a result of IMAX China share repurchases is recorded within Other Equity in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Shareholders’ Equity.

Basic and Diluted Weighted Average Shares Outstanding

The following table reconciles the denominator of the basic and diluted weighted average share computations:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands) 2025 2024 2025 2024

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Weighted average number of shares issued (repurchased), net

9 8 502 ( 692 )

Weighted average number of shares outstanding - basic

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Weighted average effect of potential common shares, if dilutive

1,410 795 1,616 818

Weighted average number of shares outstanding - diluted

55,161 53,428 55,064 53,386

For the three months ended March 31, 2025, the calculation of diluted weighted average shares outstanding excludes 971,374 shares (2024 — 3,824,411 shares) that are issuable upon the vesting or exercise of share-based compensation including:

(i) nil RSUs (2024 — 729,150 RSUs), (ii) 128,333 PSUs (2024 — 372,953 PSUs) and (iii) 843,041 stock options (2024 — 2,722,308 stock options), as the effect would be anti-dilutive.

The calculation of diluted weighted average shares outstanding for the three months ended March 31, 2025 and 2024 also excludes any shares potentially issuable upon the conversion of the Convertible Notes as the average market price of the Company’s common shares during the period of time they were outstanding was less than the conversion price of the Convertible Notes.

For the three and six months ended June 30, 2025, the calculation of diluted weighted average shares outstanding excludes 929,825 and 968,984 shares, respectively (2024 — 3,118,725 and 3,716,606 shares, respectively) that are issuable upon the vesting or exercise of share-based compensation including:

(i) $ nil RSUs (2024 — 355,337 and 664,720 RSUs, respectively), (ii) 86,784 and 125,943

PSUs, respectively (2024 — 42,848 and 331,346 PSUs, respectively) and (iii) 843,041 stock options, respectively (2024 — 2,720,540 stock options, respectively), as the effect would be anti-dilutive.

The calculation of diluted weighted average shares outstanding for the three and six months ended June 30, 2025 and 2024 also excludes any shares potentially issuable upon the conversion of the Convertible Notes as the average market price of the Company’s common shares during the period of time they were outstanding was less than the conversion price of the Convertible Notes.

Statutory Surplus Reserve

Pursuant to the corporate law of the PRC, entities registered in the PRC are required to maintain certain statutory reserves, which are appropriated from after-tax profits (after offsetting accumulated losses from prior years), as reported in their respective statutory

financial statements, before the declaration or payment of dividends to equity holders.

All statutory reserves are created for specific purposes.

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Disaggregated Information About Revenue

The following tables summarize the Company’s Revenues by reportable segment and revenue stream type for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31, 2025

The following tables summarize the Company’s Revenues by reportable segment and revenue stream type for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, 2025

(In thousands of U.S.

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Total $ 18,842 $ 50,854 $ 19,116 $ 2,872 $ 91,684

Three Months Ended March 31, 2024

Six Months Ended June 30, 2025

(In thousands of U.S.

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Total $ 32,366 $ 101,607 $ 38,427 $ 5,951 $ 178,351

For the three months ended March 31, 2025, revenues earned from Technology Sales included variable consideration of $ 3.2 million (2024 — $ 1.7 million).

For the three months ended March 31, 2025, revenues earned from leasing arrangements totaled $ 19.4 million (2024 — $ 19.3 million), including $ 19.3 million in Revenues ― Technology Rentals (2024 — $ 18.6 million), and less than $ 0.1 million in Revenues ― Technology Sales (2024 — $ 0.7 million).

Three Months Ended June 30, 2024

(In thousands of U.S.

Dollars) Technology Sales

Image Enhancement and Maintenance Services

Technology Rentals

Finance Income

Content Solutions Segment

Film Remastering and Distribution

$ — $ 21,304 $ — $ — $ 21,304

Other Content Solutions

— 13,644 128 — 13,772

— 34,948 128 — 35,076

Technology Products and Services Segment

19,443 — — — 19,443

System Rentals

— — 13,915 — 13,915

Maintenance — 15,231 — — 15,231

Finance Income

— — — 2,309 2,309

19,443 15,231 13,915 2,309 50,898

Sub-total for reportable segments

19,443 50,179 14,043 2,309 85,974

977 2,010 — — 2,987

Total $ 20,420 $ 52,189 $ 14,043 $ 2,309 $ 88,961

Six Months Ended June 30, 2024

(In thousands of U.S.

Dollars) Technology Sales

Image Enhancement and Maintenance Services

Technology Rentals

Finance Income

Content Solutions Segment

Film Remastering and Distribution $ — $ 51,025 $ — $ — $ 51,025

Other Content Solutions — 17,936 128 — 18,064

— 68,961 128 — 69,089

Technology Products and Services Segment

System Sales 26,561 — — — 26,561

System Rentals — — 32,516 — 32,516

Maintenance — 30,392 — — 30,392

Finance Income — — — 4,579 4,579

26,561 30,392 32,516 4,579 94,048

Sub-total for reportable segments 26,561 99,353 32,644 4,579 163,137

All Other 1,763 3,184 — — 4,947

Total $ 28,324 $ 102,537 $ 32,644 $ 4,579 $ 168,084

For the three and six months ended June 30, 2025, revenues earned from Technology Sales include variable consideration of $ 3.1 million and $ 6.4 million, respectively (2024 — $ 7.7 million and $ 9.4 million, respectively).

For the three and six months ended June 30, 2025, revenues earned from leasing arrangements total $ 19.1 million and $ 38.5 million, respectively (2024 — $ 13.3 million and $ 32.5 million, respectively), including $ 19.1 million and $ 38.4 million, respectively, in Revenues ― Technology Rentals (2024 — $ 13.9 million and $ 32.5 million, respectively), and $ 0.1 million in the three and six months ended June 30, 2025, respectively, in Revenues ― Technology Sales (2024 — a reversal of $ 0.7 million and $ nil , respectively).

Deferred Revenue

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Payments, upon renewal each year, are either prepaid or made in arrears and can vary in frequency from monthly to annually.

As of March 31, 2025, $ 24.3 million of consideration has been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2024 — $ 26.5 million).

During the three months ended March 31, 2025, $ 9.0 million of revenue was recognized from the $ 52.7 million balance of deferred revenue as of December 31, 2024.

During the three months ended March 31, 2024, $ 12.1 million of revenue was recognized from the $ 67.1 million balance of deferred revenue as of December 31, 2023.

As of June 30, 2025, $ 21.6 million of consideration

has been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2024 — $ 26.5 million).

During the three and six months ended June 30, 2025, $ 10.8 million and $ 19.8 million of revenue, respectively, was recognized from the $ 52.7 million balance of deferred revenue as of December 31, 2024.

During the three and six months ended June 30, 2024, $ 12.1 million and $ 24.2 million of revenue, respectively, was recognized from the $ 67.1 million balance of deferred revenue as of December 31, 2023.

Segment Reporting

The Company’s Chief Executive Officer (“CEO”) is its CODM, as such term is defined under U.S.

The Company’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), as such term is defined under U.S.

The CODM assesses segment performance based on segment revenues and segment gross margins.

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Segment Financial Information

The following table presents the Company’s revenue and gross margin by reportable segment for the three months ended March 31, 2025 and 2024:

The following table presents the Company’s revenue and gross margin by reportable segment for the three months ended June 30, 2025 and 2024:

(In thousands of U.S.

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Total $ 91,684 $ 88,961 $ 53,602 $ 43,927

(1) The Company’s largest customer represented 15 % of total Revenues for the three months ended March 31, 2025 (2024 — 10 %).

No single customer comprised more than 10% of the Company’s total Accounts Receivable as of March 31, 2025 or December 31, 2024.

(1) The Company’s largest customer represents 12 % of total Revenues for the three months ended June 30, 2025 (2024 — 14 %) and one single customer accounted for more than 10 % of the Company’s total Accounts Receivable balance as of June 30, 2025.

No single customer accounted for more than 10% of the Company’s total Accounts Receivable balance as of December 31, 2024.

The following table presents the Company’s revenue and gross margin by reportable segment for the six months ended June 30, 2025 and 2024:

(In thousands of U.S.

2025 2024 2025 2024

Content Solutions

$ 68,214 $ 69,089 $ 45,985 $ 38,237

Technology Products and Services

106,232 94,048 59,264 49,367

Sub-total for reportable segments

174,446 163,137 105,249 87,604

3,905 4,947 1,529 3,212

Total $ 178,351 $ 168,084 $ 106,778 $ 90,816

(1) The Company’s largest customer represented 10 % of total Revenues for the six months ended June 30, 2025 (2024 — 13 %).

One single customer comprised of more than 10 % of the Company’s total Accounts Receivable as of June 30, 2025.

No single customer comprised of more than 10% of the Company’s total Accounts Receivable as of December 31, 2024.

The following table presents the Costs and Expenses Applicable to Revenues for the Content Solutions segment that is made available to the CODM as part of the Company’s annual and quarterly financial reporting requirements in accordance with U.S.

Content Solutions Segment:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In thousands of U.S.

2025 2024 2025 2024

$ 33,965 $ 35,076 $ 68,214 $ 69,089

Film asset amortization

5,190 8,797 9,529 13,867

Marketing and other selling expenses

3,415 4,101 5,850 6,676

Co-produced film participation expenses

82 2,873 179 2,985

Other segment expenses (1)

2,847 3,167 6,671 7,324

Total Costs and Expenses Applicable to Revenues

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Technology Products and Services Segment:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In thousands of U.S.

2025 2024 2025 2024

$ 55,639 $ 50,898 $ 106,232 $ 94,048

Depreciation of equipment supporting JRSAs

5,716 5,800 11,378 11,495

Marketing and other selling expenses

409 489 655 676

Write-down of equipment supporting JRSAs

311 2,080 399 2,137

Write-down of inventory

91 151 194 166

Other segment expenses (1)

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(1) Included within the Other segment expenses are costs related to the manufacturing and build of IMAX Systems recognized in the period, maintenance and warranty costs, and other product related costs.

Also included is a recovery of $ 0.5 million for insurance proceeds received during the period, associated with inventory costs that were previously written off.

The total proceeds received were $ 0.7 million, and the incremental gain of $ 0.2 million was recognized in selling, general and administrative expenses.

Geographic Information

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IMAX Film Remastering and distribution revenue is generated through contractual relationships with studios and other third parties that may not be in the same geographical location as the IMAX Systems that exhibit the remastered films.

The following table summarizes the Company’s revenues by geographic area for the three months ended March 31, 2025 and 2024:

Three Months Ended

The following table summarizes the Company’s revenues by geographic area for the three and six months ended June 30, 2025 and 2024:

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands of U.S.

2 unchanged sentences

Greater China 17,677 22,750 57,802 44,203

Asia (excluding Greater China)

Western Europe

14,112 10,508 21,665 24,699

Asia (excluding Greater China)

9,312 9,587 18,603 18,713

Latin America 2,150 2,258 4,107 3,718

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Total $ 91,684 $ 88,961 $ 178,351 $ 168,084

The United States, Greater China (which includes the mainland of the People’s Republic of China, Hong Kong, Macau, and Taiwan), and Asia (excluding Greater China) each comprise greater than 10 % of the Company’s total revenues for the three months

ended March 31, 2025.

The United States, Greater China, Western Europe and Asia each comprise greater than 10 % of the Company’s total revenues for the three months ended March 31, 2024.

The United States, Greater China (which includes the mainland of the People’s Republic of China, Hong Kong, Macau, and Taiwan), Western Europe, and Asia (excluding Greater China) each comprise greater than 10 % of the Company’s total revenues for the three and six months ended June 30, 2025 and 2024.

Employee’s Pension and Postretirement Benefits

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Gelfond under the SERP is fixed at $ 20.3 million.

As of March 31, 2025, the Company’s projected benefit obligation under the SERP was $ 19.2 million (December 31, 2024 — $ 19.0 million).

For the three months ended March 31, 2025, the Company recorded interest costs of $ 0.2 million (2024 — $ 0.2 million) related to the SERP.

As of June 30, 2025, the Company’s projected benefit obligation under the SERP was $ 19.4 million (December 31, 2024 — $ 19.0 million).

For the three and six months ended June 30, 2025, the Company recorded interest costs of $ 0.2 million and $ 0.4 million, respectively, (2024 — $ 0.2 million and $ 0.4 million, respectively) related to the SERP.

The Company expects to recognize additional interest costs of $ 0.4 million related to the SERP during the remainder of 2025.

No contributions are expected to be made to the SERP in 2025.

Defined Contribution Pension Plan

The Company also maintains defined contribution plans for its employees, including its executive officers.

The Company makes contributions to these plans on behalf of employees in an amount up to 5 % of their base salary subject to certain prescribed maximums.

During the three months ended March 31, 2025, the Company contributed and recorded expense of $ 0.3 million (2024 — $ 0.4 million) to its Canadian defined contribution plan and $ 0.3 million (2024 — $ 0.3 million) to its defined contribution employee plan under Section 401(k) of the U.S.

Internal Revenue Code.

Postretirement Benefits – Executives

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Wechsler, former Chairman of the Company’s Board of Directors (the “Executive Postretirement Benefit Plan”).

As of March 31, 2025, the Company’s postretirement benefits obligation under this plan is $ 0.5 million (December 31, 2024 — $ 0.5 million).

For the three months ended March 31, 2025, the Company has recorded an expense of less than $ 0.1 million (2024 — less than $ 0.1 million) related to this plan.

As of June 30, 2025, the Company’s postretirement benefits obligation under this plan was $ 0.5 million (December 31, 2024 — $ 0.5 million).

For the three and six months ended June 30, 2025, the Company has recorded an expense of less than $ 0.1 million, respectively (2024 — less than $ 0.1 million, respectively) related to this plan.

Postretirement Benefits – Canadian Employees

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The Company will provide eligible participants, upon retirement, with health and welfare benefits.

As of March 31, 2025, the Company’s postretirement benefits obligation under this plan is $ 0.8 million (December 31, 2024 — $ 0.8 million).

For the three months ended March 31, 2025, the Company has recorded expense of less than $ 0.1 million (2024 — less than $ 0.1 million) related to this plan.

As of June 30, 2025, the Company’s postretirement benefits obligation under this plan was $ 0.8 million (December 31, 2024 — $ 0.8 million).

For the three and six months ended June 30, 2025, the Company has recorded expense of less than $ 0.1 million, respectively, (2024 — less than $ 0.1 million, respectively) related to this plan.

Deferred Compensation Benefit Plan

1 unchanged sentence

Under the terms of the Retirement Plan, the benefits were due to vest in full if the executive incurred a separation from service from the Company (as defined therein).

As of March 31, 2025, the benefit obligation related to the Retirement Plan was $ 4.3 million (December 31, 2024 — $ 4.2 million) and is recorded on the Company’s Condensed Consolidated Balance Sheets within Accrued and Other Liabilities.

As of June 30, 2025, the benefit obligation related to the Retirement Plan was $ 4.3 million (December 31, 2024 — $ 4.2 million) and is recorded on the Company’s Condensed Consolidated Balance Sheets within Accrued and Other Liabilities.

As the Retirement Plan is fully vested, the benefit obligation is measured at the present value of the benefits expected to be paid in the future with the accretion of interest recognized in the Condensed Consolidated Statements of Operations within Retirement Benefits Non-Service Expense.

The Retirement Plan is funded by an investment in company-owned life insurance (“COLI”), which is recorded at its fair value on the Company’s Condensed Consolidated Balance Sheets within Prepaid Expenses.

As of March 31, 2025, fair value of the COLI asset was $ 3.7 million (December 31, 2024 — $ 3.6 million).

As of June 30, 2025, fair value of the COLI asset was $ 3.7 million (December 31, 2024 — $ 3.6 million).

Gains and losses resulting from changes in the cash surrender value of the COLI asset are recognized in the Condensed Consolidated Statements of Operations within Realized and Unrealized Investment Gains.

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The Company’s cash is invested with various major financial institutions.

The Company’s $ 97.1 million balance of cash and cash equivalents as of March 31, 2025 (December 31, 2024 — $ 100.6 million) includes $ 91.3 million in cash held outside of Canada (December 31, 2024 — $ 85.4 million), of which $ 53.9 million was held in the PRC (December 31, 2024 — $ 47.5 million).

The Company’s $ 109.3 million balance of cash and cash equivalents as of June 30, 2025 (December 31, 2024 — $ 100.6 million) included $ 100.9 million in cash held outside of Canada (December 31, 2024 — $ 85.4 million), of which $ 61.5 million was held in the People’s Republic of China (“PRC”) (December 31, 2024 — $ 47.5 million).

Fair Value Measurements

1 unchanged sentence

Including these instruments, the Company’s financial instruments consisted of the following:

As of March 31, 2025

As of June 30, 2025

As of December 31, 2024

27 unchanged sentences

The Company has entered into a series of foreign currency forward contracts to manage the risks associated with the volatility of foreign currencies.

Certain of these foreign currency forward contracts met the criteria required for hedge accounting under the Derivatives and Hedging Topic of the FASB ASC at inception, and continued to meet hedge effectiveness tests as of March 31, 2025 (the “Foreign Currency Hedges”), with settlement dates throughout 2025 and 2026.

Certain of these foreign currency forward contracts met the criteria required for hedge accounting under the Derivatives and Hedging Topic of the FASB ASC at inception, and continued to meet hedge effectiveness tests as of June 30, 2025 (the “Foreign Currency Hedges”), with settlement dates throughout 2025 and 2026.

Foreign currency derivatives are recognized and measured on the Condensed Consolidated Balance Sheets at fair value.

5 unchanged sentences

Notional value of derivatives in foreign exchange contracts:

March 31, December 31,

June 30, December 31,

(In thousands of U.S.

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Fair value of derivatives in foreign exchange contracts:

March 31, December 31,

June 30, December 31,

(In thousands of U.S.

6 unchanged sentences

Derivatives in foreign currency hedging relationships are as follows:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands of U.S.

2025 2024 2025 2024

Foreign exchange contracts — Forwards

Derivative Loss

Derivative Gain (Loss)

Recognized in OCI

1 unchanged sentence

$ 2,520 $ ( 365 ) $ 1,805 $ ( 1,281 )

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands of U.S.

2 unchanged sentences

(Effective Portion)

2025 2024 2025 2024

Foreign exchange contracts — Forwards

2 unchanged sentences

$ ( 292 ) $ ( 67 ) $ ( 1,627 ) $ ( 78 )

The Company’s estimated net amount of the existing loss as of March 31, 2025 is $ 1.4 million, which was expected to be reclassified to the Condensed Consolidated Statements of Operations within the next twelve months.

The Company’s estimated net amount of the existing gain as of June 30, 2025 is $ 1.4 million, which is expected to be reclassified to the Condensed Consolidated Statements of Operations within the next twelve months.

Non-Controlling Interests

IMAX China Non-Controlling Interest

As of March 31, 2025, t he Company indirectly owned 71.40 % of the outstanding equity interests in IMAX China, whose shares trade on the Hong Kong Stock Exchange (December 31, 2024 — 71.40 %).

As of June 30, 2025, t he Company indirectly owned 71.72 % of the outstanding equity interest in IMAX China, whose shares trade on the Hong Kong Stock Exchange (December 31, 2024 — 71.40 %).

IMAX China remains a consolidated subsidiary of the Company.

As of March 31, 2025, the balance of the Company’s non-controlling interest in IMAX China was $ 84.1 million (December 31, 2024 — $ 78.1 million).

For the three months ended March 31, 2025, the net income attributable to the non-controlling interest in IMAX China was $ 5.8 million (2024 — $ 2.2 million).

As of June 30, 2025, the balance of the Company’s non-controlling interest in IMAX China was $ 84.0 million (December 31, 2024 — $ 78.1 million).

For the three and six months ended June 30, 2025, the net income attributable to the non-controlling interest in IMAX China is $ 1.0 million and $ 6.8 million, respectively (2024 — $ 1.5 million and $ 3.6 million, respectively).

Restructuring and Other Charges

In the first quarter 2025, the Company incurred $ 0.1 million (2024 — $ nil ) of non-recurring fees related to the assessment of its corporate structure and the resulting internal asset sale.

These charges have been recognized in Restructuring and other charges in the Consolidated Statements of Operations.

As of March 31, 2025, the Company’s liability is $ 1.0 million (December 31, 2024 — $ 1.4 million) on the Consolidated Balance Sheets within Accrued and other liabilities related to Restructuring and other charges.

In the three and six months ended June 30, 2025, the Company incurred $ 0.8 million for each such period (2024 — $ nil during each such period) in Restructuring and other charges in the Consolidated Statements of Operations.

These charges are associated with continued strategic initiatives aimed at enhancing operational efficiency, reducing costs, and optimizing the Company’s organization structure.

Specifically, the Company incurred $ 0.5 million in connection with the implementation of its plan to optimize its organizational structure, including the elimination of redundant roles, addressing spans and layers to capture efficiencies and centralize

certain operational roles.

Additionally, the Company incurred $ 0.3 million of non-recurring fees relating to the 2024 internal asset sale.

As of June 30, 2025, the Company’s liability was $ 1.4 million (December 31, 2024 — $ 1.4 million) on the Consolidated Balance Sheets within Accrued and other liabilities related to Restructuring and other charges.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements