IMAX CORP 10-K

Item 8. Financial Statements and Supplementary Data INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm (PCAOB Firm ID 271 ) 62 Consolidated Balance Sheets as of December 31, 2025 and 2024 65 Consolidated Statements of Operations for the years ended December 31, 2025, 2024, and 2023 66 Condensed Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2025, 2024, and 2023 67 Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024, and 2023 68 Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2025, 2024, and 2023 69 Notes to Consolidated Financial Statements 70 ** 61 Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of IMAX Corporation Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of IMAX Corporation and its subsidiaries (the Company) as of December 31, 2025 and 2024, and the related consolidated statements of operations, of comprehensive income, of shareholders’ equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control ‒ Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control ‒ Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 62 Table of Contents Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Revenue Recognition ‒ IMAX Systems As described in notes 2 and 19 to the consolidated financial statements, the Company recognized revenue from IMAX Systems related to the IMAX Technology Products and Services reportable segment (System Sales) of $94.5 million for the year ended December 31, 2025. Management evaluates whether an IMAX System arrangement involves either a sale or a lease of an IMAX System, and for those arrangements that are accounted for as a sale of an IMAX System, determines the transaction price and the allocation thereof to each separate performance obligation based on estimated standalone selling prices. For arrangements accounted for as a sale of an IMAX System, the transaction price allocated to the performance obligation is recognized when the conditions signifying transfer of control have been met. For IMAX Systems, management applied significant judgment in (i) determining whether the arrangement related to either a sale or a lease by considering the terms of the arrangement including title to the IMAX System equipment and payment consideration; (ii) estimating the transaction price which may include the discounted present value of fixed ongoing payments and variable consideration (such as indexed minimum payment increases and additional payments owed by the customer if certain minimum box office receipt thresholds are exceeded); (iii) allocating the transaction price to each separate performance obligation based on estimated standalone selling prices; and (iv) determining the timing of revenue recognition based on when performance obligations are met. The principal considerations for our determination that performing procedures relating to the revenue recognition of IMAX Systems is a critical audit matter are that management identified the matter as a critical accounting estimate, and there was significant judgment required by management in (i) determining whether the arrangement related to a sale or a lease, and based on the type of sale or lease each arrangement represents, whether it falls in the scope of ASC 606 or ASC 842; (ii) estimating the transaction price, which may include the discounted present value of fixed ongoing payments and variable consideration; (iii) allocating the transaction price to each separate performance obligation; and (iv) determining the timing of revenue recognition. This in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence relating to the revenue recognition of IMAX Systems. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over management’s review and approval of revenue recognition memoranda produced for each IMAX System, which include the determination of the type of arrangement, the estimate of the transaction price and allocation thereof and the timing of the related revenue recognition. These procedures also included, among others, evaluating the reasonableness of management’s assessment of whether the arrangement related to either a sale or a lease by considering the contractual terms and conditions of the executed contracts. Procedures were also performed to test management’s process for estimating the transaction price for a sample of contracts with customers, including (i) evaluating the appropriateness of management’s discounted present value method; (ii) testing the completeness, accuracy and relevance of the data used in estimating the transaction price; and (iii) evaluating the reasonableness of significant assumptions used by management, including the discount rate and expected future performance of underlying theatres associated with the arrangement. Evaluating management’s assumption related to the discount rate involved evaluating whether the assumption was reasonable considering consistency with external market data. Evaluating management’s assumption related to expected future performance of the underlying theatres associated with the arrangement involved evaluating whether the assumption was reasonable considering the current and past performance of underlying theatres. Procedures were also performed to test management’s process for allocating the transaction price to each separate performance obligation, including (i) evaluating the appropriateness of management’s method of allocating the transaction price; (ii) testing the completeness, accuracy and relevance of the data used in allocating the transaction price; and (iii) evaluating the reasonableness of significant assumptions used by management, including estimated standalone selling prices. Evaluating management’s assumption related to estimated standalone selling prices involved evaluating whether the assumption was reasonable by comparing the estimate to current and historical transactions. Evaluating the appropriateness of management’s 63 Table of Contents assessment of the timing of revenue recognition involved inspecting the customers’ certificates of acceptance and theatre openings during the year. /s/ PricewaterhouseCoopers LLP Chartered Professional Accountants, Licensed Public Accountants Toronto, Canada February 25, 2026 We have served as the Company’s auditor since 1987 , which includes periods before the Company became subject to SEC reporting requirements. 64 Table of Contents IMAX CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands of U.S. Dollars except share amounts) As of December 31, 2025 2024 Assets Cash and cash equivalents $ 151,168 $ 100,592 Accounts receivable, net of allowance for credit losses 108,079 107,669 Financing receivables, net of allowance for credit losses 121,954 119,885 Variable consideration receivables, net of allowance for credit losses 91,402 82,593 Inventories 32,505 32,840 Prepaid expenses 14,881 13,121 Film assets, net of accumulated amortization 15,529 8,686 Property, plant and equipment, net of accumulated depreciation 242,910 240,133 Other assets 24,820 22,441 Deferred income tax assets, net of valuation allowance 12,577 14,499 Goodwill 45,815 52,815 Other intangible assets, net of accumulated amortization 32,391 35,124 Total assets $ 894,031 $ 830,398 Liabilities Accounts payable $ 19,478 $ 19,803 Accrued and other liabilities 105,293 100,916 Deferred revenue 50,395 52,686 Revolving credit facility borrowings, net of unamortized debt issuance costs 34,577 36,356 Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs 244,034 229,901 Deferred income tax liabilities 12,521 12,521 Total liabilities 466,298 452,183 Commitments, contingencies and guarantees (see Notes 14 and 15) Non-controlling interests 666 680 Shareholders’ equity Capital stock common shares — no par value. Authorized — Unlimited number. 53,921,676 issued and outstanding (December 31, 2024 — 52,946,200 issued and outstanding) 419,162 401,420 Other equity 164,782 185,268 Statutory surplus reserve 4,219 4,051 Accumulated deficit ( 239,967 ) ( 274,675 ) Accumulated other comprehensive loss ( 10,305 ) ( 16,598 ) Total shareholders’ equity attributable to common shareholders 337,891 299,466 Non-controlling interests 89,176 78,069 Total shareholders’ equity 427,067 377,535 Total liabilities and shareholders’ equity $ 894,031 $ 830,398 (See the accompanying notes, which are an integral part of these Consolidated Financial Statements) 65 Table of Contents IMAX CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. Dollars, except per share amounts) Years Ended December 31, 2025 2024 2023 Revenues Technology sales $ 98,339 $ 87,765 $ 100,792 Image enhancement and maintenance services 217,926 192,197 189,752 Technology rentals 82,218 62,560 75,566 Finance income 11,729 9,686 8,729 410,212 352,208 374,839 Costs and expenses applicable to revenues Technology sales 45,447 38,235 46,756 Image enhancement and maintenance services 90,042 96,558 88,056 Technology rentals 28,533 27,215 25,686 164,022 162,008 160,498 Gross margin 246,190 190,200 214,341 Selling, general and administrative expenses 138,455 132,701 144,406 Research and development 5,816 5,103 10,110 Amortization of intangible assets 7,516 5,758 4,578 Credit loss expense (reversal), net 696 ( 973 ) 1,759 Asset impairments — — 144 Goodwill impairment 7,000 — — Restructuring charges and other impairments 2,478 3,749 2,946 Income from operations 84,229 43,862 50,398 Realized and unrealized investment (losses) gains ( 867 ) 127 465 Retirement benefits non-service expense ( 243 ) ( 387 ) ( 411 ) Interest income 2,800 2,180 2,486 Interest expense ( 7,362 ) ( 8,084 ) ( 6,821 ) Induced conversion expense on settlement of convertible notes ( 15,264 ) — — Income before taxes 63,293 37,698 46,117 Income tax expense ( 17,767 ) ( 4,996 ) ( 13,051 ) Net income 45,526 32,702 33,066 Net income attributable to non-controlling interests ( 10,650 ) ( 6,643 ) ( 7,731 ) Net income attributable to common shareholders $ 34,876 $ 26,059 $ 25,335 Net income per share attributable to common shareholders: Basic $ 0.65 $ 0.49 $ 0.47 Diluted $ 0.63 $ 0.48 $ 0.46 Weighted average shares outstanding (in thousands): Basic 53,636 52,650 54,310 Diluted 55,544 53,864 55,146 (See the accompanying notes, which are an integral part of these Consolidated Financial Statements) 66 Table of Contents IMAX CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands of U.S. Dollars) Years Ended December 31, 2025 2024 2023 Net income $ 45,526 $ 32,702 $ 33,066 Other comprehensive income (loss) before tax Unrealized defined benefit plan actuarial gain (loss) 2,340 26 ( 75 ) Unrealized postretirement benefit plans actuarial loss ( 243 ) ( 61 ) ( 37 ) Amortization of defined benefit and postretirement benefit plans net gain ( 691 ) ( 740 ) ( 604 ) Unrealized net gain (loss) from cash flow hedging instruments 1,723 ( 3,455 ) 575 Realized net loss from cash flow hedging instruments 1,297 607 892 Foreign currency translation adjustments 4,329 ( 2,588 ) ( 3,907 ) Total other comprehensive income (loss) before tax 8,755 ( 6,211 ) ( 3,156 ) Income tax (expense) benefit related to other comprehensive income (loss) ( 1,234 ) 949 ( 181 ) Other comprehensive income (loss), net of tax 7,521 ( 5,262 ) ( 3,337 ) Comprehensive income 53,047 27,440 29,729 Comprehensive income attributable to non-controlling interests ( 11,878 ) ( 5,898 ) ( 6,629 ) Comprehensive income attributable to common shareholders $ 41,169 $ 21,542 $ 23,100 (See the accompanying notes, which are an integral part of these Consolidated Financial Statements) 67 Table of Contents IMAX CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. Dollars) Years Ended December 31, 2025 2024 2023 Operating Activities Net income $ 45,526 $ 32,702 $ 33,066 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 62,446 65,503 60,022 Amortization of deferred financing costs 1,984 1,969 2,235 Credit loss expense (reversal), net 696 ( 973 ) 1,759 Write-downs, including goodwill and asset impairments 9,202 3,973 1,884 Deferred income tax expense (benefit) 772 ( 5,631 ) ( 1,447 ) Share-based and other non-cash compensation 26,824 23,209 24,230 Unrealized foreign currency exchange gain ( 134 ) ( 2,770 ) ( 212 ) Realized and unrealized investment loss (gain) 867 ( 127 ) ( 465 ) Induced conversion expense on settlement on convertible notes 15,264 — — Changes in assets and liabilities: Accounts receivable ( 1,319 ) 29,105 ( 1,907 ) Inventories ( 76 ) ( 1,501 ) ( 285 ) Film assets ( 25,280 ) ( 25,122 ) ( 20,394 ) Deferred revenue ( 2,396 ) ( 14,308 ) ( 3,882 ) Changes in other operating assets and liabilities ( 7,308 ) ( 35,192 ) ( 35,989 ) Net cash provided by operating activities 127,068 70,837 58,615 Investing Activities Purchase of property, plant and equipment ( 8,167 ) ( 8,428 ) ( 6,491 ) Investment in equipment for joint revenue sharing arrangements ( 28,425 ) ( 24,341 ) ( 18,000 ) Acquisition of other intangible assets ( 5,324 ) ( 8,447 ) ( 8,344 ) Proceeds from sale of equity securities — — 1,045 Net cash used in investing activities ( 41,916 ) ( 41,216 ) ( 31,790 ) Financing Activities Proceeds from issuance of convertible notes, net 243,125 — — Redemption of capped calls related to convertible notes 30,747 — — Debt issuance costs related to convertible notes ( 24 ) — — Cash paid related to repurchase of convertible notes ( 275,415 ) — — Purchase of capped calls related to convertible notes ( 21,925 ) — — Proceeds from revolving credit facility borrowings 109,000 55,000 39,717 Repayments of revolving credit facility borrowings ( 109,000 ) ( 42,000 ) ( 53,248 ) Proceeds from other borrowings — — 322 Repayment of other borrowings ( 1,116 ) ( 874 ) ( 53 ) Credit facility amendment fees paid ( 2,280 ) — ( 46 ) Repurchase of common shares, IMAX Corporation — ( 17,855 ) ( 26,823 ) Repurchase of common shares, IMAX China ( 1,454 ) ( 116 ) ( 15 ) Taxes withheld and paid on employee stock awards vested ( 9,742 ) ( 4,978 ) ( 6,466 ) Common shares issued - stock options exercised 4,005 5,291 — Principal payment under finance lease obligations — ( 509 ) ( 480 ) Dividends paid to non-controlling interests — — ( 1,438 ) Net cash used in financing activities ( 34,079 ) ( 6,041 ) ( 48,530 ) Effects of exchange rate changes on cash ( 497 ) 812 504 Increase (decrease) in cash and cash equivalents during year 50,576 24,392 ( 21,201 ) Cash and cash equivalents, beginning of year 100,592 76,200 97,401 Cash and cash equivalents, end of year $ 151,168 $ 100,592 $ 76,200 (See the accompanying notes, which are an integral part of these Consolidated Financial Statements) 68 Table of Contents IMAX CORPORATION CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (In thousands of U.S. Dollars except share amounts) Years Ended December 31, 2025 2024 2023 Adjustments to capital stock: Balance, beginning of year $ 401,420 $ 389,048 $ 376,715 Restricted share units and performance stock units vested, net of shares withheld for employee tax obligations 12,483 14,033 13,701 Employee stock options exercised, net of shares withheld for employee tax obligations 4,005 5,291 — Grant date fair value of stock options exercised 1,254 1,623 — Average carrying value of repurchased and retired common shares — ( 8,575 ) ( 1,368 ) Balance, end of year 419,162 401,420 389,048 Adjustments to other equity: Balance, beginning of year 185,268 185,087 185,678 Amortization of share-based payment expense - stock options — — 93 Amortization of share-based payment expense - restricted share units 17,629 13,895 12,502 Amortization of share-based payment expense - performance stock units 9,650 8,536 8,321 Restricted share units and performance stock units vested ( 23,278 ) ( 20,122 ) ( 21,074 ) Grant date fair value of stock options exercised ( 1,254 ) ( 1,623 ) — Change in ownership interest related to IMAX China common share repurchases ( 549 ) ( 505 ) ( 433 ) Settlement of capped calls related to 2026 convertible notes 30,747 — — Induced conversion impact on settlement of 2026 convertible notes ( 31,506 ) — — Purchase of capped calls related to 2030 convertible notes ( 21,925 ) — — Balance, end of year 164,782 185,268 185,087 Adjustments to statutory surplus reserve: Balance, beginning of year 4,051 3,932 3,932 Change in statutory surplus reserve, IMAX China 168 119 — Balance, end of year 4,219 4,051 3,932 Adjustments to accumulated deficit: Balance, beginning of year ( 274,675 ) ( 292,845 ) ( 293,124 ) Net income attributable to common shareholders 34,876 26,059 25,335 Statutory surplus reserve deducted from retained earnings, IMAX China ( 168 ) ( 119 ) — Common shares repurchased and retired — ( 7,770 ) ( 25,056 ) Balance, end of year ( 239,967 ) ( 274,675 ) ( 292,845 ) Adjustments to accumulated other comprehensive loss: Balance, beginning of year ( 16,598 ) ( 12,081 ) ( 9,846 ) Other comprehensive income (loss), net of tax 6,293 ( 4,517 ) ( 2,235 ) Balance, end of year ( 10,305 ) ( 16,598 ) ( 12,081 ) Adjustments to non-controlling interests: Balance, beginning of year 78,069 71,790 65,691 Net income attributable to non-controlling interests 10,664 6,621 7,793 Other comprehensive income (loss), net of tax 1,228 ( 745 ) ( 1,102 ) Share-based compensation attributable to non-controlling interests 120 13 428 Dividends paid to non-controlling shareholders of IMAX China — — ( 1,438 ) Change in ownership interest related to IMAX China common share repurchases ( 905 ) 390 418 Balance, end of year 89,176 78,069 71,790 Total Shareholders’ Equity $ 427,067 $ 377,535 $ 344,931 Common shares issued and outstanding: Balance, beginning of year 52,946,200 53,260,276 54,148,614 Employee stock options exercised 179,958 248,763 — Performance stock units settled with new treasury shares 267,314 190,914 233,306 Restricted share units settled with new treasury shares 528,204 521,010 514,383 Repurchase of common shares — ( 1,274,763 ) ( 1,636,027 ) Balance, end of year 53,921,676 52,946,200 53,260,276 (See the accompanying notes, which are an integral part of these Consolidated Financial Statements) 69 Table of Contents IMAX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in thousands of U.S. Dollars, unless otherwise stated) 1. Description of the Business IMAX Corporation, together with its consolidated subsidiaries (the “Company” or “IMAX”) is a Canadian corporation that was formed in March 1994 as a result of an amalgamation between WGIM Acquisition Corp. and the former IMAX Corporation (“Predecessor IMAX”). Predecessor IMAX was incorporated in 1967. As of December 31, 2025, IMAX Corporation indirectly owned 71.57 % of IMAX China Holding, Inc. (“IMAX China”), whose shares trade on the Hong Kong Stock Exchange. IMAX China is a consolidated subsidiary of the Company. IMAX is a premier global technology platform for entertainment and events. Through its proprietary software, auditorium architecture, patented intellectual property, and specialized equipment, IMAX offers a unique end-to-end solution to create superior, immersive content experiences for which the IMAX ® brand is globally renowned. Top filmmakers, movie studios, artists, and creators utilize the cutting-edge visual and sound technology of IMAX to connect with audiences in innovative ways. As a result, IMAX is among the most important and successful global distribution platforms for domestic and international tentpole films. T he Company’s global content portfolio includes blockbuster films, both from Hollywood and local language film industries worldwide; IMAX documentaries, both original and acquired (“IMAX Documentaries”); and IMAX events and experiences in emerging verticals, including music, gaming, and sports. The Company leverages its proprietary technology and engineering in all aspects of its business, which principally consists of the IMAX film remastering (“IMAX Film Remastering” and formerly known as “IMAX DMR”) and the sale or lease of premium IMAX theater systems (“IMAX System(s)”). IMAX Systems are based on proprietary and patented image, audio and other technology developed over the course of the Company’s history. The customers for IMAX Systems are principally exhibitors that operate commercial multiplex theaters, and, to a much lesser extent, museums, science centers and destination entertainment sites. The Company does not own the locations in the IMAX network, except for one, and is not an exhibitor, but instead sells or leases the IMAX System for the distribution of specially formatted content to exhibitor customers along with a license to use its trademarks and ongoing maintenance services. As of December 31, 2025, there were 1,864 IMAX Systems operating in locations in 91 countries and territories, including 1,796 commercial multiplexes, 10 commercial destinations and 58 institutional locations in the Company’s global network. This compares to 1,807 IMAX Systems operating in 90 countries and territories as of December 31, 2024 including 1,735 commercial multiplexes, 11 commercial destinations, and 61 institutional locations in the Company’s global network. The Company also distributes large-format documentary films, primarily to institutional theaters, and distributes exclusive IMAX events and experiences. In addition, the Company provides film post-production and quality control services for large-format films, whether produced by IMAX or third parties, and digital post-production services. 2. Summary of Significant Accounting Policies The Company prepares its Consolidated Financial Statements in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The significant accounting policies used by the Company are summarized below. Principles of Consolidation The Consolidated Financial Statements include the accounts of IMAX Corporation together with its consolidated subsidiaries, except for subsidiaries which have been identified as variable interest entities (“VIEs”) where the Company is not the primary beneficiary. All intercompany accounts and transactions have been eliminated. The Company has evaluated its various variable interests to determine whether they are VIEs as required by U.S. GAAP. 70 Table of Contents The Company has interests in ten film production companies, which have been identified as VIEs. The Company is the primary beneficiary of and consolidates five of these entities as it has the power to direct the activities that most significantly impact the economic performance of the VIE, and it has the obligation to absorb losses or the right to receive benefits from the respective VIE that could potentially be significant. The majority of the assets relating to these production companies are held by the IMAX Original Film Fund (the “Original Film Fund”) as described in “Non-Controlling Interests — Other Non-Controlling Interests ” in Note 24. The Company does not consolidate the other five film production companies because it does not have the power to direct their activities and it does not have the obligation to absorb the majority of the expected losses or the right to receive expected residual returns. The Company uses the equity method of accounting for these entities, which continues to not be material to the Company’s Consolidated Financial Statements. A change in the value of an equity method investment that is other than temporary is recognized in the Consolidated Statements of Operations. As of December 31, 2025 and 2024, total assets and liabilities of the Company’s consolidated VIEs were as follows: December 31, December 31, (In thousands of U.S. Dollars) 2025 2024 Total assets $ 1,746 $ 1,459 Total liabilities $ 362 $ 246 Estimates and Assumptions The preparation of financial statements and related disclosures in accordance with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the Company’s Consolidated Financial Statements and accompanying notes. Management’s judgments, assumptions, and estimates are based on historical experience, future expectations and other factors that are believed to be reasonable as of the date of the Consolidated Financial Statements. Actual results may ultimately differ from management’s original estimates, as future events and circumstances sometimes do not develop as expected, and the differences may be material. The significant estimates made by management include, but are not limited to: (i) the allocation of the transaction price in an IMAX System arrangement to distinct performance obligations; (ii) the amount of variable consideration to be earned on sales of IMAX Systems based on projections of future box office performance and inflation; (iii) expected credit losses on accounts receivable, financing receivables, and variable consideration receivables; (iv) provisions for the write-down of excess and obsolete inventories; (v) the fair values of the reporting units used in assessing the recoverability of goodwill; (vi) the cash flow projections used in testing the recoverability of long-lived assets such as the system equipment supporting joint revenue sharing arrangements (“JRSA”) ; (vii) the economic lives of the system equipment supporting joint revenue sharing arrangements; (viii) the useful lives of tangible and intangible assets; (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; (xi) pension plan assumptions; (xii) estimates related to the fair value and projected vesting of share-based payment awards; (xiii) the valuation allowance of deferred income tax assets; and (xiv) reserves related to uncertain tax positions. Cash and Cash Equivalents The Company considers all highly liquid investments convertible to a known amount of cash and with an original maturity of three months or less to be cash equivalents. Receivables 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, as well as macro-economic and industry risk factors. The write- off of any billed receivable balance requires the approval of management. (Refer to Note 4 for more information related to the Company’s receivables and current expected credit losses.) Inventories Inventories are carried at the lower of cost, determined on an average cost basis, and net realizable value except for raw materials, which are carried at the lower of cost and replacement cost. Finished goods and work-in-process includes the cost of raw materials, direct labor, theater design costs, and an applicable share of manufacturing overhead costs. 71 Table of Contents The costs related to IMAX Systems under sale and sales-type lease arrangements are transferred from Inventories to Costs and Expenses Applicable to Revenues – Technology Sales in the period when the sale is recognized in the Consolidated Statements of Operations. The costs related to IMAX Systems under joint revenue sharing arrangements are transferred from Inventories to assets under construction in Property, Plant and Equipment when allocated to a signed JRSA. The Company records write-downs for excess and obsolete inventories based upon management’s judgments regarding future events and business conditions, including the anticipated installation dates for the current backlog of theater system contracts, contracts in negotiation, technological developments, growth prospects within the customers’ ultimate marketplace and anticipated market acceptance of the Company’s current and pending theater IMAX Systems. Finished goods inventories includes IMAX Systems for which title has passed to the Company’s customer in situations when the IMAX System has been delivered to the customer, but the criteria for revenue recognition were not met as of the balance sheet date. Film Assets Film Assets consist of: (i) capitalized costs associated with the digital remastering of films where the copyright is owned by a third party, including labor and allocated overhead, and (ii) capitalized costs associated with the production of films, including labor, allocated overhead, and the cost of acquiring film rights. Production financing provided by third parties that acquire substantive rights in the film is recorded as a reduction of the cost of the film. Capitalized film costs are amortized and participation costs are accrued to Costs and Expenses Applicable to Revenues using the individual-film-forecast method, which amortizes such costs in the same ratio as the associated ultimate revenue. Estimates of ultimate revenues are prepared on a title-by-title basis and reviewed regularly by management and revised where necessary to reflect the most current information. Ultimate revenues reflect management’s estimates of future revenue over a period not to exceed 10 years following the date of the film’s initial release. The recoverability of the Company’s film assets is dependent upon the commercial acceptance of the underlying films and the resulting level of global box office results and, in certain situations, ancillary revenues. If management’s projections of future net cash flows resulting from the exploitation of a film indicate that the carrying value of the film asset is not recoverable, the film asset is written down to its fair value. Film exploitation costs, including advertising and marketing, are recorded in Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services as incurred, except for those costs that are made after recognizing revenue, which are recorded when the related revenues are recognized. Property, Plant and Equipment Property, Plant and Equipment is recorded at cost and is depreciated on a straight-line basis over the estimated useful lives of the underlying assets as follows: Theater system components (1) — Over the equipment’s expected useful life ( 7 to 20 years) Camera equipment and connectivity equipment — Over a period between 5 years to 15 years Buildings — Over a period between 20 to 25 years Office and production equipment — Over a period between 3 to 5 years Leasehold improvements — Over the shorter of the initial term of the underlying lease plus any reasonably assured renewal periods, and the useful life of the asset (1) Includes equipment under joint revenue sharing arrangements. The cost of IMAX System components and related equipment expected to be used in future JRSAs, including related direct labor costs and an allocation of direct production costs, are recorded within assets under construction until the underlying IMAX System is installed and in working condition. These assets are depreciated to Costs and Expenses Applicable to Revenues on a straight-line basis over the lesser of the term of the JRSA and the equipment’s expected useful life. The estimated useful lives of the IMAX System components and related equipment used in JRSA are reviewed periodically to determine if any adjustments are required. Property, Plant and Equipment is grouped at the lowest level for which identifiable cash flows are largely independent and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset (or asset group) may not be recoverable. In such situations, the asset (or asset group) is considered impaired when estimated future cash flows (undiscounted and 72 Table of Contents without interest charges) resulting from the use of the asset (or asset group) and its eventual disposition are less than the carrying value of the asset (or asset group). In such situations, the asset (or asset group) is written down to its fair value, which is the present value of the estimated future cash flows. Factors that are considered when evaluating such assets for impairment include a current expectation that it is more likely than not that the long-lived asset will be sold significantly before the end of its useful life, a significant decrease in the market price of the long-lived asset, and a significant change in the extent or manner in which the long-lived asset is being used. Other Assets Other Assets principally include lease incentives provided to certain exhibitor customers under JRSAs, as well as sales commissions and other deferred selling expenses that directly relate to the acquisition of the revenue generating contract and are incremental to the Company’s other expenses. To a much lesser extent, Other Assets also includes various investments and foreign currency derivatives. Capitalized lease incentives are amortized on a straight-line basis over the term of the lease and are recorded within Costs and Expenses Applicable to Revenues — Technology Rentals. Sales commissions and other selling expenses paid prior to the recognition of the related revenue are deferred and recognized within Costs and Expenses Applicable to Revenues upon the client acceptance of the IMAX System or the abandonment of the sale arrangement. Foreign currency derivatives are accounted for at fair value using quoted prices in active markets. In periods when there are no outstanding borrowings under the Company’s revolving credit facility arrangements, any related debt issuance costs are recorded within Other Assets and amortized on a straight-line basis over the term of the facility. In periods when there are outstanding borrowings under the Company’s revolving credit facility arrangements, any related debt issuance costs are reclassified to reduce the principal amount of outstanding borrowings and amortized on a straight-line basis over the term of the facility. (Refer to Note 13 for information related to the Company’s borrowings.) Goodwill Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired in a business combination. Goodwill is not amortized, but is tested annually for impairment at the reporting unit level in the fourth quarter of the year and between annual tests if indicators of potential impairment exist. These indicators could include a decline in the Company’s stock price and market capitalization, a significant change in the outlook for the reporting unit’s business, including projections of future global box office results and IMAX System installations, lower than expected operating results, increased competition, legal factors, or the sale or disposition of a significant portion of a unit. For reporting units with goodwill, an impairment loss is recognized for the amount by which the unit’s carrying value, including goodwill, exceeds its fair value. The carrying value of each unit is based on a systematic and rational allocation of certain assets and liabilities. The fair value of each unit is assessed using a discounted cash flow model based on management’s current short-term forecast and estimated long-term projections, against which various sensitivity analyses are performed. The discount rates used in the cash flow model are derived based on the Company’s estimated weighted average cost of capital. These estimates and the likelihood of future changes in these estimates depend on a number of underlying variables and a range of possible outcomes. Other Intangible Assets Other intangible assets with finite lives are generally amortized on a straight-line basis over estimated useful lives ranging from 3 to 20 years, except for intangible assets that have an identifiable pattern of consumption of the economic benefit of the asset. Such intangible assets are amortized over the consumption pattern. Research and development acquired in a business combination is measured at fair value using market-participant assumptions and is initially classified as an indefinite-lived intangible asset. The in-process intangible research and development (“IPR&D”) assets are considered indefinite-lived until the abandonment or completion of the associated research and development efforts. If the acquired IPR&D project is abandoned, the related intangible would be written off or impaired. Once the IPR&D activities are completed, management would determine the useful lives and the methods of amortization of the related intangible assets. The Company capitalizes costs associated with internally developed and/or purchased software systems for internal use that have reached the application development stage. Capitalized costs include external direct costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related expenses for employees who are directly associated with and allocate time to the internal-use software project. Capitalization of such costs begins when the preliminary project stage is complete and ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Costs incurred during the preliminary project and post-implementation stages are charged to expense. These capitalized costs are amortized on a straight-line basis over the estimated useful life. 73 Table of Contents Intangible Assets are grouped at the lowest level for which identifiable cash flows are largely independent and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset (or asset group) may not be recoverable. In such situations, the asset (or asset group) is considered impaired when estimated future cash flows (undiscounted and without interest charges) resulting from the use of the asset (or asset group) and its eventual disposition are less than the carrying value of the asset (or asset group). In such situations, the asset (or asset group) is written down to its fair value, which is the present value of the estimated future cash flows. Factors that are considered when evaluating intangible assets for impairment include a current expectation that it is more likely than not that the intangible asset will be sold significantly before the end of its useful life, a significant decrease in the market price of the intangible asset, and a significant change in the extent or manner in which the intangible asset is being used. Deferred Revenue In instances where the Company receives consideration prior to satisfying its performance obligations, the recognition of revenue is deferred. The majority of the Deferred Revenue balance relates to payments received by the Company for IMAX Systems where control of the system has not transferred to the customer. The Deferred Revenue balance related to an individual location increases as progress payments are made and is then derecognized when the Company satisfies its performance obligations. To a lesser extent, the Deferred Revenue balance also relates to situations when an exhibitor customer pays the contractual maintenance fee prior to the recognition of revenue and fixed payments received for IMAX Systems under JRSAs which are recognized as revenue on a straight-line basis over the lease term. Statutory Surplus Reserve Pursuant to the corporate law of the People’s Republic of China (“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 year and before dividends can be declared or paid to equity holders. The Company’s PRC subsidiaries are required to appropriate 10 % of statutory net profits to statutory surplus reserves, upon distribution of their after-tax profits. The Company’s PRC subsidiaries may discontinue the appropriation of statutory surplus reserves when the aggregate sum of the statutory surplus reserve is more than 50 % of their registered capital. The statutory surplus reserve is non-distributable other than during liquidation and may only be used to fund losses from prior years, to expand production operations, or to increase the capital of the subsidiaries. In addition, the subsidiaries may make further contribution to a discretionary surplus reserve using post-tax profits in accordance with resolutions of the Board of Directors. Income Taxes Income taxes are accounted for under the liability method whereby deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the accounting and tax bases of assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or laws is recognized in the Company’s Consolidated Financial Statements in the period in which the change is enacted. Investment tax credits are recognized as a reduction of income tax expense. The Company assesses the realization of deferred income tax assets and based on all available evidence, concludes whether it is more likely than not that the net deferred income tax assets will be realized. A valuation allowance is provided for the amount of deferred income tax assets not considered to be realizable in the current period. In assessing the need for a valuation allowance, management considers, among other things, projections of future taxable income and ongoing prudent and feasible tax planning strategies. If management determines that sufficient negative evidence exists, then management will consider recording a valuation allowance against a portion or all of the deferred tax assets in that jurisdiction. If, after recording a valuation allowance, management’s projections of future taxable income and other positive evidence considered in evaluating the need for a valuation allowance prove, with the benefit of hindsight, to be inaccurate, it could prove more difficult to support the realization of these deferred tax assets. As a result, an additional valuation allowance could be required, which would have an adverse impact on the Company’s effective income tax rate and results. Conversely, if, after recording a valuation allowance, management determines that sufficient positive evidence exists in the jurisdiction in which a valuation allowance is recorded, the Company may reverse all or a portion of the valuation allowance in that jurisdiction. In such situations, the adjustment made to the deferred tax asset would have a favorable impact on the Company’s effective income tax rate and results in the period such determination was made. The Company is subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Tax benefits are recognized only when it is more likely than not, based on the technical merits, that the benefits will be sustained on examination. Tax benefits that meet the more likely than not recognition threshold are measured using a probability weighting of the largest amount of tax benefit that has greater than 50% likelihood of being realized upon settlement. Whether the more likely than not recognition 74 Table of Contents threshold is met for a particular tax benefit is a matter of judgment based on the individual facts and circumstances evaluated in light of all available evidence as of the balance sheet date. Although management believes that the Company has adequately accounted for its uncertain tax positions, tax audits can result in subsequent assessments where the ultimate resolution may result in the Company owing additional taxes above what was originally recognized in its financial statements. Tax reserves for uncertain tax positions are adjusted by the Company to reflect its best estimate of the outcome of examinations and assessments and in light of changing facts and circumstances, such as the completion of a tax audit, expiration of a statute of limitations, the refinement of an estimate, and interest accruals associated with the uncertain tax positions until they are resolved. Some of these adjustments require significant judgment in estimating the timing and amount of the additional tax expense. Revenue Recognition IMAX Systems The Company evaluates each of the performance obligations in an IMAX System arrangement to determine which are considered distinct, either individually or in a group, for accounting purposes and which of the deliverables represent separate performance obligations. The Company’s “System Obligation” consists of the following: (i) an IMAX System, which includes the projector, sound system, screen system and, if applicable, a 3D glasses cleaning machine; (ii) services associated with the IMAX System, including auditorium design support, the supervision of installation services, and projectionist training; and (iii) a license to use the IMAX brand to market the auditorium. The System Obligation, as a group, is a distinct performance obligation. The Company is not responsible for the physical installation of the equipment in the customer’s facility; however, it supervises the installation by the customer. The customer has the right to use the IMAX brand from the date the Company and the customer enter into an arrangement. IMAX System arrangements also include a requirement for the Company to provide maintenance services and an extended warranty over the life of the arrangement in exchange for an annual maintenance fee, which is subject to a consumer price index increase on renewal each year. Consideration related to the provision of maintenance services is included in the allocation of the transaction price to the separate performance obligations in the arrangement at contract inception, as discussed in more detail below. The Company’s maintenance services are a stand ready obligation and, as a result, are recognized on a straight-line basis annually throughout the contract term. The transaction price in an IMAX System arrangement is allocated to each good or service that is identified as a separate performance obligation based on estimated standalone selling prices. This allocation is based on observable prices when the Company sells the goods or services separately. The Company has established standalone prices for the System Obligation and maintenance and extended warranty services, as well as for film license arrangements. The Company uses an adjusted market assessment and cost-plus approaches for separate performance obligations that do not have standalone selling prices or third-party evidence of estimated standalone selling prices. The Company considers multiple factors including its historical pricing practices, product class, market competition and geography. IMAX System arrangements involve either the lease or the sale of an IMAX System. The transaction price for the System Obligation, other than for IMAX Systems delivered pursuant to joint revenue sharing arrangements, consist of upfront or initial payments made before and after the final installation of the system and ongoing payments throughout the term of the arrangement. The Company estimates the transaction price, including an estimate of future variable consideration, received in exchange for the goods delivered or services rendered. The arrangement for the sale of an IMAX System includes indexed minimum payment increases over the term of the arrangement, as well as the potential for additional payments owed by the exhibitor customer if certain minimum box office receipt thresholds are exceeded. In addition, sales arrangements include amounts owed by the exhibitor customer based on a percentage of their box office receipts over the term of the arrangement. These contract provisions are considered to be variable consideration. An estimate of the present value of such variable consideration is recognized as revenue upon the transfer of control of the System Obligation to the customer, subject to constraints to ensure that there is not a risk of significant revenue reversal. This estimate is based on management’s box office projections for the individual location, which are developed using historical data for the location and, if necessary, comparable theaters and territories (see “Constraints on the Recognition of Variable Consideration” below). Transfer of control of the System Obligation occurs at the earlier of client acceptance of the installation of the IMAX System, including projectionist training, and the opening of the location to the public, as discussed in more detail below. IMAX System arrangements are non-cancellable unless the Company fails to perform its obligations. In the absence of a material default by the Company, there is no right to any remedy for the customer under the Company’s arrangements. If a material default by the Company exists, the customer has the right to terminate the arrangement and seek a refund only if the customer provides notice to the Company of a material default and only if the Company does not cure the default within a specified period. 75 Table of Contents Sales Arrangements For IMAX System arrangements that qualify as a sale, the transaction price allocated to the System Obligation is recognized in the Consolidated Statements of Operations upon the transfer of control of the system to the customer, which is when all of the following conditions have been met: (i) the projector, sound system, and screen system have been installed and are in full working condition, (ii) the 3D glasses cleaning machine, if applicable, has been delivered, (iii) projectionist training has been completed, and (iv) the earlier of (a) the receipt of written customer acceptance certifying the completion of installation and run-in testing of the equipment and the completion of projectionist training or (b) the public opening of the IMAX System. The initial revenue recognized in a sales arrangement consists of payments received before and in connection with the installation of the IMAX System and the present value of any future payments, including ongoing fixed minimum payments, which are subject to indexed increases over the term of the arrangement, and potential additional payments owed by the customer if certain minimum box office receipt thresholds are exceeded. In addition, sales arrangements include amounts owed by the customer based on a percentage of their box office receipts over the term of the arrangement. Potential payments based on the future box office receipts of the customer are considered to be variable consideration. An estimate of the present value of such variable consideration is recognized as revenue upon the transfer of control of the System Obligation to the customer, subject to constraints to ensure that there is not a risk of significant revenue reversal (see “Constraints on the Recognition of Variable Consideration” below). The Company has also agreed, on occasion, to sell equipment under lease or at the end of a lease term. The transaction price agreed to for these lease buyouts is reflected in the Company’s Consolidated Statements of Operations within Revenues – Technology Sales. Taxes assessed by governmental authorities that are both imposed on and concurrent with the specific revenue-producing transactions and collected by the Company have been excluded from the measurement of the transaction prices discussed above. Constraints on the Recognition of Variable Consideration The recognition of variable consideration involves a significant amount of judgment. Variable consideration is recognized subject to appropriate constraints to avoid a significant reversal of revenue in future periods. The Company reviews its variable consideration assets on at least a quarterly basis considering recent global box office performance and, when applicable, updated global box office projections for future periods. The relevant accounting guidance identifies the following examples of situations when constraining the amount of variable consideration is appropriate: • The amount of consideration is highly susceptible to factors outside the entity’s influence; • The uncertainty about the amount of consideration is not expected to be resolved for a long period of time; • The Company’s experience (or other evidence) with similar types of contracts is limited, or that experience has limited predictive value; and • The entity has a practice of either offering a broad range of price concessions or changing the payment terms and conditions of similar contracts in similar circumstances. As discussed above, the Company’s significant streams of variable consideration relate to arrangements for the sale of IMAX Systems which include indexed minimum payment increases over the term of the arrangement, as well as the potential for additional payments owed by the customer if certain minimum box office receipt thresholds are exceeded. In addition, sales arrangements include variable consideration based on a percentage of the customer’s box office receipts over the term of the arrangement. Variable consideration related to indexed minimum payment increases is outside of the Company’s control, but the movement in the rates is historically well documented and economic trends in inflation are easily accessible. For each contract subject to an indexed minimum payment increase, the Company estimates the most likely amount using published indices. The amount of the estimated minimum payment increase is then recorded at its present value as of the date of recognition using the customer’s implied borrowing rate. Variable consideration related to the level of the customer’s box office receipts is outside of the Company’s control as it is dependent upon the future commercial success of the films released to the IMAX network. The estimated variable consideration initially recognized by the Company is based on management’s box office projections for the location, which are developed using historical box office data for that location and, if necessary, comparable locations and territories. Using this data, management applies its understanding of these exhibition markets to estimate the most likely amount of variable consideration to be earned over the term of the arrangement. Management then applies a constraint to this estimate by reducing the projection by a percentage factor for locations or markets with no or limited historical box office experience. In cases where direct historical experience can be observed, average 76 Table of Contents historical box office results, eliminating significant outliers, is used. The resulting amount of variable consideration is then recorded at its present value as of the date of recognition using a risk-weighted discount rate. Lease Arrangements As a lessor, the Company provides IMAX Systems to customers through long-term lease arrangements. Under these arrangements, in exchange for providing the IMAX System, the Company earns fixed upfront and ongoing consideration. A lease arrangement that transfers substantially all of the benefits and risks incident to ownership of the IMAX System is classified as a sales-type lease; otherwise the lease is classified as an operating lease. Prior to commencement of the lease term, the Company may modify certain payment terms or make concessions. If these circumstances occur, the Company reassesses the classification of the lease based on the modified terms and conditions. For sales-type leases, the revenue allocated to the System Obligation is recognized when the lease term commences, which the Company deems to be when all of the following conditions have been met: (i) the projector, sound system, and screen system have been installed and are in full working condition, (ii) the 3D glasses cleaning machine, if applicable, has been delivered, (iii) projectionist training has been completed, and (iv) the earlier of (a) the receipt of the written customer acceptance certifying the completion of installation and run-in testing of the equipment and the completion of projectionist training or (b) the public opening of the theater, provided collectability is reasonably assured. The initial revenue recognized for sales-type leases consists of the initial payments received and the present value of future initial payments and fixed minimum ongoing payments computed at the interest rate implicit in the lease. Contingent payments in excess of the fixed minimum payments are recognized when reported by theater operators, provided collectability is reasonably assured. For JRSAs that are classified as operating leases, initial payments and fixed minimum ongoing payments are recognized as revenue on a straight-line basis over the lease term. For these leases, the lease term is considered to commence when all of the following conditions have been met: (i) the projector, sound system and screen system have been installed and are in full working condition; (ii) the 3D glasses cleaning machine, if applicable, has been delivered; (iii) projectionist training has been completed; and (iv) the earlier of (a) the receipt of written customer acceptance certifying the completion of installation and run-in testing of the equipment and the completion of projectionist training or (b) the public opening of the theater. Contingent payments in excess of fixed minimum ongoing payments are recognized as revenue when reported by theater operators, provided collectability is reasonably assured. Finance Income Finance Income is recognized over the term of the sales-type lease or financed sale receivable, provided collectability is reasonably assured. A theater operator that is classified within the “All Transactions Suspended” category under the Company’s internal credit quality guidelines is placed on nonaccrual status and Finance Income recognition related to the location is stopped. While the recognition of Finance Income is suspended, payments received from a customer are applied against the outstanding balance owed. If payments are sufficient to cover any unreserved receivables, a recovery of provision taken on the billed amount, if applicable, is recorded to the extent of the residual cash received. Once the collectability issues are resolved and the customer has returned to being in good standing, the Company will resume recognition of Finance Income. Improvements and Modifications Improvements and modifications to an IMAX System after installation are treated as a separate performance obligation, if and when the Company is requested to perform these services. Revenue is recognized for these services once they have been provided. Costs and Expenses Applicable to Revenues – Technology Sales Costs and Expenses Applicable to Revenues – Technology Sales relates to sale and sales-type leases of IMAX Systems and other equipment, and includes the cost of the equipment and costs related to project management, design, delivery and installation supervision services, as applicable. The costs related to IMAX Systems under sale and sales-type lease arrangements are transferred from Inventories to Costs and Expenses Applicable to Revenues in the period when the sale is recognized in the Consolidated Statements of Operations. Sales commissions and other selling expenses that directly relate to the acquisition of the revenue generating contract and are incremental to the Company’s other expenses are deferred and recognized in the Consolidated Statements of Operations upon the client acceptance of the IMAX System. The Company may have warranty obligations at or after the time revenue is recognized which require the replacement of certain parts that do not affect the functionality of the theater system or services. The costs for warranty obligations for known issues are accrued as charges to Costs and Expenses Applicable to Revenues – Technology Sales at the time revenue is recognized based on the Company’s past historical experience and cost estimates. 77 Table of Contents Costs and Expenses Applicable to Revenues – Technology Rentals Costs and Expenses Applicable to Revenues – Technology Rentals relates to JRSAs classified as operating leases, and primarily includes the depreciation of IMAX System components and related equipment used in the JRSA. Impairment losses, if any, are also included in Costs and Expenses Applicable to Revenues – Technology Rentals. Commissions related to these arrangements are deferred and recognized as Costs and Expenses Applicable to Revenues – Technology Rentals in the month they are earned by the salesperson, which is typically the month of installation. Direct advertising and marketing costs for each location are charged to Costs and Expenses Applicable to Revenues – Technology Rentals as incurred. Terminations, Consensual Buyouts and Concessions The Company enters into IMAX System arrangements with customers that contain customer payment obligations prior to the scheduled installation of the IMAX System. During the period of time between signing and the installation of the IMAX System, which may extend several years, certain customers may be unable to, or may elect not to, proceed with the system installation for a number of reasons including business considerations, or the inability to obtain certain consents, approvals or financing. Once the determination is made that the customer will not proceed with installation, the arrangement may be terminated under the default provisions of the arrangement or by mutual agreement between the Company and the customer (a “consensual buyout”). Terminations by default are situations when a customer does not meet the payment obligations under an arrangement and the Company retains the amounts paid by the customer. Under terminations by default, the Company evaluates the deferred revenue for potential breakage in accordance with ASC 606. Breakage is recognized as revenue when the Company concludes that the customer’s likelihood of exercising its remaining rights is remote. Under a consensual buyout, the Company and the customer agree, in writing, to a settlement and to release each other of any further obligations under the arrangement or an arbitrated settlement is reached. Under a consensual buyout, any initial payments retained or additional payments received by the Company are recognized as revenue when the settlement arrangements are executed and the cash is received, respectively. In addition, the Company may agree with a customer to convert its obligations for one type of IMAX System configuration that has not yet been installed to an arrangement to acquire or lease a different type of IMAX System. The Company considers these situations to be the termination of the original arrangement and the origination of a new arrangement. The Company may offer certain incentives to customers to complete IMAX System transactions including payment concessions or free services and products such as film licenses or 3D glasses. Reductions in, and deferral of, payments are taken into account in determining the transaction price either by a direct reduction in the sales price or a reduction of payments to be discounted. Free products and services are accounted for as separate performance obligations. Maintenance and Extended Warranty Services Maintenance and extended warranty services may be provided under an arrangement with multiple performance obligations or as a separately priced contract. Revenues related to these services are deferred and recognized on a straight-line basis over the contract period and are recognized within Revenues – Image Enhancement and Maintenance Services in the Consolidated Statements of Operations. Maintenance and extended warranty services include maintenance of the customer’s equipment and replacement parts. Under certain maintenance arrangements, maintenance services may include additional training services to the customer’s technicians. All costs associated with this maintenance and extended warranty program are expensed as incurred. As the maintenance services are a stand ready obligation with the cost of providing the service expected to increase throughout the term, revenue is recognized over the term of the arrangement such that increased amounts are recognized in later periods. IMAX Film Remastering Services In a film remastering arrangement, the Company receives a percentage of the box-office receipts from a third party who owns the copyright to a film in exchange for converting the film into an IMAX Film Remastering format and distributing it through the IMAX network. In these arrangements, although the Company does not hold rights to the intellectual property in the form of the film content, it is compensated for the application of its intellectual property in the form of its patented film remastering processes to create new intellectual property in the form of an IMAX Film Remastering version of the film. Revenues associated with film remastering arrangements qualify for the variable consideration exemption for sales- or usage-based royalties in the relevant accounting guidance and are recognized within Revenues – Image Enhancement and Maintenance Services in the period when the corresponding box office sales occur. Losses on IMAX Film Remastering services are recognized as Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services in the period when it is determined that the Company’s estimate of total revenues to be realized by the remastered film will not exceed the corresponding cost of IMAX Film Remastering services. 78 Table of Contents Film Production Services In certain film arrangements, the Company produces a film financed by third parties whereby the third party retains the copyright, and the Company obtains exclusive distribution rights. Under these arrangements, the Company is entitled to receive a fixed fee or retain, as a fee, the excess of gross revenue over the cost of the production (the “production fee”). The third party receives a portion of the revenues received by the Company from distributing the film, which is charged to Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services. Production fees are deferred and recognized as a reduction in the cost of the film based on the ratio of the Company’s distribution revenues recognized in the current period to the ultimate distribution revenues expected from the film. Film exploitation costs, including advertising and marketing, are recorded in Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services as incurred. Revenue from film production services where the Company does not hold the associated distribution rights are recognized in Revenues – Image Enhancement and Maintenance Services when performance obligations associated with the contractual service are satisfied. Losses on film production services are recognized as Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services in the period when it is determined that the Company’s estimate of total revenues to be realized by the Company will not exceed estimated total production costs to be expended on the film production. Film Distribution Services In a Film Distribution arrangement, the Company distributes large-format documentary films, primarily to institutional locations, and distributes exclusive entertainment experiences ranging from live performances to interactive events with leading artists and creators. Revenue from the licensing of films qualifies for the variable consideration exemption for sales- or usage-based royalties in the relevant accounting guidance and is recognized within Revenues – Image Enhancement and Maintenance Services when all performance obligations have been satisfied, which includes the completion and delivery of the film and the commencement of the license period. In situations when film license fees are based on a percentage of box-office receipts, revenue is recognized when box-office receipts are reported by the exhibitor. Film exploitation costs, including advertising and marketing, are expensed as incurred within Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services. Film Post-Production Services Revenues from post-production film services are recognized within Revenues – Image Enhancement and Maintenance Services when performance of the contracted services is completed. Software License and Subscription Services Through the Streaming and Consumer Technology business unit, the Company provides term licenses, which give customers the right to use its software for a specific period, and perpetual licenses, which give customers the right to use its software for an indefinite period. For both types of licenses, the associated revenue is recognized at the point in time when the customer can use and benefit from the software, which is generally upon delivery to the customer or upon commencement of the renewal term. For licenses that are deployed and hosted at the customer site, revenue is recognized upon delivery of the software to the customer or upon commencement of the renewal term. For licenses where the software is provided through a hosting arrangement, if the customer does not have a contractual right to take possession of the underlying software without significant penalty, or it is not feasible for the customer to run the software on its own hardware or contract a third party to host the services, the arrangement is accounted for as a service transaction whereby the Company has a stand-ready obligation to provide the software over the license period. Therefore, the related revenue is recognized ratably over the license period, as control of service is transferred to the customer. The Company’s software license arrangements for both term and perpetual licenses typically include maintenance and support services which provide technical support and unspecified updates and upgrades on a when-and-if-available basis. The contractual term of the arrangement to provide maintenance and support services for perpetual licenses is renewable, generally on an annual basis, at the option of the customer. Maintenance and support services represent stand-ready obligations for which revenue is recognized ratably over the term of the arrangements. Revenues from licenses and maintenance and support services are recognized within Revenues – Image Enhancement and Maintenance Services. 79 Table of Contents Leases As a lessee, the Company’s lease arrangements principally involve office and warehouse space, which are classified as operating leases. The corresponding operating lease right-of-use (“ROU”) assets and lease liabilities are recorded within Property, Plant and Equipment and Accrued and Other Liabilities on the Company’s Consolidated Balance Sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term. Operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. 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. 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 the ability to renew its leases through either extension options or mutual agreement. The depreciable lives of ROU 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 rents or subleases certain office space to third parties, which have a remaining term of less than 12 months and are not expected to be renewed. When there are modifications to the lease agreements, the Company remeasures the lease liabilities to reflect changes to lease payments and recognizes the amount of the remeasurement of the lease liability as an adjustment to the ROU assets. Amortization of ROU assets and interest on lease liabilities are included within Selling, General and Administrative Expenses in the Company’s Consolidated Statements of Operations. (Refer to Note 5 for additional information related to the Company’s operating leases.) Research and Development Research and development costs, which are expensed as incurred, primarily include projector and sound parts, labor, consulting fees, allocation of overheads, and other related materials which pertain to the Company’s development of new products and services. Development costs pertaining to fixed and intangible assets that have alternative future uses are capitalized and amortized under their related policies. Foreign Currency Translation Monetary assets and liabilities that are denominated in a currency other than the Company’s functional currency are translated into the relevant functional currency using the exchange rate prevailing at the end of the period. Foreign exchange translation gains and losses are included in the determination of earnings in the period in which they arise. Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date. Revenues, expenses, gains, and losses recorded in foreign currencies are translated using the exchange rates prevailing during the period in which they are recognized. Translation adjustments resulting from this process are recorded to Other Comprehensive Income (Loss) and reported on the Company’s Consolidated Balance Sheets within Accumulated Other Comprehensive Loss until the subsidiary is sold or liquidated, at which point the adjustments are recognized in Consolidated Statements of Operations. Foreign currency derivatives are recognized and measured on the Consolidated Balance Sheets at their fair value. Changes in the fair value (i.e., gains or losses) are recognized in the Consolidated Statements of Operations except for derivatives designated and qualifying as foreign currency hedging instruments. For foreign currency hedging instruments, the gain or loss related to the effective portion of the hedge of a forecasted transaction is reported within Other Comprehensive Income (Loss) and reclassified to the Consolidated Statements of Operations when the forecasted transaction occurs. Any ineffective portion is recognized immediately in the Consolidated Statements of Operations. Share-Based Compensation The Company issues share-based compensation to eligible employees, directors, and consultants under the IMAX Corporation Second Amended and Restated Long-Term Incentive Plan (as may be amended, the “IMAX LTIP”) and the China Long-Term Incentive Plan (the “China LTIP”) as summarized in Note 16. The IMAX LTIP is the Company’s governing document and awards to employees, directors, and consultants under this plan may consist of stock options, restricted share units (“RSUs”), performance stock units (“PSUs”) and other awards. A separate share-based compensation plan, the China LTIP, was adopted by a subsidiary of the Company in October 2012. The Company measures share-based compensation expense using the grant date fair value of the award (see below), which is recognized as an expense in the Consolidated Statements of Operations on a straight-line basis over the requisite service period. Share- based compensation expense is not adjusted for estimated forfeitures but is instead adjusted when and if actual forfeitures occur. 80 Table of Contents Stock Options The Company utilizes a lattice-binomial option-pricing model (“Binomial Model”) to determine the fair value of stock option awards on the grant date. The fair value determined by the Binomial Model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the award, and actual and projected employee stock option exercise behaviors. The Binomial Model also considers the expected exercise multiple which is the multiple of exercise price to grant price at which exercises are expected to occur on average. Option-pricing models were developed for use in estimating the value of traded options that have no vesting or hedging restrictions and are fully transferable. Because the Company’s employee stock options have certain characteristics that are significantly different from traded options, and because changes in the subjective assumptions can materially affect the estimated value, in management’s opinion, the Binomial Model best provides a fair measure of the fair value of the Company’s employee stock options. The Company stratifies its employees into homogeneous groups in order to calculate the grant date fair value of stock options using the Binomial Model. As a result, ranges of assumptions are used for the expected life of the option. The Company uses historical data to estimate option exercise behavior within the Binomial Model and various groups of employees that have similar historical exercise behavior are grouped together for valuation purposes. The expected volatility rate is estimated based on a blended volatility method which takes into consideration the Company’s historical share price volatility, the Company’s implied volatility which is determined in reference to observed current market prices for the Company’s traded options and the Company’s peer group volatility. The Company no longer issues stock options as a form of employee compensation. (Refer to “Capital Stock — Share-Based Compensation ” in Note 16 for the assumptions used to determine the fair value of the Company’s stock options.) Restricted Share Units The fair value of RSU awards is equal to the closing price of the Company’s common stock 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 value of the portion of the award that is ultimately expected to vest is recognized as compensation expense over the requisite service period in the Company’s Consolidated Statements of Operations. The Company’s RSUs are classified as equity. Performance Stock Units 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 the Adjusted EBITDA and TSR targets in these PSUs is determined over a three-year performance period. For PSUs granted as of December 31, 2025, 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, at the end of the three-year performance period. The Company’s PSUs are classified as equity. 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 or as stipulated in the respective employee’s agreement. The grant date fair value of PSUs with TSR targets is determined on the grant date using a Monte Carlo simulation, which is a valuation model that considers the likelihood of achieving the TSR targets embedded in the award (“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 highly 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 and timing 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 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 such determination is made. 81 Table of Contents Share-Based Payment Awards to Non-Employees Share-based payment awards for services provided by non-employees are measured at grant date fair value of the equity instruments that the Company is obligated to issue when the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. The grant date is the date which the Company and the non-employees reach a mutual understanding of the key terms and conditions of the share-based payment awards. When there are performance conditions related to the vesting of the share-based awards, the Company assesses the probability of vesting at each reporting date and adjusts the compensation costs based on the probability assessment. Pension Plans and Postretirement Benefits The Company has a defined benefit pension plan, the Supplemental Executive Retirement Plan (the “SERP”). As the Company’s SERP was unfunded, as of December 31, 2025, a liability was recognized for the benefit obligation. Assumptions used in computing the defined benefit obligations are reviewed annually by management in consultation with its actuaries and adjusted for current conditions. Actuarial gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefits cost are recognized as a component of Other Comprehensive Income (Loss). Amounts recognized in Accumulated Other Comprehensive Loss including unrecognized actuarial gains or losses and prior service costs are adjusted as they are subsequently recognized in the Consolidated Statements of Operations as components of net periodic benefit cost. Prior service costs resulting from the pension plan inception or amendments are amortized over the expected future service life of the employees, cumulative actuarial gains and losses in excess of 10 % of the projected benefit obligation are amortized over the expected average remaining service life of the employees, and current service costs are expensed when earned. The remaining weighted average future service life of the employee used in computing the defined benefit obligation for the year ended December 31, 2025 was three years . For defined contribution pension plans, required contributions by the Company are recorded as an expense within Selling, General and Administrative Expenses in the Company’s Consolidated Statements of Operations. A liability is recognized for the unfunded accumulated benefit obligation of the postretirement benefits plan. Assumptions used in computing the accumulated benefit obligation are reviewed by management in consultation with its actuaries and adjusted for current conditions. Net benefit cost is split between operating income and non-operating income, where only the service cost is included in income from operations and the non-service components are included in Retirement Benefits Non-Service Expenses. Actuarial gains and losses are recognized as a component of Other Comprehensive (Loss) Income. Amounts recognized in Accumulated Other Comprehensive Loss including unrecognized actuarial gains or losses are adjusted as they are subsequently recognized within Retirement Benefits Non-Service Expense in the Consolidated Statements of Operations. Guarantees In situations when the Company acts as a guarantor, at the inception of a guarantee, it recognizes a liability for the fair value of the underlying guarantee. Disclosures as required under the relevant accounting guidance have been included in Note 15. 3. New Accounting Standards and Accounting Changes Adoption of New Accounting Policies Improvements to Income Tax Disclosures In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). The amendments in ASU 2023-09 are intended to 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. The Company adopted ASU 2023-09 for the year ended December 31, 2025 on a prospective basis. The adoption of this ASU impacted the Company’s income tax disclosures in Note 11 of these Consolidated Financial Statements. 82 Table of Contents Induced Conversions of Convertible Debt Instruments In November 2024, the FASB issued ASU Update No. 2024-04, “Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments” (“ASU 2024-04”). ASU 2024-04 clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The Company adopted ASU 2024-04 for the Company’s year ended December 31, 2025. The adoption of this ASU impacted the accounting for and disclosure of the Company’s convertible debt instruments, as disclosed in Note 13 of these Consolidated Financial Statements. Recently Issued FASB Accounting Standard Codification Updates Not Yet Adopted Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures” (“ASU 2024-03”). The amendments in ASU 2024-03 expand disclosures about specific expense categories presented on the face of the income statement and addresses requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation and amortization) in commonly presented expense captions (such as cost of sales, selling, general and administrative expenses). ASU 2024-03 is effective for interim periods within annual reporting periods beginning after December 15, 2027 with early adoption permitted. The Company is in the process of evaluating the impact of ASU 2024-03 on its Consolidated Financial Statements. Measurement of Credit Losses for Accounts Receivable and Contract Assets In July 2025, the FASB issued ASU No. 2025-05, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets” (“ASU 2025-05”). The amendments in ASU 2025-05 provide a practical expedient that allows entities to assume current economic conditions as of the balance sheet date will remain unchanged throughout the reasonable and supportable forecast period when estimating expected credit losses for eligible financial assets, including trade receivables and contract assets. ASU 2025-05 is effective for fiscal periods beginning after December 15, 2025, including interim periods within those fiscal years. The Company does not expect the adoption of this ASU to have a material impact on its Consolidated Financial Statements. Targeted Improvements to the Accounting for Internal-Use Software In September 2025, the FASB issued ASU No. 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software” (“ASU 2025-06”). The amendments in ASU 2025-06 clarify and refine the criteria for capitalizing costs related to internal-use software. Under the new guidance, capitalization is permitted when both of the following conditions are met: (i) management has authorized and committed to funding the software project, and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. ASU 2025-06 is effective for fiscal periods beginning after December 15, 2027, and interim periods thereafter. The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements. Hedge Accounting Improvements In November 2025, the FASB issued ASU No. 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements” (“ASU 2025-09”). The amendments in ASU 2025-09 more closely align hedge accounting with the economics of an entity’s risk management activities for (i) similar risk assessment for cash flow hedges, (ii) hedging forecasted interest payment on choose-your-rate debt instruments, (iii) cash flow hedges of nonfinancial forecasted transactions, (iv) net written options as hedging instruments, and (v) foreign-currency-denominated debt instrument as hedging instrument and hedged item. ASU 2025-09 is effective for fiscal periods beginning after December 15, 2026, and interim periods thereafter. The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements. Accounting for Government Grants Received by Business Entities In December 2025, the FASB issued ASU No. 2025-10, “Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities” (“ASU 2025-10”). The amendments in ASU 2025-10 establishes accounting and guidance for a government grant received by an entity. Under the new guidance, a government grant is not recognized until it is probable that an entity will comply with the conditions attached to the grant and the grant will be received, and recognition guidance is met. A grant related to an asset is recognized on the balance sheet as an entity incurs the related costs for which the grant is intended to compensate. ASU 2025-10 is effective for fiscal periods beginning after December 15, 2028, and interim periods thereafter. The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements. 83 Table of Contents 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 Consolidated Financial Statements for the year ended December 31, 2025. 4. Receivables 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. Theater operators, or other customers, may experience financial difficulties that could result in them being unable to fulfill their payment obligations to the Company. In order to mitigate the credit risk associated with the Company’s receivables, management performs an initial credit evaluation prior to entering into an arrangement with a customer and then regularly monitors the credit quality of each customer through an analysis of collections history and aging. This monitoring process includes meetings on at least a monthly basis to identify credit concerns and potential changes in credit quality classification. A customer may improve their credit quality classification once a substantial payment is made on an overdue balance or when the customer has agreed to a payment plan and payments have commenced in accordance with that plan. Changes in credit quality classification are dependent upon management approval. The Company’s internal credit quality classifications are as follows: • Good Standing — The theater operator continues to be in good standing as payments and reporting are received on a regular basis. • Credit Watch — The theater operator has demonstrated a delay in payments, but continues to be in active communication with the Company. Theater operators placed on Credit Watch are subject to enhanced monitoring. In addition, depending on the size of the outstanding balance, length of time in arrears, and other factors, future transactions may need to be approved by management. These receivables are in better condition than those in the Pre-Approved Transactions Only category, but are not in as good condition as the receivables in the Good Standing category. • Pre-Approved Transactions Only — The theater operator has demonstrated a delay in payments with little or no communication with the Company. All services and shipments to the theater operator must be reviewed and approved by management. These receivables are in better condition than those in the All Transactions Suspended category, but are not in as good condition as the receivables in the Credit Watch category. In certain situations, a theater operator may be placed on nonaccrual status and all revenue recognition related to the theater may be suspended, including the accretion of Finance Income for Financing Receivables. • All Transactions Suspended — The theater operator is severely delinquent, non-responsive or not negotiating in good faith with the Company. Once a theater operator is classified within the All Transactions Suspended category, the theater is placed on nonaccrual status and all revenue recognitions related to the theater are suspended, including the accretion of Finance Income for Financing Receivables. During the period when the accretion of Finance Income is suspended for Financing Receivables, any payments received from a customer are applied against the outstanding balance owed. If payments are sufficient to cover any unreserved receivables, a reversal of the provision is recorded to the extent of the residual cash received. Once the collectability issues are resolved and the customer has returned to being in good standing, the Company will resume recognition of Finance Income. When a customer’s aging exceeds 90 days, the Company’s policy is to perform an enhanced review to assess collectability of the theater’s past due accounts. The over 90 days past due category may be an indicator of potential impairment as up to 90 days outstanding is considered to be a reasonable time to resolve any issues. 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. The write-off of any billed receivable balance requires the approval of management. Management’s judgments regarding expected credit losses are based on the facts available to management and involve estimates about the future. As a result, the Company’s judgments and associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect. The impacts of inflation, and rising interest rates may impact future credit losses. The Company will 84 Table of Contents continue to monitor economic trends and conditions and portfolio performance and adjust its allowance for credit loss accordingly. Refer to “Summary of Significant Accounting Policies — Estimates and Assumptions ” in Note 2. Accounts Receivable Accounts receivable principally includes amounts currently due to the Company under IMAX System sale and sales-type lease arrangements, contingent fees owed by theater operators as a result of box office performance, and fees for maintenance services. 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 years ended December 31, 2025 and 2024: Year Ended December 31, 2025 Theater (In thousands of U.S. Dollars) Operators Studios Other Total Beginning balance $ 11,678 $ 1,017 $ 583 $ 13,278 Current year provision (reversal), net 581 617 ( 139 ) 1,059 Write-offs, net of recoveries ( 232 ) ( 321 ) — ( 553 ) Foreign exchange 143 ( 3 ) — 140 Ending balance $ 12,170 $ 1,310 $ 444 $ 13,924 Year Ended December 31, 2024 Theater (In thousands of U.S. Dollars) Operators Studios Other Total Beginning balance $ 14,355 $ 616 $ 1,006 $ 15,977 Current year (reversal) provision, net ( 2,696 ) 404 17 ( 2,275 ) Write-offs, net of recoveries ( 178 ) ( 3 ) ( 440 ) ( 621 ) Foreign exchange 197 — — 197 Ending balance $ 11,678 $ 1,017 $ 583 $ 13,278 For the year ended December 31, 2025, the Company’s allowance for current expected credit losses related to Accounts Receivable increased by $ 0.6 million, largely reflective of specific provisions related to certain exhibitors in Greater China for which the Company determined there was an increased risk of non-collection of aged receivables. For the year ended December 31, 2024, the Company’s allowance for current expected credit losses related to Accounts Receivable decreased by $ 2.7 million, largely the result of an increase in collections of outstanding balances as exhibition partners continue to improve their financial position post pandemic. 85 Table of Contents 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 December 31, 2025 and 2024, financing receivables consisted of the following: December 31, (In thousands of U.S. Dollars) 2025 2024 Net investment in leases: Gross minimum payments due under sales-type leases $ 32,628 $ 30,890 Unearned finance income ( 1,015 ) ( 887 ) Present value of minimum payments due under sales-type leases 31,613 30,003 Allowance for credit losses ( 458 ) ( 664 ) Net investment in leases 31,155 29,339 Financed sales receivables: Gross minimum payments due under financed sales 127,099 127,906 Unearned finance income ( 26,160 ) ( 27,199 ) Present value of minimum payments due under financed sales 100,939 100,707 Allowance for credit losses ( 10,140 ) ( 10,161 ) Net financed sales receivables 90,799 90,546 Total financing receivables $ 121,954 $ 119,885 Net financed sales receivables due within one year $ 30,660 $ 30,136 Net financed sales receivables due after one year 60,139 60,410 Total financed sales receivables $ 90,799 $ 90,546 As of December 31, 2025 and 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: December 31, 2025 2024 Weighted-average remaining lease term (in years): Sales-type lease arrangements 8.6 8.5 Weighted-average interest rate: Sales-type lease arrangements 6.91 % 7.24 % Financed sales receivables 8.68 % 8.95 % The tables below provide information on the Company’s net investment in leases by credit quality indicator as of December 31, 2025 and 2024. The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis and include both billed and unbilled amounts. (In thousands of U.S. Dollars) By Origination Year As of December 31, 2025 2025 2024 2023 2022 2021 Prior Total Net investment in leases: Credit quality classification: In good standing $ 4,843 $ 3,277 $ 2,638 $ 2,721 $ 8,562 $ 9,171 $ 31,212 Credit Watch — — — — — — — Pre-approved transactions — — — — — — — Transactions suspended — — — — — 401 401 Total net investment in leases $ 4,843 $ 3,277 $ 2,638 $ 2,721 $ 8,562 $ 9,572 $ 31,613 86 Table of Contents (In thousands of U.S. Dollars) By Origination Year As of December 31, 2024 2024 2023 2022 2021 2020 Prior Total Net investment in leases: Credit quality classification: In good standing $ 3,469 $ 3,190 $ 3,057 $ 6,625 $ 1,963 $ 1,931 $ 20,235 Credit Watch — — — — — — — Pre-approved transactions — — — 2,800 1,477 4,664 8,941 Transactions suspended — — 426 — — 401 827 Total net investment in leases $ 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 December 31, 2025 and 2024. The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis and include both billed and unbilled amounts. (In thousands of U.S. Dollars) By Origination Year As of December 31, 2025 2025 2024 2023 2022 2021 Prior Total Financed sales receivables: Credit quality classification: In good standing $ 11,069 $ 6,537 $ 7,638 $ 4,796 $ 7,642 $ 38,792 $ 76,474 Credit Watch — — — — 114 629 743 Pre-approved transactions 316 165 369 — 428 6,870 8,148 Transactions suspended — — — 527 391 14,656 15,574 Total financed sales receivables $ 11,385 $ 6,702 $ 8,007 $ 5,323 $ 8,575 $ 60,947 $ 100,939 (In thousands of U.S. Dollars) By Origination Year As of December 31, 2024 2024 2023 2022 2021 2020 Prior Total Financed sales receivables: Credit quality classification: In good standing $ 6,217 $ 7,249 $ 5,980 $ 6,152 $ 4,974 $ 41,570 $ 72,142 Credit Watch — — — — — 567 567 Pre-approved transactions 411 779 298 3,468 1,899 8,132 14,987 Transactions suspended — — — 114 143 12,754 13,011 Total financed sales receivables $ 6,628 $ 8,028 $ 6,278 $ 9,734 $ 7,016 $ 63,023 $ 100,707 87 Table of Contents The following tables provide an aging analysis for the Company’s net investment in leases and financed sales receivables as of December 31, 2025 and 2024: As of December 31, 2025 (In thousands of U.S. Dollars) Accrued and Current 30-89 Days 90+ Days Billed Unbilled Recorded Receivable Allowance for Credit Losses Net Net investment in leases $ 670 $ 223 $ 2,278 $ 3,171 $ 28,442 $ 31,613 $ ( 458 ) $ 31,155 Financed sales receivables 1,361 887 10,308 12,556 88,383 100,939 ( 10,140 ) 90,799 Total $ 2,031 $ 1,110 $ 12,586 $ 15,727 $ 116,825 $ 132,552 $ ( 10,598 ) $ 121,954 As of December 31, 2024 (In thousands of U.S. Dollars) Accrued and Current 30-89 Days 90+ Days Billed Unbilled Recorded Receivable Allowance for Credit Losses Net Net investment in leases $ 222 $ 218 $ 3,185 $ 3,625 $ 26,378 $ 30,003 $ ( 664 ) $ 29,339 Financed sales receivables 895 1,019 12,462 14,376 86,331 100,707 ( 10,161 ) 90,546 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 continued to accrue finance income as of December 31, 2025 and 2024. As of December 31, 2025 (In thousands of U.S. Dollars) Accrued and Current 30-89 Days 90+ Days Billed Unbilled Allowance for Credit Losses Net Net investment in leases $ 337 $ 165 $ 2,281 $ 2,783 $ 16,129 $ ( 10 ) $ 18,902 Financed sales receivables 684 690 7,440 8,814 32,211 ( 1,252 ) 39,773 Total $ 1,021 $ 855 $ 9,721 $ 11,597 $ 48,340 $ ( 1,262 ) $ 58,675 As of December 31, 2024 (In thousands of U.S. Dollars) Accrued and Current 30-89 Days 90+ Days Billed Unbilled Allowance for Credit Losses Net Net investment in leases $ 222 $ 218 $ 3,185 $ 3,625 $ 20,176 $ ( 6 ) $ 23,795 Financed sales receivables 727 610 10,143 11,480 42,208 ( 1,086 ) 52,602 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 sales receivables that were on nonaccrual status as of December 31, 2025 and 2024: As of December 31, 2025 As of December 31, 2024 (In thousands of U.S. Dollars) Recorded Receivable Allowances for Credit Losses Net Recorded Receivable Allowances for Credit Losses Net Net investment in leases $ 401 $ ( 401 ) $ — $ 827 $ ( 614 ) $ 213 Net financed sales receivables 24,467 ( 9,243 ) 15,224 28,565 ( 8,317 ) 20,248 Total $ 24,868 $ ( 9,644 ) $ 15,224 $ 29,392 $ ( 8,931 ) $ 20,461 For the years ended December 31, 2025, 2024, and 2023, the Company did not recognize any Finance Income related to the net investment in leases in nonaccrual status. For the year ended December 31, 2025, the Company recognized $ 0.3 million (2024 — $ 1.0 million; 2023 — $ 0.2 million) in Finance Income related to the financed sales receivables in nonaccrual status. 88 Table of Contents The following tables summarize the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sales receivables for the years ended December 31, 2025 and 2024: December 31, 2025 Net Investment Net Financed (In thousands of U.S. Dollars) in Leases Sales Receivables Beginning balance $ 664 $ 10,161 Current year reversal, net ( 207 ) ( 60 ) Foreign exchange 1 39 Ending balance $ 458 $ 10,140 December 31, 2024 Net Investment Net Financed (In thousands of U.S. Dollars) in Leases Sales Receivables Beginning balance $ 453 $ 9,617 Current year provision, net 212 572 Foreign exchange ( 1 ) ( 28 ) Ending balance $ 664 $ 10,161 For the years ended December 31, 2025 and 2024, the Company’s allowance for current expected credit losses related to its net investment in leases and financed sales receivables decreased by $ 0.2 million and increased by $ 0.8 million, respectively, which reflects the Company’s credit quality assessment of future minimum payments due from its exhibition customers. Variable Consideration Receivables In sale arrangements, variable consideration may become due to the Company from theater operators if certain annual minimum box office receipt thresholds are exceeded. Such variable consideration is recorded as revenue in the period when the sale is recognized and adjusted in future periods based on actual results and changes in estimates. 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 years ended December 31, 2025 and 2024: December 31, 2025 2024 (In thousands of U.S. Dollars) Theater Operators Theater Operators Beginning balance $ 116 $ 633 Current year (reversal) provision, net ( 96 ) ( 513 ) Foreign exchange — ( 4 ) Ending balance $ 20 $ 116 For the year ended December 31, 2025, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables remained consistent. For the year ended December 31, 2024, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables decreased by $ 0.5 million as part of the Company’s assessment of the risk profile of the balance. 5. 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 Consolidated Balance Sheets and the related lease expense is recognized on a straight-line basis over the lease term. The Company has the ability to renew its leases through either extension options or mutual agreement. 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 89 Table of Contents 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 years ended December 31, 2025, 2024, and 2023 the components of lease expense, which are primarily recorded within Selling, General and Administrative Expenses, were as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Operating lease cost: Amortization of operating lease assets $ 2,499 $ 2,120 $ 2,677 Interest on operating lease liabilities 709 661 768 Short-term and variable lease costs 412 289 507 Finance lease cost: Amortization of finance lease assets 398 398 398 Interest on finance lease liabilities — 17 45 Total lease cost $ 4,018 $ 3,485 $ 4,395 For the years ended December 31, 2025, 2024, and 2023, supplemental cash and non-cash information related to leases was as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating leases $ 3,241 $ 3,068 $ 3,675 Finance leases — 509 480 Supplemental disclosure of noncash leasing activities: Right-of-use assets obtained in exchange for operating lease obligations $ 1,787 $ 1,596 $ 972 Right-of-use assets obtained in exchange for finance lease obligations — — — As of December 31, 2025 and 2024, supplemental balance sheet information related to leases was as follows: December 31, (In thousands of U.S. Dollars) 2025 2024 Assets: Balance Sheet Location Operating lease right-of-use assets Property, plant and equipment $ 9,300 $ 10,019 Finance lease right-of-use assets Property, plant and equipment 624 1,022 Liabilities: Balance Sheet Location Operating lease liabilities Accrued and other liabilities $ 11,065 $ 11,861 Finance lease liabilities Accrued and other liabilities — — As of December 31, 2025 and 2024, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s leases were as follows: 90 Table of Contents December 31, (In thousands of U.S. Dollars) 2025 2024 Operating leases: Weighted-average remaining lease term (years) 3.8 4.8 Weighted-average discount rate 5.87 % 5.87 % Finance leases: Weighted-average remaining lease term (years) 1.6 2.6 Weighted-average discount rate 6.00 % 6.00 % As of December 31, 2025, the maturities of the Company’s operating lease liabilities were as follows: (In thousands of U.S. Dollars) 2026 $ 3,327 2027 3,268 2028 3,075 2029 2,556 2030 172 Thereafter 6 Total lease payments $ 12,404 Less: interest expense ( 1,339 ) Present value of lease liabilities $ 11,065 IMAX Corporation as a Lessor The Company provides IMAX Systems to customers through long-term lease arrangements that for accounting purposes are classified as sales-type leases. Under these arrangements, in exchange for providing the IMAX System, the Company earns fixed upfront and ongoing consideration. Certain arrangements that are legal sales are also classified as sales-type leases as certain clauses within the arrangements limit transfer of title or provide the Company with conditional rights to the system. The customer’s rights under the Company’s sales-type lease arrangements are described in “Summary of Significant Accounting Policies — Revenue Recognition ” in Note 2. Under the Company’s sales-type lease arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s lease portfolio terms are typically non-cancellable for 10 to 20 years with renewal provisions from inception. The Company’s sales-type lease arrangements do not contain a guarantee of residual value at the end of the lease term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and an extended warranty generally after the first year of the lease until the end of the lease term. 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 Company also provides IMAX Systems to customers through JRSAs. Under the traditional form of these arrangements, in exchange for providing the IMAX System under a long-term lease, the Company earns rent based on a percentage of contingent box office receipts and, in some cases, concession revenues, rather than a fixed upfront fee or annual minimum payments. Under certain other JRSAs, known as hybrid arrangements, the customer is responsible for making fixed upfront payments prior to the delivery and installation of the IMAX System. Under JRSAs, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s JRSAs are typically non-cancellable for 10 years or longer with renewal provisions. Title to the IMAX System under a JRSA generally does not transfer to the customer. The Company’s JRSAs do not contain a guarantee of residual value at the end of the lease term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and an extended warranty throughout the term. 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 next five years and thereafter following the December 31, 2025 balance sheet date: 91 Table of Contents (In thousands of U.S. Dollars) Sales-Type Leases 2026 $ 3,955 2027 3,533 2028 3,418 2029 3,418 2030 3,405 Thereafter 14,899 Total $ 32,628 (Refer to Note 4 for additional information related to the net investment in leases related to the Company’s sales-type lease arrangements.) 6. Variable Considerations from Contracts with Customers The arrangement for the sale of an IMAX System includes indexed minimum payment increases over the term of the arrangement, as well as the potential for additional payments owed by an exhibitor customer if certain minimum box office receipt thresholds are exceeded. In addition, sales arrangements include amounts owed by an exhibitor customer based on a percentage of their box office receipts over the term of the arrangement. These contract provisions are considered to be variable consideration. An estimate of the present value of such variable consideration is recognized as revenue upon the transfer of control of the System Obligation to the customer, subject to constraints to ensure that there is not a risk of significant revenue reversal. This estimate is based on management’s box office projections for the individual IMAX System, which are developed using historical data for the location and, if necessary, comparable locations and territories. Estimates for future indexed minimum payment increases are based on historical index rates, in addition to any external factors which may influence this index in the future. (Refer to “Summary of Significant Accounting Policies — Revenue Recognition ” in Note 2 for a more detailed discussion of the Company’s accounting policy related to variable consideration, including constraints on the recognition of variable consideration.) The following table summarizes the activity related to variable consideration from contracts with customers for the years ended December 31, 2025, 2024, and 2023: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Beginning balance $ 82,593 $ 64,338 $ 44,024 Variable consideration for newly recognized sales 19,603 25,485 28,580 Accretion to finance income 5,709 3,810 2,644 Transferred to receivables from variable consideration assets ( 19,639 ) ( 13,884 ) ( 10,887 ) Changes in variable consideration estimates 3,040 2,327 — Changes in allowance for credit losses (see Note 4) 96 517 ( 23 ) Ending balance $ 91,402 $ 82,593 $ 64,338 7. Inventories As of December 31, (In thousands of U.S. Dollars) 2025 2024 Raw materials $ 26,620 $ 29,162 Work-in-process 2,280 1,611 Finished goods 3,605 2,067 $ 32,505 $ 32,840 As of December 31, 2025, Inventories included balances of $ 1.0 million (December 31, 2024 — $ 1.8 million) for which title had passed to the customer, but the criteria for revenue recognition were not met as of the balance sheet date. The following table summarizes the activity for the Company’s inventories valuation allowance account for the years ended December 31, 2025, 2024, and 2023: 92 Table of Contents Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Beginning balance $ 5,532 $ 5,416 $ 5,739 Additions charged to expenses (1) 261 269 64 Other deductions (2) ( 28 ) ( 153 ) ( 387 ) Ending balance $ 5,765 $ 5,532 $ 5,416 (1) Excludes an expense of $ nil charged directly to the Consolidated Statements of Operations during the year ended December 31, 2025 (2024 — expense of $ 0.1 million; 2023 — expense of $ 0.5 million). (2) Includes the write-off of amounts previously charged to valuation allowance. 8. Film Assets As of December 31, (In thousands of U.S. Dollars) 2025 2024 Completed and released films $ 2,335 $ 2,952 Films in production 10,145 4,136 Films in development 3,049 1,598 Total $ 15,529 $ 8,686 In 2025, the Company recognized film asset amortization of $ 18.5 million (2024 — $ 24.8 million; 2023 — $ 20.3 million). The Company expects to amortize $ 13.1 million of the Film Assets balance within three years of December 31, 2025, including $ 6.6 million in 2026, $ 5.1 million in 2027, and $ 1.4 million in 2028. In certain film arrangements, the Company co-produces a film with a third party whereby the third party retains certain rights to the film. The amount of participation payments owed to third parties related to co-produced films as of December 31, 2025 was $ 5.3 million (December 31, 2024 — $ 5.2 million) and was recorded on the Consolidated Balance Sheets within Accrued and Other Liabilities. In 2025, the Company recognized film asset write-downs of $ 0.2 million (2024 — less than $ 0.1 million; 2023 — $ 0.4 million). 9. Property, Plant and Equipment As of December 31, 2025 (In thousands of U.S. Dollars) Cost Accumulated Depreciation Net Book Value Equipment leased or held for use: IMAX System components (1)(2)(3) $ 345,386 $ 197,966 $ 147,420 Camera and connectivity equipment 15,962 7,855 8,107 Sub-total 361,348 205,821 155,527 Assets under construction (4) 13,507 — 13,507 Right-of-use assets (5) 12,107 2,183 9,924 Other property, plant and equipment: Land 8,203 — 8,203 Buildings 81,573 38,283 43,290 Office and production equipment (6) 40,031 30,242 9,789 Leasehold improvements 6,723 4,053 2,670 Sub-total 136,530 72,578 63,952 Total $ 523,492 $ 280,582 $ 242,910 93 Table of Contents As of December 31, 2024 (In thousands of U.S. Dollars) Cost Accumulated Depreciation Net Book Value Equipment leased or held for use: IMAX System components (1)(2)(3) $ 331,412 $ 184,297 $ 147,115 Camera and connectivity equipment 9,400 6,280 3,120 Sub-total 340,812 190,577 150,235 Assets under construction (4) 15,110 — 15,110 Right-of-use assets (5) 12,421 1,380 11,041 Other property, plant and equipment: Land 8,203 — 8,203 Buildings 81,258 36,029 45,229 Office and production equipment (6) 41,380 33,872 7,508 Leasehold improvements 6,858 4,051 2,807 Sub-total 137,699 73,952 63,747 Total $ 506,042 $ 265,909 $ 240,133 (1) Included in system components are assets with costs of $ 1.4 million (2024 — $ 1.4 million) and accumulated depreciation of $ 1.4 million (2024 — $ 1.4 million) that are leased to customers under operating leases. (2) Included in system components are assets with costs of $ 328.8 million (2024 — $ 313.9 million) and accumulated depreciation of $ 184.7 million (2024 — $ 171.4 million) that are used in JRSAs. (3) In 2025, the Company recorded charges of $ 0.6 million (2024 — $ 3.4 million; 2023 — $ 0.8 million) in Costs and Expenses Applicable to Technology Rentals mostly related to the write-down of systems under JRSAs resulting from contract amendments. (4) Included in assets under construction are components with costs of $ 9.5 million (2024 — $ 6.9 million) that will be utilized to construct assets to be used in JRSAs. (5) The right-of-use assets primarily include operating leases for office and warehouse space. (6) Fully depreciated office and production equipment is still in use by the Company. In 2025, the Company identified and wrote off $ 6.6 million (2024 — $ 0.7 million) of office and production equipment that was fully depreciated and no longer in use. 10. Other Assets As of December 31, (In thousands of U.S. Dollars) 2025 2024 Lease incentives provided to exhibitor customers, net of accumulated amortization $ 22,860 $ 20,230 Commissions and other deferred selling expenses 743 1,086 Other investments (1) — 1,000 Foreign currency derivatives 992 — Other 225 125 $ 24,820 $ 22,441 (1) During the year ended December 31, 2025, the Company recorded an impairment charge of $ 1.0 million on the investment in equity securities. (Refer to “Financial Instruments — Investments in Equity Securities” in Note 21 for additional information.) 11. Income Taxes Income Before Taxes by Jurisdiction Income before taxes by tax jurisdiction for the years ended December 31, 2025, 2024, and 2023 consisted of the following: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Canada $ ( 2,032 ) $ ( 14,240 ) $ ( 13,366 ) Foreign (1) 65,325 51,938 59,483 Total $ 63,293 $ 37,698 $ 46,117 (1) Prior year amounts have been revised to conform to the current presentation with one category for Foreign income. No amounts have been reclassified between Canada and Foreign. 94 Table of Contents Income Tax Expense Income tax expense for the years ended December 31, 2025, 2024, and 2023 consisted of the following: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Income tax expense – current (1) : Federal $ ( 609 ) $ 700 $ 58 Provincial ( 467 ) 537 45 Foreign ( 15,919 ) ( 11,864 ) ( 14,601 ) Sub-total ( 16,995 ) ( 10,627 ) ( 14,498 ) Income tax (expense) benefit – deferred (1) : Federal (2) 697 ( 1,920 ) 1,390 Provincial 535 ( 1,472 ) 1,066 Foreign ( 2,004 ) 9,023 ( 1,009 ) Sub-total ( 772 ) 5,631 1,447 Total (3) $ ( 17,767 ) $ ( 4,996 ) $ ( 13,051 ) (1) Prior year amounts have been revised to conform to the current presentation to present the information into Federal, Provincial, and Foreign Categories. (2) A valuation allowance is recorded in jurisdictions where management has determined, based on the weight of all available evidence, both positive and negative, that a valuation allowance for deferred tax assets is required. For the year ended December 31, 2025, the Company recorded a $ 5.7 million net decrease (2024 — net increase of $ 3.5 million, 2023 — net decrease of $ 0.7 million) in the valuation allowance against its deferred tax assets in Canada. Of the $ 5.7 million net decrease in the valuation allowance recorded in 2025, a $ 6.0 million decrease is reflected within Income Tax Expense in the Company’s Consolidated Statements of Operations, and a $ 0.3 million increase is reflected directly on the Consolidated Balance Sheets. (3) For the year ended December 31, 2025, Income Tax Expense excludes a tax expense of $ 1.2 million included in Other Comprehensive Income (2024 — benefit of $ 0.9 million; 2023 — expense of $ 0.2 million). 95 Table of Contents Reconciliation of Income Tax Expense to Statutory Rate For the years ended December 31, 2025, 2024, and 2023, the Company’s effective tax rate and income tax expense differs from the Canadian federal statutory income tax rates due to the following factors: Year Ended December 31, 2025 (In thousands of U.S. Dollars, except rates) Amount Percent Income tax expense at Canadian federal statutory tax rate (1) ( 9,494 ) 15.0 % Adjustments resulting from: Ontario provincial tax expense 234 ( 0.4 %) Foreign tax effects Withholding taxes ( 3,031 ) 4.8 % Other statutory tax rate differences ( 553 ) 0.9 % Changes to tax liabilities resulting from tax return adjustments 417 ( 0.7 %) Ireland Statutory tax rate difference 288 ( 0.5 %) Increase in valuation allowance ( 683 ) 1.1 % Changes to tax liabilities resulting from tax return adjustments ( 554 ) 0.9 % Other 140 ( 0.2 %) China Statutory tax rate difference ( 4,647 ) 7.3 % Tax subsidy 973 ( 1.5 %) Withholding taxes ( 986 ) 1.6 % United States Statutory tax rate difference ( 275 ) 0.4 % Changes to tax liabilities resulting from tax return adjustments 537 ( 0.8 %) Increase in valuation allowance ( 230 ) 0.4 % State and local income taxes ( 606 ) 1.0 % Decrease in valuation allowance 6,896 ( 10.9 %) Stock based compensation 1,706 ( 2.7 %) Non-deductible goodwill impairment ( 1,841 ) 2.9 % Non-deductible premium paid on refinancing ( 4,014 ) 6.3 % Tax gain on settlement of capped call ( 1,536 ) 2.4 % Changes to tax reserves ( 769 ) 1.2 % Tax credits 1,180 ( 1.9 %) Changes to deferred tax liabilities resulting from prior year tax return adjustments ( 963 ) 1.5 % Other items included in tax benefit 44 ( 0.1 %) Income tax expense $ ( 17,767 ) 28.1 % (1) The Company’s Canadian federal statutory tax rate of 15 % is comprised of the basic Part I federal tax rate of 38 %, netting to 15 % after the federal tax abatement and general tax reduction. The reconciliation of taxes at the federal statutory rate to the income tax expense for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows: 96 Table of Contents Years Ended December 31, 2024 2023 (In thousands of U.S. Dollars, except rates) Amount Rate Amount Rate Income tax expense at combined statutory rates (1) $ ( 9,990 ) 26.5 % $ ( 12,221 ) 26.5 % Adjustments resulting from: Decrease (increase) in valuation allowance ( 3,481 ) 9.2 % 732 ( 1.6 %) Changes to tax reserves 1,374 ( 3.6 %) 387 ( 0.8 %) U.S. federal and state taxes ( 362 ) 1.0 % ( 250 ) 0.5 % Withholding taxes ( 3,938 ) 10.5 % ( 5,206 ) 11.3 % Income tax at different rates in foreign and other provincial jurisdictions 2,324 ( 6.2 %) 3,144 ( 6.8 %) Investment and other tax credits 1,169 ( 3.1 %) 379 ( 0.8 %) Changes to deferred tax assets and liabilities resulting from tax return and other adjustments 3,604 ( 9.6 %) ( 273 ) 0.6 % Internal asset sale 4,037 ( 10.7 ) % — — % Other items included in tax benefit 267 ( 0.7 %) 257 ( 0.6 %) Income tax expense $ ( 4,996 ) 13.3 % $ ( 13,051 ) 28.3 % (1) The Company’s Canadian corporate tax rate of 26.5 % is comprised of the basic Part I federal tax rate of 38 %, netting to 15 % after the federal tax abatement and general tax reduction, plus the additional Ontario provincial tax rate of 11.5 %. During 2024, the Company completed an internal asset sale to more closely align intellectual property rights with its operations. The tax expense on the capital gains was offset by deferred tax benefits resulting in a net tax benefit of $ 4.0 million. The valuation allowance also includes a $ 2.3 million net tax benefit related to the internal asset sale, resulting in a total net tax benefit of $ 6.3 million recognized in Income Tax Expense of the Consolidated Statements of Operations. Cash Paid for Income Taxes, Net of Refunds Cash paid for income taxes, net of refunds, for the years ended December 31, 2024 and 2023 was $ 14.6 million and $ 17.8 million, respectively. During 2025, the Company made the following cash tax payments: Year Ended December 31, (In thousands of U.S. Dollars) 2025 Federal $ 87 Provincial 66 United States 1,922 Ireland 409 China 10,114 Other (1) 3,255 Net Cash Paid $ 15,853 (1) Includes payments to other jurisdictions that are individually insignificant. Deferred Tax Assets and Deferred Tax Liability As of December 31, 2025 and 2024, the Company’s deferred tax assets and deferred tax liability consisted of the following: 97 Table of Contents As of December 31, (In thousands of U.S. Dollars) 2025 2024 Net operating loss carryforwards $ 4,648 $ 17,523 Investment tax credit and other tax credit carryforwards 7,755 6,418 Write-downs of other assets 1,317 1,632 Excess of tax accounting basis in various assets 40,767 35,948 Accrued pension liability 4,607 5,823 Accrued share-based compensation 9,046 9,028 Income recognition on net investment in leases ( 5,626 ) ( 4,119 ) Other accrued reserves 10,004 7,859 Total deferred income tax assets 72,518 80,112 Less: Valuation allowance ( 59,941 ) ( 65,613 ) Net deferred income tax asset 12,577 14,499 Deferred tax liability ( 12,521 ) ( 12,521 ) Net deferred tax asset (1) $ 56 $ 1,978 (1) The Company’s deferred tax liability of $ 12.5 million as of December 31, 2025 (2024 — $ 12.5 million) relates to the estimated applicable foreign withholding taxes associated with historical earnings that were not indefinitely reinvested which will become payable upon the repatriation of any such earnings. During the year ended December 31, 2025, $ nil (2024 — $ nil ) of historical earnings from a subsidiary in China were distributed and as a result, $ nil (2024 — $ nil ) of foreign withholding taxes were paid to the relevant tax authorities. As of December 31, 2025, net deferred tax assets included a liability of $ 1.6 million (December 31, 2024 — liability of $ 0.4 million) associated with amounts recognized within Accumulated Other Comprehensive Loss, including unrealized actuarial gains and losses related to the Company’s pension and other postretirement benefit plans and unrealized net gains and losses on cash flow hedging instruments. Net Operating Loss Carryforwards Estimated Canadian net operating loss carryforwards of $ 40.0 million can be used to reduce taxable income through 2044 and $ 1.4 million of Ireland net operating losses can be carried forward indefinitely. Investment tax credits and other tax credits of $ 7.8 million can be carried forward to reduce income taxes payable through to 2045. Indefinitely Reinvested Assertion Income taxes are accrued for the earnings of non-Canadian affiliates and associated companies unless management determines that such earnings will be indefinitely reinvested outside of Canada. In 2020, management completed a reassessment of its strategy with respect to the most efficient means of deploying the Company’s capital resources globally. Based on the results of this reassessment, management concluded that the historical earnings of certain foreign subsidiaries in excess of amounts required to sustain business operations would no longer be indefinitely reinvested. During the year ended December 31, 2025, $ nil (2024 — $ nil ) of historical earnings from a subsidiary in China were distributed and, as a result, $ nil (2024 — $ nil ) of foreign withholding taxes were paid to the relevant tax authorities. The Company had a deferred tax liability of $ 12.5 million as of December 31, 2025 (2024 — $ 12.5 million) related to the estimated applicable foreign withholding taxes associated with these historical earnings. Valuation Allowance As of December 31, 2025, the Company’s Consolidated Balance Sheets include net deferred income tax assets of $ 12.6 million, which is net of a valuation allowance of $ 59.9 million (December 31, 2024 — $ 14.5 million, which is net of a valuation allowance of $ 65.6 million). For the year ended December 31, 2025, the Company recorded a net decrease in valuation allowance of $ 5.7 million (2024 — net increase of $ 3.5 million). The net decrease includes $ 4.7 million in reporting entities where it was concluded that it is more likely than not that the benefit from deferred tax assets will not be realized, $ 1.2 million related to deferred assets recorded in Other Comprehensive Income, and $ 1.3 million related to tax return and other tax adjustments. This was partially offset by an increase of $ 1.2 million related deferred assets on investment tax credits and $ 0.4 million for items recorded through Shareholders’ Equity. The net decrease in the valuation allowance is reflected within Income Tax Expense in the Company’s Consolidated Statements of Operations and a portion in Other Equity in the Consolidated Balance Sheets. The valuation allowance is expected to reverse at the point in time when management determines it is more likely than not that the Company will incur sufficient tax liabilities to allow it to utilize the deferred tax assets against which the valuation allowance is recorded. 98 Table of Contents Uncertain Tax Positions As of December 31, 2025, the Company had total tax reserves (including interest and penalties) of $ 11.3 million (2024 — $ 10.6 million) for various uncertain tax positions. While the Company believes it has adequately provided for all tax positions, amounts asserted by taxing authorities could differ from the Company’s accrued liability. Accordingly, additional provisions on federal, provincial, state and foreign tax-related matters may be required in the future as revised estimates are made or the underlying matters are settled or otherwise resolved. For the year ended December 31, 2025, the Company recorded a net increase of $ nil (2024 — decrease of $ 1.6 million, 2023 — decrease of $ 0.8 million) related to tax reserves (excluding interest and penalties). The Company has elected to classify interest and penalties related to income tax liabilities, when applicable, as part of the Income Tax Expense in its Consolidated Statements of Operations rather than Interest Expense. The Company recorded a net increase of $ 0.8 million in potential interest and penalties associated with its provision for uncertain tax positions for the years ended December 31, 2025 (2024 — $ 0.1 million; 2023 — $ 0.6 million). The following table presents a reconciliation of the beginning and ending amount of tax reserves (excluding interest and penalties) for the years ended December 31, 2025, 2024, and 2023: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Balance at beginning of the year $ 7,349 $ 8,954 $ 9,733 Additions based on tax positions related to the current year — — — Additions for tax positions of prior years — 109 1,552 Reductions resulting from lapse of applicable statute of limitations and administrative practices — ( 1,714 ) ( 2,331 ) Balance at the end of the year $ 7,349 $ 7,349 $ 8,954 The number of years with open tax audits varies depending on the tax jurisdiction. The Company’s material taxing jurisdictions include Canada, the United States, Ireland, and China. The Company’s 2022 through 2025 tax years remain subject to examination by the IRS for United States federal tax purposes, and the 2017 through 2025 tax years remain subject to examination by the appropriate governmental agencies for Canadian federal tax purposes. There are other ongoing audits in various other jurisdictions that are not material to the Consolidated Financial Statements. The Company is subject to audit by tax authorities in the various jurisdictions in which it operates in the ordinary course of its business and believes that it has adequately reserved for the expected exposures in its accounts. During the fourth quarter of 2022, the Company received a Notice of Reassessment (the “Reassessment”) in the amount of $ 13.2 million (inclusive of interest). A revised Reassessment was issued by the Canada Revenue Agency in June 2024 to reduce the amount previously reassessed to $ 3.0 million (inclusive of interest). The Company has filed a Notice of Objection with respect to this Reassessment and believes that the matter will be resolved on a basis that is consistent with its filing position. Share Buyback Tax Legislation to introduce a 2% tax on the value of certain share buybacks net of share issuances by publicly traded Canadian-resident corporations was enacted during the second quarter of 2024. The tax applies to net share repurchases on or after January 1, 2024, with certain exceptions. The tax is imposed on the repurchasing corporation itself and will be included in the cost basis of the repurchased treasury stock. During the year ended December 31, 2025, the Company has recorded $ nil share buyback tax as the Company did not have any share buybacks during the year. One Big Beautiful Bill Act On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was enacted into law. Key provisions of the Act include revisions to Interest Deductibility (IRC §163(j)), Bonus Depreciation, and Section §179. The Act did not have a material impact on the Company’s consolidated financial statements, including its effective tax rate. The Company will continue to monitor interpretive guidance and assess any future impact, if applicable. Pillar Two Legislation 99 Table of Contents On October 8, 2021, the Organization for Economic Co-Operation and Development (“OECD”) announced the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting which agreed to a two-pillar solution to address tax challenges arising from digitalization of the economy. On December 20, 2021, the OECD released Pillar Two Model Rules (“Pillar Two”) defining the global minimum tax rules, which contemplate a 15% minimum tax rate. The OECD continues to release additional guidance, including administrative guidance on how the Pillar Two rules should be interpreted and applied, and many countries are passing legislation to comply with Pillar Two. Canada enacted its Pillar Two rules on June 20, 2024. The Company is under the revenue threshold where Pillar Two would apply and is not currently subject to tax under these rules. Income Tax Effect on Other Comprehensive Income For the years ended December 31, 2025, 2024, and 2023, income tax (expense) benefit related to the components of Other Comprehensive Income was as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Unrealized defined benefit plan actuarial loss $ ( 615 ) $ 7 $ 20 Unrealized postretirement benefit plan actuarial loss 64 6 9 Amortization of defined benefit and postretirement benefit plans 182 204 175 Unrealized change in cash flow hedging instruments ( 524 ) 892 ( 151 ) Realized change in cash flow hedging instruments ( 341 ) ( 160 ) ( 234 ) Total $ ( 1,234 ) $ 949 $ ( 181 ) 12. Goodwill and Other Intangible Assets Goodwill As of December 31, 2025, the Company’s total Goodwill was $ 45.8 million (December 31, 2024 — $ 52.8 million) of which $ 39.0 million (December 31, 2024 — $ 39.0 million) relates to the Technology Products and Services reporting unit and $ 6.8 million (December 31, 2024 — $ 13.8 million) relates to the Streaming and Consumer Technology reporting unit (formerly SSIMWAVE reporting unit, refer to Note 20 for additional information). For the Technology Products and Services reporting unit, the Company performed a qualitative impairment test as of September 30, 2025 (annual test date) to evaluate whether it is more likely than not that the fair value of its reporting units was less than their respective carrying amounts. Based on such assessment, the Company concluded, that it is more likely than not that the fair value of any such reporting unit is more than its carrying value. The Company performed both a qualitative and quantitative assessment of goodwill impairment for the SSIMWAVE reporting unit as of November 1, 2025 (annual test date). The impairment test indicated that a partial goodwill impairment charge of $ 7.0 million was required, with $ 6.8 million of goodwill remaining within the SSIMWAVE reporting unit. The impairment charge was due to a change in the Company’s market focus, resulting in a downward adjustment to the SSIMWAVE reporting unit’s expected cash flows based on the discounted cash flow method. The discounted cash flow method, which estimates fair value based on the present value of future cash flows, required the Company to make various assumptions regarding the timing and amount of these cash flows, including revenue growth rates, projected operating expenditures, and the terminal value of the business at the end of the projection period. The Company’s 2025 assessment includes assumptions about future cash flows based on its internal forecasts, which incorporate the 2026 budget and the long-range plan. The revenue growth rates were based on expected trends supported by market growth projections. The terminal value was estimated using a long-term growth rate that closely approximated inflation. The discount rate determined for the reporting unit was based on the risks of achieving the future cash flows, including risks applicable to the industry and market as a whole, as well as the capital structure of comparable entities. For the impairment test of the SSIMWAVE reporting unit, the Company utilized a discount rate of 15.2 % and a revenue growth rate of 25.0 % in certain years which represent the most significant assumptions in the model. Assumptions and estimates about future cash flows and discount rates are complex and often subjective and require significant judgment. The analysis is dependent on internal forecasts, estimation of the long-term rates of revenue growth for the Company’s reporting units, terminal growth rates, profitability measures, and determination of the discount rates for the reporting units. 100 Table of Contents Assuming that all other components of the Company’s fair value estimate remain unchanged, an increase of 100 basis points in discount rate increases the impairment by $ 1.4 million, a 10 % decline in forecasted revenue increases the impairment by $ 3.5 million, and a decrease of 10 % in the revenue growth rate increases the impairment by $ 1.7 million. Changes to the carrying amount of goodwill for the years ended December 31, 2025 and 2024 were as follows: As of December 31, 2025 (In thousands of U.S. Dollars) Cost Impairment Net Book Value Goodwill $ 52,815 $ 7,000 $ 45,815 As of December 31, 2024 (In thousands of U.S. Dollars) Cost Impairment Net Book Value Goodwill $ 52,815 $ — $ 52,815 Other Intangible Assets As of December 31, 2025 (In thousands of U.S. Dollars) Cost Accumulated Amortization and Impairment (1) Net Book Value Licenses and intellectual property $ 26,168 $ 19,582 $ 6,586 Internal use software 43,487 29,956 13,531 Developed technology 6,184 3,390 2,794 In process research and development 3,810 — 3,810 Patents and trademarks 12,764 9,918 2,846 Customer relationships 1,340 1,340 — Marketing-related intangibles 5,542 2,740 2,802 Other 152 130 22 Total $ 99,447 $ 67,056 $ 32,391 (1) Refer to “Restructuring Charges and Other Impairments ” in Note 25 for additional information. As of December 31, 2024 (In thousands of U.S. Dollars) Cost Accumulated Amortization and Impairment Net Book Value Licenses and intellectual property $ 26,168 $ 18,167 $ 8,001 Internal use software 39,769 27,171 12,598 Developed technology 6,092 2,329 3,763 In process research and development 3,810 — 3,810 Patents and trademarks 12,851 10,070 2,781 Customer relationships 1,340 452 888 Marketing-related intangibles 5,031 1,818 3,213 Other 160 90 70 Total $ 95,221 $ 60,097 $ 35,124 During 2025, the Company capitalized $ 6.7 million related to the development of internal use software, marketing-related intangibles, as well as additions in patents and trademarks (2024 — $ 8.4 million). The weighted average amortization period for these additions is 5.3 years (2024 — 4.9 years). The net book value of the other intangible assets capitalized in 2025 was $ 5.5 million as of December 31, 2025 (2024 — $ 7.0 million). During 2025, the Company incurred costs of $ 0.3 million to renew or extend the term of acquired patents and trademarks which were recorded in Selling, General and Administrative expenses (2024 — $ 0.5 million; 2023 — $ 0.4 million). 101 Table of Contents Fully amortized other intangible assets are still in use by the Company. In 2025, the Company identified and wrote off $ 0.6 million (2024 — $ 3.9 million; 2023—$ 1.0 million) of fully amortized patents and trademarks that are no longer in use. The estimated amortization expense for each of the next five years following the December 31, 2025 balance sheet date was as follows: (In thousands of U.S. Dollars) Amount 2026 $ 10,034 2027 7,225 2028 4,796 2029 3,149 2030 1,641 13. Borrowings Revolving Credit Facility Borrowings, Net As of December 31, 2025 and 2024, Revolving Credit Facility Borrowings, Net included the following: December 31, December 31, (In thousands of U.S. Dollars) 2025 2024 Wells Fargo Credit Facility borrowings $ 37,000 $ 37,000 Unamortized debt issuance costs ( 2,423 ) ( 644 ) Revolving Credit Facility Borrowings, net $ 34,577 $ 36,356 Wells Fargo Credit Agreement The Company was a party to a Sixth Amended and Restated Credit Agreement, dated March 25, 2022 (the “Credit Agreement”), that provided for a credit facility (the “Credit Facility”). 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 facility under the New Credit Agreement (the “New Credit Facility”) matures on July 14, 2030. The Company’s obligations under the New 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 New Credit Agreement provides for a revolving borrowing capacity of $ 375.0 million, and contains an uncommitted accordion feature that allows the Company to further increase its borrowing capacity by the greater of $ 140.0 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 New Credit Agreement requires that the Company does not exceed a maximum Senior Secured Net Leverage Ratio (as defined therein) of 3.25 :1.00 which may be increased under certain circumstances and is tested on the last day of each fiscal quarter. The Company was in compliance with this requirement as of December 31, 2025 as the Senior Secured Net Leverage Ratio was 0.00 :1.00. Loans under the New Credit Facility bear interest, at the Company’s option, at (i) Term Secure Overnight Financing Rate (“Term SOFR”), Eurocurrency Rate, or Canadian Dollar Offered Rate (“CDOR”) 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 CDOR be less than 0.00 % per annum. As of December 31, 2025, borrowings under the Credit Facility were $ 37.0 million (December 31, 2024 — $ 37.0 million) and bore interest at Term SOFR, plus a margin up to 1.50 % per annum (December 31, 2024 — 1.75 %) based on the Company’s total leverage ratio. The effective interest rate for the year ended December 31, 2025 was 6.07 % (2024 — 6.96 %). 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 customary representations, warranties, and event of default provisions for a transaction of this type. 102 Table of Contents The Company incurred fees of approximately $ 2.2 million in connection with the New Credit Agreement, which are being amortized on a straight-line basis over the term of the New Credit Agreement. As of December 31, 2025 and 2024, the Company had no letters of credit or advance payment guarantees outstanding under the New Credit Facility. As of December 31, 2025, the amount available for future borrowings under the New Credit Facility was $ 338.0 million (2024 — $ 263.0 million under the previous Credit Facility). Foreign Exchange Facility Within the New Credit Facility, the Company is able to purchase foreign currency forward contracts and/or other swap arrangements. As of December 31, 2025, the net unrealized gain on the Company’s outstanding foreign currency forward contracts was $ 1.0 million, representing the amount by which the fair value of these forward contracts exceeded their nominal value (2024 — net unrealized loss of $ 2.0 million; 2023 — net unrealized gain of $ 0.8 million). As of December 31, 2025, the notional value of the Company’s outstanding foreign currency forward contracts was $ 48.4 million (December 31, 2024 — $ 48.4 million). Bank of China Facility In June 2022, IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”), one of the Company’s majority-owned subsidiaries in China, renewed its unsecured revolving facility with Bank of China for up to 200.0 million Chinese Renminbi (“RMB”) ($ 28.5 million), including RMB 10.0 million ($ 1.4 million) for letters of guarantee, to fund ongoing working capital requirements (the “Bank of China Facility”). The Bank of China Facility has been renewed to March 20, 2026. As of December 31, 2025, no borrowings were outstanding under the Bank of China Facility and outstanding letters of guarantee were RMB 1.0 million ($ 0.1 million). As of December 31, 2025, the amount available for future borrowings under the Bank of China Facility was RMB 190.0 million ($ 27.1 million) and the amount available for letters of guarantee was RMB 9.0 million ($ 1.3 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 year ended December 31, 2025 was 0 % (2024 — 0 %). There were no amounts drawn under the Bank of China Facility during the year ended December 31, 2025. HSBC China Facility In June 2022, IMAX Shanghai entered into an unsecured revolving facility for up to RMB 200.0 million ($ 28.5 million) with HSBC Bank (China) Company Limited, Shanghai Branch to fund ongoing working capital requirements (the “HSBC China Facility”). As of December 31, 2025 and 2024, no borrowings were outstanding under the HSBC China facility. As of December 31, 2025, the amount available for future borrowings under the HSBC China Facility was RMB 200.0 million ($ 28.5 million). The effective interest rate for the year ended December 31, 2025 was 0 % (2024 — 0 %). There were no amounts drawn under the HSBC China Facility during the year ended December 31, 2025. NBC Facility In October 2019, the Company entered into a $ 5.0 million facility with National Bank of Canada (the “NBC Facility”) fully insured by Export Development Canada for use solely in conjunction with the issuance of performance guarantees and letters of credit. In October 2025, the NBC Facility was renewed to October 8, 2026. The NBC Facility is renewable on the same terms and conditions on an annual basis. The Company did not have any letters of credit or advance payment guarantees outstanding as of December 31, 2025 and 2024 under this facility. Convertible Notes and Other Borrowings, Net As of December 31, 2025 and December 31, 2024, Convertible Notes and Other Borrowings, Net included the following: 103 Table of Contents December 31, December 31, (In thousands of U.S. Dollars) 2025 2024 Convertible Notes $ 250,743 $ 230,000 Unamortized discounts and debt issuance costs ( 7,636 ) ( 1,864 ) Convertible Notes, net 243,107 228,136 Federal Economic Development Loan 1,027 2,056 Unaccreted interest benefit ( 100 ) ( 291 ) Federal Economic Development Loan, net 927 1,765 Convertible Notes and Other Borrowings, net $ 244,034 $ 229,901 2026 Convertible Notes On March 19, 2021, the Company issued $ 230.0 million of 0.500 % Convertible Senior Notes due 2026 (the “2026 Convertible Notes”) in a private placement conducted pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2026 Convertible Notes are senior unsecured obligations of the Company and bear interest at a rate of 0.500 % per annum on the principal of $ 230.0 million, payable semi-annually in arrears on April 1 and October 1 of each year. The 2026 Convertible Notes will mature on April 1, 2026, unless redeemed or repurchased by the Company or converted on an earlier date. On November 6, 2025, the Company completed the repurchase of $ 229.3 million (or 99.7 %) of the outstanding principal amount of the 2026 Convertible Notes in separate, privately negotiated repurchase transactions with a limited number of holders for an aggregate repurchase price of approximately $ 275.5 million, which included accrued and unpaid interest of $ 0.1 million. The repurchase was funded by the issuance of new notes, as described below under “2030 Convertible Notes” and borrowings under the Company’s New Credit Facility. The Company accounted for the notes repurchase as induced conversions and recognized a $ 31.5 million charge to Other Equity and $ 15.3 million of fair value, representing the consideration paid to holders of the 2026 Convertible Notes in excess of the value to which they were entitled to receive pursuant to the original conversion terms, was recorded within Induced conversion expense on settlement of convertible notes in the Company’s Consolidated Statements of Operations. From and after January 1, 2026, holders of the remaining outstanding 2026 Convertible Notes may convert their 2026 Convertible Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Effective January 1, 2026, the Company made an irrevocable election to settle the principal portion and any applicable conversion premiums of the 2026 Convertible Notes only in cash. In connection with the pricing of the 2026 Convertible Notes, the Company entered into privately negotiated capped call transactions (the “2026 Capped Call Transactions”) with certain financial institutions to reduce potential dilution in connection with the redemption of the 2026 Convertible Notes. In connection with the repurchase of the 2026 Convertible Notes, the Company received $ 30.7 million in cash in connection with settling certain 2026 Capped Call Transactions. As the Capped Call Transactions were classified as equity, the proceeds from settlement of these Capped Calls were recorded to Other Equity within Shareholders’ Equity in the Company’s Consolidated Statements of Shareholders’ Equity and on the Consolidated Balance Sheets. The remaining outstanding 2026 Capped Call Transactions will expire on April 1, 2026 unless exercised earlier. 2030 Convertible Notes On November 6, 2025, the Company issued $ 250.0 million of 0.750 % Convertible Senior Notes due 2030 (the “2030 Convertible Notes”) in a private placement conducted pursuant to Rue 144A under the Securities Act of 1933, as amended. The net proceeds from the issuance of the 2030 Convertible Notes were $ 243.1 million, after deducting the initial purchasers’ discounts and commissions. The 2030 Convertible Notes are senior unsecured obligations of the Company and bear interest at a rate of 0.750 % per annum on the principal of $ 250.0 million, payable semi-annually in arrears on May 15 and November 15 of each year. The 2030 Convertible Notes will mature on November 15, 2030, unless they are redeemed or repurchased by the Company or converted on an earlier date. Holders may convert their notes at their option in the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on March 31, 2026 (and only during such calendar quarter), if the last reported sale price per common share of the Company, no par value (“common shares”), exceeds 130 % of 104 Table of Contents the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; • during the five consecutive business days immediately after any ten consecutive trading day period (such ten consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price per common share on such trading day and the conversion rate on such trading day; • upon the occurrence of certain corporate events or distributions on the common shares, as provided in the Indenture; • if the Company calls such notes for redemption; and • at any time from, and including, August 15, 2030 until the close of business on the second scheduled trading day immediately before the maturity date. Upon conversion, the Company will pay or deliver, as applicable, cash or a combination of cash and common shares, at its election, based on the applicable conversion rates. The initial conversion rate is 23.5743 common shares per $1,000 principal amount of 2030 Convertible Notes, which represents an initial conversion price of approximately $ 42.42 per common share, and is subject to adjustment upon the occurrence of certain events. In addition, upon the occurrence of a “fundamental change” (as defined below), holders may require the Company to repurchase their 2030 Convertible Notes at a cash repurchase price equal to the principal amount of the 2030 Convertible Notes to be repurchased, plus accrued and unpaid interest, if any. Subject to the terms and conditions of the indenture governing the 2030 Convertible Notes, a “fundamental change” means, among other things, an event resulting in (i) a change of control, (ii) a transfer of all or substantially all of the assets of the Company, (iii) a merger, (iv) liquidation or dissolution of the Company, or (v) delisting of the Company’s common shares from a national securities exchange. In connection with the pricing of the 2030 Convertible Notes, the Company entered into privately negotiated capped call transactions (the “2030 Capped Call Transactions”) with certain financial institutions. The 2030 Capped Call Transactions are expected to reduce potential dilution resulting from the common shares the Company is required to issue and/or to offset any potential cash payments the Company is required to make in excess of the principal amount of the 2030 Convertible Notes in the event that the market price per share of the Company’s common shares is greater than the strike price of the Capped Call Transactions with such reduction and/or offset subject to a cap. The 2030 Capped Call Transactions have an initial cap price of $ 57.1025 per share of the Company’s common shares, which represents a premium of 75 % over the last reported sale price of the common shares when they were priced on November 3, 2025, and are subject to certain adjustments under the terms of the 2030 Capped Call Transactions. Collectively, the 2030 Capped Call Transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the 2030 Convertible Notes, the number of the Company’s common shares underlying the 2030 Convertible Notes. The cost of the 2030 Capped Call Transactions was approximately $ 21.9 million, recorded to Other Equity within Shareholders’ Equity in the Company’s Consolidated Statements of Shareholders’ Equity and on the Consolidated Balance Sheets. The 2026 Convertible Notes and the 2030 Convertible Notes are together referred to as the “Convertible Notes”. The 2026 Capped Call Transactions and the 2030 Capped Call Transactions are together referred to as the “Capped Call Transactions”. The Capped Call Transactions are separate transactions, are not part of the terms of the Convertible Notes and will not affect any holder’s rights under the Convertible Notes. Holders of the Convertible Notes will not have any rights with respect to the Capped Call Transactions. The Capped Call Transactions meet all of the applicable criteria for equity classification in accordance with ASC 815-10-15-74(a), “Derivatives and Hedging — Embedded Derivatives — Certain Contracts Involving an Entity’s Own Equity,” and, as a result, the related cost was recorded as a reduction to Other Equity within Shareholders’ Equity in the Company’s Consolidated Statements of Shareholders’ Equity and on the Consolidated Balance Sheets. The Company continues to record the Convertible Notes entirely as a liability on the Consolidated Balance Sheets, net of initial purchasers’ discounts and commissions and other debt issuance costs, with interest expense reflecting the cash coupon plus the amortization of the discounts and capitalized costs. Additionally, under the “if-converted” method, because the principal amount of the Convertible Notes is settled in cash and the conversion spread is settleable in the Company’s common shares, diluted earnings per share is calculated by including the net number of incremental shares that would be issued upon conversion of the Convertible Notes, using the average market price during the period. Accordingly, the application of the “if-converted” method may reduce the Company’s reported diluted earnings per share. 105 Table of Contents Federal Economic Development Loan The Company’s wholly-owned subsidiary, SSIMWAVE Inc., entered into a contribution agreement with the Federal Economic Development Agency for Southern Ontario (the “Federal Economic Development Loan”) on May 29, 2019, under which SSIMWAVE Inc. received $ 4.2 million Canadian Dollars ($ 3.2 million) by way of repayable contributions toward certain eligible projects costs. The contributions under the agreement covered 35 % of the eligible and supported costs of SSIMWAVE Inc. between January 10, 2019 and December 31, 2022. The contributions were repayable over 60 months, with repayments beginning in January 2024 and an annual interest rate of 0 %. On January 1, 2024, SSIMWAVE Inc. was amalgamated into the Company. On January 4, 2024, the Federal Economic Development Loan was assigned to the Company with an amendment to the repayment term. The contributions under the assigned agreement are repayable over 36 months beginning January 2024, with an annual interest rate of 0 %. The benefit of the interest-free loan has been determined by calculating the present value of the payments using a market-based interest rate and comparing this to the proceeds received. The benefit is recorded as the interest-free benefit of government funding within Interest Income in the Company’s Consolidated Statements of Operations. The obligation is being accreted to its maturity amount, resulting in an interest accretion expense of $ 0.2 million in 2025 (2024 — $ 0.3 million; 2023 — $ 0.5 million) which is being recorded within Interest Expense in the Company’s Consolidated Statements of Operations. As of December 31, 2025, the Federal Economic Development Loan had a carrying value of $ 0.9 million, net of unaccreted interest benefit and was recorded within Convertible Notes and Other Borrowings, Net on the Company’s Consolidated Balance Sheets. 106 Table of Contents 14. Commitments In the ordinary course of its business, the Company enters into contractual agreements with third parties that include non-cancelable payment obligations, for which it is liable in future periods. These arrangements can include terms binding the Company to minimum payments and/or penalties if it terminates the agreement for any reason other than an event of default as described by the agreement. The following table presents a summary of the Company’s contractual obligations and commitments as of December 31, 2025: Payments Due by Years (In thousands of U.S. Dollars) Total Obligation Less Than One Year 1 to 3 years 3 to 5 years Thereafter Purchase obligations (1) $ 28,557 $ 23,480 $ 4,945 $ 132 $ — Pension obligations (2) 20,298 — 20,298 — — Operating lease obligations (3) 12,404 3,327 6,343 2,728 6 Credit Facility 37,000 37,000 — — — Federal Economic Development Loan (4) 1,027 1,027 — — — 2026 Convertible Notes (5) 745 745 — — — 2030 Convertible Notes (6) 259,422 1,922 3,750 253,750 — Postretirement benefits obligations 1,831 96 196 229 1,310 Total $ 361,284 $ 67,597 $ 35,532 $ 256,839 $ 1,316 (1) Represents total payments to be made under binding commitments with suppliers and outstanding payments to be made for supplies ordered, but yet to be invoiced. (2) The Company has an unfunded defined benefit pension plan covering its Chief Executive Officer. (Refer to Note 22.) (3) Represents total minimum annual rental payments due under the Company’s operating leases. (Refer to Note 5.) (4) The Federal Economic Development Loan is repayable over 36 months, with repayments commencing January 2024. (Refer to “Borrowings — Convertible Notes and Other Borrowings, Net” in Note 13.) (5) The Convertible Notes bear interest at a rate of 0.500 % per annum on the principal of $ 0.7 million, payable semi-annually in arrears on April 1 and October 1 of each year. The Convertible Notes will mature on April 1, 2026, unless repurchased, redeemed or converted. (Refer to “Borrowings — Convertible Notes and Other Borrowings, Net” in Note 13.) (6) The Convertible Notes bear interest at a rate of 0.750 % per annum on the principal of $ 250.0 million, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on May 15, 2026. The Convertible Notes will mature on November 15, 2030 unless earlier repurchased, redeemed or converted. (Refer to “Borrowings — Convertible Notes and Other Borrowings, Net” in Note 13.) The Company compensates its sales force with both fixed and variable compensation. Commissions on the sale or lease of IMAX Systems are payable in graduated amounts from the time of collection of the customer’s first payment to the Company up to the collection of the customer’s last initial payment. As of December 31, 2025, $ 1.7 million (December 31, 2024 — $ 2.9 million) of commissions had been accrued and would be payable in future periods. 15. Contingencies and Guarantees The Company is involved in lawsuits, claims, and proceedings, including those identified below, which arise in the ordinary course of business. Management is required to assess the likelihood of any adverse judgments or outcomes related to these legal contingencies, as well as potential ranges of probable or reasonably possible losses. The Company records a provision for a liability when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The determination of the amount of any liability recorded or disclosed is reviewed at least quarterly based on a careful analysis of each individual exposure with, in some cases, the assistance of outside legal counsel, taking into account the impact of negotiations, settlements, rulings, and other pertinent information related to the case. The amount of liabilities recorded or disclosed for these contingencies may change in the future due to changes in management’s judgments resulting from new developments or changes in settlement strategy. Any resulting adjustment to the liabilities recorded by the Company could have a material adverse effect on its results of operations, cash flows, and financial position in the period or periods in which such changes in judgment occur. The Company believes it has adequate provisions for any such matters. The Company expenses legal costs relating to its lawsuits, claims, and proceedings as incurred. 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”). On March 27, 2008, the arbitration panel issued a final award in favor of the Company in the amount of $ 11.3 million, as well as an additional $ 2,512 each day in interest from October 1, 2007 until the date the award is paid. In July 2008, E-City commenced a proceeding in Mumbai, India seeking to prevent recognition of the ICC award in India. On March 10, 2017, the Supreme Court of India dismissed E-City’s petition. On March 29, 2017, the Company filed an Execution Application in the Bombay High Court seeking to enforce the ICC award against E-City and several related parties. In an order dated November 14, 2024, the Bombay High Court dismissed the 107 Table of Contents Company’s application. On December 13, 2024, the Company filed an appeal of this order, and on December 30, 2025, the Commercial Appellate Division of the Bombay High Court reversed the 2024 dismissal, rejected E-City’s objections to enforcement of the arbitration award, and recognized the award as a decree of the Court. The Court directed the parties to appear before an Executing Court to proceed with execution of the award. On January 6, 2026, two of the E-City respondents filed a Special Leave Petition requesting that the Supreme Court of India hear an appeal of the matter. The Company fully intends to continue pursuing its rights and seeking to enforce the arbitration award. No amounts have been recognized in connection with this matter. Financial Guarantees Certain subsidiaries of the Company have provided significant financial guarantees to third parties under the Credit Agreement. (Refer to “Borrowings — Convertible Notes and Other Borrowings, Net” in Note 13.) Product Warranties The Company’s accrual for product warranties, which is recorded within Accrued and Other Liabilities on the Consolidated Balance Sheets, wa s $ nil a nd $ 0.1 million as of December 31, 2025 and 2024, respectively. Director/Officer Indemnifications The Company’s by-laws contain an indemnification of its directors/officers, former directors/officers, and persons who have acted at its request to be a director/officer of an entity in which the Company is a shareholder or creditor, to indemnify them, to the extent permitted by the Canada Business Corporations Act , against expenses (including legal fees), judgments, fines and any amounts actually and reasonably incurred by them in connection with any action, suit or proceeding in which the directors and/or officers are sued as a result of their service, if they acted honestly and in good faith with a view to the best interests of the Company. In addition, the Company has entered into indemnification agreements with each of its directors in order to effectuate the foregoing. The nature of the indemnification prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to counterparties. The Company has purchased directors’ and officers’ liability insurance. No amount had been accrued on the Company’s Consolidated Balance Sheets as of December 31, 2025 and December 31, 2024 with respect to this indemnity. Other Indemnification Agreements In the normal course of its operations, the Company provides indemnifications to counterparties in transactions such as: IMAX System lease and sale agreements and the supervision of installation or servicing of IMAX Systems; film production, exhibition and distribution agreements; real property lease agreements; and employment agreements. These indemnification agreements require the Company to compensate the counterparties for costs incurred as a result of litigation claims that may be suffered by the counterparty as a consequence of the transaction or the Company’s breach or non-performance under these agreements. While the terms of these indemnification agreements vary based upon the contract, they normally extend for the life of the agreements. A small number of agreements do not provide for any limit on the maximum potential amount of indemnification; however, virtually all of the IMAX System lease and sale agreements limit such maximum potential liability to the purchase price of the system. The fact that the maximum potential amount of indemnification required by the Company is not specified in some cases prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to counterparties. Historically, the Company has not made any significant payments under such indemnifications and no amounts have been accrued in the Consolidated Financial Statements with respect to the contingent aspect of these indemnities. 16. Capital Stock Authorized Common Shares The authorized capital of the Company consists of an unlimited number of common shares. The following is a summary of the rights, privileges, restrictions, and conditions of the common shares. The holders of common shares are entitled to receive dividends, if and when declared by the directors of the Company, subject to the rights of the holders of any other class of shares of the Company entitled to receive dividends in priority to the common shares. The holders of the common shares are entitled to one vote for each common share held at all meetings of the shareholders. Settlements of Share-Based Compensation During the years ended December 31, 2025, 2024, and 2023, the Company settled the exercise of stock options and the vesting of PSUs and RSUs with its common shares. These settlements were either through newly issued common shares from treasury or through 108 Table of Contents the purchase of common shares in the open market by the IMAX LTIP trustee. The following table summarizes the settlement of stock option, PSU and RSU transactions: Years Ended December 31, 2025 2024 2023 Stock Options Issued from treasury 179,958 248,763 — Total stock options exercised 179,958 248,763 — PSUs Issued from treasury 267,314 190,914 233,306 Shares withheld for tax withholdings 195,898 125,312 135,296 Total PSUs vested 463,212 316,226 368,602 RSUs Issued from treasury 528,204 521,010 514,383 Shares withheld for tax withholdings 191,573 182,409 232,749 Total RSUs vested 719,777 703,419 747,132 Share-Based Compensation The Company issues share-based compensation to eligible employees, directors, and consultants under the IMAX LTIP and the China LTIP, as summarized below. On June 3, 2020, the Company’s shareholders approved the IMAX LTIP at its Annual and Special Meeting. Awards under the IMAX LTIP may consist of stock options, RSUs, PSUs, and other awards. As of December 31, 2025, the Company only issued RSUs and PSUs under the IMAX LTIP. For the year ended December 31, 2025, share-based compensation expense totaled $ 26.6 million (2024 — $ 22.8 million; 2023 — $ 23.6 million) and is reflected in the following accounts in the Consolidated Statements of Operations: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Costs and expenses applicable to revenues $ 1,367 $ 1,173 $ 850 Selling, general and administrative expenses 24,420 20,897 22,534 Research and development 791 751 434 Restructuring charges and other impairments — — ( 267 ) Total $ 26,578 $ 22,821 $ 23,551 As of December 31, 2025, the Company had reserved a total of 4,203,883 (December 31, 2024 — 5,032,849 ) common shares for future issuance under the IMAX LTIP. Of this amount, 1,818,698 common shares are reserved for the future exercise of stock options (December 31, 2024 — 2,469,238 ), 1,140,515 common shares are reserved for the future vesting of PSUs (December 31, 2024 — 1,097,634 ), and 1,244,670 common shares are reserved for the future vesting of RSUs (December 31, 2024 — 1,465,977 ). IMAX LTIP and SOP Stock Options The Company’s policy is to issue new common shares from treasury or shares purchased in the open market to satisfy stock options which are exercised. Prior to 2020, the Company issued stock options under the Company’s Stock Option Plan (the “SOP”) as share-based compensation. The Company no longer grants stock option awards as share-based compensation under the IMAX LTIP and SOP. All stock options issued under the SOP have vested and expire 10 years or less from the date of the grant. The SOP and IMAX LTIP provide for double-trigger accelerated vesting in the event of a change in control, as defined in each plan. The Company recorded the following expenses related to stock options issued to employees and directors under the SOP: 109 Table of Contents Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Stock option expense $ — $ — $ 84 For the years ended December 31, 2025, 2024 and 2023, respectively, the Company’s Consolidated Statements of Operations did not include an income tax benefit related to stock option expense. During the years ended December 31, 2025, 2024, and 2023, the Company did not grant any stock options. The following table summarizes the stock option activity under the SOP and IMAX LTIP for the years ended December 31, 2025, 2024, and 2023: Number of Shares Weighted Average Exercise Price Per Share 2025 2024 2023 2025 2024 2023 Stock options outstanding, beginning of year 2,469,238 3,329,422 3,604,739 $ 26.27 $ 26.23 $ 26.36 Granted — — — — — — Exercised ( 179,958 ) ( 248,763 ) — 22.26 21.27 — Forfeited — — — — — — Expired ( 470,582 ) ( 607,114 ) ( 275,317 ) 29.53 28.15 27.95 Cancelled — ( 4,307 ) — — 22.70 — Stock options outstanding, end of year 1,818,698 2,469,238 3,329,422 25.82 26.27 26.23 Stock options exercisable, end of year 1,818,698 2,469,238 3,329,422 25.82 26.27 26.23 As of December 31, 2025, 1,818,698 options outstanding, which are fully vested and exercisable, with a weighted average exercise price of $ 25.82 , an aggregate intrinsic value of $ 20.3 million and a weighted average remaining contractual life of 1.7 years. The intrinsic value of options exercised in 2025 was $ 1.7 million (2024 —$ 0.9 million; 2023 — $ nil ). IMAX LTIP Restricted Share Units RSUs have been granted to employees and directors under the IMAX LTIP. Each RSU represents a contingent right to receive a common share and is the economic equivalent of one common share. The grant date fair value of each RSU is equal to the share price of the Company’s stock at the grant date or the average closing price of the Company’s common share for five days prior to the date of grant. For the years ended December 31, 2025, 2024, and 2023, the Company recorded the following expenses related to RSUs issued to employees and directors in the IMAX LTIP: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 RSU expenses $ 15,160 $ 12,924 $ 12,612 The Company’s actual tax benefits realized for the tax deductions related to the vesting of RSUs was $ 1.3 million for the year ended December 31, 2025 (2024 — $ 0.7 million; 2023 — $ 0.8 million). The Company’s accrued liability for granted RSUs was $ 1.4 million as of December 31, 2025 (December 31, 2024 — $ 2.6 million). Total share-based compensation expense related to non-vested RSUs not yet recognized and the weighted average period over which the awards are expected to be recognized are as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Expense related to non-vested RSUs not yet recognized $ 20,278 $ 14,750 $ 16,256 Weighted average period awards are expected to be recognized (in years) 1.4 1.7 1.7 110 Table of Contents The following table summarizes the activity in respect of RSUs issued under the IMAX LTIP for the years ended December 31, 2025, 2024, and 2023: Number of Awards Weighted Average Grant Date Fair Value Per Share 2025 2024 2023 2025 2024 2023 RSUs outstanding, beginning of year 1,465,977 1,286,830 1,252,044 $ 17.16 $ 18.53 $ 19.16 Granted 559,775 950,342 900,199 25.29 16.46 17.82 Vested and settled ( 719,777 ) ( 703,419 ) ( 747,132 ) 18.17 18.63 18.65 Forfeited ( 61,305 ) ( 67,776 ) ( 118,281 ) 20.03 17.94 19.12 RSUs outstanding, end of year 1,244,670 1,465,977 1,286,830 20.10 17.16 18.53 Historically, RSUs granted under the IMAX LTIP have vested between immediately and 3 years from the grant date. On June 3 2020, the IMAX LTIP was amended to require a minimum vesting period of one year on future RSU grants, with a carve-out for an aggregate of no more than 5 % of the total number of common shares authorized for issuance under the plan that may vest on a shorter schedule. Vesting of the RSUs is subject to continued employment or service with the Company. The following table summarizes the number of RSUs issued from the carve-out balance: Number Approved under the IMAX LTIP 1,030,000 Issued during previous years ( 703,900 ) Issued during 2025 ( 44,863 ) Outstanding, December 31, 2025 281,237 Restricted Share Units to Non-Employees The Company issued 2,200 RSUs to a strategic advisor in 2025 (2024 — 24,982 ; 2023 — nil ), which were fully vested as of December, 31, 2025. These RSUs had a weighted average grant date fair value per share of $ 25.00 and an expense of $ 0.1 million in the year ended December 31, 2025. The Company issued 42,663 RSUs to Directors in 2025 (2024 — 73,533 ; 2023 — 63,443 ). These RSUs had a weighted average grant date fair value per share of $ 27.42 (2024 — $ 15.91 ; 2023 — $ 18.44 ) and an expense of $ 1.2 million for the year ended December 31, 2025 (2024 — $ 1.2 million; 2023 — $ 1.2 million) These expenses are included in the above expense and carve-out tables. IMAX LTIP Performance Stock Units Summary The Company grants two types of PSUs 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 TSR targets. The achievement of the Adjusted EBITDA and TSR targets in these PSUs is determined over a three-year performance period. For PSUs granted as of December 31, 2025, 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, at the end of the three-year performance period. 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 111 Table of Contents 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. For the years ended December 31, 2025, 2024, and 2023, the Company recorded the following expenses related to outstanding PSUs, which includes adjustments reflecting management’s estimate of the number of PSUs with Adjusted EBITDA targets expected to vest: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 PSU expenses $ 9,708 $ 8,619 $ 7,859 The Company’s actual tax benefits realized for the tax deductions related to the vesting of PSUs was $ 0.4 million for the year ended December 31, 2025 (2024 ― $ 0.2 million; 2023 ― $ 0.3 million). Total share-based compensation expense related to non-vested PSUs not yet recognized and the weighted average period over which the awards are expected to be recognized are as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Expense not yet recognized related to non-vested PSUs $ 13,042 $ 9,644 $ 10,907 Weighted average period awards are expected to be recognized (in years) 1.9 1.7 1.8 The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP: Number of Awards Weighted Average Grant Date Fair Value Per Share 2025 2024 2023 2025 2024 2023 PSUs outstanding, beginning of year 1,097,634 922,621 931,716 $ 17.99 $ 19.16 $ 18.96 Granted (1)(2) 555,247 580,336 585,602 24.19 17.50 17.69 Vested and settled (1)(2) ( 463,212 ) ( 316,226 ) ( 368,602 ) 19.88 19.71 16.92 Forfeited (3) ( 49,154 ) ( 89,097 ) ( 226,095 ) 20.85 20.85 18.19 PSUs outstanding, end of year 1,140,515 1,097,634 922,621 20.12 17.99 19.16 (1) For the year ended December 31, 2025, the balance of shares granted includes 159,376 (2024 ― 135,511 ; 2023 ― 157,963 ) additional shares, at a weighted average grant date fair value per share of $ 19.18 (2024 ― $ 19.71 ; 2023 ― $ 16.92 ), as PSUs granted in 2022 (2024 ― 2021; 2023 ― 2020) with Adjusted EBITDA targets vested at 175 % on account of full achievement of the targets. (2) For the year ended December 31, 2025, the balance of shares granted includes 17,375 (2024 ― nil ; 2023 ― nil ) additional shares at a weighted grant date fair value per share of $ 22.72 (2024 ― $ nil ; 2023 ― $ nil ), as PSUs granted in 2022 (2024 ― 2021; 2023 ― 2020) with TSR targets vested at 123.5 % based on actual performance versus the targets. (3) In 2023, forfeited PSUs include the TSR awards granted in 2020 which did not vest as the market condition was not satisfied. The Company recorded an expense of $ 1.5 million associated with these 104,633 shares that has not been reversed at the time of forfeiture. As of December 31, 2025, the maximum number of shares of common stock that may be issued with respect to PSUs outstanding was 1,914,989 , assuming full achievement of the Adjusted EBITDA and TSR targets. China Long-Term Incentive Plan Each stock option (“China Option”), RSU, or PSU issued under the China LTIP represents an opportunity to participate economically in the future growth and value creation of IMAX China. In connection with the IMAX China IPO and in accordance with the China LTIP, IMAX China adopted a post-IPO share option plan and a post-IPO restricted stock unit plan. Pursuant to these plans, IMAX China has issued additional China Options, China LTIP Performance Stock Units (“China PSUs”), and China LTIP Restricted Share Units (“China RSUs”). 112 Table of Contents For the years ended December 31, 2025, 2024, and 2023, share-based compensation expense related to China Options, China RSUs and China PSUs was as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Expense China Options $ — $ — $ 12 China RSUs 1,416 1,243 2,337 China PSUs 294 35 647 Total $ 1,710 $ 1,278 $ 2,996 Issuer Purchases of Equity Securities On June 12, 2017, the Company announced that the Board of Directors approved a $ 200.0 million share repurchase program for its common shares that would have initially expired on June 30, 2020, which was subsequently extended and increased in the total share repurchase authority to $ 400.0 million. 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 $ 100.0 million, the Company’s total share repurchase authority is $ 500.0 million under the current share repurchase program. As of December 31, 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. The following table summarizes the Company’s share repurchases during the years ended December 31, 2025 and 2024: Total Number of Shares Repurchased Average Price Paid Per Share 2025 2024 2025 2024 Shares repurchased — 1,166,370 $ — $ 13.99 For the years ended December 31, 2025 and 2024, there were no shares purchases in the administration of employee share based plans. As of December 31, 2025, 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 Consolidated Balance Sheets. In 2024, IMAX China’s shareholders granted its Board of Directors a general mandate authorizing IMAX China’s Board of Directors, subject to applicable laws, to repurchase shares of IMAX China not to exceed 10 % of the total number of issued shares as of June 7, 2024 ( 34,000,845 shares). This program expired on the date of the 2025 Annual General Meeting of IMAX China on June 12, 2025. 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 issued shares as of June 12, 2025 ( 33,919,122 shares). This program will be valid until the 2026 Annual General Meeting of IMAX China. The repurchases may be made in the open market or through other means permitted by applicable laws. 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. In 2025, IMAX China repurchased 1,495,900 (2024 ― 119,900 ) common shares at an average price of HKD 7.56 per share ($ 0.96 per share) for a total of HKD 11.3 million or U.S. $ 1.4 million (2024 ― HKD 7.43 per share or $ 0.95 per share, for a total of HKD 0.9 million or U.S $ 0.1 million). The change in non-controlling interest as a result of common shares repurchased by IMAX China is recorded within Non-Controlling Interest on the Consolidated Balance Sheets and in the 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 on the Consolidated Balance Sheets and in the Consolidated Statements of Shareholders’ Equity (Refer to “Summary of Significant Accounting Policies — Principles of Consolidation ” in Note 2.) 113 Table of Contents The following table summarizes the IMAX China’s share repurchases during the years ended December 31, 2025 and 2024: Total Number of Shares Repurchased Average Price Paid Per Share 2025 2024 2025 2024 Shares repurchased 1,495,900 119,900 $ 0.96 $ 0.95 Basic and Diluted Weighted Average Shares Outstanding The following table reconciles the denominator of the basic and diluted weighted average share computations: Years Ended December 31, (In thousands) 2025 2024 2023 Issued and outstanding, beginning of year 52,946 53,260 54,149 Weighted average number of shares issued (repurchased), net 690 ( 610 ) 161 Weighted average number of shares outstanding - basic 53,636 52,650 54,310 Weighted average effect of potential common shares, if dilutive 1,908 1,214 836 Weighted average number of shares outstanding - diluted 55,544 53,864 55,146 For the year ended December 31, 2025, the calculation of diluted earnings per share excluded 1,908,128 (2024 ― 1,213,884 ; 2023 ― 3,380,142 ) shares that were issuable upon the vesting of 623,584 RSUs (2024 ― 416,778 ; 2023 ― 18,877 ), the vesting of 993,732 PSUs (2024 ― 796,186 ; 2023 ― 31,843 ), and the exercise of 290,812 stock options (2024 ― 920 ; 2023 ― 3,329,422 ), as the effect would be anti-dilutive. The calculation of diluted weighted average shares outstanding for the year ended December 31, 2025 also excluded 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. (Refer to “Borrowings — C onvertible Notes and Other Borrowings, Net ” in Note 13.) Statutory Surplus Reserve Pursuant to the corporate law of the People’s Republic of China (“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. The Company’s PRC subsidiaries are required to appropriate 10 % of statutory net profits to statutory surplus reserves, upon distribution of their after-tax profits. The Company’s PRC subsidiaries may discontinue the contribution when the aggregate sum of the statutory surplus reserve is more than 50 % of their registered capital. The statutory surplus reserve is non-distributable other than during liquidation and may only be used to fund losses from prior years, to expand production operations, or to increase the capital of the subsidiaries. In addition, the subsidiaries may make further contribution to the discretional surplus reserve using post-tax profits in accordance with resolutions of the Board of Directors. The statutory surplus reserve of RMB 37.7 million ($ 5.8 million) has reached 50 % of its PRC subsidiaries’ registered capital, as such no further contributions to the reserve are required. 114 Table of Contents 17. Consolidated Statements of Operations Supplemental Information 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 Consolidated Statements of Operations, for the years ended December 31, 2025, 2024, and 2023: Years Ended December 31, 2025 2024 2023 (In thousands of U.S. Dollars) Sales Commissions Marketing and Other Sales Commissions Marketing and Other Sales Commissions Marketing and Other Technology sales (1) $ 1,700 $ 357 $ 1,478 $ 736 $ 1,575 $ 1,103 Image enhancement and maintenance services (2) — 17,867 — 15,030 — 15,200 Technology rentals (3) 697 1,907 933 2,204 478 734 Total $ 2,397 $ 20,131 $ 2,411 $ 17,970 $ 2,053 $ 17,037 (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 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 year ended December 31, 2025 was a foreign currency net loss of less than $ 0.1 million (2024 — net loss of $ 1.2 million; 2023 — net loss of $ 0.7 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 21 for additional information. Collaborative Arrangements Joint Revenue Sharing Arrangement Refer to Note 5 for a description of the material terms of the Company’s collaborative JRSAs. The accounting policy for the Company’s JRSAs is disclosed in “Summary of Significant Accounting Policies — Revenue Recognition ” in Note 2. 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 year ended December 31, 2025, such revenues totaled $ 81.3 million (2024 — $ 62.2 million; 2023 — $ 78.2 million). (Refer to “Revenue from Contracts with Customers — Disaggregated Information About Revenue ” in Note 19 for a disaggregated presentation of the Company’s revenues.) Film Remastering and Distribution In a typical IMAX Film Remastering and distribution arrangement, the Company receives a percentage of the box office from a movie studio in exchange for converting a commercial film into the IMAX format and distributing it through the IMAX network. The fee earned by the Company in a typical IMAX Film Remastering and distribution arrangement averages approximately 12.5 % of box office on a gross basis before sales taxes except within Greater China, where the Company often receives a lower percentage of net box office due to an incremental importation fee paid by Hollywood studios. All of the Company’s box office results in this Form 10-K are inclusive of China booking fees to be consistent with market reporting of global box office. The accounting policy for the Company’s Film Remastering and distribution arrangements is disclosed in “Summary of Significant Accounting Policies — Revenue Recognition ” in Note 2. Revenue attributable to transactions arising between the Company and its customers under the Company’s Film Remastering and distribution arrangements are included in Revenues – Image Enhancement and Maintenance Services. For the year ended December 31, 2025, such revenues totaled $ 142.3 million (2024 — $ 100.5 million; 2023 — $ 118.6 million). (Refer to “Revenue from Contracts with Customers — Disaggregated Information About Revenue ” in Note 19 for a disaggregated presentation of the Company’s revenues.) 115 Table of Contents Co-Produced Film Arrangements In certain film arrangements, the Company co-produces a film with a third party whereby the third party retains the copyright and certain other rights to the film. In some cases, the Company obtains exclusive theatrical distribution rights to the film. Under these arrangements, both parties contribute to the funding of the production, distribution and exploitation costs associated with the film. As of December 31, 2025, the Company was party to one co-produced film arrangement, which represents the VIE total assets balance of $ 1.7 million and liabilities balance of $ 0.4 million and four other co-produced film arrangements. The accounting policies relating to co-produced film arrangements are disclosed in “Summary of Significant Accounting Policies — Principles of Consolidation and Revenue Recognition ” in Note 2. In 2025, an expense of $ 0.4 million (2024 — $ 3.3 million; 2023 — $ 0.6 million) attributable to transactions between the Company and other parties involved in the production of the films had been included in Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services. 18. Consolidated Statements of Cash Flows Supplemental Information Changes in other operating assets and liabilities Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 (Increase) decrease in: Financing receivables $ ( 1,543 ) $ 9,975 $ 2,642 Prepaid expenses ( 1,758 ) ( 2,430 ) ( 1,273 ) Variable consideration receivables ( 8,844 ) ( 18,414 ) ( 20,337 ) Other assets ( 6,895 ) ( 3,140 ) ( 10,473 ) (Decrease) increase in: Accounts payable ( 481 ) ( 6,383 ) ( 535 ) Accrued and other liabilities 12,213 ( 14,800 ) ( 6,013 ) Total $ ( 7,308 ) $ ( 35,192 ) $ ( 35,989 ) Cash payments made on account Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Income taxes $ 15,853 $ 14,583 $ 17,812 Interest $ 4,876 $ 5,723 $ 3,930 116 Table of Contents Depreciation and amortization Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Film assets $ 18,500 $ 24,775 $ 20,281 Property, plant and equipment: Equipment supporting joint revenue sharing arrangements 23,166 22,723 22,857 Other property, plant and equipment (1) 9,298 8,793 9,125 Other intangible assets (2) 8,810 6,970 5,952 Other assets (3) 2,672 2,242 1,807 Total $ 62,446 $ 65,503 $ 60,022 (1) Includes the amortization of laser projection systems, camera, and lens upgrades recorded in Research and development in the Statements of Operations of $ 0.4 million in the year ended December 31, 2025 (2024 — $ 0.6 million; 2023 — $ 0.5 million). (2) Includes the amortization of licenses and intellectual property recorded in Research and development in the Consolidated Statements of Operations of $ 1.3 million in the year ended December 31, 2025 (2024 — $ 1.3 million; 2023 — $ 1.3 million). (3) Includes the amortization of lessee incentives provided by the Company to its customers under JRSAs. Write-downs, including goodwill and asset impairments Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Other assets $ 381 $ — $ 144 Inventories (1) 261 359 542 Property, plant and equipment: Equipment supporting joint revenue sharing arrangements (2) 630 3,397 756 Other property, plant and equipment 41 79 31 Goodwill (3) 7,000 — — Other intangible assets 733 129 — Film assets (4) 156 9 411 Total $ 9,202 $ 3,973 $ 1,884 (1) In 2025, the Company recorded write-downs of $ 0.3 million (2024 — $ 0.4 million; 2023 — $ 0.5 million) in Costs and Expenses Applicable to Technology Sales to reduce the carrying value of inventories. (2) In 2025, the Company recorded charges of $ 0.6 million (2024 — $ 3.4 million; 2023 — $ 0.8 million) in Costs and Expenses Applicable to Revenues - Technology Rentals mostly related to the write-down of systems under joint revenue sharing arrangements resulting from contract amendments, as well as the write-downs of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems. (3) In 2025, the Company recorded goodwill impairment losses of $ 7.0 million (2024 — $ nil ; 2023 — $ nil ) related to the SSIMWAVE reporting unit, which is part of the Streaming and Consumer Technology operating segment. (4) In 2025, the Company recorded impairment losses of $ 0.2 million (2024 — less than $ 0.1 million; 2023 — $ 0.4 million) related to the write-down of content-related film assets. Significant non-cash investing activities Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Net decrease in accruals related to: Investment in equipment supporting joint revenue sharing arrangements $ ( 578 ) $ ( 1,127 ) $ ( 600 ) Acquisition of other intangible assets ( 23 ) ( 12 ) ( 942 ) Purchases of property, plant and equipment (1) ( 44 ) ( 93 ) ( 541 ) Net amount $ ( 645 ) $ ( 1,232 ) $ ( 2,083 ) (1) Refer to Note 5 for supplemental disclosure of non-cash leasing activities. 117 Table of Contents Significant non-cash financing activities As of December 31, 2025, the Company had accrued and not yet paid a $ 1.0 million liability on the Consolidated Balance Sheets within Accounts Payable related to debt issuance costs for the issuance of the 2030 Convertible Notes. In the fourth quarter of 2023, the Company recognized a $ 1.6 million liability on the Consolidated Balance Sheets within Accounts Payable related to repurchase of its common shares, which settled subsequent to December 31, 2023. No such amounts were recognized in the fourth quarter of 2024 and 2025. 19. Revenue from Contracts with Customers Disaggregated Information About Revenue The following tables summarize the Company’s revenues by type and reportable segment for the years ended December 31, 2025, 2024, and 2023: Years Ended December 31, 2025 (In thousands of U.S. Dollars) Technology Sales Image Enhancement and Maintenance Services Technology Rentals Finance Income Total Content Solutions Segment: Film Remastering and Distribution $ — $ 142,346 $ — $ — $ 142,346 Other Content Solutions — 7,920 992 — 8,912 Sub-total — 150,266 992 — 151,258 Technology Products and Services Segment: System Sales 94,475 — — — 94,475 System Rentals — — 81,226 — 81,226 Maintenance — 63,847 — — 63,847 Finance Income — — — 11,729 11,729 Sub-total 94,475 63,847 81,226 11,729 251,277 Sub-total for reportable segments 94,475 214,113 82,218 11,729 402,535 All Other 3,864 3,813 — — 7,677 Total $ 98,339 $ 217,926 $ 82,218 $ 11,729 $ 410,212 118 Table of Contents Years Ended December 31, 2024 (In thousands of U.S. Dollars) Technology Sales Image Enhancement and Maintenance Services Technology Rentals Finance Income Total Content Solutions Segment: Film Remastering and Distribution $ — $ 100,545 $ — $ — $ 100,545 Other Content Solutions — 23,964 222 — 24,186 Sub-total — 124,509 222 — 124,731 Technology Products and Services Segment: System Sales 82,480 — — — 82,480 System Rentals — — 62,331 — 62,331 Maintenance — 61,565 — — 61,565 Finance Income — — — 9,686 9,686 Sub-total 82,480 61,565 62,331 9,686 216,062 Sub-total for reportable segments 82,480 186,074 62,553 9,686 340,793 All Other 5,285 6,123 7 — 11,415 Total $ 87,765 $ 192,197 $ 62,560 $ 9,686 $ 352,208 Years Ended December 31, 2023 (In thousands of U.S. Dollars) Technology Sales Image Enhancement and Maintenance Services Technology Rentals Finance Income Total Content Solutions Segment: Film Remastering and Distribution $ — $ 118,637 $ — $ — $ 118,637 Other Content Solutions — 8,061 — — 8,061 Sub-total — 126,698 — — 126,698 Technology Products and Services Segment: System Sales 93,271 — — — 93,271 System Rentals — — 75,566 — 75,566 Maintenance — 56,737 — — 56,737 Finance Income — — — 8,729 8,729 Sub-total 93,271 56,737 75,566 8,729 234,303 Sub-total for reportable segments 93,271 183,435 75,566 8,729 361,001 All Other 7,521 6,317 — — 13,838 Total $ 100,792 $ 189,752 $ 75,566 $ 8,729 $ 374,839 Deferred Revenue IMAX System sale and lease arrangements include a requirement for the Company to provide maintenance services over the life of the arrangement, some of which maintenance services are subject to a consumer price index adjustment each year. In circumstances where customers prepay the entire term’s maintenance fee based on the original arrangement, additional payments are due to the Company for the years after its extended warranty and maintenance obligations expire. Payments, upon renewal each year, are either prepaid or made in arrears and can vary in frequency from monthly to annually. As of December 31, 2025, $ 28.3 million of consideration had been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2024 — $ 26.5 million and 2023 — $ 22.8 million). For the year ended December 31, 2025, $ 39.0 million of revenue was recognized that was included in the $ 52.7 million balance of deferred revenue as of December 31, 2024. For the year ended December 31, 2024, $ 44.5 million of revenue was recognized that was included in the $ 67.1 million balance of deferred revenue as of December 31, 2023. 20. Segment Reporting 119 Table of Contents The Company’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), as such term is defined under U.S. GAAP. The CODM assesses segment performance based on segment revenues and segment gross margins. Selling, general and administrative expenses, research and development costs, the amortization of intangible assets, provision for (reversal of) current expected credit losses, certain write-downs, interest income, interest expense, and income tax (expense) benefit are not allocated to the Company’s segments. The Company has two reportable segments: (i) Content Solutions, consists of services provided to studios and other content creators, which principally includes the digital remastering of films and other content into IMAX formats for distribution to the IMAX network. To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and exclusive experiences ranging from live performances to interactive events with leading artists and creators, as well as film post-production services. (ii) Technology Products and Services, which includes results from the sale or lease of IMAX Systems, as well as from the maintenance of IMAX Systems to exhibition customers. To a lesser extent, the Technology Product and Services segment also earns revenue from certain ancillary theater business activities, including after-market sales of IMAX System parts and 3D glasses. During the fourth quarter of 2025, the Company reorganized its operating and reporting structure to align with the manner in which management evaluates performance for SSIMWAVE and IMAX Enhanced on a combined basis. As a result of this change, certain legacy operating segments were aggregated to form a new operating segment, “Streaming and Consumer Technology”. This operating segment is included in “All Other”, as it does not meet the quantitative criteria for being a reportable segment. Also included within “All Other” are other ancillary activities that do not meet the criteria to be considered a reportable segment. The accounting policies of the reportable segments are the same as those described in Note 2 - Summary of Significant Accounting Policies. Intercompany profit or loss is not included in the evaluation of performance and allocation of resources. The CODM uses segment revenues and segment gross margin to allocate resources for each segment predominantly in the annual budget and forecasting process. Segment Financial Information The following table presents the Company’s revenue and gross margin by reportable segment for the years ended December 31, 2025, 2024, and 2023: Revenue (1) Gross Margin (In thousands of U.S. Dollars) 2025 2024 2023 2025 2024 2023 Content Solutions $ 151,258 $ 124,731 $ 126,698 $ 99,706 $ 66,523 $ 74,106 Technology Products and Services 251,277 216,062 234,303 143,222 115,553 129,946 Sub-total for reportable segments 402,535 340,793 361,001 242,928 182,076 204,052 All Other 7,677 11,415 13,838 3,262 8,124 10,289 Total $ 410,212 $ 352,208 $ 374,839 $ 246,190 $ 190,200 $ 214,341 (1) The Company’s largest customer represents 9 % of total Revenues as of December 31, 2025 (2024 ― 11 %; 2023 ― 10 %). No single customer comprises more than 10% of the Company’s total Accounts Receivable as of December 31, 2025 and 2024. The following table presents the Costs and Expenses Applicable to Revenues for the Content Solutions segment that has been made available to the CODM as part of the Company’s annual and quarterly financial reporting requirements in accordance with U.S. GAAP: 120 Table of Contents Content Solutions Segment: For the years ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Revenue $ 151,258 $ 124,731 $ 126,698 Film asset amortization 18,500 24,775 20,281 Marketing and other selling expenses 17,867 15,030 15,200 Co-produced film participation expenses 438 3,292 594 Write-down of film assets 156 9 411 Other segment expenses (1) 14,591 15,102 16,106 Total Costs and Expenses Applicable to Revenues 51,552 58,208 52,592 Gross Margin $ 99,706 $ 66,523 $ 74,106 (1) Included within the Other segment expenses are costs related to film distribution, post production costs, production costs, and network connectivity fees. The following table presents the Costs and Expenses Applicable to Revenues for the Technology Products and Services reportable 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. GAAP: Technology Products and Services Segment: For the years ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Revenue $ 251,277 $ 216,062 $ 234,303 Depreciation of equipment supporting JRSAs 23,166 22,723 22,857 Marketing and other selling expenses 4,661 2,411 2,053 Write-down of equipment supporting JRSAs 630 3,397 756 Write-down of inventories 261 359 542 Other segment expenses (1) 79,337 71,619 78,149 Total Costs and Expenses Applicable to Revenues 108,055 100,509 104,357 Gross Margin $ 143,222 $ 115,553 $ 129,946 (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 year ended December 31, 2025, 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. The following table presents the Company’s assets by category and reportable segment, reconciled to consolidated assets, as of December 31, 2025 and 2024: As of December 31, (In thousands of U.S. Dollars) 2025 2024 Content Solutions $ 104,603 $ 89,383 Technology Products and Services 554,866 544,444 Sub-total for reportable segments 659,469 633,827 All Other 30,471 37,808 Corporate and other non-segment specific assets 204,091 158,763 Total $ 894,031 $ 830,398 Geographic Information Revenue by geographic area is based on the location of the customer. Revenue related to IMAX Film Remastering process is presented based upon the geographic location of the IMAX System that exhibits the remastered films. 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. 121 Table of Contents The following table summarizes the Company’s revenues by geographic area for the years ended December 31, 2025, 2024, and 2023: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 United States $ 144,854 $ 137,761 $ 117,925 Greater China 102,343 80,997 91,901 Asia (excluding China) 66,626 57,691 59,690 Western Europe 51,755 40,812 54,908 Canada 11,515 9,344 18,746 Latin America 8,970 8,994 13,788 Rest of the World 24,149 16,609 17,881 Total $ 410,212 $ 352,208 $ 374,839 No single country in the Rest of the World, Western Europe, Latin America, and Asia (excluding Greater China) classifications comprises more than 10% of total revenue. The following table presents the breakdown of Property, Plant and Equipment by geography as of December 31, 2025 and 2024: As of December 31, (In thousands of U.S. Dollars) 2025 2024 United States $ 106,455 $ 100,422 Greater China 63,821 66,022 Canada 35,095 40,116 Western Europe 14,493 12,917 Asia (excluding Greater China) 18,097 15,134 Rest of the World 4,949 5,522 Total $ 242,910 $ 240,133 21. Financial Instruments Financial Instruments The Company maintains cash with various major financial institutions. The Company’s cash is invested with highly rated financial institutions. The Company’s $ 151.2 million balance of cash and cash equivalents as of December 31, 2025 (December 31, 2024 — $ 100.6 million) included $ 137.4 million in cash held outside of Canada (December 31, 2024 — $ 85.4 million), of which $ 97.2 million was held in the PRC (December 31, 2024 — $ 47.5 million). 122 Table of Contents Fair Value Measurements The carrying values of the Company’s Cash and Cash Equivalents, Accounts Receivable, Variable Consideration, Accounts Payable, and Accrued and Other Liabilities due within one year approximate their fair values due to the short-term maturity of these instruments. Including these instruments, the Company’s financial instruments consist of the following: As of December 31, 2025 As of December 31, 2024 (In thousands of U.S. Dollars) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Level 1 Cash and cash equivalents (1) $ 151,168 $ 151,168 $ 100,592 $ 100,592 Level 2 Net financed sales receivables (4) $ 90,799 $ 87,677 $ 90,546 $ 81,876 Net investment in sales-type leases (4) 31,155 28,200 29,339 25,322 Equity securities (2) — — 1,000 1,000 COLI (5) 3,782 3,782 3,649 3,649 Foreign exchange contracts — designated forwards (3) 990 990 ( 2,029 ) ( 2,029 ) Wells Fargo Credit Facility borrowings (1) ( 37,000 ) ( 37,000 ) ( 37,000 ) ( 37,000 ) Federal Economic Development Loan (4) ( 927 ) ( 927 ) ( 1,765 ) ( 1,765 ) 2026 Convertible Notes (6) ( 743 ) ( 892 ) ( 230,000 ) ( 234,009 ) 2030 Convertible Notes (6) ( 250,000 ) ( 278,708 ) — — (1) Recorded at cost, which approximates fair value. (2) Recorded at cost net of fair value adjustments and impairment charges. (3) Fair value is determined using quoted prices in active markets. (4) Fair value is estimated based on discounting future cash flows at currently available interest rates with comparable terms. (5) Measured at cash surrender value, which approximates fair value, for the company-owned life insurance (“COLI”) (6) Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data. Foreign Exchange Risk Management The Company is exposed to market risk from changes in foreign currency rates. A majority of the Company’s revenues is denominated in U.S. Dollars while a significant portion of its costs and expenses is denominated in Canadian Dollars. A portion of the Company’s net U.S. Dollar cash is converted to Canadian Dollars to fund Canadian Dollar expenses through the spot market. In China and Japan, the Company has ongoing operating expenses related to its operations in RMB and Japanese Yen, respectively. Net cash flows are converted to and from U.S. Dollars through the spot market. The Company also has cash receipts under leases denominated in RMB, Japanese Yen, Canadian Dollars, and Euros which are converted to U.S. Dollars through the spot market. In addition, because IMAX films generate box office in 91 different countries, unfavorable exchange rates between applicable local currencies and the U.S. Dollar could have an impact on box office receipts and the Company’s revenues and results of operations. The Company’s policy is to not use any financial instruments for trading or other speculative purposes. 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 December 31, 2025 (the “Foreign Currency Hedges”), with settlement dates throughout 2026 and 2027. Foreign currency derivatives are recognized and measured on the Consolidated Balance Sheets at fair value. Changes in the fair value (i.e., gains or losses) are recognized in the Consolidated Statements of Operations except for derivatives designated and qualifying as foreign currency cash flow hedging instruments. The Company currently has cash flow hedging instruments associated with Selling, General and Administrative Expenses. For foreign currency cash flow hedging instruments related to Selling, General and Administrative Expenses, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported in Accumulated Other Comprehensive Loss (“AOCI”) and reclassified to the Consolidated Statements of Operations when the forecasted transaction occurs. Any ineffective portion is recognized immediately in the Consolidated Statements of Operations. The following tabular disclosures reflect the impact that derivative instruments and hedging activities have on the Company’s Consolidated Financial Statements: Notional value of foreign exchange contracts: 123 Table of Contents As of December 31, (In thousands of U.S. Dollars) 2025 2024 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards $ 48,357 $ 48,376 Fair value of derivatives in foreign exchange contracts: As of December 31, (In thousands of U.S. Dollars) Balance Sheet Location 2025 2024 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards Other assets $ 992 $ — Accrued and other liabilities ( 2 ) ( 2,029 ) $ 990 $ ( 2,029 ) Derivatives in foreign currency hedging relationships are as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Foreign exchange contracts — Forwards Derivative Gain (Loss) Recognized in AOCI (Effective Portion) $ 1,723 $ ( 3,455 ) $ 575 Years Ended December 31, (In thousands of U.S. Dollars) Location of Derivative Loss Reclassified from AOCI (Effective Portion) 2025 2024 2023 Foreign exchange contracts — Forwards Selling, general and administrative expenses $ ( 1,297 ) $ ( 607 ) $ ( 892 ) The Company’s estimated net amount of the existing gain as of December 31, 2025 is $ 0.8 million (2024 — loss of $ 2.0 million), which is expected to be reclassified to earnings within the next twelve months. Investments in Equity Securities As of December 31, 2025, the Company held investments in the preferred shares of enterprises which meet the criteria for classification as an equity security carried at historical cost, net of impairment charges. During the year ended December 31, 2025, the Company recorded an impairment charge of $ 1.0 million on the investment in equity securities as the carrying value exceeded the estimated fair value. The carrying value of these equity security investments was $ nil as of December 31, 2025 (December 31, 2024 — $ 1.0 million) and is recorded in Other Assets. 22. Employers Pension and Postretirement Benefits Defined Benefit Plan The Company has an unfunded defined benefit pension plan, the SERP, covering its CEO, Richard L. Gelfond. Under the terms of the SERP, if Mr. Gelfond’s employment is terminated other than for cause (as defined in his employment agreement), he is entitled to receive SERP benefits in the form of a lump sum payment. SERP benefit payments to Mr. Gelfond are subject to a deferral for 6 months after the termination of his employment, at which time Mr. Gelfond will be entitled to receive interest on the deferred amount credited at the applicable federal rate for short-term obligations. Pursuant to an amendment to his employment agreement dated July 17, 2025, the term of Mr. Gelfond’s employment was extended through December 31, 2028. Under the terms of his employment agreement, as amended, the total benefit payable to Mr. Gelfond under the SERP is fixed at $ 20.3 million. 124 Table of Contents As of December 31, 2025 and 2024, the projected benefit obligation for SERP was as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 Projected benefit obligation: Obligation, beginning of year $ 18,955 $ 18,178 Interest cost 900 803 Actuarial gain ( 2,340 ) ( 26 ) Obligation, end of year and unfunded status $ 17,515 $ 18,955 As of December 31, 2025, 2024, and 2023, the following amounts related to the SERP were recorded on the Company’s Consolidated Balance Sheets within Accumulated Other Comprehensive Loss and will be recognized as components of net periodic benefit cost in future periods: As of December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Unrealized actuarial gain $ ( 4,081 ) $ ( 2,353 ) $ ( 2,889 ) Unamortized prior service cost — — — Net periodic benefit costs to be recognized in future periods $ ( 4,081 ) $ ( 2,353 ) $ ( 2,889 ) For the years ended December 31, 2025, 2024, and 2023, the components of pension expense related to the SERP were as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Interest cost $ 900 $ 803 $ 788 Amortization of prior service cost — — — Amortization of actuarial gain ( 612 ) ( 563 ) ( 616 ) Pension expense $ 288 $ 240 $ 172 The following assumptions were used to determine the SERP obligation and any related costs as of and for the years ended December 31, 2025, 2024, and 2023: As of December 31, 2025 2024 2023 Discount rate 3.95 % 4.57 % 4.42 % Lump sum interest rate: First 25 years N/A N/A N/A First 20 years N/A N/A N/A Thereafter N/A N/A N/A Cost of living adjustment on benefits N/A N/A N/A No contributions were made for the SERP during 2025. The Company expects interest costs of $ 0.7 million to be recognized as a component of pension cost for the year ended December 31, 2026. 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 2025, the Company contributed and recorded an expense of $ 1.4 million (2024 — $ 1.5 million; 2023 — $ 1.2 million) for its Canadian plan and $ 0.8 million (2024 — $ 1.1 million; 2023 — $ 0.8 million) for its defined contribution employee plan under Section 401(k) of the U.S. Internal Revenue Code. Postretirement Benefits - Executives The Company has an unfunded postretirement plan for Mr. Gelfond and Bradley J. Wechsler, former Co-CEO and Chairman of the Company’s Board of Directors (the “Executive Postretirement Benefit Plan”). The Executive Postretirement Benefit Plan provides that 125 Table of Contents the Company will maintain health benefits for Messrs. Gelfond and Wechsler until they become eligible for Medicare and, thereafter, the Company will provide Medicare supplemental coverage as selected by Messrs. Gelfond and Wechsler. Mr. Wechsler retired from the Company’s Board of Directors on June 9, 2021, and the Company is providing him with Medicare supplemental coverage or its cash equivalent. As of December 31, 2025 and 2024, the Company’s Consolidated Balance Sheets included the following amounts within Accrued and Other Liabilities related to the Executive Postretirement Benefit Plan: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 Projected benefit obligation: Obligation, beginning of year $ 497 $ 507 Interest cost 27 24 Benefits paid ( 12 ) ( 10 ) Actuarial gain ( 3 ) ( 24 ) Obligation, end of year and unfunded status $ 509 $ 497 For the years ended December 31, 2025, 2024, and 2023, the components of pension (income) expense related to the Executive Postretirement Benefit Plan were as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Interest cost $ 27 $ 24 $ 23 Amortization of actuarial gain ( 69 ) ( 44 ) ( 65 ) Pension income $ ( 42 ) $ ( 20 ) $ ( 42 ) As of December 31, 2025, 2024, and 2023, the following amounts related to the Executive Postretirement Benefit Plan were recorded on the Company’s Consolidated Balance Sheets within Accumulated Other Comprehensive Loss and will be recognized as components of net pension cost in future periods: As of December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Unrealized actuarial gain $ ( 54 ) $ ( 120 ) $ ( 140 ) As of December 31, 2025, 2024, and 2023, the weighted average assumptions used to determine the benefit obligation related to the Executive Postretirement Benefit Plan were as follows: As of December 31, 2025 2024 2023 Discount rate 5.32 % 5.47 % 4.80 % For the years ended December 31, 2025, 2024, and 2023, the weighted average assumptions used to determine the net postretirement benefit expense related to the Executive Postretirement Benefit Plan were as follows: Years Ended December 31, 2025 2024 2023 Discount rate 5.47 % 4.80 % 5.01 % 126 Table of Contents The following benefit payments are expected to be made as per the current plan assumptions for the Executive Postretirement Benefit Plan in each of the next five years and thereafter following the December 31, 2025 balance sheet date: (In thousands of U.S. Dollars) 2026 $ 13 2027 14 2028 15 2029 30 2030 33 Thereafter 927 Total $ 1,032 Postretirement Benefits – Canadian Employees The Company has an unfunded postretirement plan for its Canadian employees meeting specific eligibility requirements (the “Canadian Postretirement Benefit Plan”). The Company will provide eligible participants, upon retirement, with health and welfare benefits. As of December 31, 2025 and 2024, the Company’s Consolidated Balance Sheets included the following amounts within Accrued and Other Liabilities related to the Canadian Postretirement Benefit Plan: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 Projected benefit obligation: Obligation, beginning of year $ 788 $ 982 Interest cost 44 42 Benefits paid ( 135 ) ( 145 ) Actuarial loss 246 85 Unrealized foreign exchange loss (gain) 33 ( 176 ) Obligation, end of year and unfunded status $ 976 $ 788 For the years ended December 31, 2025, 2024, and 2023, the components of pension expense related to the Canadian Postretirement Benefit Plan were as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Interest cost $ 44 $ 42 $ 48 Amortization of actuarial gain ( 8 ) ( 13 ) ( 18 ) Pension expense $ 36 $ 29 $ 30 The Company expects interest costs of $ 0.1 million to be recognized as a component of benefit cost for the year ended December 31, 2026. As of December 31, 2025, 2024, and 2023, the following amounts related to the Canadian Postretirement Benefit Plan were recorded on the Company’s Consolidated Balance Sheets within Accumulated Other Comprehensive Loss and will be recognized as components of net pension cost in future periods: As of December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Unrealized actuarial gain $ ( 315 ) $ ( 323 ) $ ( 336 ) 127 Table of Contents As December 31, 2025, 2024, and 2023, the weighted average assumptions used to determine the benefit obligation related to the Canadian Postretirement Benefit Plan are as follows: As of December 31, 2025 2024 2023 Discount rate 4.60 % 4.50 % 4.60 % For the years ended December 31, 2025, 2024, and 2023, the weighted average assumptions used to determine the net postretirement benefit expense related to the Canadian Postretirement Benefit Plan were as follows: Years Ended December 31, 2025 2024 2023 Discount rate 4.50 % 4.60 % 5.00 % The following benefit payments are expected to be made as per the current plan assumptions for the Canadian Postretirement Benefit Plan in each of the next five years and thereafter following the December 31, 2025 balance sheet date: (In thousands of U.S. Dollars) 2026 $ 83 2027 86 2028 81 2029 83 2030 83 Thereafter 383 Total $ 799 Deferred Compensation Benefit Plan The Company maintained a nonqualified deferred compensation benefit plan (the “Retirement Plan”) covering the former CEO of IMAX Entertainment and Senior Executive Vice President of the Company. 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). In 2018, the executive incurred a separation from service from the Company, and as such, the Retirement Plan benefits became fully vested as of December 31, 2018. As of December 31, 2025, the benefit obligation related to the Retirement Plan was $ 4.4 million (December 31, 2024 — $ 4.2 million) and was recorded on the Company’s 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 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 Consolidated Balance Sheets within Prepaid Expenses. As of December 31, 2025, fair value of the COLI asset was $ 3.8 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 Consolidated Statements of Operations within Realized and Unrealized Investment Gains. 23. Government Assistance Federal Economic Development Loan Refer to Note 13, “Borrowings.” China Grant IMAX China receives local district grants primarily related to taxes paid, including corporate income taxes, value-added taxes, and withholding taxes for dividends and/or cross-border activities. Government grants are recognized in the period the costs were incurred. 128 Table of Contents For the year ended December 31, 2025, $ 2.5 million (2024 — $ 2.8 million; 2023 — $ 5.4 million) was recognized primarily as a reduction in Costs and Expenses Applicable to Revenues and Income Tax Expense . The impact to net income attributable to common shareholders was $ 1.8 million (2024 — $ 1.6 million; 2023 — $ 3.4 million). Employee Retention Credit In 2025, the Company recognized $ 4.0 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. During the year ended December 31, 2025, the ERC was classified as a reduction to Selling, General and Administrative Expenses ($ 2.7 million) and Costs and Expenses Applicable to Revenues ($ 1.3 million). No such credits were received in 2024 and 2023. 24. Non-Controlling Interests IMAX China Non-Controlling Interest As of December 31, 2025, the Company indirectly owned 71.57 % of 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. The balance of non- controlling interest in IMAX China as of December 31, 2025 was $ 89.2 million (December 31, 2024 — $ 78.1 million). The net income attributable to non-controlling interest of IMAX China for the year ended December 31, 2025 was $ 10.7 million (2024 — $ 6.6 million; 2023 — $ 7.8 million). Other Non-Controlling Interests The Company’s Original Film Fund was established in 2014 to co-finance a portfolio of 10 original large-format films. The initial investment in the Original Film Fund was committed by a third party in the amount of $ 25.0 million, with the possibility of contributing additional funds. The Company has contributed $ 9.0 million to the Original Film Fund since 2014, and has reached its maximum contribution. Through December 31, 2025, the Original Film Fund has invested $ 22.3 million toward the development of original films. The related production, financing and distribution agreement includes put and call rights relating to change of control of the rights, title and interest in the co-financed pictures. Non-Controlling Interest in Temporary Equity The following summarizes the movement of the non-controlling interest in temporary equity, in the Original Film Fund for the years ended December 31, 2025, 2024, and 2023: Years Ended December 31, (In thousands of U.S. Dollars) 2025 2024 2023 Beginning balance $ 680 $ 658 $ 722 Net (loss) income ( 14 ) 22 ( 64 ) Ending balance $ 666 $ 680 $ 658 25. Restructuring Charges and Other Impairments In 2025, the Company recognized $ 2.5 million (2024 — $ 3.7 million; 2023 — $ 2.9 million) in Restructuring charges and other impairments in the Consolidated Statements of Operations. These charges primarily reflect the Company’s strategic initiatives to streamline operations, reduce costs, and enhance organizational efficiency. The Company incurred termination charges of $ 1.4 million (2024 — $ 2.4 million; 2023 — $ 1.3 million) in connection with its plan to optimize its organizational structure, including eliminating redundant roles, addressing spans and layers to capture efficiencies and centralizing certain operational roles, and $ 0.7 million in connection with the writedown of the SSIMWAVE customer relationship intangible asset. In addition, the Company’s recognized $ 0.4 million (2024 — $ 1.3 million; 2023 — $ nil ) of fees relating to the assessment of its corporate structure and the resulting 2024 internal asset sale. As of December 31, 2025, the Company’s liability was $ 1.4 million liability (December 31, 2024 — $ 1.4 million) on the Consolidated Balance Sheets within Accrued and other liabilities related to Restructuring charges and other impairments. 129 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None