# EDGAR Filing Document

**Accession Number:** 0000921582
**File Stem:** 0000921582-25-000067
**Filing Date:** 2025-7
**Character Count:** 334000
**Document Hash:** ee52610c51de134f1a1d19de2022a081
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000921582-25-000067.hdr.sgml**: 20250724

**ACCESSION NUMBER**: 0000921582-25-000067

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 120

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250724

**DATE AS OF CHANGE**: 20250724

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** IMAX CORP
- **CENTRAL INDEX KEY:** 0000921582
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHOTOGRAPHIC EQUIPMENT & SUPPLIES [3861]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 980140269
- **STATE OF INCORPORATION:** A6
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35066
- **FILM NUMBER:** 251144674

**BUSINESS ADDRESS:**
- **STREET 1:** 2525 SPEAKMAN DRIVE
- **CITY:** MISSISSAUGA
- **STATE:** A6
- **ZIP:** L5K 1B1
- **BUSINESS PHONE:** 9054036500

**MAIL ADDRESS:**
- **STREET 1:** 2525 SPEAKMAN DRIVE
- **CITY:** MISSISSAUGA
- **STATE:** A6
- **ZIP:** L5K 1B1

?xml version='1.0' encoding='ASCII'? imax-20250630

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**Form 10-Q**

**(Mark One)**

**☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025**

**OR**

**☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from to**

**Commission File Number 001-35066**

**IMAX Corporation**

*(Exact name of registrant as specified in its charter)*

---

| | |
|:---|:---|
| **Canada**  | **98-0140269** |
| (State or other jurisdiction of <br>incorporation or organization) | *(I.R.S. Employer*<br>*Identification Number)* |
| **2525 Speakman Drive,**<br>**Mississauga, Ontario, Canada L5K 1B1**<br>**(905) 403-6457** | **902 Broadway, Floor 20**<br>**New York, New York, USA 10010**<br>**(212) 821-0142** |

---

*(Address of principal executive offices, zip code, telephone numbers)*

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| **Common Shares, no par value** | **IMAX** | **The New York Stock Exchange** |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

---

| | |
|:---|:---|
| **Class** | **Outstanding as of June 30, 2025** |
| Common Shares, no par value | 53,782,520 |

---

------

**IMAX CORPORATION**

**Table of Contents**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| **<u>[PART I. FINANCIAL INFORMATION](#i1abbf4606a724a46b6a37b1851cfc1bf_10)</u>** | **<u>[PART I. FINANCIAL INFORMATION](#i1abbf4606a724a46b6a37b1851cfc1bf_10)</u>** | |
| Item 1. | <u>[Financial Statements](#i1abbf4606a724a46b6a37b1851cfc1bf_16)</u> | <u>[3](#i1abbf4606a724a46b6a37b1851cfc1bf_16)</u> |
| Item 2. | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i1abbf4606a724a46b6a37b1851cfc1bf_445)</u> | <u>[38](#i1abbf4606a724a46b6a37b1851cfc1bf_445)</u> |
| Item 3. | <u>[Quantitative and Qualitative Disclosures about Market Risk](#i1abbf4606a724a46b6a37b1851cfc1bf_568)</u> | <u>[61](#i1abbf4606a724a46b6a37b1851cfc1bf_568)</u> |
| Item 4. | <u>[Controls and Procedures](#i1abbf4606a724a46b6a37b1851cfc1bf_589)</u> | <u>[62](#i1abbf4606a724a46b6a37b1851cfc1bf_589)</u> |
| **<u>[PART II. OTHER INFORMATION](#i1abbf4606a724a46b6a37b1851cfc1bf_598)</u>** | **<u>[PART II. OTHER INFORMATION](#i1abbf4606a724a46b6a37b1851cfc1bf_598)</u>** |  |
| Item 1. | <u>[Legal Proceedings](#i1abbf4606a724a46b6a37b1851cfc1bf_601)</u> | <u>[64](#i1abbf4606a724a46b6a37b1851cfc1bf_601)</u> |
| Item 1A. | <u>[Risk Factors](#i1abbf4606a724a46b6a37b1851cfc1bf_604)</u> | <u>[64](#i1abbf4606a724a46b6a37b1851cfc1bf_604)</u> |
| Item 2. | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i1abbf4606a724a46b6a37b1851cfc1bf_607)</u> | <u>[64](#i1abbf4606a724a46b6a37b1851cfc1bf_607)</u> |
| Item 5. | <u>[Other Information](#i1abbf4606a724a46b6a37b1851cfc1bf_610)</u> | <u>[65](#i1abbf4606a724a46b6a37b1851cfc1bf_610)</u> |
| Item 6. | <u>[Exhibits](#i1abbf4606a724a46b6a37b1851cfc1bf_613)</u> | <u>[66](#i1abbf4606a724a46b6a37b1851cfc1bf_613)</u> |
| <u>[Signatures](#i1abbf4606a724a46b6a37b1851cfc1bf_616)</u> | <u>[Signatures](#i1abbf4606a724a46b6a37b1851cfc1bf_616)</u> | <u>[67](#i1abbf4606a724a46b6a37b1851cfc1bf_616)</u> |

---

------

<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

**IMAX CORPORATION**

**PART I. FINANCIAL INFORMATION**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp;*Financial Statements***

---

| | |
|:---|:---|
| | **Page** |
| The following unaudited Condensed Consolidated Financial Statements are filed as part of this Report: |  |
| <u>[Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024](#i1abbf4606a724a46b6a37b1851cfc1bf_19)</u> | <u>[4](#i1abbf4606a724a46b6a37b1851cfc1bf_19)</u> |
| <u>[Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024](#i1abbf4606a724a46b6a37b1851cfc1bf_22)</u> | <u>[5](#i1abbf4606a724a46b6a37b1851cfc1bf_22)</u> |
| <u>[Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024](#i1abbf4606a724a46b6a37b1851cfc1bf_25)</u> | <u>[6](#i1abbf4606a724a46b6a37b1851cfc1bf_25)</u> |
| <u>[Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024](#i1abbf4606a724a46b6a37b1851cfc1bf_28)</u> | <u>[7](#i1abbf4606a724a46b6a37b1851cfc1bf_28)</u> |
| <u>[Condensed Consolidated Statements of Shareholders' Equity for the three and six months ended June 30, 2025 and 2024](#i1abbf4606a724a46b6a37b1851cfc1bf_31)</u> | <u>[8](#i1abbf4606a724a46b6a37b1851cfc1bf_31)</u> |
| <u>[Notes to Condensed Consolidated Financial Statements](#i1abbf4606a724a46b6a37b1851cfc1bf_34)</u> | <u>[9](#i1abbf4606a724a46b6a37b1851cfc1bf_34)</u> |

---

------

<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

**IMAX CORPORATION**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

*(In thousands of U.S. Dollars, except share amounts)* 

*(Unaudited)*

---

| | | |
|:---|:---|:---|
| | **June 30,** | **December 31,** |
| | **2025** | **2024** |
| **Assets** |  |  |
| Cash and cash equivalents | $109251 | $100592 |
| Accounts receivable, net of allowance for credit losses | 126949 | 107669 |
| Financing receivables, net of allowance for credit losses | 121122 | 119885 |
| Variable consideration receivables, net of allowance for credit losses | 83276 | 82593 |
| Inventories | 36699 | 32840 |
| Prepaid expenses | 13171 | 13121 |
| Film assets, net of accumulated amortization | 10309 | 8686 |
| Property, plant and equipment, net of accumulated depreciation | 243672 | 240133 |
| Other assets | 23356 | 22441 |
| Deferred income tax assets, net of valuation allowance | 13630 | 14499 |
| Goodwill | 52815 | 52815 |
| Other intangible assets, net of accumulated amortization | 34332 | 35124 |
| **Total assets** | $**868582** | $**830398** |
| **Liabilities** |  |  |
| Accounts payable | $31721 | $19803 |
| Accrued and other liabilities | 85322 | 100916 |
| Deferred revenue | 55924 | 52686 |
| Revolving credit facility borrowings, net of unamortized debt issuance costs | 47547 | 36356 |
| Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs | 230474 | 229901 |
| Deferred income tax liabilities | 12521 | 12521 |
| **Total liabilities** | **463509** | **452183** |
| **Commitments, contingencies and guarantees** (see Note 7) |  |  |
| **Non-controlling interests** | **691** | **680** |
| **Shareholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;Capital stock common shares — no par value. Authorized — unlimited number. <br>53,782,520 issued and outstanding (December 31, 2024 — 52,946,200 issued and outstanding) | 415142 | 401420 |
| Other equity | 175901 | 185268 |
| Statutory surplus reserve | 4219 | 4051 |
| Accumulated deficit | (261261) | (274675) |
| Accumulated other comprehensive loss | (13589) | (16598) |
| **Total shareholders' equity attributable to common shareholders** | **320412** | **299466** |
| Non-controlling interests | 83970 | 78069 |
| **Total shareholders' equity** | **404382** | **377535** |
| **Total liabilities and shareholders' equity** | $**868582** | $**830398** |
| *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* |

---

------

<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

**IMAX CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

*(In thousands of U.S. Dollars, except per share amounts)* 

*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Revenues** |  |  |  |  |
| Technology sales | $18842 | $20420 | $32366 | $28324 |
| Image enhancement and maintenance services | 50854 | 52189 | 101607 | 102537 |
| Technology rentals | 19116 | 14043 | 38427 | 32644 |
| Finance income | 2872 | 2309 | 5951 | 4579 |
|  | **91684** | **88961** | **178351** | **168084** |
| **Costs and expenses applicable to revenues** |  |  |  |  |
| Technology sales | 9352 | 9222 | 16575 | 13989 |
| Image enhancement and maintenance services | 21376 | 29089 | 40821 | 50284 |
| Technology rentals | 7354 | 6723 | 14177 | 12995 |
|  | **38082** | **45034** | **71573** | **77268** |
| **Gross margin** | **53602** | **43927** | **106778** | **90816** |
| Selling, general and administrative expenses | 35302 | 37564 | 68764 | 68821 |
| Research and development | 1542 | 2031 | 2860 | 4218 |
| Amortization of intangible assets | 1809 | 1321 | 3540 | 2664 |
| Credit loss (reversal) expense, net | (183) | 139 | (309) | 174 |
| Restructuring and other charges | 786 |  | 843 |  |
| **Income from operations** | **14346** | **2872** | **31080** | **14939** |
| Realized and unrealized investment gains | 33 | 32 | 65 | 62 |
| Retirement benefits non-service expense | (133) | (107) | (203) | (214) |
| Interest income | 1114 | 561 | 1654 | 1095 |
| Interest expense | (1927) | (2282) | (3728) | (4227) |
| **Income before taxes** | **13433** | **1076** | **28868** | **11655** |
| Income tax (expense) recovery | (1198) | 3997 | (8483) | (1162) |
| **Net income** | **12235** | **5073** | **20385** | **10493** |
| Net income attributable to non-controlling interests | (980) | (1490) | (6803) | (3636) |
| **Net income attributable to common shareholders** | $**11255** | $**3583** | $**13582** | $**6857** |
| **Net income per share attributable to common shareholders:** |  |  |  |  |
| Basic | $0.21 | $0.07 | $0.25 | $0.13 |
| Diluted | $0.20 | $0.07 | $0.25 | $0.13 |
| **Weighted average shares outstanding (in thousands):** |  |  |  |  |
| Basic | 53751 | 52633 | 53448 | 52568 |
| Diluted | 55161 | 53428 | 55064 | 53386 |
| *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* |

---

------

<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

**IMAX CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

*(In thousands of U.S. Dollars)* 

*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Net income** | $**12235** | $**5073** | $**20385** | $**10493** |
| **Other comprehensive income (loss) before tax** |  |  |  |  |
| &nbsp;&nbsp;Unrealized net gain (loss) from cash flow hedging instruments | 2520 | (365) | 1805 | (1281) |
| &nbsp;&nbsp;Realized net loss from cash flow hedging instruments | 292 | 67 | 1627 | 78 |
| &nbsp;&nbsp;Foreign currency translation adjustments | 600 | (454) | 1021 | (996) |
| &nbsp;&nbsp;Defined benefit and postretirement benefit plans | (141) | (149) | (346) | (398) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total other comprehensive income (loss) before tax** | **3271** | **(901)** | **4107** | **(2597)** |
| Income tax (expense) benefit related to other comprehensive income (loss) | (699) | 117 | (808) | 420 |
| Other comprehensive income (loss), net of tax | 2572 | (784) | 3299 | (2177) |
| **Comprehensive income** | **14807** | **4289** | **23684** | **8316** |
| Comprehensive income attributable to non-controlling interests | (1149) | (1359) | (7093) | (3351) |
| **Comprehensive income attributable to common shareholders** | $**13658** | $**2930** | $**16591** | $**4965** |
| *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* |

---

------

<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

**IMAX CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

*(In thousands of U.S. Dollars)* 

*(Unaudited)*

---

| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| **Operating Activities** |  |  |
| Net income | $20385 | $10493 |
| Adjustments to reconcile net income to cash provided by operating activities: |  |  |
| &nbsp;&nbsp;Depreciation and amortization | 30809 | 34002 |
| &nbsp;&nbsp;Amortization of deferred financing costs | 984 | 985 |
| &nbsp;&nbsp;Credit loss (reversal) expense, net | (309) | 174 |
| &nbsp;&nbsp;Write-downs, including asset impairments | 1047 | 2399 |
| &nbsp;&nbsp;Deferred income tax expense | 72 | (7722) |
| &nbsp;&nbsp;Share-based and other non-cash compensation | 12767 | 11753 |
| &nbsp;&nbsp;Unrealized foreign currency exchange (gain) loss | (278) | 51 |
| &nbsp;&nbsp;Realized and unrealized investment gain | (65) | (62) |
| Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;Accounts receivable | (18702) | 14492 |
| &nbsp;&nbsp;Inventories | (4027) | (6271) |
| &nbsp;&nbsp;Film assets | (11318) | (12741) |
| &nbsp;&nbsp;Deferred revenue | 3116 | (4397) |
| &nbsp;&nbsp;Changes in other operating assets and liabilities | (4300) | (19086) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by operating activities** | **30181** | **24070** |
| **Investing Activities** |  |  |
| Purchase of property, plant and equipment | (4006) | (2690) |
| Investment in equipment for joint revenue sharing arrangements | (14666) | (9757) |
| Acquisition of other intangible assets | (3376) | (3191) |
| &nbsp;&nbsp;**Net cash used in investing activities** | **(22048)** | **(15638)** |
| **Financing Activities** |  |  |
| Revolving credit facility borrowings | 29000 | 51000 |
| Repayments of revolving credit facility borrowings | (18000) | (21000) |
| Repayments of other borrowings | (372) | (311) |
| Repurchase of common shares |  | (18102) |
| Repurchase of common shares - IMAX China | (1454) |  |
| Taxes withheld and paid on employee stock awards vested | (9742) | (4978) |
| Common shares issued - stock options exercised | 1048 |  |
| &nbsp;&nbsp;**Net cash provided by financing activities** | **480** | **6609** |
| Effects of exchange rate changes on cash | 46 | 311 |
| **Increase in cash and cash equivalents during period** | **8659** | **15352** |
| **Cash and cash equivalents, beginning of period** | **100592** | **76200** |
| **Cash and cash equivalents, end of period** | $**109251** | $**91552** |
| *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* |

---

------

<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

**IMAX CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY**

*(In thousands of U.S. Dollars)* 

*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Adjustments to capital stock:** |  |  |  |  |
| Balance, beginning of period | $414041 | $393597 | $401420 | $389048 |
| &nbsp;&nbsp;Restricted share units vested, net of shares withheld for employee tax obligations | 970 | 954 | 12350 | 14020 |
| &nbsp;&nbsp;Employee stock options exercised, net of shares withheld for employee tax obligations | 100 |  | 1048 |  |
| &nbsp;&nbsp;Grant date fair value of stock options exercised | 31 |  | 324 |  |
| &nbsp;&nbsp;Average carrying value of repurchased and retired common shares |  | (58) |  | (8575) |
| Balance, end of period | 415142 | 394493 | 415142 | 394493 |
| **Adjustments to other equity:** |  |  |  |  |
| Balance, beginning of period | 169751 | 171877 | 185268 | 185087 |
| &nbsp;&nbsp;Amortization of share-based payment expense - restricted share units | 5818 | 4622 | 9563 | 7546 |
| &nbsp;&nbsp;Amortization of share-based payment expense - performance stock units | 2022 | 1992 | 3995 | 3879 |
| &nbsp;&nbsp;Restricted share units vested | (1574) | (1848) | (22516) | (19791) |
| &nbsp;&nbsp;Grant date fair value of stock options exercised | (31) |  | (324) |  |
| &nbsp;&nbsp;Change in ownership interest related to IMAX China | (85) | (11) | (85) | (89) |
| Balance, end of period | 175901 | 176632 | 175901 | 176632 |
| **Adjustments to statutory surplus reserve:** |  |  |  |  |
| Balance, beginning of period | 4106 | 3932 | 4051 | 3932 |
| Change in statutory surplus reserve, IMAX China | 113 |  | 168 |  |
| Balance, end of period | 4219 | 3932 | 4219 | 3932 |
| **Adjustments to accumulated deficit:** |  |  |  |  |
| Balance, beginning of period | (272403) | (297284) | (274675) | (292845) |
| &nbsp;&nbsp;Net income attributable to common shareholders | 11255 | 3583 | 13582 | 6857 |
| &nbsp;&nbsp;Statutory surplus reserve deducted from retained earnings, IMAX China | (113) |  | (168) |  |
| &nbsp;&nbsp;Common shares repurchased and retired |  | (188) |  | (7901) |
| Balance, end of period | (261261) | (293889) | (261261) | (293889) |
| **Adjustments to accumulated other comprehensive loss:** |  |  |  |  |
| Balance, beginning of period | (15992) | (13320) | (16598) | (12081) |
| &nbsp;&nbsp;Other comprehensive income (loss), net of tax | 2403 | (654) | 3009 | (1893) |
| Balance, end of period | (13589) | (13974) | (13589) | (13974) |
| **Adjustments to non-controlling interests:** |  |  |  |  |
| Balance, beginning of period | 84110 | 73928 | 78069 | 71790 |
| &nbsp;&nbsp;Net income attributable to non-controlling interests | 965 | 1482 | 6792 | 3636 |
| &nbsp;&nbsp;Other comprehensive income (loss), net of tax | 169 | (130) | 290 | (284) |
| &nbsp;&nbsp;Share-based compensation attributable to non-controlling interests | 95 | (65) | 188 | (6) |
| &nbsp;&nbsp;Change in ownership interest related to IMAX China common share repurchases | (1369) | (104) | (1369) | (25) |
| Balance, end of period | 83970 | 75111 | 83970 | 75111 |
| **Total Shareholders' Equity** | $**404382** | $**342305** | $**404382** | $**342305** |
| *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* | *(See the accompanying notes, which are an integral part of these Condensed Consolidated Financial Statements.)* |

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**IMAX CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

*(Tabular amounts in thousands of U.S. Dollars, unless otherwise stated)* 

**1. Basis of Presentation**

***Accounting Principles***

IMAX Corporation (together with its subsidiaries, unless the context requires otherwise, the "Company" or "IMAX"), prepares 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"). Certain information and footnote disclosures have been condensed or omitted as permitted by such rules and regulations. In the opinion of the Company's management, the unaudited Condensed Consolidated Financial Statements reflect all necessary adjustments for a fair statement of interim results. The Condensed Consolidated Balance Sheet at December 31, 2024 was derived from the Company's audited annual Consolidated Financial Statements in the Company's 2024 Annual Report on Form 10-K (the "2024 Form 10-K"). The interim results presented in the Company's Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows are not necessarily indicative of results for a full year.

These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements in the 2024 Form 10-K, which includes significant accounting policies adopted by the Company.

***Principles of Consolidation***

These unaudited Condensed 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.

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

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

---

| | | |
|:---|:---|:---|
| | **June 30,** | **December 31,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** |
| Total assets | $1787 | $1459 |
| Total liabilities | $362 | $246 |

---

***Estimates and Assumptions***

In preparing the Company's Condensed Consolidated Financial Statements, management makes judgments in applying various accounting policies. The areas of policy judgment are consistent with those reported in Note 2 of the Company's audited Consolidated Financial Statements included in its 2024 Form 10-K. 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 inventory; (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; (vii) the economic lives of the system equipment supporting joint revenue sharing arrangements; (viii) the useful lives of 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

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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 of deferred income tax assets; and (xiv) reserves related to uncertain tax positions.

**2. New Accounting Standards and Accounting Changes**

***Issued FASB Accounting Standard Codification Updates Not Yet Adopted***

*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 improve the transparency of income tax disclosures by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation, and (ii) income taxes to be paid disaggregated by jurisdiction. ASU 2023-09 is effective for annual periods beginning on or after December 31, 2024. The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements disclosures related to tax.

*Disaggregation of Income Statement Expenses*

In November 2024, the FASB issued Accounting Standard Update 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 fiscal years beginning after December 15, 2026 and interim periods thereafter with early adoption permitted. The Company is in the process of evaluating the impact of this ASU on its Consolidated Financial Statements.

The Company considers the applicability and impact of all recently issued FASB accounting standard codification updates. ASUs that are not noted above were assessed and determined to be not applicable or not significant to the Company's Condensed Consolidated Financial Statements for the period ended June 30, 2025.

**3. 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 its 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 reported in Note 4 of the Company's audited Consolidated Financial Statements included in its 2024 Form 10-K.

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.

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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 continue to monitor economic trends and conditions and portfolio performance and adjust its allowance for credit loss accordingly.

*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 three and six months ended June 30, 2025 and 2024:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| *(In thousands of U.S. Dollars)* | **Theater<br>Operators** | **Studios** | **Other** | **Total** | **Theater<br>Operators** | **Studios** | **Other** | **Total** |
| Beginning balance&nbsp;&nbsp;&nbsp;&nbsp; | $11483 | $1236 | $455 | $13174 | $11678 | $1017 | $583 | $13278 |
| &nbsp;&nbsp;Current period provision (reversal), net&nbsp;&nbsp;&nbsp;&nbsp; | 83 | 115 | (26) | 172 | (33) | 522 | (154) | 335 |
| &nbsp;&nbsp;Write-offs, net of recoveries | (14) | (74) |  | (88) | (14) | (262) |  | (276) |
| &nbsp;&nbsp;Foreign exchange | 16 |  |  | 16 | (63) |  |  | (63) |
| Ending balance | $11568 | $1277 | $429 | $13274 | $11568 | $1277 | $429 | $13274 |

---

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| *(In thousands of U.S. Dollars)* | **Theater<br>Operators** | **Studios** | **Other** | **Total** | **Theater<br>Operators** | **Studios** | **Other** | **Total** |
| Beginning balance&nbsp;&nbsp;&nbsp;&nbsp; | $14247 | $630 | $1079 | $15956 | $14355 | $616 | $1006 | $15977 |
| &nbsp;&nbsp;Current period provision (reversal), net&nbsp;&nbsp;&nbsp;&nbsp; | 53 | 24 | 1 | 78 | (41) | 38 | 74 | 71 |
| &nbsp;&nbsp;Write-offs, net of recoveries | (178) | (3) |  | (181) | (178) | (3) |  | (181) |
| &nbsp;&nbsp;Foreign exchange | (27) |  |  | (27) | (41) |  |  | (41) |
| Ending balance | $14095 | $651 | $1080 | $15826 | $14095 | $651 | $1080 | $15826 |

---

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

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

---

| | | |
|:---|:---|:---|
| | **June 30,** | **December 31,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** |
| Net investment in leases: |  |  |
| &nbsp;&nbsp;Gross minimum payments due under sales-type leases | $30203 | $30890 |
| &nbsp;&nbsp;Unearned finance income | (1108) | (887) |
| &nbsp;&nbsp;&nbsp;&nbsp;Present value of minimum payments due under sales-type leases | 29095 | 30003 |
| &nbsp;&nbsp;Allowance for credit losses | (454) | (664) |
| Net investment in leases | 28641 | 29339 |
| Financed sales receivables: |  |  |
| &nbsp;&nbsp;Gross minimum payments due under financed sales | 128917 | 127906 |
| &nbsp;&nbsp;Unearned finance income | (26617) | (27199) |
| &nbsp;&nbsp;&nbsp;&nbsp;Present value of minimum payments due under financed sales | 102300 | 100707 |
| &nbsp;&nbsp;Allowance for credit losses | (9819) | (10161) |
| Net financed sales receivables | 92481 | 90546 |
| Total financing receivables | $121122 | $119885 |
| Net financed sales receivables due within one year | $32336 | $30136 |
| Net financed sales receivables due after one year | 60145 | 60410 |
| Total financed sales receivables | $92481 | $90546 |

---

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

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| | | |
|:---|:---|:---|
| | **June 30,** | **December 31,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** |
| Weighted-average remaining lease term (in years): |  |  |
| &nbsp;&nbsp;Sales-type lease arrangements | 8.6 | 8.5 |
| Weighted-average interest rate |  |  |
| &nbsp;&nbsp;Sales-type lease arrangements | 7.15% | 7.24% |
| &nbsp;&nbsp;Financed sales receivables | 8.94% | 8.95% |

---

The tables below provide information on the Company's net investment in leases by credit quality indicator as of June 30, 2025 and December 31, 2024. The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis as per the origination year of the relationship, and include both billed and unbilled amounts.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of U.S. Dollars)* | **By Origination Year** | **By Origination Year** | **By Origination Year** | **By Origination Year** | **By Origination Year** | **By Origination Year** |  |
| **As of June 30, 2025** | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Total** |
| Net investment in leases: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Credit quality classification: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;In good standing | $543 | $3476 | $3026 | $3076 | $8856 | $8710 | $27687 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Watch |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-approved transactions | 1007 |  |  |  |  |  | 1007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transactions suspended |  |  |  |  |  | 401 | 401 |
| Total net investment in leases | $1550 | $3476 | $3026 | $3076 | $8856 | $9111 | $29095 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of U.S. Dollars)* | **By Origination Year** | **By Origination Year** | **By Origination Year** | **By Origination Year** | **By Origination Year** | **By Origination Year** |  |
| **As of December 31, 2024** | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** | **Total** |
| Net investment in leases: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Credit quality classification: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;In good standing | $3469 | $3190 | $3057 | $6625 | $1963 | $1931 | $20235 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Watch |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-approved transactions |  |  |  | 2800 | 1477 | 4664 | 8941 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transactions suspended |  |  | 426 |  |  | 401 | 827 |
| Total net investment in leases | $3469 | $3190 | $3483 | $9425 | $3440 | $6996 | $30003 |

---

The tables below provide information on the Company's financed sales receivables by credit quality indicator as of June 30, 2025 and December 31, 2024. The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis as per the origination year of the relationship, and include both billed and unbilled amounts.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of U.S. Dollars)* | **By Origination Year** | **By Origination Year** | **By Origination Year** | **By Origination Year** | **By Origination Year** | **By Origination Year** |  |
| **As of June 30, 2025** | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Total** |
| Financed sales receivables: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Credit quality classification: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;In good standing | $5966 | $5834 | $6757 | $5226 | $5245 | $42626 | $71654 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Watch |  |  |  |  |  | 533 | 533 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-approved transactions | 619 | 664 | 1054 | 223 | 3700 | 9879 | 16139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transactions suspended |  |  |  | 298 | 114 | 13562 | 13974 |
| Total financed sales receivables | $6585 | $6498 | $7811 | $5747 | $9059 | $66600 | $102300 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In thousands of U.S. Dollars)* | **By Origination Year** | **By Origination Year** | **By Origination Year** | **By Origination Year** | **By Origination Year** | **By Origination Year** |  |
| **As of December 31, 2024** | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** | **Total** |
| Financed sales receivables: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Credit quality classification: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;In good standing | $6217 | $7249 | $5980 | $6152 | $4974 | $41570 | $72142 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Watch |  |  |  |  |  | 567 | 567 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-approved transactions | 411 | 779 | 298 | 3468 | 1899 | 8132 | 14987 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transactions suspended |  |  |  | 114 | 143 | 12754 | 13011 |
| Total financed sales receivables | $6628 | $8028 | $6278 | $9734 | $7016 | $63023 | $100707 |

---

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| *(In thousands of U.S. Dollars)* | **Accrued** <br>**and** <br>**Current** | **30-89**<br>**Days** | **90+**<br>**Days** | **Billed** | **Unbilled** | **Recorded Receivable** | **Allowance for Credit Losses** | **Net** |
| Net investment in leases | $213 | $380 | $2541 | $3134 | $25961 | $29095 | $(454) | $28641 |
| Financed sales receivables | 1336 | 2185 | 11277 | 14798 | 87502 | 102300 | (9819) | 92481 |
| Total | $1549 | $2565 | $13818 | $17932 | $113463 | $131395 | $(10273) | $121122 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| *(In thousands of U.S. Dollars)* | **Accrued and Current** | **30-89**<br>**Days** | **90+**<br>**Days** | **Billed** | **Unbilled** | **Recorded Receivable** | **Allowance for Credit Losses** | **Net** |
| Net investment in leases | $222 | $218 | $3185 | $3625 | $26378 | $30003 | $(664) | $29339 |
| Financed sales receivables | 895 | 1019 | 12462 | 14376 | 86331 | 100707 | (10161) | 90546 |
| Total | $1117 | $1237 | $15647 | $18001 | $112709 | $130710 | $(10825) | $119885 |

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The following tables provide information about the Company's net investment in leases and financed sales receivables with billed amounts past due for which it continues to accrue finance income as of June 30, 2025 and December 31, 2024. The amounts disclosed for each credit quality classification are determined on a theater-by-theater basis and include both billed and unbilled amounts.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| *(In thousands of U.S. Dollars)* | **Accrued and Current** | **30-89**<br>**Days** | **90+**<br>**Days** | **Billed** | **Unbilled** | **Allowance for Credit Losses** | **Net** |
| Net investment in leases | $200 | $355 | $2541 | $3096 | $18702 | $(6) | $21792 |
| Financed sales receivables | 1033 | 1662 | 9113 | 11808 | 39253 | (959) | 50102 |
| Total | $1233 | $2017 | $11654 | $14904 | $57955 | $(965) | $71894 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| *(In thousands of U.S. Dollars)* | **Accrued and Current** | **30-89**<br>**Days** | **90+**<br>**Days** | **Billed** | **Unbilled** | **Allowance for Credit Losses** | **Net** |
| Net investment in leases | $222 | $218 | $3185 | $3625 | $20176 | $(6) | $23795 |
| Financed sales receivables | 727 | 610 | 10143 | 11480 | 42208 | (1086) | 52602 |
| Total | $949 | $828 | $13328 | $15105 | $62384 | $(1092) | $76397 |

---

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

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| *(In thousands of U.S. Dollars)* | **Recorded**<br> **Receivable** | **Allowance for Credit**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Losses** | **Net** | **Recorded**<br> **Receivable** | **Allowance for Credit**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Losses** | **Net** |
| Net investment in leases | $401 | $(401) | $— | $827 | $(614) | $213 |
| Net financed sales receivables | 30646 | (9242) | 21404 | 28565 | (8317) | 20248 |
| Total | $31047 | $(9643) | $21404 | $29392 | $(8931) | $20461 |

---

For the three and six months ended June 30, 2025 and 2024, the Company did not recognize Finance Income related to the net investment in leases on non-accrual status. For the three and six months ended June 30, 2025, the Company recognized less than $0.1 million, respectively (2024 — less than $0.3 million and $0.7 million) in Finance Income related to the financed sales receivables in nonaccrual status.

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| *(In thousands of U.S. Dollars)* | **Net Investment <br>in Leases** | **Net Financed<br>Sales Receivables** | **Net Investment <br>in Leases** | **Net Financed<br>Sales Receivables** |
| Beginning balance | $667 | $9957 | $664 | $10161 |
| &nbsp;&nbsp;Current period reversal, net | (213) | (147) | (210) | (346) |
| &nbsp;&nbsp;Foreign exchange |  | 9 |  | 4 |
| Ending balance | $454 | $9819 | $454 | $9819 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| *(In thousands of U.S. Dollars)* | **Net Investment <br>in Leases** | **Net Financed<br>Sales Receivables** | **Net Investment <br>in Leases** | **Net Financed<br>Sales Receivables** |
| Beginning balance | $451 | $9616 | $453 | $9617 |
| &nbsp;&nbsp;Current period (reversal) provision, net | (1) | 17 | 3 | 13 |
| &nbsp;&nbsp;Foreign exchange |  | (8) | (6) | (5) |
| Ending balance | $450 | $9625 | $450 | $9625 |

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

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

*Variable Consideration Receivables*

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 three and six months ended June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| <br>*(In thousands of U.S. Dollars)* | **Theater**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Operators** | **Theater**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Operators** | **Theater**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Operators** | **Theater**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Operators** |
| Beginning balance | $107 | $636 | $116 | $633 |
| &nbsp;&nbsp;Current period provision, net | 13 | 41 | 4 | 44 |
| &nbsp;&nbsp;Foreign exchange |  |  |  |  |
| Ending balance | $120 | $677 | $120 | $677 |

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

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**4. Lease Arrangements** 

***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 Note 2 of the Company's audited Consolidated Financial Statements included in its 2024 Form 10-K. 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 joint revenue sharing arrangements ("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 ten years or longer with renewal provisions. Title to the IMAX System under a joint revenue sharing arrangement generally does not transfer to the customer. The Company's joint revenue sharing 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 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 remainder of 2025, next four years and thereafter following the June 30, 2025 balance sheet date:

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| | |
|:---|:---|
| *(In thousands of U.S. Dollars)* | **Sales-Type** <br>**Leases** |
| 2025 (six months remaining) | $1619 |
| 2026 | 3258 |
| 2027 | 3163 |
| 2028 | 3017 |
| 2029 | 3017 |
| Thereafter | 16129 |
| Total | $30203 |

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**5. Inventories**

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

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| | | |
|:---|:---|:---|
| | **June 30,** | **December 31,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** |
| Raw materials | $31181 | $29162 |
| Work-in-process | 1871 | 1611 |
| Finished goods | 3647 | 2067 |
| Total | $36699 | $32840 |

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

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

 **6. Borrowings**

***Revolving Credit Facility Borrowings, Net***

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

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| | | |
|:---|:---|:---|
| | **June 30,** | **December 31,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** |
| Wells Fargo Credit Facility borrowings | $48000 | $37000 |
| Unamortized debt issuance costs | (453) | (644) |
| Revolving Credit Facility Borrowings, net | $47547 | $36356 |

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*Credit Agreement*

The Company was a party to a Sixth Amended and Restated Credit Agreement, dated as of March 25, 2022 (the "Credit Agreement"), that provided for a credit facility (the "Credit Facility") maturing March 25, 2027. The Company's obligations under the Credit Agreement are guaranteed by certain of the Company's subsidiaries (the "Guarantors"), and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors.

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

The Credit Agreement required that the Company maintain a maximum Senior Secured Net Leverage Ratio (as defined in the Credit Agreement) of no greater than 3.25:1.00, on the last day of each fiscal quarter. The Company was in compliance with this requirement as of June 30, 2025 as the Senior Secured Net Leverage Ratio was 0.00:1.00.

As of June 30, 2025, borrowings under the Credit Facility were $48.0 million (December 31, 2024 — $37.0 million) and bore interest at Term SOFR, plus a margin of 1.75% per annum based on the Company's total leverage ratio. The effective interest rate for the three and six months ended June 30, 2025 were 6.17%, respectively.

As of June 30, 2025 and December 31, 2024, the Company had no letters of credit or advance payment guarantees outstanding under the Credit Facility. As of June 30, 2025, the amount available for future borrowings under the Credit Facility was $252.0 million (December 31, 2024 — $263.0 million).

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

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the Company's revolving borrowing capacity to $375.0 million, and also contains an uncommitted accordion feature allowing the Company to further expand its borrowing capacity to $515.0 million or greater, in the form of revolving loans and/or term loans under the incremental facility and subject to conditions set forth in the New Credit Agreement. The facility under the New Credit Agreement (the "New Facility") matures on July 14, 2030; provided that if certain convertible debt that is permitted to be incurred under the New Credit Agreement, and is so incurred after the date of the New Credit Agreement, has a maturity date that is earlier than 91 days after the maturity date of the New Facility and the aggregate amount of any such convertible debt that remains outstanding on the date that is 91 days prior to the earliest maturity date of any such convertible debt (the "Springing Maturity Date") exceeds $100.0 million, then the maturity date for the New Facility shall automatically be modified to be the Springing Maturity Date.

Loans under the New Facility will bear interest, at the Company's option, at (i) Term SOFR, Eurocurrency Rate or Term CORRA plus a margin ranging from 1.00% to 1.75% per annum or (ii) the U.S. base rate or the Canadian prime rate plus a margin ranging from 0.25% to 1.00% per annum, in each case depending on the Company's total leverage ratio. In no event will Term SOFR, Eurocurrency Rate or Term CORRA be less than 0.00% per annum.

The New Credit Agreement requires that the Company does not exceed a maximum senior secured net leverage ratio of 3.25:1.00, which may be increased under certain circumstances and is tested on the last day of each fiscal quarter. In addition, the New Credit Agreement contains customary affirmative and negative covenants for a transaction of this type, including covenants that limit indebtedness, liens, asset sales, investments and restricted payments, in each case, subject to negotiated exceptions and baskets. The New Credit Agreement also contains representations, warranties and event of default provisions customary for a transaction of this type. The Company's obligations under the New Credit Agreement are guaranteed by certain of the Guarantors, and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors.

At closing, the Company incurred $52.0 million under the New Credit Agreement to repay the outstanding balance under the Credit Facility. The Company estimates the fees incurred in connection with the New Credit Agreement to be approximately $2.2 million, which will be amortized on a straight-line basis over the term of the New Credit Agreement.

*Foreign Exchange Facility*

Within the Credit Facility, the Company is able to purchase foreign currency forward contracts and/or other swap arrangements. As of June 30, 2025, the net unrealized gain on the Company's outstanding foreign currency forward contracts was $1.4 million, representing the amount by which the notional value of these forward contracts exceeded their fair value (December 31, 2024 — net unrealized loss of $2.0 million). As of June 30, 2025, the notional value of the Company's outstanding foreign currency forward contracts was $51.3 million (December 31, 2024 — $48.4 million).

*Bank of China Facility*

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

As of June 30, 2025, the amount available for future borrowings under the Bank of China Facility was RMB 190.0 million ($26.5 million) and the amount available for letters of guarantee was RMB 9.8 million ($1.4 million). The amount available for future borrowings under the Bank of China Facility is not subject to a standby fee. The effective interest rate for the three and six months ended June 30, 2025 was 0% for each such period (2024 — 0% for each such period).There were no amounts drawn under the Bank of China Facility for the three and six months ended June 30, 2025.

*HSBC China Facility*

In June 2022, IMAX Shanghai entered into an unsecured revolving facility for up to RMB 200.0 million ($27.9 million) with HSBC Bank (China) Company Limited, Shanghai Branch to fund ongoing working capital requirements (the "HSBC China Facility"). As of June 30, 2025 and December 31, 2024, no borrowings were outstanding under the HSBC China Facility. As of June 30, 2025, the amount available for future borrowings under the HSBC China Facility was RMB 200.0 million ($27.9 million). The effective interest rate for the three and six months ended June 30, 2025 was 0% for each such period (2024 — 0%).

*NBC Facility*

The NBC Facility (as defined and described in Note 13 to the Company's audited Consolidated Financial Statements in its 2024 Form 10-K) has been renewed to September 20, 2025. The Company did not have any letters of credit or advance payment guarantees outstanding as of June 30, 2025 and December 31, 2024 under the NBC Facility.

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***Convertible Notes and Other Borrowings, Net***

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

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| | | |
|:---|:---|:---|
| | **June 30,** | **December 31,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** |
| Convertible Notes | $230000 | $230000 |
| Unamortized discounts and debt issuance costs | (1112) | (1864) |
| Convertible Notes, net | 228888 | 228136 |
| Federal Economic Development Loan | 1761 | 2056 |
| Unaccreted interest benefit | (175) | (291) |
| Federal Economic Development Loan, net | 1586 | 1765 |
| Convertible Notes and Other Borrowings, net | $230474 | $229901 |

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*Convertible Notes*

On March 19, 2021, the Company issued $230.0 million of 0.500% Convertible Senior Notes due 2026 (the "Convertible Notes").

The 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, beginning on October 1, 2021. The Convertible Notes will mature on April 1, 2026, unless they are redeemed or repurchased by the Company or converted on an earlier date.

The Company continues to record the Convertible Notes entirely as a liability on the Condensed 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.

*Federal Economic Development Loan* 

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

**7. Commitments, Contingencies and Guarantees**

***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.

***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. On October 24, 2024, the Bombay High Court announced the dismissal of the Company's application, and the Court issued a written order of dismissal on November 14, 2024. On December 13, 2024, the Company filed an appeal of this order, and the Company fully intends to continue pursuing its rights and seeking to enforce the arbitration award. The Company has also taken steps to enforce the ICC final award outside of India. In December 2011, the Ontario Superior Court of Justice issued an order recognizing the final award and requiring E-City to pay the Company $30,000 to cover the costs of the application, and in May 2012, the New York Supreme Court recognized the Canadian judgment and entered it as a New York judgment. 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.

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***Product Warranties***

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

***Director and Officer Indemnifications***

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 has been accrued on the Company's Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, with respect to this indemnity.

***Other Indemnification Agreements***

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 Condensed Consolidated Financial Statements with respect to the contingent aspect of these indemnities.

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
| | **2025** | **2025** | **2024** | **2024** |
| *(In thousands of U.S. Dollars)* | **Sales <br>Commissions** | **Marketing <br>and Other** | **Sales** <br>**Commissions** | **Marketing** <br>**and Other** |
| Technology sales<sup>(1)</sup> | $218 | $72 | $348 | $180 |
| Image enhancement and maintenance services<sup>(2)</sup> |  | 3415 |  | 4101 |
| Technology rentals<sup>(3)</sup> | 191 | 669 | 141 | 560 |
| Total | $409 | $4156 | $489 | $4841 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(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.*<br>*(2)Film exploitation costs, including advertising and marketing costs, are expensed as incurred.*<br>*(3)Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments. Direct advertising and marketing costs for each IMAX System are expensed as incurred.*  | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(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.*<br>*(2)Film exploitation costs, including advertising and marketing costs, are expensed as incurred.*<br>*(3)Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments. Direct advertising and marketing costs for each IMAX System are expensed as incurred.*  | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(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.*<br>*(2)Film exploitation costs, including advertising and marketing costs, are expensed as incurred.*<br>*(3)Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments. Direct advertising and marketing costs for each IMAX System are expensed as incurred.*  | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(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.*<br>*(2)Film exploitation costs, including advertising and marketing costs, are expensed as incurred.*<br>*(3)Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments. Direct advertising and marketing costs for each IMAX System are expensed as incurred.*  | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(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.*<br>*(2)Film exploitation costs, including advertising and marketing costs, are expensed as incurred.*<br>*(3)Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments. Direct advertising and marketing costs for each IMAX System are expensed as incurred.*  |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2025** | **2024** | **2024** |
| *(In thousands of U.S. Dollars)* | **Sales <br>Commissions** | **Marketing <br>and Other** | **Sales** <br>**Commissions** | **Marketing** <br>**and Other** |
| Technology sales<sup>(1)</sup> | $398 | $127 | $426 | $346 |
| Image enhancement and maintenance services<sup>(2)</sup> |  | 5850 |  | 6676 |
| Technology rentals<sup>(3)</sup> | 257 | 1000 | 250 | 1000 |
| Total | $655 | $6977 | $676 | $8022 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(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.*<br>*(2)Film exploitation costs, including advertising and marketing costs, are expensed as incurred.*<br>*(3)Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments. Direct advertising and marketing costs for each IMAX System are expensed as incurred.*  | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(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.*<br>*(2)Film exploitation costs, including advertising and marketing costs, are expensed as incurred.*<br>*(3)Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments. Direct advertising and marketing costs for each IMAX System are expensed as incurred.*  | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(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.*<br>*(2)Film exploitation costs, including advertising and marketing costs, are expensed as incurred.*<br>*(3)Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments. Direct advertising and marketing costs for each IMAX System are expensed as incurred.*  | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(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.*<br>*(2)Film exploitation costs, including advertising and marketing costs, are expensed as incurred.*<br>*(3)Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments. Direct advertising and marketing costs for each IMAX System are expensed as incurred.*  | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(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.*<br>*(2)Film exploitation costs, including advertising and marketing costs, are expensed as incurred.*<br>*(3)Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments. Direct advertising and marketing costs for each IMAX System are expensed as incurred.*  |

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***Foreign Exchange***

Included in Selling, General and Administrative Expenses for the three and six months ended June 30, 2025 is a foreign currency net gain of $0.2 million and loss of $0.2 million, respectively (2024 — net losses of $0.2 million and $0.5 million, respectively) resulting from changes in exchange rates related to foreign currency denominated monetary assets and liabilities. See Note 15 for additional information.

***Government Assistance***

For the three and six months ended June 30, 2025, the Company recognized $3.8 million in benefits received from the Internal Revenue Service under the Employee Retention Credit ("ERC") program which provides for a refundable tax credit for eligible businesses that had employees and were affected during the COVID-19 pandemic. The ERC has been recognized as a reduction to Selling, General and Administrative Expenses ($2.5 million) and Costs and Expenses Applicable to Revenues ($1.3 million).

***Collaborative Arrangements***

*Joint Revenue Sharing Arrangements*

The accounting policy for the Company's JRSAs is disclosed in Note 2 of the Company's audited Consolidated Financial Statements in its 2024 Form 10-K.

Revenue attributable to transactions arising between the Company and its customers under JRSAs are recorded within Revenues — Technology Sales (for hybrid JRSAs) and Revenues — Technology Rentals (for traditional JRSAs). For the three and six months ended June 30, 2025, such revenues totaled $18.7 million and $37.9 million, respectively (2024 — $13.3 million and $32.5 million, respectively).

*IMAX Film Remastering and Distribution*

The Company earns revenue through the digital remastering of films and other content into IMAX formats for distribution to the IMAX network ("IMAX Film Remastering"). The accounting policy for IMAX Film Remastering and distribution arrangements is disclosed in Note 2 of the Company's audited Consolidated Financial Statements in its 2024 Form 10-K.

Revenue attributable to transactions arising between the Company and its customers under IMAX Film Remastering and distribution arrangements are included in Revenues – Image Enhancement and Maintenance Services. For the three and six months ended June 30, 2025, such revenues totaled $28.7 million and $60.4 million, respectively (2024 — $21.3 million and $51.0 million, respectively). See Note 12 for a disaggregated presentation of the Company's revenues.

*Co-Produced Film Arrangements*

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

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

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

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**9. Condensed Consolidated Statements of Cash Flows – Supplemental Information**

***Changes in other operating assets and liabilities***

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| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** |
| (Increase) decrease in: |  |  |
| &nbsp;&nbsp;Financing receivables | $(911) | $3554 |
| &nbsp;&nbsp;Prepaid expenses | (49) | (663) |
| &nbsp;&nbsp;Variable consideration receivables | (683) | (5633) |
| &nbsp;&nbsp;Other assets | 1155 | 1412 |
| Increase (decrease) in: |  |  |
| &nbsp;&nbsp;Accounts payable | 11694 | (6233) |
| &nbsp;&nbsp;Accrued and other liabilities | (15506) | (11523) |
| Total | $(4300) | $(19086) |

---

***Depreciation and amortization***

---

| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** |
| Film assets | $9529 | $13867 |
| Property, plant and equipment: |  |  |
| &nbsp;&nbsp;Equipment supporting JRSAs | 11378 | 11495 |
| &nbsp;&nbsp;Other property, plant and equipment | 4426 | 4296 |
| Other intangible assets | 4205 | 3289 |
| Other assets | 1271 | 1055 |
| Total | $30809 | $34002 |

---

***Write-downs***

---

| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** |
| Other assets | $381 | $— |
| Inventories | 194 | 166 |
| Property, plant and equipment: |  |  |
| &nbsp;&nbsp;Equipment supporting JRSAs | 399 | 2137 |
| &nbsp;&nbsp;Other property, plant and equipment | 3 | 52 |
| Other intangible assets |  | 35 |
| Film assets | 70 | 9 |
| Total | $1047 | $2399 |

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***Significant non-cash investing activities***

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| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** |
| Net decrease in accruals related to: |  |  |
| &nbsp;&nbsp;Investment in equipment supporting JRSAs | $(121) | $(209) |
| &nbsp;&nbsp;Acquisition of other intangible assets | (4) | 2 |
| &nbsp;&nbsp;Purchases of property, plant and equipment |  | (15) |
| Net amount | $(125) | $(222) |

---

**10. Income Taxes**

***Income Tax (Expense) Benefit***

For the three months ended June 30, 2025, the Company recorded an income tax expense of $1.2 million (2024 — tax benefit of $4.0 million). The Company's effective tax rate of 8.9% for the three months ended June 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and reflects a decrease in the valuation allowance.

For the six months ended June 30, 2025, the Company recorded an income tax expense of $8.5 million (2024 — tax expense of $1.2 million). The Company's effective tax rate of 29.4% for the six months ended June 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and also reflects an increase in the valuation allowance, withholding taxes and a tax benefit related to share-based compensation.

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was signed into law, introducing significant U.S. tax changes. Key provisions that may impact IMAX are Interest Deductibility (IRC §163(j)), Bonus Depreciation and Section §179. The Company is currently evaluating the Act's potential impact on its Consolidated Financial Statements and will update its assessment as further guidance becomes available.

As of June 30, 2025, the Company's Condensed Consolidated Balance Sheets included net deferred income tax assets of $13.6 million (December 31, 2024 — $14.5 million). Realization of net deferred tax assets is dependent upon generation of sufficient taxable income in future years to obtain benefit from the reversal of temporary differences, net operating loss carryforwards and tax credit carryforwards. The amount of net deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change.

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

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**11. Capital Stock and Reserves**

***Share-Based Compensation***

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** | **2025** | **2024** |
| Costs and expenses applicable to revenues | $305 | $247 | $596 | $475 |
| Selling, general and administrative expenses | 6862 | 6506 | 11582 | 10843 |
| Research and development | 190 | 110 | 384 | 221 |
| Total | $7357 | $6863 | $12562 | $11539 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** | **2025** | **2024** |
| Restricted Share Units | $4519 | $4133 | $7386 | $6875 |
| Performance Stock Units | 1969 | 1966 | 3901 | 3818 |
| IMAX China Long Term Incentive Plan Restricted Share Units | 734 | 695 | 1047 | 722 |
| IMAX China Long Term Incentive Plan Performance Stock Units | 135 | 69 | 228 | 124 |
|  | $7357 | $6863 | $12562 | $11539 |

---

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

*Stock Option Summary*

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Number of Shares** | **Number of Shares** | **Weighted Average Exercise <br>Price Per Share** | **Weighted Average Exercise <br>Price Per Share** |
| | **2025** | **2024** | **2025** | **2024** |
| Stock options outstanding, beginning of period | 2469238 | 3329422 | $26.27 | $26.23 |
| &nbsp;&nbsp;Exercised | (48487) |  | 21.62 |  |
| &nbsp;&nbsp;Expired | (470582) | (607114) | 29.53 | 28.15 |
| &nbsp;&nbsp;Cancelled |  | (1768) |  | 24.38 |
| Stock options outstanding, end of period | 1950169 | 2720540 | 25.60 | 25.80 |
| Stock options exercisable, end of period | 1950169 | 2720540 | 25.60 | 25.80 |

---

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

*IMAX LTIP Restricted Share Units ("RSU") Summary*

The following table summarizes the activity in respect of RSUs issued under the IMAX Corporation Second Amended and Restated Long-Term Incentive Plan (as may be amended, "IMAX LTIP") for the six months ended June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Number of Shares** | **Number of Shares** | **Weighted Average Grant Date <br>Fair Value Per Share** | **Weighted Average Grant Date <br>Fair Value Per Share** |
| | **2025** | **2024** | **2025** | **2024** |
| RSUs outstanding, beginning of period | 1465977 | 1286830 | $17.16 | $18.53 |
| &nbsp;&nbsp;Granted | 542555 | 946507 | 25.21 | 16.43 |
| &nbsp;&nbsp;Vested and settled | (712092) | (682549) | 18.18 | 18.70 |
| &nbsp;&nbsp;Forfeited | (25593) | (37844) | 19.83 | 18.34 |
| RSUs outstanding, end of period | 1270847 | 1512944 | 19.98 | 17.14 |

---

*IMAX LTIP Performance Stock Units ("PSU") Summary*

The Company grants two types of PSU awards, one which vests based on a combination of employee service and the achievement of certain Adjusted EBITDA targets and one which vests based on a combination of employee service and the achievement of total shareholder return ("TSR") targets. The achievement of these targets are assessed over a three-year performance period, with vesting ranging from 0% to 175% of the initial Adjusted EBITDA PSU award or 150% of the initial TSR PSU award, depending upon actual performance.

The grant date fair value for Adjusted EBITDA PSUs is equal to the closing price of the Company's common shares on the date of grant or the average closing price of the Company's common shares for five days prior to the date of grant. The grant date fair value for TSR PSUs is determined using a Monte Carlo Model, influenced by share price and various assumptions, such as, market conditions and expected share price volatility over the term of the awards.

The compensation expense attributable for each type of PSUs is recognized on a straight-line basis over the requisite service period. If, as a result of management's assessment, it is projected that a greater or lesser number of PSUs will vest than previously anticipated, a life-to-date adjustment to increase or decrease compensation expense is recorded in the period that such determination is made, respectively. The expense recognized in the six months ended June 30, 2025 and 2024 includes adjustments reflecting management's estimate of the number of Adjusted EBITDA PSUs expected to vest.

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Number of Awards** | **Number of Awards** | **Weighted Average Grant Date <br>Fair Value Per Share** | **Weighted Average Grant Date <br>Fair Value Per Share** | **Weighted Average Grant Date <br>Fair Value Per Share** | **Weighted Average Grant Date <br>Fair Value Per Share** |
| | **2025** | **2024** | **2025** | **2025** | **2024** | **2024** |
| PSUs outstanding, beginning of period | 1097634 | 922621 | $| 17.99 | $| 19.16 |
| &nbsp;&nbsp;Granted<sup>(1)</sup> | 551084 | 580336 | 24.17 | 24.17 | 17.97 | 17.97 |
| &nbsp;&nbsp;Vested and settled<sup>(1)</sup> | (463212) | (316226) | 19.88 | 19.88 | 19.71 | 19.71 |
| &nbsp;&nbsp;Forfeited | (24456) | (85764) | 20.44 | 20.44 | 21.00 | 21.00 |
| PSUs outstanding, end of period | 1161050 | 1100967 | 20.12 | 20.12 | 18.32 | 18.32 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)For the six months ended June 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $19.53, as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175% on account of full achievement of the targets and TSR targets vested at 123.5%, which reflects actual performance.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)For the six months ended June 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $19.53, as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175% on account of full achievement of the targets and TSR targets vested at 123.5%, which reflects actual performance.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)For the six months ended June 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $19.53, as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175% on account of full achievement of the targets and TSR targets vested at 123.5%, which reflects actual performance.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)For the six months ended June 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $19.53, as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175% on account of full achievement of the targets and TSR targets vested at 123.5%, which reflects actual performance.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)For the six months ended June 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $19.53, as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175% on account of full achievement of the targets and TSR targets vested at 123.5%, which reflects actual performance.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)For the six months ended June 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $19.53, as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175% on account of full achievement of the targets and TSR targets vested at 123.5%, which reflects actual performance.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)For the six months ended June 30, 2025, the balance of shares granted includes 176,751 additional shares, at a weighted average grant date fair value per share of $19.53, as PSUs granted in 2022 with Adjusted EBITDA targets vested at 175% on account of full achievement of the targets and TSR targets vested at 123.5%, which reflects actual performance.* |

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

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***Issuer Purchases of Equity Securities***

On June 12, 2017, the Company announced that its Board of Directors approved a $200.0 million share repurchase program for its common shares that would have expired on June 30, 2020, which was subsequently extended through June 30, 2026 and increased to a total share repurchase authority of $400.0 million. In June 2025, the Company's Board of Directors approved a 12-month extension to its share repurchase program through June 30, 2027 and an increase of $100.0 million in the Company's share repurchase program authorization. With the increase of $100 million, the Company's total share repurchase authority is $500.0 million under the current share repurchase program. As of June 30, 2025, the Company had $250.7 million available under the program. The repurchases may be made either in the open market or through private transactions, including repurchases made pursuant to a plan intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements, and other relevant factors. The Company has no obligation to repurchase shares and the share repurchase program may be suspended or discontinued by the Company at any time.

During the three and six months ended June 30, 2025, the Company did not have any repurchases of common shares. During the three and six months ended June 30, 2024, the Company repurchased 7,646 and 1,166,370 common shares, respectively, at an average price of $14.98 and $13.99 per share, respectively, for a total of $0.1 million and $16.3 million, respectively, excluding commissions. During the six months ended June 30, 2025 and 2024, there were no shares purchases in the administration of employee share-based plans.

As of June 30, 2025 and December 31, 2024, the IMAX LTIP trustee did not hold any shares. Any shares held with the trustee are recorded at cost and are reported as a reduction against Capital Stock on the Company's Condensed Consolidated Balance Sheets.

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 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.

During the three and six months ended June 30, 2025, IMAX China repurchased 1,495,900 common shares, at an average price of HKD 7.56 per share ($0.96 per share) for a total of HKD $11.3 million ($1.4 million), excluding commissions. During the three and six months ended June 30, 2024, IMAX China repurchased 119,000 common shares, at an average price of HKD 7.43 per share ($0.95 per share) for a total of HKD 0.9 million ($0.1 million). The change in the non-controlling interest attributable to IMAX China as a result of common shares repurchased is recorded as a reduction to Non-Controlling Interests in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Shareholders' Equity. The difference between the consideration paid and the ownership interest obtained as a result of IMAX China share repurchases is recorded within Other Equity in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Shareholders' Equity.

***Basic and Diluted Weighted Average Shares Outstanding***

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| *(In thousands)* | **2025** | **2024** | **2025** | **2024** |
| Issued and outstanding, beginning of period | 53742 | 52625 | 52946 | 53260 |
| Weighted average number of shares issued (repurchased), net | 9 | 8 | 502 | (692) |
| Weighted average number of shares outstanding - basic | 53751 | 52633 | 53448 | 52568 |
| Weighted average effect of potential common shares, if dilutive | 1410 | 795 | 1616 | 818 |
| Weighted average number of shares outstanding - diluted | 55161 | 53428 | 55064 | 53386 |

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For the three and six months ended June 30, 2025, the calculation of diluted weighted average shares outstanding excludes 929,825 and 968,984 shares, respectively (2024 — 3,118,725 and 3,716,606 shares, respectively) that are issuable upon the vesting or exercise of share-based compensation including: (i) $nil RSUs (2024 — 355,337 and 664,720 RSUs, respectively), (ii) 86,784 and 125,943

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

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

***Statutory Surplus Reserve***

Pursuant to the corporate law of the PRC, entities registered in the PRC are required to maintain certain statutory reserves, which are appropriated from after-tax profits (after offsetting accumulated losses from prior years), as reported in their respective statutory financial statements, before the declaration or payment of dividends to equity holders. All statutory reserves are created for specific purposes.

The statutory surplus reserve of RMB 37.7 million ($5.8 million) has reached 50% of the Company's PRC subsidiaries' registered capital, and as such, no further contributions to the reserve are required.

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**12. Revenue from Contracts with Customers**

***Disaggregated Information About Revenue***

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

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| *(In thousands of U.S. Dollars)* | **Technology Sales** | **Image Enhancement and Maintenance Services** | **Technology Rentals** | **Finance Income** | **Total** |
| Content Solutions Segment: |  |  |  |  |  |
| &nbsp;&nbsp;Film Remastering and Distribution | $— | $31650 | $— | $— | $31650 |
| &nbsp;&nbsp;Other Content Solutions |  | 1907 | 408 |  | 2315 |
|  |  | 33557 | 408 |  | 33965 |
| Technology Products and Services Segment: |  |  |  |  |  |
| &nbsp;&nbsp;System Sales | 18000 |  |  |  | 18000 |
| &nbsp;&nbsp;System Rentals |  |  | 18708 |  | 18708 |
| &nbsp;&nbsp;Maintenance |  | 16059 |  |  | 16059 |
| &nbsp;&nbsp;Finance Income |  |  |  | 2872 | 2872 |
|  | 18000 | 16059 | 18708 | 2872 | 55639 |
| &nbsp;&nbsp;Sub-total for reportable segments | 18000 | 49616 | 19116 | 2872 | 89604 |
| All Other | 842 | 1238 |  |  | 2080 |
| Total | $18842 | $50854 | $19116 | $2872 | $91684 |
|  | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| *(In thousands of U.S. Dollars)* | **Technology Sales** | **Image Enhancement and Maintenance Services** | **Technology Rentals** | **Finance Income** | **Total** |
| Content Solutions Segment |  |  |  |  |  |
| &nbsp;&nbsp;Film Remastering and Distribution | $— | $63807 | $— | $— | $63807 |
| &nbsp;&nbsp;Other Content Solutions |  | 3824 | 583 |  | 4407 |
|  |  | 67631 | 583 |  | 68214 |
| Technology Products and Services Segment |  |  |  |  |  |
| &nbsp;&nbsp;System Sales | 30720 |  |  |  | 30720 |
| &nbsp;&nbsp;System Rentals |  |  | 37844 |  | 37844 |
| &nbsp;&nbsp;Maintenance |  | 31717 |  |  | 31717 |
| &nbsp;&nbsp;Finance Income |  |  |  | 5951 | 5951 |
|  | 30720 | 31717 | 37844 | 5951 | 106232 |
| &nbsp;&nbsp;Sub-total for reportable segments | 30720 | 99348 | 38427 | 5951 | 174446 |
| All Other | 1646 | 2259 |  |  | 3905 |
| Total | $32366 | $101607 | $38427 | $5951 | $178351 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| *(In thousands of U.S. Dollars)* | **Technology Sales** | **Image Enhancement and Maintenance Services** | **Technology Rentals** | **Finance Income** | **Total** |
| Content Solutions Segment |  |  |  |  |  |
| &nbsp;&nbsp;Film Remastering and Distribution | $— | $21304 | $— | $— | $21304 |
| &nbsp;&nbsp;Other Content Solutions |  | 13644 | 128 |  | 13772 |
|  |  | 34948 | 128 |  | 35076 |
| Technology Products and Services Segment |  |  |  |  |  |
| &nbsp;&nbsp;System Sales | 19443 |  |  |  | 19443 |
| &nbsp;&nbsp;System Rentals |  |  | 13915 |  | 13915 |
| &nbsp;&nbsp;Maintenance |  | 15231 |  |  | 15231 |
| &nbsp;&nbsp;Finance Income |  |  |  | 2309 | 2309 |
|  | 19443 | 15231 | 13915 | 2309 | 50898 |
| &nbsp;&nbsp;Sub-total for reportable segments | 19443 | 50179 | 14043 | 2309 | 85974 |
| All Other | 977 | 2010 |  |  | 2987 |
| Total | $20420 | $52189 | $14043 | $2309 | $88961 |
|  | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| *(In thousands of U.S. Dollars)* | **Technology Sales** | **Image Enhancement and Maintenance Services** | **Technology Rentals** | **Finance Income** | **Total** |
| Content Solutions Segment |  |  |  |  |  |
| &nbsp;&nbsp;Film Remastering and Distribution | $— | $51025 | $— | $— | $51025 |
| &nbsp;&nbsp;Other Content Solutions |  | 17936 | 128 |  | 18064 |
|  |  | 68961 | 128 |  | 69089 |
| Technology Products and Services Segment |  |  |  |  |  |
| &nbsp;&nbsp;System Sales | 26561 |  |  |  | 26561 |
| &nbsp;&nbsp;System Rentals |  |  | 32516 |  | 32516 |
| &nbsp;&nbsp;Maintenance |  | 30392 |  |  | 30392 |
| &nbsp;&nbsp;Finance Income |  |  |  | 4579 | 4579 |
|  | 26561 | 30392 | 32516 | 4579 | 94048 |
| &nbsp;&nbsp;Sub-total for reportable segments | 26561 | 99353 | 32644 | 4579 | 163137 |
| All Other | 1763 | 3184 |  |  | 4947 |
| Total | $28324 | $102537 | $32644 | $4579 | $168084 |

---

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

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

***Deferred Revenue***

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 June 30, 2025, $21.6 million of consideration

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

During the three and six months ended June 30, 2025, $10.8 million and $19.8 million of revenue, respectively, was recognized from the $52.7 million balance of deferred revenue as of December 31, 2024. During the three and six months ended June 30, 2024, $12.1 million and $24.2 million of revenue, respectively, was recognized from the $67.1 million balance of deferred revenue as of December 31, 2023.

**13. Segment Reporting**

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 accounting policies of the reportable segments are the same as those described in Note 2 - Summary of Significant Accounting Policies of the 2024 Form 10-K. Intercompany profit or loss is not included in the evaluation of performance and allocation of resources.

***Segment Financial Information***

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Revenue**<sup>(1)</sup> | **Revenue**<sup>(1)</sup> | **Revenue**<sup>(1)</sup> | **Revenue**<sup>(1)</sup> | **Gross Margin** | **Gross Margin** | **Gross Margin** | **Gross Margin** |
| *(In thousands of U.S. Dollars)* | **2025** | **2025** | **2024** | **2024** | **2025** | **2025** | **2024** | **2024** |
| Content Solutions | $| 33965 | $| 35076 | $| 22431 | $| 16138 |
| Technology Products and Services | 55639 | 55639 | 50898 | 50898 | 30178 | 30178 | 25783 | 25783 |
| Sub-total for reportable segments | 89604 | 89604 | 85974 | 85974 | 52609 | 52609 | 41921 | 41921 |
| All Other | 2080 | 2080 | 2987 | 2987 | 993 | 993 | 2006 | 2006 |
| Total | $| 91684 | $| 88961 | $| 53602 | $| 43927 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represents 12% of total Revenues for the three months ended June 30, 2025 (2024 — 14%) and one single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of June 30, 2025. No single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represents 12% of total Revenues for the three months ended June 30, 2025 (2024 — 14%) and one single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of June 30, 2025. No single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represents 12% of total Revenues for the three months ended June 30, 2025 (2024 — 14%) and one single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of June 30, 2025. No single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represents 12% of total Revenues for the three months ended June 30, 2025 (2024 — 14%) and one single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of June 30, 2025. No single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represents 12% of total Revenues for the three months ended June 30, 2025 (2024 — 14%) and one single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of June 30, 2025. No single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represents 12% of total Revenues for the three months ended June 30, 2025 (2024 — 14%) and one single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of June 30, 2025. No single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represents 12% of total Revenues for the three months ended June 30, 2025 (2024 — 14%) and one single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of June 30, 2025. No single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represents 12% of total Revenues for the three months ended June 30, 2025 (2024 — 14%) and one single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of June 30, 2025. No single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represents 12% of total Revenues for the three months ended June 30, 2025 (2024 — 14%) and one single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of June 30, 2025. No single customer accounted for more than 10% of the Company's total Accounts Receivable balance as of December 31, 2024.* |

---

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

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Revenue**<sup>(1)</sup> | **Revenue**<sup>(1)</sup> | **Revenue**<sup>(1)</sup> | **Revenue**<sup>(1)</sup> | **Gross Margin** | **Gross Margin** | **Gross Margin** | **Gross Margin** |
| *(In thousands of U.S. Dollars)* | **2025** | **2025** | **2024** | **2024** | **2025** | **2025** | **2024** | **2024** |
| Content Solutions | $| 68214 | $| 69089 | $| 45985 | $| 38237 |
| Technology Products and Services | 106232 | 106232 | 94048 | 94048 | 59264 | 59264 | 49367 | 49367 |
| Sub-total for reportable segments | 174446 | 174446 | 163137 | 163137 | 105249 | 105249 | 87604 | 87604 |
| All Other | 3905 | 3905 | 4947 | 4947 | 1529 | 1529 | 3212 | 3212 |
| Total | $| 178351 | $| 168084 | $| 106778 | $| 90816 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represented 10% of total Revenues for the six months ended June 30, 2025 (2024 — 13%). One single customer comprised of more than 10% of the Company's total Accounts Receivable as of June 30, 2025. No single customer comprised of more than 10% of the Company's total Accounts Receivable as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represented 10% of total Revenues for the six months ended June 30, 2025 (2024 — 13%). One single customer comprised of more than 10% of the Company's total Accounts Receivable as of June 30, 2025. No single customer comprised of more than 10% of the Company's total Accounts Receivable as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represented 10% of total Revenues for the six months ended June 30, 2025 (2024 — 13%). One single customer comprised of more than 10% of the Company's total Accounts Receivable as of June 30, 2025. No single customer comprised of more than 10% of the Company's total Accounts Receivable as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represented 10% of total Revenues for the six months ended June 30, 2025 (2024 — 13%). One single customer comprised of more than 10% of the Company's total Accounts Receivable as of June 30, 2025. No single customer comprised of more than 10% of the Company's total Accounts Receivable as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represented 10% of total Revenues for the six months ended June 30, 2025 (2024 — 13%). One single customer comprised of more than 10% of the Company's total Accounts Receivable as of June 30, 2025. No single customer comprised of more than 10% of the Company's total Accounts Receivable as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represented 10% of total Revenues for the six months ended June 30, 2025 (2024 — 13%). One single customer comprised of more than 10% of the Company's total Accounts Receivable as of June 30, 2025. No single customer comprised of more than 10% of the Company's total Accounts Receivable as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represented 10% of total Revenues for the six months ended June 30, 2025 (2024 — 13%). One single customer comprised of more than 10% of the Company's total Accounts Receivable as of June 30, 2025. No single customer comprised of more than 10% of the Company's total Accounts Receivable as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represented 10% of total Revenues for the six months ended June 30, 2025 (2024 — 13%). One single customer comprised of more than 10% of the Company's total Accounts Receivable as of June 30, 2025. No single customer comprised of more than 10% of the Company's total Accounts Receivable as of December 31, 2024.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The Company's largest customer represented 10% of total Revenues for the six months ended June 30, 2025 (2024 — 13%). One single customer comprised of more than 10% of the Company's total Accounts Receivable as of June 30, 2025. No single customer comprised of more than 10% of the Company's total Accounts Receivable as of December 31, 2024.* |

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

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| | | | | |
|:---|:---|:---|:---|:---|
| Content Solutions Segment: | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** | **2025** | **2024** |
| Revenue | $33965 | $35076 | $68214 | $69089 |
| &nbsp;&nbsp;Film asset amortization | 5190 | 8797 | 9529 | 13867 |
| &nbsp;&nbsp;Marketing and other selling expenses | 3415 | 4101 | 5850 | 6676 |
| &nbsp;&nbsp;Co-produced film participation expenses | 82 | 2873 | 179 | 2985 |
| &nbsp;&nbsp;Other segment expenses<sup>(1)</sup> | 2847 | 3167 | 6671 | 7324 |
| Total Costs and Expenses Applicable to Revenues | 11534 | 18938 | 22229 | 30852 |
| Gross Margin | $22431 | $16138 | $45985 | $38237 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Included within the Other segment expenses are costs related to film distribution, post production costs, production costs, and network connectivity fees.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Included within the Other segment expenses are costs related to film distribution, post production costs, production costs, and network connectivity fees.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Included within the Other segment expenses are costs related to film distribution, post production costs, production costs, and network connectivity fees.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Included within the Other segment expenses are costs related to film distribution, post production costs, production costs, and network connectivity fees.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Included within the Other segment expenses are costs related to film distribution, post production costs, production costs, and network connectivity fees.* |

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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: | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** | **2025** | **2024** |
| Revenue | $55639 | $50898 | $106232 | $94048 |
| &nbsp;&nbsp;Depreciation of equipment supporting JRSAs | 5716 | 5800 | 11378 | 11495 |
| &nbsp;&nbsp;Marketing and other selling expenses | 409 | 489 | 655 | 676 |
| &nbsp;&nbsp;Write-down of equipment supporting JRSAs | 311 | 2080 | 399 | 2137 |
| &nbsp;&nbsp;Write-down of inventory | 91 | 151 | 194 | 166 |
| &nbsp;&nbsp;Other segment expenses<sup>(1)</sup> | 18934 | 16595 | 34342 | 30207 |
| Total Costs and Expenses Applicable to Revenues | 25461 | 25115 | 46968 | 44681 |
| Gross Margin | $30178 | $25783 | $59264 | $49367 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Included within the Other segment expenses are costs related to the manufacturing and build of IMAX Systems recognized in the period, maintenance and warranty costs, and other product related costs. Also included is a recovery of $0.5 million for insurance proceeds received during the period, associated with inventory costs that were previously written off. The total proceeds received were $0.7 million, and the incremental gain of $0.2 million was recognized in selling, general and administrative expenses.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Included within the Other segment expenses are costs related to the manufacturing and build of IMAX Systems recognized in the period, maintenance and warranty costs, and other product related costs. Also included is a recovery of $0.5 million for insurance proceeds received during the period, associated with inventory costs that were previously written off. The total proceeds received were $0.7 million, and the incremental gain of $0.2 million was recognized in selling, general and administrative expenses.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Included within the Other segment expenses are costs related to the manufacturing and build of IMAX Systems recognized in the period, maintenance and warranty costs, and other product related costs. Also included is a recovery of $0.5 million for insurance proceeds received during the period, associated with inventory costs that were previously written off. The total proceeds received were $0.7 million, and the incremental gain of $0.2 million was recognized in selling, general and administrative expenses.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Included within the Other segment expenses are costs related to the manufacturing and build of IMAX Systems recognized in the period, maintenance and warranty costs, and other product related costs. Also included is a recovery of $0.5 million for insurance proceeds received during the period, associated with inventory costs that were previously written off. The total proceeds received were $0.7 million, and the incremental gain of $0.2 million was recognized in selling, general and administrative expenses.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Included within the Other segment expenses are costs related to the manufacturing and build of IMAX Systems recognized in the period, maintenance and warranty costs, and other product related costs. Also included is a recovery of $0.5 million for insurance proceeds received during the period, associated with inventory costs that were previously written off. The total proceeds received were $0.7 million, and the incremental gain of $0.2 million was recognized in selling, general and administrative expenses.* |

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***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.

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** | **2025** | **2024** |
| United States | $42391 | $38296 | $64962 | $64900 |
| Greater China | 17677 | 22750 | 57802 | 44203 |
| Western Europe | 14112 | 10508 | 21665 | 24699 |
| Asia (excluding Greater China) | 9312 | 9587 | 18603 | 18713 |
| Latin America | 2150 | 2258 | 4107 | 3718 |
| Canada | 2494 | 3159 | 3896 | 5567 |
| Rest of the World | 3548 | 2403 | 7316 | 6284 |
| Total | $91684 | $88961 | $178351 | $168084 |

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

**14. Employee's Pension and Postretirement Benefits** 

***Defined Benefit Plan***

The Company has an unfunded defined benefit pension plan, the Supplemental Executive Retirement Plan (the "SERP"), covering its CEO, Richard L. Gelfond. 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.

As of June 30, 2025, the Company's projected benefit obligation under the SERP was $19.4 million (December 31, 2024 — $19.0 million). For the three and six months ended June 30, 2025, the Company recorded interest costs of $0.2 million and $0.4 million, respectively, (2024 — $0.2 million and $0.4 million, respectively) related to the SERP. The Company expects to recognize additional interest costs of $0.4 million related to the SERP during the remainder of 2025. No contributions are expected to be made to the SERP in 2025.

***Postretirement Benefits – Executives***

The Company has an unfunded postretirement plan for Mr. Gelfond and Bradley J. Wechsler, former Chairman of the Company's Board of Directors (the "Executive Postretirement Benefit Plan").

As of June 30, 2025, the Company's postretirement benefits obligation under this plan was $0.5 million (December 31, 2024 — $0.5 million). For the three and six months ended June 30, 2025, the Company has recorded an expense of less than $0.1 million, respectively (2024 — less than $0.1 million, respectively) related to this plan.

***Postretirement Benefits – Canadian Employees***

The Company has an unfunded postretirement plan for its Canadian employees meeting specific eligibility requirements. The Company will provide eligible participants, upon retirement, with health and welfare benefits. As of June 30, 2025, the Company's postretirement benefits obligation under this plan was $0.8 million (December 31, 2024 — $0.8 million). For the three and six months ended June 30, 2025, the Company has recorded expense of less than $0.1 million, respectively, (2024 — less than $0.1 million, respectively) related to this plan.

***Deferred Compensation Benefit Plan***

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).

As of June 30, 2025, the benefit obligation related to the Retirement Plan was $4.3 million (December 31, 2024 — $4.2 million) and is recorded on the Company's Condensed Consolidated Balance Sheets within Accrued and Other Liabilities. As the Retirement Plan is fully vested, the benefit obligation is measured at the present value of the benefits expected to be paid in the future with the accretion of interest recognized in the Condensed Consolidated Statements of Operations within Retirement Benefits Non-Service Expense.

The Retirement Plan is funded by an investment in company-owned life insurance ("COLI"), which is recorded at its fair value on the Company's Condensed Consolidated Balance Sheets within Prepaid Expenses. As of June 30, 2025, fair value of the COLI asset was $3.7 million (December 31, 2024 — $3.6 million). Gains and losses resulting from changes in the cash surrender value of the COLI asset are recognized in the Condensed Consolidated Statements of Operations within Realized and Unrealized Investment Gains.

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<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

**15. Financial Instruments** 

***Financial Instruments***

The Company's cash is invested with various major financial institutions. The Company's $109.3 million balance of cash and cash equivalents as of June 30, 2025 (December 31, 2024 — $100.6 million) included $100.9 million in cash held outside of Canada (December 31, 2024 — $85.4 million), of which $61.5 million was held in the People's Republic of China ("PRC") (December 31, 2024 — $47.5 million).

***Fair Value Measurements***

The carrying values of the Company's Cash and Cash Equivalents, Accounts Receivable, Variable Consideration, Accounts Payable and Accrued 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 consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| *(In thousands of U.S. Dollars)* | **Carrying Amount** | **Estimated Fair Value** | **Carrying Amount** | **Estimated Fair Value** |
| <u>Level 2</u> |  |  |  |  |
| Net financed sales receivables<sup>(1)</sup> | $92481 | $83990 | $90546 | $81876 |
| Net investment in sales-type leases<sup>(1)</sup> | 28641 | 26816 | 29339 | 25322 |
| Convertible Notes<sup>(2)</sup> | (230000) | (264778) | (230000) | (234009) |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Fair value is determined using quoted prices in active markets.*<br>*(2)Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Fair value is determined using quoted prices in active markets.*<br>*(2)Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Fair value is determined using quoted prices in active markets.*<br>*(2)Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Fair value is determined using quoted prices in active markets.*<br>*(2)Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Fair value is determined using quoted prices in active markets.*<br>*(2)Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data.* |

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***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, HKD 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 receipts in 89 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 June 30, 2025 (the "Foreign Currency Hedges"), with settlement dates throughout 2025 and 2026. Foreign currency derivatives are recognized and measured on the Condensed Consolidated Balance Sheets at fair value. Changes in the fair value (i.e., gains or losses) are recognized in the Condensed 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 Condensed Consolidated Statements of Operations when the forecasted transaction occurs. Any ineffective portion is recognized immediately in the Condensed Consolidated Statements of Operations.

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The following tabular disclosures reflect the impact that derivative instruments and hedging activities have on the Company's Condensed Consolidated Financial Statements:

<u>Notional value of derivatives in foreign exchange contracts:</u>

---

| | | |
|:---|:---|:---|
| | **June 30,** | **December 31,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** |
| Derivatives designated as hedging instruments: |  |  |
| &nbsp;&nbsp;Foreign exchange contracts — Forwards | $51324 | $48376 |

---

<u>Fair value of derivatives in foreign exchange contracts:</u>

---

| | | | |
|:---|:---|:---|:---|
| | | **June 30,** | **December 31,** |
| *(In thousands of U.S. Dollars)* | **Balance Sheet Location** | **2025** | **2024** |
| Derivatives designated as hedging instruments: |  |  |  |
| &nbsp;&nbsp;Foreign exchange contracts — Forwards | Other assets | $1430 | $— |
|  | Accrued and other liabilities | (27) | (2029) |
|  |  | $1403 | $(2029) |

---

<u>Derivatives in foreign currency hedging relationships are as follows:</u>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| *(In thousands of U.S. Dollars)* |  | **2025** | **2024** | **2025** | **2024** |
| Foreign exchange contracts — Forwards | &nbsp;&nbsp;&nbsp;Derivative Gain (Loss)<br>Recognized in OCI<br>(Effective Portion) | $2520 | $(365) | $1805 | $(1281) |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| *(In thousands of U.S. Dollars)* | **Location of Derivative Loss**<br>**Reclassified from AOCI**<br>**(Effective Portion)** | **2025** | **2024** | **2025** | **2024** |
| Foreign exchange contracts — Forwards | &nbsp;&nbsp;&nbsp;Selling, general and <br>administrative expenses | $(292) | $(67) | $(1627) | $(78) |

---

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

**16. Non-Controlling Interests**

***IMAX China Non-Controlling Interest***

As of June 30, 2025, the Company indirectly owned 71.72% of the outstanding equity interest in IMAX China, whose shares trade on the Hong Kong Stock Exchange (December 31, 2024 — 71.40%). IMAX China remains a consolidated subsidiary of the Company. As of June 30, 2025, the balance of the Company's non-controlling interest in IMAX China was $84.0 million (December 31, 2024 — $78.1 million). For the three and six months ended June 30, 2025, the net income attributable to the non-controlling interest in IMAX China is $1.0 million and $6.8 million, respectively (2024 — $1.5 million and $3.6 million, respectively).

**17. Restructuring and Other Charges**

In the three and six months ended June 30, 2025, the Company incurred $0.8 million for each such period (2024 — $nil during each such period) in Restructuring and other charges in the Consolidated Statements of Operations. These charges are associated with continued strategic initiatives aimed at enhancing operational efficiency, reducing costs, and optimizing the Company's organization structure. Specifically, the Company incurred $0.5 million in connection with the implementation of its plan to optimize its organizational structure, including the elimination of redundant roles, addressing spans and layers to capture efficiencies and centralize

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

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

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**Item 2.&nbsp;&nbsp;&nbsp;&nbsp;*Management's Discussion and Analysis of Financial Condition and Results of Operations***

Presented below is Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") for IMAX Corporation (together with its consolidated subsidiaries, unless the context requires otherwise, "IMAX" or the "Company") for the three and six months ended June 30, 2025 and 2024. This MD&A should be read in conjunction with Note 13, "Segment Reporting," in the accompanying Condensed Consolidated Financial Statements in Item 1 as well as the Company's audited consolidated financial statements and related notes and the discussion under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" for the fiscal year ended December 31, 2024 included in the Company's 2024 Annual Report on Form 10-K (the "2024 Form 10-K").

As of June 30, 2025, the Company indirectly owned 71.72% of the outstanding equity interest in IMAX China Holding, Inc. ("IMAX China"), whose shares trade on the Hong Kong Stock Exchange. IMAX China is a consolidated subsidiary of the Company. For the six months ended June 30, 2025, net income attributable to IMAX China is $23.7 million, of which $17.0 million is attributable to the shareholders of the Company (2024 — $12.8 million and $9.1 million, respectively).

**SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION**

Certain statements included in this quarterly report may constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or "forward-looking information" within the meaning of Canadian securities laws. These forward-looking statements include, but are not limited to, statements regarding business and technology strategies and measures to implement strategies, statements about the Company's belief and expectations, competitive strengths, goals, market opportunity and penetration, including opportunities in and expected growth from international markets, momentum and runway for, expansion and growth of business, network, operations and technology, future capital expenditures (including the amount and nature thereof), the Company's technological capabilities and the differentiation thereof, brand equity and brand awareness and the benefits thereof, industry prospects and consumer behavior, future industry developments, including expected releases and the timing and effects thereof, plans and references to the future success of the Company and expectations regarding its future operating, financial and technological results, including its box office guidance for 2025. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions of the Company is subject to a number of risks and uncertainties, including, but not limited to, risks associated with investments and operations in foreign jurisdictions and any future international expansion, including those related to economic, political and regulatory policies of local governments and laws and policies of the United States, Canada, and China, including with respect to escalating and uncertain tariffs and other trade regulations, as well as economic and trade tensions, trade wars, and geopolitical conflicts and the effects thereof; risks related to the Company's growth and operations in China; industry conditions in China affecting both the Company and its partners; risks related to the failure of the Company's exhibitors being able to fulfill their contractual payment obligations; risks related to the Company's failure to attract and retain its employee population; the performance of IMAX remastered films and other films released to the IMAX network; the signing of IMAX System agreements; conditions, changes and developments in the commercial exhibition industry; risks related to the Company's inability to enter into new sales and lease agreements adversely affecting revenue; risks related to the Company's operating results and cash flow increasing the volatility of the Company's share price; risks related to currency fluctuations and foreign exchange controls; the potential impact of increased competition in the markets within which the Company operates, including competitive actions by other companies; the failure to respond to change and advancements in technology; risks relating to consolidation among commercial exhibitors and studios; risks related to brand extensions and new business initiatives; conditions in the in-home and out-of-home entertainment industries; the opportunities (or lack thereof) that may be presented to and pursued by the Company; risks related to cybersecurity and data privacy; risks related to the Company's inability to protect its intellectual property and to avoid infringing, misappropriating, or violating the intellectual property rights of others; risks associated with the Company's use of artificial intelligence ("AI") and exploration of additional use cases of AI; risks related to climate change; risks related to weather conditions and natural disasters that may disrupt or harm the Company's business; risks related to the Company's indebtedness and compliance with its debt agreements; general economic, market or business conditions; risks related to sustained inflationary pressure; risks related to political, economic and social instability; the failure to convert system backlog into revenue and cash flows; changes in laws or regulations; any statements of belief and any statements of assumptions underlying any of the foregoing; other factors and risks outlined in the Company's periodic filings with the United States Securities and Exchange Commission (the "SEC") or in Canada, the System for Electronic Data Analysis and Retrieval ("SEDAR+"); and other factors, many of which are beyond the control of the Company. Consequently, all of the forward-looking statements made in this quarterly report are qualified by these cautionary statements, and actual results or anticipated developments by the Company may not be realized, and even if substantially realized, may not have the expected consequences to, or effects on, the Company. The forward-looking statements herein are made only as of the date hereof and the Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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IMAX<sup>®</sup>, IMAX 3D<sup>®</sup>, Experience It In IMAX<sup>®</sup>, *The* IMAX *Experience*<sup>®</sup>, DMR<sup>®</sup>, Filmed For IMAX<sup>®</sup>, IMAX Live<sup>®</sup>, IMAX Enhanced<sup>®</sup> and IMAX StreamSmart<sup>TM</sup> are trademarks and trade names of the Company or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions.<br>

The Company makes available, free of charge, its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and any amendments to such reports, as soon as reasonably practicable after such filings have been made with the SEC and Canadian securities regulators. Reports may be obtained free of charge through the SEC's website at www.sec.gov or the SEDAR+ website at www.sedarplus.ca and through the Company's website at www.imax.com or by calling the Company's Investor Relations Department at 212-821-0154.

The Company announces material information to the public through a variety of means, including filings with the SEC and Canadian securities regulators, press releases, public conference calls, and its website at www.imax.com. The Company uses these channels to communicate with investors and the public about the Company, its products and services, and other matters. Therefore, investors are encouraged to review the information the Company makes public in these locations, as such information could be deemed to be material information. No information included on the Company's website shall be deemed included or otherwise incorporated into this filing, except where expressly indicated. All references to the Company's website are intended to be inactive textual references only.

**OVERVIEW**

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.

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, awe-inspiring immersive content experiences for which the IMAX<sup>®</sup> 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. The 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 digital remastering of films and other content into the IMAX format for distribution across the IMAX network ("IMAX Film Remastering") 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, institutional locations, including museums and 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 to exhibitor customers along with licenses to use its trademarks and ongoing maintenance services for which there are annual payments by the exhibitors to IMAX.

IMAX has the largest global premium format network, more than double the size of its nearest competitor. As of June 30, 2025, there were 1,821 IMAX Systems in 89 countries and territories, including 1,750 commercial multiplexes, 11 commercial destinations, and 60 institutional locations in the Company's global network. This compares to 1,780 IMAX Systems in 89 countries and territories as of June 30, 2024, including 1,705 commercial multiplexes, 12 commercial destinations, and 63 institutional locations in the Company's global network. (Refer to the table under "IMAX Network and Backlog" for additional information on the composition of the IMAX network.)

IMAX Systems provide the Company's exhibitor customers with a combination of the following benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to exhibit content that has been enhanced through the IMAX Film Remastering process, which results in higher image and sound fidelity than conventional cinema experiences;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• advanced, high-resolution projectors with specialized equipment and automated theater control systems, which generate significantly more contrast and brightness than conventional theater systems;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• large screens and proprietary auditorium geometry, which result in a substantially larger field of view so that the screen extends to the edge of a viewer's peripheral vision and creates more realistic images;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• advanced sound system components, which deliver more expansive sound imagery and pinpointed origination of sound to any specific spot in an auditorium equipped with an IMAX System;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• specialized theater acoustics, which result in a four-fold reduction in background noise than conventional cinema experiences;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ongoing maintenance and extended warranty services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a license to the globally recognized IMAX brand, as well as benefits from IMAX marketing of films being shown in its network and IMAX's growing social media followership.

In addition, select movies shown in the IMAX network are filmed using proprietary IMAX film cameras or IMAX certified digital cameras, which along with IMAX's customized guidance and a workflow process, provide filmmakers enhanced and differentiated image quality and an IMAX-exclusive film aspect ratio that delivers up to 26% more image onto a standard IMAX movie screen. In select IMAX locations worldwide, movies filmed with IMAX cameras have an IMAX-exclusive 1.43 film aspect ratio, delivering up to 67% more image.

The Company believes that these components cause audiences in IMAX locations to feel as if they are a part of the on-screen action, creating a more intense, immersive, and awe-inspiring experience than a conventional cinematic format.

As a result of the engineering and scientific achievements that are a hallmark of *The* IMAX *Experience*, the Company's exhibitor customers typically charge a premium for films released in IMAX's format versus films exhibited in their other auditoriums. The premium pricing, combined with the higher attendance levels associated with IMAX films, tends to generate incremental box office receipts ("box office") for the Company's exhibitor customers and for the movie studios releasing their films to the IMAX network. The incremental box office generated by IMAX films combined with IMAX's leading global network footprint and scale has helped establish IMAX as a key premium distribution and marketing platform for Hollywood and foreign local language movie studios.

The Company achieved a box office record in the first half of 2025 of $579.2 million, including booking fees, a 24% increase over the prior year comparative period, from 54 new films and other content released during the period, highlighted by the performance of *Ne Zha 2,* a Chinese local language animation film, and strong performance from a number of Filmed for IMAX<sup>®</sup> releases including three titles ("*Sinners*," "*Mission: Impossible - The Final Reckoning*," and "*F1 The Movie*") where IMAX delivered approximately 20% or more of the opening weekend domestic box office contributing to 19% second quarter year over year growth in global box office market share to 3.6%, with a footprint of less than 1% of screens. Prior to these three titles there were only five Hollywood movies in the Company's history where IMAX accounted for over 20% of the opening weekend's domestic box office.

As a premier global technology platform for entertainment and events, the Company strives to remain at the forefront of advancements in technology. The Company offers a suite of laser-based digital projection systems ("IMAX Laser Systems"), which deliver increased resolution, sharper and brighter images, deeper contrast, and the widest range of colors available to filmmakers today. The Company further believes that its suite of IMAX Laser Systems is helping facilitate the next major renewal and upgrade cycle for the global IMAX network.

The Company utilizes AI for image enhancement, streaming technology, and data analysis to improve various aspects of its business. Furthermore, the Company is actively exploring other global use cases for AI to save costs and to improve its products, operations, and efficiency.

The U.S. government has implemented substantial and rapidly evolving changes to U.S. trade policies, including increased tariffs on imports. These actions have resulted in retaliatory measures and uncertainty in global trade relationships. For a description of these risks, see "Risk Factors —The Company's business may be materially adversely affected by the imposition of tariffs and other trade barriers and retaliatory countermeasures implemented by the United States and other governments." in Part II, Item 1A of this Form 10-Q.

**SOURCES OF REVENUE**

The Company has organized its operating segments into the following two reportable segments: (i) Content Solutions, which principally includes content enhancement and distribution services, and (ii) Technology Products and Services, which principally includes the sale, lease, and maintenance of IMAX Systems. The Company's activities that do not meet the criteria to be considered a

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reportable segment are disclosed within All Other (See Note 13 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1).

**Content Solutions**

The Content Solutions segment earns revenue from Film Remastering, including the distribution of this content across the IMAX global network. To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and IMAX events and experiences, including music, gaming, and sports, as well as the provision of film post-production services.

*Film Remastering and Distribution*

IMAX Film Remastering is a proprietary technology that digitally remasters films and other content into IMAX formats for distribution across the IMAX network. 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 (i.e., gross box office ("GBO") less applicable sales taxes), except for within Greater China, where the Company often receives a lower percentage of net box office due to tax.

IMAX Film Remastering digitally enhances the image quality and/or resolution for projection on IMAX screens while maintaining or enhancing the visual clarity and sound quality to levels for which *The* IMAX *Experience* is known. IMAX Film Remastering is completed for the image of films released to the IMAX network, creating a unique IMAX version that is optimized for IMAX's proprietary digital projection systems and format. In addition, the original soundtrack of a film to be exhibited across the IMAX locations is remastered into a unique IMAX digital audio format. IMAX sound systems use proprietary loudspeaker systems, designs and proprietary surround sound configurations to ensure every seat in an auditorium is an optimal listening position.

IMAX films also benefit from enhancements made by individual filmmakers exclusively for the IMAX release of the film. Collectively, the Company refers to these enhancements as "IMAX DNA." Filmmakers and movie studios increasingly seek to infuse more IMAX DNA in theatrical releases to realize a filmmaker's creative vision more fully, while generating interest and excitement among moviegoers. Such enhancements include shooting films with IMAX cameras to increase the audience's immersion in the film and to take advantage of the unique dimensions of the IMAX screen by projecting the film in a larger aspect ratio that delivers up to 26% more image onto a standard IMAX movie screen. In select IMAX locations worldwide, movies filmed with IMAX cameras have an IMAX-exclusive 1.43 film aspect ratio, delivering up to 67% more image. The Company's Filmed For IMAX<sup>®</sup> program enables filmmakers to craft films from their inception to optimize *The* IMAX *Experience* and provides incremental and bespoke marketing support. The box office metrics demonstrate audiences respond extremely favorable to Filmed For IMAX<sup>®</sup> titles, resulting in a higher market share for IMAX.

Management believes that growth in international box office represents an important growth opportunity for the Company. The Company's strategy to capitalize on this opportunity includes expanding the IMAX network into underpenetrated international markets and growing the number of local language films released, particularly in China, Japan, India, France, and South Korea. As the popularity of local language films has continued to increase, the Company has extended its content strategy to distribute local language content beyond native markets. For the first six months in 2025, local language films exhibited across the Company's global network generated over $222 million in box office, representing 38% of the Company's global box office, including the Chinese local language film, *Ne Zha 2*, which became the highest grossing IMAX release of all time in China.

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The following table provides the number of new films and other content that were released to the Company's global network during the three and six months ended June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Hollywood film releases<sup>(1)</sup> | 8 | 9 | 15 | 16 |
| Local language film releases: |  |  |  |  |
| &nbsp;&nbsp;China | 4 | 4 | 10 | 8 |
| &nbsp;&nbsp;South Korea | 2 | 2 | 4 | 3 |
| &nbsp;&nbsp;Japan | 1 | 5 | 4 | 8 |
| &nbsp;&nbsp;India | 1 | 2 | 6 | 4 |
| &nbsp;&nbsp;Saudi Arabia | 1 |  | 1 |  |
| &nbsp;&nbsp;Egypt | 1 |  | 1 |  |
| &nbsp;&nbsp;France |  |  | 2 |  |
| &nbsp;&nbsp;Vietnam |  |  | 1 |  |
| &nbsp;&nbsp;Indonesia |  | 1 | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total local language film releases | 10 | 14 | 30 | 24 |
| Other content experiences | 3 | 4 | 9 | 6 |
|  | 21 | 27 | 54 | 46 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)For the three and six months ended June 30, 2025, the films released to the Company's global network include six and seven with IMAX DNA (2024 — two).* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)For the three and six months ended June 30, 2025, the films released to the Company's global network include six and seven with IMAX DNA (2024 — two).* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)For the three and six months ended June 30, 2025, the films released to the Company's global network include six and seven with IMAX DNA (2024 — two).* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)For the three and six months ended June 30, 2025, the films released to the Company's global network include six and seven with IMAX DNA (2024 — two).* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)For the three and six months ended June 30, 2025, the films released to the Company's global network include six and seven with IMAX DNA (2024 — two).* |

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The films distributed through the Company's global network during the three and six months ended June 30, 2025 that generated the highest IMAX box office totals were Chinese local language film *Ne Zha 2, Mission: Impossible - The Final Reckoning* and *Sinners.* In addition, during the three and six months ended June 30, 2025, a number of alternative content films and events were distributed, including *Becoming Led Zeppelin, Pink Floyd at Pompeii - MCMLXXII* and *One to One: John & Yoko.* 

In addition to the 54 IMAX films and alternative content experiences released on the Company's global network during the six months ended June 30, 2025, the Company has announced the following additional 30 new films and alternative content experiences to be released throughout the remainder of 2025:

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| | | | |
|:---|:---|:---|:---|
| **Title** | **Studio** | **Scheduled**<br>**Release Date**<sup>(1)</sup> | **IMAX DNA** |
| *Jurassic World: Rebirth* | Universal Pictures | July 2025 |  |
| *Superman* | Warner Bros. Pictures | July 2025 | Filmed for IMAX |
| *Curious Tales of A Temple*<sup>(2)</sup> | Wanda | July 2025 |  |
| *Demon Slayer: Kimetsu No Yaiba The Movie: Infinity Castle*<sup>(2)</sup> | Toho/Sony Pictures | July 2025 |  |
| *You are the Best*<sup>(2)</sup> | Lian Ray | July 2025 |  |
| *The Lychee Road*<sup>(2)</sup> | Maoyan | July 2025 |  |
| *The Prophet: Omniscient Reader*<sup>(2)</sup> | Lotte | July 2025 |  |
| *The Fantastic Four: First Steps* | Marvel Studios | July 2025 | Filmed for IMAX |
| *Dead to Rights*<sup>(2)</sup> | Super Lion | July 2025 |  |
| *Tokyo Mer 2*<sup>(2)</sup> | Toho | August 2025 |  |
| *NOBODY*<sup>(2)</sup> | Maoyan | August 2025 |  |
| *Weapons* | Warner Bros. Pictures | August 2025 |  |
| *The Grateful Dead Movie* | Rhino Entertainment/Trafalgar | August 2025 |  |
| *Black Swan: 15th Anniversary Exclusive* | Searchlight Pictures | August 2025 |  |
| *Dongji Rescue*<sup>(2)</sup> | Alibaba | August 2025 | Filmed for IMAX |
| *War 2*<sup>(2)</sup> | Yash Raj Films | August 2025 |  |
| *Das Kanu Des Manitu*<sup>(2)</sup> | Constantin Films | August 2025 |  |
| *The Shadow's Edge*<sup>(2)</sup> | Alibaba | August 2025 |  |
| *Prince - Sign O' The Times* | Mercury Studios | August 2025 |  |
| *Jaws: 50th Anniversary* | Universal Pictures | August 2025 |  |
| *The Conjuring: Last Rites* | Warner Bros. Pictures | September 2025 |  |
| *Him* | Universal Pictures | September 2025 |  |

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|:---|:---|:---|:---|
| *One Battle After Another* | Warner Bros. Pictures | September 2025 |  |
| *Tron: Ares* | Walt Disney Studios | October 2025 | Filmed for IMAX |
| *Mortal Kombat 2* | Warner Bros. Pictures | October 2025 | Filmed for IMAX |
| *Predator: Badlands* | Walt Disney Studios | November 2025 |  |
| *The Running Man* | Paramount Pictures | November 2025 |  |
| *Wicked: For Good* | Universal Pictures | November 2025 |  |
| *Zootopia 2* | Walt Disney Studios | November 2025 |  |
| *Avatar: Fire and Ash* | Walt Disney Studios | December 2025 |  |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The scheduled release dates in the table above are subject to change, may vary by territory, and may not reflect the date(s) of limited premiere events.*<br>*(2)Denotes local language release.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The scheduled release dates in the table above are subject to change, may vary by territory, and may not reflect the date(s) of limited premiere events.*<br>*(2)Denotes local language release.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The scheduled release dates in the table above are subject to change, may vary by territory, and may not reflect the date(s) of limited premiere events.*<br>*(2)Denotes local language release.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The scheduled release dates in the table above are subject to change, may vary by territory, and may not reflect the date(s) of limited premiere events.*<br>*(2)Denotes local language release.* |

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The Company remains in active negotiations with studios for additional films to fill out its short- and long-term film slate for the IMAX network. The Company also expects to announce additional local language films and exclusive IMAX events and experiences to be released to its global network throughout 2025. The Company has announced that a record number of over 14 Filmed for IMAX titles will be released in 2025. The Company's Hollywood film slate beyond 2025 is building, including major films such as: *The Odyssey*, *Avengers: Doomsday*, *The Mandalorian and Grogu*, *Dune 3, Avengers: Secret Wars*, *Project Hail Mary, Toy Story 5*, *Supergirl Woman of Tomorrow, Moana*, *The Batman 2*, *Frozen 3,* and *Dynamic Duo.* Additionally, in January 2025, the Company announced an agreement with Netflix, Inc. to debut Academy Award<sup>®</sup>-nominated director Greta Gerwig's upcoming film, *Narnia*, exclusively across the IMAX network with a two-week run beginning Thanksgiving 2026.

*Other Content Solutions*

The Company distributes large-format documentary feature films through its global commercial network and institutional theaters. Traditionally, the Company receives as its distribution fee either a fixed amount or a fixed percentage of the theater box office and, following the recoupment of its costs, is typically entitled to receive an additional percentage of gross revenues as participation revenues. In 2025, the Company released the institutional 3D version of *Blue Angels* across select IMAX locations in North America, Europe, and Australia. Upcoming documentaries, which are currently in production, include *The Lost Wolves of Yellowstone*, which is expected to be released in 2025. *Stormbound*, a feature documentary produced by Academy Award-winning producer, Adam McKay, *Patrouille de France* and *The Elephant Odyssey*, a documentary in collaboration with Beach House Pictures Pte Ltd and China International Communications Group, are expected to be released in 2026.

The Company continues to believe that the IMAX network is a valuable global platform to launch and distribute original content, including documentaries. The ownership rights to such films may be held by the film sponsors, the film investors and/or the Company. As of June 30, 2025, the Company had distribution rights with respect to approximately 65 films, which cover subjects such as space, wildlife, music, sports, history and natural wonders.

In addition, the Company continues to evolve its platform to bring new, innovative IMAX events and experiences to audiences worldwide. As of June 30, 2025, the Company had a footprint of 266 connected locations in the IMAX network across North America, Europe, Africa, Australia, and Asia configured with connectivity to deliver live and interactive events with low latency and superior sight and sound.

In the six months ended June 30, 2025, the Company partnered with Sony Pictures for the exclusive release of *Becoming Led Zeppelin,* Magnolia Pictures for the exclusive release of *One to One: John & Yoko* and Trafalgar Releasing for the exclusive release of *Pink Floyd at Pompeii - MCMLXXII,* NBC Universal for the *SNL50 The Homecoming Concert* in select IMAX North American locations and DAZN for the *PSG v Marseille Le Classique Match* in select IMAX locations across France. In addition, the Company continued its partnership with A24 for one-night-only IMAX releases of classic A24 titles, including *Talk to Me*, *Moonlight,* and *Spring Breakers.* The Company collaborated with Fandango Media for the *Fortnite Championship Series: Pro-Am* screening in eight North American IMAX locations and with Wanda Film for the *F1 Spanish Grand Prix* screening across six IMAX locations in China.

The Company provides film post-production and quality control services for films, whether produced by IMAX or third parties, and digital post-production services. In addition, the Company provides IMAX film and digital cameras to content creators under the IMAX certified camera program.

**Technology Products and Services**

The Technology Products and Services segment earns revenue principally from the sale or lease of IMAX Systems, as well as from the maintenance of IMAX Systems. To a lesser extent, the Technology Products and Services segment also earns revenue from certain ancillary theater business activities, including after-market sales of IMAX Systems parts and 3D glasses.

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<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

*Sales and Sales-Type Lease Arrangements*

The Company provides IMAX Systems to exhibitors through sale arrangements or 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 initial fees and ongoing consideration, which can include fixed annual minimum payments and contingent fees in excess of the minimum payments, as well as maintenance and extended warranty fees (see "IMAX Maintenance" below). The initial fees vary depending on the system configuration and location of the IMAX System. Initial fees are paid to the Company in installments typically between the time of signing the arrangement and the time of system installation. Once an IMAX System is installed, the initial fees and the present value of future annual minimum payments, which are financing fees, are recognized as revenue. In addition, in sale arrangements, the present value of the estimated contingent fees that may become due if certain annual minimum box office receipt thresholds are exceeded is recorded as revenue in the period when the sale is recognized and is adjusted in future periods based on actual results and changes in estimates. Such variable consideration is only recognized on sales transactions to the extent the Company believes there is not a risk of significant revenue reversal. Finance income is recognized over the term of a financed sale or sales-type lease arrangement.

In sale arrangements, title to the IMAX System equipment generally transfers to the customer. However, in certain instances, the Company retains title or a security interest in the equipment until the customer has made all payments required by the agreement or until certain shipment events for the equipment have occurred. In a sales-type lease arrangement, title to the IMAX System equipment remains with the Company. The Company has the right to remove the equipment for non-payment or other defaults by the customer.

The revenue earned from customers under the Company's IMAX System sale or sales-type lease agreements varies from quarter-to- quarter and year-to-year based on a number of factors, including the number and mix of IMAX System configurations sold or leased, the timing of installation of the IMAX Systems, the nature of the arrangement and other factors specific to individual contracts.

*Joint Revenue Sharing Arrangements*

The Company provides IMAX Systems to exhibitors through joint revenue sharing arrangements ("JRSAs"). Under the traditional form of these arrangements, the Company provides the IMAX System under a long-term lease in which the Company assumes the majority of the equipment and installation costs. In exchange for its upfront investment, the Company, primarily, earns rent based on a percentage of contingent box office receipts rather than requiring the customer to pay a fixed upfront fee or fixed annual minimum payments. Rental payments from the customer are required throughout the term of the arrangement and are typically due either monthly or quarterly. The Company retains title to the IMAX System equipment components throughout the lease term, and the equipment is returned to the Company at the conclusion of the arrangement.

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 in an amount that is typically half of what the Company would receive from a typical sale transaction. As with a traditional JRSA, the customer also pays the Company a percentage of contingent box office receipts over the term of the arrangement, although this percentage is typically half that of a traditional JRSA.

Under most JRSAs (both traditional and hybrid), the initial non-cancellable term is 10 years or longer and is renewable by the customer for one to two additional terms of between three to five years. The Company has the right to remove the equipment for non-payment or other defaults by the customer. The contracts are non-cancellable by the customer unless the Company fails to perform its obligations.

The revenue earned from customers under the Company's JRSAs can vary from quarter-to-quarter and year-to-year based on a number of factors that drive box office levels including film performance, the mix of IMAX System configurations, the timing of installation of IMAX Systems, the nature of the arrangement, the location, size and management of the theater and other factors specific to individual arrangements.

JRSAs also require IMAX to provide maintenance and extended warranty services to the customer over the term of the lease in exchange for a separate fixed annual fee. These fees are reported within IMAX Maintenance, as discussed below.

JRSAs have been an important factor in the expansion of the Company's commercial system network. JRSAs allow commercial theater exhibitors to install IMAX Systems without the significant initial capital investment required in a sale or sales-type lease arrangement. JRSAs drive recurring cash flows and earnings for the Company as customers under these arrangements pay the Company a portion of their ongoing box office receipts. The Company funds its investment in equipment for JRSAs through cash flows from operations. As of June 30, 2025, the Company had 899 locations under JRSAs in its global commercial multiplex network. The Company also had contracts in backlog for 336 systems under JRSAs as of June 30, 2025, including 138 upgrades to existing locations and 198 new locations.

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<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

*IMAX Maintenance*

IMAX System arrangements also include a requirement for the Company to provide maintenance services over the life of the arrangement in exchange for an extended warranty and annual maintenance fee paid by the exhibitor. Under these arrangements, the Company provides preventative and emergency maintenance services to ensure that each presentation is up to the highest IMAX quality standard. Annual maintenance fees are paid throughout the duration of the term of the system agreements.

**All Other**

*IMAX Enhanced \| Streaming and Consumer Technology*

IMAX's Streaming and Consumer Technology ("SCT") segment now offers a single unified program: IMAX Enhanced. This umbrella program builds on IMAX's brand and proprietary VisionScience™ technology to deliver *The* IMAX *Experience* to fans across streaming platforms and consumer devices. The new 'IMAX Enhanced' program for partners includes three core elements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.IMAX Enhanced Live: Real-time enhancement for sports, concerts, and events using SCT's proprietary technology to measure, enhance, optimize, and validate premium color, contrast, and clarity at the speed of live.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.IMAX Enhanced On-Demand: Quality preservation and optimization for films and series to preserve creative intent with IMAX-calibrated fidelity and remastering, offering viewers a differentiated, premium IMAX-assured experience. IMAX Enhanced on-demand content is currently available for fan-favorite titles across leading services such as Disney+, Sony Pictures Core, and Tencent Video.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Device Certification & Calibration: Establishes IMAX quality standards for consumer devices to ensure playback meets IMAX benchmarks. It assures that the enhancement and preservation of quality applied upstream for both Live and On-Demand workflows is maintained faithfully and experienced as intended on consumer devices. As of June 30, 2025, over 15 million IMAX Enhanced certified devices are in-market with partners including Sony Electronics, Hisense, TCL, LG, and Philips.

The SCT products previously branded as StreamSmart™ (encoding optimization) and StreamAware™ (quality assurance and monitoring) have now been fully streamlined and integrated into the IMAX Enhanced program, improving operational efficiency, reducing overhead, and enabling partners to deliver differentiated, premium, and monetizable viewing experiences validated through IMAX's proprietary approach to visual quality.

IMAX's Streaming and Consumer Technology is part of the Company's next evolutionary step to extend the IMAX brand and technology into new use cases and programming, including live events, series, and fully leveraging consumer electronics to deliver premium experiences for fans at home.

*Other*

All Other also includes revenues from sources including one owned and operated IMAX System in Sacramento, California; a commercial arrangement with one theater resulting in the sharing of profits and losses; the provision of management services to three other theaters; and offering production advice and technical assistance to both documentary and Hollywood filmmakers.

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<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

**IMAX NETWORK AND BACKLOG** 

*IMAX Network*

The following table provides detailed information about the IMAX network by type and geographic location as of June 30, 2025 and 2024. For additional information regarding the composition of the IMAX network, see "Marketing and Customers" in Part I, Item 1 of the Company's 2024 Form 10-K.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| | **Commercial** <br>**Multiplex** | **Commercial**<br>**Destination** | **Institutional** | **Total** | **Commercial** <br>**Multiplex** | **Commercial**<br>**Destination** | **Institutional** | **Total** |
| United States | 375 | 4 | 24 | 403 | 364 | 4 | 24 | 392 |
| Canada | 44 | 1 | 5 | 50 | 43 | 1 | 7 | 51 |
| Greater China<sup>(1)</sup> | 796 |  | 13 | 809 | 790 |  | 13 | 803 |
| Asia (excluding <br>Greater China) | 187 | 1 | 2 | 190 | 176 | 2 | 2 | 180 |
| Western Europe | 142 | 4 | 7 | 153 | 129 | 4 | 8 | 141 |
| Latin America<sup>(2)</sup> | 62 | 1 | 7 | 70 | 61 | 1 | 7 | 69 |
| Rest of the World | 144 |  | 2 | 146 | 142 |  | 2 | 144 |
| Total<sup>(3)</sup> | 1750 | 11 | 60 | 1821 | 1705 | 12 | 63 | 1780 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Greater China includes China, Hong Kong, Taiwan, and Macau.*<br>*(2)Latin America includes South America, Central America, and Mexico.*<br>*(3)Period-to-period changes in the table above are reported net of the effect of permanently closed locations.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Greater China includes China, Hong Kong, Taiwan, and Macau.*<br>*(2)Latin America includes South America, Central America, and Mexico.*<br>*(3)Period-to-period changes in the table above are reported net of the effect of permanently closed locations.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Greater China includes China, Hong Kong, Taiwan, and Macau.*<br>*(2)Latin America includes South America, Central America, and Mexico.*<br>*(3)Period-to-period changes in the table above are reported net of the effect of permanently closed locations.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Greater China includes China, Hong Kong, Taiwan, and Macau.*<br>*(2)Latin America includes South America, Central America, and Mexico.*<br>*(3)Period-to-period changes in the table above are reported net of the effect of permanently closed locations.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Greater China includes China, Hong Kong, Taiwan, and Macau.*<br>*(2)Latin America includes South America, Central America, and Mexico.*<br>*(3)Period-to-period changes in the table above are reported net of the effect of permanently closed locations.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Greater China includes China, Hong Kong, Taiwan, and Macau.*<br>*(2)Latin America includes South America, Central America, and Mexico.*<br>*(3)Period-to-period changes in the table above are reported net of the effect of permanently closed locations.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Greater China includes China, Hong Kong, Taiwan, and Macau.*<br>*(2)Latin America includes South America, Central America, and Mexico.*<br>*(3)Period-to-period changes in the table above are reported net of the effect of permanently closed locations.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Greater China includes China, Hong Kong, Taiwan, and Macau.*<br>*(2)Latin America includes South America, Central America, and Mexico.*<br>*(3)Period-to-period changes in the table above are reported net of the effect of permanently closed locations.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Greater China includes China, Hong Kong, Taiwan, and Macau.*<br>*(2)Latin America includes South America, Central America, and Mexico.*<br>*(3)Period-to-period changes in the table above are reported net of the effect of permanently closed locations.* |

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(See "Risk Factors – The Company faces risks in connection with its significant presence in China and the continued expansion of its business there," "Risk Factors – The Company may not convert all of its backlog into revenue and cash flows," and "Risk Factors – General political, social and economic conditions can affect the Company's business by reducing both revenues generated from existing IMAX Systems and the demand for new IMAX Systems" in Part I, Item 1A of the Company's 2024 Form 10-K.)

IMAX currently estimates a worldwide commercial multiplex addressable market of 3,619 locations, of which there are 1,750 IMAX Systems operating as of June 30, 2025, representing a market penetration of only 48%. The Company believes that the majority of its future growth will come from international markets. As of June 30, 2025, 76% of IMAX Systems in the global commercial multiplex network were located within international markets (defined as all countries other than the United States and Canada). Revenues and GBO derived from international markets continue to exceed revenues and GBO from the United States and Canada. Risks associated with the Company's international business are outlined in "Risk Factors – The Company conducts business internationally, which exposes it to uncertainties and risks that could negatively affect its operations, sales and future growth prospects" in Part I, Item 1A of the Company's 2024 Form 10-K.

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<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

The following tables provide detailed information about IMAX Systems operating in multiplex locations by arrangement type and geographic location as of June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Commercial Multiplex Locations in IMAX Network** | **Commercial Multiplex Locations in IMAX Network** | **Commercial Multiplex Locations in IMAX Network** | **Commercial Multiplex Locations in IMAX Network** |
| | **Traditional**<br>**JRSA** | **Hybrid**<br>**JRSA** | **Sales** <br>**Arrangements**<sup>(1)</sup> | <br>**Total** |
| Domestic Total (United States & Canada) | 276 | 6 | 137 | 419 |
| International: |  |  |  |  |
| &nbsp;&nbsp;Greater China | 388 | 99 | 309 | 796 |
| &nbsp;&nbsp;Asia (excluding Greater China) | 53 | 1 | 133 | 187 |
| &nbsp;&nbsp;Western Europe | 48 | 13 | 81 | 142 |
| &nbsp;&nbsp;Latin America | 4 |  | 58 | 62 |
| &nbsp;&nbsp;Rest of the World | 11 |  | 133 | 144 |
| &nbsp;&nbsp;&nbsp;&nbsp;International Total | 504 | 113 | 714 | 1331 |
| Worldwide Total<sup>(2)</sup> | 780 | 119 | 851 | 1750 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Period-to-period changes in the tables above are reported net of permanently closed locations.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Period-to-period changes in the tables above are reported net of permanently closed locations.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Period-to-period changes in the tables above are reported net of permanently closed locations.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Period-to-period changes in the tables above are reported net of permanently closed locations.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Period-to-period changes in the tables above are reported net of permanently closed locations.* |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| | **Commercial Multiplex Locations in IMAX Network** | **Commercial Multiplex Locations in IMAX Network** | **Commercial Multiplex Locations in IMAX Network** | **Commercial Multiplex Locations in IMAX Network** |
| | **Traditional**<br>**JRSA** | **Hybrid**<br>**JRSA** | **Sales** <br>**Arrangements**<sup>(1)</sup> | <br>**Total** |
| Domestic Total (United States & Canada) | 271 | 7 | 129 | 407 |
| International: |  |  |  |  |
| &nbsp;&nbsp;Greater China | 379 | 108 | 303 | 790 |
| &nbsp;&nbsp;Asia (excluding Greater China) | 53 | 8 | 115 | 176 |
| &nbsp;&nbsp;Western Europe | 40 | 15 | 74 | 129 |
| &nbsp;&nbsp;Latin America | 3 |  | 58 | 61 |
| &nbsp;&nbsp;Rest of the World | 14 |  | 128 | 142 |
| &nbsp;&nbsp;&nbsp;&nbsp;International Total | 489 | 131 | 678 | 1298 |
| Worldwide Total<sup>(2)</sup> | 760 | 138 | 807 | 1705 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Period-to-period changes in the tables above are reported net of permanently closed systems.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Period-to-period changes in the tables above are reported net of permanently closed systems.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Period-to-period changes in the tables above are reported net of permanently closed systems.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Period-to-period changes in the tables above are reported net of permanently closed systems.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Period-to-period changes in the tables above are reported net of permanently closed systems.* |

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<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

*Backlog*

The following tables provide detailed information about the Company's backlog by arrangement type and geographic location as of June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **IMAX System Backlog** | **IMAX System Backlog** | **IMAX System Backlog** | **IMAX System Backlog** |
| | **Traditional**<br>**JRSA** | **Hybrid**<br>**JRSA** | **Sales** <br>**Arrangements**<sup>(1)</sup> | <br>**Total** |
| Domestic Total (United States & Canada) | 119 | 2 | 10 | 131 |
| International: |  |  |  |  |
| &nbsp;&nbsp;Greater China | 92 | 90 | 49 | 231 |
| &nbsp;&nbsp;Asia (excluding Greater China) | 19 | 2 | 40 | 61 |
| &nbsp;&nbsp;Western Europe | 9 |  | 17 | 26 |
| &nbsp;&nbsp;Latin America | 1 |  | 7 | 8 |
| &nbsp;&nbsp;Rest of the World | 2 |  | 42 | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;International Total | 123 | 92 | 155 | 370 |
| Worldwide Total<sup>(2)(3)</sup> | 242 | 94 | 165 | 501 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Worldwide Total of 501 includes 256 new IMAX Laser Systems and 145 upgrades of existing locations to IMAX Laser Systems.*<br>*(3)Worldwide Total of 501 includes 356 new system backlog and 145 upgrade system backlog.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Worldwide Total of 501 includes 256 new IMAX Laser Systems and 145 upgrades of existing locations to IMAX Laser Systems.*<br>*(3)Worldwide Total of 501 includes 356 new system backlog and 145 upgrade system backlog.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Worldwide Total of 501 includes 256 new IMAX Laser Systems and 145 upgrades of existing locations to IMAX Laser Systems.*<br>*(3)Worldwide Total of 501 includes 356 new system backlog and 145 upgrade system backlog.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Worldwide Total of 501 includes 256 new IMAX Laser Systems and 145 upgrades of existing locations to IMAX Laser Systems.*<br>*(3)Worldwide Total of 501 includes 356 new system backlog and 145 upgrade system backlog.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Worldwide Total of 501 includes 256 new IMAX Laser Systems and 145 upgrades of existing locations to IMAX Laser Systems.*<br>*(3)Worldwide Total of 501 includes 356 new system backlog and 145 upgrade system backlog.* |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| | **IMAX System Backlog** | **IMAX System Backlog** | **IMAX System Backlog** | **IMAX System Backlog** |
| | **Traditional**<br>**JRSA** | **Hybrid**<br>**JRSA** | **Sales** <br>**Arrangements**<sup>(1)</sup> | <br>**Total** |
| Domestic Total (United States & Canada) | 76 | 2 | 12 | 90 |
| International: |  |  |  |  |
| &nbsp;&nbsp;Greater China | 112 | 90 | 61 | 263 |
| &nbsp;&nbsp;Asia (excluding Greater China) | 18 | 7 | 33 | 58 |
| &nbsp;&nbsp;Western Europe | 15 | 1 | 19 | 35 |
| &nbsp;&nbsp;Latin America | 2 |  | 4 | 6 |
| &nbsp;&nbsp;Rest of the World | 3 | 1 | 48 | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;International Total | 150 | 99 | 165 | 414 |
| Worldwide Total<sup>(2)(3)</sup> | 226 | 101 | 177 | 504 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Worldwide Total of 504 includes 261 new IMAX Laser Systems and 69 upgrades of existing locations to IMAX Laser Systems.*<br>*(3)Worldwide Total of 504 includes 373 new system backlog and 131 upgrade system backlog.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Worldwide Total of 504 includes 261 new IMAX Laser Systems and 69 upgrades of existing locations to IMAX Laser Systems.*<br>*(3)Worldwide Total of 504 includes 373 new system backlog and 131 upgrade system backlog.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Worldwide Total of 504 includes 261 new IMAX Laser Systems and 69 upgrades of existing locations to IMAX Laser Systems.*<br>*(3)Worldwide Total of 504 includes 373 new system backlog and 131 upgrade system backlog.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Worldwide Total of 504 includes 261 new IMAX Laser Systems and 69 upgrades of existing locations to IMAX Laser Systems.*<br>*(3)Worldwide Total of 504 includes 373 new system backlog and 131 upgrade system backlog.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Includes Sales and Sales-Type Lease deal types.*<br>*(2)Worldwide Total of 504 includes 261 new IMAX Laser Systems and 69 upgrades of existing locations to IMAX Laser Systems.*<br>*(3)Worldwide Total of 504 includes 373 new system backlog and 131 upgrade system backlog.* |

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The backlog reflects the minimum number of commitments for IMAX Systems according to signed contracts. The Company believes that the contractual obligations for IMAX System installations that are listed in backlog are valid and binding commitments. From time to time, in the normal course of its business, the Company will have customers who are unable to proceed with an IMAX System installation for a variety of reasons, including the inability to obtain certain consents, approvals or financing.

Certain of the Company's contracts contain options for the customer to elect to upgrade system type during the term or to alter the contract structure (for example, from a JRSA to a sale) after signing, but before installation. Current backlog information reflects all known elections.

Approximately 74% of IMAX System arrangements in backlog as of June 30, 2025 are scheduled to be installed in international markets (2024 — 82%).

(See "Risk Factors – The Company may not convert all of its backlog into revenue and cash flows." in Part I, Item 1A of the Company's 2024 Form 10-K.)

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<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

*Signings and Installations*

The following tables provide detailed information about IMAX System signings and installations for the three and six months ended June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| System Signings: |  |  |  |  |
| &nbsp;&nbsp;Sales Arrangements<sup>(1)</sup> | 15 | 25 | 34 | 30 |
| &nbsp;&nbsp;Traditional JRSA | 13 | 62 | 89 | 65 |
| Total IMAX System signings<sup>(2)</sup> | 28 | 87 | 123 | 95 |
| <br>*(1) Includes Sales and Sales-Type Lease deal types.*<br>*(2) Includes two and 60 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― 68 upgrades).* | <br>*(1) Includes Sales and Sales-Type Lease deal types.*<br>*(2) Includes two and 60 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― 68 upgrades).* | <br>*(1) Includes Sales and Sales-Type Lease deal types.*<br>*(2) Includes two and 60 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― 68 upgrades).* | <br>*(1) Includes Sales and Sales-Type Lease deal types.*<br>*(2) Includes two and 60 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― 68 upgrades).* | <br>*(1) Includes Sales and Sales-Type Lease deal types.*<br>*(2) Includes two and 60 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― 68 upgrades).* |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| System Installations<sup>(1)</sup>: |  |  |  |  |
| &nbsp;&nbsp;Sales Arrangements<sup>(2)</sup> | 13 | 10 | 26 | 15 |
| &nbsp;&nbsp;Hybrid JRSA |  |  |  | 1 |
| &nbsp;&nbsp;Traditional JRSA | 23 | 14 | 31 | 23 |
| Total IMAX System installations<sup>(3)</sup> | 36 | 24 | 57 | 39 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Zero and three IMAX Systems were relocated from their original location for the three and six months ended June 30, 2025, respectively (2024 ― one and two relocations, respectively). When a system is relocated, the amount of revenue earned by the Company may vary from transaction-to-transaction and is usually less than the amount earned for a new sale. In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System.*<br>*(2)Includes Sales and Sales-Type Lease deal types.*<br>*(3)Includes 18 and 25 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― eight and 11 upgrades, respectively).* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Zero and three IMAX Systems were relocated from their original location for the three and six months ended June 30, 2025, respectively (2024 ― one and two relocations, respectively). When a system is relocated, the amount of revenue earned by the Company may vary from transaction-to-transaction and is usually less than the amount earned for a new sale. In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System.*<br>*(2)Includes Sales and Sales-Type Lease deal types.*<br>*(3)Includes 18 and 25 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― eight and 11 upgrades, respectively).* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Zero and three IMAX Systems were relocated from their original location for the three and six months ended June 30, 2025, respectively (2024 ― one and two relocations, respectively). When a system is relocated, the amount of revenue earned by the Company may vary from transaction-to-transaction and is usually less than the amount earned for a new sale. In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System.*<br>*(2)Includes Sales and Sales-Type Lease deal types.*<br>*(3)Includes 18 and 25 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― eight and 11 upgrades, respectively).* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Zero and three IMAX Systems were relocated from their original location for the three and six months ended June 30, 2025, respectively (2024 ― one and two relocations, respectively). When a system is relocated, the amount of revenue earned by the Company may vary from transaction-to-transaction and is usually less than the amount earned for a new sale. In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System.*<br>*(2)Includes Sales and Sales-Type Lease deal types.*<br>*(3)Includes 18 and 25 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― eight and 11 upgrades, respectively).* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Zero and three IMAX Systems were relocated from their original location for the three and six months ended June 30, 2025, respectively (2024 ― one and two relocations, respectively). When a system is relocated, the amount of revenue earned by the Company may vary from transaction-to-transaction and is usually less than the amount earned for a new sale. In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System.*<br>*(2)Includes Sales and Sales-Type Lease deal types.*<br>*(3)Includes 18 and 25 IMAX System upgrades for the three and six months ended June 30, 2025, respectively (2024 ― eight and 11 upgrades, respectively).* |

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**RESULTS OF OPERATIONS**

The Company's business and future prospects are evaluated by Richard L. Gelfond, its Chief Executive Officer ("CEO"), using a variety of factors and financial and operational metrics, including: (i) IMAX box office performance and the securing of new IMAX films and alternative content to be exhibited across the IMAX network; (ii) the signing, installation, and financial performance of IMAX System arrangements; (iii) the success of the Company's investments in business evolution and brand extensions into streaming and consumer technology; (iv) revenues and gross margins earned by the Company's segments; (v) consolidated earnings (loss) from operations, as adjusted for unusual items; (vi) the continuing ability to invest in and improve the Company's technology to enhance the differentiation of *The* IMAX *Experience* versus other out-of-home experiences; (vii) the overall execution, reliability, and consumer acceptance of *The* IMAX *Experience*; and (viii) short- and long-term cash flow projections.

**Results of Operations for the Three Months Ended June 30, 2025 and 2024**

***Net Income and Adjusted Net Income Attributable to Common Shareholders***

The following table presents the Company's net income attributable to common shareholders and the associated per diluted share amounts, as well as adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share for the three months ended June 30, 2025 and 2024:

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<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
| | **2025** | **2025** | **2024** | **2024** |
| <br>*(In thousands of U.S. Dollars, except per diluted share amounts)* | **Net Income** | **Per Diluted Share** | **Net Income** | **Per Diluted Share** |
| Net income attributable to common shareholders | $11255 | $0.20 | $3583 | $0.07 |
| Adjusted net income attributable to common shareholders<sup>\*</sup> | $14607 | $0.26 | $9746 | $0.18 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*\*Refer to "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*\*Refer to "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*\*Refer to "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*\*Refer to "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*\*Refer to "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* |

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***Revenues and Gross Margin***

During the three months ended June 30, 2025, the Company's revenues and gross margin increased by $2.7 million, or 3%, and $9.7 million, or 22%, respectively, when compared to same period in 2024 principally due to a higher number of installations and stronger IMAX box office performance driven by the Hollywood film slate.

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

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Revenue** | **Revenue** | **Gross Margin** | **Gross Margin** | **Gross Margin %** | **Gross Margin %** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** | **2025** | **2024** | **2025** | **2024** |
| Content Solutions | $33965 | $35076 | $22431 | $16138 | 66% | 46% |
| Technology Products and Services | 55639 | 50898 | 30178 | 25783 | 54% | 51% |
| &nbsp;&nbsp;Sub-total for reportable segments | 89604 | 85974 | 52609 | 41921 | 59% | 49% |
| All Other<sup>(1)</sup> | 2080 | 2987 | 993 | 2006 | 48% | 67% |
| Total | $91684 | $88961 | $53602 | $43927 | 58% | 49% |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* |

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***Content Solutions***

Content Solutions segment results are influenced by the level of commercial success and box office performance of the films and other content released to the IMAX network, as well as other factors, including the timing of the releases, the timing of documentary downstream sales, the length of play across the IMAX network, the box office share take rates under the Company's Film Remastering and distribution arrangements, the level of marketing spend associated with the releases in the year, and fluctuations in the value of foreign currencies versus the U.S. Dollar.

For the three months ended June 30, 2025, Content Solutions segment revenues and gross margin decreased by $1.1 million, or 3%, and increased by $6.3 million, or 39%, respectively, when compared to the same period in 2024. The decrease in revenue compared to the prior period was primarily driven by revenue earned from the completion of the sale of the worldwide commercial and streaming rights of the Company's original documentary, *The Blue Angels*, to Amazon Content in the second quarter of 2024.

The documentary sale impact on revenue was mostly offset in the second quarter of 2025 by stronger IMAX box office performance year over year. In the second quarter of 2025, box office generated by IMAX films, including booking fees, totaled $281.1 million, an $81.3 million, or 41% increase versus the prior year comparative period of $199.8 million. The growth was primarily driven by the stronger IMAX box office performance of the IMAX Hollywood film slate during the quarter, compared to the second quarter of 2024 box office performance which had fewer large blockbusters due to the Hollywood strikes. In the second quarter of 2025, IMAX box office was generated by the exhibition of 22 films and other content (21 new films and 1 film originally released in a prior year), including the following Hollywood titles, *Mission: Impossible - The Final Reckoning* ($75 million), *Sinners* ($40 million), *F1 The Movie* ($32 million) and *Thunderbolts* ($31 million). In the second quarter of 2025, local language films exhibited across the Company's global network generated $19.8 million in box office, representing 7% of its global box office. In the second quarter of 2024, IMAX box office was generated by the exhibition of 34 films (27 new films and 7 films originally released in a prior year).

In the second quarter of 2025, the Company released six movies that were filmed with IMAX proprietary cameras (Filmed For IMAX): *Sinners*, *Thunderbolts*, *Final Destination: Bloodlines*, *Mission: Impossible - The Final Reckoning*, *How To Train Your Dragon* and *F1 The Movie*. Filmed For IMAX movies traditionally perform disproportionately well at the box office, and for three of these films (*Sinners*, *Mission: Impossible - The Final Reckoning* and *F1 The Movie*), IMAX delivered approximately 20% or more of the opening weekend domestic box office, despite accounting for only 1% of available screens.

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<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

In addition to the level of revenues, Content Solutions segment gross margin is influenced by the costs associated with films and other content (documentaries, live, alternative and other) exhibited in the period. The costs associated with films and other content can include production, post-production, distribution and marketing, which are expensed as incurred. For the three months ended June 30, 2025, gross margin percent was 66% compared to 46% in the prior year period. The increase in gross margin was driven by higher level of IMAX box office and a lower mix of self-produced content compared to the prior period.

***Technology Products and Services***

The primary drivers of Technology Products and Services segment results are the number of IMAX Systems installed in a period, the costs associated with each installation, lease payments tied to the box office performance of the films released to the IMAX network, as well as the associated maintenance contracts that accompany each installation. The average revenue and gross margin per IMAX System under sale and sales-type lease arrangements vary depending upon the number of IMAX System commitments with a single respective exhibitor, an exhibitor's location, the type of IMAX System sold, and various other factors. The installation of IMAX Systems in theaters or multiplexes, which make up a large portion of the Company's system backlog, depends primarily on the timing of the construction of those projects, which is not under the Company's control.

The following table provides information about IMAX Systems installed and the associated revenue recognized at that time, except for traditional JRSAs as revenue is recognized over the lease term, during the three months ended June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
| | **2025** | **2025** | **2024** | **2024** |
| *(In thousands of U.S. Dollars, except number of systems)* | **Number of Systems** | **Revenue** | **Number of Systems** | **Revenue** |
| New IMAX Systems | 11 | $11206 | 8 | $7649 |
| Upgraded IMAX Systems | 2 | 1878 | 2 | 2926 |
| Total IMAX Systems | 13 | $13084 | 10 | $10575 |

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For the three months ended June 30, 2025, Technology Products and Services segment revenue increased by $4.7 million, or 9%, while gross margin increased by $4.4 million, or 17%, when compared to the same period in 2024. The higher level of revenue is primarily driven by a higher level of rental revenues, which is box office driven. Rental revenues increased by $5.1 million, as IMAX GBO earned from the Company's JRSAs increased by $24.1 million in the second quarter of 2025 when compared to the prior year comparative period, from $101.0 million to $125.1 million. Also contributing to the increase in revenue was the higher number of systems recognized under sales and sales-type lease arrangements, per the table above.

The increase in revenues described above were partially offset by a $4.7 million decrease in revenue contribution from the impact of amendments, renewals and other agreements to existing IMAX Systems arrangements.

For the three months ended June 30, 2025, gross margin percent was 54% compared to 51% in the prior period, which primarily reflects the higher level of revenues generated from stronger IMAX box office performance, as described above.

***All Other***

For the three months ended June 30, 2025, All Other revenue and gross margin decreased by $0.9 million and $1.0 million, respectively, when compared to the same period in 2024. All Other primarily reflects the results of the Company's Streaming and Consumer Technology business.

***Selling, General and Administrative Expenses***

The following table presents information about the Company's Selling, General and Administrative Expenses for the three months ended June 30, 2025 and 2024:

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<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | |
| | **June 30,** | **June 30,** | **Variance** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** | $**%** |
| Total Selling, general and administrative expenses | $35302 | $37564 | (6%) |
| Less: Share-based compensation<sup>(1)</sup> | (6862) | (6506) | (5%) |
| Total Adjusted Selling, general and administrative expenses | $28440 | $31058 | (8%) |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)A portion of share-based compensation expense is recognized within Costs and Expenses Applicable to Revenues, and Research and Development. (Refer to "Capital Stock and Reserves — Share-Based Compensation" in Note 11 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)A portion of share-based compensation expense is recognized within Costs and Expenses Applicable to Revenues, and Research and Development. (Refer to "Capital Stock and Reserves — Share-Based Compensation" in Note 11 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)A portion of share-based compensation expense is recognized within Costs and Expenses Applicable to Revenues, and Research and Development. (Refer to "Capital Stock and Reserves — Share-Based Compensation" in Note 11 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)A portion of share-based compensation expense is recognized within Costs and Expenses Applicable to Revenues, and Research and Development. (Refer to "Capital Stock and Reserves — Share-Based Compensation" in Note 11 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)* |

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For the second quarter of 2025, the lower level of Selling, General and Administrative Expenses year-over-year reflects management's continued focus on operational efficiencies, including workforce reductions. Additionally, in the period, the Company recognized $2.5 million in benefits resulting from an Employee Retention Credit as a reduction to Selling, General and Administrative expenses, partially offset by higher annual incentive compensation costs.

***Research and Development***

For the three months ended June 30, 2025, Research and Development expenses were $1.5 million, compared to an expense of $2.0 million during the same period in the prior year. The reduction year-over-year was primarily driven by the capitalization of film camera costs in accordance with the achievement of technological feasibility in 2024. The Company continues to expense its investment in other projects, including in the development of new Streaming and Technology product offerings and improvements to its existing IMAX System product suite.

***Credit Loss (Reversal) Expense, Net***

For the three months ended June 30, 2025, the Company recorded a credit loss reversal of $0.2 million, as compared to a credit loss expense of $0.1 million recognized in the prior year.

Stronger box office performance in the year has contributed to a notable improvement in collections. The resurgence in theatrical attendance, driven by a robust film slate, has increased and accelerated cash inflows from studio and exhibitor customers. This trend reflects both the sustained consumer demand for premium cinematic experiences and the effectiveness of our strategic initiatives in global distribution and exhibition.

Management's judgments regarding expected credit losses are based on the facts available to management at the time that the Condensed Consolidated Financial Statements are prepared 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. (Refer to Note 3 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)

***Interest Expense and Interest Income***

For the three months ended June 30, 2025, interest expense was $1.9 million, representing an decrease of $0.4 million, or 16% when compared to interest expense of $2.3 million during the same period of the prior year primarily due to a lower level of borrowings under the Credit Facility in the current period. For the three months ended June 30, 2025 and 2023, interest income was $1.1 million and $0.6 million, respectively.

***Income Taxes***

For the three months ended June 30, 2025, the Company recorded an income tax expense of $1.2 million (2024 — tax benefit of $4.0 million). The Company's effective tax rate of 8.9% for the three months ended June 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and reflects a decrease in the valuation allowance.

During the three months ended June 30, 2024, the Company completed an internal asset sale to more closely align its intellectual property ownership with its operations. In order to effect this internal asset sale, transactions between entities within the group resulted in capital gains for tax purposes. The tax expense related to the capital gain was partially offset by the reversal of the valuation allowance. Net deferred tax assets were also recorded on the transaction, resulting in a net tax benefit of $7.7 million.

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<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

***Non-Controlling Interests***

For the three months ended June 30, 2025, the net income attributable to non-controlling interests of the Company's subsidiaries was $1.0 million, a decrease of $0.5 million, when compared to the same period in 2024, primarily due to lower revenues recognized from sales arrangements and renewals in Greater China.

***Restructuring and Other Charges***

For the three months ended June 30, 2025, the Company recorded $0.8 million (2024 — $nil) of restructuring and other charges. These charges are associated with continued strategic initiatives aimed at enhancing operational efficiency, reducing costs, and optimizing the Company's organization structure. Specifically, the Company incurred $0.5 million in connection with the continued implementation of its plan to optimize its organizational structure, including the elimination of redundant roles, addressing spans and layers to capture efficiencies and centralize certain operational roles. Additionally, the Company incurred $0.3 million of non-recurring fees relating to the 2024 internal asset sale.

**Results of Operations for the Six Months Ended June 30, 2025 and 2024** 

***Net Income and Adjusted Net Income Attributable to Common Shareholders***

The following table presents the Company's net income attributable to common shareholders and the associated per diluted share amounts, as well as adjusted net income attributable to common shareholders\* and adjusted net income attributable to common shareholders per diluted share for the six months ended June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2025** | **2024** | **2024** |
| <br>*(In thousands of U.S. Dollars, except per diluted share amounts)* | **Net Income** | **Per Diluted Share** | **Net Income** | **Per Diluted Share** |
| Net income attributable to common shareholders | $13582 | $0.25 | $6857 | $0.13 |
| Adjusted net income attributable to common shareholders\* | $21785 | $0.40 | $17688 | $0.33 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*\*Refer to "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*\*Refer to "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*\*Refer to "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*\*Refer to "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*\*Refer to "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* |

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***Revenues and Gross Margin***

For the six months ended June 30, 2025, the Company's revenues and gross margin increased by $10.3 million, or 6%, and $16.0 million, or 18%, respectively, when compared to same period in 2024, principally due to a higher number of installations and stronger IMAX box office performance driven by a record Chinese New Year period and the summer Hollywood box office.

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

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Revenue** | **Revenue** | **Gross Margin** | **Gross Margin** | **Gross Margin %** | **Gross Margin %** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** | **2025** | **2024** | **2025** | **2024** |
| &nbsp;&nbsp;Content Solutions | $68214 | $69089 | $45985 | $38237 | 67% | 55% |
| &nbsp;&nbsp;Technology Products and Services | 106232 | 94048 | 59264 | 49367 | 56% | 52% |
| &nbsp;&nbsp;&nbsp;&nbsp;Sub-total for reportable segments | 174446 | 163137 | 105249 | 87604 | 60% | 54% |
| &nbsp;&nbsp;All Other<sup>(1)</sup> | 3905 | 4947 | 1529 | 3212 | 39% | 65% |
| Total | $178351 | $168084 | $106778 | $90816 | 60% | 54% |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)All Other includes the results from Streaming and Consumer Technology and other ancillary activities.* |

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***Content Solutions***

Content Solutions segment results are influenced by the level of commercial success and box office performance of the films and other content released to the IMAX network, as well as other factors, including the timing of the releases, the timing of documentary downstream sales, the length of play across the IMAX network, the box office share take rates under the Company's Film Remastering and distribution arrangements, the level of marketing spend associated with the releases in the year, and fluctuations in the value of foreign currencies versus the U.S. Dollar.

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<u>[**Table of Contents**](#i1abbf4606a724a46b6a37b1851cfc1bf_7)</u>

For the six months ended June 30, 2025, Content Solutions segment revenues and gross margin decreased by $0.9 million, or 1%, and increased by $7.7 million, or 20%, respectively, when compared to the same period in 2024. The decrease in revenue compared to the prior period is primarily driven by revenue earned from the completion of the sale of the worldwide commercial and streaming rights of the Company's original documentary, *The Blue Angels*, to Amazon Content in the first half of 2024.

The positive impact of *The Blue Angels* documentary in 2024 on revenue was mostly offset by higher box office generated across the IMAX network for the six months ended June 30, 2025, when compared to the prior year period. In the six months ended June 30, 2025, box office generated by IMAX films, including booking fees, totaled $579.2 million, a $112.1 million, or 24%, increase versus the prior year comparative period of $467.2 million. This growth was primarily driven by the stronger IMAX box office performance of the IMAX local language film slate in 2025. During the six months ended June 30, 2025, IMAX box office was generated by the exhibition of 56 films and other content (54 new films and 2 re-releases), including the following Hollywood titles, *Mission: Impossible - The Final Reckoning* ($75 million), *Sinners* ($39 million), *F1 The Movie* ($31 million) and *Thunderbolts* ($31 million). In addition, in the six months ended June 30, 2025, local language films exhibited across the Company's global network generated over $222 million in box office, representing 38% of its global box office. The Chinese local language film, *Ne Zha 2,* became the highest grossing IMAX release of all time in China ($166 million, including booking fees) and contributed to the highest grossing Chinese New Year in the Company's history. In the six months ended June 30, 2024, IMAX box office was generated by the exhibition of 60 films (46 new films and 14 films originally released in a prior year).

In the first half of 2025, the Company released six movies that were filmed with IMAX proprietary cameras (Filmed For IMAX): *Sinners*, *Thunderbolts*, *Final Destination: Bloodlines*, *Mission: Impossible - The Final Reckoning*, *How To Train Your Dragon* and *F1 The Movie.* Filmed For IMAX movies traditionally perform disproportionately well at the box office, and for three of these films (*Sinners*, *Mission: Impossible - The Final Reckoning* and *F1 The Movie*), IMAX delivered approximately 20% or more of the opening weekend domestic box office, despite accounting for only 1% of available screens.

In addition to the level of revenues, Content Solutions segment gross margin is influenced by the costs associated with films and other content exhibited in the period. These costs can include production, post-production, distribution, and marketing, which are expensed as incurred. For the six months ended June 30, 2025, gross margin percent was 67% compared to 55% in the prior quarter period. This increase was driven by a higher level of IMAX box office, a lower mix of self-produced content expensed compared to the prior period.

***Technology Products and Services***

The primary drivers of Technology Products and Services segment results are the number of IMAX Systems installed in a period, the costs associated with each installation, lease payments tied to the box office performance of the films released to the IMAX network, as well as the associated maintenance contracts that accompany each installation. The average revenue and gross margin per IMAX System under sale and sales-type lease arrangements vary depending upon the number of IMAX System commitments with a single respective exhibitor, an exhibitor's location, the type of IMAX System sold, and various other factors. The installation of IMAX Systems in theaters or multiplexes, which make up a large portion of the Company's system backlog, depends primarily on the timing of the construction of those projects, which is not under the Company's control.

The following table provides information about IMAX Systems installed and the associated revenue recognized at that time, except for traditional joint revenue sharing arrangements as revenue is recognized over the lease term, during the six months ended June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2025** | **2024** | **2024** |
| *(In thousands of U.S. Dollars, except number of systems* | **Number of <br>Systems** | **Revenue** | **Number of <br>Systems** | **Revenue** |
| New IMAX Systems | 23 | $20330 | 13 | $11511 |
| Upgraded IMAX Systems | 3 | 3338 | 3 | 4303 |
| Total | 26 | $23668 | 16 | $15814 |

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Included in the table above are three IMAX Systems that were relocated from their original locations (2024 ― two IMAX Systems). When a system under a sale or sales-type lease arrangement is relocated, the amount of revenue earned by the Company may vary from transaction to transaction and is usually less than the amount earned for a new sale. In certain situations when a system is relocated, the original location is upgraded to an IMAX Laser System.

For the six months ended June 30, 2025, Technology Products and Services segment revenue and gross margin increased by $12.2 million, or 13%, and $9.9 million, or 20%, respectively, when compared to the same period in the prior year. The higher level of

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revenue is primarily driven by a higher level of rental revenues, which is box office dependent. Rental revenues increased by $5.2 million, driven by IMAX GBO from joint revenue sharing arrangements which increased by $38.8 million in the six months ended June 30, 2025 when compared to the prior year comparative period, from $226.4 million to $265.2 million. Also contributing to the increase in revenue was the number of systems recognized under sales and sales-type lease arrangements, per the table above.

The increases in revenue were partially offset by a $4.2 million decrease in revenue contribution from the impact of amendments, renewals and other agreements to existing IMAX Systems arrangements.

For the six months ended June 30, 2025, gross margin percent was 56% compared to 52% in the prior period, which primarily reflects the higher level of revenues, as described above.

***All Other***

For the six months ended June 30, 2025, All Other revenue and gross margin decreased by $1.0 million, and $1.7 million, respectively, when compared to the same period in 2024. All Other primarily reflects the results of the Company's Streaming and Consumer Technology business.

***Selling, General and Administrative Expenses***

The following table presents information about the Company's Selling, General and Administrative Expenses for the six months ended June 30, 2025 and 2024:

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| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** | |
| | **June 30,** | **June 30,** | **Variance** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** | $**%** |
| Total Selling, general and administrative expenses | $68764 | $68821 | —% |
| Less: Share-based compensation<sup>(1)</sup> | (11582) | (10843) | (7%) |
| Total Adjusted Selling, general and administrative expenses<sup>(2)</sup> | $57182 | $57978 | (1%) |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)A portion of share-based compensation expense is recognized within Cost and Expenses Applicable to Revenue, and Research and Development. (Refer to "Capital Stock and Reserves — Share-Based Compensation" in Note 11 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)*<br>*(2)See "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)A portion of share-based compensation expense is recognized within Cost and Expenses Applicable to Revenue, and Research and Development. (Refer to "Capital Stock and Reserves — Share-Based Compensation" in Note 11 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)*<br>*(2)See "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)A portion of share-based compensation expense is recognized within Cost and Expenses Applicable to Revenue, and Research and Development. (Refer to "Capital Stock and Reserves — Share-Based Compensation" in Note 11 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)*<br>*(2)See "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)A portion of share-based compensation expense is recognized within Cost and Expenses Applicable to Revenue, and Research and Development. (Refer to "Capital Stock and Reserves — Share-Based Compensation" in Note 11 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1.)*<br>*(2)See "Non-GAAP Financial Measures" for a description of this non-GAAP financial measure and a reconciliation to the most comparable GAAP amount.* |

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For the six months ended June 30, 2025, the lower level of Selling, General and Administrative Expenses year-over-year reflects management's continued focus on operational efficiencies, including workforce reductions. Additionally, in the period, the Company recognized $2.5 million in benefits resulting from an Employee Retention Credit as a reduction to Selling, General and Administrative expenses, partially offset by higher annual incentive compensation costs.

***Research and Development***

For the six months ended June 30, 2025, Research and Development expenses were $2.9 million, representing a decrease of $1.4 million, or 32%, when compared to Research and Development expenses of $4.2 million during the same period in the prior year. The reduction year-over-year was primarily driven by the capitalization of film camera costs in accordance with the achievement of technological feasibility in 2024. The Company continues to expense its investment in other projects, including in the development of new Streaming and Technology product offerings and improvements to its existing IMAX System product suite.

***Credit Loss (Reversal) Expense, Net***

For the six months ended June 30, 2025, the Company recorded a credit loss reversal of $0.3 million, as compared to a credit loss expense of $0.2 million recognized in the prior year.

Stronger box office performance in the year has contributed to a notable improvement in collections. The resurgence in theatrical attendance, driven by a robust film slate, has increased and accelerated cash inflows from studio and exhibitor customers. This trend reflects both the sustained consumer demand for premium cinematic experiences and the effectiveness of our strategic initiatives in global distribution and exhibition.

Management's judgments regarding expected credit losses are based on the facts available to management at the time that the Condensed Consolidated Financial Statements are prepared 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. (Refer to Note 3 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1).

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***Interest Expense and Interest Income***

For the six months ended June 30, 2025, interest expense was $3.7 million, representing a decrease of $0.5 million, or 12%, as compared to $4.2 million during the same period of the prior year primarily due to a lower level of borrowings under the Credit Facility in the current period. For the six months ended June 30, 2025 and 2024, interest income was $1.7 million and $1.1 million, respectively.

***Income Taxes***

For the six months ended June 30, 2025, the Company recorded an income tax expense of $8.5 million (2024 — tax expense of $1.2 million). The Company's effective tax rate of 29.4% for the six months ended June 30, 2025, reflects the geographic allocation of income earned in taxing jurisdictions and also reflects an increase in the valuation allowance, withholding taxes and a tax benefit related to share-based compensation.

***Non-Controlling Interests***

For the six months ended June 30, 2025, the net income attributable to non-controlling interests of the Company's subsidiaries was $6.8 million, an increase of $3.2 million, when compared to the same period in 2024, which reflects a higher level of IMAX box office earned in Greater China.

***Restructuring and Other Charges***

For the six months ended June 30, 2025, the Company recorded $0.8 million (2024 — $nil) of restructuring and other charges. These charges are associated with continued strategic initiatives aimed at enhancing operational efficiency, reducing costs, and optimizing the Company's organization structure. Specifically, the Company incurred $0.5 million in connection with the implementation of its plan to optimize its organizational structure, including the elimination of redundant roles, addressing spans and layers to capture efficiencies and centralize certain operational roles. Additionally, the Company incurred $0.3 million of non-recurring fees relating to the 2024 internal asset sale.

 **CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**

The discussion below summarizes our cash flows from operating, investing, and financing activities as reflected in the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024.

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| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** |
| Net cash provided by (used in) |  |  |
| &nbsp;&nbsp;Operating activities | $30181 | $24070 |
| &nbsp;&nbsp;Investing activities | (22048) | (15638) |
| &nbsp;&nbsp;Financing activities | 480 | 6609 |
| Effect of exchange rate changes on cash | 46 | 311 |
| Net change in cash | $**8659** | $**15352** |

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Net cash provided by the Company's operating activities increased $6.1 million in the six months ended June 30, 2025, compared to the corresponding prior year period, primarily due to an increase in the net income earned in the current period. This increase was partially offset by an decrease in cash provided by working capital expenditures. (Refer to Note 9 to Condensed Consolidated Financial Statements in Item 1. for more information on the Company's change in other operating assets and liabilities.)

Net cash used in investing activities increased $6.4 million in the six months ended June 30, 2025, compared to the corresponding prior year period, primarily due to an increase in the level of investment in equipment contributed to the Company's JRSAs with exhibitor customers and capital expenditures. In the six months ended June 30, 2025, the Company installed 31 systems under JRSAs compared to 23 systems in the prior year comparative period.

Net cash provided by financing activities decreased $6.1 million in the six months ended June 30, 2025, compared to the corresponding prior year period, mainly driven by a decrease in net borrowings under the revolving credit facilities, an increase in cash paid for taxes withheld on employee stock awards vested, offset by a decease in share repurchases.

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**LIQUIDITY AND CAPITAL RESOURCES**

As of June 30, 2025, the Company's principal sources of liquidity included: (i) its balances of cash and cash equivalents of $109.3 million; (ii) the anticipated collection of trade accounts receivable, which includes amounts owed under JRSAs and Film Remastering and distribution agreements with movie studios; (iii) the anticipated collection of financing and variable consideration receivables due in the next 12 months under sale and sales-type lease arrangements for systems currently in operation; and (iv) installment payments expected in the next 12 months under sale and sales-type lease arrangements in backlog. Under the terms of the Company's typical sale and sales-type lease agreements, the Company receives substantial cash payments before it completes the performance of its contractual obligations.

In addition, as of June 30, 2025, the Company had $252.0 million in available borrowing capacity under its Sixth Amended and Restated Credit Agreement (the "Credit Agreement"), $26.5 million in available borrowing capacity under the IMAX (Shanghai) Multimedia Technology Co., Ltd. ("IMAX Shanghai") revolving credit facility with the Bank of China (the "Bank of China Facility"), and $27.9 million in available borrowing capacity under IMAX Shanghai's revolving credit facility with HSBC Bank (China) Company Limited, Shanghai Branch (the "HSBC China Facility"). On July 14, 2025, the Company entered into the New Credit Agreement, which increases the Company's borrowing capacity to $375.0 million. (Refer to "Borrowings — Revolving Credit Facility Borrowings, Net" in Note 6 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 for a description of the material terms of the Credit Agreement, the Bank of China Facility, and the HSBC Facility.)

The Company's $109.3 million balance of cash and cash equivalents as of June 30, 2025 (December 31, 2024 — $100.6 million) included $100.9 million in cash held outside of Canada (December 31, 2024 — $85.4 million), of which $61.5 million was held in the People's Republic of China (the "PRC") (December 31, 2024 — $47.5 million). Management reassessed its strategy with respect to the most efficient means of deploying the Company's capital resources globally and determined that historical earnings of certain foreign subsidiaries in excess of amounts required to sustain business operations would no longer be indefinitely reinvested. During the six months ended June 30, 2025, no historical earnings from a subsidiary in the PRC were distributed (2024 — $nil) and, as a result, no foreign withholding taxes were paid to the relevant tax authorities (2024 — $nil). As of June 30, 2025, the Company's Condensed Consolidated Balance Sheets included a deferred tax liability of $12.5 million for the applicable foreign withholding taxes associated with the remaining balance of non-repatriated historical earnings that will not be indefinitely reinvested outside of Canada. These taxes will become payable upon the repatriation of any such earnings.

The Company forecasts its future cash flow and short-term liquidity requirements on an ongoing basis. These forecasts are based on estimates and may be materially impacted by factors that are outside of the Company's control (including the factors described in "Risk Factors" in Part I, Item 1A of the Company's 2024 Form 10-K as supplemented by "Risk Factors" in Part II, Item 1A of this Form 10-Q). As a result, there is no guarantee that these forecasts will come to fruition and that the Company will be able to fund its operations through cash flows from operations. In particular, the Company's operating cash flows and cash balances will be adversely impacted if management's projections of future signings and installations of IMAX Systems and box office performance of IMAX content are not realized.

The Company also has certain significant contractual obligations and commitments that have been disclosed in "Contractual Obligations" in Part II, Item 7 of the Company's 2024 Form 10-K. There are no material changes to these obligations and commitments as of June 30, 2025.

Based on the Company's current cash balances and operating cash flows, management expects to have sufficient capital and liquidity to fund its anticipated operating needs and capital requirements during the next twelve-month period following the date of this report.

**OFF-BALANCE SHEET ARRANGEMENTS**

There are currently no off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on the Company's financial condition.

**CRITICAL ACCOUNTING ESTIMATES**

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 Condensed 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 Company's Condensed Consolidated Financial Statements. Actual results may ultimately differ from the Company's original estimates, as future events and circumstances sometimes do not develop as expected, and the differences may be material. For more information on the Company's critical accounting estimates

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refer to the section entitled "Critical Accounting Estimates" in Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the 2024 Form 10-K.

**RECENTLY ISSUED ACCOUNTING STANDARDS**

Refer to Note 2 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 for a discussion of recently issued accounting standards and their impact on the Company's Condensed Consolidated Financial Statements.

 **NON-GAAP FINANCIAL MEASURES**

GAAP refers to generally accepted accounting principles in the United States of America. In this report, the Company presents financial measures in accordance with GAAP and also on a non-GAAP basis under the SEC regulations. Specifically, the Company presents the following non-GAAP financial measures as supplemental measures of its performance:

&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted net income or loss attributable to common shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted net income or loss attributable to common shareholders per basic and diluted share;

&nbsp;&nbsp;&nbsp;&nbsp;• EBITDA;

&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA per Credit Facility; and

&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Selling, general and administrative expenses.

Adjusted net income or loss attributable to common shareholders and adjusted net income or loss attributable to common shareholders per basic and diluted share exclude, where applicable: (i) share-based compensation; (ii) realized and unrealized investment gains or losses; (iii) restructuring and other charges; and (iv) employee retention credits, and as well as the related tax impact of these adjustments.

The Company believes that these non-GAAP financial measures are important supplemental measures that allow management and users of the Company's financial statements to view operating trends and analyze controllable operating performance on a comparable basis between periods without the after-tax impact of share-based compensation and certain unusual items included in net income attributable to common shareholders. Although share-based compensation is an important aspect of the Company's employee and executive compensation packages, it is a non-cash expense and is excluded from certain internal business performance measures.

Reconciliations of net income attributable to common shareholders and the associated per share amounts to adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per diluted share are presented in the tables below.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
| | **2025** | **2025** | **2024** | **2024** |
| *(In thousands of U.S. Dollars, except per share amounts)* | **Net Income** | **Per Diluted Share** | **Net Income** | **Per Diluted Share** |
| Net income attributable to common shareholders | $11255 | $0.20 | $3583 | $0.07 |
| Adjustments<sup>(1)</sup>: |  |  |  |  |
| &nbsp;&nbsp;Share-based compensation | 7128 | 0.13 | 6647 | 0.12 |
| &nbsp;&nbsp;Unrealized investment gains | (33) |  | (32) |  |
| &nbsp;&nbsp;Restructuring and other charges | 786 | 0.01 |  |  |
| &nbsp;&nbsp;Employee retention credits | (3827) | (0.07) |  |  |
| &nbsp;&nbsp;Tax impact on items listed above | (702) | (0.01) | (452) | (0.01) |
| Adjusted net income<sup>(1)</sup> | $14607 | $0.26 | $9746 | $0.18 |
| Weighted average shares outstanding — basic |  | 53751 |  | 52633 |
| Weighted average shares outstanding — diluted |  | 55161 |  | 53428 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Reflects amounts attributable to common shareholders.* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Reflects amounts attributable to common shareholders.* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Reflects amounts attributable to common shareholders.* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Reflects amounts attributable to common shareholders.* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Reflects amounts attributable to common shareholders.* |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2025** | **2024** | **2024** |
| *(In thousands of U.S. Dollars, except per diluted share amounts)* | **Net Income** | **Per Diluted Share** | **Net Income** | **Per Diluted Share** |
| Net income attributable to common shareholders | $13582 | $0.25 | $6857 | $0.13 |
| Adjustments<sup>(1)</sup>: |  |  |  |  |
| &nbsp;&nbsp;Share-based compensation | 12340 | 0.22 | 11354 | 0.21 |
| &nbsp;&nbsp;Unrealized investment gains | (65) |  | (62) |  |
| &nbsp;&nbsp;Restructuring and other charges | 843 | 0.02 |  |  |
| &nbsp;&nbsp;Employee retention credits | (3827) | (0.07) |  |  |
| &nbsp;&nbsp;Tax impact on items listed above | (1088) | (0.02) | (462) | (0.01) |
| Adjusted net income<sup>(1)</sup> | $21785 | $0.40 | $17688 | $0.33 |
| Weighted average shares outstanding — basic |  | 53448 |  | 52568 |
| Weighted average shares outstanding — diluted |  | 55064 |  | 53386 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Reflects amounts attributable to common shareholders.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Reflects amounts attributable to common shareholders.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Reflects amounts attributable to common shareholders.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Reflects amounts attributable to common shareholders.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)Reflects amounts attributable to common shareholders.* |

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In addition to the non-GAAP financial measures discussed above, management also uses "EBITDA," as such term is defined in the Credit Agreement, and which is referred to herein as "Adjusted EBITDA per Credit Facility." As defined in the Credit Agreement, Adjusted EBITDA per Credit Facility includes adjustments in addition to the exclusion of interest, taxes, depreciation and amortization. Accordingly, this non-GAAP financial measure is presented to allow a more comprehensive analysis of the Company's operating performance and to provide additional information with respect to the Company's compliance with its Credit Agreement requirements, when applicable. In addition, the Company believes that Adjusted EBITDA per Credit Facility presents relevant and useful information widely used by analysts, investors and other interested parties in the Company's industry to evaluate, assess and benchmark the Company's results.

EBITDA is defined as net income or loss excluding: (i) income tax expense or benefit; (ii) interest expense, net of interest income; (iii) depreciation and amortization, including film asset amortization; and (iv) amortization of deferred financing costs. Adjusted EBITDA per Credit Facility is defined as EBITDA excluding: (i) share-based and other non-cash compensation; (ii) realized and unrealized investment gains or losses; (iii) restructuring and other charges; and (iv) write-downs, net of recoveries, including asset impairments and credit loss expense or reversal.

Reconciliations of net income attributable to common shareholders, which is the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA per Credit Facility are presented in the tables below:

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| | |
|:---|:---|
| *(In thousands of U.S. Dollars)* | **Three Months Ended June 30, 2025** |
| Reported net income | $12235 |
| Add (subtract): |  |
| &nbsp;&nbsp;Income tax expense | 1198 |
| &nbsp;&nbsp;Interest expense, net of interest income | 321 |
| &nbsp;&nbsp;Depreciation and amortization, including film asset amortization | 15896 |
| &nbsp;&nbsp;Amortization of deferred financing costs<sup>(1)</sup> | 492 |
| &nbsp;&nbsp;EBITDA | 30142 |
| &nbsp;&nbsp;Share-based and other non-cash compensation | 7492 |
| &nbsp;&nbsp;Unrealized investment gains | (33) |
| &nbsp;&nbsp;Restructuring and other charges | 786 |
| &nbsp;&nbsp;Write-downs, including asset impairments and credit loss expense | 671 |
| Total Adjusted EBITDA | $39058 |
| Less: Non-controlling interest | (2372) |
| Adjusted EBITDA per Credit Facility - attributable to common shareholders | $36686 |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statements of Operations.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statements of Operations.* |

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| | |
|:---|:---|
| *(In thousands of U.S. Dollars)* | **Twelve Months Ended June 30, 2025** |
| Reported net income | $42594 |
| Add (subtract): |  |
| &nbsp;&nbsp;Income tax expense | 12317 |
| &nbsp;&nbsp;Interest expense, net of interest income | 2879 |
| &nbsp;&nbsp;Depreciation and amortization, including film asset amortization | 62310 |
| &nbsp;&nbsp;Amortization of deferred financing costs<sup>(1)</sup> | 1969 |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | 122069 |
| &nbsp;&nbsp;Share-based and other non-cash compensation | 24222 |
| &nbsp;&nbsp;Unrealized investment gains | (130) |
| &nbsp;&nbsp;Restructuring and other charges | 4592 |
| &nbsp;&nbsp;Write-downs, including asset impairments and credit loss expense | 1164 |
| Total Adjusted EBITDA | $151917 |
| Less: Non-controlling interest | (17404) |
| Adjusted EBITDA per Credit Facility - attributable to common shareholders | $134513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statements of Operations.* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1)The amortization of deferred financing costs is recorded within Interest Expense in the Condensed Consolidated Statements of Operations.* |

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The Company also adjusts Selling, General and Administrative Expenses to exclude a portion of share-based compensation and related payroll taxes. Management uses non-GAAP and other financial measures such as this, internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. IMAX believes that this non-GAAP measure provides useful information about operating results, enhances the overall understanding of past financial performance and future prospects, and allows for greater transparency with respect to key metrics used by management and its financial and operational decision making.

A reconciliation of Selling, General and Administrative Expenses, the most directly comparable GAAP measure presented in the Condensed Consolidated Statement of Operations in Part I, Item 1, to Adjusted Selling, General and Administrative Expenses is presented in the table below.

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---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| *(In thousands of U.S. Dollars)* | **2025** | **2024** | **2025** | **2024** |
| Total Selling, general and administrative expenses | $35302 | $37564 | $68764 | $68821 |
| Less: Share-based compensation | (6862) | (6506) | (11582) | (10843) |
| Total Adjusted Selling, general and administrative expenses | $28440 | $31058 | $57182 | $57978 |

---

The Company cautions users of its financial statements that these non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Additionally, the non-GAAP financial measures used by the Company should not be considered in isolation, or as a substitute for, or superior to, the comparable GAAP amounts.

**Item 3.&nbsp;&nbsp;&nbsp;&nbsp;*Quantitative and Qualitative Disclosures about Market Risk***

The Company is exposed to market risk from foreign currency exchange rates and interest rates, which could affect operating results, financial position and cash flows. Market risk is the potential change in an instrument's value caused by, for example, fluctuations in interest and currency exchange rates. The Company's primary market risk exposure is the risk of unfavorable movements in exchange rates between the U.S. Dollar, the Canadian Dollar, and Chinese Renminbi ("RMB"). The Company does not use financial instruments for trading or other speculative purposes.

**Foreign Exchange Rate Risk**

A majority of the Company's revenue 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 flows is converted to Canadian Dollars to fund Canadian Dollar expenses through the spot market. In addition, IMAX films generate box office in 89 different countries, and therefore unfavorable exchange rates between applicable local currencies and the U.S. Dollar could have an impact on the GBO generated by the Company's exhibitor customers and its revenues. For example, the impact of changes in foreign currency valuations versus the U.S. Dollar led to a decrease in IMAX GBO of approximately $64 million as compared to those in 2019. The Company has incoming cash flows from its revenue generating IMAX network and ongoing operating expenses in China through its majority-owned subsidiary IMAX Shanghai. In Japan, the Company has ongoing Yen-denominated operating expenses related to its Japanese operations. Net RMB and Japanese Yen cash flows are converted to U.S. Dollars through the spot market. The Company also has cash receipts under leases denominated in RMB, Japanese Yen, British Pound Sterling, Euros and Canadian Dollars.

The Company manages its exposure to foreign exchange rate risks through its regular operating and financing activities and, when appropriate, through the use of derivative financial instruments. These derivative financial instruments are utilized to hedge economic exposures as well as reduce earnings and cash flow volatility resulting from shifts in market rates.

Certain of the Company's PRC subsidiaries held approximately RMB 436.6 million ($61.0 million) in cash and cash equivalents as of June 30, 2025 (December 31, 2024 — RMB 341.1 million or $47.5 million) and are required to transact locally in RMB. Foreign currency exchange transactions, including the remittance of any funds into and out of the PRC, are subject to controls and require the approval of the China State Administration of Foreign Exchange to complete. Any developments relating to the Chinese economy and any actions taken by the Chinese government are beyond the control of the Company; however, the Company monitors and manages its capital and liquidity requirements to ensure compliance with local regulatory and policy requirements. (Refer to "Risk Factors – The Company faces risks in connection with its significant presence in China and the continued expansion of its business there" in Part I, Item 1A. of this Form 10-Q.)

Management also monitors the macroeconomic environment as part of its continuous assessment of credit risk. This includes consideration of developments in the U.S. and global banking sectors, which informs management's assessment of any potential direct and indirect impacts on the Company. There are no concentrations of cash and cash equivalents in any regional banking institutions, such that management considers there to be any material risk in this regard.

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

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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 continue to meet hedge effectiveness tests as of June 30, 2025, with settlement dates throughout 2025 and 2026. Foreign currency derivatives are recognized and measured on the Condensed Consolidated Balance Sheets at fair value. Changes in the fair value (i.e., gains or losses) are recognized in the Condensed 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 within Accumulated Other Comprehensive Income (Loss) and reclassified to the Condensed Consolidated Statements of Operations when the forecasted transaction occurs. Any ineffective portion is recognized immediately in the Condensed Consolidated Statements of Operations.

The notional value of foreign currency cash flow hedging instruments that qualify for hedge accounting as of June 30, 2025 was $51.3 million (December 31, 2024 — $48.4 million). Gains of $2.5 million and $1.8 million were recorded to Other Comprehensive Income with respect to the change in fair value of these contracts for the three and six months ended June 30, 2025, respectively (2024 — losses of $0.4 million and $1.3 million, respectively). Losses of $0.3 million and $1.6 million were reclassified from Accumulated Other Comprehensive Loss to Selling, General and Administrative Expenses for the three and six months ended June 30, 2025, respectively (2024 — loss of $0.1 million and $0.1 million, respectively). The Company currently does not hold any derivatives which are not designated as hedging instruments.

For all derivative instruments, the Company is subject to counterparty credit risk to the extent that the counterparty may not meet its obligations to the Company. To manage this risk, the Company enters into derivative transactions only with major financial institutions.

As of June 30, 2025, the Company's Financing Receivables and working capital items denominated in Canadian Dollars, RMB, Japanese Yen, Euros and other foreign currencies translated into U.S. Dollars was $167.8 million. Assuming a 10% appreciation or depreciation in foreign currency exchange rates from the quoted foreign currency exchange rates as of June 30, 2025, the potential change in the fair value of foreign currency-denominated financing receivables and working capital items would have been $16.8 million. A significant portion of the Company's Selling, General, and Administrative Expenses is denominated in Canadian Dollars. Assuming a 1% change appreciation or depreciation in foreign currency exchange rates as of June 30, 2025, the potential change in the amount of Selling, General, and Administrative Expenses would be $0.1 million.

**Interest Rate Risk Management**

The Company's earnings may also be affected by changes in interest rates due to the impact those changes have on its interest income from cash, and its interest expense from variable-rate borrowings that may be made under the Credit Facility.

As of June 30, 2025, the Company had drawn down $48.0 million on its Credit Facility (December 31, 2024 — $37.0 million), and $nil on its HSBC China Facility (December 31, 2024 — $nil) and $nil on its Bank of China Facility (December 31, 2024 — $nil), which are subject to variable effective interest rates.

The Company had variable rate debt instruments representing 10% and 8% of its total liabilities as of June 30, 2025 and December 31, 2024, respectively. If the interest rates available to the Company increased by 10%, the Company's interest expense would increase by $0.3 million and interest income from cash would increase by $0.3 million. These amounts are determined by considering the impact of the hypothetical interest rates on the Company's variable rate debt and cash balances as of June 30, 2025.

**Item 4.&nbsp;&nbsp;&nbsp;&nbsp;*Controls and Procedures***

**EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES**

The Company maintains disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized, and reported within the specified time periods and that such information is accumulated and communicated to management, including the CEO and Chief Financial Officer ("CFO"), to allow timely discussions regarding required disclosure. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.

The Company's management, with the participation of its CEO and its CFO, has evaluated the effectiveness of the Company's "disclosure controls and procedures" (as defined in Rules 13a-15(e) or 15d-15(e) of the Exchange Act) as of June 30, 2025 and has

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concluded that, as of the end of the period covered by this report, the Company's disclosure controls and procedures were effective. The Company will continue to periodically evaluate its disclosure controls and procedures and will make modifications from time to time as deemed necessary to ensure that information is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms.

**CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

There were no changes in the Company's internal control over financial reporting which occurred during the three months ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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**PART II. OTHER INFORMATION**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp;*Legal Proceedings***

Refer to Note 7 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 for information regarding legal proceedings involving the Company.

**Item 1A. *Risk Factors***

This Form 10-Q should be read together with, and supplement, the risk factors in Item 1A "Risk Factors" in the Company's 2024 Form 10-K, which describes various risks and uncertainties to which the Company is or may become subject. The risk factor below updates certain risk factors included in the Company's 2024 Form 10-K in light of recent events. The below risk factor and the risk factors included in the Company's 2024 Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial also may materially adversely affect its business, financial condition and/or operating results.

***The Company's business may be materially adversely affected by the imposition of tariffs and other trade barriers and retaliatory countermeasures implemented by the United States and other governments.***

Recently, the U.S. government has implemented substantial and rapidly evolving changes to U.S. trade policies, including increased tariffs and changes in U.S. participation in multilateral trade agreements, while other countries, China and Canada in particular, have undertaken retaliatory measures in response to such changes. These changes could adversely impact the Company's operations, costs and expenses applicable to revenues, and cash flows. While the Company does not believe these changes will materially impact its results for 2025, there can be no guarantees that further changes to U.S. trade policy and/or retaliatory actions by other countries will not occur.

Additionally, uncertainty about global trade relationships has and may continue to increase market volatility, currency exchange rate fluctuation, and economic instability, which may adversely impact the Company's results of operations. Furthermore, any resulting downturn or increase in geopolitical tensions may adversely impact consumers' discretionary income and/or adversely affect consumer purchasing behavior, which could have a material adverse effect on box office receipts and on our results of operations and financial condition.

The extent and duration of increased tariffs, retaliatory actions, and the resulting impact of both on general economic conditions around the world and on the global filmed entertainment industry in particular, are uncertain and depend on numerous factors, such as the responses of and negotiations among the affected countries. As such, we cannot predict the impact to our business from any future changes to the trading relationships between the U.S. and other countries or the impact of new laws or regulations adopted by the U.S. or other countries. Furthermore, any adverse development in these areas could exacerbate risks discussed in "Risk Factors – The Company conducts business internationally, which exposes it to uncertainties and risks that could negatively affect its operations, sales, and future growth prospects," "Risk Factors –The Company faces risks in connection with its significant presence in China and the continued expansion of its business there," and "Risk Factors –General political, social and economic conditions can affect the Company's business by reducing both revenues generated from existing IMAX Systems and the demand for new IMAX Systems" in Part I, Item 1A of the Company's 2024 Form 10-K.

**Item 2.&nbsp;&nbsp;&nbsp;&nbsp;*Unregistered Sales of Equity Securities and Use of Proceeds***

**Issuer Purchases of Equity Securities**

On June 12, 2017, the Company announced that its Board of Directors approved a $200.0 million share repurchase program for its common shares that would have expired on June 30, 2020, which was subsequently extended for a 12-month period in 2020, 2021, and 2022 and increased in the total share repurchase authority to $400.0 million. In 2023, the Board of Directors approved a 36-month extension to the share repurchase program through June 30, 2026. On June 12, 2025, the Company announced an increase of $100.0 million in the Company's share repurchase program along with a one-year extension through June 30, 2027. As of June 30, 2025, the Company had $250.7 million available under the program. The repurchases may be made either in the open market or through private transactions, including repurchases made pursuant to a plan intended to comply with Rule 10b5-1 under the Exchange Act, subject to market conditions, applicable legal requirements, and other relevant factors. The Company has no obligation to repurchase shares and the share repurchase program may be suspended or discontinued by the Company at any time.

During the three months ended June 30, 2025, the Company did not repurchase any common shares under the Company's publicly announced program, and there are no other programs under which the Company repurchases shares.

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The Company's common share repurchase program activity for the three months ended June 30, 2025 was as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Total number of shares purchased** | <br>**Average price paid per share** | **Total number of shares purchased as part of publicly announced program** | **Maximum approximate dollar value of shares that may yet be purchased under the program** |
| April 1 through April 30, 2025 |  | $— |  | $150720352 |
| May 1 through May 31, 2025 |  |  |  | 150720352 |
| June 1 through June 30, 2025<sup>(1)</sup> |  |  |  | 250720352 |
| Total |  | $— |  |  |
| ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1) On June 12, 2025, the Company announced an increase of $100.0 million in the Company's share repurchase program.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1) On June 12, 2025, the Company announced an increase of $100.0 million in the Company's share repurchase program.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1) On June 12, 2025, the Company announced an increase of $100.0 million in the Company's share repurchase program.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1) On June 12, 2025, the Company announced an increase of $100.0 million in the Company's share repurchase program.* | ![Image_1.jpg](imax-20250630_g1.jpg)<br>*(1) On June 12, 2025, the Company announced an increase of $100.0 million in the Company's share repurchase program.* |

---

In 2024, IMAX China's 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 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 of IMAX China, shareholders granted its Board of Directors a general mandate authorizing the Board of Directors of IMAX China, subject to applicable laws, to repurchase shares of IMAX China not to exceed 10% of the total number of shares as of June 12, 2025 (33,919,122 shares). This program will be valid until the 2026 Annual General Meeting of IMAX China. 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. During the three months ended June 30, 2025, IMAX China repurchased 1,495,900 shares.

(Refer to Note 6 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 for a summary of the material terms and conditions of the Company's revolving credit facility, which include a limitation of the amount of permitted share repurchases.)

**Item 5.&nbsp;&nbsp;&nbsp;&nbsp;*Other Information***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c)*Rule 10b5-1 and Non-Rule 10b5-1 Trading Arrangements**

On June 11, 2025, Robert D. Lister, the Company's Chief Legal Officer & Senior Executive Vice President, entered into a Rule 10b5-1 trading arrangement (as defined in Item 408 of Regulation S-K under the Exchange Act ("Item 408") and such arrangement, the "Plan") for the sale of up to 70,143 common shares of the Company. This total includes 50,143 previously granted stock options that are due to expire on March 7, 2026. Sales under this Plan may commence on September 15, 2025, after the completion of the required cooling off period under Rule 10b5-1. The Plan will terminate on March 6, 2026, or earlier if all shares under the Plan have been sold. This trading arrangement is intended to satisfy the affirmative defense of Rule 10b5-1(c). No other Rule 10b5-1 or non-Rule 10b5-1 trading arrangements (as defined in Item 408) were adopted or terminated by any directors or officers of the Company during the second quarter of 2025.

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**Item 6.&nbsp;&nbsp;&nbsp;&nbsp;*Exhibits***

---

| | |
|:---|:---|
| **Exhibit**<br>**No.** | **Description** |
| 10.1\*+ | <u>[Employment Agreement](a101employmentagreementdat.htm)[, dated as of March 13, 2025, between IMAX Corporation and Jose Zlatar](a101employmentagreementdat.htm)</u> |
| 10.2\*+ | <u>[Employment Agreement, dated as of January 12, 2024, between IMAX Corporation and](a102employmentagreementdat.htm)[Anne Globe](a102employmentagreementdat.htm)</u> |
| 10.3\*+ | <u>[Amendment to Employment Terms, dated as of May 20, 2025, between IMAX Corporation and Jose Zlatar](a103amendmenttoemploymentt.htm)</u> |
| 10.4\*+ | <u>[Amendment to Employment Terms, dated as of M](a104amendmenttoemploymentt.htm)[ay 2](a104amendmenttoemploymentt.htm)[0, 2025, between IMAX Corporation and Anne Globe](a104amendmenttoemploymentt.htm)</u> |
| 10.5\*+ | <u>[Amendment to Employment Terms, dated as of May 20, 2025, between IMAX Corporation and](a105amendmenttoemploymentt.htm)[Mark Welton](a105amendmenttoemploymentt.htm)</u> |
| 10.6\*+ | <u>[Amendment to Employment Terms, dated as of May 20, 2025, between IMAX Corporation and](a106amendmenttoemploymentt.htm)[Natasha Fernandes](a106amendmenttoemploymentt.htm)</u> |
| 31.1\* | <u>[Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated July 24, 2025, by Richard L. Gelfond](exhibit311ceocertification.htm)</u> |
| 31.2\* | <u>[Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated July 24, 2025, by Natasha Fernandes](exhibit312cfocertification.htm)</u> |
| 32.1\*\* | <u>[Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated July 24, 2025, by Richard L. Gelfond](exhibit321ceocertification.htm)</u> |
| 32.2\*\* | <u>[Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated July 24, 2025, by Natasha Fernandes](exhibit322cfocertification.htm)</u> |
| 101.INS | Inline XBRL Instance Document – The instance document does not appear in the interactive data file because its XBRL<br>tags are embedded within the Inline XBRL document. |
| 101.CAL | Inline XBRL Taxonomy Extension Schema Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101. PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |

---

\*Filed herewith.

\*\*Furnished herewith.

+Management contract or compensatory plan, contract or arrangement.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | IMAX CORPORATION | IMAX CORPORATION |
| Date: July 24, 2025 | By: | /s/ NATASHA FERNANDES |
|  |  | Natasha Fernandes |
|  |  | Chief Financial Officer & Executive Vice President |
|  |  | (Principal Financial Officer) |
| Date: July 24, 2025 | By: | /s/ JOSE ZLATAR |
|  |  | Jose Zlatar |
|  |  | Senior Vice-President, Finance & Controller |
|  |  | (Principal Accounting Officer) |

---

## Exhibit 10.1

**Exhibit 10.1**

**CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. [\*\*\*] INDICATES THAT INFORMATION HAS BEEN REDACTED.**

March 13, 2025

***Revised, Strictly Private & Confidential***

Jose Zlatar

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**[\*\*\*]**

Dear Jose,

This employment agreement (the "**Agreement**") will confirm our offer to you to join IMAX Corporation (the "**Company**" or "**IMAX**") in the position of SVP, Finance starting on February 27, 2025 (such date, or the date that you actually commence employment at the Company, the "**Effective Date**") and continuing indefinitely until your employment is terminated in accordance with the "Termination" section below. The terms and conditions of your employment will be as follows:

Position:&nbsp;&nbsp;&nbsp;&nbsp;SVP, Finance Employment Type: Regular, Full-Time

Reporting to:&nbsp;&nbsp;&nbsp;&nbsp;Natasha Fernandes – Chief Financial Officer

Location:&nbsp;&nbsp;&nbsp;&nbsp;Sheridan Park

2525 Speakman Dr. Mississauga, ON L5K 1B1 Canada

*Domestic and international travel may be required.*

Effective Date:&nbsp;&nbsp;&nbsp;&nbsp;02/27/2025

Salary:&nbsp;&nbsp;&nbsp;&nbsp;$275,000.00 CAD per annum, less applicable deductions and withholdings ("**Base Salary**"). You will be paid pursuant to IMAX's normal payroll practices.

In this Agreement, "**Actively Employed**" means the period following the Effective Date during which you perform work for the Company, until your employment is terminated for any reason or you resign. "**Actively Employed**" shall be deemed to include (i) any period of vacation, disability, or other leave permitted by legislation, and (ii) the minimum termination notice period required to be provided to you in accordance with the *Employment Standards Act, 2000* (as may be amended from time to time) (the "**ESA**"), if any. For certainty, "**Actively Employed**" shall be deemed to exclude any other period that follows or ought to have followed the later of (i) the end of the minimum termination notice period as is required to by provided to you in accordance with the ESA (if any), or (ii) your last day of performing work for the Company (including any period of vacation, disability, or other leave permitted by legislation) whether that period arises from a contractual or common law right.

One-Time Equity Grant: Subject to the approval of the Board of Directors (the "**Board**"), you will be eligible to receive a one-time equity award in the form of restricted share units of IMAX common shares ("**RSUs**") pursuant to the IMAX Corporation Second

------

**Exhibit 10.1**

Amended and Restated Long-Term Incentive Plan, as may be amended by the Company in its sole discretion from time to time (the "**LTIP**"), with a grant date fair market value of $100,000.00 USD (the "**Signing Grant**"). The Signing Grant will be granted on a date designated by the Company following the Effective Date.

The Signing Grant, if approved, will be calculated in accordance with and will be governed by the terms and conditions contained in the LTIP and the applicable grant agreement(s), and will vest according to the following schedule:

On the first anniversary of the grant date: 33.33%;

On the second anniversary of the grant date: 33.33%; and On the third anniversary of the grant date: 33.34%.

The Signing Grant is subject to the same terms and conditions as those included in the "Equity" Section below.

Bonus:&nbsp;&nbsp;&nbsp;&nbsp;You will be eligible to receive an annual bonus with a target of 30% of your eligible earnings (the "**STI Bonus**"), in accordance with the IMAX Short-Term Incentive Plan (bonus).

Calculation of the STI Bonus is based on Company performance and individual performance. Current year eligibility requires that you start employment prior to October 1<sup>st</sup>, and any STI Bonus for the current year will be prorated based on the Effective Date.

The STI Bonus, if any, will be payable following the completion of the year to which it relates. You acknowledge and agree that: (i) terms of the STI Bonus may change each year at the discretion of the Company; (ii) you have no expectation that in any particular year there will be an STI Bonus; (iii) the amount of the STI Bonus, if any, that you may be awarded may change from year to year; (iv) the STI Bonus, if any, will be calculated on a pro-rata basis for any period of the fiscal year in which you are on a leave of absence (excluding any period of vacation taken in accordance with this Agreement); and (iv) subject to the requirements of the ESA, you must be Actively Employed on the date any STI Bonus is paid in order to be eligible to receive such bonus payment. Your entitlement to the STI Bonus on termination of employment is governed by the "Termination" section of this Agreement.

Equity:&nbsp;&nbsp;&nbsp;&nbsp;Subject to the approval of the Board, you will be eligible to receive an award of RSUs and an award of performance stock units ("**PSUs**") under the LTIP, with a grant target of a grant date fair market value equal to $150,000.00 USD. Grants are made on a discretionary basis annually. The mix of equity vehicles, grant timing, and vesting schedules for any annual grant will be consistent with that provided to similarly-situated employees at the Company and in accordance with the Company's standard processes at the time of the grant.

The award of any grant, if approved, will be governed by, and will vest in accordance with, the terms and conditions contained in the LTIP and the applicable grant agreement(s). A copy of the LTIP and the standard form of the grant agreement have been provided to you and you agree that the consequences of termination of employment on any equity awards you receive have been brought to your attention.

------

**Exhibit 10.1**

You understand and agree that (i) the terms of the LTIP and the applicable grant agreement(s) govern any and all rights and obligations that you may have as a result of receiving a grant of awards, (ii) your receipt of any grant shall not constitute a guarantee of continued employment for any particular period of time,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) you have no expectation that a grant will occur at any particular time in a fiscal year, and (iv) you shall have no entitlement to any grant until the award is actually granted to you as evidenced by a grant agreement.

Car Allowance:&nbsp;&nbsp;&nbsp;&nbsp;The Company shall pay to you an automobile allowance of $10,200.00 CAD annually, subject to applicable deductions and withholdings. Additionally, you may expense and be reimbursed for vehicle gas, maintenance, and insurance costs up to an annual maximum of $4,800.00 CAD, subject to applicable deductions and withholdings (collectively, the "**Vehicle Allowance**"). You will be responsible for the taxes associated with the Vehicle Allowance, if any.

Benefits:&nbsp;&nbsp;&nbsp;&nbsp;You will be eligible to participate in the Company's benefits plan, which may be subject to benefit premiums to be paid by you, as of the Effective Date, in accordance with the terms of the applicable program documents, as may be amended from time to time, and you shall have no independent right as against the Company in connection with said benefits.

The benefit program includes a contribution to the Canadian Defined Contribution Registered Pension ("**DCRPP**"), which equals 5% of your Base Salary, up to the annual maximum contribution in compliance with the *Income Tax Act* (Canada). In addition, you are eligible to participate in the voluntary Registered Retirement Pension Plan ("**RRSP**"). You are responsible for ensuring that contributions to your RRSP do not exceed the RRSP contribution limits under the *Income Tax Act* (Canada). Subject to the ESA, you must be Actively Employed on the date a DCRPP contribution is made in order to receive the payment.

To the fullest extent permitted by law, the Company reserves the right to change, amend, delete, or alter the DCRPP, the RRSP and/or Group Flexible Plan plans or programs from time to time at its sole discretion, without notice or compensation to you in lieu of notice.

You are not entitled to any payment, benefit, perquisite, allowance or entitlement other than as specifically set out in this Agreement or as otherwise agreed to in writing by the Company and you.

Vacation:&nbsp;&nbsp;&nbsp;&nbsp;You will be entitled to accrue vacation with pay in each calendar year of 20 days. Your vacation days will accrue on a weekly basis in accordance with the IMAX Vacation Policy.

You are not permitted to carry over unused vacation entitlements, except as required by the ESA. No payment shall be made for unused vacation entitlements, except on termination of your employment in accordance with the ESA.

Additionally, you will be entitled to be paid for all public holidays in accordance with the provisions of the ESA.

------

**Exhibit 10.1**

Relocation Assistance: To assist you with your relocation, the Company will provide Relocation Assistance not to exceed a total of $36,000.00 CAD (collectively, the "**Relocation Assistance**"). The Company will reimburse you up to $6000 a month for relocation assistance for temporary housing up to 4 months. If more than 4 months is required for relocation assistance for temporary housing, IMAX will consider an additional 2 months of relocation assistance for temporary housing at $6000 a month and will confirm if payment will be processed via expense reimbursement or lump sum bonus (grossed up to cover taxes) in May/June 2025. If your employment is terminated for any reason pursuant to the "Termination" section below (either by you or the Company) other than by the Company without Cause within 18 months following the Effective Date, you shall be required to repay the Company the entire Relocation Assistance provided by the Company within 30 days of the termination date. You agree that, subject to applicable laws, the Company may deduct any such repayment amounts in respect of the Relocation Assistance from any payments owing to you. If you sell your current residence at **[\*\*\*]**, the Relocation Assistance will cease immediately.

Termination:&nbsp;&nbsp;&nbsp;&nbsp;*By You:* You may resign from your employment by providing the Company with 30 days' prior written notice. Following receipt of your notice, the Company may excuse you from the further performance of your duties and may restrict you from attending the Company's premises and/or accessing its systems or information. If you resign, the Company's only obligation will be to pay you accrued wages and vacation pay, if any, earned by you up to your date of termination but not yet paid, and continue your benefits until your date of termination (the "**Basic Entitlements**").

*By the Company without Notice, for Cause:* The Company may terminate your employment in writing at any time without prior notice to you and without pay in lieu thereof for your wilful misconduct, disobedience or wilful neglect of duty that is not trivial and has not been expressly condoned by the Company ("**Cause**") by providing you with only your Basic Entitlements.

*By the Company without Cause:* In the absence of Cause, the Company may terminate your employment in writing at any time and shall provide you with notice, or pay in lieu of notice, in accordance with applicable law.

*STI Bonus:* No STI Bonus, pro-rated or otherwise, will be payable to you in respect of the year in which your employment terminates, for any reason, or, if applicable, in the period of notice of termination that follows, except as may be required by the ESA, and you waive the right to receive damages or payment in lieu of any forfeited STI Bonus payment. The foregoing shall apply regardless of any plan or program terms providing otherwise.

*LTIP / Signing Grant*: Any entitlement upon termination of employment in respect of a Signing Grant or equity grant (as referenced herein) will be governed by the terms of the LTIP or grant agreement, as applicable.

*Vehicle Allowance:* the Company shall continue to provide the Vehicle Allowance to you until the end of the minimum notice of termination period, if any, required to be provided by the ESA.

------

**Exhibit 10.1**

*Acknowledgment***:** You agree that except as set out in this "Termination" section, no further notice of termination, pay in lieu thereof, severance pay or any other amounts will be payable to you in respect of the termination of your employment for any reason, including in the event of a constructive dismissal (in which case the "Termination without Cause" entitlements shall apply). You also agree that regardless of the length of your employment with the Company, any change in your position or other terms of employment, this provision will continue to apply to you**.**

Background Check:&nbsp;&nbsp;&nbsp;&nbsp;This offer is subject to the satisfactory completion of a background check. This may include verification of previous employment, as permitted by the ESA.

IMAX Documents: The IMAX Employee Confidentiality, Non-Competition, and Intellectual Property Agreement you previously signed will remain in effect for the duration of your employment.

In addition, you are required to review and acknowledge by way of signature the IMAX Code of Business Conduct and Ethics and the IMAX Anti-Bribery and Anti-Corruption policy prior to the Effective Date. Upon joining, you will be required to abide by existing IMAX policies that pertain to your employment and other such policies that are introduced during your employment.

Continuing Obligations: By signing this letter, you confirm that you are under no contractual or other legal obligations that would prohibit you from performing your duties with IMAX. You further confirm that you will not remove or take any documents or proprietary data or materials of any kind, electronic or otherwise, with you from your current or former employer to IMAX without written authorization from your current or former employer, nor will you use or disclose any such confidential information during the course and scope of your employment with IMAX.

Suspension with Pay: You acknowledge that, during the course of your employment, the Company may exercise its discretion to suspend you with pay in furtherance of any internal investigation relating to your conduct, and that such suspension shall not constitute constructive dismissal or a breach of this Agreement.

Accessibility:&nbsp;&nbsp;&nbsp;&nbsp;The Company is committed to complying with the *Accessibility for Ontarians with Disabilities Act, 2005*, and has policies in place to accommodate its employees with disabilities. Should you require accommodation or have a question regarding any of these policies, please contact the IMAX Human Resources Department.

General:&nbsp;&nbsp;&nbsp;&nbsp;This Agreement will ensure to the benefit of and be binding upon the parties and their respective heirs, executors and administrators or successors and permitted assigns, as the case may be.

Except as permitted by the terms of any plan, no supplement, modification, amendment or waiver of this Agreement will be binding unless executed in writing by both parties. No waiver of any of the provisions of this Agreement will constitute a waiver of any other provision (whether or not similar) nor will such waiver constitute a continuing waiver unless otherwise expressly provided.

------

**Exhibit 10.1**

This Agreement shall be governed by and construed in accordance with the laws of the province of Ontario and the federal laws of Canada applicable therein. The courts of the Province of Ontario shall have exclusive jurisdiction to deal with all disputes arising from or relating to this Agreement.

If any provision in this Agreement is determined to be invalid, void or unenforceable by the decision of any court of competent jurisdiction, which determination is not appealed or appealable for any reason whatsoever, the provision in question will not be deemed to affect or impair the validity or enforceability of any other provision of this Agreement and such invalid or unenforceable provision or portion thereof will be severed from this Agreement.

In the event that the minimum standards set out in the ESA are more favourable to you than a term or provision provided for in this Agreement, including, without limitation, the terms set out in the "Termination" section above, then the provisions of the ESA will apply in respect of that term or provision.

By signing this Agreement, you represent and warrant that you are, or by your Effective Date will be, lawfully entitled to work in Canada.

You acknowledge that you have been afforded an opportunity to obtain independent legal advice with respect to this Agreement and its terms, and are executing it freely, voluntarily and without duress.

Please indicate your formal acceptance by signing this Agreement. This letter, together with the IMAX Employee Confidentiality, Non-Competition, and Intellectual Property Agreement, contains the entire agreement between you and the Company and cancels and supersedes any and all prior understandings, negotiations, written and/or oral agreements. Please note that it is the Company's policy that an employee may not commence work prior to signing this Agreement.

We look forward to welcoming you to our IMAX team. Sincerely,

/s/ Michele Golden

Michele Golden, Global Chief People Officer

**I accept the above offer of employment as written.**

/s/ Jose Zlatar

Jose Zlatar

![image_0b.jpg](image_0b.jpg)March 14, 2025

Date

## Exhibit 10.2

**Exhibit 10.2**

![image_0a.jpg](image_0a.jpg)![image_1.jpg](image_1.jpg)

**CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. [\*\*\*] INDICATES THAT INFORMATION HAS BEEN REDACTED.**

January 12, 2024

*Strictly Private & Confidential*

Anne Globe

**[\*\*\*]** 

Dear Anne,

We are excited about the prospect of your joining us at IMAX. The terms and conditions of your employment offer are summarized below:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;Title: | &nbsp;&nbsp;&nbsp;&nbsp;Chief Marketing Officer and Executive Vice President. You will be the most senior marketing officer in the Company. |
| &nbsp;&nbsp;&nbsp;&nbsp;Reporting to: | &nbsp;&nbsp;&nbsp;&nbsp;Rich Gelfond, Chief Executive Officer, with anticipated dotted line reporting to the Head of Content that the Company plans to hire. |
| &nbsp;&nbsp;&nbsp;&nbsp;Start Date: | &nbsp;&nbsp;&nbsp;&nbsp;January 29, 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;Salary: | &nbsp;&nbsp;&nbsp;&nbsp;Your annual base salary will be $725,000, less applicable withholding taxes. |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonus: | &nbsp;&nbsp;&nbsp;&nbsp;You will be eligible to participate in the IMAX performance bonus program. Calculation of this bonus is based on both Company performance and personal performance. Your target annual bonus will be 50% of your then current base salary. Any bonus payment shall be at the discretion of the Company, and eligibility is subject to employment on the day of payment. Payment will be made at the same time bonuses are paid to other Company employees, generally in March. In the event that you become a named executive officer ("NEO") of the Company in the future, the Compensation Committee of the Board of Directors annually establishes non-discretionary criteria used to calculate 50% of the annual bonus of NEOs. |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefits: | &nbsp;&nbsp;&nbsp;&nbsp;You will be eligible to participate in the Company's benefit plans consistent with benefits given to senior executives at the Company, including entitlement to a Personal Spending (Wellness) Allowance reimbursement of up to $2,500 per year, which is a taxable benefit. Air travel and accommodations will be commensurate with the arrangements of other senior executives, pursuant to the Company's Travel & Expense Policy. |
| &nbsp;&nbsp;&nbsp;&nbsp;Vacation: | &nbsp;&nbsp;&nbsp;&nbsp;You will be entitled to receive vacation time of twenty (20) work days per year, subject to proration based on partial years of service. |

---

1

------

**Exhibit 10.2**

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;LTIP: | &nbsp;&nbsp;&nbsp;&nbsp;You will be eligible to participate in the Company's Second Amended and Restated Long-Term Incentive Plan, as may be amended from time to time and as administered by the Compensation Committee. Grants are made on a discretionary basis annually, generally in March, commencing in 2024.<br>Your target annual grant will be $825,000, in the mix of equity vehicles (currently restricted share units ("RSUs") and performance stock units ("PSUs")) and on a vesting schedule consistent with grants given to senior executives at the Company. The annual grants for executives other than NEOs currently consist of 75% RSUs and 25% PSUs. The annual grants for NEOs currently consist of 50% RSUs and 50% PSUs. You must be employed by the Company on the grant date to receive a grant. |
| &nbsp;&nbsp;&nbsp;&nbsp;Location: | &nbsp;&nbsp;&nbsp;&nbsp;You will be based in the Company's Playa Vista offices, with travel to the Company's other domestic and international offices and additional locations as reasonably required by the performance of your duties and the business of the Company. If any long-term travel is planned, you and the Company will agree in advance on a schedule. You will have office accommodations similar to those of other senior executives in Playa Vista. |
| &nbsp;&nbsp;&nbsp;&nbsp;Car Allowance: | &nbsp;&nbsp;&nbsp;&nbsp;You will receive a car allowance in the annualized amount of $13,200, paid with your regular pay on a semi-monthly basis as taxable income. Additionally, you may expense and be reimbursed for car-related expenses such as gasoline, maintenance, and insurance costs up to an annual maximum of $11,800. |
| &nbsp;&nbsp;&nbsp;&nbsp;Employment at-will: | &nbsp;&nbsp;&nbsp;&nbsp;Your employment with IMAX will be at-will, such that the employment relationship may be terminated at any time, with or without notice or cause, by you or by the Company. You agree to provide the Company with written notice of at least 30 days before resigning. If the Company terminates your employment without cause, you will receive severance pay equal to one month of base salary and target bonus for every year of service (pro-rated for partial years); provided that the minimum severance period will be six months, and the maximum severance period will be twelve months. If you resign for Good Reason, as defined in the next sentence, you will receive the same severance pay as if you had been terminated without cause. "Good Reason" shall mean (a) a material reduction in your responsibilities, or (b) the Company requiring you to be permanently based at any office or location more than twenty (20) miles from Playa Vista; provided, however, that no such event shall constitute Good Reason unless you first give the Company written notice of your intention to resign your employment for Good Reason and the grounds for such resignation, and such grounds for resignation are not corrected by the Company within thirty (30) days of its receipt of such notice. |
| &nbsp;&nbsp;&nbsp;&nbsp;Background Check: | &nbsp;&nbsp;&nbsp;&nbsp;This offer is subject to the satisfactory completion of a background check, including a criminal record check, which you have authorized. |

---

This acknowledges we approve your prior commitment and unavailability to the Company for the period from and including February 7 through February 9, 2024. You will be required to review

2

------

**Exhibit 10.2**

and sign the IMAX Code of Business Conduct and Ethics, the IMAX Confidentiality, Conflict of Interest, and Intellectual Property Agreement, and the IMAX Anti-Bribery and Anti-Corruption policy prior to your start date. Additionally, you will be required to abide by all IMAX policies that pertain to your employment.

Please indicate your formal acceptance by signing this offer and returning it via email no later than January 12, 2024 to me at <u>mgolden@imax.com</u>.

**[remainder of page intentionally left blank]**

3

------

**Exhibit 10.2**

Anne, we look forward to having you join the team and hope that you find the opportunity with IMAX both challenging and rewarding.

Sincerely,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Michele Golden

Michele Golden

EVP & Chief People Officer

**I accept the above offer of employment as written.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**/s/ Anne Globe**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Anne Globe**

1/12/2024

![image_2.jpg](image_2.jpg)

Date

4

## Exhibit 10.3

**Exhibit 10.3**

![image_0c.jpg](image_0c.jpg)

**Amendment to Employment Terms**<br>

&nbsp;&nbsp;&nbsp;&nbsp;This agreement (this "Amendment") amends, effective as of June 1, 2025, the terms and conditions of your employment (the "Employment Terms") with IMAX Corporation (the "Company"). Except as otherwise expressly set forth below in this Amendment, all other Employment Terms with the Company will remain the same.

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company wishes to remove the provision of car allowances and car-related expense reimbursements in the Employment Terms (the "Car Allowance") and replace with a cash allowance as set forth herein.&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree to delete the Car Allowance in entirety and replace with the following:

---

| | |
|:---|:---|
| **Cash Allowance:** | The Company shall pay to you an annual cash allowance of $18,500 CAD, subject to applicable deductions and withholdings. You will be paid pursuant to IMAX's normal payroll practices. This Cash Allowance program may be amended by the Company in its sole discretion from time to time.<br>In case of any resignation or termination of your employment with the Company, the Company shall continue to provide the Cash Allowance to you until the end of the minimum notice of termination period, if any, required to be provided by the Employment Standards Act, 2000 (as may be amended from time to time). |
|  | The Company shall pay to you an annual cash allowance of $18,500 CAD, subject to applicable deductions and withholdings. You will be paid pursuant to IMAX's normal payroll practices. This Cash Allowance program may be amended by the Company in its sole discretion from time to time.<br>In case of any resignation or termination of your employment with the Company, the Company shall continue to provide the Cash Allowance to you until the end of the minimum notice of termination period, if any, required to be provided by the Employment Standards Act, 2000 (as may be amended from time to time). |

---

IN WITNESS WHEREOF, the undersigned have duly executed this Amendment as of May 20, 2025.

---

| | |
|:---|:---|
| **IMAX Corporation** | **Jose Zlatar** |
| <br>/s/ Michele Golden | |
| <br>/s/ Michele Golden | <br>/s/ Jose Zlatar |
| Name: Michele Golden | Name: Jose Zlatar |
| Title: EVP & Chief People Officer | Title: SVP, Finance & Controller |

---

**IMAX Corporation \| 2525 Speakman Drive, Mississauga, Ontario, L5K 1B1, Canada**

## Exhibit 10.4

**Exhibit 10.4**

![image_0c.jpg](image_0c.jpg)

**Amendment to Employment Terms**<br>

&nbsp;&nbsp;&nbsp;&nbsp;This agreement (this "Amendment") amends, effective as of June 1, 2025, the terms and conditions of your employment (the "Employment Terms") with IMAX Corporation (the "Company"). Except as otherwise expressly set forth below in this Amendment, all other Employment Terms with the Company will remain the same.

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company wishes to remove the provision of car allowances and car-related expense reimbursements in the Employment Terms (the "Car Allowance") and replace with a cash allowance as set forth herein.&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree to delete the Car Allowance in entirety and replace with the following:

---

| | |
|:---|:---|
| **Cash Allowance:** | The Company shall pay to you an annual cash allowance of $30,000 USD, subject to applicable deductions and withholdings. You will be paid pursuant to IMAX's normal payroll practices. This Cash Allowance program may be amended by the Company in its sole discretion from time to time. |
|  | The Company shall pay to you an annual cash allowance of $30,000 USD, subject to applicable deductions and withholdings. You will be paid pursuant to IMAX's normal payroll practices. This Cash Allowance program may be amended by the Company in its sole discretion from time to time. |

---

IN WITNESS WHEREOF, the undersigned have duly executed this Amendment as of May 20, 2025.

---

| | |
|:---|:---|
| **IMAX Corporation** | **Anne Globe** |
| <br>/s/ Michele Golden | |
| <br>/s/ Michele Golden | <br>/s/ Anne Globe |
| Name: Michele Golden | Name: Anne Globe |
| Title: EVP & Chief People Officer | Title: Chief Marketing Officer |

---

**IMAX Corporation \| 12582 West Millennium Drive, Los Angeles, CA 90094**

## Exhibit 10.5

**Exhibit 10.5**

![image_0c.jpg](image_0c.jpg)

**Amendment to Employment Terms**

![image_2a.jpg](image_2a.jpg)

This agreement (this "Amendment") amends, effective as of June 1, 2025, the terms and conditions of your employment agreement dated September 18, 2020, as amended on October 13, 2021 (the "Employment Agreement") with IMAX Corporation (the "Company"). Except as otherwise expressly set forth below in this Amendment, all other Employment Terms with the Company will remain the same.

WHEREAS, the Company wishes to remove the provision of car allowances and car-related expense reimbursements in the Employment Terms (the "Car Allowance") and replace with a cash allowance as set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree to delete the Car Allowance in entirety and replace with the following:

---

| | |
|:---|:---|
| **Cash Allowance:**  | &nbsp;&nbsp;&nbsp;&nbsp;The Company shall pay to you an annual cash allowance of $33,500 CAD, subject to applicable deductions and withholdings. You will be paid pursuant to IMAX's normal payroll practices. This Cash Allowance program may be amended by the Company in its sole discretion from time to time. |

---

IN WITNESS WHEREOF, the undersigned have duly executed this Amendment as of May

**20, 2025.**

---

| | |
|:---|:---|
| **IMAX Corporation** | **Mark Welton** |
| **/s/ Michele Golden** | **/s/ Mark Welton** |
| Name: Michele Golden<br>Title: EVP & Chief People Officer | Name: Mark Welton<br>Title: President, IMAX Global Theatres |

---

**IMAX Corporation** I 2525 Speakman Drive, Mississauga, Ontario, L5K 1B1, Canada<br>

## Exhibit 10.6

**Exhibit 10.6**

![image_0.jpg](image_0.jpg)

**Amendment to Employment Terms**

![image_2c.jpg](image_2c.jpg)

This agreement (this "Amendment") amends, effective as of June 1, 2025, the terms and conditions of your employment (the "Employment Terms") with IMAX Corporation (the "Company"). Except as otherwise expressly set forth below in this Amendment, all other Employment Terms with the Company will remain the same.

WHEREAS, the Company wishes to remove the provision of car allowances and car-related expense reimbursements in the Employment Terms (the "Car Allowance") and replace with a cash allowance as set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree to delete the Car Allowance in entirety and replace with the following:

---

| | |
|:---|:---|
| **Cash Allowance:**  | &nbsp;&nbsp;&nbsp;&nbsp;The Company shall pay to you an annual cash allowance of $33,500 CAD, subject to applicable deductions and withholdings. You will be paid pursuant to IMAX's normal payroll practices. This Cash Allowance program may be amended by the Company in its sole discretion from time to time. |

---

IN WITNESS WHEREOF, the undersigned have duly executed this Amendment as of May 20, 2025.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**IMAX Corporation** | **Natasha Fernandes** |
| &nbsp;&nbsp;**/s/ Michele Golden** | /s/ Natasha Fernandes |
| Name: Michele Golden<br>Title: EVP & Chief People Officer | Name: Natasha Fernandes<br>Title: EVP, Chief Financial Officer |

---

**IMAX Corporation \| 2525 Speakman Drive, Mississauga, Ontario, L5K 1B1, Canada**<br>

## Exhibit 31.1

**IMAX CORPORATION**

Exhibit 31.1

**Certification Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002**

I, Richard L. Gelfond, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 of the registrant, IMAX Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| Date: | July 24, 2025 | By: | /s/ Richard Gelfond |
|  |  | Name: | Richard Gelfond |
|  |  | Title: | Chief Executive Officer |

---

## Exhibit 31.2

**IMAX CORPORATION**

Exhibit 31.2

**Certification Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002**

I, Natasha Fernandes, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 of the registrant, IMAX Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| Date: | July 24, 2025 | By: | /s/ Natasha Fernandes |
|  |  | Name: | Natasha Fernandes |
|  |  | Title: | Chief Financial Officer & Executive Vice President |

---

## Exhibit 32.1

**IMAX CORPORATION**

Exhibit 32.1

**CERTIFICATIONS** 

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

**(Subsections (A) and (B) of Section 1350, Chapter 63 of Title 18, United States Code)**

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), I, Richard L. Gelfond, Chief Executive Officer & Director of IMAX Corporation, a Canadian corporation (the "Company"), hereby certify, to my knowledge, that:

The Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the "Form 10-Q") of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | | |
|:---|:---|:---|:---|
| Date: | July 24, 2025 | By: | /s/ Richard L. Gelfond |
|  |  | Name: | Richard L. Gelfond |
|  |  | Title: | Chief Executive Officer |

---

## Exhibit 32.2

**IMAX CORPORATION**

Exhibit 32.2

**CERTIFICATIONS** 

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

**(Subsections (A) and (B) of Section 1350, Chapter 63 of Title 18, United States Code)**

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), I, Natasha Fernandes, Chief Financial Officer of IMAX Corporation, a Canadian corporation (the "Company"), hereby certify, to my knowledge, that:

The Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the "Form 10-Q") of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

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|:---|:---|:---|:---|
| Date: | July 24, 2025 | By: | /s/ Natasha Fernandes |
|  |  | Name: | Natasha Fernandes |
|  |  | Title: | Chief Financial Officer & Executive Vice President |

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