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Capital Stock and Reserves (Tables)

3 Months Ended

Mar. 31, 2023

For the three months ended March 31, 2023, share-based compensation expense totaled $5.1 million (2022 — $6.1 million) and is reflected in the following accounts in the Condensed Consolidated Statements of Operations:


	Three Months Ended
	March 31,
(In thousands of U.S. Dollars)	2023			2022
Costs and expenses applicable to revenues	$	263		$	239
Selling, general and administrative expenses		5,196			5,726
Research and development		99			87
Executive transition costs		(499	)		—
	$	5,059		$	6,052

Stock-based Compensation by Plan Type

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


	Three Months Ended
	March 31,
(In thousands of U.S. Dollars)	2023		2022
Stock Options	$	84	$	207
Restricted Share Units		3,365		3,411
Performance Stock Units		924		1,729
IMAX China Stock Options		10		34
IMAX China Long Term Incentive Plan Restricted Share Units		541		497
IMAX China Long Term Incentive Plan Performance Stock Units		135		174
	$	5,059	$	6,052

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes the activity under the Company’s Stock Option Plan (“SOP”) and the IMAX Corporation Second Amended and Restated Long-Term Incentive Plan (as may be amended, “IMAX LTIP”) for the three months ended March 31, 2023 and 2022:


	Number of Shares							Weighted Average Exercise Price Per Share
	2023			2022			2023			2022
Stock options outstanding, beginning of period		3,604,739			3,736,157		$		26.36	$	26.61
Granted		—			—				—		—
Exercised		—			—				—		—
Forfeited		—			—				—		—
Expired		(144,366	)		(126,569	)			31.85		33.61
Cancelled		—			(2,197	)			—		32.50
Stock options outstanding, end of period		3,460,373			3,607,391				26.13		26.36
Stock options exercisable, end of period		3,460,373			3,524,298				26.13		26.45

Restricted Stock Units Activity under the IMAX LTIP

The following table summarizes the activity in respect of RSUs issued under the IMAX LTIP for the three months ended March 31, 2023 and 2022:


	Number of Awards						Weighted Average Grant Date Fair Value Per Share
	2023			2022				2023			2022
RSUs outstanding, beginning of period		1,252,044			1,457,883		$		19.16	$		19.16
Granted		811,529			636,427				17.73			19.64
Vested and settled		(677,611	)		(648,527	)			18.70			18.78
Forfeited		(19,509	)		(1,328	)			19.80			14.84
RSUs outstanding, end of period		1,366,453			1,444,455				18.53			19.54

IMAX LTIP

Performance Stock Units Activity under the IMAX LTIP

The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the three months ended March 31, 2023 and 2022:


	Number of Awards					Weighted Average Grant Date Fair Value Per Share
	2023			2022			2023			2022
PSUs outstanding, beginning of period		931,716			613,405	$		18.96	$		18.21
Granted(1)		580,118			359,138			17.68			20.34
Forfeited		(208,648	)		—			18.09			—
Vested and settled(1)		(368,602	)		—			16.92			—
PSUs outstanding, end of period		934,584			972,543			19.16			19.00

(1)

For the three months ended March 31, 2023, the balance of shares granted includes 157,963 additional shares, at a weighted average grant date fair value per share of $16.92, as PSUs granted in 2020 with EBITDA-based targets vested at 175% on account of full achievement of the targets. This performance adjustment in the first quarter of 2023 reflects the Company's performance assessment of its first PSU awards.

Basic and Diluted Per-share Computations

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


	Three Months Ended
	March 31,
	2023			2022
(In thousands)
Issued and outstanding, beginning of period		54,149			58,654
Weighted average number of shares repurchased, net		(85	)		(80	)
Weighted average number of shares outstanding - basic		54,064			58,574
Weighted average effect of potential common shares, if dilutive		927			—
Weighted average number of shares outstanding - diluted		54,991			58,574