Condensed Consolidated Statements of Operations Supplemental Information (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Selling Expenses, Including Sales Commissions and Marketing and Other 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 three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30,
	2023				2022
(In thousands of U.S. Dollars)	Sales Commissions		Marketing and Other		Sales Commissions			Marketing and Other
Technology sales(1)	$	360	$	167	$	47		$	38
Image enhancement and maintenance services(2)		—		3,572		—			4,850
Technology rentals(3)		36		450		(334	)		265
Total	$	396	$	4,189	$	(287	)	$	5,153
	Six Months Ended June 30,
	2023				2022
(In thousands of U.S. Dollars)	Sales Commissions		Marketing and Other		Sales Commissions			Marketing and Other
Technology sales(1)	$	560	$	183	$	47		$	200
Image enhancement and maintenance services(2)		—		10,344		—			7,765
Technology rentals(3)		109		710		(289	)		730
Total	$	669	$	11,237	$	(242	)	$	8,695

(1)Sales commissions paid prior to the recognition of the related revenue are deferred and recognized upon the client acceptance of the IMAX System. Direct advertising and marketing costs for each IMAX System are expensed as incurred.

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

(3)Sales commissions related to joint revenue sharing arrangements accounted for operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed, and are subject to subsequent performance-based adjustments. In the second quarter of 2022, a $0.3 million reversal of accrued commissions was recorded due to such performance-based adjustments. Direct advertising and marketing costs for each IMAX System are expensed as incurred.