The ability of the Company to collect its receivables is principally dependent on the viability and solvency of individual theater operators which is significantly influenced by consumer behavior and general economic conditions. Theater operators, or other customers, may experience financial difficulties that could result in them being unable to fulfill their payment obligations to the Company.

In order to mitigate the credit risk associated with the Company’s receivables, management performs an initial credit evaluation prior to entering into an arrangement with a customer and then regularly monitors the credit quality of each customer through an

analysis of collections history and aging. This monitoring process includes meetings on at least a monthly basis to identify credit concerns and potential changes in credit quality classification. A customer may improve their credit quality classification once a substantial payment is made on an overdue balance or when the customer has agreed to a payment plan and payments have commenced in accordance with that plan. Changes in credit quality classification are dependent upon management approval. The Company’s internal credit quality classifications are 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.

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 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.


	Three Months Ended								Nine Months Ended
	September 30, 2025								September 30, 2025
(In thousands of U.S. Dollars)	Theater Operators		Studios		Other		Total		Theater Operators		Studios		Other		Total
Beginning balance	$	11,568	$	1,277	$	429	$	13,274	$	11,678	$	1,017	$	583	$	13,278
Current period provision (reversal), net	545		(186)		54		413		512		336		(100)		748
Write-offs, net of recoveries	(65)		(62)		—		(127)		(79)		(324)		—		(403)
Foreign exchange	(23)		—		—		(23)		(86)		—		—		(86)
Ending balance	$	12,025	$	1,029	$	483	$	13,537	$	12,025	$	1,029	$	483	$	13,537


	Three Months Ended								Nine Months Ended
	September 30, 2024								September 30, 2024
(In thousands of U.S. Dollars)	Theater Operators		Studios		Other		Total		Theater Operators		Studios		Other		Total
Beginning balance	$	14,095	$	651	$	1,080	$	15,826	$	14,355	$	616	$	1,006	$	15,977
Current period (reversal) provision, net	(2,079)		600		(13)		(1,492)		(2,120)		638		61		(1,421)
Write-offs, net of recoveries	—		—		—		—		(178)		(3)		—		(181)
Foreign exchange	118		—		—		118		77		—		—		77
Ending balance	$	12,134	$	1,251	$	1,067	$	14,452	$	12,134	$	1,251	$	1,067	$	14,452

For the three and nine months ended September 30, 2025, the Company’s allowance for current expected credit losses related to Accounts Receivable increased by $0.3 million and $0.3 million, respectively (2024 — decreased by $1.4 million and $1.5 million, respectively).

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


	September 30,		December 31,
(In thousands of U.S. Dollars)	2025		2024
Net investment in leases:
Gross minimum payments due under sales-type leases	$	30,931	$	30,890
Unearned finance income	(1,057)		(887)
Present value of minimum payments due under sales-type leases	29,874		30,003
Allowance for credit losses	(456)		(664)
Net investment in leases	29,418		29,339
Financed sales receivables:
Gross minimum payments due under financed sales	124,797		127,906
Unearned finance income	(25,378)		(27,199)
Present value of minimum payments due under financed sales	99,419		100,707
Allowance for credit losses	(9,893)		(10,161)
Net financed sales receivables	89,526		90,546
Total financing receivables	$	118,944	$	119,885

Net financed sales receivables due within one year	$	28,459	$	30,136
Net financed sales receivables due after one year	61,067		60,410
Total financed sales receivables	$	89,526	$	90,546

As of September 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:


	September 30,		December 31,
(In thousands of U.S. Dollars)	2025		2024
Weighted-average remaining lease term (in years):
Sales-type lease arrangements	8.3		8.5
Weighted-average interest rate
Sales-type lease arrangements	7.24	%	7.24	%
Financed sales receivables	8.85	%	8.95	%

The tables below provide information on the Company’s net investment in leases by credit quality indicator as of September 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.


(In thousands of U.S. Dollars)	By Origination Year
As of September 30, 2025	2025		2024		2023		2022		2021		Prior		Total
Net investment in leases:
Credit quality classification:
In good standing	$	1,819	$	3,383	$	2,968	$	2,906	$	8,565	$	9,832	$	29,473
Credit Watch	—		—		—		—		—		—		—
Pre-approved transactions	—		—		—		—		—		—		—
Transactions suspended	—		—		—		—		—		401		401
Total net investment in leases	$	1,819	$	3,383	$	2,968	$	2,906	$	8,565	$	10,233	$	29,874


(In thousands of U.S. Dollars)	By Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Total
Net investment in leases:
Credit quality classification:
In good standing	$	3,469	$	3,190	$	3,057	$	6,625	$	1,963	$	1,931	$	20,235
Credit Watch	—		—		—		—		—		—		—
Pre-approved transactions	—		—		—		2,800		1,477		4,664		8,941
Transactions suspended	—		—		426		—		—		401		827
Total net investment in leases	$	3,469	$	3,190	$	3,483	$	9,425	$	3,440	$	6,996	$	30,003

The tables below provide information on the Company’s financed sales receivables by credit quality indicator as of September 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.


(In thousands of U.S. Dollars)	By Origination Year
As of September 30, 2025	2025		2024		2023		2022		2021		Prior		Total
Financed sales receivables:
Credit quality classification:
In good standing	$	6,130	$	6,476	$	7,570	$	5,018	$	5,172	$	39,351	$	69,717
Credit Watch	—		—		—		—		—		368		368
Pre-approved transactions	—		612		1,063		—		3,313		9,206		14,194
Transactions suspended	—		—		—		525		503		14,112		15,140
Total financed sales receivables	$	6,130	$	7,088	$	8,633	$	5,543	$	8,988	$	63,037	$	99,419


(In thousands of U.S. Dollars)	By Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Total
Financed sales receivables:
Credit quality classification:
In good standing	$	6,217	$	7,249	$	5,980	$	6,152	$	4,974	$	41,570	$	72,142
Credit Watch	—		—		—		—		—		567		567
Pre-approved transactions	411		779		298		3,468		1,899		8,132		14,987
Transactions suspended	—		—		—		114		143		12,754		13,011
Total financed sales receivables	$	6,628	$	8,028	$	6,278	$	9,734	$	7,016	$	63,023	$	100,707


	As of September 30, 2025
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Recorded Receivable		Allowance for Credit Losses		Net
Net investment in leases	$	242	$	183	$	2,613	$	3,038	$	26,836	$	29,874	$	(456)	$	29,418
Financed sales receivables	1,341		1,425		11,429		14,195		85,224		99,419		(9,893)		89,526
Total	$	1,583	$	1,608	$	14,042	$	17,233	$	112,060	$	129,293	$	(10,349)	$	118,944


	As of December 31, 2024
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Recorded Receivable		Allowance for Credit Losses		Net
Net investment in leases	$	222	$	218	$	3,185	$	3,625	$	26,378	$	30,003	$	(664)	$	29,339
Financed sales receivables	895		1,019		12,462		14,376		86,331		100,707		(10,161)		90,546
Total	$	1,117	$	1,237	$	15,647	$	18,001	$	112,709	$	130,710	$	(10,825)	$	119,885

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


	As of September 30, 2025
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Allowance for Credit Losses		Net
Net investment in leases	$	223	$	183	$	2,613	$	3,019	$	17,929	$	(6)	$	20,942
Financed sales receivables	744		1,035		8,606		10,385		31,886		(1,176)		41,095
Total	$	967	$	1,218	$	11,219	$	13,404	$	49,815	$	(1,182)	$	62,037


	As of December 31, 2024
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Allowance for Credit Losses		Net
Net investment in leases	$	222	$	218	$	3,185	$	3,625	$	20,176	$	(6)	$	23,795
Financed sales receivables	727		610		10,143		11,480		42,208		(1,086)		52,602
Total	$	949	$	828	$	13,328	$	15,105	$	62,384	$	(1,092)	$	76,397

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


	As of September 30, 2025						As of December 31, 2024
(In thousands of U.S. Dollars)	Recorded Receivable		Allowance for Credit Losses		Net		Recorded Receivable		Allowance for Credit Losses		Net
Net investment in leases	$	401	$	(401)	$	—	$	827	$	(614)	$	213
Net financed sales receivables	29,702		(9,242)		20,460		28,565		(8,317)		20,248
Total	$	30,103	$	(9,643)	$	20,460	$	29,392	$	(8,931)	$	20,461

For the three and nine months ended September 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 nine months ended September 30, 2025, the Company recognized $0.1 million and $0.2 million, respectively (2024 — $0.4 million and $1.0 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 nine months ended September 30, 2025 and 2024:


	Three Months Ended				Nine Months Ended
	September 30, 2025				September 30, 2025
(In thousands of U.S. Dollars)	Net Investment in Leases		Net Financed Sales Receivables		Net Investment in Leases		Net Financed Sales Receivables
Beginning balance	$	454	$	9,819	$	664	$	10,161
Current period provision (reversal), net	2		83		(208)		(263)
Foreign exchange	—		(9)		—		(5)
Ending balance	$	456	$	9,893	$	456	$	9,893


	Three Months Ended				Nine Months Ended
	September 30, 2024				September 30, 2024
(In thousands of U.S. Dollars)	Net Investment in Leases		Net Financed Sales Receivables		Net Investment in Leases		Net Financed Sales Receivables
Beginning balance	$	450	$	9,625	$	453	$	9,617
Current period provision (reversal), net	67		(148)		70		(135)
Foreign exchange	—		27		(6)		22
Ending balance	$	517	$	9,504	$	517	$	9,504

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

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

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 nine months ended September 30, 2025 and 2024:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
(In thousands of U.S. Dollars)	Theater Operators		Theater Operators		Theater Operators		Theater Operators
Beginning balance	$	120	$	677	$	116	$	633
Current period provision, net	—		116		4		160
Foreign exchange	—		3		—		3
Ending balance	$	120	$	796	$	120	$	796

For the three and nine months ended September 30, 2025, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables did not change and increased by less than $0.1 million, respectively (2024 — increased by $0.1 million and $0.2 million respectively).