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Condensed Consolidated Statements of Operations - Supplemental Information
 9 Months Ended
Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Consolidated Statements of Operations - Supplemental Information
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 nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,
20252024
(In thousands of U.S. Dollars)
Sales
Commissions		Marketing
and Other
Sales
Commissions
Marketing
and Other
Technology sales(1)
$364 $234 $258 $139 
Image enhancement and maintenance services(2)
— 4,218 — 5,172 
Technology rentals(3)
233 276 128 811 
Total$597 $4,728 $386 $6,122 
Image_1.jpg
(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 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.
Nine Months Ended September 30,
20252024
(In thousands of U.S. Dollars)
Sales
Commissions		Marketing
and Other
Sales
Commissions
Marketing
and Other
Technology sales(1)
$762 $361 $684 $485 
Image enhancement and maintenance services(2)
— 10,068 — 11,848 
Technology rentals(3)
490 1,276 378 1,811 
Total$1,252 $11,705 $1,062 $14,144 
Image_1.jpg
(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 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.
Foreign Exchange

Included in Selling, General and Administrative Expenses for the three and nine months ended September 30, 2025 is a foreign currency net loss of $0.2 million and loss of $0.4 million, respectively (2024 — net losses of $0.3 million and $0.8 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 nine months ended September 30, 2025, the Company recognized $0.1 million and $4.0 million in benefits received from the Internal Revenue Service under the Employee Retention Credit (“ERC”) program which provides for a refundable tax credit for eligible businesses that had employees and were affected during the COVID-19 pandemic. During the nine months ended September 30, 2025, the ERC was recognized as a reduction to Selling, General and Administrative Expenses ($2.7 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 is recorded within Revenues — Technology Sales (for hybrid JRSAs) and Revenues — Technology Rentals (for traditional JRSAs). For the three and nine months ended September 30, 2025, such revenues totaled $23.0 million and $60.9 million, respectively (2024 — $15.9 million and $48.4 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 is included in Revenues – Image Enhancement and Maintenance Services. For the three and nine months ended September 30, 2025, such revenues totaled $41.9 million and $105.7 million, respectively (2024 — $26.7 million and $77.7 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 September 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 nine months ended September 30, 2025, expenses of $0.2 million and $0.3 million, respectively (2024 — $0.2 million and $3.2 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.