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Financial Instruments
 9 Months Ended
Sep. 30, 2025
Investments, All Other Investments [Abstract]  
Financial Instruments 15. Financial Instruments
Financial Instruments

The Company’s cash is invested with various major financial institutions. The Company’s $143.1 million balance of cash and cash equivalents as of September 30, 2025 (December 31, 2024 — $100.6 million) included $129.8 million in cash held outside of Canada (December 31, 2024 — $85.4 million), of which $85.8 million was held in the 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:

As of September 30, 2025
As of December 31, 2024
(In thousands of U.S. Dollars)
Carrying Amount
Estimated Fair Value
Carrying Amount
Estimated Fair Value
Level 2
Net financed sales receivables(1)
$89,526 $85,181 $90,546 $81,876 
Net investment in sales-type leases(1)
29,418 26,201 29,339 25,322 
Convertible Notes(2)
(230,000)(267,920)(230,000)(234,009)
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(1)Fair value is determined using quoted prices in active markets.
(2)Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data.

Foreign Exchange Risk Management

The Company is exposed to market risk from changes in foreign currency rates.

A majority of the Company’s revenues are denominated in U.S. Dollars while a significant portion of its costs and expenses are 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 September 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.
The following tabular disclosures reflect the impact that derivative instruments and hedging activities have on the Company’s Condensed Consolidated Financial Statements:

Notional value of derivatives in foreign exchange contracts:

September 30,
December 31,
(In thousands of U.S. Dollars)
20252024
Derivatives designated as hedging instruments:
Foreign exchange contracts — Forwards
$48,713 $48,376 

Fair value of derivatives in foreign exchange contracts:

September 30,
December 31,
(In thousands of U.S. Dollars)
Balance Sheet Location
20252024
Derivatives designated as hedging instruments:
Foreign exchange contracts — Forwards
Other assets
$563 $— 
Accrued and other liabilities
(263)(2,029)
$300 $(2,029)

Derivatives in foreign currency hedging relationships are as follows:

Three Months Ended
Nine Months Ended
September 30,September 30,
(In thousands of U.S. Dollars)
2025202420252024
Foreign exchange contracts — Forwards
Derivative (Loss) Gain Recognized in OCI
(Effective Portion)
$(1,223)$337 $582 $(944)

Three Months Ended
Nine Months Ended
September 30,September 30,
(In thousands of U.S. Dollars)
Location of Derivative Loss
Reclassified from AOCI
(Effective Portion)
2025202420252024
Foreign exchange contracts — Forwards
Selling, general and
administrative expenses
$(120)$(162)$(1,747)$(240)

The Company’s estimated net amount of the existing gain as of September 30, 2025 is $0.3 million, which is expected to be reclassified to the Condensed Consolidated Statements of Operations within the next twelve months.