IMAX Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>IMAX Corporation has filed its 2023 annual report (10-K) detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

IMAX CORP (IMAX) filed a Annual Report (10-K) with the SEC on February 27, 2024. IMAX Corporation filed its 2023 Form 10-K on February 27, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is in Mississauga, Ontario, Canada. IMAX Corporation is classified under SIC code 3861 (Photographic Equipment & Supplies). The filing includes references to various accounting standards and segments, including Content Solutions, Image Enhancement, and Film Remastering.

Why It Matters

For investors and stakeholders tracking IMAX CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of IMAX's financial health, operational segments, and risk factors for investors and stakeholders. The detailed financial statements and disclosures within the report are crucial for understanding the company's performance, strategic direction, and potential future challenges.

Risk Assessment

Risk Level: — IMAX CORP shows moderate risk based on this filing. The company's business is subject to risks associated with the entertainment industry, including fluctuations in box office performance and the success of film releases, as indicated by the nature of its business segments and the need for detailed financial reporting.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to assess IMAX's performance and outlook for the upcoming fiscal year.

Key Players & Entities

• IMAX CORP (company) — FILER
• IMAX (company) — tk

FAQ

Industry Context

IMAX Corporation operates in the entertainment industry, focusing on immersive film experiences. Its business model involves technology, content, and theater systems.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including requirements for annual financial reporting and disclosures.

What Investors Should Do

1. Analyze revenue streams and segment performance detailed in the 10-K.
2. Evaluate the risk factors section for potential business challenges and mitigation strategies.
3. Compare key financial metrics to prior periods to identify trends and performance changes.

Year-Over-Year Comparison

This is the initial filing of the 2023 Form 10-K, providing the latest annual financial and operational data for IMAX Corporation.

Key Financial Figures

• $1.00 — of Canada for Canadian Dollars per U.S. $1.00. The average exchange rate is based on
• $0.7561 — ying Rate on December 31, 2023 was U.S. $0.7561. Years Ended December 31, 2023 20
• $180.4 million — sing year for local language films, the $180.4 million in IMAX box office generated by Christo

Filing Documents

• imax-20231231.htm (10-K) — 7407KB
• imax-ex10_24.htm (EX-10.24) — 33KB
• imax-ex21_1.htm (EX-21.1) — 69KB
• imax-ex23_1.htm (EX-23.1) — 5KB
• imax-ex24_1.htm (EX-24.1) — 51KB
• imax-ex31_1.htm (EX-31.1) — 17KB
• imax-ex31_2.htm (EX-31.2) — 19KB
• imax-ex32_1.htm (EX-32.1) — 7KB
• imax-ex32_2.htm (EX-32.2) — 8KB
• imax-ex97_1.htm (EX-97.1) — 21KB
• img81477360_0.jpg (GRAPHIC) — 202KB
• img81477360_1.jpg (GRAPHIC) — 38KB
• 0000950170-24-021327.txt (&nbsp;) — 35295KB
• imax-20231231.xsd (EX-101.SCH) — 3924KB
• imax-20231231_htm.xml (XML) — 8788KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 17 Item 1B. Unresolved Staff Comments 31 Item 1C. Cybersecurity 31 Item 2.

Properties

Properties 33 Item 3.

Legal Proceedings

Legal Proceedings 33 Item 4. Mine Safety Disclosures 33 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34 Item 6.

Selected Financial Data

Selected Financial Data 36 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 64 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 66 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 138 Item 9A.

Controls and Procedures

Controls and Procedures 138 Item 9B. Other Information 138 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 138 PART III Item 10. Directors, Executive Officers and Corporate Governance 139 Item 11.

Executive Compensation

Executive Compensation 139 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 139 Item 13. Certain Relationships and Related Transactions, and Director Independence 139 Item 14. Principal Accounting Fees and Services 139 PART IV Item 15. Exhibits, Financial Statement Schedules 139 Item 16. Form 10-K Summary 142

Signatures

Signatures 143 2 IMAX CORPORATION EXCHANGE RATE DATA Unless otherwise indicated, all dollar amounts in this document are expressed in United States ("U.S.") Dollars. The following table sets forth, for the periods indicated, certain exchange rates based on the noon buying rate in the City of New York for cable transfers in foreign currencies as certified for customs purposes by the Bank of Canada (the "Noon Buying Rate"). Such rates quoted are the number of U.S. Dollars per one Canadian Dollar and are the inverse of rates quoted by the Bank of Canada for Canadian Dollars per U.S. $1.00. The average exchange rate is based on the average of the exchange rates on the last day of each month during such periods. The Noon Buying Rate on December 31, 2023 was U.S. $0.7561. Years Ended December 31, 2023 2022 2021 2020 2019 Exchange rate at end of period 0.7561 0.7383 0.7888 0.7854 0.7699 Average exchange rate during period 0.7409 0.7685 0.7977 0.7455 0.7536 High exchange rate during period 0.7617 0.8031 0.8306 0.7863 0.7699 Low exchange rate during period 0.7207 0.7217 0.7727 0.6898 0.7353 SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION Certain statements included in this annual report may constitute "forward-looking statements" within the meaning of the U.S. States Private Securities Litigation Reform Act of 1995 or "forward-looking information" within the meaning of Canadian securities laws. These forward-looking statements include, but are not limited to, references to business and technology strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of business, operations and technology, future capital expenditures (including the amount and nature thereof), industry prospects and consumer behavior, plans and references to the future success of the Company and expectations regarding its future operating, financial and technological results. These forward

Business

Item 1. Business IMAX Corporation, together with its consolidated subsidiaries (the "Company" or "IMAX") is a Canadian corporation that was formed in March 1994 as a result of an amalgamation between WGIM Acquisition Corp. and the former IMAX Corporation ("Predecessor IMAX"). Predecessor IMAX was incorporated in 1967. As of December 31, 2023, the Company indirectly owns 71.55% of IMAX China Holding, Inc. ("IMAX China"), whose shares trade on the Hong Kong Stock Exchange. IMAX China is a consolidated subsidiary of the Company. GENERAL IMAX is a premier global technology platform for entertainment and events. Through its proprietary software, auditorium, architecture, patented intellectual property, and specialized equipment, IMAX offers a unique end-to-end solution to create superior, awe-inspiring immersive content experiences for which the IMAX brand is globally renowned. Top filmmakers, movie studios, artists, and creators utilize the cutting-edge visual and sound technology of IMAX to connect with audiences in innovative ways. As a result, IMAX is among the most important and successful global distribution platforms. The Company leverages its proprietary technology and engineering in all aspects of its business, which principally consists of the IMAX film remastering ("IMAX Film Remastering" and formerly known as "IMAX DMR") and the sale or lease of premium IMAX theater systems ("IMAX System(s)"). IMAX Systems are based on proprietary and patented image, audio and other technology developed over the course of the Company's history since its founding in 1967. The customers for IMAX Systems are principally theatrical exhibitors that operate commercial multiplex theaters, and, to a much lesser extent, museums, science centers and destination entertainment sites. The Company does not own the locations in the IMAX network, except for one, and is not an exhibitor, but instead sells or leases the IMAX System to exhibitor customers along with a license to use