IMAX CORP Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) – Marketscreener.com | Episode Movies

Presented below is Management's Discussion and Analysis of Financial Condition
and Results of Operations (or "MD&A") for IMAX Corporation and its consolidated
subsidiaries ("IMAX" or the "Company") for the three and nine months ended
September 30, 2022 and 2021. MD&A should be read in conjunction with Note 15,
"Segment Reporting," in the accompanying Condensed Consolidated Financial
Statements in Item 1.

As of September 30, 2022, the Company indirectly owns 71.41% 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. For the three
months ended September 30, 2022, net income attributable to IMAX China is $4.2
million, of which $3.0 million is attributable to the shareholders of the
Company (2021 - $6.7 million and $4.7 million, respectively).

SPECIAL NOTICE REGARDING FORWARD-LOOKING INFORMATION


Certain statements included in this quarterly report may constitute
"forward-looking statements" within the meaning of the United 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-looking statements are based on certain assumptions and
analyses made by the Company in light of its experience and its perception of
historical trends, current conditions and expected future developments, as well
as other factors it believes are appropriate in the circumstances. However,
whether actual results and developments will conform with the expectations and
predictions of the Company is subject to a number of risks and uncertainties,
including, but not limited to, risks related to the adverse impact of the
COVID-19 pandemic; risks associated with investments and operations in foreign
jurisdictions and any future international expansion, including those related to
economic, political and regulatory policies of local governments and laws and
policies of the United States and Canada, as well as geopolitical conflicts,
such as the conflict between Russia and Ukraine; risks related to the Company's
growth and operations in China; the performance of IMAX DMR® films; the signing
of theater system agreements; conditions, changes and developments in the
commercial exhibition industry; risks related to currency fluctuations; the
potential impact of increased competition in the markets within which the
Company operates, including competitive actions by other companies; the failure
to respond to change and advancements in digital technology; risks relating to
consolidation among commercial exhibitors and studios; risks related to brand
extensions and new business initiatives; conditions in the in-home and
out-of-home entertainment industries; the opportunities (or lack thereof) that
may be presented to and pursued by the Company; risks related to cyber-security
and data privacy; risks related to the Company's inability to protect its
intellectual property; risks related to climate change; risks related to weather
conditions and natural disasters that may disrupt or harm the Company's
business; risks related to the Company's indebtedness and compliance with its
debt agreements; general economic, market or business conditions; risks related
to political, economic and social instability, including with respect to the
Russia-Ukraine conflict; the failure to convert theater system backlog into
revenue; changes in laws or regulations; any statements of belief and any
statements of assumptions underlying any of the foregoing; other factors and
risks outlined in the Company's periodic filings with the United States
Securities and Exchange Commission (the "SEC") or in Canada, the System for
Electronic Document Analysis and Retrieval (the "SEDAR"); and other factors,
many of which are beyond the control of the Company. Consequently, all of the
forward-looking statements made in this quarterly report are qualified by these
cautionary statements, and actual results or anticipated developments by the
Company may not be realized, and even if substantially realized, may not have
the expected consequences to, or effects on, the Company. The forward-looking
statements herein are made only as of the date hereof and the Company undertakes
no obligation to update publicly or otherwise revise any forward-looking
statements, whether as a result of new information, future events or otherwise.

The Company makes available, free of charge, its Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and any
amendments to such reports, as soon as reasonably practicable after such filings
have been made with the SEC and Canadian securities regulators. Reports may be
obtained free of charge through the SEC's website at www.sec.gov or the SEDAR's
website at www.sedar.com and through the Company's website at www.imax.com or by
calling the Company's Investor Relations Department at 212-821-0100. No
information included on the Company's website shall be deemed included or
otherwise incorporated into this filing, except where expressly indicated.

IMAX®, IMAX® Dome, IMAX® 3D, IMAX® 3D Dome, Experience It In IMAX®, The IMAX
Experience®, An IMAX Experience®, An IMAX 3D Experience®, IMAX DMR®, DMR®,
Filmed For IMAXTM, IMAX LiveTM, IMAX Enhanced®, IMAX nXos®, Films to the
Fullest®, SSIMWAVE®, SSIMPLUS® and Viewer Score® are trademarks and trade names
of the Company or its subsidiaries that are registered or otherwise protected
under laws of various jurisdictions.

                                       49
--------------------------------------------------------------------------------

Information published on the Company’s corporate and investor relations websites may be considered material to investors. Accordingly, investors, the media and others interested in the Company should follow the Company’s websites in addition to the Company’s press releases. SEC and SEDAR filings, and public conference calls and webcasts.

OVERVIEW


IMAX is a premier global technology platform for entertainment and events.
Through its proprietary software, theater architecture, patented intellectual
property, and specialized equipment, IMAX offers a unique end-to-end solution to
create superior, 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 for domestic and international tentpole films and,
increasingly, exclusive experiences ranging from live performances to
interactive events with leading artists and creators.

The Company leverages its proprietary technology and engineering in all aspects
of its business, which principally consists of the digital remastering of films
and other content into the IMAX format ("IMAX DMR"®) and the sale or lease of
premium IMAX theater systems ("IMAX Theater Systems").

IMAX Theater 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 1968. The customers for IMAX Theater Systems are principally theater
exhibitors that operate commercial multiplex theaters, and, to a much lesser
extent, museums, science centers, and destination entertainment sites. The
Company generally does not own the theaters in the IMAX network and is not an
exhibitor, but instead sells or leases the IMAX Theater System to exhibitor
customers along with a license to use its trademarks.

As of September 30, 2022, there were 1,703 IMAX Theater Systems in 87 countries
and territories, including 1,622 commercial multiplexes, 12 commercial
destinations, and 69 institutional locations in the Company's global theater
network. This compares to 1,664 IMAX Theater Systems in 85 countries and
territories as of September 30, 2021, including 1,580 commercial multiplexes, 12
commercial destinations, and 72 institutional locations in the Company's global
theater network. (See the table below under "IMAX Network and Backlog" for
additional information on the composition of the IMAX network.)

The IMAX theater system offers the company’s exhibitor customers a combination of the following benefits:

the ability to show content that has undergone the IMAX DMR conversion process, resulting in higher image and audio fidelity than traditional cinema experiences;

advanced, high definition projectors with specialized equipment and automated theater control systems that produce significantly more contrast and brightness than traditional theater systems;

large screens and proprietary theatrical geometry resulting in a substantially larger field of view, allowing the screen to extend to the edge of a viewer’s peripheral field of vision, creating more realistic images;

advanced sound system components that deliver more expansive sound imaging and pinpoint sound delivery at any specific location in an IMAX theater;

special theater acoustics, resulting in a fourfold reduction in background noise; and

a license for the globally recognized brand IMAX.

                                       50
--------------------------------------------------------------------------------


In addition, certain movies shown in IMAX theaters are filmed using proprietary
IMAX film cameras or IMAX certified digital cameras, which offer filmmakers
customized guidance and a workflow process to provide further enhanced and
differentiated image quality and an IMAX-exclusive film aspect ratio that
delivers up to 26% more image onto a standard IMAX movie screen. In select IMAX
theaters worldwide, movies filmed with IMAX cameras have an IMAX-exclusive 1.43
film aspect ratio, with up to 67% more image.

Together, these components ensure that viewers in IMAX theaters feel part of what is happening on screen, creating a more intense, immersive and exciting experience than in a traditional theater.


As a result of the engineering and scientific achievements that are a hallmark
of The IMAX Experience, the Company's exhibitor customers typically charge a
premium for IMAX films over films exhibited in their other auditoriums. The
premium pricing, combined with the higher attendance levels associated with IMAX
films, generates incremental box office for the Company's exhibitor customers
and for the movie studios releasing their films to the IMAX network. The
incremental box office generated by IMAX films has helped establish IMAX as a
key premium distribution and marketing platform for Hollywood and foreign local
language movie studios.

As a premier global technology platform for entertainment and events, the
Company strives to remain at the forefront of advancements in cinema technology.
The Company offers a suite of IMAX Laser Theater Systems, which deliver
increased resolution, sharper and brighter images, deeper contrast, and the
widest range of colors available to filmmakers today. The Company further
believes that its suite of IMAX Laser Theater Systems are helping facilitate the
next major renewal and upgrade cycle for the global IMAX network.

In addition, the Company continues to evolve its platform to bring new,
innovative IMAX LiveTM events and experiences to audiences worldwide. The
Company has a connected IMAX theater footprint capable of delivering live,
interactive content with low latency and superior sight and sound. As of
September 30, 2022, 176 theaters in the IMAX network across the United States,
Canada, and Europe were configured to enable the streaming of live events. The
Company expects to have 250 connected IMAX theaters available for distributing
IMAX Live events by the end of 2022.

In September 2022, the Company acquired SSIMWAVE Inc. ("SSIMWAVE"), a leader in
AI-driven video quality solutions for media and entertainment companies. The
acquisition of SSIMWAVE marks a significant expansion of the Company's strategy
to deliver the highest quality video images on any screen - to drive new,
recurring revenue and grow its global leadership in entertainment technology.
(See "SSIMWAVE" under "Sources of Revenue - All Other" and Note 4 of Notes to
Condensed Consolidated Financial Statements for additional information related
to the Company's acquisition of SSIMWAVE.)

Commencing in March 2022, in response to the ongoing conflict between Russia and
Ukraine and resulting sanctions, the Company suspended its operations in Russia
and Belarus. As of September 30, 2022, the IMAX network includes 54 theaters in
Russia, nine theaters in Ukraine, and one theater in Belarus, and the Company's
backlog includes 14 theaters in Russia, one theater in Ukraine, and five
theaters in Belarus with a total fixed contracted value of $22.9 million. In the
first quarter of 2022, the Company recorded provisions for potential credit
losses against substantially all of its receivables in Russia due to
uncertainties associated with the ongoing conflict. These receivables relate to
existing sale agreements as the Company is not party to any joint revenue
sharing arrangements in these countries. In addition, exhibitors in Russia,
Ukraine, and Belarus were placed on nonaccrual status for maintenance revenue
and finance income beginning in the first quarter of 2022, which resulted in
decreases of $0.7 million and $2.1 million in revenue during the three and nine
months ended September 30, 2022, respectively. Numerous multiplexes in Ukraine
have reopened since the conflict began and the Company remains optimistic that
its theater network in Ukraine will ultimately resume operations. The Company
continues to monitor the evolving impacts of this conflict and its effects on
the global economy and the Company. (See Note 5 of Notes to Condensed
Consolidated Financial Statements and "Risk Factors - The Company conducts
business internationally, which exposes it to uncertainties and risks that could
negatively affect its operations, sales, and future growth prospects." in Part
II, Item 1A in this report.)

On September 7, 2022, Cineworld Group plc ("Cineworld"), the parent company of
Regal Entertainment Group, and certain of its subsidiaries and Regal CineMedia
Holdings, LLC, filed petitions for reorganization under Chapter 11 of the United
States Bankruptcy Code in the Southern District of Texas. Based on its
evaluation of its contracts with Cineworld, its assessment of the reorganization
and its discussions with Cineworld to date, the Company has determined that no
additional provision for expected credit losses is required. The Company also
does not expect to see a material impact on its network of theaters with
Cineworld resulting from this reorganization. There can, however, be no
guarantees as to the ultimate outcome of a Chapter 11 proceeding. The Company
has an unsecured claim of $11.4 million related to receivables from the entities
included in the reorganization proceeding.

                                       51
--------------------------------------------------------------------------------

EFFECTS OF THE COVID-19 PANDEMIC


The impact of the COVID-19 pandemic is complex and continuously evolving,
resulting in significant disruption to the Company's business and the global
economy. At various points during the pandemic, authorities around the world
imposed measures intended to control the spread of COVID-19, including
stay-at-home orders and restrictions on large public gatherings, which caused
movie theaters in countries around the world to temporarily close, including the
IMAX theaters in those countries. As a result of these theater closures, movie
studios postponed the theatrical release of most films originally scheduled for
release in 2020 and early 2021, including many of the films scheduled to be
shown in IMAX theaters, while several other films were released directly or
concurrently to streaming platforms. Beginning in the third quarter of 2020,
stay-at-home orders and capacity restrictions were lifted in many key markets
and movie theaters throughout the IMAX network gradually reopened. However,
following the emergence of the Omicron variant and the rise of COVID-19 cases in
China in the first quarter of 2022, the Chinese government reinstituted capacity
restrictions and safety protocols on large public gatherings, which has led to
the temporary closure of theaters in several cities. As of September 30, 2022,
approximately 92% of the IMAX theaters in Greater China were open at various
capacities. On average, during the third quarter of 2022, approximately 82% of
the IMAX theaters in Greater China were open at various capacities.

For the nine months ended September 30, 2022, gross box office ("GBO") generated
by IMAX films totaled $598.1 million, representing a $237.4 million (66%)
increase versus the same period in 2021. Although GBO results during the nine
months ended September 30, 2022 were impacted by the COVID-related theater
closures in China, management remains encouraged by the overall positive trend
in box office results and believes it indicates that moviegoers are returning to
theaters, and in particular IMAX theaters, where and when theaters are open and
they feel safe. Despite accounting for 1% of all domestic screens, the IMAX
network had a domestic market share of 5% for the nine months ended September
30, 2022. Management is further encouraged by the return of the prevalence of
exclusive theatrical windows and the strong pipeline of Hollywood movies
scheduled to be released for theatrical exhibition throughout the remainder of
2022 and into 2023. However, the impact of the COVID-19 pandemic on the
Company's business and financial results will continue to depend on numerous
evolving factors that cannot be accurately predicted and that will vary by
jurisdiction and market, including the duration and scope of the pandemic, the
emergence of new and the spread of existing variants of the virus, the progress
made on administering vaccines and developing treatments and the effectiveness
of such vaccines and treatments, the continuing impact of the pandemic on global
economic conditions and ongoing government responses to the pandemic, which
could lead to further theater closures, theater capacity restrictions and/or
delays in the release of films.

(See "Risk Factors - The Company has experienced a significant decrease in its
revenues, earnings and cash flows due to the COVID-19 pandemic and its business,
financial condition and results of operations may continue to be significantly
harmed in future reporting periods" in Part II, Item 1A in this report.)

REVENUE SOURCES


For the presentation of MD&A, the Company has organized its reportable segments
into the following three categories: (i) IMAX Technology Network; (ii) IMAX
Technology Sales and Maintenance; and (iii) Film Distribution and
Post-Production. Within these three categories are the Company's following
reportable segments: (i) IMAX DMR; (ii) Joint Revenue Sharing Arrangements
("JRSA"); (iii) IMAX Systems; (iv) IMAX Maintenance; (v) Other Theater Business;
(vi) Film Distribution; and (vii) Film Post-Production. The Company's activities
that do not meet the criteria to be considered a reportable segment are
disclosed within All Other.

                                       52
--------------------------------------------------------------------------------

IMAX technology network


The IMAX Technology Network category earns revenue based on contingent box
office receipts. Included in the IMAX Technology Network category are the IMAX
DMR segment and contingent rent from the JRSA segment, which are each described
in more detail below.

IMAX DMR

IMAX DMR is a proprietary technology that digitally remasters films into IMAX
formats. In a typical IMAX DMR film arrangement, the Company receives a
percentage of the box office receipts from a movie studio in exchange for
converting a commercial film into IMAX DMR format and distributing it through
the IMAX network. The fee earned by the Company in a typical IMAX DMR
arrangement averages approximately 12.5% of box office receipts (i.e., GBO less
applicable sales taxes), except for within Greater China, where the Company
receives a lower percentage of net box office receipts for certain Hollywood
films.

IMAX DMR digitally enhances the image resolution of films for projection on IMAX
screens while maintaining or enhancing the visual clarity and sound quality to
levels for which The IMAX Experience is known. In addition, the original
soundtrack of a film to be exhibited in IMAX theaters is remastered for IMAX
digital sound systems. Unlike the soundtracks played in conventional theaters,
IMAX remastered soundtracks are uncompressed and full fidelity. IMAX sound
systems use proprietary loudspeaker systems and proprietary surround sound
configurations that ensure every theater seat is in an optimal listening
position.

IMAX films also benefit from enhancements made by individual filmmakers
exclusively for the IMAX release of the film. Collectively, the Company refers
to these enhancements as "IMAX DNA". Filmmakers and movie studios have sought
IMAX-specific enhancements in recent years to generate interest in and
excitement for their films. Such enhancements include shooting films with IMAX
cameras to increase the audience's immersion in the film and to take advantage
of the unique dimensions of the IMAX screen by projecting the film in a larger
aspect ratio that delivers up to 26% more image onto a standard IMAX movie
screen. In select IMAX theaters worldwide, movies filmed with IMAX cameras have
an IMAX-exclusive 1.43 film aspect ratio, with up to 67% more image. The Company
has a Filmed For IMAXTM program under which filmmakers craft films from their
inception in various ways in order to optimize The IMAX Experience, which box
office metrics demonstrate audiences respond extremely favorably to.

Management believes that growth in international box office remains an important
driver of growth for the Company. To support continued growth in international
markets, the Company has sought to bolster its international film strategy,
supplementing its slate of Hollywood films with appealing local language films
released in select markets, particularly in China.

The table below provides detailed information on the films released on the company’s global theatrical network in the past three and nine months 09/30/2022 and 2021:


                                                For the Three Months Ended               For the Nine Months Ended
                                                       September 30,                           September 30,
                                                2022                   2021             2022                   2021
Hollywood film releases(1)                            12                      9               26                     27
Local language film releases:
China                                                  9                      9               13                     16
Japan                                                  3                      2                6                      7
South Korea                                            3                      1                5                      1
India                                                  4                      -                6                      -
France                                                 -                      -                1                      -
Indonesia                                              1                      -                1                      -
Total local language film releases                    20                     12               32                     24
Total film releases(2)                                32                     21               58                     51




(1)

Includes five newly released films for the three and nine months that ended 09/30/2022 (2021 – zero and four respectively).

(2)

For the three and nine months ended 09/30/2022The films to be released on the company’s global theatrical network include four and ten with IMAX DNA, respectively (2021 – six and eight, respectively).

                                       53
--------------------------------------------------------------------------------


The films distributed through the Company's global theater network during the
nine months ended September 30, 2022 include Top Gun: Maverick, Doctor Strange
in the Multiverse of Madness, Jurassic World Dominion, The Batman, Thor: Love
and Thunder, The Battle at Lake Changjin 2, Spider-Man: No Way Home, and
Fantastic Beasts: The Secrets of Dumbledore.

In addition to the films released to the Company's global theater network during
the nine months ended September 30, 2022, the Company has announced the
following 30 additional titles scheduled to be released throughout the remainder
of 2022 and 2023:

                                                    Scheduled
           Title                   Studio        Release Date(1)         IMAX DNA
                                20th Century
         Amsterdam                 Studios        October 2022               -
                                  Universal
       Halloween Ends             Pictures        October 2022               -
                                Warner Bros.
         Black Adam               Pictures        October 2022               -
   Black Panther: Wakanda        Walt Disney
          Forever                  Studios        November 2022       Filmed For IMAX
         Indochine               Pathé Live       November 2022       Filmed For IMAX
       Violent Night              Universal
                                  Pictures        December 2022              -
                                 Walt Disney
  Avatar: The Way of Water         Studios        December 2022              -
                                 Walt Disney
       Titanic 3D(2)               Studios        February 2023              -
   Ant-Man and the Wasp:         Walt Disney
        Quantumania                Studios        February 2023       Filmed For IMAX
         Creed III             United Artists
                                  Releasing        March 2023         Filmed For IMAX
 Shazam!: Fury of the Gods      Warner Bros.
                                  Pictures         March 2023                -
    John Wick: Chapter 4          Lionsgate        March 2023                -
The Super Mario Bros. Movie       Universal
                                  Pictures         April 2023                -
Guardians of the Galaxy Vol.     Walt Disney
             3                     Studios          May 2023          Filmed For IMAX
           Fast X                 Universal
                                  Pictures          May 2023                 -
     The Little Mermaid          Walt Disney
                                   Studios          May 2023                 -
   Spider-Man: Across the       Sony Pictures
        Spider-Verse                                June 2023                -
 Transformers: Rise of the        Paramount
           Beasts                 Pictures          June 2023                -
         The Flash              Warner Bros.
                                  Pictures          June 2023                -
      Indiana Jones 5            Walt Disney
                                   Studios          July 2023                -
 Mission: Impossible - Dead       Paramount
     Reckoning Part One           Pictures          July 2023         Filmed For IMAX
        Oppenheimer               Universal                         Shot with IMAX Film
                                  Pictures          July 2023             Cameras
        Blue Beetle             Warner Bros.
                                  Pictures         August 2023        Filmed For IMAX
      The Equalizer 3           Sony Pictures    September 2023              -
         The Nun 2              Warner Bros.
                                  Pictures       September 2023              -
    A Haunting in Venice         Walt Disney
                                   Studios       September 2023              -
     Kraven the Hunter          Sony Pictures     October 2023               -
       Dune: Part Two           Warner Bros.
                                  Pictures        November 2023       Filmed For IMAX
           Wonka                Warner Bros.
                                  Pictures        December 2023              -
Aquaman and the Lost Kingdom    Warner Bros.
                                  Pictures        December 2023       Filmed For IMAX




(1)
The scheduled release dates in the table above are subject to change, including
as a result of the impact of the COVID-19 pandemic, may vary by territory, and
may not reflect the date(s) of limited premiere events. (See "Risk Factors - The
Company has experienced a significant decrease in its revenues, earnings and
cash flows due to the COVID-19 pandemic and its business, financial condition
and results of operations may continue to be significantly harmed in future
reporting periods" in Part II, Item 1A in this report.)

(2)

Designates re-release films.


The Company remains in active negotiations with all major Hollywood studios for
additional films to fill out its short- and long-term film slate for the IMAX
network. The Company also expects to announce additional local language films to
be released to its global theater network in the remainder of 2022 and 2023.

Joint Revenue Sharing Arrangements – Conditional Lease


The JRSA segment provides IMAX Theater Systems to exhibitors through joint
revenue sharing arrangements. Under the traditional form of these arrangements,
the Company provides the IMAX Theater System under a long-term lease in which
the Company assumes the majority of the equipment and installation costs. In
exchange for its upfront investment, the Company earns rent based on a
percentage of contingent box office receipts and, in some cases, concession
revenues, rather than requiring the customer to pay a fixed upfront fee or
annual minimum payments. Rental payments from the customer are required
throughout the term of the arrangement and are due either monthly or quarterly.
The Company retains title to the IMAX Theater System equipment components
throughout the lease term, and the equipment is returned to the Company at the
conclusion of the arrangement.

                                       54
--------------------------------------------------------------------------------


Under certain other joint revenue sharing arrangements, known as hybrid
arrangements, the customer is responsible for making fixed upfront payments
prior to the delivery and installation of the IMAX Theater System in an amount
that is typically half of what the Company would receive from a typical sale
transaction. As with a traditional joint revenue sharing arrangement, the
customer also pays the Company a percentage of contingent box office receipts
over the term of the arrangement, although this percentage is typically half
that of a traditional joint revenue sharing arrangement. For hybrid joint
revenue sharing arrangements that take the form of a lease, the contingent rent
is reported within the IMAX Technology Network, while the fixed upfront payment
is recorded as revenue within IMAX Technology Sales and Maintenance, as
discussed below. For hybrid joint revenue sharing arrangements that take the
form of a sale, see the discussion below under IMAX Technology Sales and
Maintenance.

Under most joint revenue sharing arrangements (both traditional and hybrid), the
initial non-cancellable term is 10 years or longer and is renewable by the
customer for one to two additional terms of between three to five years. The
Company has the right to remove the equipment for non-payment or other defaults
by the customer. The contracts are non-cancellable by the customer unless the
Company fails to perform its obligations.

The revenue earned from customers under the Company's joint revenue sharing
arrangements can vary from quarter-to-quarter and year-to-year based on a number
of factors including film performance, the mix of theater system configurations,
the timing of installation of IMAX Theater Systems, the nature of the
arrangement, the location, size and management of the theater and other factors
specific to individual arrangements.

Joint revenue sharing arrangements also require IMAX to provide maintenance and
extended warranty services to the customer over the term of the lease in
exchange for a separate fixed annual fee. These fees are reported within IMAX
Technology Sales and Maintenance, as discussed below.

Joint revenue sharing arrangements have been an important factor in the
expansion of the Company's commercial theater network. Joint revenue sharing
arrangements allow commercial theater exhibitors to install IMAX Theater Systems
without the significant initial capital investment required in a sale or
sales-type lease arrangement. Joint revenue sharing arrangements drive recurring
cash flows and earnings for the Company as customers under these arrangements
pay the Company a portion of their ongoing box office receipts. The Company
funds its investment in equipment for joint revenue sharing arrangements through
cash flows from operations. As of September 30, 2022, the Company had 926
theaters under joint revenue sharing arrangements in its global commercial
multiplex theater network, a 2% increase as compared to the 904 theaters as of
September 30, 2021. The Company also had contracts in backlog for 319 theaters
under joint revenue sharing arrangements as of September 30, 2022, including 100
upgrades to existing theater locations and 219 new theater locations.

Sale and maintenance of IMAX technology


The IMAX Technology Sales and Maintenance category earns revenue principally
from the sale or sales-type lease of IMAX Theater Systems, as well as from the
maintenance of IMAX Theater Systems. To a lesser extent, the IMAX Technology
Sales and Maintenance category also earns revenue from certain hybrid joint
revenue sharing arrangements and certain ancillary theater business activities.
These activities are described in more detail below under the captioned section
for each respective segment.

IMAX Systems

The IMAX Systems segment provides IMAX Theater Systems to exhibitors through
sale arrangements or long-term lease arrangements that for accounting purposes
are classified as sales-type leases. Under these arrangements, in exchange for
providing the IMAX Theater System, the Company earns initial fees and ongoing
consideration, which can include fixed annual minimum payments and contingent
fees in excess of the minimum payments, as well as maintenance and extended
warranty fees (see "IMAX Maintenance" below). The initial fees vary depending on
the system configuration and location of the theater. Initial fees are paid to
the Company in installments between the time of signing the arrangement and the
time of system installation, which is when the total of these fees, in addition
to the present value of future annual minimum payments, are recognized as
revenue. Finance income is recognized over the term of a financed sale or
sales-type lease arrangement. In addition, in sale arrangements, an estimate of
the contingent fees that may become due if certain annual minimum box office
receipt thresholds are exceeded is recorded as revenue in the period when the
sale is recognized and is adjusted in future periods based on actual results and
changes in estimates. Such variable consideration is only recognized on sales
transactions to the extent the Company believes there is not a risk of
significant revenue reversal.

                                       55
--------------------------------------------------------------------------------


In sale arrangements, title to the IMAX Theater System equipment generally
transfers to the customer. However, in certain instances, the Company retains
title or a security interest in the equipment until the customer has made all
payments required by the agreement or until certain shipment events for the
equipment have occurred. In a sales-type lease arrangement, title to the IMAX
Theater System equipment remains with the Company. The Company has the right to
remove the equipment for non-payment or other defaults by the customer.

The revenue earned from customers under the Company's theater system sale or
lease agreements varies from quarter-to-quarter and year-to-year based on a
number of factors, including the number and mix of theater system configurations
sold or leased, the timing of installation of the IMAX Theater Systems, the
nature of the arrangement and other factors specific to individual contracts.

Joint Revenue Sharing Agreements – Fixed Fees


Under certain joint revenue sharing arrangements, known as hybrid arrangements,
the customer is responsible for making fixed upfront payments prior to the
delivery and installation of the IMAX Theater System in an amount that is
typically half of what the Company would receive from a typical sale
transaction. For hybrid joint revenue sharing arrangements that take the form of
a lease, the contingent rent is reported within the IMAX Technology Network, as
discussed above, while the fixed upfront payment is reported within IMAX
Technology Sales and Maintenance.

IMAX maintenance


IMAX Theater System arrangements also include a requirement for the Company to
provide maintenance services over the life of the arrangement in exchange for an
extended warranty and annual maintenance fee paid by the exhibitor. Under these
arrangements, the Company provides preventative and emergency maintenance
services to ensure that each presentation is up to the highest IMAX quality
standard. Annual maintenance fees are paid throughout the duration of the term
of the theater agreements.

Other Theater Business

The Other Theater Business segment mainly includes after-market sales of IMAX theater system parts and 3D glasses.

Film distribution and post-production


Through its Film Distribution segment, the Company distributes large-format
documentary films, primarily to institutional theaters. The Company receives as
its distribution fee either a fixed amount or a fixed percentage of the theater
box office receipts and, following the recoupment of its costs, is typically
entitled to receive an additional percentage of gross revenues as participation
revenues. In March 2022, the Company released the IMAX documentary film entitled
IMAX presents The Last Glaciers.

In addition, the Company continues to evolve its platform to bring new,
innovative IMAX Live events and experiences to audiences worldwide. The Company
has a connected IMAX theater footprint capable of delivering live, interactive
content with low latency and superior sight and sound. As of September 30, 2022,
176 theaters in the IMAX network across the United States, Canada, and Europe
were configured to enable the streaming of live events. The Company expects to
have 250 connected IMAX theaters available for streaming IMAX Live events by the
end of 2022.

In the first quarter of 2022, the Company partnered with Disney for a live Q&A
with director and producer Peter Jackson, streaming to 68 IMAX theaters in North
America, followed by a special screening of The Beatles: Get Back - The Rooftop
Concert, which was later released across the IMAX global network. In the second
quarter of 2022, the Company partnered with Warner Bros. for a live Q&A that
preceded a special screening of Fantastic Beasts: The Secrets of Dumbledore and
partnered with Universal for a live Q&A that preceded a special screening of
Jurassic World Dominion. Also, in the second quarter of 2022, IMAX Live, in
partnership with Summer Game Fest 2022, presented Summer Game Fest, a first-fan
celebration of the future of video games, in connected theaters. In the third
quarter of 2022, the Company partnered with Warner Bros. for a live Q&A that
preceded a special screening of Don't Worry Darling. Also in the third quarter
of 2022, the Company presented Brandi Carlile: In The Canyon Haze - Live from
Laurel Canyon, a one-night-only live concert performing her new deluxe album In
The Canyon Haze for the very first time, in connected theaters across the United
States.

The company continues to believe that the IMAX network serves as a valuable platform for launching and distributing original content.

Through its Film Post-Production segment, the Company provides film post-production and quality control services for large format films, whether produced by IMAX or third parties, as well as digital post-production services.

                                       56
--------------------------------------------------------------------------------

All Other

IMAX Enhanced

IMAX Enhanced® is an initiative, in partnership with audio leader DTS (an Xperi
subsidiary), to bring The IMAX Experience into the home. IMAX Enhanced provides
end-to-end premium technology across streaming content and best-in-class
entertainment devices, offering consumers high-fidelity playback of image and
sound in the home and beyond, including the following features:

IMAX’s expanded aspect ratio, available on select titles and streaming platforms, including Disney+;

IMAX’s proprietary remastering technology that produces more vivid 4K HDR images with higher fidelity on premium televisions; and

IMAX signature sound recreated and calibrated by DTS specifically for the home to unlock more immersive audio.


To be certified as IMAX Enhanced, leading consumer electronics manufacturers
spanning 4K/8K televisions, projectors, A/V receivers, loudspeakers, soundbars
and smartphones must meet a carefully prescribed set of audiovisual performance
standards, set by a certification committee of IMAX and DTS engineers, along
with some of Hollywood's leading technical specialists.

At present, certified global device partners include Sony Electronics, Hisense,
TCL, LG, Phillips, Xiaomi, Sound United and Honor, among others. As of September
30, 2022, more than 200 IMAX Enhanced titles have been released across five of
the biggest streaming platforms worldwide, including Disney+, Sony Bravia CORE,
Tencent Video, iQiyi and Rakuten TV. Over 10 million IMAX Enhanced certified
devices are estimated to be in the market today.

The Company's collaboration with Disney, which was announced in November 2021,
allows fans to stream 17 Disney titles in IMAX's Expanded Aspect Ratio at home
on Disney+, including Doctor Strange in the Multiverse of Madness, Shang-Chi and
The Legend of The Ten Rings, and Eternals, as well as Iron Man, Guardians of the
Galaxy, Guardians of the Galaxy Vol. 2, Captain America: Civil War, Doctor
Strange, Thor: Ragnarok, Black Panther, Avengers: Infinity War, Ant-Man and The
Wasp, Captain Marvel, Avengers: Endgame, Black Widow, Lightyear, and Thor: Love
and Thunder (content availability varies by region). The launch of IMAX Enhanced
on Disney+ provides strong brand exposure for IMAX by expanding the Company's
in-home entertainment footprint to more than 80 million subscribers.

IMAX Enhanced and the collaboration with Disney is part of the Company's next
evolutionary step to extend the IMAX brand and technology further into new use
cases, including streaming entertainment and the consumer electronics market.

In the first quarter of 2022, the Company's internal reporting was updated to
reclassify the results of IMAX Enhanced out of the New Business Initiatives
segment and into All Other for segment reporting purposes. IMAX Enhanced was the
only component of the New Business Initiatives segment.

SSIMWAVE


On September 22, 2022 (the "Closing Date"), the Company acquired all of the
issued and outstanding shares of SSIMWAVE pursuant to a share purchase agreement
by and among the Company, SSIMWAVE, and related shareholders (the "Sellers").
SSIMWAVE provides perceptual quality measurement and optimization solutions
based on artificial intelligence technologies for leading media and
entertainment companies. Following the acquisition, SSIMWAVE became a
wholly-owned subsidiary of the Company.

As consideration for the acquisition of SSIMWAVE, the Company is paying an
aggregate purchase price of approximately $23.1 million, comprised of: (i) $19.4
million in cash, of which $16.2 million was paid on the Closing Date, (ii)
160,547 common shares of the Company with a fair value of $1.9 million (the
"IMAX Share Consideration"), and (iii) contingent consideration with a fair
value of $1.8 million (the "Earn-Out Payment"). The fair value of the IMAX Share
Consideration is reduced to reflect the fair value of certain restrictions on
the future transfer of the shares. The Earn-Out Payment may be paid to certain
Sellers in an aggregate amount of up to $2.0 million in cash, contingent upon
and following the achievement of certain commercial and financial milestones
during the period from January 1, 2023 to December 31, 2024. The fair value of
the Earn-Out Payment is based on management's assessment of the likelihood of
achieving these milestones.

(See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information on the Company’s acquisition of SSIMWAVE.)

                                       57
--------------------------------------------------------------------------------

Miscellaneous


All Other also includes revenues from the one owned and operated IMAX theater in
Sacramento, California; a commercial arrangement with one theater resulting in
the sharing of profits and losses; the provision of management services to three
other theaters; renting the Company's proprietary 2D and 3D large-format film
and digital cameras to third-party production companies; and also offering
production advice and technical assistance to both documentary and Hollywood
filmmakers.

IMAX NETWORK AND BACKLOG

IMAX Network

The table below provides detailed information about the IMAX network by type and geographic location 09/30/2022 and 2021:

                                             September 30, 2022                                                  September 30, 2021
                        Commercial        Commercial                                        Commercial       Commercial
                        Multiplex        Destination        Institutional  
    Total       Multiplex        Destination       Institutional       Total
United States                   364                  4                  25         393              362                 4                  27         393
Canada                           40                  1                   7          48               39                 1                   7          47
Greater China(1)                776                  -                  14         790              752                 -                  15         767
Western Europe                  117                  4                   8         129              116                 4                   8         128
Asia (excluding
Greater China)                  131                  2                   2         135              121                 2                   2         125
Russia/the CIS &
Ukraine(2)                       70                  -                   -          70               68                 -                   -          68
Latin America(3)                 55                  1                  11          67               51                 1                  11          63
Rest of the World                69                  -                   2          71               71                 -                   2          73
Total(4)                      1,622                 12                  69       1,703            1,580                12                  72       1,664




(1)

Greater China contains China, Hong Kong, Taiwanand Macao.

(2)

In addition to Russia, the CIS includes Azerbaijan, Belarus, Kazakhstan, and
Kyrgyzstan. Commencing in March 2022, in response to the ongoing conflict
between Russia and Ukraine and resulting sanctions, the Company suspended its
operations in Russia and Belarus. As of September 30, 2022, the IMAX network
includes 54 theaters in Russia, nine theaters in Ukraine, and one theater in
Belarus.

(3)

Latin America contains South America, Central America and Mexico.

(4)

Period-to-period changes in the table above are shown net of the impact of permanently closed cinemas.


The Company currently believes that over time its commercial multiplex network
could grow to approximately 3,318 IMAX theaters worldwide from the 1,622
theaters in the network as of September 30, 2022. The Company believes that the
majority of its future growth will come from international markets. As of
September 30, 2022, 75% of IMAX Theater Systems in the global commercial
multiplex network were located within international markets (defined as all
countries other than the United States and Canada). Revenues and GBO derived
from international markets continue to exceed revenues and GBO from the United
States and Canada. Risks associated with the Company's international business,
including Russia, are outlined in "Risk Factors - The Company conducts business
internationally, which exposes it to uncertainties and risks that could
negatively affect its operations, sales and future growth prospects" in Part II,
Item 1A in this report.

In the year ended December 31, 2021, 44% of the Company's consolidated revenue
was generated from its Greater China operations (2020 - 38%, 2019 - 31%). As of
September 30, 2022, the Company had 790 theaters operating in Greater China with
an additional 211 theaters in backlog. The Company's backlog in Greater China
represents 43% of its total current backlog, including upgrades in system type.
The Company has a partnership in China with Wanda Film ("Wanda"). As of
September 30, 2022, through the Company's partnership with Wanda, there are 375
IMAX Theater Systems operational in Greater China of which 361 are under the
parties' joint revenue sharing arrangements.

                                       58
--------------------------------------------------------------------------------


(See "Risk Factors - The Company faces risks in connection with its significant
presence in China and the continued expansion of its business there," "Risk
Factors - General political, social and economic conditions can affect the
Company's business by reducing both revenues generated from existing IMAX
Theater Systems and the demand for new IMAX Theater Systems," and "Risk Factors
- The Company may not convert all of its backlog into revenue and cash flows" in
Part I, Item 1A of the Company's 2021 Form 10-K.)

(See "Management's Discussion and Analysis of Financial Condition and Results of
Operations - Impact of COVID-19 Pandemic" and "Risk Factors - The Company has
experienced a significant decrease in its revenues, earnings and cash flows due
to the COVID-19 pandemic and its business, financial condition and results of
operations may continue to be significantly harmed in future reporting periods"
in Part II, Item 1A of this report.)

The following tables provide detailed information about the Company's global
commercial multiplex theater network by arrangement type and geographic location
as of September 30, 2022 and 2021:

                                                                      

09/30/2022

                                                        Commercial 

multiplex theatre on the IMAX network

                                            Traditional          Hybrid     

sale / sales

                                               JRSA               JRSA            type Lease              Total
Domestic Total (United States & Canada)              276                6                   122                 404

International:

Greater China                                        400              112                   264                 776
Asia (excluding Greater China)                        34                4                    93                 131
Western Europe                                        47               28                    42                 117
Russia/the CIS & Ukraine(1)                            -                -                    70                  70
Latin America                                          2                -                    53                  55
Rest of the World                                     17                -                    52                  69
International Total                                  500              144                   574               1,218
Worldwide Total(2)                                   776              150                   696               1,622

                                                                      September 30, 2021
                                                        Commercial

multiplex theatre on the IMAX network

                                            Traditional          Hybrid     

sale / sale

                                               JRSA               JRSA            type Lease              Total
Domestic Total (United States & Canada)              274                5                   122                 401

International:

Greater China                                        389              109                   254                 752
Asia (excluding Greater China)                        33                2                    86                 121
Western Europe                                        47               28                    41                 116
Russia/the CIS & Ukraine(1)                            -                -                    68                  68
Latin America                                          1                -                    50                  51
Rest of the World                                     16                -                    55                  71
International Total                                  486              139                   554               1,179
Worldwide Total(2)                                   760              144                   676               1,580




(1)
In addition to Russia, the CIS includes Azerbaijan, Belarus, Kazakhstan, and
Kyrgyzstan. Commencing in March 2022, in response to the ongoing conflict
between Russia and Ukraine and resulting sanctions, the Company suspended its
operations in Russia and Belarus. As of September 30, 2022, the IMAX network
includes 54 theaters in Russia, nine theaters in Ukraine, and one theater in
Belarus.

(2)

Period-to-period changes in the tables above are shown net of the impact of permanently closed cinemas.



                                       59
--------------------------------------------------------------------------------

Residue

The table below provides detailed information about the Company’s backlog as of 09/30/2022 and 2021:

                                           September 30, 2022                                                 September 30, 2021
                              Number of                       Dollar Value                       Number of                       Dollar Value
                               Systems                       (in thousands)                       Systems                       (in thousands)
                        New           Upgrade             New            Upgrade           New           Upgrade             New            Upgrade
Sale and sales-type
lease arrangements       154                16         $ 175,617         $ 18,312           170                12         $ 194,539         $ 14,207
Hybrid JRSA              121                 6            88,604            4,785           133                 6            95,349            4,785
Traditional JRSA          98   (1)          94   (1)         200   (2)      4,500   (2)     108   (1)          77   (1)         200   (2)      5,500   (2)
                         373   (3)         116   (3)   $ 264,421   (3)   $ 27,597   (3)     411                95         $ 290,088         $ 24,492




(1)

Includes 41 IMAX theater systems (2021-44) where customer has the option to convert from a revenue sharing agreement to a sales agreement.

(2)

The consideration owed under joint revenue sharing arrangements, which are
accounted for as leases, is typically contingent on the box office receipts
earned by the exhibitor. Accordingly, such arrangements do not usually have a
dollar value in backlog; however, certain joint revenue sharing arrangements
provide for contracted upfront payments and therefore carry a backlog value
based on those payments.

(3)

away 09/30/2022The company’s backlog includes 14 cinemas in Russiaa cinema in Ukraineand five theaters in Belarus with a fixed agreed total value of $22.9 million.


The number of IMAX Theater Systems in backlog reflects the minimum number of
commitments under signed contracts. The dollar value fluctuates depending on the
number of new arrangements signed from year-to-year, which adds to backlog and
the installation and acceptance of IMAX Theater Systems and the settlement of
contracts, both of which reduce backlog. The dollar value of backlog typically
represents the fixed contracted revenue under signed IMAX Theater System sale
and lease agreements that the Company expects to recognize as revenue upon
installation and acceptance of the associated system, as well as an estimate of
variable consideration in sale arrangements. The value of backlog does not
include amounts allocated to maintenance and extended warranty revenues or
revenue from theaters in which the Company has an equity interest, operating
leases, and long-term conditional theater commitments. The Company believes that
the contractual obligations for IMAX Theater System installations that are
listed in backlog are valid and binding commitments.

From time to time, in the normal course of its business, the Company will have
customers who are unable to proceed with an IMAX Theater System installation for
a variety of reasons, including the inability to obtain certain consents,
approvals or financing. Once the determination is made that the customer will
not proceed with installation, the agreement with the customer is terminated or
amended. If the agreement is terminated, once the Company and the customer are
released from all their future obligations under the agreement, all or a portion
of the initial rents or fees that the customer previously made to the Company
are recognized as revenue.

Certain of the Company's contracts contain options for the customer to elect to
upgrade system type during the term or to alter the contract structure (for
example, from a joint revenue sharing arrangement to a sale) after signing, but
before installation. Current backlog information reflects all known elections.

                                       60
--------------------------------------------------------------------------------

The following tables provide detailed information about the Company’s backlog by agreement type and geographic location as of today 09/30/2022 and 2021:

                                                                  September 30, 2022
                                                              IMAX Theater System Backlog
                                           Traditional           Hybrid         Sale / Sales-
                                               JRSA               JRSA           type Lease          Total
Domestic Total (United States & Canada)              121                 2                  11            134

International:

Greater China                                         43                96                  72            211
Asia (excluding Greater China)                         5                14                  31             50
Western Europe                                        18                13                   4             35
Russia/the CIS & Ukraine(1)                            -                 -                  21             21
Latin America                                          3                 -                   4              7
Rest of the World                                      2                 2                  27             31
International Total                                   71               125                 159            355
Worldwide Total                                      192               127                 170            489   (2)

                                                                  September 30, 2021
                                                              IMAX Theater System Backlog
                                           Traditional           Hybrid         Sale / Sales-
                                               JRSA               JRSA           type Lease          Total
Domestic Total (United States & Canada)              120                 3                   9            132

International:

Greater China                                         44               107                  78            229
Asia (excluding Greater China)                         4                15                  31             50
Western Europe                                        11                12                   7             30
Russia/the CIS & Ukraine                               -                 1                  23             24
Latin America                                          3                 -                   8             11
Rest of the World                                      3                 1                  26             30
International Total                                   65               136                 173            374
Worldwide Total                                      185               139                 182            506   (3)




(1)
In addition to Russia, the CIS includes Azerbaijan, Belarus, Kazakhstan, and
Kyrgyzstan. Commencing in March 2022, in response to the ongoing conflict
between Russia and Ukraine and resulting sanctions, the Company suspended its
operations in Russia and Belarus. As of September 30, 2022, the Company's
backlog includes 14 theaters in Russia, one theater in Ukraine, and five
theaters in Belarus with a total fixed contracted value of $22.9 million.

(2)

Includes 201 new IMAX laser theater systems and 116 upgrades of existing locations to IMAX laser theater systems.

(3)

Contains 157 new IMAX Laser Theater systems and 95 upgrades of existing locations to IMAX Laser Theater systems.

Approximately 73% of IMAX theater system orders are backordered 09/30/2022 to be installed on international markets (2021 – 74%).


(See "Management's Discussion and Analysis of Financial Condition and Results of
Operations - Impact of COVID-19 Pandemic" and "Risk Factors - The Company has
experienced a significant decrease in its revenues, earnings and cash flows due
to the COVID-19 pandemic and its business, financial condition and results of
operations may continue to be significantly harmed in future reporting periods"
in Part II, Item 1A of this report.)

                                       61
--------------------------------------------------------------------------------

signatures and installations

The following tables provide detailed information on IMAX Theater System signings and installations for the past three and nine months 09/30/2022 and 2021:

                                               For the Three Months Ended                For the Nine Months Ended
                                                      September 30,                            September 30,
                                               2022                   2021              2022                   2021
Theater System Signings:
New IMAX Theater Systems
Sale and sales-type lease arrangements                3                      4                  9                     13
Hybrid JRSA                                           1                      -                  3                      -
Traditional JRSA                                      7                      5                  9                      8
Total new IMAX Theater Systems                       11                      9                 21                     21
Upgrades of IMAX Theater Systems                      4                      2                 14                      4
Total IMAX Theater System signings                   15                     11                 35                     25

                                               For the Three Months Ended                For the Nine Months Ended
                                                      September 30,                            September 30,
                                               2022                   2021              2022                   2021
Theater System Installations:
New IMAX Theater Systems(1)
Sale and sales-type lease arrangements                7                      6                 14                     17
Hybrid JRSA                                           2                      2                  5                      6
Traditional JRSA                                      7                      6                 16                     15
Total new IMAX Theater Systems                       16                     14                 35                     38
Upgrades of IMAX Theater Systems                      1                      3                  5                      7
Total IMAX Theater System installations              17                     17                 40                     45




(1)
For the three months ended September 30, 2022, includes two IMAX Theater System
that were relocated from their original locations (2021 - nil). For the nine
months ended September 30, 2022, includes eight IMAX Theater Systems that were
relocated from their original location. (2021 - nil). When a theater system
under a sale or sales-type lease arrangement is relocated, the amount of revenue
earned by the Company may vary from transaction-to-transaction and is usually
less than the amount earned for a new sale. In certain situations when a theater
system is relocated, the original location is upgraded to an IMAX Laser Theater
System.

(See "Management's Discussion and Analysis of Financial Condition and Results of
Operations - Impact of COVID-19 Pandemic" and "Risk Factors - The Company has
experienced a significant decrease in its revenues, earnings and cash flows due
to the COVID-19 pandemic and its business, financial condition and results of
operations may continue to be significantly harmed in future reporting periods"
in Part II, Item 1A of this report.)






                                       62
--------------------------------------------------------------------------------

RESULTS


The Company's business and future prospects are evaluated by Richard L. Gelfond,
its Chief Executive Officer ("CEO"), using a variety of factors and financial
and operational metrics including: (i) IMAX box office performance and the
securing of new IMAX DMR films and other events to be exhibited in IMAX
theaters; (ii) the signing, installation, and financial performance of theater
system arrangements, particularly those involving laser-based projection
systems; (iii) the success of the Company's investments in business evolution
and brand extensions, including the integration and performance of SSIMWAVE and
the distribution of live events to the IMAX network and IMAX Enhanced, (iv)
revenues and gross margins earned by the Company's segments, as discussed below;
(v) consolidated earnings from operations, as adjusted for unusual items; (vi)
the continuing ability to invest in and improve the Company's technology to
enhance the differentiation of The IMAX Experience versus other out-of-home
experiences; (vii) the overall execution, reliability, and consumer acceptance
of The IMAX Experience; and (viii) short- and long-term cash flow projections.

The CEO is the Company's Chief Operating Decision Maker ("CODM"), as such term
is defined under United States Generally Accepted Accounting Principles ("U.S.
GAAP"). The CODM, along with other members of management, assesses segment
performance based on segment revenues and gross margins. Selling, general and
administrative expenses, research and development costs, the amortization of
intangible assets, provision for (reversal of) current expected credit losses,
certain write-downs, interest income, interest expense, and income tax (expense)
benefit are not allocated to the Company's segments.

The Company's reportable segments are organized into the following three
categories: (i) IMAX Technology Network; (ii) IMAX Technology Sales and
Maintenance; and (iii) Film Distribution and Post-Production. Within these
categories are the Company's following reportable segments: (i) IMAX DMR; (ii)
JRSA; (iii) IMAX Systems; (iv) IMAX Maintenance; (v) Other Theater Business;
(vi) Film Distribution; and (vii) Film Post-Production, each of which are
described above under "Sources of Revenue." The Company's activities that do not
meet the criteria to be considered a reportable segment are disclosed within All
Other. This categorization is consistent with how the CODM reviews the financial
performance of the Company and makes strategic decisions regarding resource
allocation and investments to meet long-term business goals. Management believes
that a discussion and analysis based on the three categories listed above is
significantly more relevant and useful to readers, as the Company's Condensed
Consolidated Statements of Operations captions combine results from several
segments.

In the first quarter of 2022, the Company's internal reporting was updated to
reclassify the results of IMAX Enhanced out of the New Business Initiatives
segment and into All Other for segment reporting purposes. IMAX Enhanced was the
only component of the New Business Initiatives segment. Prior period
comparatives have been reclassified to conform with the current period
presentation.

Operating results for the past three months 09/30/2022 and 2021

Net loss attributable to common shareholders and adjusted net loss


The following table presents the Company's net loss attributable to common
shareholders and the associated per share amounts, as well as adjusted net loss
attributable to common shareholders* and adjusted net loss attributable to
common shareholders per share* for the three months ended September 30, 2022 and
2021:

                                                              Three Months Ended September 30,
                                                           2022                              2021
(In thousands of U.S. Dollars, except per
share amounts)                                  Net Loss         Per Share        Net Loss         Per Share
Net loss attributable to common shareholders    $  (8,953 )     $     (0.16 )     $  (8,378 )     $     (0.14 )
Adjusted net loss attributable to common
shareholders*                                   $  (3,027 )     $     (0.05 )     $  (5,032 )     $     (0.08 )



* See “Non-GAAP Financial Measures” below for a description of this non-GAAP financial measure and a reconciliation to the GAAP most comparable amount.

                                       63
--------------------------------------------------------------------------------

Revenue and Gross Margin (Margin Loss)


During the three months ended September 30, 2022, the Company's revenues and
gross margin increased by $12.2 million (22%) and $4.2 million (15%),
respectively, when compared to same period in 2021 principally due to the
strength of the GBO performance of the IMAX Technology Network through the
distribution of films such as Thor: Love and Thunder, Top Gun: Maverick, Moon
Man, Nope, and Minions: The Rise of Gru.

The following table presents the company’s revenue and gross margin (loss on margin) by category and reportable segment for the trailing three months 09/30/2022 and 2021:


                                                 Revenue                Gross Margin (Margin Loss)
(In thousands of U.S. Dollars)             2022          2021            2022                2021
IMAX Technology Network
IMAX DMR                                 $  19,919     $  15,701     $      11,408       $       7,293
JRSA, contingent rent                       12,540         9,887             6,302               3,626
                                            32,459        25,588            17,710              10,919
IMAX Technology Sales and Maintenance
IMAX Systems(1)                             15,957        13,236             9,029               8,086
JRSA, fixed fees                               998         1,036              (154 )               280
IMAX Maintenance                            13,939        13,055             6,406               6,462
Other Theater Business(2)                    2,107           363               168                  64
                                            33,001        27,690            15,449              14,892
Film Distribution and Post-Production        2,049         1,598            (2,082 )               416
Sub-total for reportable segments           67,509        54,876            31,077              26,227
All Other(3)                                 1,246         1,726               624               1,260
Total                                    $  68,755     $  56,602     $      31,701       $      27,487




(1)
The revenue from this segment includes the initial upfront payments and the
present value of fixed minimum payments from sale and sales-type lease
arrangements of IMAX Theater Systems, as well as the present value of estimated
variable consideration from sales of IMAX Theater Systems. To a lesser extent,
the revenue from this segment also includes finance income associated with these
revenue streams.

(2)

Revenues from this segment mainly include after-market sales of IMAX cinema system parts and 3D glasses.

(3)

All Other includes the results from IMAX Enhanced, SSIMWAVE, and other ancillary
activities. In the first quarter of 2022, the Company's internal reporting was
updated to reclassify the results of IMAX Enhanced out of the New Business
Initiatives segment into All Other for segment reporting purposes. Prior period
comparatives have been revised to conform with the current period presentation.
The results of SSIMWAVE, which was acquired on September 22, 2022, were not
material to the period. (See "SSIMWAVE" under "Sources of Revenue - All Other"
and Note 4 of Notes to Condensed Consolidated Financial Statements for
additional information related to the Company's acquisition of SSIMWAVE.)

                                       64
--------------------------------------------------------------------------------

IMAX technology network


IMAX Technology Network results are influenced by the level of commercial
success and box office performance of the films released to the IMAX network, as
well as other factors including the timing of the films released, the length of
the theatrical distribution window, the take rates under the Company's DMR and
joint revenue sharing arrangements and the level of marketing spend associated
with the films released in the year. Other factors impacting IMAX Technology
Network results include fluctuations in the value of foreign currencies versus
the U.S. Dollar.

For the three months ended September 30, 2022, IMAX Technology Network revenues
and gross margin increased by $6.9 million (27%) and $6.8 million (62%),
respectively, when compared to the same period in 2021 principally due to the
strength of the GBO performance of the IMAX Technology Network. See below for
separate discussions of IMAX DMR and JRSA contingent rent segment results for
the period.

IMAX DMR

For the three months ended September 30, 2022, IMAX DMR revenues and gross
margin increased by $4.2 million (27%) and $4.1 million (56%), respectively,
when compared to the same period in 2021. These increases are primarily due to
the strong performance of the films distributed through the IMAX network, which
resulted in a $35.2 million (25%) increase in GBO in the third quarter of 2022
over the prior year comparative period, from $141.9 million to $177.1 million.
This overall improvement in GBO for the period was partially offset by
unfavorable foreign currency exchange rate movements. In the third quarter of
2022, GBO was generated by the exhibition of 36 films (27 new films, 4
carryovers, and 5 re-releases), including Thor: Love and Thunder, which
generated GBO of $39.8 million in the period, and Top Gun: Maverick, which
generated GBO of $20.4 million in the period. In addition, in the third quarter
of 2022, local language films released to the Company's global theater network
generated $53.0 million in GBO representing 30% of the Company's total GBO as
compared to $32.0 million representing 23% of the Company's total GBO during the
same period in the prior year. In the third quarter of 2021, GBO was generated
by the exhibition of 24 films (21 new films and 3 carryovers).

In addition to the level of revenues, IMAX DMR gross margin is also influenced
by the costs associated with the films exhibited in the period, and can vary
from period-to-period, especially with respect to marketing expenses. For the
three months ended September 30, 2022, marketing expenses were $2.5 million, as
compared to $3.2 million during the same period in 2021.

Joint Revenue Sharing Arrangements – Conditional Lease


For the three months ended September 30, 2022, JRSA contingent rent revenue and
gross margin increased by $2.7 million (27%) and $2.7 million (74%),
respectively, when compared to the same period in 2021. These increases are
largely due to a $19.8 million (28%) increase in GBO generated by theaters under
joint revenue sharing arrangements in the third quarter of 2022 when compared to
the same period in the prior year, from $71.2 million to $91.0 million.

In addition to the level of revenues, JRSA contingent rent margin is also
influenced by the level of costs associated with such arrangements, such as
depreciation expense related to the underlying theater systems and costs
incurred to upgrade theater systems from IMAX Xenon Theater Systems to IMAX
Laser Theater Systems, as well as advertising, marketing, and commission costs
primarily for the launch of new theaters. The level of depreciation expense in a
period relative to the prior year is generally a function of the growth of the
theater network and the mix of theater system configurations in the network. For
the three months ended September 30, 2022, JRSA gross margin included
depreciation expense of $5.6 million as compared to $5.5 million recorded in the
same period of the prior year. For the three months ended September 30, 2022,
JRSA gross margin includes advertising, marketing, and commission costs of $0.6
million, as compared to $0.7 million in the same period of the prior year.

Sale and maintenance of IMAX technology


The primary drivers of IMAX Technology Sales and Maintenance results are the
number of IMAX Theater Systems installed in a period, and the level of gross
margin percentage earned on each installation, as well as the associated
maintenance contracts that accompany each theater installation. The installation
of IMAX Theater Systems in newly built theaters or multiplexes, which make up a
large portion of the Company's theater system backlog, depends primarily on the
timing of the construction of those projects, which is not under the Company's
control.

For the three months ended September 30, 2022, IMAX Technology Sales and
Maintenance revenue and gross margin increased by $5.3 million (19%) and $0.6
million (4%), respectively, when compared to the same period in the prior year.
See below for separate discussions of IMAX Systems and IMAX Maintenance segment
results for the period.

                                       65
--------------------------------------------------------------------------------


The following table provides detailed information about the mix of IMAX Theater
Systems installed and recognized during the three months ended September 30,
2022 and 2021:

                                                         For the Three Months Ended September 30,
                                                       2022                                 2021
(In thousands of U.S. Dollars, except      Number of                              Number of
number of systems)                          Systems            Revenue             Systems          Revenue
New IMAX Theater Systems:
Sale and sales-type lease
arrangements(1)                                     7       $       7,779                    6     $   7,239
JRSA - hybrid                                       2                 998                    2         1,031
Total new IMAX Theater Systems(2)                   9               8,777                    8         8,270

IMAX Theater System upgrades:
Sale and sales-type lease
arrangements(1)                                     1               1,544                    1         1,316
Total upgraded IMAX Theater Systems                 1               1,544                    1         1,316
Total                                              10       $      10,321                    9     $   9,586




(1)
The arrangement for the sale of an IMAX Theater System includes fixed upfront
and ongoing consideration, including indexed annual minimum payment increases
over the term of the arrangement, as well as an estimate of the contingent fees
that may become due if certain annual minimum box office receipt thresholds are
exceeded.

(2)

Includes one IMAX Xenon Theater System that was relocated from its original
location, which is subject to sales and sales-type lease arrangements (2021 -
nil). When a theater system under a sales or sales-type lease arrangement is
relocated, the amount of revenue earned by the Company may vary from
transaction-to-transaction and is usually less than the amount earned for a new
sale. In certain situations when a theater system is relocated, the original
location is upgraded to an IMAX Laser Theater System.

The average revenue per IMAX Theater System under sale and sales-type lease
arrangements varies depending upon the number of IMAX Theater System commitments
with a single respective exhibitor, an exhibitor's location and various other
factors. The average revenue per full (i.e., excluding JRSA hybrid arrangements
and relocations), new IMAX Theater System under sale and sales-type lease
arrangements was $1.3 million for the three months ended September 30, 2022, as
compared to $1.2 million during the same period of the prior year.

IMAX systems


For the three months ended September 30, 2022, IMAX Systems revenue and gross
margin increased by $2.7 million (21%) and $0.9 million (12%), respectively,
when compared to the same period in the prior year. The higher level of revenue
and gross margin is the result of one additional IMAX Theater System
installation, including upgrades, in the current period and an increase of $2.6
million due to the impact of amendments to existing theater system arrangements,
offset by a decrease of $0.3 million in Finance Income associated with theaters
in Russia, Ukraine, and Belarus, which were placed on nonaccrual status due to
the ongoing Russia-Ukraine conflict.

IMAX maintenance


For the three months ended September 30, 2022, IMAX Maintenance segment revenues
increased by $0.9 million (7%) while the gross margin decreased by $0.1 million
(1%), when compared to the same period in the prior year. The overall increase
in IMAX Maintenance segment revenue is due to normalizing revenues as theaters
reopen following the earlier stages of the COVID-19 pandemic, partially offset
by a decrease of $0.4 million in revenue associated with theaters in Russia,
Ukraine, and Belarus, which were placed on nonaccrual status due to the ongoing
Russia-Ukraine conflict. The decrease in gross margin is primarily the result of
increased costs incurred in preparation for the strong pipeline of blockbuster
releases in the remainder of 2022.

Maintenance margins vary depending on the mix of theater system configurations
in the theater network, volume-pricing related to larger relationships and the
timing and the date(s) of installation and/or service.

                                       66
--------------------------------------------------------------------------------

Film distribution and post-production


For the three months ended September 30, 2022, Film Distribution and
Post-Production revenues increased by $0.5 million (28%) while gross margin
decreased by $2.5 million, when compared to the same period in the prior year.
The margin loss in the third quarter of 2022 is primarily the result of costs
incurred to produce, market and distribute live events and documentary content
during the period. These costs include infrastructure costs, depreciation
expense and network connection fees of $1.0 million to operate the IMAX
connected network for the three months ended September 30, 2022.

selling, general and administrative expenses


The following table presents information about the Company's Selling, General
and Administrative Expenses for the three months ended September 30, 2022 and
2021:

                                          Three Months Ended
                                             September 30,                   Variance
(In thousands of U.S. Dollars)            2022           2021            $              %
Total selling, general and
administrative expenses                $   32,905     $   28,377     $   4,528              16 %
Less: Share-based compensation(1)           4,985          5,706          (721 )           (13 %)
Total selling, general and
administrative expenses, excluding
share-based compensation               $   27,920     $   22,671     $   5,249              23 %




(1)
A portion of share-based compensation expense is recognized within Costs and
Expenses Applicable to Revenue and Research and Development. (See Note 13 of
Notes to Condensed Consolidated Financial Statements.)

The increase in Selling, General and Administrative Expenses reflects the
Company's higher level of business activity in the current period, as the
effects of the COVID-19 pandemic continue to subside, resulting in higher staff
costs, marketing expenses, and other expenses. Also influencing the comparison
to the prior period are a $1.4 million decrease in COVID-19 government relief
benefits, $1.0 million in professional fees incurred in the third quarter of
2022 in connection with the acquisition of SSIMWAVE, and $0.6 million resulting
from unfavorable foreign currency exchange rate movements.

Research and Development


A significant portion of the Company's recent research and development efforts
have been focused on its laser-based projection systems, which the Company
believes present greater brightness and clarity, higher contrast, a wider color
gamut and deeper blacks, consume less power and last longer than other digital
projection technologies, and are capable of illuminating the largest screens in
the IMAX network. To a lesser extent, the Company's recent research and
development efforts have also focused on image enhancement technology,
developing technologies and systems to help bring additional interactivity to
its IMAX theater network.

For the three months ended September 30, 2022, Research and Development expenses
decreased by $0.9 million (45%), when compared to the same period in the prior
year.

The Company intends to continue research and development to further evolve its
end-to-end technology. This includes bringing connectivity to the Company's
global theater network and experimenting with live and interactive events
worldwide; developing new IMAX film cameras and certifying additional digital
cameras; further improving its proprietary DMR process for the delivery of
content for both theatrical (including local language content) and home
entertainment; and further improving the reliability of its projectors, as well
as enhancing the Company's image and sound quality. In addition, teams from IMAX
and SSIMWAVE are working to expand existing and/or develop new technologies
which further enhance video quality, delivery, and creation across all devices.


                                       67
--------------------------------------------------------------------------------

Loan Loss Costs, Net


For the three months ended September 30, 2022, the Company recorded current
expected credit losses of $0.8 million, as compared to a net reversal of current
expected credit losses of $3.3 million recognized in the prior year due to an
improvement in the outlook for theater operators as the theatrical exhibition
industry began to recover from the COVID-19 global pandemic.

Management's judgments regarding expected credit losses are based on the facts
available to management at the time that the Condensed Consolidated Financial
Statements are prepared 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.

(See Notes 1 and 5 to the Condensed Consolidated Financial Statements.)

interest expense


For the three months ended September 30, 2022, interest expense was $1.3
million, representing a decrease of $0.2 million (14%) when compared to interest
expense of $1.5 million during the same period of the prior year. This decrease
is principally due to repayments of revolving credit facility borrowings made in
the prior year.

Income Taxes

For the three months ended September 30, 2022, the Company recorded income tax
expense of $2.3 million (2021 - $4.4 million). The Company's effective tax rate
for the three months ended September 30, 2022 of (43.4)% differs from the
Canadian statutory tax rate of 26.5% primarily due to the fact that the Company
recorded an additional $4.3 million valuation allowance against deferred tax
assets in jurisdictions where management cannot reliably forecast that
sufficient future tax liabilities will arise in specific jurisdictions, which
includes the impact of the COVID-19 pandemic. Accordingly, the tax benefit
associated with the current period losses in these jurisdictions is not
ultimately reflected in the Company's Condensed Consolidated Statements of
Operations.

(See note 12 of the notes to the condensed consolidated financial statements.)

Non-Controlling Interests


The Company's Condensed Consolidated Financial Statements primarily include the
non-controlling interest in the net income or loss of IMAX China, as well as the
impact of non-controlling interests in the activity of its Original Film Fund
subsidiary. For the three months ended September 30, 2022, the net income
attributable to non-controlling interests of the Company's subsidiaries was $1.2
million (2021 - $2.0 million).

                                       68
--------------------------------------------------------------------------------

Operating results for the past nine months 09/30/2022 and 2021

Net loss attributable to common shareholders and adjusted net loss


The following table presents the Company's net loss attributable to common
shareholders and the associated per share amounts, as well as adjusted net loss
attributable to common shareholders* and adjusted net loss attributable to
common shareholders per share* for the nine months ended September 30, 2022 and
2021:

                                                             Nine Months Ended September 30,
                                                          2022                            2021
(In thousands of U.S. Dollars, except per                          Per                             Per
share amounts)                                                   Diluted                         Diluted
                                                Net Loss          Share         Net Loss          Share
Net loss attributable to common shareholders    $ (25,413 )     $   (0.44 )     $ (32,429 )     $   (0.55 )
Adjusted net loss attributable to common
shareholders*                                   $  (7,349 )     $   (0.13 ) 

$(26,813) $(0.44)



During the nine months ended September 30, 2022, the Company recorded a net
non-cash provision of $6.9 million, or $0.12 per share, due to an increase in
reserves given the uncertainty of collecting receivables in Russia. This
provision was taken due to the ongoing conflict in Ukraine and covers
substantially all of the Company's net receivable exposure in the Russian
market. Excluding the impact of this provision, net loss attributable to common
shareholders* was $(18.5) million, or $(0.32) per share, and adjusted net loss
attributable to common shareholders* was $(0.5) million, or $(0.01) per share.
Over the past five years, Russia has represented on average approximately 3% of
the GBO generated by IMAX films.

Revenue and Gross Margin


During the nine months ended September 30, 2022, the Company's revenues and
gross margin increased by $56.4 million (39%) and $37.1 million (53%),
respectively, when compared to same period in 2021 principally due to the
strength of the GBO performance of the IMAX Technology Network through the
distribution of films such as Top Gun: Maverick, Doctor Strange in the
Multiverse of Madness, The Batman, Jurassic World Dominion, Thor: Love and
Thunder, The Battle at Lake Changjin 2, Spider-Man: No Way Home, and Fantastic
Beasts: The Secrets of Dumbledore. Also contributing to the improvement versus
the prior year is a $6.3 million (41%) improvement in IMAX Maintenance gross
margin due to the continued global reopening of the IMAX theater network amidst
the ongoing recovery of the theatrical exhibition industry from earlier stages
of the COVID-19 pandemic. However, these factors were partially offset by a
lower level of IMAX Theater System installations in the period due, in part, to
the impact of COVID-related restrictions in China.


* See “Non-GAAP Financial Measures” below for a description of this non-GAAP financial measure and a reconciliation to the GAAP most comparable amount.

                                       69
--------------------------------------------------------------------------------

The following table presents the company’s revenue and gross margin (loss on margin) by category and reportable segment for the trailing nine months 09/30/2022 and 2021:


                                                   Revenue                 Gross Margin (Margin Loss)
(In thousands of U.S. Dollars)               2022          2021             2022                2021
IMAX Technology Network
IMAX DMR                                   $  67,064     $  39,438     $       42,965       $      22,405
JRSA, contingent rent                         43,708        26,108             25,389               7,299
                                             110,772        65,546             68,354              29,704
IMAX Technology Sales and Maintenance
IMAX Systems(1)                               32,806        35,117             18,432              21,646
JRSA, fixed fees                               2,486         3,776                 79                 783
IMAX Maintenance                              43,564        33,196             21,643              15,360
Other Theater Business(2)                      3,697         1,283                314                 269
                                              82,553        73,372             40,468              38,058

Film distribution and post-production 5,418 4,001

    (3,470 )               997
Sub-total for reportable segments            198,743       142,919            105,352              68,759
All Other(3)                                   4,016         3,392              2,156               1,612
Total                                      $ 202,759     $ 146,311     $      107,508       $      70,371




(1)
The revenue from this segment includes the initial upfront payments and the
present value of fixed minimum payments from sale and sales-type lease
arrangements of IMAX Theater Systems, as well as the present value of estimated
variable consideration from sales of IMAX Theater Systems. To a lesser extent,
the revenue from this segment also includes finance income associated with these
revenue streams.

(2)

Revenues from this segment mainly include after-market sales of IMAX cinema system parts and 3D glasses.

(3)

All Other includes the results from IMAX Enhanced, SSIMWAVE, and other ancillary
activities. In the first quarter of 2022, the Company's internal reporting was
updated to reclassify the results of IMAX Enhanced out of the New Business
Initiatives segment into All Other for segment reporting purposes. Prior period
comparatives have been revised to conform with the current period presentation.
The results of SSIMWAVE, which was acquired on September 22, 2022, were not
material to the period. (See "SSIMWAVE" under "Sources of Revenue - All Other"
and Note 4 of Notes to Condensed Consolidated Financial Statements for
additional information related to the Company's acquisition of SSIMWAVE.)

IMAX technology network


IMAX Technology Network results are influenced by the level of commercial
success and box office performance of the films released to the IMAX network, as
well as other factors including the timing of the films released, the length of
the theatrical distribution window, the take rates under the Company's DMR and
joint revenue sharing arrangements and the level of marketing spend associated
with the films released in the year. Other factors impacting IMAX Technology
Network results include fluctuations in the value of foreign currencies versus
the U.S. Dollar.

For the nine months ended September 30, 2022, IMAX Technology Network revenues
and gross margin increased by $45.2 million (69%) and $38.7 million (130%),
respectively, when compared to the same period in 2021. See below for separate
discussions of IMAX DMR and JRSA contingent rent segment results for the period.

IMAX DMR


For the nine months ended September 30, 2022, IMAX DMR revenues and gross margin
increased by $27.6 million (70%) and $20.6 million (92%), respectively, when
compared to the same period in 2021. These increases are primarily due to the
strong performance of the films distributed through the IMAX network, which
resulted in a $237.4 million (66%) increase in GBO during the nine months ended
September 30, 2022, from $360.7 million to $598.1 million. This overall
improvement in GBO for the period was partially offset by unfavorable foreign
currency exchange rate movements. During the nine months ended September 30,
2022, GBO was generated by the exhibition of 68 films (53 new, 10 carryovers,
and 5 re-releases), including Top Gun: Maverick, which generated GBO of $109.6
million in the period. During the nine months ended September 30, 2021, GBO was
generated by the exhibition of 57 films (47 new, 6 carryovers, and 4
re-releases).

                                       70
--------------------------------------------------------------------------------


In addition to the level of revenues, IMAX DMR gross margin is also influenced
by the costs associated with the films exhibited in the period, and can vary
from period-to-period, especially with respect to marketing expenses. For the
nine months ended September 30, 2022, marketing expenses were $9.1 million, as
compared to $5.8 million during the same period in 2021.

Joint Revenue Sharing Arrangements – Conditional Lease


For the nine months ended September 30, 2022, JRSA contingent rent revenue and
gross margin increased by $17.6 million (67%) and $18.1 million (248%),
respectively, when compared to the same period in 2021. These increases are
largely due to a $112.6 million (57%) increase in GBO generated by theaters
under joint revenue sharing arrangements during the nine months ended September
30, 2022, from $196.8 million to $309.4 million.

In addition to the level of revenues, JRSA contingent rent margin is also
influenced by the level of costs associated with such arrangements, such as
depreciation expense related to the underlying theater systems and costs
incurred to upgrade theater systems from IMAX Xenon Theater Systems to IMAX
Laser Theater Systems, as well as advertising, marketing and commission costs
primarily for the launch of new theaters. The level of depreciation expense in a
period relative to the prior year is generally a function of the growth of the
theater network and the mix of theater system configurations in the network. For
the nine months ended September 30, 2022, JRSA gross margin included
depreciation expense of $16.6 million, which was consistent with the same period
of the prior year. The lower level of depreciation expense in the current period
is due, in part, to the effect of lease term extensions entered into with
exhibitor customers as a result of the COVID-19 global pandemic, partially
offset by incremental depreciation expense associated with a 2% increase in the
number of theaters operating under joint revenue sharing arrangements. For the
nine months ended September 30, 2022, JRSA gross margin includes advertising,
marketing and commission costs of $1.0 million, as compared to $1.6 million in
the same period in 2021.

Sale and maintenance of IMAX technology


The primary drivers of IMAX Technology Sales and Maintenance results are the
number of IMAX Theater Systems installed in a period, and the level of gross
margin percentage earned on each installation, as well as the associated
maintenance contracts that accompany each theater installation. The installation
of IMAX Theater Systems in newly built theaters or multiplexes, which make up a
large portion of the Company's theater system backlog, depends primarily on the
timing of the construction of those projects, which is not under the Company's
control.

For the nine months ended September 30, 2022, IMAX Technology Sales and
Maintenance revenue and gross margin increased by $9.2 million (13%) and $2.4
million (6%), respectively, when compared to the same period in the prior year.
See below for separate discussions of IMAX Systems and IMAX Maintenance segment
results for the period.

                                       71
--------------------------------------------------------------------------------


The following table provides detailed information about the mix of IMAX Theater
Systems installed and recognized during the nine months ended September 30, 2022
and 2021:

                                                         For the Nine Months Ended September 30,
                                                        2022                                2021
(In thousands of U.S. Dollars, except       Number of                              Number of
number of systems)                           Systems            Revenue             Systems        Revenue
New IMAX Theater Systems:
Sale and sales-type lease
arrangements(1)                                      14       $     13,552                  17     $ 22,264
JRSA - hybrid                                         5              2,508                   6        3,561
Total new IMAX Theater Systems(2)                    19             16,060                  23       25,825

IMAX Theater System upgrades:
Sale and sales-type lease
arrangements(1)                                       3              4,452                   2        2,753
JRSA - hybrid                                         -                  -                   1          775
Total upgraded IMAX Theater Systems                   3              4,452                   3        3,528

Total                                                22       $     20,512                  26     $ 29,353




(1)
The arrangement for the sale of an IMAX Theater System includes fixed upfront
and ongoing consideration, including indexed annual minimum payment increases
over the term of the arrangement, as well as an estimate of the contingent fees
that may become due if certain annual minimum box office receipt thresholds are
exceeded.

(2)

Includes four IMAX Xenon Theater Systems that were relocated from their original
location, which are subject to sales and sales-type lease arrangements (2021 -
nil). When a theater system under a sales or sales-type lease arrangement is
relocated, the amount of revenue earned by the Company may vary from
transaction-to-transaction and is usually less than the amount earned for a new
sale. In certain situations when a theater system is relocated, the original
location is upgraded to an IMAX Laser Theater System.

The average revenue per IMAX Theater System under sale and sales-type lease
arrangements varies depending upon the number of IMAX Theater System commitments
with a single respective exhibitor, an exhibitor's location and various other
factors. The average revenue per full (i.e., excluding JRSA hybrid arrangements
and relocations), new IMAX Theater System under sale and sales-type lease
arrangements was $1.2 million for the nine months ended September 30, 2022, as
compared to $1.3 million during the same period of the prior year.

IMAX systems


For the nine months ended September 30, 2022, IMAX Systems revenue and gross
margin decreased by $2.3 million (7%) and $3.2 million (15%), respectively, when
compared to the same period of the prior year. The lower level of revenue and
gross margin is the result of four fewer IMAX Theater System installations,
including upgrades, in the current period and a decrease of $0.9 million in
Finance Income associated with theaters in Russia, Ukraine, and Belarus, which
were placed on nonaccrual status due to the ongoing Russia-Ukraine conflict.
These factors are partially offset by an increase of $5.6 million due to the
impact of amendments to existing theater system arrangements.

IMAX maintenance


For the nine months ended September 30, 2022, IMAX Maintenance segment revenues
and gross margin increased by $10.4 million (31%) and $6.3 million (41%),
respectively, when compared to the same period in the prior year, due to the
continued global reopening of the IMAX theater network amidst the ongoing
recovery of the theatrical exhibition industry from earlier stages of the
COVID-19 pandemic. The overall increase in IMAX Maintenance segment revenues and
gross margin is partially offset by a decrease of $1.2 million in revenue
associated with theaters in Russia, Ukraine, and Belarus, which were placed on
nonaccrual status due to the ongoing Russia-Ukraine conflict.

Maintenance margins vary depending on the mix of theater system configurations
in the theater network, volume-pricing related to larger relationships and the
timing and the date(s) of installation and/or service.

                                       72
--------------------------------------------------------------------------------

Film distribution and post-production


For the nine months ended September 30, 2022, Film Distribution and
Post-Production revenues increased by $1.4 million (35%) while gross margin
decreased by $4.5 million, respectively, when compared to the same period of the
prior year. The margin loss is primarily the result of costs incurred to
produce, market and distribute live events and documentary content during the
period. These costs include infrastructure costs, depreciation expense and
network connection fees of $1.6 million to operate the IMAX connected network
for the nine months ended September 30, 2022.

selling, general and administrative expenses


The following table presents information about the Company's Selling, General
and Administrative Expenses for the nine months ended September 30, 2022 and
2021:

                                           Nine Months Ended
                                             September 30,                   Variance
(In thousands of U.S. Dollars)            2022           2021            $             %
Total selling, general and
administrative expenses                $  100,181     $   82,393     $  17,788             22 %

Less: Share-based payments(1) 17,974 17,046 928

              5 %
Total selling, general and
administrative expenses, excluding
share-based compensation               $   82,207     $   65,347     $  16,860             26 %




(1)

A portion of the stock-based compensation expense is recognized in revenue and research and development costs and expenses. (See Note 13 to the Condensed Consolidated Financial Statements.)


The increase in Selling, General and Administrative Expenses reflects the
Company's higher level of business activity in the current period, as the
effects of the COVID-19 pandemic continue to subside, resulting in higher staff
costs, marketing expenses, and other expenses. Also influencing the comparison
to the prior period was $4.1 million resulting from unfavorable foreign currency
exchange rate movements, a decrease of $3.9 million in COVID-19 government
relief payments, and $1.0 million in professional fees incurred in the third
quarter of 2022 in connection with the acquisition of SSIMWAVE.

Research and Development


A significant portion of the Company's recent research and development efforts
have been focused on its laser-based projection systems, which the Company
believes present greater brightness and clarity, higher contrast, a wider color
gamut and deeper blacks, consume less power and last longer than other digital
projection technologies, and are capable of illuminating the largest screens in
the IMAX network. To a lesser extent, the Company's recent research and
development efforts have also focused on image enhancement technology,
developing technologies and systems to help bring additional interactivity to
its IMAX theater network.

For the nine months ended 09/30/2022Research and development costs decreased by $2.0 million (36%) compared to last year.


The Company intends to continue research and development to further evolve its
end-to-end technology. This includes bringing connectivity to the Company's
global theater network and experimenting with live and interactive events
worldwide; developing new IMAX film cameras and certifying additional digital
cameras; further improving its proprietary DMR process for the delivery of
content for both theatrical (including local language content) and home
entertainment; and further improving the reliability of its projectors, as well
as enhancing the Company's image and sound quality. In addition, teams from IMAX
and SSIMWAVE are working to expand existing and/or develop new technologies
which further enhance video quality, delivery, and creation across all devices.

Loan Loss Costs, Net


For the nine months ended September 30, 2022, the Company recorded current
expected credit losses of $8.1 million, principally due to reserves established
against substantially all of its receivables in Russia due to uncertainties
associated with the ongoing Russia-Ukraine conflict, partially offset by the
reversal of provisions associated with the COVID-19 pandemic as the outlook for
the theatrical exhibition industry in Domestic and Rest of World markets
continues to improve.


                                       73
--------------------------------------------------------------------------------


For the nine months ended September 30, 2021, the Company recorded a net
reversal of current expected credit losses of $4.9 million, principally due to
the reversal of previously recorded credit loss expense as a result of an
improving outlook for theater operators following the reopening of theaters and
the resumption of normal film release schedules as the theatrical exhibition
industry continues to recover from the COVID-19 global pandemic, as well as
better than anticipated collection experience with respect to foreign studio
receivable balances.

Asset Impairment

On January 10, 2022, IMAX (Shanghai) Culture and Technology Co., Ltd, a
wholly-owned subsidiary of IMAX China, entered into a joint film investment
agreement with Wanda Film (Horgos) Co. Ltd. to invest RMB 30.0 million ($4.7
million) in the movie Mozart from Space, which was released on July 15, 2022.
Pursuant to the investment agreement, IMAX (Shanghai) Culture and Technology
Co., Ltd. has the right to receive a share of the profits or losses of the film
distribution. IMAX (Shanghai) Culture and Technology Co., Ltd.'s commitment is
limited to its investment and has no further obligation if the actual movie
production cost exceeds the original budget. The investment meets the criteria
for classification as a financial asset. The investment is measured at amortized
cost less impairment losses and is recorded within Other Assets in the Condensed
Consolidated Balance Sheets.

For the nine months ended 09/30/2022the company recorded a complete impairment of its 30.0 million RMB ($4.5 million) Invest in Mozart from Space based on projected box office results and cost of sales.

Court Judgment and Arbitration Awards


In the nine months ended September 30, 2021, the Company recorded a $1.8 million
benefit within Legal Judgment and Arbitration Awards as a result of the
settlement of the Giencourt matter, as discussed in Note 9(b)(ii) of Notes to
Condensed Consolidated Financial Statements. There was no comparable amount
recorded during 2022.

Realized and Unrealized Investment Gains


In the first quarter of 2019, IMAX China (Hong Kong), Limited, a wholly-owned
subsidiary of IMAX China, entered into a cornerstone investment agreement with
Maoyan Entertainment ("Maoyan") and purchased equity securities for $15.2
million. In February 2021, IMAX China (Hong Kong), Limited sold all of its
shares of Maoyan and recognized a gain of $5.2 million.

interest expense


For the nine months ended September 30, 2022, interest expense was $4.4 million,
representing a decrease of $1.2 million (21%) as compared to $5.5 million during
the same period of the prior year. This decrease is principally due to
repayments of revolving credit facility borrowings made in the prior year,
partially offset by the expensing of $0.4 million in unamortized deferred
financing costs associated with lenders that are no longer parties to the Credit
Agreement. (See Note 8 of Notes to Condensed Consolidated Financial Statements.)

income tax


For the nine months ended September 30, 2022, the Company recorded income tax
expense of $8.1 million (2021 - $9.4 million). The Company's effective tax rate
for the nine months ended September 30, 2022 of (51.0)% differs from the
Canadian statutory tax rate of 26.5% primarily due to the fact that the Company
recorded an additional $14.7 million valuation allowance against deferred tax
assets in jurisdictions where management cannot reliably forecast that
sufficient future tax liabilities will arise in specific jurisdictions, which
includes the impact of the COVID-19 pandemic. Accordingly, the tax benefit
associated with the current period losses in these jurisdictions is not
ultimately reflected in the Company's Condensed Consolidated Statements of
Operations.

(See note 12 of the notes to the condensed consolidated financial statements.)

Non-Controlling Interests


The Company's Condensed Consolidated Financial Statements primarily include the
non-controlling interest in the net income or loss of IMAX China, as well as the
impact of non-controlling interests in the activity of its Original Film Fund
subsidiary. For the nine months ended September 30, 2022, the net income
attributable to non-controlling interests of the Company's subsidiaries was $1.5
million (2021 - $9.5 million).


                                       74
--------------------------------------------------------------------------------

CASH FLOWS FOR THE PAST NINE MONTHS SEPTEMBER 30, 2022 AND 2021

operational activities


The net cash used in or provided by the Company's operating activities is
affected by a number of factors, including: (i) the level of cash collections
from customers in respect of existing IMAX Theater System sale and lease
agreements, (ii) the amount of upfront payments collected in respect of IMAX
Theater System sale and lease agreements in backlog, (iii) the box-office
performance of films distributed by the Company and/or released to IMAX
theaters, (iv) the level of inventory purchases, and (v) the level of the
Company's operating expenses, including expenses for research and development
and new business initiatives.

For the nine months ended September 30, 2022, net cash provided by the Company's
operating activities totaled $0.5 million, as compared to net cash used in
operating activities of $19.6 million in the same period of the prior year. For
the nine months ended September 30, 2022, the net cash provided by the Company's
operating activities is principally due to cash collected from cash earnings in
the period, as well as in respect of Financing and Variable Consideration
Receivables, partially offset by an increase in Accounts Receivable of $18.1
million as a result of revenue growth attributable to the strength of the box
office performance of the films distributed through the IMAX network, $10.1
million spent on inventory purchases, and $14.2 million spent in connection with
the development of Film Assets.

For the nine months ended September 30, 2021, the net cash used in the Company's
operating activities was principally due to a significant increase in Accounts
Receivable of $24.3 million as a result of theaters reopening amidst the early
stages of recovery from the COVID-19 pandemic, $10.0 million spent in connection
with the development of Film Assets, as well as a $9.5 million payment made in
the second quarter of 2021 in connection with the settlement of the Giencourt
matter, as discussed in Note 9(b)(ii) of Notes to Condensed Consolidated
Financial Statements.

investment activity


For the nine months ended September 30, 2022, net cash used in investing
activities totaled $40.4 million, as compared to net cash provided by investing
activities of $6.7 million in the same period of the prior year. For the nine
months ended September 30, 2022, the net cash used in investing activities is
primarily driven by $12.6 million paid for the acquisition of SSIMWAVE, net of
cash and cash equivalents acquired, $14.5 million invested in equipment to be
used in the Company's joint revenue sharing arrangements with exhibitors (2021 -
$5.4 million), $4.7 million invested by IMAX (Shanghai) Culture and Technology
Co., Ltd, a wholly-owned subsidiary of IMAX China, in the movie Mozart from
Space (see "Asset Impairment" above), $5.2 million in purchases of property,
plant and equipment, and $3.2 million of intangible assets acquired, principally
related to the purchase or development of software (2021 - $3.4 million).

For the nine months ended September 30, 2021, the net cash provided by investing
activities was primarily driven by $17.8 million in cash proceeds received from
the sale of the Company's investment in Maoyan in the first quarter of 2021 (see
"Management's Discussion and Analysis of Financial Condition and Results of
Operations - Realized and Unrealized Investment Gains").

Based on management’s current operating plan for 2022, the Company expects to continue to use cash to deploy additional IMAX theater systems under joint revenue-sharing arrangements.

Capital expenditures, including the Company’s investment in revenue sharing arrangements, purchases of property, plant and equipment, acquisitions of other intangible assets and investments in films $41.9 million for the past nine months 09/30/2022compared to $21.1 million for the past nine months September 30, 2021.

financing activity


For the nine months ended September 30, 2022, net cash used in financing
activities totaled $64.6 million, as compared to $110.5 million used in
financing activities in the same period of the prior year. For the nine months
ended September 30, 2022, the net cash used in financing activities is
principally due to $56.6 million used to repurchase common shares of the Company
($53.6 million) and IMAX China ($3.0 million), $3.4 million paid to purchase
treasury stock for the settlement of restricted share units and related taxes,
$2.7 million of dividends paid to the non-controlling interests of IMAX China,
and $2.3 million in fees paid in relation to the Sixth Amended and Restated
Credit Agreement entered into by the Company during the first quarter of 2022.
(See Note 8 of Notes to Condensed Consolidated Financial Statements in Part I,
Item 1 for additional information on the Sixth Amended and Restated Credit
Agreement.)

                                       75
--------------------------------------------------------------------------------


For the nine months ended September 30, 2021, net cash used in financing
activities was principally due to the $296.6 million in repayments of revolving
credit facility borrowings, which were funded in part with a portion of the
$223.7 million in net proceeds received from the issuance of the Convertible
Notes, and the $19.1 million purchase of capped calls related to the Convertible
Notes. (See Note 8 of Notes to Condensed Consolidated Financial Statements in
Part I, Item 1 for additional information on the issuance of the Convertible
Notes and the related capped call transactions.)

LIQUIDITY AND CAPITAL RESOURCES


As of September 30, 2022, the Company's principal sources of liquidity included:
(i) its balances of cash and cash equivalents ($87.2 million); (ii) the
anticipated collection of trade accounts receivable, which includes amounts owed
under joint revenue sharing arrangements and DMR agreements with movie studios;
(iii) the anticipated collection of financing receivables due in the next 12
months under sale and sales-type lease arrangements for theaters currently in
operation; and (iv) installment payments expected in the next 12 months under
sale and sales-type lease arrangements in backlog. Under the terms of the
Company's typical sale and sales-type lease agreements, the Company receives
substantial cash payments before it completes the performance of its contractual
obligations.

In addition, as of September 30, 2022, the Company had $300.0 million in
available borrowing capacity under its Sixth Amended and Restated Credit
Agreement with Wells Fargo Bank, National Association (the "Credit Agreement"),
$26.4 million in available borrowing capacity under the IMAX (Shanghai)
Multimedia Technology Co., Ltd. ("IMAX Shanghai") revolving credit facility with
the Bank of China (the "Bank of China Facility"), and $23.8 million in available
borrowing capacity under IMAX Shanghai's revolving credit facility with HSBC
Bank (China) Company Limited, Shanghai Branch (the "HSBC China Facility"). (See
Note 8 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1
for a description of the material terms of the Credit Agreement, the Bank of
China Facility, and the HSBC China Facility.)

The Company's $87.2 million balance of cash and cash equivalents as of September
30, 2022 (December 31, 2021 - $189.7 million) includes $65.5 million in cash
held outside of Canada (December 31, 2021 - $102.1 million), of which $27.9
million was held in the People's Republic of China (the "PRC") (December 31,
2021 - $76.3 million). In 2020, management completed a reassessment of its
strategy with respect to the most efficient means of deploying the Company's
capital resources globally. Based on the results of this reassessment,
management concluded that the historical earnings of certain foreign
subsidiaries in excess of amounts required to sustain business operations would
no longer be indefinitely reinvested. In 2021, $20.4 million of historical
earnings from a subsidiary in China were distributed and, as a result, $2.0
million of foreign withholding taxes were paid to the relevant tax authorities.
During the three months ended September 30, 2022, $27.7 million of historical
earnings from a subsidiary in China were distributed and, as a result, $2.7
million of foreign withholding taxes were paid to the relevant tax authorities.
As of September 30, 2022, the Company's Condensed Consolidated Balance Sheets
include a deferred tax liability of $14.9 million for the applicable foreign
withholding taxes associated with the remaining balance of unrepatriated
historical earnings that will not be indefinitely reinvested outside of Canada.
These taxes will become payable upon the repatriation of any such earnings.

The Company forecasts its future cash flow and short-term liquidity requirements
on an ongoing basis. These forecasts are based on estimates and may be
materially impacted by factors that are outside of the Company's control
(including the factors described in "Risk Factors" in Item 1A of the Company's
2021 Form 10-K, as supplemented by the risk factors in Part II, Item 1A of this
report). As a result, there is no guarantee that these forecasts will come to
fruition and that the Company will be able to fund its operations through cash
flows from operations. In particular, the Company's operating cash flows and
cash balances will be adversely impacted if management's projections of future
signings and installations of IMAX Theater Systems and box office performance of
IMAX DMR content are not realized.

For the three and nine months ended September 30, 2022, GBO generated by films
released to the IMAX network totaled $177.1 million and $598.1 million,
respectively, surpassing the totals for the same periods in 2021 by $35.2
million (25%) and $237.4 million (66%), respectively. Although GBO results
during the three and nine months ended September 30, 2022 were impacted by the
COVID-related theater closures in China, management remains encouraged by the
overall positive trend in box office results and believes it indicates that
moviegoers are returning to theaters, and in particular IMAX theaters, where and
when theaters are open and they feel safe. Despite accounting for 1% of all
domestic screens, the IMAX network had a domestic market share of 5% for the
nine months ended September 30, 2022. Management is further encouraged by the
return of the prevalence of exclusive theatrical windows and the strong pipeline
of Hollywood movies scheduled to be released for theatrical exhibition
throughout the remainder of 2022 and into 2023.

Based on the Company’s current treasury and operating cash flows, management believes it has sufficient capital and liquidity to support anticipated operating and capital needs over the next twelve months from the date of this report.

                                       76
--------------------------------------------------------------------------------


(See "Management's Discussion and Analysis of Financial Condition and Results of
Operations - Impact of COVID-19 Pandemic" and "Risk Factors - The Company has
experienced a significant decrease in its revenues, earnings and cash flows due
to the COVID-19 pandemic and its business, financial condition and results of
operations may continue to be significantly harmed in future reporting periods"
in Part II, Item 1A.)

CONTRACTUAL OBLIGATIONS

Payments to be made by the Company under contractual obligations as of September
30, 2022 are as follows:

                                                                     Payments Due by Period
                                          Total         Less Than

(In thousand US Dollars) Commitment One Year 1 to 3 Years 3 to 5 Years Thereafter Purchase Commitments(1)

                $     42,684     $   40,012     $        2,406     $           10     $        256
Pension obligations(2)                       20,298              -                  -             20,298                -
Operating lease obligations(3)               18,496          3,675              5,892              4,284            4,645
Finance lease obligations                       960            480                480                  -                -
HSBC Facility                                 4,396          4,396                  -                  -                -
Bank of China Facility                          367            367                  -                  -                -
Federal Economic Development Loan(4)          2,777              -              1,081              1,235              461
Convertible Notes(5)                        234,600          1,150              2,300            231,150                -
Postretirement benefits obligations           2,859            109                249                246            2,255
                                       $    327,437     $   50,189     $       12,408     $      257,223     $      7,617




(1)

Represents total payments owed under binding commitments to suppliers and outstanding payments owed for supplies that have been ordered but are still invoiced.

(2)

The Company has an unfunded defined benefit pension plan, the Supplemental
Executive Retirement Plan (the "SERP"), covering its CEO, Mr. Richard L.
Gelfond. The SERP has a fixed benefit payable of $20.3 million. The table above
assumes that Mr. Gelfond will receive a lump sum payment of $20.3 million six
months after retirement at the end of the term of his current employment
agreement, which expires on December 31, 2025, in accordance with the terms of
the SERP, although Mr. Gelfond has not informed the Company that he intends to
retire at that time. (See Note 16 of Notes to Condensed Consolidated Financial
Statements in Part I, Item 1.)

(3)

Represents the minimum annual rental payments due under the entity’s operating leases.

(4)

The federal government’s economic stimulus loan will be repaid over 60 months, with the start of repayment expected to be in January 2024,. (See Note 8(c) of the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1.)

(5)

The Convertible Notes bear interest at a rate of 0.500% per annum on the
principal of $230.0 million, payable semi-annually in arrears on April 1 and
October 1 of each year. The Convertible Notes will mature on April 1, 2026,
unless earlier repurchased, redeemed or converted. (See Note 8(b) of Notes to
Condensed Consolidated Financial Statements in Part I, Item 1.)

OFF-BALANCE SHEET AGREEMENTS

There are currently no off-balance sheet arrangements that have, or are likely to have, a current or future material effect on the Company’s financial condition.

RECENTLY ISSUED ACCOUNTING STANDARDS


See Note 3 of Notes to Condensed Consolidated Financial Statements in Part I,
Item 1 for a discussion of recently issued accounting standards and their impact
on the Company's Condensed Consolidated Financial Statements.

                                       77
--------------------------------------------------------------------------------

NON-GAAP FINANCIAL MEASURES


GAAP refers to generally accepted accounting principles in the United States of
America. In this report, the Company presents financial measures in accordance
with GAAP and also on a non-GAAP basis under the SEC regulations. Specifically,
the Company presents the following non-GAAP financial measures as supplemental
measures of its performance:

Adjusted Net Loss Attributable to Common Shareholders;

Adjusted net loss per basic and diluted share attributable to common shareholders;


•
EBITDA; and

Adjusted EBITDA per credit facility.


Adjusted net loss attributable to common shareholders and adjusted net loss
attributable to common shareholders per basic and diluted share exclude, where
applicable: (i) share-based compensation; (ii) COVID-19 government relief
benefits; (iii) legal judgment and arbitration awards; (iv) realized and
unrealized investment gains or losses; (v) acquisition-related expenses, as well
as the related tax impact of these adjustments; and (vi) income taxes resulting
from management's decision to no longer indefinitely reinvest the historical
earnings of certain foreign subsidiaries.

The Company believes that these non-GAAP financial measures are important
supplemental measures that allow management and users of the Company's financial
statements to view operating trends and analyze controllable operating
performance on a comparable basis between periods without the after-tax impact
of share-based compensation and certain unusual items included in net loss
attributable to common shareholders. Although share-based compensation is an
important aspect of the Company's employee and executive compensation packages,
it is a non-cash expense and is excluded from certain internal business
performance measures.



                                       78
--------------------------------------------------------------------------------

Reconciliations of net loss and related per share amounts attributable to common shareholders to adjusted net loss attributable to common shareholders and adjusted net loss per basic and diluted share attributable to common shareholders are presented in the tables below.

© Edgar Online, Source insights

Leave a Comment