Imax Corporation

Item 1A. Risk Factors

This Form 10-Q should be read together with, and supplement, the risk factors in Item 1A Risk Factors in the Companys 2024 Form 10-K, which describes various risks and uncertainties to which the Company is or may become subject. The risk factor below updates certain risk factors included in the Companys 2024 Form 10-K in light of recent events. The below risk factor and the risk factors included in the Companys 2024 Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial also may materially adversely affect its business, financial condition and/or operating results.

The Companys business may be materially adversely affected by the imposition of tariffs and other trade barriers and retaliatory countermeasures implemented by the United States and other governments.

Recently, the U.S. government has implemented substantial and rapidly evolving changes to U.S. trade policies, including increased tariffs and changes in U.S. participation in multilateral trade agreements, while other countries, China and Canada in particular, have undertaken retaliatory measures in response to such changes. These changes could result in increased costs of goods, which may reduce our margins adversely impact the Companys operations, costs and/or require us to raise prices, decreasing customer demand for our product expenses applicable to revenues, and/or fewer imported U.S. film cash flows. While the Company does not believe these changes will materially impact its results for 2025, there can be no guarantees that further changes to U.S. trade policy and/or retaliatory actions by other countries will not occur.

Additionally, uncertainty about global trade relationships has and may continue to increase market volatility, currency exchange rate fluctuation, and economic instability, which may adversely impact the Companys results of operations. Furthermore, any resulting downturn or increase in geopolitical tensions may adversely impact consumers discretionary income and/or adversely affect consumer purchasing behavior, which could have a material adverse effect on box office receipts and on our results of operations and financial condition.

The extent and duration of increased tariffs, retaliatory actions, and the resulting impact of both on general economic conditions around the world and on the global filmed entertainment industry in particular, are uncertain and depend on numerous factors, such as the responses of and negotiations among the affected countries. As such, we cannot predict the impact to our business from any future changes to the trading relationships between the U.S. and other countries or the impact of new laws or regulations adopted by the U.S. or other countries. Furthermore, any adverse development in these areas could exacerbate risks discussed 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, Risk Factors The Company faces risks in connection with its significant presence in China and the continued expansion of its business there, and Risk Factors General political, social and economic conditions can affect the Companys business by reducing both revenues generated from existing IMAX Systems and the demand for new IMAX Systems in Part I, Item 1A of the Companys 2024 Form 10-K.