Imax IMAX Deferred Tax Assets

As of June 30, 2026, the Company’s Condensed Consolidated Balance Sheets included net deferred income tax assets of $12.5 million (December 31, 2025 — $12.6 million). Management evaluates the realizability of deferred tax assets on a quarterly basis by considering all available positive and negative evidence, including recent operating results, forecasts of future taxable income, and other relevant factors specific to our industry such as the success of new film releases. Based on the Company’s recent operating results in Canada and its expectation of continued profitability, management believes there is a reasonable possibility that sufficient positive evidence may become available within the next twelve months to support the release of some or all of the valuation allowance recorded against its Canadian deferred tax assets. However, as of June 30, 2026, management has concluded that the available positive evidence is not yet sufficient to overcome the remaining negative evidence and support realization of those deferred tax assets. Any such release would result in a material income tax benefit in the period the conclusion is reached. At December 31, 2025, the amount of the Canadian valuation allowance was $55.5 million. The timing and amount of a valuation allowance release will depend on the Company’s ability to generate sufficient taxable income in Canada, macroeconomic conditions, and other factors affecting management’s assessment.