IMAX intends to furlough approximately 150 employees for at least two months beginning on October 26. The move will enable the Company to temporarily reduce expenses, conserve resources and adjust its operations to reflect the lack of scheduled Hollywood releases for the remainder of 2020, and the resulting closures of multiplexes in key markets.

The furloughs will not impact IMAX operations in China and Japan, where the Company’s box office continues to make a strong recovery driven by a robust slate of local language programming scheduled through the end of the year.

The Company has disclosed that it currently has in excess of $300 million in cash.  Previously, the Company had disclosed that its cash burn in a zero-revenue environment was less than $10 million per month.  For the balance of 2020, the Company expects to generate revenues from box office in the theaters across its network that are open, the majority of which are in China and other Asian markets, as well as from new theatre system installations.  Based on these revenues, combined with the additional cost savings associated with the employee furloughs noted above, the Company estimates its average monthly cash flow both for the fourth quarter of 2020 and first quarter of 2021 to be approximately break-even.