UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 11-K

þ		ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the fiscal year ended December 31, 2007

o		TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

for the transition period from            to

A.

Full title of the plan and the address of the plan, if different from that of the issuer named below:

IMAX CORPORATION
401(k) RETIREMENT PLAN

B.

Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

IMAX CORPORATION
2525 Speakman Drive
Mississauga, Ontario L5K 1B1

 

 

IMAX CORPORATION 401(k) RETIREMENT PLAN

TABLE OF CONTENTS OF INFORMATION REQUIRED IN REPORT

ITEM 4. Financial Statements and Supplemental for the Plan

The IMAX Corporation 401(k) Retirement Plan (the “Plan”) is subject to the Employee Retirement Income Security Act of 1974 (“ERISA”). In lieu of the requirements of Items 1-3 of this Form, the Plan is filing the financial statements and supplemental schedules prepared in accordance with the financial reporting requirements of ERISA. The Plan financial statements and supplemental schedules for the year ended December 31, 2007 are included as Exhibit 99.1 to this report on Form 11-K and are incorporated herein by reference. The Plan financial statements and supplemental schedules have been examined by PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm, and their report is included therein.

				Page
Signatures					2
EXHIBITS
23.1		Consent of Independent Registered Public Accounting Firm			3
99.1		Financial Statements and Supplemental Schedules of the IMAX Corporation 401(k) Retirement Plan for the year ended December 31, 2007, prepared in accordance with the financial reporting requirements of ERISA			4

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees of the IMAX Corporation 401(k) Retirement Plan have duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Exhibit 23.1

PRICEWATERHOUSECOOPERS LLP

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 333-134811) of IMAX Corporation of our report dated July 11, 2008 relating to the financial statements and financial statement schedules of the IMAX Corporation 401(k) Retirement Plan, which appears in this Form 11-K.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP
Toronto, Ontario
July 11, 2008

EXHIBIT 99.1

Index to Financial Statements and Supplemental Schedules of the
IMAX Corporation 401(k) Retirement Plan

		Page(s)
Report of Independent Registered Public Accounting Firm			5
Financial Statements
Statements of Net Assets Available for Benefits as at December 31, 2007 and 2006			6
Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2007			7
Notes to Financial Statements			8-13
Additional Information
Schedule H, Line 4i — Schedule of Assets (Held at End of Year) as at December 31, 2007			14

Report of Independent Registered Public Accounting Firm

To the Participants and Administrator of
IMAX Corporation 401k Retirement Plan

In our opinion, the accompanying statements of net assets available for benefits and the related statements of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of IMAX Corporation 401k Retirement Plan (the “Plan”) at December 31, 2007 and 2006, and the changes in net assets available for benefits for the year ended December 31, 2007 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule of Assets (Held at End of Year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP
Toronto, Canada
July 11, 2008

IMAX Corporation 401(k) Retirement Plan
Statements of Net Assets Available for Benefits
December 31, 2007 and 2006

		2007				2006
Assets
Investments at fair value
Interest-bearing cash		$	109			$	137
IMAX common shares			3,141				2,219
Common collective trusts			1,335,862				1,353,069
Mutual funds			6,305,567				5,992,190
Participant loans			63,867				72,686
Total investments		$	7,708,546			$	7,420,301
Receivables
Participant contributions		$	16,705			$	42,790
Employer contributions			45,772				93,659
Total receivables		$	62,477			$	136,449
Total assets		$	7,771,023			$	7,556,750
Liabilities
Refunds from over-contribution (Note 6)		$	—			$	6,720
Net Assets
Net assets available for benefits at fair value		$	7,771,023			$	7,550,030
Adjustment from fair value to contract value for interest in the ABN AMRO Income Plus Fund collective trust relating to fully benefit-responsive investment contracts (Notes 2 and 9)			6,495				6,341
Net assets available for benefits at contract value		$	7,777,518			$	7,556,371

The accompanying notes are an integral part of these financial statements.

IMAX Corporation 401(k) Retirement Plan
Statement of Changes in Net Assets Available for Benefits
Year Ended December 31, 2007

		2007
Additions to net assets attributed to
Investment Income
Net depreciation in fair value of investments (Note 3)		$	(413,234	)
Interest and dividends			870,990
Other			1,128
			458,884
Contributions
Employer’s			138,769
Participants’			475,870
Total contributions		$	614,639
Total additions		$	1,073,523
Deductions from net assets attributed to
Benefits paid to participants		$	837,422
Administrative expenses			960
Loan withdrawals			13,994
Total deductions		$	852,376
Net increase in net assets available for benefits		$	221,147
Net assets available for benefits
Beginning of year		$	7,556,371
End of year		$	7,777,518

The accompanying notes are an integral part of these financial statements.

IMAX Corporation 401(k) Retirement Plan
Notes to Financial Statements
December 31, 2007 and 2006

1.  Description of the Plan

The following brief description of the IMAX Corporation 401(k) Retirement Plan (the “Plan”) is provided for general information purposes only. For a more complete description of the Plan’s provisions, participants should refer to the Plan agreement.

     General

The Plan was established by IMAX Corporation (the “Company”) effective January 1, 1993. The Plan is a defined contribution retirement plan covering all eligible employees of the Company who are not covered by a collective bargaining agreement, and is subject to the provisions of the Employee Retirement Income Security Act (“ERISA”) of 1974 and the Internal Revenue Code.

     Eligibility

Employees of the Company are eligible to participate in the Plan after completing one year and at least 1,000 hours of service and at twenty-one years of age.

     Contributions

The Plan allows participants to contribute an amount up to 60% of their annual compensation, not to exceed the ceiling imposed by the Internal Revenue Service of $15,500 for 2007, as prescribed by the Plan agreement. Participants may contribute to the Plan any portion of lump-sum distributions received from other qualified plans when the contributions qualify as a tax-free rollover. A participant who has attained age 50 before the close of the respective Plan year, is eligible to make unmatched catch-up contributions up to a maximum of $5,000 for 2007. The Company will match 100% of the participants’ contributions, not to exceed 2% of their total compensation. Additionally, employer contributions may be contributed at the discretion of the Company’s management. In March 2008, the Company made discretionary contributions in an amount of $41,819 to the 2007 Plan year, which are included in the employer contributions receivable balance as at December 31, 2007 (December 31, 2006 - $83,420).

     Vesting

Participants are vested immediately in their contributions plus actual earnings thereon. Vesting in the employer contribution portion of their accounts is based on years of continuous service, except for discretionary contributions which are vested immediately, as follows:

		Vesting
Years of Service		Percentage
Less than 1			0%
1			25%
2			50%
3 or more			100%

Participants will be immediately vested upon the occurrence of certain events such as reaching normal retirement age, reaching early retirement age and completing 5 years of vesting service, becoming disabled and upon death.

IMAX Corporation 401(k) Retirement Plan
Notes to Financial Statements
December 31, 2007 and 2006

1.  Description of Plan (cont’d)

Participant accounts

Separate fund accounts are maintained for each Plan participant. Participants may direct the investment of their contributions in 1% increments in any of several investment fund alternatives, which include mutual funds, a common collective trust and the IMAX Stock Fund.

Participants may, in accordance with the rules of the Plan, transfer existing balances among the available investments funds, and/or redirect their current contributions into different funds, daily. A participant may increase or decrease, at any time, the percentage of salary reduction elected, effective the first day of each payroll period. Contributions may be suspended at any time.

Each participant’s account is credited with the participant’s and the Company’s contributions and investment earnings, and charged with investment losses. The benefit to which a participant is entitled is equal to the amount of the participant’s vested account balance.

     Participant loans

Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum of $50,000 or 50% of their vested account balance, whichever is less. The loans are collateralized by the balance in the participant’s account and bear interest at rates commensurate with local prevailing rates as determined annually by the plan administrator. The loans outstanding at December 31, 2007 bear interest rates at 5.50% — 8.25% (5.00% — 8.25% for December 31, 2006). Loans may not exceed five years and home loans may not exceed 10 years.

     Benefit provisions

Normal retirement age is 65, at which time participants are entitled to 100% of their account balance. Vested amounts are distributable upon termination, death, undue financial hardship or the termination of the Plan.

     Forfeitures

Participants not fully vested in employer contributions upon termination of employment forfeit their non-vested balances when they incur a forfeiture break in service. A forfeiture break in service is a period of five consecutive vesting service periods in which a participant completes fewer than a minimum number of hours, as defined by the Plan, in each vesting service period comprising the five-year period. The forfeitures are retained in the Plan and are used to either pay administrative expense or reduce future employer contributions payable under the Plan. At December 31, 2007 and 2006, unallocated forfeited non-vested accounts totaled $2,225 and $12,694, respectively. During 2007 and 2006, $17,759 and $221 of forfeited unallocated assets were used to reduce employer contributions or pay administrative expenses, respectively.

     Administrative expenses

Administrative expenses incurred in connection with the administration of the Plan are generally paid for by the Company. Other administrative expenses incurred relate to specific transactions requested by participants and are paid for out of the respective participant accounts. The total amount of administrative expenses paid by Plan participants as of December 31, 2007 was $960 (December 31, 2006 — $1,536).

     Plan Termination

Although it has not expressed any intent to do so, the Company has the right to terminate the Plan at any time subject to the provisions of ERISA. In the event of Plan termination, participants would become fully vested in their accounts as of the effective date of termination.

IMAX Corporation 401(k) Retirement Plan
Notes to Financial Statements
December 31, 2007 and 2006

2.  Summary of Significant Accounting Policies

Basis of accounting

The accounts of the Plan are maintained on the accrual basis of accounting.

     Use of estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein, and disclosure of contingent assets and liabilities. Actual results could be materially different from these estimates.

     Benefit payments

Benefits are recorded when paid.

     Investment valuation and income recognition

Investments are reported at fair value. Investments in the common stock of IMAX Corporation, which are traded on the New York Stock Exchange, are valued using the last reported sales price prior to close of the Plan year. Investments in mutual funds are valued at the net asset value of shares held at the end of the Plan year. Investments in common collective trust funds are valued at fair value as reported in the year-end audited financial statements. Interest-bearing cash includes money market accounts valued at the net asset value of shares held by the Plan at year-end.

Loans to participants are valued at cost, plus accrued interest which approximates fair value.

Investment income of IMAX common stock, the mutual funds, and the common collective trust funds are allocated to participants based on their proportionate share of the net assets of the respective investment fund. Purchases and sales of securities are reflected on a trade-date basis. Dividend income is recorded on the ex-dividend date. Interest income is recorded on an accrual basis.

As described in Financial Accounting Standards Board Staff Position, FSP AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans (the FSP), investment contracts held by a defined-contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined-contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The Plan invests in ABN AMRO Income Plus Fund, an investment contract through a collective trust. As required by the FSP, the Statements of Net Assets Available for Benefits presents the fair value of the investment in the collective trust as well as the adjustment of the investment in the collective trust from fair value to contract value. The Statement of Changes in Net Assets Available for Benefits is prepared on a contract value basis. The Company also holds units of Principal Trust S&P 500 Index Fund, a collective trust, which is not fully benefit-responsive, thus no adjustment from fair value to contract value is required.

     Risk and uncertainty

Investments are exposed to various risks, such as interest rate and market risk. Due to the level of risk associated with certain investments and the level of uncertainty related to changes in the value of investments, it is at least reasonably possible that changes in risk in the near term could

IMAX Corporation 401(k) Retirement Plan
Notes to Financial Statements
December 31, 2007 and 2006

materially affect participants’ account balances and the amounts reported in the Statement of Net Assets Available for Benefits and the Statement of Changes in Net Assets Available for Benefits.

2.  Summary of Significant Accounting Policies (cont’d)

New Accounting Pronouncement

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 157, “Fair Value Measurements,” which is effective for years beginning after November 15, 2007 and for interim periods within those years. This statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The Plan expects to first apply the new statement during fiscal year ending December 31, 2008, and the Plan is currently evaluating the impact on its financial statements.

3.  Investments

As at December 31, the following presents investments that represent 5% or more of the Plan’s net assets at fair value:

		2007				2006
ABN AMRO Income Plus		$	422,622			$	393,898
Aston Balanced N Fund			463,466				423,398
Aston/ABM AMRO Growth N Fund			1,229,750				1,264,833
Calvert Social Inv Fund EQ			719,207				660,297
Columbia Acorn A Fund			432,751				420,741
Evergreen Special Value A			549,278				518,690
Mutual Discovery R			410,727				423,913
MFS Research International A			1,124,397				1,045,580
Principal S&P 500 Index			919,735				965,512

The Plan presents in the Statement of Changes in Net Assets Available for Benefits the net appreciation (depreciation) in fair value of investments, which consists of the realized gains and losses from the sale of investments and the unrealized appreciation (depreciation) on investments. The Plan’s investments appreciated (depreciated) in value as follows:

		Year Ended
		2007
Mutual funds		$	(414,567	)
IMAX common stock			1,333
		$	(413,234	)

4.  Related Party Transactions

Effective July 1, 2004, the Plan allowed participants to invest in shares of the IMAX Stock Fund. The Fund normally keeps over 95% of its assets in IMAX common stock with the remaining assets held in a money market fund. As at December 31, 2007, there were 460 (2006 — 593) shares

IMAX Corporation 401(k) Retirement Plan
Notes to Financial Statements
December 31, 2007 and 2006

outstanding in IMAX common stock. During 2007, 253 (2006 — 380) shares of IMAX common stock were purchased and 386 (2006 — 1,117) shares were sold.

Loans to participants as of December 31, 2007 and 2006 were $63,867 and $72,686, respectively and are also considered party-in-interest transactions.

5.  Tax Status

The Internal Revenue Service (“IRS”) issued a favorable determination letter on October 9, 2003 regarding the qualified and tax-exempt status of the Plan under Section 401 and 501 of the Internal Revenue Code. Subsequent to receipt of the favorable determination letter, the Plan was amended. The plan administrator and the Plan’s tax counsel are of the opinion that the amendments did not affect the qualified and tax-exempt status of the Plan and, accordingly, no provision has been made for income taxes.

Participants are not subject to federal or state income tax on employer matching contributions and pre-tax participant salary reduction contributions until such contributions are withdrawn or distributed. Participants are also not subject to federal or state income tax on the earnings and appreciation of the assets of the Plan until such amounts are withdrawn or distributed.

6.  Distributions of Excess Participants Contributions

In 2006, certain contributions from “highly compensated” participants of $6,720 did not comply with the participation and discrimination rules set forth in Section 401(k)(3) of the Internal Revenue Code since these contributions exceeded allowable deferral limits. These contributions were refunded in 2007. No contributions in excess of allowable deferral limits were made in 2007.

7.  Non-Exempt Transactions

The Company was in compliance with Regulation 2510.3-102 of the Department of Labor regarding the timely remittance of employee contributions to the Plan. Regulation 2510.3-102 requires that contributions by employees be remitted to the trustee as soon as possible but no later than the 15^th business day following the end of the month.

In addition, the Company was in compliance with Regulation 2510.3-102 of the Department of Labor regarding the timely remittance of discretionary employer contributions relating to the year ended December 31, 2007.

IMAX Corporation 401(k) Retirement Plan
Notes to Financial Statements
December 31, 2007 and 2006

8.  Unregistered Sale of IMAX Common Stock

The Plan has offered IMAX common stock to participants as an investment option effective July 1, 2004. The stock was required to be registered with the Securities and Exchange Commission prior to offering to participants. The Company filed a Form S-8 on June 7, 2006 to register the shares to be offered under the Plan. The Plan sponsor may be subject to claims for rescission of acquisitions of shares of the Plan sponsor’s common stock under applicable securities laws during the one year following the date of acquisition of the shares, the statute of limitations period that the Plan sponsor believes may apply to claims for rescission under applicable federal laws. The prospectus mailed to participants included disclosure of this matter. No actions have been taken by participants as of June 30, 2008.

9.  Reconciliation to Form 5500

The Net Assets Available for Benefits are presented in the Company’s financial statements at their contract value. Schedule H of Form 5500 presents Net Assets at fair value. As disclosed in the Company’s Statement of Net Assets Available for Benefits, the adjustment from fair value to contract value is $6,495 at December 31, 2007 ($6,341 — December 31, 2006).

IMAX Corporation 401(k) Retirement Plan
Schedule H, Line 4i — Schedule of Assets (Held End of Year)
As at December 31, 2007

(c)

Description of

Investment, Including

Maturity Date,

(b)

Interest Rate,

**

Lendor, Identity of Issue,

Collateral,

Number of

(d)

(e)

(a)

Borrower, or Similar Party

Par or Maturity Value

Shares/Units

Cost

Fair Value

Interest Bearing Cash:

*

Liquidity Fund

Interest Bearing Cash

$

109

Common Stock:

*

IMAX Stock

Common Stock

460

$

3,141

Common Collective Trust:

*

ABN AMRO Income Plus Fund

Common Collective Trust

65,822

$

416,127

*

Principal Trust S&P 500 Index Fund

Common Collective Trust

145,810

919,735

$

1,335,862

Mutual Funds:

*

Aston Balanced N Fund

Mutual Funds

74,036

$

463,466

*

Aston/ABM AMRO Growth N Fund

Mutual Funds

78,931

1,229,750

*

Aston/TCH Inv Grade Bond N Fund

Mutual Funds

20,723

188,588

*

Aston/Optimum Mid Cap N Fund

Mutual Funds

3,469

98,290

*

AM Funds Fdmntl Inv R4

Mutual Funds

3,564

151,089

*

Calvert Social Inv Fund EQ

Mutual Funds

18,627

719,207

*

Columbia Acorn A Fund

Mutual Funds

14,989

432,751

*

Evergreen Special Value A

Mutual Funds

26,859

549,278

*

Federated Kaufmann A

Mutual Funds

3,667

22,849

*

Mutual Discovery R

Mutual Funds

12,895

410,727

*

Hotchkis Wiley Mid Cap Value A

Mutual Funds

5,621

114,517

*

MFS International New Discovery A

Mutual Funds

8,935

217,401

*

MFS Research International A

Mutual Funds

57,779

1,124,397

*

PIMCO Real Return Bond A

Mutual Funds

10,823

118,625

*

Pioneer High Yield A

Mutual Funds

12,120

126,905

*

RS Partners Fund

Mutual Funds

3,101

95,556

*

T Rowe Price Spectrum Income

Mutual Funds

19,833

242,171

$

6,305,567

Participant Loans:

*

Participant Loans

Qualified participant loans issued; Interest rates at 5.00% - 8.25%; Range of maturities range between 5 - 10 years

$

63,867

Total Investments

$

7,708,546