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United States securities and exchange commission logo
March 20, 2024
Natasha Fernandes
Chief Financial Officer
IMAX CORP
902 Broadway, Floor 20
New York, NY 10010
Re: IMAX CORP
Form 10-K for
Fiscal Year Ended December 31, 2023
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File No. 001-35066
Dear Natasha Fernandes:
We have reviewed your March 12, 2024 response to our comment
letter and have the
following comments.
Please respond to this letter within ten business days by
providing the requested
information or advise us as soon as possible when you will respond. If
you do not believe a
comment applies to your facts and circumstances, please tell us why in
your response.
After reviewing your response to this letter, we may have
additional comments. Unless
we note otherwise, any references to prior comments are to comments in
our February 13,
2024 letter.
Form 10-K for the Year Ended December 31, 2023
Note 21. Segment Reporting, page 126
1. We note your responses
to comments 1 and 5. Your CODM appears to review revenue at
the component unit
level on a regular basis, which includes comparisons of actual to
budget and actual to
prior actual. Please confirm that your CODM does not also receive
any further component
unit level financial information, such as gross margin. If so, please
tell us how frequently
and the specific financial information he receives. In this regard,
we also note that the
change in segments occurred in the quarter ended March 31, 2023. It
appears that since the
quarter ended September 31, 2023, Richard Gelfond, who you
determined to be your
CODM would be receiving financial information at the component
unit level at least for
the Content Solutions segment. Please confirm.
2. We note your response
to comment 2. We note that Richard Gelfond, the CODM,
received financial
information regarding IMAX China both in his capacity as CODM of
Natasha Fernandes
IMAX CORP
March 20, 2024
Page 2
IMAX Corporation as well as in his role as a director on the IMAX
China Board. Please
help us understand what financial information is provided to him under
each role,
including whether operating segment level or component unit level
financial information
is provided as well as the particular financial information provided,
such as gross margin.
Please also address what specific IMAX China financial information was
provided to the
Board prior to 2024 in an Appendix to Board Materials.
3. We note your response to comment 3. We note that Craig Dehmel manages
Film
Distribution, which currently represents a component unit and
previously represented an
operating segment. We also note that Bruce Markoe manages
Post-Production, which
currently represents a component unit and previously represented an
operating segment.
Your website appears to indicate that Craig Dehmel and Bruce Markoe
are also part of
senior management. Please advise. Your response indicates that they
are designed to
report to the Company s Chief Content Officer. It is not clear who
they are actually
reporting to, including if they report to your CODM.
4. We note your response to comment 6 and that a few of the component
units appear to be
the same as your previous operating segments prior to the change in Q1
of 2023.
Specifically you now have component units called Film Distribution and
Post-Production
and you previously had operating segments called Film Distribution and
Film Post-
Production. Please help us understand if there are other component
units which were also
formerly operating segments. This could include component units whose
underlying
operations are the same as former operating segments, but may now be
labelled
differently.
5. In addition to the formalized senior management team meetings which
you
indicated occur typically at least three times in your response to
comment 4 of your letter
dated January 29, 2024, please tell us whether there are other regular
meetings with the
CODM and segment managers in which financial information is reviewed.
If so, please
address what financial information the CODM reviews to prepare for
these meetings and
the financial information discussed in these meetings, including
whether any component
unit financial information is discussed. It would appear that the CODM
would at least
meet with segment managers on a quarterly basis.
Please contact Nudrat Salik at 202-551-3692 or Terence O'Brien at
202-551-3355 if you
have questions regarding comments on the financial statements and related
matters.
Sincerely,
FirstName LastNameNatasha Fernandes
Division of
Corporation Finance
Comapany NameIMAX CORP
Office of
Industrial Applications and
March 20, 2024 Page 2 Services
FirstName LastName