IMAX Corp's liquidation posture as of March 31, 2026 shows a modestly positive recovery to equity under standard haircut assumptions, though the margin is thin and concentrated in a handful of liquid asset categories. Total reported assets are $893.2M against total liabilities of $464.8M, yielding book equity of $427.6M (including $92.2M NCI). Applying liquidation haircuts: cash of $146.0M recovers at par; AR of $108.5M (net) recovers ~$97-103M at 90-95%; financing receivables (notes receivable gross $100.2M net of $10.1M allowance, so net $90.1M) face meaningful credit risk given $24.6M in non-accrual status — recovery here is uncertain, possibly 70-80% on the performing portion; inventory of $35.8M recovers ~$21.5M at 60%; PP&E of $240.9M recovers $120-169M at 50-70%; goodwill of $45.8M recovers zero; other intangibles of $30.9M recover zero; contract assets of $90.6M (representing amounts owed under JRSA and sales-type arrangements) are largely illiquid and unrecoverable in wind-down — zero assumed. Film costs of $16.6M are distressed-sale assets, recovery near zero. Total recoverable assets approximate $540-600M on conservative-to-mid assumptions. Liabilities at face: $464.8M total reported liabilities includes $244.1M convertible notes, $46.7M drawn credit facility, $88.1M accrued liabilities, $56.1M deferred revenue (extinguishes on wind-down but represents cash already received — no additional outflow), $17.2M accounts payable, $12.5M deferred tax liability on unremitted PRC earnings. On a liquidation basis, deferred revenue of $56.1M represents a performance obligation that extinguishes but also means cash already collected — no additional cash outflow. However, the convertible notes ($244.1M) and credit facility ($46.7M) are senior claims that must be settled at face. Net recovery to common equity (post NCI of $92.2M) is thin but likely positive in a base case, primarily supported by the $146M cash position and the substantial PP&E base (IMAX systems on lease). Key risks to recovery: (1) $101M of cash is trapped in PRC and subject to repatriation controls and a $12.5M deferred withholding tax liability; (2) $24.6M non-accrual financing receivables represent uncollectible balances in a going-concern context, worse in wind-down; (3) contract assets of $90.6M and deferred JRSA revenue streams carry zero liquidation value; (4) intangibles and goodwill ($76.7M combined) are fully impaired under this lens. Compared to the prior 10-K period (December 31, 2025), cash declined modestly from $151.2M to $146.0M, the credit facility drew up from $37.0M to $49.0M (net drawn $46.7M per XBRL), and the convertible note structure ($244.1M) was established in Q4 2025 via the November 2025 indenture — this is the most significant change to the liability stack versus the prior 10-K filing, adding a substantial fixed senior obligation. The filing does not separately XBRL-tag operating lease liabilities as a distinct balance sheet line in the TAG_CONTEXT provided, though ASC 842 ROU liabilities are likely embedded within the broader liability figure; this absence from XBRL tagging limits precision.
▼ Community Notes