This image is an artful transition between two shots. The first is looking through a photographic negative, the second is Walter sitting on the concrete bench, engrossed in his work, looking at the contact sheet.
Taken in context of the film, it's an amazing transition. While yes, it's just a simple dissolve, the fact that the camera managed to be at the perfect height to line up with the negative, that the KODAK 400TX fits perfectly within the spacing of the tiles, that the spacing of all of the elements match the negative so exactly, it had to have been a very deliberate setup that took significant calculations to get right, and I love when deliberate effort gets put into a film.
Our subject, Walter, takes up a very small percentage of the frame, and all of the negative space around him has become a film negative. Constrained to the layout of a 35mm roll of film, the overall image consists of strong horizontal and vertical lines that carve the image into a top, middle, and bottom. While visually interesting, movies don't have time for artistic breaks and we need to find our subject quickly.
The brightness of the waterfall at the top of the screen contrasts with the dark tiles to visually balance the top section and shift the weight of the overall image lower, closer towards Walter. The waterfall, consisting of a large amount of vertical lines, also quickly moves us to into the middle area. where the out-of-frame buildings block the sky except for two areas. These natural highlighted areas pull our eyes from the middle area down to the bottom. The left-most highlight, guides us to the 26A text which, through the natural motion of reading, starts moving our eyes right where they're pulled to the larger 27 and finally to Walter. The right-most highlight guides us directly to Walter.
The lighting is very flat and neutral, to help simulate the flatness of a filmstrip. And while there are no real shadows to speak of, the natural brightness of the sky is blocked by out-of-frame buildings to help the composition direct our eyes to Walter's position.
Kodak 400TX is a black and white film. Since this shot is pretending to be a strip of that type of film, it is expected that this would also be in black and white. And aside from the faint skin tone of Walter's arm, it is a monochromatic image. The cool blue temp counters the warmth of his skin and keeps the frame looking similar to the rest of the film.
Throughout the film, there are several shots that show Walter being separate from everyone. This is yet another example, except instead of being apart from a single group, he's so engrossed into his work that he's separating from the real world, literally part of a roll of film.