Related Party Transactions

9 Months Ended

Sep. 30, 2022

15. Related Party Transactions

In the ordinary course of business, the Company enters into transactions with related parties, including its affiliates. The transactions may range in the nature and value of services underlying the arrangements. The following table presents significant related party transactions where a third party receives services from the Company:


	Total Transaction Value	Revenues								Due From Related Party
		Three Months Ended September 30,				Nine Months Ended September 30,				September 30, 2022		December 31, 2021
Services		2022		2021		2022		2021
Technological (1)	Ongoing arrangement (7)	$	10	$	15	$	29	$	45	$	36	$	137
Marketing Services (2)	Ongoing arrangement (7)	905		63		1,388		155		1,178		88
Polling Services (3)	$1,271	201		224		779		343		140		70
Marketing and Website Development Services (4)	$5,689	589		441		3,512		441		333		502
Marketing and Advertising Services (5)	Ongoing arrangement (7)	866		203		2,038		272		1,800		4,577
Marketing and Advertising Services (8)	Ongoing arrangement (7)	2,064		—		3,315		—		2,041		—
Polling Services (6)	$3,800	1,295		—		2,248		—		—		—

(1) Client was founded by the Company’s Chief Executive Officer.

(2) Family member of one of the Brands’ partners holds an executive leadership position in the client.

(3) Family members of certain of the Company’s executives hold key leadership positions in the client.

(4) Client has significant interest in the Company.

(5) Brands’ partners and executives either hold a key leadership position in or are on the board of directors of the client.

(6) Founder of the client has significant interest in the Company.

(7) This arrangement was entered into for an indefinite term and is invoiced as services are provided.

(8) A member of the Company’s board of directors holds an executive leadership position in the client.

The following table presents significant related party transactions in which the Company receives services from a third party:


	Total Transaction Value	Expenses								Due to Related Party
		Three Months Ended September 30,				Nine Months Ended September 30,				September 30, 2022		December 31, 2021
Services		2022		2021		2022		2021
Data Management Services (1)	Ongoing arrangement (4)	$	890	$	422	$	1,705	$	1,178	$	1,249	$	623
Sales and Management Services (2)	Ongoing arrangement (4)	703		88		1,442		266		1,685		442
Marketing Services (3)	$40	—		—		40		—		40		—

(1) Family member of one of the Brand’s partners holds an executive leadership position in the third party.

(2) Chief Executive Officer of the Brand is a shareholder of the affiliate providing the services.

(3 ) A family member of the Company’s President holds a key leadership position in the client.

(4) This arrangement was entered into for an indefinite term and is invoiced as services are provided.

In 2019, a Brand of the Company, entered into a loan agreement with a third party who holds a minority interest in the Brand. The loan receivable of $4,029 and $3,784 due from the third party is included within Other current assets in the Company’s Unaudited Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021, respectively. The Company recognized $80 and $234 for the three and nine months ended September 30, 2022, respectively, and $76 and $227 for the three and nine months ended September 30, 2021, respectively, of interest income within interest expense, net on its Unaudited Condensed Consolidated Statements of Operations.

During the three and nine months ended September 30, 2021, Stagwell Media made additional non-cash investments in the Company of $300 and $12,400, respectively. Additionally, during the three and nine months ended September 30, 2021, the Company made cash investments of $1,600. In March 2021, the Company made a non-cash distribution to Stagwell Media of $13,000. Additionally, the Company made cash distributions to Stagwell Media of $165,700 and $191,900 for the three and nine months ended September 30, 2021, respectively.