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Related Party Transactions | 9 Months Ended
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Sep. 30, 2021
Related Party Transactions [Abstract] |
Related Party Transactions | Related Party Transactions In July 2021, the Company’s board approved and made a discretionary, one-time, lifetime-award, non-employee bonus payment of $10.0 million to the Company’s founder, who is a Class B common stockholder, which was recorded within related party expense in the condensed consolidated statement of operations. We have certain revenue share agreements with related parties. Accordingly, we recognized revenue from related parties of $245 and $1,041 for the three months ended September 30, 2021 and 2020, and $864 and $2,479 for the nine months ended September 30, 2021 and 2020, respectively. We also incurred revenue share expenses paid to related parties of $1,337 and $1,255 which were capitalized as contract origination costs for the three months ended September 30, 2021 and 2020, and $8,921 and $2,884 which were capitalized as contract origination costs for the nine months ended September 30, 2021 and 2020, respectively. Additionally, a related party provided call center support and other services to the Company for which we recorded an expense within cost of revenue of $347 and $98 for the three months ended September 30, 2021 and 2020, and $960 and $941 for the nine months ended September 30, 2021, respectively. A related party also provided certain corporate functions to MarketWise and the costs of these services are charged to MarketWise and recorded within related party expense in the accompanying consolidated statement of operations. We held balances of $1,338 and $3,288 as of September 30, 2021 and December 31, 2020 of related party payables related to these services. The balances with our related party are presented net and are included in related party payables, net in the consolidated balance sheet. We earned fees and provided certain accounting and marketing services to companies owned by certain of MarketWise’s Class B unitholders. As a result, we recognized $93 and $86 in other income, net for the three months ended September 30, 2021 and 2020, and $235 and $280 for the nine months ended September 30, 2021 and 2020, respectively. Related party receivables related to these services were $582 and $689 as of September 30, 2021 and December 31, 2020, respectively. We lease offices from related parties. Lease payments made to related parties were $383 and $376 for the three months ended September 30, 2021 and 2020, and $1,150 and $1,128 for the nine months ended September 30, 2021 and 2020, respectively, and rent expense of $556 and $556 were recognized in general and administrative expenses for the three months ended September 30, 2021 and 2020, and $1,668 and $1,668 for the nine months ended September 30, 2021 and 2020, related to leases with related parties. At September 30, 2021 and December 31, 2020, ROU assets of $10,738 and $11,957 and lease liabilities of $7,789 and $8,490 are associated with leases with related parties. We incurred costs related to lead generation marketing from a related party vendor which was partially owned by a shareholder through November 2020. We purchased lead generation marketing of $4,292 and $12,336 for the three and nine months ended September 30, 2020, respectively, which was recorded in sales and marketing expenses. In August 2019 we provided an additional loan to a Class B unitholder and recognized a related party note receivable from the unitholder of $3,000. We recognized $25 in interest income for the nine months ended September 30, 2020. This loan was repaid in June 2020. In April 2020 we provided a loan to a Class A unitholder and recognized a related party note receivable from the unitholder of $1,155 as of September 30, 2021. We recognized $2 and $2 in interest income for the three months ended September 30, 2021 and 2020, and $7 and $3 for the nine months ended September 30, 2021 and 2020, respectively. The interest rate on the loan is variable and was 0.86% as of September 30, 2021. The loan is due in April 2025, but is required to be repaid within 30 days after we complete an initial public offering, including expiration of any related lockup conditions, which is expected to be met in 2022.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864 + Details
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