Related Party Transactions |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2025 | |||
| Related Party Transactions [Abstract] | |||
| Related Party Transactions |
The Company’s related parties include directors, shareholders and key management.
Compensation to related parties totaled $5,172,746 and $3,785,461 for the three months ended June 30, 2025 and 2024, respectively. Of the total compensation, the Company paid share-based compensation to key management amounting to $2,798,487 and $2,650,673 for the three months ended June 30, 2025 and 2024, respectively. Compensation to related parties totaled $13,593,810 and $7,130,608 for the six months ended June 30, 2025 and 2024, respectively. Of the total compensation, the Company paid share-based compensation to key management amounting to $8,970,789 and $4,852,905 for the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025 and December 31, 2024, accounts receivable from key management personnel were $995,550 and $727,903, respectively.
The Company has a customer relationship with Tether Operations S.A. de C.V., an affiliate of a significant shareholder of the Company. The Company recognized revenue of $987,500 for the three and six months ended June 30, 2025. These transactions were conducted in the ordinary course of business and on terms consistent with those offered to unaffiliated customers.
The Company has a vendor relationship with Cosmic Inc. and Kosmik Development Skopje doo (“Cosmic”) to provide content moderation and software development services. Cosmic is controlled by Chris Pavlovski, our Chairman and Chief Executive Officer, and Ryan Milnes, a member of our board of directors, each of whom holds a significant number of Rumble shares. The Company incurred related party expenses for these services of $825,504 and $884,131 during the three months ended June 30, 2025 and 2024, respectively. The Company incurred related party expenses for these services of $1,562,034 and $1,663,609 during the six months ended June 30, 2025 and 2024, respectively. Accounts payable and accrued liabilities for personnel services were $280,242 and $249,545 as of June 30, 2025 and December 31, 2024, respectively.
As discussed in Note 9, on December 20, 2024, the Company entered into support agreements with related parties to ensure that 70,000,000 shares of Class A Common Stock would be tendered and available for purchase if there were insufficient shares tendered by the public to satisfy the tender requirements in the Tether Agreement. On February 7, 2025, the Company repurchased 69,938,983 shares of Class A Common Stock from related parties with whom it had executed support agreements for $7.50 per share.
There were no other related party transactions during these periods. |