RUM Group Inc.
For the period ended Dec 31, 2024. Filed Mar 25, 2025.
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FY2024 · Filed Mar 25, 2025
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19. Related Party Transactions
| 19. | Related Party Transactions |
The Company’s related parties include directors, shareholders and key management.
Compensation to related parties totaled $14,063,586 and $13,008,425 for the years ended December 31, 2024 and 2023, respectively. Of the total compensation, the Company paid share-based compensation to key management amounting to $9,837,559 and $8,046,363 for the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, accounts receivable from key management personnel were $727,903 and $nil, respectively.
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 Mr. Pavlovski and Mr. Milnes, each of whom holds a significant number of Rumble shares. The Company incurred related party expenses for these services of $3,382,267 and $2,849,600 during the year ended December 31, 2024 and 2023, respectively. Accounts payable and accrued liabilities for personnel services was $249,545 and $276,018 as of December 31, 2024 and 2023, respectively.
As discussed in Note 11, 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.
There were no other related party transactions during these periods.
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