Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 87

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 87
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 realize, or in certain circumstances are deemed to realize, as a result of (i) increases in the tax basis of OpCo’s assets resulting from exchanges of Paired Units (defined in Note 11) for shares of Class A Common Stock or cash, as applicable, and (ii) certain other tax benefits related to us making payments under the TRA. The TRA liability is an estimate and actual amounts payable under the TRA could differ from this estimate. There were no exchanges of Paired Units for shares of Class A Common Stock for the three months ended March 31,2025. As of March 31, 2025, the Company has recorded a TRA liability of $25.6 million, and an associated deferred tax asset, net of amortization, of $26.9 million, in connection with the exchange of Paired Units and the projected obligations under the TRA.Effective April 2, 2025, all Paired Units were exchanged for Class A Shares. See Note 1 of the Notes included herein for additional information regarding the TRA following the Class C Exchange.

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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 related party received services from the Company:RevenueDue From Related PartyThree Months Ended March 31,March 31,2025December 31,2024Services20252024Marketing and advertising services (1)$— $110 $— $— Marketing and website development services (2)763 755 310 601 Polling services (3)— 460 — 192 Polling and public relation services (4)106 104 100 55 Marketing and advertising services (5)623 — — — Total$1,492 $1,429 $410 $848 (1) Brands’ partners and executives either hold a key leadership position in or are on the board of directors of the client.(2) A member of the Company’s Board is the managing director of a client.(3) A family member of the Company’s Chief Executive Officer holds a key leadership position in the client.(4) A family member of the Company’s President holds a key leadership position in the client.(5) Founder of the client has significant interest in the Company. 

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